Stark income disparities between dairy and vegetable farmers

India’s agricultural sector highlights a sharp income divide between dairy and vegetable farmers. Dairy farmers working with cooperatives like Amul earn 80-85% of the final consumer price, while vegetable farmers often receive only 30-40%. Amul’s cooperative structure eliminates middlemen, ensures transparent pricing, and offers timely payments. With over 3.6 million members, it provides veterinary services and other inputs, helping farmers stabilize incomes and plan production efficiently.

In contrast, vegetable farmers face unpredictable price fluctuations, perishability issues, and fragmented markets. With poor cold storage and reliance on mandis controlled by intermediaries, they often earn only a fraction of what urban consumers pay. For example, tomatoes sold at ₹60-80 per kg in cities might fetch farmers only ₹15-25 per kg during peak harvest seasons. The lack of bargaining power leaves them vulnerable to price crashes, forcing many farmers to shift to dairy farming for more stable returns.

This shift, however, threatens agricultural diversity and food security. A heavy focus on dairy could reduce the production of essential crops, making India dependent on imports. To address these challenges, strengthening Farmer Producer Organizations (FPOs) could replicate Amul’s cooperative success in vegetable markets. Developing cold storage infrastructure, direct-to-consumer platforms, and value-added production (like sauces and frozen vegetables) could increase farmer margins and reduce waste.

Introducing minimum support prices (MSP) for key vegetables could further shield farmers from price volatility. Cooperative models like Amul demonstrate the power of collective action in improving farmer incomes, and expanding similar frameworks to other agricultural sectors can build a more equitable and sustainable future for Indian agriculture.

Listen into to a deep dive on the above. 

The Rise of Subscription Models in Rural India: A Glimpse into the Future

In recent years, subscription-based services have become immensely popular in urban India, driven by convenience, affordability, digital infrastructure, and a shift towards services over ownership. While metros like Mumbai and Delhi have been early adopters, a surprising transformation is unfolding in rural India, pointing to the increasing relevance of subscription models beyond urban boundaries.

Shifting Aspirations and Evolving Preferences

Rural India, often stereotyped as traditional and slow to embrace change, is now undergoing a
dynamic shift. As digital penetration increases through smartphones and affordable internet, rural consumers are displaying aspirations similar to their urban counterparts. A desire for better lifestyles, higher productivity, and seamless access to services is driving behavioral shifts. This trend is reflected in the growing success of models like Shunya's fodder-as-a-service subscription, where small dairy farmers benefit from timely delivery of high-quality green fodder without needing to maintain large inventories or make capital investments.

Convenience Meets Reliability

For rural consumers, the appeal of subscription services lies in the predictability and reliability they offer. Farming communities, for instance, value a steady supply of essential products like livestock feed. Services such as Shunya's daily delivery of hydroponic fodder align perfectly with rural needs by automating recurring tasks, freeing up time for other productive activities. This mirrors the urban trend where subscription services save consumers time, allowing them to focus on other priorities.

Affordability through Small Recurring Payments

The affordability factor is a major reason subscription models are gaining traction in rural areas. Instead of large, one-time purchases that strain household budgets, these services break down payments into smaller, recurring installments. Shunya's subscription model ensures that farmers pay manageable fees, making it easier to access premium products without financial burdens.

Digital Infrastructure as an Enabler

The growth of digital infrastructure in rural areas—fueled by increased UPI adoption and improved mobile connectivity—has simplified payment processes. Autopay options, digital wallets, and seamless payment gateways now enable rural consumers to subscribe to services with the same ease as their urban counterparts, fostering trust in these models.

The Road Ahead: A Service-Oriented Rural Economy

The success of subscription models in rural India signals a shift towards a service-oriented economy, where access matters more than ownership. As rural aspirations continue to grow, this trend points to a future where convenience, affordability, and technology-driven solutions become integral to rural lifestyles, laying the foundation for economic empowerment and sustainable growth.

Read more here on Shunya's experience on subscriptions in Bharat. 

Is hydroponically grown green fodder India's hope?

The largest producer of milk in the world is facing an ever increasing crisis of fodder and animal nutrition. We discuss how severe is the issue of deficit of fodder and how it is impacting the lives of small farmers. 

In the space Shunya is offering fodder-as-a-service. Is the a possible solution? Listen in and share your views. 

Agricultural greenhouse gas emissions of an Indian village.

This episode reviews the research paper, "Agricultural greenhouse gas emissions of an Indian village - Who's to blame: crops or livestock?", & examines the environmental impact of the Green and White revolutions on a village in Gujarat, India.

Using a novel methodology that combines Life Cycle Assessment (LCA) and agrarian diagnosis, the study analyzes greenhouse gas (GHG) emissions from both crops and livestock, considering the diversity of farms in the village.

The authors identify the main sources of emissions, comparing them to national and international averages, and ultimately determine that livestock contributes significantly to GHG emissions due to a combination of low milk yields and high-emission feed sources.

The paper concludes by discussing the potential implications of livestock intensification for GHG emissions, environmental sustainability, and social equity in the context of the Indian agricultural sector.

Listen to the episode here

Challenges in the Indian Livestock Industry and Shunya's Solution

There are several challenges confronting the livestock industry in India:

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Fodder Scarcity: India faces significant deficits in both green fodder (32-35%) and dry fodder (23-25%). This shortage is driven by factors such as rising livestock populations, limited land availability for fodder cultivation, and increasing urbanization. The scarcity of nutritious fodder leads to lower milk and meat yields, significantly impacting farmers' incomes.

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Water Scarcity: Traditional fodder cultivation methods require significant amounts of water, a resource that is becoming increasingly scarce in India.

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Low Productivity: The fodder shortage contributes to Indian cattle having a milk yield 50% lower than the global average, while meat yields are 20-60% below global standards. This low productivity directly impacts the income of millions of farmers who rely on livestock for their livelihoods.

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Fragmented Landholdings: With shrinking and fragmented landholdings, dedicating land for fodder cultivation becomes less viable, especially for smallholder farmers.

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Climate Change: Extreme weather conditions and unpredictable rainfall patterns further exacerbate the challenges of fodder production, making it difficult for farmers to ensure a stable supply.

Shunya's Fodder-as-a-Service (FaaS) Model:

To address these challenges, Shunya has introduced a "Fodder-as-a-Service" (FaaS) model, utilizing a combination of hydroponic farming and a digitally-enabled platform. Here's how it works:

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Hydroponic Fodder Production: Shunya establishes "Growth & Logistics Centers" (GLCs) equipped with hydroponic vertical farming units to produce high-quality green fodder. Hydroponics uses significantly less water (up to 95% less) and land compared to traditional farming methods, making it a more sustainable and resource-efficient approach.

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Mobile App for Ordering: Shunya provides a mobile app for farmers to conveniently place orders for green fodder, either on an ad-hoc basis or through subscription-based models. This digital platform ensures easy access to fodder and allows farmers to plan their needs effectively.

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Efficient Logistics and Delivery Network: Shunya partners with local entrepreneurs (Shunya Partners) to manage the last-mile delivery of fodder to farmers' doorsteps. This network ensures timely and reliable delivery, a critical aspect for fresh fodder.

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Focus on High-Need Areas: Shunya prioritizes its operations in regions with high fodder demand, low rainfall, frequent droughts, and high livestock populations. This strategic approach ensures that the solution reaches those who need it most.

Benefits of Shunya's Model:

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Reliable Fodder Supply: The FaaS model guarantees a year-round supply of fresh, nutritious, and chemical-free fodder, addressing the critical challenge of fodder scarcity.

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Increased Income: Access to high-quality fodder improves livestock health and productivity, leading to increased milk and meat yields and higher incomes for farmers.

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Land Optimization: Farmers can use the land previously dedicated to fodder cultivation for more profitable crops, further enhancing their earnings.

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Reduced Costs: By eliminating the need for traditional fodder farming, farmers save on expenses related to seeds, fertilizers, irrigation, and labor.

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Environmental Sustainability: Hydroponic farming significantly reduces water consumption and land usage, contributing to environmental sustainability.

By addressing the fundamental challenges of the livestock industry, Shunya's FaaS model has the potential to transform the sector and significantly improve the livelihoods of millions of Indian farmers. The early success of Shunya's subscription model, as noted in source, suggests a potential shift in rural commerce towards reliable, technology-driven solutions for essential agricultural needs.