Professional Documents
Culture Documents
Rural Marketing
Rural Marketing
Trader
Broker
ITC-IBD
Agril University, Met Dept, Insurance Co.
VLW (of Dept of Agriculture)
Processor
Money Lender
Farmer
Farmers basically suffered from 2 DS Deep Sea Institutional support Information of farming best practices Information on weather Quality and Information on inputs Devil Middle man Price Discovery Quality and Weightment Handling Loss
Pricing
Previous days closing price used as benchmark price for
next day Mandi prices communicated to Sanchalak through eChoupal portal Sanchalak inspects the sample, assesses quality and gives farmer a conditional quote and a note (name/village/quality tests/approx. quantity/conditional price), if farmer decides to sell to ITC
Inbound Logistics
Farmer proceeds to the nearest ITC procurement hub with
the note Some procurement hubs are ITC factories, others are purely warehouse operations ITCs aim is to have a processing centre within 30-40 km radius of its farmers
conducted on a sample of farmers produce To change farmers attitude and appreciating produce quality, ITC is developing lab tests to reward farmers with reward points for better quality supply
Hub Logistics
Farmer transports his produce to the nearest processing
centre or storage hub ITC incurs the transportation cost The farmer bears the risk of transportation until produce is delivered and the sale is completed
Technological support
Nodal platform catering to commodity blending, agricultural
trading, e-choupal &rural distribution Integrated Business Systems for Direct Agriculture Procurement, Rural Distribution, e-Choupal Management, Exports, Insurance, Aqua Processing & Commodity blending Support for 8 local languages
Source: Seminar on Bottom of the Pyramid and CSR, IIM-K, Sept. 24, 2008
Rural Marketing 4 As
Availability
Sanchalaks maintains continuous inventory and maintains aggregate demand Affordability Buys from farmers directly, weighs electronically Acceptability Provides updated information on weather, financial services, lower transaction cost Awareness Increases awareness with wide product categories encouraging entrepreneurs