Do listen if you are interested in the Dairy Sector

AI for increasing milk production in India

Telemedicine in India's livestock industry

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.