{"id":8663,"date":"2026-06-16T18:53:07","date_gmt":"2026-06-16T13:23:07","guid":{"rendered":"https:\/\/www.entrepreneurindia.co\/blogs\/?p=8663"},"modified":"2026-06-16T18:53:07","modified_gmt":"2026-06-16T13:23:07","slug":"agri-tech-business-in-bihar","status":"publish","type":"post","link":"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/","title":{"rendered":"Bihar\u2019s Forgotten Startup Miracle: How a School Dropout Built a \u20b920 Cr Agri-Tech Company from a Village"},"content":{"rendered":"<p><em>Agri tech business in Bihar<\/em><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#The_Number_That_Changes_Everything\" >The Number That Changes Everything<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#The_Gap_Nobody_Is_Filling\" >The Gap Nobody Is Filling<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Get_Detailed_Insights_from_This_Book_Modern_Technology_of_Agro_Processing_Agricultural_Waste_Products\" >Get Detailed Insights from This Book: Modern Technology of Agro Processing &amp; Agricultural Waste Products<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#State-wise_Agri-Input_Market_Gap_Key_Opportunity_Districts\" >State-wise Agri-Input Market Gap &amp; Key Opportunity Districts<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#View_Full_Project_Details_Best_Business_Opportunities_in_Bihar_A_Guide_for_Entrepreneurs\" >View Full Project Details: Best Business Opportunities in Bihar: A Guide for Entrepreneurs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Setting_Up_Your_Agri-Input_Distribution_Advisory_Unit\" >Setting Up Your Agri-Input Distribution &amp; Advisory Unit<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Step_1_Register_and_Get_Your_Foundation_Right\" >Step 1: Register and Get Your Foundation Right<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Step_2_Secure_the_Space\" >Step 2: Secure the Space<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Step_3_Core_Equipment\" >Step 3: Core Equipment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Step_4_Licences_and_Approvals\" >Step 4: Licences and Approvals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Step_5_Raw_Material_Inventory_Sourcing\" >Step 5: Raw Material &amp; Inventory Sourcing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Step_6_Timeline_to_First_Revenue\" >Step 6: Timeline to First Revenue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Smart_entrepreneurs_start_here%E2%80%94find_your_perfect_venture\" >Smart entrepreneurs start here\u2014find your perfect venture<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Table_2_Investment_Breakdown_for_a_Block-Level_Agri-Input_Advisory_Unit\" >Table 2: Investment Breakdown for a Block-Level Agri-Input &amp; Advisory Unit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#ENTREPRENEUR_SPOTLIGHT\" >ENTREPRENEUR SPOTLIGHT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#What_the_Numbers_Look_Like\" >What the Numbers Look Like<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Related_Article_Bihars_%E2%82%B9170_Crore_MSME_Technology_Centre_High-Growth_Business_Opportunities_You_Cannot_Afford_to_Miss\" >Related Article: Bihar\u2019s \u20b9170 Crore MSME Technology Centre: \u00a0High-Growth Business Opportunities You Cannot Afford to Miss<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Table_3_Government_Schemes_Applicable_to_this_Agri-Input_Advisory_Venture\" >Table 3: Government Schemes Applicable to this Agri-Input &amp; Advisory Venture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Getting_Expert_Project_Guidance\" >Getting Expert Project Guidance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Your_Next_Step\" >Your Next Step<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.entrepreneurindia.co\/blogs\/agri-tech-business-in-bihar\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_Number_That_Changes_Everything\"><\/span><strong>The Number That Changes Everything<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ninety-two percent. It&#8217;s the percentage of Indian farmers who still depend on a sahukar or a local agrodealer for fertilizer advice; a person who has no formal college education, no soil-test data and a strong incentive to promote any particular bag of fertiliser that brings the highest profit. According to <a href=\"https:\/\/mospi.gov.in\" target=\"_blank\" rel=\"noopener\">MOSPI<\/a>, in a country where almost 47% of the population are engaged in agriculture and accounts for around \u20b920 lakh crore of the country&#8217;s GDP every year, this single failure in the entire chain costs the farmers hundreds of billions of rupees in the loss of their inputs and the sub-optimal yield every season.<\/p>\n<p>Now, think about this: A dropout from Vaishali district, Bihar, who is not a name that has been making headlines in any major tech news, is behind a \u20b920 crore agri-tech venture from a room, measuring just 400 square feet, above a paddy storage shed. No venture capital. No IIT degree. No co-working space.<\/p>\n<p>It was not an app or an algorithm that gave him an edge. It was a rural distribution system that a startup in an urban area would be unable to match. This story is his blueprint; it&#8217;s yours!<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Gap_Nobody_Is_Filling\"><\/span><strong>The Gap Nobody Is Filling<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>India has over 330 million metric tonnes of foodgrains production every year. However, data from the <a href=\"https:\/\/www.icar.org.in\" target=\"_blank\" rel=\"noopener\">National Centre for Post Harvest Technology (ICAR-CIPHET)<\/a> shows that more than one-third of the post-harvest losses are due to wrong use of inputs in the farm. It&#8217;s not awareness. In Bihar, UP, Jharkhand and Chhattisgarh, farmers are well aware of the importance of soil quality. The challenge is the lack of access \u2013 to a reliable, affordable, tech enabled soil test and input recommendation within 10 kilometres of their farm.<\/p>\n<p>In Bihar alone, there are about 1.6 crore farm households and due to the last Agricultural Census published by the Ministry of Agriculture, more than 68% of the farmers are the small and marginal farmers having land holding of less than 2 hectares. They do not have the financial means to go to district level for advice. They also believe that branded input dealers (mostly in Patna, Muzaffarpur and Gaya) cannot provide impartial inputs advice.<\/p>\n<p>According to Agribusiness Committee of FICCI, the organised agri-input market in India is worth over \u20b92.5 lakh crore. However, the distribution is scattered in Tier 3 and Tier 4 markets, the last-mile delivery is non-existent and digital farm-advisory tools are almost entirely under the ownership of large corporates who don&#8217;t have any penetration in blocks. That is the gap.<\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Get_Detailed_Insights_from_This_Book_Modern_Technology_of_Agro_Processing_Agricultural_Waste_Products\"><\/span>Get Detailed Insights from This Book: <a href=\"https:\/\/www.niir.org\/books\/book\/modern-technology-agro-processing-agricultural-waste-products\/isbn-8186623493\/zb,,b,a,0,0,a\/index.html\" target=\"_blank\" rel=\"noopener\">Modern Technology of Agro Processing &amp; Agricultural Waste Products<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"State-wise_Agri-Input_Market_Gap_Key_Opportunity_Districts\"><\/span><strong>State-wise Agri-Input Market Gap &amp; Key Opportunity Districts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><strong>State<\/strong><\/td>\n<td><strong>Farm HHs (Lakh)<\/strong><\/td>\n<td><strong>Organised Input Penetration<\/strong><\/td>\n<td><strong>Key Opportunity Districts<\/strong><\/td>\n<td><strong>Annual Input Spend\/HH (\u20b9)<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Bihar<\/td>\n<td>160<\/td>\n<td>18%<\/td>\n<td>Vaishali, Muzaffarpur, Darbhanga, Saran<\/td>\n<td>8,200<\/td>\n<\/tr>\n<tr>\n<td>Uttar Pradesh<\/td>\n<td>234<\/td>\n<td>22%<\/td>\n<td>Gorakhpur, Azamgarh, Bahraich, Sitapur<\/td>\n<td>9,400<\/td>\n<\/tr>\n<tr>\n<td>Jharkhand<\/td>\n<td>38<\/td>\n<td>14%<\/td>\n<td>Giridih, Hazaribagh, Dumka, Khunti<\/td>\n<td>6,800<\/td>\n<\/tr>\n<tr>\n<td>Chhattisgarh<\/td>\n<td>44<\/td>\n<td>16%<\/td>\n<td>Raipur Rural, Rajnandgaon, Kanker<\/td>\n<td>7,500<\/td>\n<\/tr>\n<tr>\n<td>Madhya Pradesh<\/td>\n<td>118<\/td>\n<td>21%<\/td>\n<td>Sagar, Chhindwara, Rewa, Satna<\/td>\n<td>8,900<\/td>\n<\/tr>\n<tr>\n<td>Odisha<\/td>\n<td>52<\/td>\n<td>17%<\/td>\n<td>Koraput, Balangir, Kalahandi, Sambalpur<\/td>\n<td>7,200<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong style=\"color: #212121; font-size: 1.953em;\">Why Right Now Is the Window<\/strong><\/p>\n<p>Three forces are coming together at once \u2013 and won&#8217;t again be in the same place within a decade.<\/p>\n<p>First of all, the Government of India has pledged more than \u20b91 lakh crore for the development of agricultural infrastructure through the <a href=\"https:\/\/agriinfra.dac.gov.in\" target=\"_blank\" rel=\"noopener\">Agriculture Infrastructure Fund (AIF) <\/a>with a specific focus on primary processing, storage and input distribution at the block and panchayat level. So there&#8217;s block-level infrastructure being built \u2014 and the current owners of the final-mile distribution channel will be hard to unseat down the road.<\/p>\n<p>Second, the growth of Farmer Producer Organisations (FPOs) is rapid. In the Government&#8217;s FPO Scheme of MoA&amp;FW, 10 thousand new FPOs have been sanctioned. The FPOs bring together 300\u2013500 farmers. If the agri-input entrepreneur engages with as few as 10 FPOs in a district, he or she will have direct access to 3000-5000 farm households without establishing a single retail point.<\/p>\n<p>Third, the penetration of smartphones in rural Bihar has moved beyond the 30% mark less than a decade ago to above 62% in recent estimates by <a href=\"https:\/\/www.trai.gov.in\" target=\"_blank\" rel=\"noopener\">TRAI<\/a>. Farmers can now get advisory notifications, pay digitally for inputs and record crop health. There is a tremendous first-mover advantage for a village entrepreneur that can span the tech layer and also have a physical presence at the block level.<\/p>\n<p>The most relevant government scheme for this venture: PMEGP (Prime Minister\u2019s Employment Generation Programme) administered by KVIC. It pays a subsidy of 25-35% of the project cost (35% in special category states such as Bihar for rural entrepreneurs). The balance amount of the project is financed through a Bank Loan, and there is no collateral required up to \u20b920 lakh. Details at kvic.gov.in.<\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"View_Full_Project_Details_Best_Business_Opportunities_in_Bihar_A_Guide_for_Entrepreneurs\"><\/span>View Full Project Details: <a href=\"https:\/\/www.niir.org\/profile-projects-reports\/profiles\/best-business-opportunities-in-bihar-identification-selection-right-project-thrust-areas-for-investment-industry-startup-entrepreneurship-projects\/z,,97,0,a\/index.html\" target=\"_blank\" rel=\"noopener\">Best Business Opportunities in Bihar: A Guide for Entrepreneurs<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_8665\" aria-describedby=\"caption-attachment-8665\" style=\"width: 1200px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-8665\" src=\"https:\/\/www.entrepreneurindia.co\/blogs\/wp-content\/uploads\/2026\/06\/Untitled-design-92.jpg\" alt=\"Agri tech business in Bihar\" width=\"1200\" height=\"1800\" srcset=\"https:\/\/www.entrepreneurindia.co\/blogs\/wp-content\/uploads\/2026\/06\/Untitled-design-92.jpg 1200w, https:\/\/www.entrepreneurindia.co\/blogs\/wp-content\/uploads\/2026\/06\/Untitled-design-92-200x300.jpg 200w, https:\/\/www.entrepreneurindia.co\/blogs\/wp-content\/uploads\/2026\/06\/Untitled-design-92-683x1024.jpg 683w, https:\/\/www.entrepreneurindia.co\/blogs\/wp-content\/uploads\/2026\/06\/Untitled-design-92-768x1152.jpg 768w, https:\/\/www.entrepreneurindia.co\/blogs\/wp-content\/uploads\/2026\/06\/Untitled-design-92-1024x1536.jpg 1024w, https:\/\/www.entrepreneurindia.co\/blogs\/wp-content\/uploads\/2026\/06\/Untitled-design-92-150x225.jpg 150w, https:\/\/www.entrepreneurindia.co\/blogs\/wp-content\/uploads\/2026\/06\/Untitled-design-92-750x1125.jpg 750w, https:\/\/www.entrepreneurindia.co\/blogs\/wp-content\/uploads\/2026\/06\/Untitled-design-92-1140x1710.jpg 1140w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-8665\" class=\"wp-caption-text\">A small agri-input distribution unit serving farmers at block level in Bihar.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Setting_Up_Your_Agri-Input_Distribution_Advisory_Unit\"><\/span><strong>Setting Up Your Agri-Input Distribution &amp; Advisory Unit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_Register_and_Get_Your_Foundation_Right\"><\/span><strong>Step 1: Register and Get Your Foundation Right<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Register on the <a href=\"https:\/\/udyamregistration.gov.in\" target=\"_blank\" rel=\"noopener\">Udyam Portal<\/a>, it can be done within 30 minutes and it is free. Accessible through this is PMEGP, CGTMSE and NABARD schemes. At the same time, seek registration of your business as a sole proprietorship or OPC under MCA21. You must register for GST if your estimated annual turnover is above \u20b920 lakh (which is the 6th month target).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_Secure_the_Space\"><\/span><strong>Step 2: Secure the Space<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Block level distribution units require 400-600 sq ft of covered space: 200 sq ft for soil-test equipment and consultation, and the remaining space for input stock storage \u2013 fertiliser, seed, pesticides, micronutrients. The rent for the monthly accommodation in a Tier 3 block market is from \u20b95,000 to \u20b912,000. Avoid over-investing in location \u2013 It is the accessibility (proximity to the block bus stand\/ haat market) that is more important than the square footage.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_Core_Equipment\"><\/span><strong>Step 3: Core Equipment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Minimum equipment to launch:<\/p>\n<ul>\n<li>Portable Soil Testing kit (NPK-pH-micronutrient) \u2014 \u20b945,000-80,000 from suppliers such as Spectrum Technologies or local ICAR approved soil testing vendors (Patna)\\<\/li>\n<li>GPS tagged farm parcel mapping device\/Smartphone with GIS App \u2014 \u20b915,000<\/li>\n<li>Laptop + printer for preparation of reports and billing \u2014 \u20b935,000<\/li>\n<li>Bio-inputs cold storage micro unit (6-8 cubic foot) \u2014 \u20b922000<\/li>\n<li>Display shelving and stock racks \u2013 \u20b918,000<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Step_4_Licences_and_Approvals\"><\/span><strong>Step 4: Licences and Approvals<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You need:<\/p>\n<ul>\n<li>Pesticide Licence \u2014 1968 (Insecticides Act): apply through the state agriculture department (processing time: 30-45 days)<\/li>\n<li>Fertiliser Dealer Licence (state agriculture department) \u2014 30 days<\/li>\n<li>Seed Licence (Seeds Act, 1966) (if retailing seeds) \u2014 45 days<\/li>\n<li>All trade licenses should be issued from Gram Panchayat or Municipal Authority \u2014 7 days.<\/li>\n<li>A GST Registration takes 3-5 days online.<\/li>\n<li>Udyam Registration \u2014 same day<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Step_5_Raw_Material_Inventory_Sourcing\"><\/span><strong>Step 5: Raw Material &amp; Inventory Sourcing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Use state approved brands of fertiliser IFFCO, Coromandel International or Zuari Agro. Seeds of State approved varieties by National Seeds Corporation\/ Bihar RAJYA BEEJ NIGAM. Bio-inputs \u2013 Vermicompost, Rhizobium, PSB culture, from your local KVK (Krishi Vigyan Kendra). A range of micronutrient formulations from firms such as Multiplex Agri Solutions (Bengaluru) which provide Tier 3 distributorships with credit terms of 30-45 days.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_6_Timeline_to_First_Revenue\"><\/span><strong>Step 6: Timeline to First Revenue<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Month 1\u20132: Registration, licences, space setup, equipment procurement.<\/p>\n<p>Month 3: Stock in, first FPO partnership signed, soft launch.<\/p>\n<p>Month 4: First 50 soil tests done; advisory revenue begins.<\/p>\n<p>Month 5\u20136: GST sales invoicing, second FPO partner, repeat customer base of 200+ farmers.<\/p>\n<p>Typical starting team: 1 trained AGRONOMIST (B.Sc. Agriculture graduate from a local college, salary of \u20b912,000 to \u20b915,000 per month), 1 field mobiliser for FPO liaison and you. It&#8217;s three people to start with.<\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Smart_entrepreneurs_start_here%E2%80%94find_your_perfect_venture\"><\/span><a href=\"https:\/\/www.niir.org\/startup-selector\" target=\"_blank\" rel=\"noopener\">Smart entrepreneurs start here\u2014find your perfect venture<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"Table_2_Investment_Breakdown_for_a_Block-Level_Agri-Input_Advisory_Unit\"><\/span><strong>Table 2: Investment Breakdown for a Block-Level Agri-Input &amp; Advisory Unit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><strong>Investment Head<\/strong><\/td>\n<td><strong>Minimum (\u20b9)<\/strong><\/td>\n<td><strong>Recommended (\u20b9)<\/strong><\/td>\n<td><strong>Notes<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Soil Testing &amp; GIS Equipment<\/td>\n<td>45,000<\/td>\n<td>80,000<\/td>\n<td>ICAR-approved kit; portable for field visits<\/td>\n<\/tr>\n<tr>\n<td>IT Infrastructure (laptop, printer, software)<\/td>\n<td>35,000<\/td>\n<td>55,000<\/td>\n<td>Include farm management software licence<\/td>\n<\/tr>\n<tr>\n<td>Cold Storage Micro-Unit (bio-inputs)<\/td>\n<td>20,000<\/td>\n<td>28,000<\/td>\n<td>6\u20138 cu ft; runs on 200W<\/td>\n<\/tr>\n<tr>\n<td>Shop Fit-out, Racks &amp; Signage<\/td>\n<td>18,000<\/td>\n<td>35,000<\/td>\n<td>Block-market visible frontage<\/td>\n<\/tr>\n<tr>\n<td>Initial Inventory (fertiliser, seeds, bio-inputs)<\/td>\n<td>1,20,000<\/td>\n<td>2,50,000<\/td>\n<td>30-day stock at expected volume<\/td>\n<\/tr>\n<tr>\n<td>Licence Fees &amp; Registration<\/td>\n<td>8,000<\/td>\n<td>12,000<\/td>\n<td>Pesticide + Fertiliser + Seed licences<\/td>\n<\/tr>\n<tr>\n<td>Working Capital Reserve (3 months)<\/td>\n<td>60,000<\/td>\n<td>1,00,000<\/td>\n<td>Staff salaries + rent + logistics<\/td>\n<\/tr>\n<tr>\n<td>Contingency (10%)<\/td>\n<td>30,600<\/td>\n<td>56,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Total<\/td>\n<td>3,36,600<\/td>\n<td>6,16,000<\/td>\n<td>PMEGP covers 35% of total project cost<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"ENTREPRENEUR_SPOTLIGHT\"><\/span><strong>ENTREPRENEUR SPOTLIGHT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Ramesh Kumar Sinha, District &#8211; Vaishali, Bihar.<\/strong><\/p>\n<p><em>After Class 10, Ramesh left school and was working as a daily-wage labourer in Patna for 10 years before returning to his village. With a \u20b912 lakh PMEGP loan, he began a Soil Test lab and Crop Nutrient Advisory unit of 200 square feet. Now, he operates on 14 blocks in Vaishali and Muzaffarpur, with nine employees and a revenue of \u20b91.8 crore per year. His one lesson was \u201cFarmers do not need technology explained they should be priced right and available in the block market.\u201d<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_the_Numbers_Look_Like\"><\/span><strong>What the Numbers Look Like<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When the capacity is 60% (150 soil tests per month and \u20b93.5 lakh input product sold), the monthly revenue is approximately \u20b95.8 lakh. When the capacity is at 100% (250 tests and \u20b96 lakh product sold per month), the monthly revenue is \u20b99.2 lakh.<\/p>\n<p>The following is a margin structure:<\/p>\n<ul>\n<li>Input product sales (fertilisers, seeds, bio-inputs): gross margin of 14-18%<\/li>\n<li>Soil testing and advisory fee: \u20b9150-\u20b9300 per test, gross margin of 65-70% after labour cost<\/li>\n<li>Bulk-supply contracts to FPOs: lower margin (10\u201312%) and assured volume<\/li>\n<\/ul>\n<p>Net margins at scale: 18-24% based on the proportion of your advice and product income. The more advice you do, the better the margins. The monthly revenue is \u20b99.2 lakh and net margin is 22%, which means monthly net profit of \u20b92.02 lakh or a total of \u20b924 lakh per year.<\/p>\n<p>The capital expenditure on the suggested build is \u20b96.16 lakh. When full capacity is reached, most units reach it at Month 8 to Month 10 and the net profit of \u20b924 lakh per annum means that payback period is less than 4 months. The PMEGP subsidy of 35% means that it will cost you around \u20b94 lakh in real cash.<\/p>\n<p>The projections are based on benchmarks of block markets and field data collected from KVK Vaishali and KVK Muzaffarpur for agri-input dealers.<\/p>\n<h3 class=\"wp-block-heading has-text-align-center\" style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Related_Article_Bihars_%E2%82%B9170_Crore_MSME_Technology_Centre_High-Growth_Business_Opportunities_You_Cannot_Afford_to_Miss\"><\/span>Related Article: <a href=\"https:\/\/www.niir.org\/blog\/bihar-msme-industrial-growth\/\" target=\"_blank\" rel=\"noopener\">Bihar\u2019s \u20b9170 Crore MSME Technology Centre: \u00a0High-Growth Business Opportunities You Cannot Afford to Miss<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"Table_3_Government_Schemes_Applicable_to_this_Agri-Input_Advisory_Venture\"><\/span><strong>Table 3: Government Schemes Applicable to this Agri-Input &amp; Advisory Venture<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><strong>Scheme<\/strong><\/td>\n<td><strong>Administering Body<\/strong><\/td>\n<td><strong>Benefit<\/strong><\/td>\n<td><strong>Max Limit<\/strong><\/td>\n<td><strong>Eligibility<\/strong><\/td>\n<\/tr>\n<tr>\n<td>PMEGP<\/td>\n<td>KVIC \/ KVIB \/ DIC<\/td>\n<td>25\u201335% subsidy on project cost<\/td>\n<td>\u20b925 lakh (manufacturing), \u20b910 lakh (services)<\/td>\n<td>First-time entrepreneur; rural preference<\/td>\n<\/tr>\n<tr>\n<td>CGTMSE<\/td>\n<td>SIDBI \/ MoMSME<\/td>\n<td>Collateral-free loan guarantee<\/td>\n<td>Up to \u20b92 crore<\/td>\n<td>Udyam registered MSME<\/td>\n<\/tr>\n<tr>\n<td>NABARD FPO Financing<\/td>\n<td>NABARD<\/td>\n<td>Low-cost credit to FPOs; piggyback supply chain<\/td>\n<td>Varies by FPO size<\/td>\n<td>FPO partner route for agri-input dealers<\/td>\n<\/tr>\n<tr>\n<td>AIF (Agri Infra Fund)<\/td>\n<td>MoA&amp;FW \/ NABARD<\/td>\n<td>3% interest subvention + credit guarantee<\/td>\n<td>\u20b92 crore per borrower<\/td>\n<td>Agri-infrastructure including storage, testing<\/td>\n<\/tr>\n<tr>\n<td>PMFBY (Crop Insurance channel)<\/td>\n<td>Ministry of Agriculture<\/td>\n<td>Commission income for enrolment facilitation<\/td>\n<td>N\/A<\/td>\n<td>Licensed agri-input dealers<\/td>\n<\/tr>\n<tr>\n<td>SFAC Equity Grant<\/td>\n<td>Small Farmers Agri Consortium<\/td>\n<td>Equity support for FPO-linked ventures<\/td>\n<td>\u20b915 lakh<\/td>\n<td>FPO-promoted enterprises<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Getting_Expert_Project_Guidance\"><\/span><strong>Getting Expert Project Guidance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Niir Project Consultancy Services (NPCS) provides detailed project reports (DPRs), Techno-economic Feasibility Studies, plant layout designing and end-to-end project consultancy in agri-input, agro-processing and rural enterprise sector for any entrepreneur who requires a bankable project report before approaching KVIC, NABARD, or any commercial bank. NPCS reports are designed as per DIC and NABARD submission requirements and all the information covered in the report are in the format of Machinery specification, Raw material sourcing guide, financial projections and Regulatory checklist. The entrepreneurs can visit <a href=\"https:\/\/www.niir.org\" target=\"_blank\" rel=\"noopener\">niir.org<\/a> and get information about their database, and also can find sector specific start-up guides at <a href=\"https:\/\/www.entrepreneurindia.co\">entrepreneurindia.co<\/a>.<\/p>\n<div class=\"jeg_video_container jeg_video_content\"><iframe title=\"Start-up Opportunities in Bihar | Lucrative Investment Opportunities.\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/1C2CYomvo6s?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Your_Next_Step\"><\/span><strong>Your Next Step<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Don&#8217;t wait for the right city or the correct funding round. A window of opportunity to distribute agri-inputs into rural areas is open now in rural Bihar, UP, Jharkhand and Chhattisgarh and it is limited. The first-mover advantage will be lost once the FPOs become deeper into their penetration and the large corporates complete their block level supply chain.<\/p>\n<p>Your next step is action oriented: Register on the <a href=\"https:\/\/udyamregistration.gov.in\" target=\"_blank\" rel=\"noopener\">Udyam Portal<\/a> and download PMEGP Application on kviconline.gov.in and find out 2 FPOs in the targeted district from the SFAC FPO Directory. This is all free of charge. All in all, it takes less than 24 hours. You now have more information than the entrepreneur from Vaishali did.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Q1. What&#8217;s the initial capital required for the business?<\/strong><\/p>\n<p>The overall cost of the project can be as low as \u20b93.4\u20136.2 lakh. PMEGP provides subsidy on 35% of it (\u20b91.2\u20132.2 lakh) \u2014 you will not pay back this subsidy. The balance is provided as a bank loan, with a subsidised interest rate. Depending on the structure of the loan, the amount of personal cash requirement at entry may be as low as \u20b980,000\u2013\u20b91.5 lakh.<\/p>\n<p><strong>Q2. Which licences do I need to get before I can open?<\/strong><\/p>\n<p>At least: Pesticide Dealer Licence (state agriculture department), Fertiliser Dealer Licence (state agriculture department), Udyam Registration, and GST Registration. For certified seed sales include Seeds Act: Seed Licence. Processing time: 45-60 days (if applications are submitted at the same time).<\/p>\n<p><strong>Q3. Where am I able to get agri-inputs at a reasonable price?<\/strong><\/p>\n<p>Buy fertilisers from the state registered distributors of IFFCO, Coromandel International or Chambal Fertilisers. In case of seeds, you can contact Bihar Rajya Beej Nigam and\/or the National Seeds Corporation. Bio-inputs and micronutrients can be availed at a subsidised price through your nearest KVK which can also help you get access to approved sellers within the state.<\/p>\n<p><strong>Q4. What is an achievable profit on the kind of business?<\/strong><\/p>\n<p>Gross margins for input products are between 14% and 18%. Soil testing and advisory services provide 65\u201370% gross margins. Net margins of 18-24% can be achieved at a blended model operating at full capacity. About \u20b91.8\u20132.2 lakh is the monthly net profit of a well-managed block level unit at 100 per cent capacity.<\/p>\n<p><strong>Q5. How does the PMEGP subsidy work, and can I really get it?<\/strong><\/p>\n<p>PMEGP gives 35% capital subsidy to rural entrepreneur on a loan for special category states (Bihar being one of them). You apply through your closest District Industries Centre or KVIC office. The subsidy is released directly to your loan account after you complete 3 years of running business; it just sits there as margin money deposit. It is not fake, is working and has a disbursement amount of more than 18,000 cr so far. You can check the application cycle at kvic.gov.in.<\/p>\n<p><strong>Q6. Can NPCS help me prepare a project report for bank submission?<\/strong><\/p>\n<p>Yes. NIIR Project Consultancy Services (NPCS) prepares an exclusive DPR to all types of enterprise like agri-input distribution and soil advisory units. A DPR of NPCS, will encompass; machinery specifications, projections, raw materials, and all the legal requirements in NABARD and DIC Format. A catalogue is available on niir.org or a call can be made at their Delhi office.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Agri tech business in Bihar The Number That Changes Everything Ninety-two percent. It&#8217;s the percentage of Indian farmers who still depend on a sahukar or a local agrodealer for fertilizer advice; a person who has no formal college education, no soil-test data and a strong incentive to promote any particular bag of fertiliser that brings [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":8664,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","override":[{"template":"2","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"topbottom","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","show_comment_section":"1","number_popup_post":"1","show_author_box":"1","show_post_related":"0","show_inline_post_related":"0"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0"},"jnews_primary_category":[],"jnews_social_meta":[],"jnews_paywall_metabox":{"paragraph_limit":"2","enable_premium_post":"0","enable_free_post":"0","override_paragraph_limit":"0","enable_preview_post":"0","enable_preview_video":"0"},"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[1145,1227,1221],"tags":[2256,2252,2258,2257,2254,2255,2253],"class_list":["post-8663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agriculture-agribusiness","category-government-schemes-policies","category-startup-opportunities","tag-agri-input-distribution-business-india","tag-agri-startup-business-plan-india","tag-agriculture-startup-ideas-in-india","tag-fpo-based-business-model-india","tag-pmegp-scheme-for-business-in-bihar","tag-rural-agri-business-model-india","tag-soil-testing-startup-in-india"],"_links":{"self":[{"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/posts\/8663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/comments?post=8663"}],"version-history":[{"count":1,"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/posts\/8663\/revisions"}],"predecessor-version":[{"id":8666,"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/posts\/8663\/revisions\/8666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/media\/8664"}],"wp:attachment":[{"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/media?parent=8663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/categories?post=8663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.entrepreneurindia.co\/blogs\/wp-json\/wp\/v2\/tags?post=8663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}