In the earlier blogs we have discussed regarding the problems of having intermediary agents for the forwarding purpose but dealers do have the same problem. If the farmers have the problem of increased price system it is the same for the dealers as well. The product has to go through different stages even before reaching into the hands of the dealers which do changes the price to certain extent from the normal. Since the dealer has not the problem of finance as we find with the farmers but still due to this dealers also need to amend their sale price when they pass on the products to different retailer shop or wholesalers. The middle agents are generally outsourced by the companies they are not on-roll employees therefore an increased cost which varies.
For a change in some cases like for IFFCO, which has a big hold and it is among the top guns for seed producing companies, has to outsource their products directly to the retailers since they don’t have the concept of dealers. Retailers are itself the dealers for them. This reduces the layers. But the price problem doesn’t find its solution. Thereby reducing the sale. In many cases the manufacturing companies doesn’t have the track of process applied at the customer end due to inefficient tracking system.
The dealers can be benefitted from the POORTI project since it joins the dealers directly to the farmers and the cost for the middle agents are not procured by the dealers because the farmers are itself being the delivery or carrying agents of their ordered product or unemployed youths can also be hired for the purpose of delivery and they can be paid on that basis. Since the proper price has been shown to the farmers on the website the dealers can make any hybridisation in that respect and in return because of the transparency purpose the farmers can put their trust on the dealers and along with the trust they can help in increasing the sale as well. POORTI as a whole is also acting as a goodwill raiser for the dealers.