Using E-Commerce to Fuel Rural Growth in India

- by Meenal Nigam & Vivek Patni *

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Besides, a large number of rural retail stores are coming up. These stores can benefit immensely form e-commerce by knowing the product availability and other details. Villagers can get better benefit as the intermediaries will be gone. Villagers can e-sell to the rural retails stores earning better margins and higher volumes.
Examples are M & M Shubh Labh stores, TATA / Rallis Kisan Kendras, Escorts Rural Stores, Warnabazaar-Maharashtra (annual sale Rs. 40 crore).

Creation of New Market for Art

Through artisans trading exchange, for example, local craftspeople in developing countries can increase their incomes not only through access to new markets, but also because the wholesaling intermediaries for their produce have effectively been removed. Local craftspeople can receive up to 95 percent of the selling price for their produce through e-commerce where previously they received only 10 percent. "Viatru" and PeoplNET are such initiatives offering indigenous people opportunities to globally market their traditional crafts and farm products.

Dairy

Automating milk collection and payment can bring demonstrable benefits to farmers and local dairy cooperatives, increasing efficiency, transparency and fairness, and speed of payment. Moreover, it would enable faster processing of perishable milk, preventing spoilage, and provides the mechanism for capturing the historical information base that farmers and local cooperatives need in order to plan more effectively and make improvements in quality and yield. These in turn will be critical to the competitiveness of the Indian dairy industry and possibly the survival of its cooperative structure as it faces a growing threat from more efficient foreign producers.

Figure: GCMMF (Amul) E-value Chain

The elimination of the middleman, accurate fat measure of milk using lactometers and timely payment would enable the producer to get a higher profit. Collective procurement can increase the potential of the dairy. 'Akashganga' is one such example.

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* Contributed by -
Meenal Nigam & Vivek Patni,
NITIE, Mumbai.

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