How Suyoga Products Can Help
Case Study

Learn More

Problem we are trying to address

On one side farmers are receiving low returns for their hard work because of the un-organized market for perishable goods like vegetables and fruits. On the other side consumers are not getting good quality products at reasonable prices because of supply chain issues. Here is a case study of the whole supply chain problem as experienced in Bangalore:
Product: Capsicum
Village: Near Kolar, Bangalore, Karnataka
Muniraj, a famer wakes up at 3AM to go to the nearby market. He has hired an auto last night to ferry his bags of capsicum to the market. Once he reaches there at 4AM, he is asked to pay Rs 100 as the market entree fee. Muniraj then finds a business man to buy his capsicum at Rs 6. Deducting the transport and market entrée fee, he pockets the rest Rs 4 per kg. The middleman Mustafa immediately sells these Capsicums to another middleman Gopal at Rs 8 per kg, who takes the bags of Capsicums and sends them to Chennai using a lorry. In Chennai Ahmad buys loads of Capsicums at Rs 12 and then sells them to several small vendors. Sundar is a small vendor who buys them at Rs 15 per kg. Retail shop vendor Kamatchi comes and buys 30 kg capsicum at Rs 18 per kg. She then takes them back to her small shop and sells at Rs 26 per kg pocketing about Rs 4 per kg and the rest going to transport and the overall waste. Look at the whole end to end transport of Capsicum. Farmer gets mere Rs 4 for his 6 months hard work; consumer gets sub-standard product at premium price of Rs 26 per kg.

Where is the rest of the money?

It went into multiple transportation layers and also the middle men involved who pocket higher profit considering the huge quantity they deal with.
The Farmers endures hardships and recieves low return
Finally the retailers and consumers get sub-standard products.

Our Solution

At Suyoga we took this challenge to address the complete supply chain issue of perishable fresh produce. By reducing the middle men, we can offer better pricing to both farmers and consumers and also use latest technology to manage the whole supply chain to deliver quality produce on time to consumer. Here is a supply chain solution we have established:
Product: Capsicum
Village: Near Kolar, Bangalore, Karnataka
Muniraj, the farmer in Kolar plans to harvest Capsicum crop the next day. Then he opens the Suyoga farmer app and using the easy interface he enters the quantity he wants to sell the next day evening. He receives a confirmation that he can get Rs 7 per kg for his capsicum and will be picked up from his farm the next day at 3PM. He then spends his quality time with family and friends and also planning his farming activities better. Suyoga admin module collates all harvests to be collected in Kolar, sums up the weight and the locations, feeds them into the Transport System (Vahana) based on GPS map data. The system then sends the pickup info, route maps to multiple registered truck owners. Raman is the owner of a small size truck who has already registered with Suyoga and has the Vahana App. He accepts the pickup offer for next day. Next day evening at 3PM,
Raman goes to Muniraj’s farm, picks up the Capsicums and enters details in the Vahana App. He moves to next famer in the same and surrounding villages based on the pickup map in the App and finally reaches the Suyoga godown. He downloads the material, gets an acknowledgement and reaches home at 9PM. Deepika is a working woman who wants to have vegetables delivered to her door next day. She logs into the Suyoga consumer app and enters the quantity of vegetables she requires for next day. Once she checks out she has the option to get it delivered at 10AM or 6PM. She selects, 6PM and in this case she pays Rs 20 per kg of Capsicum, saving about Rs 6 per kg compared to buying from a retail shop.

Finally on Suyoga side the overall supply chain, the Farmer app, the Transport app, the Consumer app are all integrated for a seamless experience. Consumer is able to get the fresh produce of their choice delivered to their door step at the scheduled time. Overall we are using technology to give better pricing to the farmer, give better quality and value to the consumer and making this whole supply chain very well organized.