Quote:"This business needs a lot of investment and lot of knowledge," says Gokul Patnaik, chairman of Global AgriSystem, an agribusiness firm. "The gestation period for your investment to break even is at least 7-8 years."
The 7-8 years is for new enterants, for existing retailers who already have a matured process, unlearning thier existing process and bootstrapping to the indian process will take longer time. Not many business will wait for a 7-8 yrs(looking more like 10 yrs) ROI, they will either collobrate with arthiyas for the short term and try to replace them in the long term if all things go right.
We need to see if the relationship contracts between the arthiyas and the farmers can be replaced with a business contracts between retailers and farmers.