Supply Chain Hurdles
1 Pages Posted: 28 Mar 2015
Date Written: March 17, 2015
Abstract
A retired employee of horticulture department has invested his savings in his agriculture field. The productivity is good but he faced a major challenge to market his fresh produce. The one of the basic problem was low prices. He has taken the help of his relatives to take care of the crops and other agricultural practices.
The farmer wanted to sell Sapota and Lemons from his farm. Since the village was not having to any good transport facility he decided to sell it to a middleman and arrived at a price of Rs.10 per Kg of Sapota. But the average market price was around Rs.40 per Kg.
Being aware of the market prices the farmer could not do much about bargaining for better price to increase his returns except to give it at a low throw away price. Otherwise he needs to take a big challenge of transporting his produce to nearby main road of 3km and from there to near town. This option is a costly decision which involves additional transportation cost.
Presently due to his own personnel reasons like age, health and labour shortage he is not in a position to supply to near market himself directly. Hence the total amount invested by the farmer is not getting him maximum returns.
Keywords: Supply Chain Management, Cost of Production
Suggested Citation: Suggested Citation