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Salient Features of TS PS
Procurement through local cooperative societies of farmers Reduces market risk & utilize productive resources efficiently Product variability is reduced through grading Greater quality control through grading and check by oil chemist Fair and efficient pricing mechanism

 Backward integration Know how support (extension activities) Reduces transportation cost hence increased margin to farmer reduce the solicitation time and bring the product to the doorstep of your end-user sooner

Strengths & Weaknesses of TSS

Strengths
Strong grower base; 926 cooperative societies and 1.54 lakh growers Government & World bank support Efficient and transparent procurement process Only one intermediary in procurement chain Extension services to growers Organized structure of PS

Weaknesses
Delay in payment Distant Cooperative Banks at Taluka place Less storage capacity Less realistic capacity of plants shortage raw material in two month Jan to Feb Varied oil recovery % Less consumer base

Strengths

Strong grower base Gov. & WB support Efficient & transparent PS Extension services Organized structure of PS No intermediaries Total control on quality and chain Use of certified seeds

Weakness Delay in payments More distance of banks Less storage capacity Less customer base Varied oil content Under utilization of capacity of plants Lower turnover

SWOT Analysis
Opportunities Growers base still to be fully exploited Market opportunities Capacity could be improved to its fullest capacity

Threats
Less efficiency of plants Limited storage capacity Shortage for few months Price fluctuations Late payments

Procurement Strategy
We have identified areas of improvement to invent efficient procurement strategy for TS 1. Raw material
2. Pricing mechanism 3. Repayment system

1. Raw Material
Current procurement system is lengthy(screened at two places) Have various grades and different oil content TS need to collect data on varieties used, pre & post harvest practices followed by farmers & find out reason behind various grade resulted (practices) These data can be collected directly from growers, input providers and seed companies (FGD, PI)

 This will help them dig out flaws in intercultural and cultivation practices Extension services along with input support needed for uniform produce (varieties, nutrients) This will ensure uniform produce with quality and reduce time required for vigorous screening

2. Pricing Mechanism
Adopted pricing mechanism is one of reason behind delayed payment In this mechanism they are not buffered against price fluctuation Data of their cost of production should be collected A fixed price over a month with a reasonable profit to grower should be finalized

3. Repayment
This is what growers are unsatisfied with Two step screening, time consuming pricing and more distance of bank are making matter worse Feasibility of payment at purchase point should be checked Present skill set of CS member involved in procurement should be checked through collection of data Cooperative society is good source of information Training should be given

Thank you !