Success Story: Market Linkage
E-Touch is a market platform created by E-Fasal Pvt. Ltd. company in Nalkheda block of Agar District, Madhya Pradesh, India. E-Fasal is dealing with many locally grown crops like Wheat, Ginger, Garlic, pulses, Orange etc. compared to local markets, E-Touch is offering better rates to the farmers by selling the procured items to its networks in distant places. But the real problem for them is when the supply is in abundance!!
In 2016-17, farmers got bumper Orange production. But because of huge supply, market rates fell from Rs 15 to 20 per kg (Last year) to Rs 6 to 8 per kg in the local markets. In this situation, even firms like E-Touch found it difficult to procure Orange for a better price as they had limited networks to supply the vast quantity of Orange. This was the time when E-Touch approached Samunnati for (market linkage) the assistance. By using its vast network across pan India, Samunnati approached entities who are operating on fruits and that is when Way Cool, one of the F&V firm in Chennai (Tamil Nadu) came forward with its request to procure Orange from E-Touch (Madhya Pradesh).
Based on the preference (Size & shape), E-Touch supplied 20 tons of Orange to Way Cool at Rs 10 to 12 per kg. The first transaction itself helped E-Touch to earn Rs 3 to 5 per kg as additional profits. Meantime, Way Cool is happy with the quality & on time supply of fruits and is in turn selling Orange at Rs 13 to 15 per kg through its producer outlets in Chennai. Transactions will continue till the end of the season (June 2017) and Way Cool has plans to procure more than 500 tons of Orange. Way Cool is also availing financial assistance (Bill discounting) from Samunnati to make payments to the suppliers within time.