IDF is a promoting org that supports FPOs in Karnataka
Srikant from IDF (Nov 9)
Realtime view to marketable surplus is critical, need this to make decisions on which buyers to target and other items
Have worked with Samudra Network who has created a database of farmers incl crop, area, personal info. Tool is currently used by used by FPC staff, goal is for farmers to enter info directly
Goal is a single view of input requirement + marketable surplus + farmer profile
Aggregating farmer demand for inputs also important
80% of IDF FPO biz is input procurement (total biz = 7cr past year, could have 2x greater with improved visibility)
B2B connectivity critical to drive volumes
Have utilized NeML, Indimart, IndiaExports. Inquires through Indiamart and Exports but no transactions
With NeML, 50 attempted transactions past 2-3 months only a few completed with copra (total sales = 5 lakh)
Find that buyers are aggressive on price. For example for bengal gram, buyers looking for 43 per kg, FPO looking for 50 per kg (based on local market price + transaction / transport fees)
NeML buyers are agribusiness companies and large traders supplying retailers and smaller traders. They buy in large quantities (hundreds of tons)
Workflow. Srikant is key person on the supply side and coordinates with the FPC CEO. NEML facilitates convos with buyers.
FPC posts what is available for sale.
Receives quantity and quality requirements from buyers and FPC provides price based on local market prices
FPC sends photos over whatsapp to NeML who shares with buyers
Buyers come back and negotiate on price
Quality parameters vary by commodity incl diameter, color, weight; no request for physical samples yet
Is there is agreement, seller deposits 2% of inventory in account and buyer deposits entire amount
48 hours for FPC to supply
NeML collects 0.25% commission
D2C is interesting for brand development, expect this to remain a niche market with limited volumes. Didn’t seem like this is highest priority for IDF