Suhrid Prasad Chapagain, the founder of Agri-Direct, has a long history in non-governmental organizations. After stepping away from the field six years ago, he decided to turn agriculture into his future career. The decision led to the creation of Agri-Direct.
Officially registered as a cottage industry four years ago, the company’s primary goal has been to market agricultural products and connect local farmers with the global market.
Reflecting on his journey, Suhrid feels confident in his success in promoting the country’s local products.
The birth of Agri-Direct: Addressing farmers’ struggles
Suhrid’s decision to start Agri-Direct was deeply influenced by his extensive experience and travel working with various non-governmental organizations. Having studied engineering and an MBA, he was ready for a new challenge. His travels across Nepal opened his eyes to the struggles of farmers, which sparked the idea for Agri-Direct.
“I worked for both local and international NGOs for 15 years,” Suhrid shares. “When I went to India for my MBA, there was a course called rural entrepreneurship, which made me think about how we could develop the country’s rural areas.”
During his work, Suhrid visited 74 out of Nepal’s 77 districts. He observed that the issue of farmers struggling to find markets for their produce was consistent across the country. Lack of market access and unfair prices forced farmers to throw away their goods. They would tell him, “You only give advice, but you should sell it and show it to us.”
Suhrid recalls, “Once, during a conversation on selling cherry tomatoes, a local farmer told me to sell them if I could. That’s when I realized the deep disrespect for farmers’ produce and knew something needed to change.”
This realization became the foundation for — Agri-Direct.
Suhrid’s vision was to create a solution that connected farmers to the market, helping them reach global buyers while improving their livelihoods.
Four phases of Agri-Direct’s approach
Although Agri-Direct officially started four years ago, the company has been working in four phases since its inception:
Marketing and sales
The first phase involves bringing farmers’ products to Kathmandu and marketing them through social media and other platforms. Produce like the Junar (Malta oranges) from Ramechhap and Sindhuli, which were once sold for just NRs five per kg, are now fetching rupees 40 to 50, giving farmers a much-needed fair price, claims Suhrid.
The company is also focusing on other produce such as Kiwi, Pepper, Turmeric, Akbare Chilli, and Ginger, which are sourced directly from farmers and marketed to consumers.
Value addition
The second phase focuses on adding value to these products. If farmers bring in a large quantity of produce that cannot be sold immediately, Agri-Direct processes the products into new forms. For example, turmeric is dried and powdered, and other spices like ginger and pepper are also processed for sale.
Agri-Direct registered as a cottage industry to process these products into market-ready goods. Suhrid emphasizes the transparency and fair prices this approach provides for farmers.
A notable step in this phase was Agri-Direct’s work with Marigold flowers during the last Tihar festival. The company researched and developed perfumes and incense from discarded Marigolds, showcasing the potential of overlooked agricultural waste.
So far, Agri-Direct has worked with more than 200 farmers on turmeric. Similarly, Suhrid says that they have worked with 20 farmers in honey, 50 in Junar, 12 in Pepper, and 15 to 20 in Kiwi. He says, “We are working on whatever agricultural produce is available based on the season. In that case, the number of farmers connected is varying.”
Analyzing the scientific aspects of natural products
In the third phase, Agri-Direct integrates scientific research with agricultural produce into its work. “The third step is to analyze the scientific aspects of agricultural and natural products and bring them to the market as tangible products,” says Suhrid. “Our main mantra is to validate natural products through science.”
As a result, Agri-Direct has begun analyzing the chemical properties of various produce like curcumin in turmeric or the unique compounds found in Chiraito, a perennial herb native to Nepal and grading them accordingly.
“There’s a lot of science behind our agricultural products and understanding them, for instance, the extent of curcumin in turmeric affects price,” says Suhrid, adding that higher the curcumin, higher the price. “Similarly, we are also working on Akbare. While many people claim it’s spicier, the real reason behind that heat is the level of Scoville Heat Units in the chilli. It’s the concentration of these units that truly determines its spiciness.”
In addition to agricultural products, he is also working with natural products like honey and shilajit. He is classifying these products based on quality and introducing them to the global market.
While working with honey, Agri-Direct is not only offering honey from domesticated bees but also sourcing honey from indigenous bees.
“Domesticated bees produce honey based on the season,” he explains. “For example, during the mustard season, they produce mustard honey. For honey from indigenous (wild) bees, we work with farmers from southern Lalitpur and the upper reaches of Chere.”
He notes that the price of honey from domesticated and indigenous bees varies due to their distinct characteristics.
Additionally, Suhrid emphasizes that they are certifying all the products they bring to market. Agri-Direct prioritizes food safety over organic certification.
“For instance, ‘minimum pesticide residue’ can be used as an indicator,” he says. “We focus on the levels of chemical residue in each product.”
“There’s a global conversation about what’s safe to consume,” he continues. “Our primary concern is the quality of the product when it reaches the market and the chemicals that have been used in its production. We conduct thorough studies before bringing any product to market.”
Supermarket availability
The fourth phase is focused on bringing fully processed products to supermarkets, which is presently in the development stage but Suhrid envisions a future where Agri-Direct’s products are widely available on supermarket shelves, branded and certified for quality.
Started with Rs five lakh, turnover reached eight million last fiscal year
Agri-Direct began with an investment of just five lakh rupees, but thanks to trust built with farmers and a focus on quality, the company’s turnover reached 8 million rupees in the last fiscal year. Despite the modest beginning, Suhrid believes the company’s growth is a result of hard work and persistence.
“We operate on trust,” Suhrid explains. “Farmers send goods worth up to six million rupees to us because they trust us, and we now operate on a 15-day circulation.”
Agri-Direct’s business model is flexible, with no fixed number of employees. The team consists of experts from various fields, including food, agriculture, Ayurveda, and chemical engineering, who contribute their time as needed.
Suhrid’s dedication to the business is evident. He personally handles marketing, attends stalls, and ensures that Agri-Direct’s products reach consumers.
He firmly believes in the power of persistence: “If you work on the same project for a thousand days, you will definitely see the results.”
Yubaraj Bhattarai has a strong interest in both journalism and literature. He has gained experience working with various media outlets, including Annapurna Post, Nepal Live and Clickmandu. Yubaraj graduated with a degree in Journalism from RR Campus, Tribhuvan University.
