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Study of LOGISTICS systems in

North Eastern States

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Statement of Interest

I had already done so many researches in this field regarding Logistics and distribution system as

part of my projects in Strategic Supply Chain Management and a national competition at IIM

Lucknow to explore opportunities and make a B-Plan out of it. As part of our project I did lot of resarch byreading previous research papers on the same and also by talking with people such as

transporters, shopkeeper to understand the entire Supply chain and logistics system existed in

North Eastern States.

It throws lot of scope and business opportunities. So, I plan to tap that opportunity and will

present business opportunities out of it for consulting groups.

Approach to carry out the study

1) Selection of Distribution System

I had selected the model adopted by the Government of India to study the various marketing and

distribution system for Horticultural and Agricultural products such as paddy, pine apple, apple

etc. existed in North eastern states especially in the state of Meghalaya, Assam and Tripura and

then carry out the necessary changes in the existing system to develop the socio economic

conditions of the farmer. This programme was conducted by the government in 2004 and took 5

years to get implemented in some areas but it did not bring the changes perceived by the

government.

2 ) Ov er v iew of the Agricultural distribution system existed in the North eastern States

Agricultural marketing is a complex phenomenon. Involvement of a number of trade channels in

the procurement of agricultural produce, the attitude of farmers towards the selling of their

produce and to get immediate returns is the main factors governing the whole market operations.

There are different types of problems in the marketing of agricultural and allied products

pertaining to organizational, functional and physical infrastructure aspects. The organizational

aspect is mostly concerned with the state intervention in agricultural marketing by

implementing the market regulation as an instrument to offer better price to the farmers and

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feeble the lobby of private traders. The functional aspects are concerned with the bottlenecks

found in transaction during grading, weighing, pricing, payment and other

marketing operations. But in the North eastern states, all such parameters were absent when the

primary research was started and even if after lot of value proposition offered by the primary

research, little was achieved till date.

3 ) M ajor Variables access during Primary research

The major issues covered during Primary research included major horticultural crops

marketable surplus, marketing Institutions, infrastructure, logistics such as cold storage,

warehouses, rural godown , transportation; procurement pattern, pricing, processing

infrastructure, packaging, retailing, marketing finance etc.

4 ) M ajor Stakeholders

The first and foremost stakeholders are the poor farmers and the rural people. The whole study

was done to improve the socio economic condition of them. The other stake holders are Private

traders, middlemen, money lenders, private transporters, poor distributors etc. Apart from these

the whole model was aimed to improve the image of Government of India in the north eastern

states. Hence, it was having a significant stakes in this model.

5 ) Value O ffered by this study

The whole model was developed to give greatest values to poor rural farmers and small

distributors at one side and on the other side it was aimed to limit the role of private traders,

middlemen, money lenders etc. and save poor people.

It promised a huge development in the existing distribution system existed in the north eastern

states by making way to develop backend infrastructure, improvement in the transportation

system, improving the role of regulatory authority at various stages, better credit facilities etc.

Most of the above thing was identified during primary research and also got implemented in

some area as a secondary plan but due to some major problem majority of it was still to be

implemented.