NEED NOTICED IN SOCIETY –
Farmers all over India face cash Crunch due to existence of Middle men in the supply chain .
AFFECT –
Farmers cannot meet their basic daily needs , hence survival is a big question mark that needs to be addressed .
Inflation is increasing at 8- 10 % .
But cash inflow of farmers is actually increasing at a NEGETIVE rate .
EFFORTS MADE TILL DATE BY OTHER ENTERPRISES –
To remove middle men , and take their produce directly to the market , so as to fetch them a better price for their produce .
RESULT – MINIMAL AFFECT
MY CONCEPT –
REDUCE THIER OPERATIONAL COSTS
AFFECT – If Factor Inputs can be made available to the farmer , directly from the manufacturing source , then PPU shall fall considerable by 30-35% ( specifically in Lubricant Market , in which I currently hold an experience of over 2 years )
SCALABILITY –
The same concept can be extended from Lubricants to other commodities such as – Tools , Fertilizers , HYB seeds , Pump Sets , Tillers etc .
WHY LUBRICANT’S –
As the necessary infrastructure and other vital inputs that a start up would require are already at my disposal , it would be a wise idea to exploit something which first at hand .
KEY INSIGHT –
I currently market Lubricants in West Bengal and Haryana region , targeting majorly SUB –URBAN and RURAL areas with an average monthly sale of 20 MT . this is my personal effort not company effort .
The supply chain is – MANUFACTURER
STOCKIST
DISTRIBUTOR
RETAILER
FARMER
Inflation in price – RS 100/-
10% mark up
15% mark up
15%mark up
sold at MRP
Difference between Factory price and M.R.P is 40 -45 % …..
VOLUME FOR FARMER –
KEY LUBIRCANTS USED – PUMP SET OILS
ENGINE OILS
GEAR OILS
Majorly Pump set oils are used to water the fields , which his changed every 8-10 running hours , Engine oils and Gear Oils are used to fuel the tractor and pump set .
Average consumption in season per farmer – 25 litres of Pump set oils —- 5 litre of Engine oils —- 2 litre of Gear oils.
Average consumption per 15 days – 32 litres
Hypothetical price per litre to farmer — Rs 180/-
Cost to farmer – Rs 5760/-
Monthly cost —- Rs 11520/-
Reduction in cost @ 30% – Rs 3456/-
**Alok Sir i seek your expert advice on the same………………….
