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Profitable Agri-Business: Start These 6 Low Scale Business & Double Your Profit - Krishi Jagran

Profitable Agri-Business: Start These 6 Low Scale Business & Double Your Profit - Krishi Jagran


Profitable Agri-Business: Start These 6 Low Scale Business & Double Your Profit - Krishi Jagran

Posted: 04 Apr 2020 05:48 AM PDT

Agri-business is one of the fastest-growing business across the globe during this time while big industries bound to shut their door due to crisis. Moreover, youth is moving towards more into an agro-based business where the chances of loss are very less. If we look at the current scenario, there are more opportunities in Agri-business field than any other sector to try your luck where you can earn the maximum profit with minimum investment. Hence, we have listed out some of the most demanding small scale agri-business which can offer you a profitable future in agriculture with less investment.

Fertilizer business

You can think of this small scale agri-business to get a profitable agri-business. Farmers need seeds, manure and many agricultural implements for their farming. For this, the shopkeeper must get a license from the government. Then only he can sell seeds, manure and agricultural goods to the farmers. If you want to start this business, first arrange a warehouse and you may have to invest about 2 lakh rupees in it.

Jatropha Cultivation

Jatropha which is also known as 'Ratanjot', considered as an important source of energy. Moreover, a farmer needs a lot of fuel in farming. In such a situation, the cultivation of Jatropha is very beneficial. Moreover, you can easily cultivate it along the sides of the fields and along the irrigation drains. It takes less time. Jatropha crop can be grown in a wide range of soil including wastelands, poor soils, low rainfall, and drought areas. Jatropha plants are hardy and can tolerate water scarcity. Wastelands and other lands not suitable for crops can be utilized for growing Jatropha seeds.

Pulse Mill business

This business can be done easily in both rural and urban areas where you can earn more profit by applying less cost. You can start this business easily in less space. In India, dal milling is a profitable business. Depending on the production output, you can start this business at any size. Generally, large-scale operation ensures more profitability. However, a mini dal mill also a financially feasible business.

Rajnigandha Farming

This flower is in great demand in the market because it is used in decoration work. Rajnigandha has been cultivated in many states of the country. If you have planted about 12 quintal Rajnigandha pen on 1 hectare of land, then you will earn a very good profit from it. It costs about 1 lakh rupees for its cultivation.

Cashew Processing Unit

Raw cashews are taken from the farmers and made edible by the processing machine. This is one of the most demanding small scale Agri-business. If you want to install a cashew processing machine, it will cost you up to 1 lakh rupees.

Ginger Garlic Paste Production Business

In most households, ginger garlic paste is used while cooking. This paste is very popular, so its business can offer you a lot of profit. It can be started at a cost of only 50 thousand rupees. Explain that in this business, a small machine is required for grinding. Its price starts from about 20 thousand rupees. This business will earn you very well.

Coronavirus: Africans in informal economies struggle to stay home - Quartz Africa

Posted: 04 Apr 2020 04:43 AM PDT

As Nairobi, Kenya's capital, slowly grinds to a halt amid movement restrictions and climbing coronavirus cases, Stephen Odhiambo, a 32-year old Nairobi-based carpenter, still visits his workshop twice a week.

But without erstwhile regular patronage, Odhiambo spends much of his day calling customers in the hope of making money to support his wife and two young children. "From last month, when the government started the restrictions, my business began going down really fast," he tells Quartz.

Odhiambo's persistence with his business amid the coronavirus pandemic captures the realities of millions of  informal economy traders across Africa.

Vince Oyolo//Lynk

Stephen Odhiambo, a Nairobi carpenter, still hoping for customers

In Nigeria, where full lockdowns are in effect in Lagos and Abuja, small-scale businesses and traders are finding ways to stay alive. While major business districts are empty and highways typically locked in traffic jams are deserted, some informal businesses still operate.

In different suburbs across the state, public transport operators, including now-banned tricycles and motorcyles are still working despite the high risk of having their vehicles impounded. In Zimbabwe, where a 21-day lockdown is underway, illegal money-changers who used to operate in the city center and shopping malls in suburbs now conduct business at home, inviting customers who want to buy foreign currency to come over. In Kenya, traders are still attempting to do business despite the threat of police brutality.

"This is a very difficult situation. People here survive on a hand to mouth basis."

Africa's economies are dominated by their informal sectors which account for between 30%  to 90% of all non-agricultural job and more than 40% of many African countries' gross domestic product. The IMF estimates the informal sector's share of the global economy has been falling on average over the last decade, but it remains at a weighted average of 34% in Sub Saharan Africa, compared with 9% in North America and 15% in the OECD countries. The concern with the dominance of the informal, cash-based sector on the continent has often been discussed in the context of the disadvantages of a low tax base or weak financial inclusion. But in the wake of the coronavirus outbreak and the introduction of global measures to stem its spread, the fact many developing world countries have large swathes of their population reliant on day-to-day, cash-based commerce for survival has been a stark reminder of global inequities.

Millions of Africans are unable to survive without some form of daily trade and don't have the luxury of bank savings, credit cards and online commerce to be able to stay indoors or "social distance" for extended periods.

The lack of full compliance among small-scale and informal traders and businesses reflects their precarious financial realities. With business ventures that require daily activity to earn an income, a weeks-long hiatus from work can translate to financial peril. Without significant savings buffers to dip into amid coronavirus lockdown, many informal traders and businesses across the continent continue to operate out of a sense of necessity and desperation.

Yomi Kazeem

Waiting for customers in Lagos

There's a cyclical effect at play too. As large swathes of citizens cannot afford to stock up on food for long periods, low-income households typically buy food and essentials in small bits, thus creating some demand for small-scale traders. "This is a very difficult situation. People here survive on a hand to mouth basis," says Colen Mafuruse who works at a grocery tuckshop in Harare. "When the lockdown was announced most people did not have money to buy food in bulk," he adds.

This effect is also seen in South Africa where there are signs of trading activity in townships home to low-income households. In Alexandra, a Johannesburg township, traders have set up their stalls as usual and are doing business with the complicit help of local residents and customers who tip them off about police presence.

Risk factors

By continuing to operate, informal traders put themselves at risk of being infected with, and spreading, Covid-19. Unlike formal businesses, some of which continue to operate virtually with staff working from home and payments mostly happening online, informal businesses and trade often involves close person-to-person contact and cash-based transactions.

These risks are now being heightened by recent concessions made by governments across the continent, in recognition of the economic vulnerability of informal businesses and traders. Authorities in Nigeria have announced a partial opening of markets amid the lockdown. In Mauritius, the government has created a calendar allocating market shopping days to citizens based on the first letter of their surname. And, in South Africa, restrictions on informal businesses and small convenience stores, known locally as spaza shops, have now been eased.

Yet, despite their best efforts and resilience, informal businesses and traders are scoring big losses with demand and patronage taking a significant hit amid ongoing lockdowns. In South Africa's middle class suburban areas, including Randburg, where there's more visible policing, lockdown measures are being tightly enforced, leaving several erstwhile busy stalls and shopping areas empty.

In Ghana, with Accra and Kumasi undergoing a two-week lockdown, vendors whose businesses depend on their  proximity to now closed schools and offices have disappeared from streets while informal workers in the hospitality industry are out of work, and without income, too.

Norma Young

Empty shops and stalls in Johannesburg

As such, governments across the continent will likely face pushback from citizens the longer lockdowns rob citizens of their livelihoods. In Lagos, four days into a two-week lockdown, there have already been instances where the local task-force charged with enforcing restrictions have faced resistance in low-income neighborhoods. It's a trend that may yet reoccur with the government's efforts to provide food relief so far proving inadequate.

As authorities across the continent attempt to curb the long-term spread of coronavirus, they will likely find that their objective clashes with the short-term tough choices that millions of their citizens have to make. Tendai Mukora, a barber in Mutare, Zimbabwe's fourth largest city, still attends to customers despite the risk of coronavirus as the alternative, he says, is watching his family go to bed on empty stomachs. "I have no choice, I have to put food on the table."

Writing by Yomi Kazeem in Lagos, reporting by Neha Wadekar in Nairobi, Kwasi Gyamfi Asiedu in Accra, Ghana, Norma Young in Johannesburg and Farai Shawn Matiashe in Mutare, Zimbabwe

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La Crosse city officials prepare for dollars lost during the pandemic - La Crosse Tomah Journal

Posted: 04 Apr 2020 02:00 PM PDT

Walking through downtown La Crosse, you can see most storefronts with a note for its customers taped to the door. Saying it's closed, or open for limited hours, or only offering certain small-scale parts of its business.

It's something most cities around the state, and even the country, are experiencing. And as people are losing jobs and income, and large-scale operations shut down as well, the taxes the city collects to use in its next budget are in jeopardy.

What does that look like for La Crosse?

"We know there's going to be negative impacts," said La Crosse Mayor Tim Kabat.

Mayor Tim Kabat

Kabat

A major funding source for the city is property taxes — about $80 million — which Kabat thinks might make things more challenging.

"I've gotten calls and emails from both residents and businesses who are asking to pause or waive the next installment date," Kabat said.

Residents and businesses make four installments in property taxes during a fiscal year — Jan. 31, March 31, May 31 and July 31. But those are state mandated, and can't be adjusted at the local level, Kabat said.

So far, the city has collected about $57 million in property taxes, which is sent out to school districts, the county and the technical college as soon as it's collected. That means it is missing about $30 million, with nothing to fall back on.

But other factors are going to play into the financial dent the city will take because of this pandemic.

"Obviously our economy here in La Crosse, we have so many locally owned businesses. Which makes us special as a community. But obviously when we have a situation like this, it's our local owners who are really feeling the downturn and the closures, and having to just deal with those challenges," Kabat said.

In March, the city announced a small business relief grant that would help pay up to $25,000 in payroll expenses for a business and paused all city-related loan payments for them.

Kabat said more than 100 businesses have contacted the city about the grant, which still needs approval from Common Council on April 9.

The city estimates about 100 small businesses downtown alone have been shut down or limited, but it also recognizes some of its large players as well.

Report: Revenue from sales, room taxes to take huge hit in La Crosse area counties

When it comes to things like the La Crosse Center or the regional airport, Kabat says the city will take a bit hit, even though neither pays the city property taxes.

Kabat said the airport is down about 90% in business, which includes flights, car rentals and concession sales.

Meanwhile, the La Crosse Center has had to cancel several large-scale events — all while pursuing a $42 million expansion that is largely paid for by room taxes. And no one is checking into hotels like they used to.

"Again, it's one of those things that we're so blessed here in La Crosse, that we have a very diverse economy," Kabat said, "and when you have a big portion of those sectors being shut down, it has a ripple effect.

"We probably haven't even seen the worst of it yet."

It's also no secret that the city is fearful of potential flooding this spring, already sitting with a record-high water table. Outlook reports remain positive for now, but any flooding could redistribute any emergency funding away from the virus efforts.

But the city is staying hopeful that it has the right tools to get out of this when the time comes.

About 20% of its $68.76 million operating budget is in reserves, which could be used to pay for emergency grants and extra staffing.

"We do have a very substantial reserve fund for these types of emergencies. We're hopeful that we don't need to tap into it," Kabat said.

On top of that, the city has collected more than half of its property taxes already, and was financially healthy going into this global crisis.

"The city, our operation is doing well. We've really been very disciplined when it comes to our fiscal operations, so for the past seven years we've reduced total city spending," Kabat said.

And same with the state. Going into March, it was looking at an increase of about 6% increase in tax revenue, even with a particularly down month of February, according to a report from the state Department of Revenue.

"I think with the updates to the orders from the president and the governor, we know that our facilities, our programs are going to be shut down realistically through April, and probably until May at the earliest," Kabat said, "So I think it will take probably through the summer to get back to some type of normalcy."

"But I have full confidence that we will get through this."

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