IDEI: innovative, low cost and genuine irrigation systems for small Indian farmers

Friday, 3/19

• On Friday 3/19, we met with the Vice-president and Marketing Chief of IDEI (International development Enterprises India), Mr Niraj Subrat. IDEI is a  not-for-profit organization which helps small Indian farmers to acquire easy, low cost irrigation systems. The meeting was excellent and here under is some more information about the organization.

1. What about IDEI?

• History:  IDE (International Development Enterprises) was initially founded in Denver US as a  not-for-profit organization.
• IDE was working in India since 1991
• IDEI (International development Enterprises India) was created in 2001 as an independent entity. However they cooperate and collaborate with IDE
• Core competencies:
• low cost irrigation system
• small farmers outreach

2. IDEI activities

• IDEI includes an “R&D” center that creates and develops innovative, low cost simple tools; e.g.: manually operated pumps and drip irrigation systems. IDEI labels its products with its own brand “KB” (“Krishak Bandhu”), which means “Farmers’ Friend”. 

• IDEI identifies and negotiates with rural manufacturers the manufacturing and maintenance of its products. These manufacturers are usually located nearby prospective villages.  IDEI creates distribution network for the products. The entire supply chain makes rational profit from manufacturing and sale of products to farmers. By this way, IDEI makes sure that farmers will easily access to its products and will get maintenance support in case they need it. Manufacturers have the obligation to maintain quality standards prescribed by IDEI and sell the products at a low cost with rational profits. However, IDEI guarantees them a market and a sale volume. IDEI provides promotional support to supply chain thereby generating demand for products.  

• IDEI also facilitates provision of consulting services to small farmers in order to make them more competitive and productive by enhancing their knowledge and skills. For instance, IDEI  suggests  small farmers for farming vegetables instead of commodities, like wheat and corn. Vegetable and fruits cultivation is more labour intensive and these farmers usually have surplus labour in family while big farmers have to hire labour.  Indeed, commodity market is already dominated by big modern farmers and small rural farmers have few chances to survive in this market.

3. Achievements and impacts

• Since the beginning of its activities,  IDEI has conquered about 12,000 villages in India.
  

• Farmers who adopted KB products, have seen their income tripled in 3 years (income increased on average of $US 400 per year). Over a million farmers have purchased KB irrigation systems including manually operated pumps and drip. Thanks to the irrigation system, farmers do not rely only on the raining seasons; they sow and harvest three times in the year.

• IDEI has a broader impact on rural areas. Every time, IDEI conquers a village, and the demand in the areas reaches a threshold, it also sets up a manufacturer in that region that will supply for this new demand. IDEI contributes to the global economy of the rural area.  

4. Challenges

• Marketing to farmers takes time: IDEI has reached 12,000 villages in , which is only 2% of the Indian villages. The reason is that farmers are usually suspicious of the performance of the tools they have never seen or used before and it also involve disruptive learning as they shift from surface irrigation to drip irrigation. Especially with dripper irrigation which is a non traditional way of irrigation.  IDEI has opted for an active marketing in order to challenge these suspicions:  sales forces travel to remote areas for presenting KB products. This type of marketing requires a lot of time and is costly, which explains why IDEI has not reached out to more villages.   

• Finding manufacturers in rural areas: that agrees with manufacturing their products and making low margin.
  

• Providing good quality tools: manufacturers might want to make more margins and then provide lower products quality.

• Financing farmers: even if the prices are incredibly low ($11 for a pump), a lot of farmers still can not afford KB products. They do not have access to finance aid or bank loans.
  

• Dealing with other major issues of farmers:  lack of distribution and storage infrastructure do not allow farmers to become more productive, even if they have good KB products

5. What’s next?  

• IDEI aims to reach 350,000 Indian farmers  in four years by 2012.
  
• New product lines: for example, “vegetable nursery” that produces fresh seeds and seedlings at anytime for farmers.
  

· More videos on IDEI social impact    

Comments

[coach sale]

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[irrigation systems]

Great Information ! I also know one site from where you can buy any irrigation equipment. There is lot of discount on every equipment. You must go for it. I am sure you will save your money.

[sujay]

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[Satish Sharma]

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