AgriGator, is building a platform that would directly connect grain traders, food processors, wholesalers and logistic providers for an efficient and transparent, trade and transport.
Indian agriculture supply chain is quite complex and fragmented. Information asymmetry creates poor market linkage and logistical inefficiencies, resulting in huge marginal loss, poor price discovery and high wastage of food.
This is the grain supply chain in its most simplistic form. If you see the journey of the grain it takes 7–10 hops for it to reach the consumer from the farms. Unlike fruits and vegetables the grain supply chain cannot be bypassed to follow the farm to fork trend. It has to go through the food processing industries (FPI) before it is sold out as a commodity to the customers or consumers.
In simple words paddy from traders sitting in mandis (APMC) has to go to a FPI or a local mill to be sorted, polished and most of the times packaged too. Only then it is sold out to other local mills, bigger industries, wholesaler, retailers or even exporters. Hotel chains directly buy bulk grains from local mills or industries for the purpose of cost savings. The tricky part in all this movement of grain is that the demand for a week or month is totally unpredictable. The agri shippers of the commodities are highly dependent on local transport broker for last mile fulfilment & look forward to an on-spot truck requirement with a quick turn around time.
Traditional business requires these shippers to involve a channel of middlemen. These people might seem to be very resourceful but unfortunately they are the root cause of the inefficiencies in the supply chain. They are the reason for tardy and costly logistics with a minimum turn around time of 4 to 5 hours. The logistic brokers work in their own silos with a limited number of carrier providers. The transparency of any transaction has always been a point of question when it comes to a logistics supply between the shipper of the commodity and the local carrier provider. Last year due to these and other innumerable inefficiencies, the country incurred Rs. 8,000 Cr. loss from post harvest agri logistics out of the total Rs. 50,000 Cr. value of grain domestic freight.
AG Transport is a managed marketplace in agri logistics that focuses on streamlining this process. AG brings the shippers and the carrier providers on a single platform. Leveraging the network effect it is able to provide optimised and on-time logistics. The shippers can now arrange logistics from a wider network of reliable carrier providers. This platform throws the best possible recommendations of the suitable matches of carrier providers within the shortest possible time at best rates. AG maintains the transparency and charges a minimal percentage as commission saving its customers up to 10% on every transaction.