The Model in Action:
Appreciating the imperative of intermediaries in the Indian context, ‘BHASKARA AGRI BUSINESSES (BAB)’ leverages Information Technology to virtually cluster all the value chain participants, delivering the same benefits as vertical integration does in mature agricultural economies like the USA.
‘BHASKARA AGRI BUSINESSES (BAB)’ makes use of the physical transmission capabilities of current intermediaries – aggregation, logistics, counter-party risk and bridge financing -while disintermediating them from the chain of information flow and market signals.
With a judicious blend of click & mortar capabilities, village internet kiosks managed by farmers – called BAB-IT – themselves, enable the agricultural community access ready information in their local language on the weather & market prices, disseminate knowledge on scientific farm practices & risk management, facilitate the sale of farm inputs (now with embedded knowledge) and purchase farm produce from the farmers’ doorsteps (decision making is now information-based).
Real-time information and customized knowledge provided by ‘BHASKARA AGRI BUSINESSES (BAB)’ enhance the ability of farmers to take decisions and align their farm output with market demand and secure quality & productivity. The aggregation of the demand for farm inputs from individual farmers gives them access to high quality inputs from established and reputed manufacturers at fair prices. As a direct marketing channel, virtually linked to the ‘mandi’ system for price discovery, ‘BHASKARA AGRI BUSINESSES (BAB)’ eliminates wasteful intermediation and multiple handling. Thereby it significantly reduces transaction costs.
‘BHASKARA AGRI BUSINESSES (BAB)’ ensures world-class quality in delivering all these goods & services through several products / service specific partnerships with the leaders in the respective fields, in addition to BAB own expertise.
While the farmers benefit through enhanced farm productivity and higher farm gate prices, BHASKARA AGRI BUSINESSES (BAB) benefits from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value.