Introduction:

“Being a good farmer is difficult in itself, being a good farmer in but it is approached in an incorrect manner, keeping logic aside,

adverse conditions is more so.” Going by this saying, things don't and endorsing vote-bank politics and slogan driven policies. We

look good for the farmers in Vidharbha at present. It seems that all have landed ourselves into a scenario where crop insurance

the important factors that go into sustained and profitable farming compensations for failed crops are so low they seem like pennies in

have conspired against them. How else could one explain the wrath a beggar-bowl while the incentives to commit suicide go into six

of nature, low land fertility, unavailability of affordable capital, digits.

blood sucking leeches re-incarnated as money lenders,

The solution lies in thinking at the micro rather than macro level.
monopolistic traders and non-responsive politicians all acting in
Given the percolation efficiency of our government, bureaucracy
tandem to reduce agriculture from one of the noblest of trades to a
and co-operatives, hardly any of the fortune released at the top
mere mockery. The hands that feed the society are being
reaches the bottom of the pyramid. If the solution has to be
compelled to tie life ending knots. The farmer who once held his
effective, it has to be at the level of the problem itself — at the
head high on being called 'Bali-Raja' is now ashamed of his own
bottom of the pyramid. The long term solution can't be loan
existence. How shameful is the fact that we as a society allowed
waivers or subsidies hiding behind the walls of the power corridors.
such a fall to happen? How shameful is the fact that we boast about
It has to walk to the fields every day, hand in hand with the farmer,
national GDP growing at 9% while the economic urban rural divide
comforting him with its presence, giving him his confidence back,
is widening into an unsurpassable chasm?
letting him know that it is the EFFORT that counts and it will be

The problem of dwindling economic sustainability of agricultural rewarded no matter what. The farmer has to be treated with

practices of the marginal and landless farmers, as perceived by my respect. Not as a liability, but as an asset handled improperly for so

naive mind, is not that it is too complicated a problem to be solved long. This is where ‘Asmita’ comes to the picture.
 pesticides, weedicides, etc. for the soybean crop without paying a
Asmita:
single paisa in cash.
'Asmita' strives to give the farmers a sense of IDENTITY through for-profit
• The members get the receipts for all the purchases they made.
and sustainable business practices. It is based on the principle of
The black marketing of fertilizers so widely prevalent in the
symbiosis wherein the farmers and the business will benefit from each
market is curbed by this closed loop transaction cycle.
other's growth and prosperity and grow together. It will start as a pilot
• The members are also provided with ‘Soil Testing’ (done at PDKV,
project in agro-trading with soybean as the target crop and a capital
Akola) and SMS based market and Agro Information services
investment of `600,000 covering 55acres of farmland and a group of 23
(Reuters Market Light) free of cost.
marginal farmers (1-4 acres of land/farmer) from the tribal villages Yehla
• After the harvest, the initial expenses of the farmers are
and Chilwadi (Taluka: Pusad, Dist: Yavatmal). The fundamental business
deducted from the payment of their produce (0% interest) and
model of 'Asmita' is as follows:
they are paid the rest in cash. ‘Asmita’ bears the transportation

• The members are marginal farmers who are usually trapped in cost and Agent commission (Adat), thus resulting in additional

the credit-lending cycle of exorbitant interest rates (as high as savings for the farmers.

72% per year) • ‘Asmita’ on the other hand stocks this produce and forward

• The members are made to sign an agreement wherein they agree trades it to book its profits. It also gets its share of profit in the

to sell the complete soybean harvest to ‘Asmita’ at the market fertilizer sales.

rate of the day of selling. They are given a timeframe up till 31st • Because of such a holistic approach to the agricultural economic

Dec to take benefit of the market dynamics and sell the produce cycle, the farmers are saved from the painstaking and exploitative

at a high rate. process of raising the capital, saved from the wrath of fertilizer

• The members are provided with ‘Asmita Card’, their key to black marketing, exploitative and forced buying of produce by the

empowerment. Using this card at a pre-designated Supplier lenders while enjoying the benefits of a scientific and rational

(Jagdamba Fertilizers, Pusad), the members get seeds, fertilizers, approach to farming. The ‘Asmita Effect’ can be better
understood by the following charts.
 The pilot project helps us at ‘Asmita’ to build a farmers’ database
Symbiotic Model: •
to understand their problems better way, thus enable us to do
The ‘Asmita’ business model is symbiotic in nature resulting in benefits
more meaningful work in future.
for both us as well as the farmers.
• The ‘Asmita’ business model once fine-tuned and tested for
loopholes for soybean can be replicated on a larger scale for any
Advantages to farmers:
other crop.
• No borrowings, so the entry door to the vicious cycle of interest
amounts building up is closed.
• They get access to soil testing, technical knowledge and market Why Make Profit?
updates at no additional cost helping them to improve the crop
‘Asmita’, although working for the benefit of the farmers, is not an NGO.
yield and get more out of their limited land holdings.
It is a profit making business and profit making is one of its goals. The
• The profits margins get improved owing to reduction in costs, 0%
choice of a profit making model over a non-profit on is based on the
interest and increase in production.
following considerations:
• These profits if sustained over a few years would help them to
break the shackles of poverty and improve their overall standard • A non-profit model has to depend on constant flow of funds from
of living. external sources for its sustenance.
• For-profit models are more motivated and efficient.
Advantages to Asmita:
• For-profit models have a better chance and rate of expansion.

• Buying fertilizer, etc. at bulk rates and charging the farmers at • The promoters don’t have to depend on any other source for

MRP leaves a margin for profit making. their monetary needs and thus can focus their energies better.

• A profit is made based on difference in rates of soybean at the

time of procurement and selling.
 Contact Us
Anukool Chavhan
Gujri Chowk, Pusad
anukoolchavhan.asmita@gmail.com
+919765889999

Girish Dixit
Gandhi Chowk, Pusad
girishdixit.asmita@gmail.com
+919730657187

Gagan Ade
Shrirampur, Pusad
gaganade.asmita@gmail.com
+919145513596