Summary: Agriculture employs nearly half of India’s workforce yet contributes only 17.5% of the GDP, reflecting a declining share in the economy compared to the 1950s. Despite being a global leader in the production of crops, milk, and fruits, the economic benefits for stakeholders in the agriculture sector remain limited. To enhance purchasing power and living standards, solutions must address price modulation, supplier segmentation, and majority-focused strategies. Open-market competition often pressures producers to lower prices, impacting profits. By organizing suppliers into groups based on shared needs and market influence, the majority group can set price points that align with broader economic benefits. This approach could create a ripple effect, improving economic outcomes for all stakeholders. Special consideration should be given to niche segments with unique challenges. Addressing these systemic issues is critical to elevating agriculture-related businesses and their impact on the overall economic cycle.
Case Problem
Way to Elevate the Agriculture Related Businesses and Operations, Thus Stakeholder’s Purchasing Power and Standard of Living thereon.
Opinion
Before start reading this article, Let us have a look a few Data Points from the website of prsindia.org
- The agriculture sector employs nearly half of the workforce in the country. However, it contributes to 17.5% of the GDP (at current prices in 2015-16).
- Over the past few decades, the manufacturing and services sectors have increasingly contributed to the growth of the economy, while the agriculture sector’s contribution has decreased from more than 50% of GDP in the 1950s to 15.4% in 2015-16 (at constant prices).
India’s production of food grains has been increasing every year, and India is among the top producers of several crops such as wheat, rice, pulses, sugarcane and cotton. It is the highest producer of milk and second highest producer of fruits and vegetables.
Look, when we are talking about the farm grown goods, what we really meant is the Bottom Last segment of economic cycle. And the reason to indicate that specific segment is to bring this to notice the Trickle Down Effects of Inflation and Money-Multiplier theory in subsequent stages in the whole economic cycle.
The whole solution lies in the fact that if segregation of suppliers happens, the increase in a minute-cost in the MRP of goods would have negative effects for sure due to Open-Market Competition. Others probably would have degraded their costs or a Less-Marginalized priced goods offering to the open-market to induce the buyers.
Therefore, the solution lies in the fact that the Committee needs to be Unite first with Like-Like and Dislike-Dislike Segregates in different baskets to understand their individual group needs. The group which has the Majority or have the monopolistic outcome in the market should be followed and Modulate-Up or Down the prices respectively.
While the above condition vis-à-vis solution is not a mandatory one to be a Success. Vice-Versa can be operative too but the front of ‘Majority’ should be in focus and would be a deciding factor for Success. But the question arises on how to simulate the Minority group to a Majority one. The answer is simple to alter the requirements and needs to counter the opposition.
The basic and mandatory condition to impact the whole economic cycle is to adjoin with the Majority
group and thereon the Price-Points.
Exception would be there if targeted segment is very Niche and the services are unable to counter thereof and will be discussed in some other slide for sure.
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Disclaimer: The above stated Case Problem and Opinion are subject to personal views and approach from a Layman’s point of view and may not stands pragmatic in real world scenario and thus may differ from person to person in their way of solving it. Enjoy the joy of writing and a stimuli of brain to it.
Deepak Sharma | BSc. Physical Sciences (DU), MA Economics (IGNOU), PGC Strategy (IIMB)
Author Bio
