The business culture among the rural population in the Darbhanga district of Bihar is very traditional. It has a literacy rate of 57%, and the majority of people are engaged in traditional livelihoods like agriculture. Agriculture depends on monsoons, and traditional crops are rice, wheat, and pulses. The predominant businesses are local retail shops, tailoring units, carpentry workshops, and small manufacturing ventures. These businesses are meant to cater to local needs only and contribute to the local economy as well.
Based on the above-mentioned criteria, a rice mill appears to be a handsome choice for a start-up in a rural area. Understanding the demographic wealth of the rural area, Ram Vinod Choudhary decided to set up a rice mill in his local area in 2016. With his vision and mission, he has been able to become one of the most successful entrepreneurs in rural Bihar.
In an interview with InsightfulTake, the director of the Choudhary Rice Mill, Ram Vinod Choudhary, discusses the challenges, opportunities, and many other related issues in great detail.
Is it fair to say that business does not naturally come to the minds of rural people?
Absolutely, business is the last resort for livelihoods in rural Bihar. The literacy percentage is quite low, and people are not well aware of career options. The first priority of locals is to get a job. The majority works in an unorganized sector. People are grounded in poverty. Poverty can’t let you think independently. Even, Darbhanga district gets funds from the Backward Regions Grant Fund Programme (BRGF). Therefore, business does not become the means of livelihood.
Then, how did it come to your mind because you have grown up here and are living here as well?
My personal story is a little bit different. My grandfather knew the importance of business. No one is employed in our family. Everyone is engaged in some sort of business. Hence, business comes to me naturally. After graduation, I started trying my hands on different ventures. I remained quite successful in doing so. Every venture I took up, gave me confidence to think bigger, and this is the reason I am here, giving employment to nearly 50 people in my rice mill. Although it appears not to be a large number in terms of providing employment, considering location and demography, it gives me tremendous confidence that I run at least 50 families.
How do you contribute to the local economy in Kusheshwar Asthan?
Choudhary Rice Mill is providing employment opportunities to the locals. It stops the migration of people to get employment in other cities and states. Moreover, our operations have boosted the income levels of local farmers. Transport, packaging, and many other associated businesses get support from our operations. Slowly and gradually, we are helping each other to build an ecosystem of businesses.
What are the key challenges faced by businesses like Choudhary Rice Mill in rural Bihar, and how can these be addressed?
There are many key challenges faced by businesses in rural areas of Bihar, such as inadequate infrastructure, a lack of investment opportunities, and a lack of a lack of power supply. These issues can be addressed by government schemes very easily, which can improve operational efficiency. However, skill development programs to run rural industries are of paramount importance because they can boost the productivity and efficiency of operations.
Are there any government initiatives or schemes that have benefited Choudhary Rice Mill or similar businesses in the region?
Yes, there are some schemes like the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), and the Kisan Yantra Subsidy Scheme Bihar 2024 that have played a crucial role. These schemes have contributed to enhancing the infrastructural development in rural areas, which has helped to increase productivity. Also, these initiatives taken by the government will surely improve our quality of production to a great extent.
Do you use digital technologies and e-commerce to expand your market reach beyond Kusheshwar Asthan?
Presently, we are not using digital technologies or e-commerce to expand our market because our products are purchased by Bihar State Food and Civil Supplies Corporation through PACS. Hereafter, the Food Corporation of India procures from there. Of course! we understand the power of digital technologies, which can expand our market reach a thousand times, but we work in collaboration with the state government. We do not deal with consumers; therefore, digital technologies are not used precisely to enhance business opportunities.