India’s agricultural retail system is currently experiencing a significant change. Rural fertilizer retail outlets in India used to function as basic agri-input distribution centers which offered no professional farming guidance to customers. The Government of India established PM Kisan Samriddhi Kendras (PMKSKs) to create new channels through which farmers can obtain agricultural inputs and modern farming technologies and essential services.
The PM Kisan Samriddhi Kendras function as complete rural service centers which provide more than just fertilizer distribution services. The agricultural sector of India provides agri-startups and MSMEs and rural entrepreneurs with their most extensive organized retailing opportunities through PMKSKs.
The government-operated network of over 2.14 lakh active PMKSKs throughout India creates new pathways for farmers to access agricultural support services because it provides them with extensive coverage and dependable service and direct service connections.
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Market Size & Key Stats-PM Kisan Samridhi Kendras
Out of 2.14 lakh PMKSKs made operational, 1,000 Lakh bottles of Nano Urea and 181 Lakh bottles of Nano DAP fertilizers are registered and 600.79 LMT is the estimated fertilizer usage in India for 2023-2024. PMKSKs now offer soil testing, consultancy, and farm education services.
The scale that is now available to agri-startups is unprecedented as they now have integrated access to the largest rural distribution network to target millions of farmers.
Why are PMKSKs Special to Entrepreneurs
Going to the countryside PMKSK has a foothold in every district. Trust attributed to the Government branding of PMKK. The centers provide value chain services like fertilizer, seeds, soil testing, and IFMS-integrated farmer training.
36% of the Indian Population are engaged in Agriculture. This has enabled PMKSK to become rural Hyper Markets of Agri-Tech-Finance all in one.
On The Spot High-Growth New Business Opportunities via PMKS Facilities
Farming Input and Fertilizer Franchise
Entrepreneurs at PMKSK will have the rights to sell and distribute well known brands of Nano Fertilizers, Organic Mixes, Micronutrients, and bio-inputs. The growing franchise of environmentally sound products will find easy outlet at PMKSK.
Example: In one of the districts, a company in partnership with nano fertilizer producing companies, conducts low-cost field demonstrations to stimulate interest and broader use of the fertilizers.
Read More: PM Kisan Samriddhi Kendras: A Retail Opportunity for Agri-Start-Ups in India
Seed and Crop Protection Bundling
Startups will be able to provide integrated “crop packages” with bundling of crop protection products, fertilizers, and seeds.
Example: Seed marketing kits, especially designed for a region, with a complementary fertilizer, tailored to the crop.
Agri-tech: Soil Testing and Advice
PMKSKs have the ability to conduct soil testing. Startups will be able to fill the gaps with advisory platforms, soil testing kits, and mobile applications.
Illustration: Soil testing devices are IoT-enabled and stationed at PMKSKs. These devices instantly provide soil testing results and can recommend services for an additional charge.
Drone-based Fertilizer Spraying-PM Kisan Samriddhi Kendras
Namo Drone Didi is a program that educates 15,000 women on the use of drones for agricultural spraying. Startups can offer services to farmers, train drone operators, and provide drones with maintenance and repair services.
Illustration: A PMKSK (PM Kisan Samriddhi Kendras) that enables farmers to schedule drone services will offer a “Spray-as-a-Service” product.
Import-Export Input Support-PM Kisan Samriddhi Kendras
India recently brought in 176.95 LMT of fertilizers for the 2023-24 market year. Startups have the opportunity to either consolidate premium imported micronutrients or export quality inputs and distribute through PMKSKs (PM Kisan Samriddhi Kendras).
Example: Import micronutrients and pair with soil test recommendations.
Statistical Insights From The Industry
Imports for MOP, estimated at 28.69 LMT for 2023-24, shows imports and the absence of local substitutes. For DAP, produced 42.97 LMT and imported 55.67 LMT. There lies for local substitutes to be filled. There is 1,500/MT to organic fertilizers from GOBARdhan.
Startup Edge: The ability to innovate local substitutes and premium inputs capsulated in high efficiency fertilizers. The last mile for PMKSK is complete.
Read More: Top 25 Agro Business Ideas
MSME Success and Business Model
IFFCO’s innovative scaling of Nano Urea and farmer education. Urea Gold is a product of RCF, and is a good example of government intervention and aggressive market capture. FAGMIL’s planned SSP plant in Sri Lanka depicts the global opportunity.
Startup Takeaways
- Leverage government supported retail networks
- Demonstration and product combination
- New market and global partnerships
How NPCS Can Help You
The NPCS Team prepares a Market Survey and Techno Economic Feasibility Report for each new project. The Report outlines the various stages involved in the production of a good, the market demand, the necessary raw materials for each recipe in the process, the machinery and the financial gain from the operation.
NPCS helps new entrepreneurs define PMKSK focused on designing projects to identify high demand products and create viable and demand sustainable and profitable business models.
Helpful Sites for Government Services
- Department of Fertilizers – fertil.nic.in
- PMKSK Information Portal – Ministry of Agriculture
- GOBARdhan Portal – gobardhan.co.in
- SATAT – mopng.gov.in
These sites provide documents, policies, and tenders related to PMKSK.
Read More: Small Scale Food Processing Projects: Best Agro-Based Business Ideas Manufacturing Plant
Business Models for Novice Entrepreneurs
- Model 1: Agri Input Franchise + Advisory- Retail all crop packages, then identify and advise the appropriate seeds, fertilizers, and soil tests to use.
- Model 2: Drone Service Network- Partner with PMKSKs to provide drone spraying and upkeep.
- Model 3: Fintech + Inputs- Provide a package for credit, insurance, and necessary inputs.
- Model 4: Export Aggregation Node- Utilize PMKSKs to consolidate supply for costly, frequently needed imported inputs.
- Model 5: Training & Farmer Education- Conduct monetized subscription workshops.
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Action Steps for Aspiring Founders of Startups-PM Kisan Samriddhi Kendras
Choose your niche. Design an all-inclusive product-service solution. Work with PMKSKs to reach farmers. Apply for Government funding. NPCS helps with the DPR. Create a management app for stock and bookings. Start with a pilot in one region then roll out nationally.
The PM Kisan Samriddhi Kendras are geared to support initiatives to transform the agriculture inputs supply system in rural India and are positioned across 2.14 Lakh locations across the country.
Find the Best Idea for Yourself With our Startup Selector Tool
If your startup includes technological aspects in Fintech, drones, advisory, seeds, fertilizers, and crop protection, PMKSKs offers comprehensive rural value chains.
With smart initiatives, scalable and profitable Agri Input ventures are possible and will transform India agriculture with the support of NPCS and sound Agri Planning.
FAQS
1. What are PM Kisan Samriddhi Kendras?
A. They are modern agri-input outlets that transform traditional fertilizer shops, offering a variety of services other than fertilizers and seeds such as soil testing and other advisory services.
2. How many PMKSKS are there in India as of now?
A. There are 2.14 Lakh PMKSKs, one in each district of India.
3. How can start ups leverage PMKSK?
A. With PMKSK counters, new venture ideas that support crop advisory, drones, finance, as well as fertilizers and seeds are in place.
4. What are the top selling items in PMKSKs?
A. The top items are crop protection products, soil testing, hybrid seeds and micronutrient-rich fertilizers.
5. In what ways does NPCS help PMKSK entrepreneurs?
A. Assisting PMKSK entrepreneurs involves creating Market DRC, financial partnerships, resource mix plans, and profitable models which NPCS extends to entrepreneurs to assist in establishing PMKSK centered businesses.
