CASE 27 — AGRI-BUSINESS

ITC — AGRI BUSINESS

Field research for ITC’s Agri Business Division, April to May 2016 — travelling through towns across rural Maharashtra to map where value and cost are added at every stage of the millet supply chain.
FIELD RESEARCHSUPPLY CHAIN ANALYSISVALUE CHAIN MAPPING
THE BRAND

WHO THEY ARE

ITC’s Agri Business Division sits at the start of the food supply chain — sourcing, procurement and the farmer relationships that feed everything downstream.

Between a millet farmer and a packet on a shelf sit an APMC mandi, traders, processors and retailers. Each one adds cost, and each one claims to add value. Which of those claims is true is not visible from an office.

Millets are a particularly good lens on this. They are a smallholder crop with a fragmented supply chain and thin margins, so every intermediary matters proportionally more than it would for a consolidated commodity.

THE PROBLEM

THE BRIEF

Understand the value and cost added at every stage of the millet supply chain — not in aggregate, but stage by stage.

THE RESPONSE

WHAT I DID

Travelled to several towns across rural Maharashtra and met suppliers and vendors at every level of the chain: farmers, APMC mandis, food processors and retailers.

Focused specifically on millets, tracing how cost accumulated and where value was genuinely added between the field and the shelf.

The method was deliberately first-hand. Procurement data tells you what things cost; standing in a mandi tells you why.

HOW I GOT THERE

THE THINKING

01

Go to the field, literally

Supply chain economics look clean in a spreadsheet. The real answer is in a mandi, and it is not always what the numbers imply.

02

Cover every tier

Sampling one level tells you nothing about margin distribution. Farmer, mandi, processor and retailer all had to be visited to see where the money actually sits.

03

Separate value from cost

Every intermediary adds cost. The question worth answering is which ones add value in return — and that distinction is the whole study.

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