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Removal of Intermediaries

DATE: October 9th, 2018

In India we always see the method of incorporating intermediary layer in the business setup.Intermediary layer is the involvement of group of carrying and forwarding agents those who helps in the progression of the business in terms of moving of the products. This layers are present between two different sub levels of the distribution system, like between manufacturers and distributors and wholesalers and retailers. As the name suggests the function of this add-ons are to become a link between two successive layer of the system and helps in forwarding the goods to the next level , for this service they offer a commission is charged from the subject in the preceding layer due to which the price of the product is increased and then sold so to the succeeding layer just to maintain an optimum profit margin. This has the cascading effect on the price, as the price which was once labelled at the point of manufacturer depending on the cost has been elevated to its 6 folds by the time it reaches the customers. For example: If the price of the goods is 2 rupees at the primary point then it will become 12rs as it reaches the customers, making it 6 folds than the original.

The above mentioned process is followed in all the consumer goods organisations. Even in the agro input industries the same mentioned process has been followed and farmers are paying multiple folded incremented price. Due to this high price mechanism farmers maintains credit from the authorised financial institutions like Banks or from unauthorised ones like Mahajans or highly reputed people among their circle at a high interest rate.

Recognising this problem, POORTI has created such an opportunity for the farmers well being that they can be saved from this life of continuous repayment. With the inclusion of POORTI in the set-up the intermediate personnel’s will be excluded thereby the final prices of the goods will be lowered as the add-on charges are removed. The dealing of the products will be done directly between the dealer and the customer through online transaction. As a result to this the farmers will have lower credits or maybe some can get devoid of that making their life much more at ease . In context to that the sales of a particular brand increases and customer engagement occurs. Inclusion of POORTI has resulted in farmer welfare to the higher magnitude and in the future more well comings will be there for them.

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