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Research Article | Volume 2 Issue 2 (July-Dec, 2022) | Pages 1 - 6
Farmers Empowerment Strategy Through Sustainable Rural Agribusiness Development Program (Puap) In Kepuh Anyar Village, Mojoanyar District, Mojokerto Regency (Case Study: Rukun Makmur Gapoktan)
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 ,
1
Master of Agribusiness Study Program, Faculty of Agriculture, UPN Veterans East Java, Jl. Rungkut Madya No. 1 Gunung Anyar, Gunung Anyar District, Surabaya East Java City, 60294, Indonesia
Under a Creative Commons license
Open Access
Received
July 11, 2022
Revised
Aug. 4, 2022
Accepted
Sept. 12, 2022
Published
Oct. 30, 2022
Abstract

Farmers consider the funds to be grants from the Government that do not need to be repaid. Some farmers use PUAP funds as a reserve for other businesses outside of agriculture for household non-food consumption, so that the implementation of the PUAP program in each farmer group continues and some does not. This study aims to analyze internal and external factors that become strengths, weaknesses, threats and opportunities for the sustainability of the PUAP program and formulate strategies for community empowerment through the implementation of the sustainability of the PUAP program in Mojokerto Regency. The total sample of farmers used in this study was 20 sample farmers with 10 sample farmers receiving PUAP with current payments and 10 sample farmers with non-performing payments. The sample used in this study were 7 key informants. The analysis in this study uses descriptive analysis and SWOT analysis. The results of the research show that the strategy for the sustainability of the Rural Agribusiness Development Program (PUAP) is an aggressive strategy in quadrant I with the SO strategy, namely developing farming businesses by increasing the types of commodities cultivated and expanding markets and developing and strengthening existing marketing networks.

Keywords
PRELIMINARY

The development of the agricultural sector to date has been widely carried out in Indonesia. Apart from being one of the efforts to increase farmers' income, the agricultural sector is also one of the sectors driving national development. However, currently what is happening is the emergence of agricultural problems as stated in the concept of National Development [1].

 

Farmer empowerment will have a broad impact on national development, because more than 60% of Indonesia's population lives from the agricultural sector, according to Iskandar, almost 80% of Indonesia's population lives in rural areas. Thus the empowerment of farmers is very important to do because it touches the majority of the Indonesian population. And indirectly this will improve the economy of the Indonesian people, especially farmers [2].

 

In  accordance  with  the  Regulation  of  the  Minister of Agriculture (PERMENTAN) Number 16/ Permentan/OT.140/2/2015 has set the goal of establishing   the   PUAP   program   which   is   one   of the   important   programs   that   provide   business capital   assistance   facilities   for   member   farmers, both    owner    farmers,    sharecroppers,    laborers farmers  and  farm  households.  PUAP  funds,  better known as Community Direct Assistance (BLM) are channeled   through   the   Association   of   Farmers Groups   (Gapoktan)   as   farmer   institutions   that function as PUAP implementers. The funding assistance is used and utilized in a revolving savings and loan format   to   finance   productive   cultivation  activities (on-farm) and non-cultivating activities (off-farm), which are related to agriculture (Ministry of Agriculture, 2016).

 

The high potential of the agricultural sector in Mojokerto Regency is very supportive for the development of the agribusiness sector. The Mojokerto Regency Government chose the Mojoanyar sub-district, namely Gapoktan Rukun Makmur as one of the recipients of the PUAP BLM in order to develop the agribusiness sector which became the potential of the region. The Rukun Makmur Gapoktan is still active in implementing the PUAP program, although the management of the PUAP program continues and some does not. The Central Government provides PUAP funding assistance to Gapoktan in the amount of Rp. 100,000,000 as capital for the Gapoktan micro business unit (savings and loans) which is used for business capital for Gapoktan members, however, the PUAP funding assistance provided by the Government faces obstacles/obstacles in its implementation, namely the low awareness of farming community (Gapoktan members) to pay their dependents. They are often late (be absent) in paying them, the management is also reluctant if they are too pushy on member farmers to pay their loans immediately. Farmers consider the funds to be grants from the Government that do not need to be repaid. Some farmers use PUAP funds as a reserve for other businesses outside of agriculture for household non-food consumption, so that the implementation of the PUAP program in each farmer group continues and some does not. Weak institutional human resources of farmers (Gapoktan, Poktan) also affect the management of the implementation of the development of the PUAP program. Weak supervision by the companion team in the implementation of the PUAP program.

 

These Human Resources cannot stand alone but need to be directed through training and technology transfer. The more effective a Gapoktan is in managing its Human Resources, the sharper the goal of forming the group will be. Improving the quality of Human Resources will directly or indirectly affect the quality of the Gapoktan institutional organization. Organizations that can be said to be independent and well-established can be seen from the completeness of the elements of the organization. Independence can be seen through the presence or absence of an organizational structure, whether the system is running or not, internal relationships within the organization and the funding obtained by the organization. While establishment is related to how the organization can survive in running its organizational wheels and if in this study it is a Gapoktan then how is this Gapoktan able to develop farming in its group. This study aims to analyze internal and external factors that are strengths, weaknesses, threats and opportunities for the sustainability of the PUAP program and formulate strategies for community empowerment through the implementation of the sustainability of the PUAP program in Mojokerto Regency.

RESEARCH METHODS

The research location was chosen deliberately in Kepuh Anyar Village, Mojoanyar District, Mojoketo Regency. The determination of the research location in Kepuh Anyar Village, Mojoanyar District was chosen with several considerations as the research location. Mojoanyar District was chosen as the research location based on information from the Field Agricultural Extension Officer (PPL) of Mojokerto Regency which stated that the PUAP program in Mojoanyar District was running smoothly in all villages receiving PUAP program funds. Meanwhile, in particular, Kepuh Anyar Village was chosen to be the research location on the basis of village potential such as agribusiness that deserves to be developed through PUAP funds with the formulation of the right strategy for the sustainability of the program in the future. The total sample of farmers used in this study was 20 sample farmers with 10 sample farmers receiving PUAP with current payments and 10 sample farmers with non-performing payments. The sample used in this study were 7 key informants. The key informants taken are related agencies in the management of the PUAP program such as 2 people who are Micro Finance Institutions (LKM), 1 chairman and 2 Daily Management Board members and 2 members of the Rukun Makmur Gapoktan and 2 people who are Field Agricultural Extension Officers (PPL) companion of the Rukun Makmur Gapoktan in the PUAP program. This key informant for managing the PUAP program was chosen because through these people they could obtain more complete and detailed information related to the things being studied.

 

The descriptive analysis technique in this study was carried out by collecting data from various informants and then compiled and analyzed to explain in the following stages:

 

  • Data reduction is the process of selecting, simplifying, abstracting and converting rough data that emerges from written notes produced by interviews while in the field

  • Data presentation is the compilation of all information and data obtained into a series of words or tables and matrices that are easy to read into a report

  • Data verification is the last step in descriptive data analysis

 

Based on the data that has been reduced and presented, the researcher makes conclusions that are supported by strong evidence at the data collection stage. Conclusions are answers to the formulation of problems and questions that have been expressed by researchers since the beginning. The method of formulating or formulating a sustainability strategy for the Rural Agribusiness Development (PUAP) program at the Rukun Makmur Gapoktan, Kepuhayar Village, Mojoanyar District, Mojokerto Regency. carried out through the following stages:

 

  • The Internal Factor Evaluation Matrix (IFE-Internal Factor Evaluation), namely the Internal Factor Evaluation (IFE) is used to determine the institution's internal factors related to the strengths and weaknesses that are considered important

  • External Factor Evaluation Matrix (EFE-External Factor Evaluation), namely the evaluation of External Factors (EFE) is carried out to evaluate the institution's external factors such as opportunities and threats. External factors related to PPL, government support and competing institutions that provide capital loan assistance

  • IE Matrix Analysis (Internal-External) i.e., the IE matrix is arranged based on the total score of IFE and EFE. Where on the horizontal axis is the total IFE score and on the vertical axis is the total EFE score. The point of intersection between the two axes will indicate the strategy that is considered appropriate for the organization to implement

 

SWOT analysis is a tool to maximize the role of positive factors, minimize weaknesses in the organization and reduce the impact of threats that arise (Table 1). According to David [3] the steps in compiling the SWOT matrix are as follows:

 

  • List of external opportunities

  • List of external threats

  • List of internal strengths

  • List of internal weaknesses

  • Match internal strengths with external opportunities and record results SO Strategy.

  • Match internal strengths with external opportunities and record the results of the WO Strategy.

  • Match internal strengths with external threats and record ST Strategy results.

  • Match internal weaknesses with external threats and record WT results

 

Table 1. SWOT Matrix

External Factors

Internal factors

Strength (S)

Weakness (W)

 

Strength List

List of Weaknesses

Opportunity (O)

SO Strategy

WO Strategy

List of Opportunities

Using Strength to take advantage of opportunities

Overcoming weaknesses by taking advantage of opportunities

Threat (T)

ST strategy

WT Strategy

Threat List

Using Strength to avoid threats

Minimize weaknesses and avoid threats

RESULTS

Return Status of Respondents for Rural Agribusiness Development Program (PUAP)

In this study, there were 10 respondents who were members of the Rukun Makmur Gapoktan who made current payments and 10 respondents who were members of the Rukun Makmur Gapoktan who made non-current payments or were stuck in the Rural Agribusiness Development  Program (PUAP)   in   Kepuh   Anyar   Village, Mojoanyar District, Mojokerto Regency. Each respondent has a reason or reasons for making payments (Table 2).

 

Table 2: Comparison of Respondents' Refund Status

Fluent

Not Smooth/Jammed

Simplify and increase the addition of business capital

The income received is not sufficient to make PUAP payments

PUAP funds are allocated for savings and loan activities for production or marketing activities and other business

Experiencing land disasters (natural disasters, pest and disease outbreaks or crop failure)

PUAP funds are also used to provide production inputs such as fertilizers, seeds and medicines

Can't pay because of illness so can't work and no income

Loan amount as needed

Moving house

There are advantages of increasing the number of loans

Assume that PUAP funds are grants

Easy and varied ways to return

Source: Data analyzed, 2022

 

According to respondents who have current payments, this makes it easier and increases the addition of business capital, the Government appoints Gapoktan as one of the agricultural institutions in regulating PUAP funds so that these funds can be useful for their members. The total amount of PUAP funds received by each Gapoktan is Rp. 100,000,000,-. Most of these funds are allocated in savings and loan activities for production purposes or other business and product marketing activities. In addition, PUAP funds are also used to provide production inputs such as fertilizers, seeds and medicines. The maximum loan amount varies, according to the needs of farmers. The range of PUAP loan funds is Rp. 500,000-Rp. 2,500,000 for the first time loan. If the farmers' loan repayments are smooth, the next loan is increased to a range of Rp. 1,000,000 to Rp. 3,000,000. How to repay the loan can be done weekly or every harvest. For members who experience disasters (natural disasters, pest and disease outbreaks or crop failure) the loan remains the responsibility of the farmer and is not subject to fees. If the members make very smooth payments, then the Gapoktan through LKMA will provide rewards in the form of increasing the loan amount or prizes. This is a reference for Gapoktan members to make regular and smooth loan payments.

 

In the case of non-current or non-performing payments, if there is a delay in payment of installments that are due for 3 consecutive months, then the head of the farmer group as guarantor is obliged to make direct collections to the member concerned and if the person concerned still does not pay then to there will be no further loans. According to respondents, the non-current or non-performing payments for PUAP loans have various reasons, namely the income received is not sufficient to make PUAP payments, there are also those who experience disasters (natural disasters, pest and disease outbreaks or crop failure) or other things that causing the need to spend more funds so that they cannot pay the PUAP loan. In addition, there are also those who cannot pay because of illness, moving house and some even argue that the PUAP funds are grants. So this causes Gapoktan members who can't pay or are in default no longer get PUAP loans.

 

Sustainability Strategy of Rural Agribusiness Development Program (PUAP) in Mojokerto Regency

The formulation of strategic alternatives consists of three stages, namely: (1) Identification of internal and external factors obtained through interviews, (2) Merging stage and (3) The decision-making stage. The method used in formulating the strategy is a SWOT (Strength, Weakness, Opportunity, Threat) analysis in the Rural Agribusiness Development program in Mojokerto Regency.

 

The Sustainability Strategy of the Rural Agribusiness Development Program (PUAP) to achieve the right goals, members of the Rukun Makmur Gapoktan, Kepunyar Village, Mojoanyar District, Mojokerto Regency need to identify internal factors (strengths and weaknesses) and external factors (opportunities and threats) that influence for the Rural Agribusiness Development Program (PUAP) as follows in Table 3.

 

Table 3: Strengths, Weaknesses, Opportunities and Threats of the Sustainability Strategy of the Rural Agribusiness Development Program (PUAP) in Kepuhanayar Village, Mojoanyar District, Sidoarjo Regency

Strategic Factors

Information

Internal factors

Strength

  • Communication between Gapoktan members

  • Gapoktan savings and loan unit has been formed

  • Gapoktan member skills are adequate

  • Gapoktan institutions legalized by the government

  • Big Gapoktan business development potential

Weakness

  • Gapoktan members' education level is low

  • Awareness of management members to pay

  • Gapoktan does not yet have adequate assets or facilities

  • Limited land ownership of Gapoktan members

  • Limited PUAP funds

External Factors

Opportunity

  • Central and local government funding support

  • Intensive guidance from field officers to Gapoktan members

  • CSR support from private companies

  • Road and market infrastructure available

  • Many private parties are interested in collaborating with Gapoktan members

Threat

  • Farming depends on climate

  • The flood of products from imports

  • HPP policy is not in favor of farmers

  • Easy loans from loan sharks and debt bondage

  • Government credit schemes are difficult to access

Source: Data analyzed, 2022

 

After knowing the internal and external factors in the Rural Agribusiness Development Program (PUAP), the next stage of data collection, the model used is the Internal Strategy Factor Matrix (IFAS) and the External Factor Matrix (EFAS). Internal factors (IFAS) have 5 indicators of strength (strength) and 5 indicators of weakness (weakness), external factors (EFAS) have 5 indicators of opportunity (opportunity) and 5 indicators of threat (threats) (Table 4).

 

Table 4: Development of an Evaluation Matrix for the Strategic Factors of the Rural Agribusiness Development Program (PUAP)

Internal Strategy Factors

Rating

Weight

Score

Strength

Communication between Gapoktan members

Gapoktan savings and loan unit has been formed

Gapoktan member skills are adequate

Gapoktan institutions legalized by the government

Big Gapoktan business development potential

3

3

3

3

3

0.10

0.10

0.12

0.09

0.08

0.34

0.34

0.44

0.26

0.21

Total Strength

16

0.5

1.60

Weaknesses

Gapoktan members' education level is low

Awareness of management members to pay

Gapoktan does not yet have adequate assets or facilities

Limited land ownership of Gapoktan members

Limited PUAP funds

3

3

4

3

3

0.09

0.10

0.10

0.11

0.11

0.26

0.29

0.29

0.37

0.37

Total Weakness

16

0.5

1.58

Difference in Strengths-Weaknesses

 

 

0.02

External Strategic Factors

Rating

Weight

Score

Opportunities

Central and local government funding support

Intensive guidance from field officers to Gapoktan members

CSR support from private companies

Road and market infrastructure available

Many private parties are interested in collaborating with Gapoktan members

3

4

3

4

4

0.10

0.11

0.09

0.11

0.11

0.32

0.38

0.29

0.38

0.41

Total Opportunity

17

0.51

1.78

Treaths (Threats)

Farming depends on climate

The flood of products from imports

HPP policy is not in favor of farmers

Easy loans from loan sharks and debt bondage

Government credit schemes are difficult to access

3

3

4

3

2

0.10

0.10

0.11

0.10

0.07

0.35

0.35

0.41

0.35

0.17

Total Threat

16

0.49

1.63

Difference Opportunity+Threat

 

 

0.15

Source: Data analyzed, 2022

 

After calculating the weight of each internal factor and external factor, then it is analyzed using a position matrix to see the position of the sustainability strategy of the Rural Agribusiness Development Program (PUAP). Based on table 5.11, the X value is 0.2 (X>0) and the Y value is 0.15 (Y>0). The position of IFS and EFS coordinates can be seen in Figure 5.1. The matrix of the sustainability strategy of the Rural Agribusiness Development Program (PUAP) in Figure 5.3 shows the X>0 value of 0.2 and the Y>0 value of 0.15. This means that the position of the Rural Agribusiness Development Program (PUAP) sustainability strategy is in quadrant I (second), namely SO. From the results of the internal - external matrix obtained from the total value of the weighting score on the sustainability strategy of the Rural Agribusiness Development Program (PUAP) an internal factor of 0.2 is obtained, which means this value is the difference between strengths and weaknesses, where strengths are greater than weaknesses. . And for external factors, it is worth 0.15 which means this value is the difference between opportunities and threats, where the value of opportunities is greater than threats. The strategy that must be applied in this condition is to support an aggressive growth policy (growth oriented strategy) (Table 5).

 

Table 5: SWOT Matrix of Rural Agribusiness Development Program Strategy (PUAP)

EFAS

 

Strengths

Weaknesses

  • Communication between incentive gapoktan members

  • Savings and loan unit has been formed

  • Skills are adequate

  • Institutions legalized by the government

  • Big Gapoktan business development potential

  • Gapoktan members' education level is low

  • management is not optimal

  • Gapoktan does not yet have adequate assets or facilities

  • Limited land ownership of Gapoktan members

  • Gapoktan capital is limited so that the distribution of PUAP funds is not smooth

IFAS

Opportunities

S-O . Strategy

W-O Strategi Strategy

  • Central and regional government funding support

  • Intensive guidance from field officers to Gapoktan members

  • CSR support from private companies

  • Road and market infrastructure available

  • Many private parties are interested in collaborating with Gapoktan members

  • Developing farming business by increasing the types of commodities cultivated and expanding the SO1 market (S1, S3, S4, S5, O1, O2, O4, O5)

  • Development and strengthening of existing marketing network SO2 (S5, S6, O1, O5)

  • Improving the professionalism of Gapoktan members WO1 (W1, W2, O1, O2)

  • Improve Gapoktan's ability in financial management by partnering with the private sector WO2 (W3, W4, O3)

Threats

S-T Strategi Strategy

W-T Strategi Strategy

  • Farming depends on the climate

  • The flood of imported products

  • HPP policy is not in favor of farmers

  • Easy loans from loan sharks from bonded

  • Government credit schemes are difficult to access

  • Improving the quality and quantity of crop yields in order to survive ST1 imported products (S3, T2)

  • Improving the work of savings and loan business units to improve the welfare of members of Gapoktan ST2 (S2, T5)

  • Increasing and facilitating the capital credit scheme of Gapoktan members from the government WT1 (W5, T5)

  • Increase assets or adequate facilities so that they can compete with imported products and can determine the cost of goods WT2 (W3, T2, T3)

Source: Data analyzed, 2022

 

Some of the programs that the writer can formulate based on the results of the evaluation of the implementation of the programs that have been implemented and the results of the evaluation using SWOT analysis are as follows:

 

  • Developing farming by increasing the types of commodities cultivated and expanding the market by conducting Product Diversification and Marketing Expansion Programs. Based on the SO strategy analysis, a business development strategy by adding types of commodities and expanding the market needs to be carried out because of the Gapoktan's internal strengths, namely the skills of members, market potential and a broad Gapoktan network

  • Development and strengthening of existing marketing networks by conducting a Marketing Institutional Strengthening Program. The strategy for developing and strengthening marketing networks as an SO strategy arises because of Gapoktan's internal strengths in terms of the available market development potential and extensive network, as well as opportunities for financial support and cooperation assistance from various parties

  • PUAP Gapoktan Guidance and Training Program. Every business development strategy of a business, in the end, will again rely on the ability and capacity of the human resources who handle it. This is what is realized from SO's strategy to increase the professionalism of Gapoktan members. Based on the analysis in the field, members of the PUAP Gapoktan have low education and are less able to manage finances well

  • Improving the ability of Gapoktan in financial management by partnering with the private sector by conducting the Gapoktan and Private Partnership Program. Still based on SO strategy analysis, Gapoktan's weaknesses in financial management can be resolved by taking advantage of the concerns of the private sector around the PUAP Gapoktan location

  • Every private company is generally required to show commitment and concern for the surrounding community through CSR (Corporate Social Responsibility) programs. This is an opportunity for Gapoktan to increase the internal capacity of its members by utilizing these CSR programs. The government can be a facilitator to link the right and strong partnership pattern between the private sector and the PUAP Gapoktan so that the CSR programs carried out are right on target and useful in solving problems within the Gapoktan internally

  • Improving the quality and quantity of crop yields in order to survive against imported products by conducting Post-Harvest Processing and Productivity Improvement Programs. The PUAP Gapoktan which has internal strength in the form of member skills, based on SO strategy analysis, needs to continue to improve the quality and quantity of crops and other products produced, so that they can compete with imported products. To improve product quality, the government must continue to provide tools and machines that can improve product quality and durability, such as cold storage, rice milling units and so on

  • Improving the work of the savings and loan business unit to improve the welfare of Gapoktan members by conducting the Microfinance Institution Development Program. The SO analysis shows that there are internal Gapoktan strengths that already have savings and loan businesses but on the other hand there is a threat from the existence of moneylenders who are ready to provide loan funds to farmers with a system that tends to harm farmers in the long term

  • Giving sanction/punishment for Gapoktan management who misappropriated PUAP funds by conducting the PUAP Gapoktan Accountability Improvement Program. The results of the analysis of the weaknesses and threats of the PUAP Gapoktan show that there are internal weaknesses in financial management that are not transparent from some of the PUAP Gapoktan administrators. This is exacerbated by the intervention of NGOs that may seek to gain unfair advantage. For this reason, the government needs to increase development activities and investigative audits to ensure that the management of PUAP funds is carried out in an orderly and law-abiding manner

CONCLUSION

There are internal factors that influence the Rural Agribusiness Development program, including 5 strength factors including: (1) Intensive communication between Gapoktan members, (2) A savings and loan unit has been established, (3) Adequate  skills  of  Gapoktan  members, (4) Gapoktan institutions are legalized by the government, (5) Gapoktan business development potential is large, 5 weakness factors include: (1) Low level of education of members; (2) Financial management is not optimal; (3) GAPOKTAN does not yet have adequate assets or facilities; (4) Limited members' land ownership; (5) Gapoktan capital is limited. External factors that are considered to have an effect on the Rural Agribusiness Development program which consists of 5 Opportunity factors include: (1) Central and regional government funding support, (2) Intensive guidance from field officers to Gapoktan members, (3) CSR support from private companies , (4) Road infrastructure and markets are available, (5) Many private parties are interested in collaborating with Gapoktan and 5 threat factors include: (1) Farming depends on climate, (2) Flooding of imported agricultural products, (3) Access and number of facilities limited production (fertilizers/pesticides), (4) HPP policies are not in favor of farmers, (5) Government credit schemes are difficult to access.

 

The strategy for the sustainability of the Rural Agribusiness Development Program (PUAP) is an aggressive strategy in quadrant I with the SO strategy, namely Developing farming businesses by increasing the types of commodities cultivated and expanding markets and developing and strengthening existing marketing networks.

REFERENCE
  1. Hidayatullah A.I.M. and C. Aminoto. “Faktor Eksternal Tingkat Stres Mahasiswa Keperawatan dalam Adaptasi Proses Pembelajaran.” University Research Colloquium, 2018, pp. 172–181.

  2. Sekino. Membangun Pertanian dengan Pemberdayaan Masyarakat Tani. Yogyakarta: Pustaka Baru Press, 2013.

  3. David, Fred R. Manajemen Strategi. 2nd ed., Jakarta: Salemba Empat, 2012.

  4. Kementerian Pertanian. Statistik Konsumsi Pangan Tahun 2017. Pusat Penelitian dan Pengembangan Tanaman Pangan, Jakarta, 2017.

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