Amalsad Cooperative: Process Innovation in Commodity Trading
(9 pages of text)
In June 2017, executives from Amalsad Vibhag Vividh Karyakari Sahakari Khedut Mandali Ltd. (Amalsad Cooperative) met to consider possible changes to the cooperative’s interventions in commodity marketing, particularly, whether further interventions would benefit member farmers. Linking a unique reward and penalty scheme to the grade supplied by the farmers and directly supplying produce to the terminal market in Delhi had resulted in a 15 per cent increase in the farmers’ income. Streamlining the entire process—from receiving the commodity, grading and sorting the supply, to paying the farmers—had considerably reduced delays. The chairperson of the Amalsad Cooperative, which covered farmers from 17 villages near the town of Amalsad, in India, was pleased that reengineering the commodity marketing process had not only fetched a better price but had also eliminated the inefficiencies associated with marketing through the traditional channel—the Agricultural Produce Marketing Committee trading yards, or mandies. However, he wondered whether further refining the grades would enhance the income of the members and asked his executives what other processes could be modified to benefit the members, especially in rendering services.
The case can be used in courses like agribusiness, supply-chain management, strategic marketing, and process innovation in graduate and executive-level programs After completing the case and answering the assignment questions, students will be able to do the following:
- Explain the agriculture produce commodity marketing and supply chain in a developing country like India.
- Compare and contrast the business model followed by cooperatives with those of other forms of business.
- Describe the complexities involved in reengineering the process of commodity marketing to make it more efficient.
- Outline the role of information technology in improving agricultural commodity marketing and providing financial services to the cooperative’s farmer members.
Agriculture, Forestry, Fishing and Hunting
India, Medium, 2017
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