Supply Chain Management: A Key To Success In Indian Rural Markets

  • Umang Tandon Tandon Isabella Thoburn College Lucknow


With over 70% of the economy centered on the rural parts of the country, logistics players are now seeking ways to address logistics and supply chain market issues as about $100 billion worth potential is latent in the rural parts of India. The average Indian village today well represents an emerging, powerful consumer community. Rising crop prices, sale of land to developers, crop rotation, export orientation and home-coming of the rural youth, government initiatives like NREGA and better wages for farm labor are creating disposable surpluses in the hands of rural and small town Indians. However rural penetration and distribution challenges remain abundant. The farmer in India gets around 30 percent of what the consumer pays at the retail store, where as in the developed countries farmers get 70%. Hence need of hour is to develop a distribution model which is suited to the rural environment and provides a strategic advantage. This paper will seek focus on logistics and supply chain management in Indian rural markets in a cost effective manner. Key Words: Logistics, NREGA, distribution, model


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