Prospects of agripreneurship in northeast India through value addition of lotus (Nelumbo nucifera): A case study

Introduction

Entrepreneurship plays a pivotal role in the industrial growth and overall development of the nation, serving as the foundation for maximizing performance across various sectors. India's economy has a significant reliance on agriculture, with around 67% of the population residing in rural areas deriving their income from agricultural and related activities (Khan, 2021) [4] . In recent times, the agricultural landscape has expanded into a comprehensive ecosystem, encompassing various business activities related to farming, from production to consumption. The dynamics of economic activity are evolving in response to changes in social perspectives and consumer demands. The agriculture and agribusiness sector, operating at the grassroots level, holds the potential to bring about substantial socioeconomic transformation across the nation, impacting the lives of numerous individuals (Ram et al. 2012) [6] . However, a significant amount of surplus produced goes to waste due to limited initiatives in processing, value addition and marketing of processed products. Therefore, the current situation necessitates organized entrepreneurs who can address both economic and social issues (Ram et al. 2012) [6] . The entrepreneurial spirit is crucial for the growth and success of the country and also plays a vital role in achieving economic independence. It also encompasses enthusiasm, persistence and the ability to identify opportunities for an enterprise. A nation's capacity to generate a continuous stream of business opportunities relies on the engagement of its people in entrepreneurial activities, making entrepreneurs the driving force behind national growth. Successful entrepreneurship is not necessarily contingent on a strong business and financial background; instead, well-structured training can cultivate outstanding entrepreneurs. In today's world of growing population, employment opportunities are limited. According to Dollinger (2003) [2] , entrepreneurship within the agricultural context involves establishing innovative economic entities with the aim of achieving growth or profit amidst the challenges of risk and uncertainty in agriculture. The process of employing entrepreneurial approaches in agriculture and related sectors is known as Agripreneurship, involving the implementation of innovative methods to enhance productivity and financial gains. Agripreneurship transforms agricultural endeavors into entrepreneurial initiatives, contributing to rural economic development by introducing novel ideas in agriculture. An agripreneur, often an innovator, plays a pivotal role in driving improvements in the rural economy by taking risks, employing innovation, developing new processes and exploring new market opportunities. Agricultural businesses, once perceived as low-tech and dominated by small scale enterprises focused on traditional practices, have witnessed significant changes in the past decade. Economic, liberalization, reduced agricultural market protection and societal evolution have compelled agricultural businesses to adapt to market www.extensionjournal.com dynamics, changing consumer lifestyles, environmental regulations and evolving standards for product quality, supply chain management, food security and sustainability. The Northeast region of India, consisting of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim, is a reservoir of rich natural resources and a diverse blend of people and cultures. Endowed with abundant biodiversity, significant hydro energy potential, oil and gas reserves, coal deposits, limestone, forest resources, fruits, vegetables, flowers, herbs, aromatic plants, as well as rare and diverse flora and fauna, Northeast India has the potential to evolve into a thriving commercial hub. Therefore, the present study highlights the case study of potential untapped agricultural resources for entrepreneurship development in the NER of India through value addition of lotus.

History of Lotus yarn:

Lotus is regarded as a very spiritual plant and the lotus flower motif is a very popular textile design. Among numerous religions, Hinduism and Buddhism have a profound religious tie to the lotus plant (Aishwariya and Thamima, 2019) [1] . Lotus textiles are particularly popular in Thailand and Myanmar as a sumptuous fabric with a long manufacturing period and the appearance and feel of silk-linen blend. According to sources, the extraction of fibre from lotus stem have begun around 1910, when Daw Sa Oo (Madame Sparrows Egg) set out to make robes for the highly revered abbot of a nearby monastery out of the fibres of the local padonma-kya lotus plant, which grew wild in the lake's shallows. They experimented as a group with various filament extraction and preparation techniques, finally weaving a pair of robes to her taste. The gratified abbot had the weavers' name changed to Daw kya Oo (Madame Lotus Egg) in recognition of her religious accomplishment. Throughout their lifetimes, Daw Kya Oo and her companions continued to weave using lotus yarn for charitable rather than commercial motives, making one or two sets of robes each year for famous local abbots (Aishwariya and Thamima, 2019; Tomar and Yadav, 2019) [1,7] .

Materials and Methods

The study was carried out in M/s. Sanajing Sana Thambal located at Thanga Moirang, Bishnupur district at Manipur. Primary data regarding the cost incurred in the establishment of enterprise and the return generated from the production was collected from the proprietor of the enterprise. To determine the outcomes, the data collected were examined with the help of analytical tools i.e. cost and return analysis to derive the results.

Cost and return analysis

Analysis of production cost and returns

Table 4 outlines the production output and returns of "M/S Sanajing Sana Thambal Pvt. Ltd.". The extraction of yarn and crafting various artistic products such as lengyan (scarf), ties, and masks is done by the enterprise itself. The enterprise relies on its skilled craftspeople for the extraction of this natural fiber. It takes one to two months to extract enough lotus silk for a single scarf and the resulting product can be priced tenfold higher than regular silk. The delicate lotus silk threads need to be processed within 24 hours while still wet to prevent breakage, but once woven, they exhibit durability comparable to traditional silk. The enterprise's overall revenue amounted to Rs. 18,87,000, with the highest production and revenue stemming from water lily tea, driven by its strong demand for medicinal properties and natural antioxidants. The scarcity of lotus silk production each year contributes to its high cost, as the demand consistently outstrips the limited supply. Scarves crafted from lotus silk provide a luxurious feel similar to real silk, but due to the intricate and labor-intensive weaving process involved with lotus fibers, lotus silk stands as one of the most expensive fabrics globally. From the table, it can be concluded that the total cost incurred in labour cost and cost of raw material are higher than the other cost. It is so, because the enterprise is home-based small-scale industry, where majority of the machineries are manually operated and is labour intensive due to which it requires high labour. The procurement cost of raw material and packaging material is high because the raw materials are procured from the local markets due to which they purchase the raw material at market price. The analysis of returns generated by the enterprise focused on examining different categories of farm income, including gross income, farm business income and net income. Additionally, the benefit-cost ratio was calculated based on both variable costs and total costs. To determine the gross income of the enterprise, the total production of products was multiplied by the market selling price of those products. The details of returns from the products produced by the enterprise are presented in table 7. The enterprise generated a gross income of Rs. 18,87,000 and the benefit cost ratio based on variable cost and total cost resulted by 1.30 and 1.29 respectively.

Conclusion

Agripreneurship with the value addition of lotus results to be a viable and feasible business with the benefit-cost ratio on variable cost and total cost equaling to 1.30 and 1.29 respectively. Although the items derived from lotus fibers are opulent and costly, due to time-consuming processes and the requirement of high skills from extractors and weavers, nevertheless due to its distinctive and durable nature of lotus fabric, it has garnered attention from both national and international clothing brands. However, certain challenges persist, such as the necessity for enhanced processing facilities and increased technical support for value-added products. Through strategic and technological interventions, the potential for lotus silk and other value-added lotus products will not only enhance economic prospects but also establish a prominent presence on the global stage as a premium and unique transformative quality product.

References

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