Why private sector investments is important to develop women-led agricultural businesses

In middle and low-income countries like India, Bangladesh, Brazil, Vietnam, etc., agriculture remains the most important source of employment, especially for women. Women account for a significant proportion of the agribusiness workforce throughout the value chain, carrying out functions that are critical to business performance.

Moreover, agribusinesses remain central to food security, job creation and inclusive growth via better jobs for women, which influences overall social development outcomes. As per an ILO Report, one-fourth of the world’s economically active women, were engaged in agriculture, proving to be crucial towards reducing poverty and attaining self-reliance.

Women often perform primary roles on an agricultural land in the form of livestock rearing, and labour-intensive jobs such as weeding and picking. Since livestock rearing is pivotal to meet household needs, 70 per cent of the work is done by women including watering, milking and cleaning of animals and their sheds. However, despite the benefits that women in agriculture reap for economic growth, societal challenges continue to plague their journeys towards emancipation. Limited or no security in case of death of a family member, no landholdings, discriminatory inheritance laws and male-specific agriculture development programs, hinder women from truly achieving financial independence.

Managing dual responsibilities at the agricultural landholding as well as home, is another challenge for women. A significant share of agricultural employment is informal and often unpaid with a high subsistence of agriculture. Unequal wage employment, under-representation, lack of leadership opportunities and high vulnerability to domestic violence pose huge challenges for women. Along with this, lack of access to markets and restricted mobility makes it increasingly difficult to achieve equality in the agriculture sector.

While the role of women is documented, scant attention has been given to large-scale investment and its impact on gender equality and empowerment in developing countries. Nor is any importance laid on the means to enhance the potential for women through such investments with very little research being done on agriculture investors and their integration with gender equality strategies. It is widely known that investments in agriculture are required to create better processes, practices and policies that enable women to achieve their potential. Correlating to this, investment in agriculture in developing countries has sharply increased with a key focus on food security for the achievement of Sustainable Development Goals.

UNCTAD estimated that the annual global investment in food security in developing countries stands at $220 billion per year. However, the total investment required is $480 billion annually, posing a gap of $260 billion. Since these investments have progressive effects on the sector at large, they also enable welfare of women in agricultural services, while ensuring employment generation and other positive externalities with it.

Thus, there is a dire need for large scale investments from the government, corporates and large-scale firms. The government has introduced programmes like the Deendayal Antyodaya Yojana, National Rural Livelihood Mission and the Mahila Kisan Sashaktikaran Pariyojana to bring women together for training in areas of agriculture, business, entrepreneurship, and skill development. However, there is also a need for the government to shift their focus on and invest in programmes/ soft skills that can promote equal rights to various aspects such as complex subjects of land ownership and inheritance, but also simpler areas such as signing contracts, applying for loans, gaining financial skills etc. In tandem with this, entrepreneurship as a subject also needs attention especially if the long-term goal is to build capacities of women who can set up a business and gain access to marketplace and resources as well.

Increased participation by private sector entities in agriculture via investing in small-scale farmers, especially women, is a catalyst in ensuring job creation, innovation, and inclusive growth. The start-up ecosystem has been working towards ensuring women’s participation in agriculture. Wingreen India employs over 400 female farmers in Haryana who are empowered to become financially independent through tailored measures put in place for easing access to markets and financial resources.

Similarly, Global Self-Help Group employs over 300 women farmers in cultivating a variety of vegetables and producing juices. The organisation also trains women through classes at the Punjab Agricultural University. Other for-profit organisations such as Kisankonnect and Country Delight have employed hundreds of women farmers across the country and also utilised the Farm-to-Table model, which is simply buying fresh produce from farmers with almost no involvement of middlemen or mandis at their doorstep.

The corporate sector can also play a role in adding value to the ecosystem through awareness generation campaigns on key government flagship programmes and land rights supporting women farmers. A significant investment on trainings of women in handling money can enhance their capabilities in financial decision making and bargaining power.

In conclusion, gender responsive solutions across agricultural value chains from farm to retail are essential to boost women’s economic empowerment. Private sector initiatives via fair trade, CSR, ethical labelling etc., can also play an active role to close the gender inequality gaps in communities. Private sector support in efforts of aggregation of Farmer Producer Organisations (FPOs), which is collectivising women in agribusiness value chain, can be an impactful mechanism to enable access to market linkages. This would increase the participation of women in the private sector and the organised market to bridge the missing link today.

Atul Gandhi is COO, EdelGive Foundation and Mukesh Gupta, Head of Agri Livelihoods division at Barefoot College International. Views are personal.

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