In addition to our sole cooperative marketing channel i.e. States Cooperative Marketing Federations/other States’ Institutions in the various states, our Society has established a second mode for distribution of its products directly to end users through outlets, namely, Krishak Bharati Sewa Kendras (KBSKs) in limited number of states that is Uttar Pradesh, Haryana and Punjab only. The objectives/Services provided from these KBSKs are as under:
- The basic objective is to provide farm services to the farmers under one roof.
- To run these KBSKs with personnel having agricultural background to provide the latest technology in the field of agriculture to the farmers for higher yields and help in the agricultural development of the country.
- To have check on the price rise in the local market, our KBSKs will help in providing good quality agro inputs at reasonable prices and at right time to the farmers.
- Our Society’s KBSKs provide various quality fertilizers, certified seeds, agro-chemicals and other agri-inputs etc. to the farmers throughout the year.
- To help the poor farmers, suitable farm implements & equipments like sprayers, seed-treating drums, seed-cum-fertilizer drill etc. are being made available to the farmers for use and return without any fee charges.
- These KBSKs in the field provide a forum for farmers coming from far-flung villages for useful interaction and thus help in gaining goodwill of the farmers to our Society.
KBSKs are opened at the potential area/places where fertilizers consumption is higher after conducting a survey report. Survey report shows that the place has high demand of agro inputs locally used, easy approachable place and may not be very far from the godown/rake point in order to minimize the transportation expenses. KBSK is manned by a Salesman under the supervision of the respective Field Officer posted at tehsil/District Headquarters level.
Initially, KBSKs were opened in the States of Haryana and Punjab during the year 1985-86 in order to develop primary market for sale of Kribhco Urea. Later these KBSKs were also opened in U.P. These KBSKs in limited number were also opened in other states like Karnataka, Andhra Pradesh and M.P. but were closed due to heavy losses incurred.
At present 63 KBSKs are functioning in the three States, Uttar Pradesh ( 36), Haryana ( 13) and Punjab (16).
The following fertilizers and other agro inputs are being made available from KBSKs to the farmers:
- Complex fertilizers, namely, DAP, NPK etc.
- Micronutrient - Zinc sulphate
- Certified seeds – Wheat/Paddy/Cotton/Bajra/Mustard etc.
- Cattle Feed
- Plant protection agro-chemicals – Herbicides, Insecticides etc.
- Items of daily use like torch/lantern etc.
- Bio-organic manure and BT cotton seeds have also been introduced.
In order to make available most of the agro inputs in time at the KBSKs, our Management cut short the hieratical financial powers and delegated the same to respective State Marketing Managers to finalize the procurement process at the State level. At present, following financial powers have been delegated to M.D. which further sub-delegated to State Marketing Managers to purchase various agro inputs in time at State level:
- Marketing Director/GM(Mktg.)/SMM have been delegated financial powers of Rs. 9.90 crore per year/state for procurement of phosphatic fertilizers on single tender basis from IFFCO/Govt. Institutions/Undertaking at par with rates of RCS/Marketing Federations and/or through limited tender from indigenous manufacturers.
- Marketing Director/GM(Marketing)/SMMs have been sub-delegated powers of Rs. 2.40 crore per year/state for purchase of Urea(other than Kribhco Urea ) for KBSKs from Marketing Federations and National level companies/Institutions/Undertakings operative in the concerned state on single tender basis.
- Similar financial powers for purchase of Zinc sulphate for Rs. 2.40 crore/year, Rs. 2.40 crore for purchase of agro chemicals/year and Rs. 2.00 crore/year for purchase of seeds, which are not available with Kribhco, can be purchased at state level.
- Kribhco do not have own premises for KBSKs. All the shops are on rent basis and has different sizes. As per FPO Act 1955, food/seeds/other products cannot be stored along with the fertilizers in the same small building.
- Sales staff posted at the KBSKs do not have agricultural education background.
- Retail price of Kribhco Urea at our KBSK is higher as compared to at Cooperative Societies/Private trade which in turn affects our sales.
- Kribhco does not manufacture complex fertilizers like DAP and NPK etc. and is dependent on availability of these fertilizers from indigenous manufacturers/ importers. The less availability of DAP in the market affects the turnover of these KBSKs.
- In the State of Punjab distribution of fertilizers for cooperative channel is based on fertilizers policy made at every onset of season. Many a times, the State Government does not include Kribhco/IFFCO in this policy and in the absence of this scheme, Kribhco loses its bulk sale of zinc sulphate as well as agro-chemicals.
- Kribhco manufacturers only Nitrogenous fertilizers and small quantity of seeds of few crops. The availability of other agro inputs in time affect the turnover of the KBSKs.
- Kribhco sells agro inputs through KBSKs on cash and carry basis, whereas in the cooperative channel, agro inputs are sold under B component scheme i.e. credit system. This also affects the turnover of the KBSKs.
Expansion of Business
- Urea of other manufacturers can be sold
- Small implements like sickle, shovel, spade etc. can be sold.
- Small kits of vegetable seeds can also be sold
- Source of supply of DAP in time needs to be ensured.
- In order to increase the business of the KBSKs supply and monitoring needs to be disciplined.