As per report by ICICI the no of holdings of small and marginal farmers in 2010-11 was 117.1 million. Area was 70.5 hectares, this translates into average holding of 0.6 hectare. With 11 Crore small farms 56000 units tillers is a very small number. Even if 5-6 farmers get together and share a tiller the number should be higher. Amount that the farmer needs to shell out is also 50-60K given that the tillers is subsidized. Is it the case then that
a) The tiller is not marketed properly
b) Benefits of the tiller are not explained properly to the end user
c) after sales service might be a problem, service centers need to be near the farms and they might not be there currently
One more thing that should work for a company like VST is that rural labor is getting expensive and farmers want their children to be educated to take up jobs in cities.
Given the opportunity size (no of small farms) shouldn’t the company get into a aggressive mode.
Regards,
Chetan Chhabria
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