IDF Notes (Nov 2020)

Owned by Ashu Sikri (Unlicensed)
Last updated: Feb 17, 2022
4 min read

IDF is a promoting org that supports FPOs in Karnataka

Spoke with senior leadership and a couple farmers

Thanks to @ashok for the notes

Siddappa, Nagavalli, Tumkur  (Nov 11)- Arecanut, Coconut, Banana and Ragi

Is supplying Banana to FPC

  • How do you learn about sales opportunities today ?

Google/ Phone calls/ Mandis/ Peer farmers- He demonstrated Coconut prices of Tumkur using google. 

  • What is the most critical information you need about a sales opportunity to decide if you want to participate ?

Price, Transportation cost, Know someone in the market, payment terms , time spent on marketing, fair practices like weighting. 

  • How much of your total production is for sale? How much do you sell through the FPO?

Have started to sell Banana since few weeks ( since FPC opened its purchase centre ) It is whole harvest i sell at FPC 

  • What all purposes are served by FPO for you ?

Input supply, FI from idf and Banana sales

  • Do you face any difficulties/delays in dealing with FPO ?

No

  • Do you log any information about your crops today ? 

No-If people ask for the information i will provide. I can also give information on mobile if interface is good

  • When do you contact FPO for selling your crops ? At which stage of crop cycle ?

I dont contact, I know the days they purchase Banana and i just take it there. But yes would be nice to get heads up from the buyer about the quality and price in advance ( a day before)

  • (Show data entry interface) Can you use this interface to enter data? What seems easy to use and what seems hard?- Did not do it

  • How do you get paid by the FPO today? What challenges / frustrations do you have with that process? - I get cash from the company and  i am ok with the cash. Though i have smart phone i don't use any payment apps

Narayana Swamy, Hebburu, Tumkur ( Nov 11)-Arecanut, Coconut , Banana and Ragi

  • How do you learn about sales opportunities today ?

APMC commission agents/ Traders/ Peer farmers/ IDF company and Kisan centre. ( He showed msg on his phone about the prices of Coconut from Kisan centre)

  • What is the most critical information you need about a sales opportunity to decide if you want to participate ?

Price, Transportation cost, Know someone in the market, commission ,payment terms , weighing practices 

  • How much of your total production is for sale? How much do you sell through the FPO?

Have started to sell Banana ( last stages of harvest) for the last two to three weeks. They ( idf) have started this centre recently. We will supply all our items to the company only if they start purchasing.

  • What all purposes are served by FPO for you ?

Input supply, FI from idf 

  • Do you face any difficulties/delays in dealing with FPO ?

No

  • Do you log any information about your crops today ? 

Yes, Kisan centre over phone and register phone number to get message

  • When do you contact FPO for selling your crops ? At which stage of crop cycle ?

Usually i dont contact anyone, i know that they are purchasing Banana twice a week. If they need more Banana , they would inform me over phone or inform me when i am there to sell.

  • (Show data entry interface) Can you use this interface to enter data? What seems easy to use and what seems hard?- Did not do a demo. I am willing to provide the data you need if it is helping me to find the market/ or to get the prices.

How do you get paid by the FPO today? What challenges / frustrations do you have with that process? -  Cash from FPO because  transactions are small. I do get cheques when i sell Coconut to APMC or to coconut board.

Srikant is a senior person there who runs FPO programs (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

Â