Impact of pandemic on Agribusiness

This is a biggest shut-down globally due to Covid-19. Every nook and Corner is Lockdown, business shutdown except the essentials are working as hospital for treatment of the patient, daily essentials like food and milk administration and  government organization which is dealing with public management to save their  lives from Covid 19 infection. In these circumstances we all have realized that agriculture sector is most important for our survival rest is optional or secondary. For survival of the other creature like animals and birds along with human which was also challenge.

 In this lockdown all living beings affected due to non availability of the food. It’s biggest challenge to feed the animals and birds. In same way kids were also locked down in their home with parents whereas again milk-man take the pain of life and reaching to the door step to protect health of kids.

During this period people realize that only food and medicine is primary requirement for survival, even due to high demands farmer and agriculture based business were affected badly since crops were ready for  harvesting but supply chain were restricted in locked down phase. In India agriculture is state subject and its unorganized sectors thus lack of coordination among states and inefficiency in policy implementation at government level imposed huge losses special in perishable commodities like horticulture, poultry, fishery and dairy sector.

After first phase of lockdown food supply chain was managed by train and road transport across country where food grains like wheat rice pulses supply was managed through PDS system but and perishable vegetable items was basic need.

New options created due to pandemic:

·        Farmer should be very much focus on post pandemic market dynamics.

·        Need to connect with e-com and latest technology

·        Think about local market due to any crisis they can generate some funds locally for the survival

·         Connect with remote market, to get competitive price.

·        Reduce the interference of the middle man i.e as tomato cost in village area was Rs 2 whereas in metro and other city same product cost was above 60 to Rs 70 which reduce to consumption and affect the farmer’s crop and profit whereas middle man without much effort they made huge profit.

·        Need to arrange local transport facility so that reduce dependency on external resources.

·        Diversify the farming depend on storage and life span of crops & market i.e. flower, fruits, wheat etc.

·        Connection with government authority to get the approval and other formalities so that administration supports the farmer otherwise delay and ignorance of authority will create the losses to the farmer.

Challenges after pandemic:

      As pandemic is still going on but due to economic losses government started to review the condition started to work on damage control by making big efforts. For the farmers biggest challenge is cash flow and fulfills the liabilities and returns the bank and other loans.

As in all business Cash is king. So, agro based business also require cash to restart the work for the future.

·        So how farmers can inject the Cash and how much depending upon the market demand, due to pandemic some of crops will be in high demand whereas some will be medium and low, so farmer need to identify the need based crops.

·        Due to pandemic a lot of global demand and import-export policy change so need to cope up with new regulation and law.

·        To control and improve the credit rating with banks need to Liaoning with banks and government.

·        Farmer need to keep the cash for the survival for the minimum 6 month to one year, so whereas possible go for short term credit for the buying seed, fertilizer and equipment.

·        Last but not least produce only what can be consumed or store for the long term.

This is unexpected and unpredicted calamity which cannot be predicted, and cannot be project for the damage. Only options remain with us to move on with current scenario with maximum precaution reduce the damage control. Government requires to support the farmer so that another big global challenge hunger can be avoided. Farmers need to be very much alert to face any challenges in future.