Transport or logistics management is a very challenging task for every mandi trader. Especially in a country like India, where mandis are spread all across. You can find thousands of mandis spread from ‘Gujarat to Arunachal Pradesh’ or from ‘Kashmir to Tamil Nadu’. It is not easy to supply the products. If you are an Agri trader and wish to know effective ways for better transport management, then this blog is for you.
Here are some important points you should know before your start your Agri transport management business.
Unorganized Market Sector
The Indian agricultural market is an unorganized sector. Every day the prices of the products change due to various factors and because of it availability of trucks and transport charge also varies. Some days when there are trucks available in Nashik city then transport charges will be less and if there is a scarcity, rates will be higher.
Demand and supply in mandis and fuel price impact
When there is a shortage in supply of a product, demand increases and price rises. Other than demand & supply, external factors such as world affairs and rise in fuel prices also affect the Indian market. Fuel price fluctuation also impacts the rates of transportation. For example, a few days ago the supply of lemon in the mandis of India was low and the demand increased. On the other hand, the rate of petrol and diesel in India have also increased due to the Russia-Ukraine war. This combined affected the rate in mandis and good quality lemons crossed a mark of Rs 250/kg.
Road, weather and product spoilage
Before doing business in mandi, it is very important for a person to know about road & traffic conditions as well as about the environment. Weather plays an important role in market trade. Weather impacts the commodities stored in warehouses or in mandis, it could be because of heatwaves or too much humidity or thunderstorms. Considering the shortage of supply or weather conditions, there should always be in a buffer time added to the expected delivery time.
Once the deal is final with the buyer, the next step is to arrange transportation. A supplier has to make several calls to several transporters to check availability and get their rates. You may find a reliable transporter at a good rate within your circle or otherwise, you will have to send goods from an unknown transporter. You also have to pay as per their rate chart.
Sometimes, the suppliers reward the truck driver so that the truck reaches the buyer on time. This reward could be anything between ₹4,000 to ₹25,000. In such a situation, it becomes the responsibility of the truck driver to deliver the goods safely and on time.
We hope that you will definitely benefit from this information in your agriculture market business. If you want to know more about the products and information related to the Indian agriculture business, then tell us in the comments. Also, download the Bijak app today to make your agriculture business easy.
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