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A Study on Technology Integration for Storage Efficiency
during Peak Seasons and Slum Season (With special reference to SACML and NCML
Companies in Bikaner) |
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Paper Id :
18704 Submission Date :
2024-03-11 Acceptance Date :
2024-03-19 Publication Date :
2024-03-25
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. DOI:10.5281/zenodo.10907346 For verification of this paper, please visit on
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Abstract |
Large-scale,
well planned storage is referred to as "warehousing." Modern
scientific approach warehouses have started to sprout up all across the nation
since agri-commodity warehousing is crucial to the development of the area. |
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Keywords | Technology, Integration, Storage, Peak Seasons and Slum Season, SACML and NCML, Warehousing. | ||||||||||||||||||
Introduction | The goal of
agri-commodity warehousing is to help farmers store their produced grains and
pulses and obtain bank and financial institution credit facilities in a way
that will benefit them financially. This research
states that Rajasthan is the primary state that produces a huge variety of
agricultural products. Furthermore, we concentrated on the Bikaner district,
where agri-commodity warehousing has been steadily rising. Important commercial
and governmental organizations are also carrying out this act of service. The
Significance of Warehouse Management for the Storage of Goods Derived From
Agriculture i. Central
location: Products can be received, stored, and distributed by goods owners
from a warehouse, which is a central location. Product accountability will be
passed to the warehouse staff as soon as the products arrive. It is necessary
to implement safety precautions. ii. Value-adding:
By cutting cycle times and overall costs, a logistics system's main goal is to
improve efficiency and customer service. By enabling firms to maintain
inventory, storage adds value to the logistics chain and ensures that orders
are shipped on schedule. iii. Economic
benefits: Since products are sent from a single place rather than several,
storage lowers transportation costs for both businesses and consumers. Results of
Warehousing Development and Regulatory Authority (WDRA) There are
incredibly few licensed and registered warehouses in India, and there is no
system in place for commodity grading or quality certification. Farmers sell
their properties in difficulty because of the significant fragmentation of
landholdings in India, which makes aggregation a very challenging operation.
Farmers lose out on a fair price for their produce in the process. The farmers
would have a location to score their produce with the implementation of WDRA.
Farmers will benefit from not having to sell in difficulty. An instrument
recently introduced under the Warehousing Development and Regulatory Act (WDRA
or Act) called the negotiable warehouse receipt (or "NWR") may
provide the answer that has eluded agriculture market reforms in India: a
different market channel that can connect the farm gate to national markets. By using the
Negotiable Warehouse Receipt (NWR / NWRs) system to collateralize agricultural
inventories, credit availability will rise, costs will fall, and external
financial resources will be brought in for the industry. Farmers will benefit
from lessening their reliance on moneylenders thanks to the credit facility
provided against the receipt. Properly constructed NWRs guarantee the existence
and quality of agricultural inventory, giving banks safe collateral. However, this
will require some time. It needs well-designed infrastructure, appropriate
regulations, and intensive farmer education. |
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Objective of study | 1. To study the
storage efficiency of warehouse. 2. To find out
the responses towards storage efficiency of warehouse. |
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Review of Literature | Rao & Rao (1997)[1] collectively read aloud on „Agricultural Commodity Transportation in India‟, They claimed that as transportation is a crucial link in the chain of production and sale in agriculture, it is an essential component of pre- and post-harvest activities. The process entails transporting a variety of inputs, such as seeds, farms, machinery, labor, fertilizer, pesticides, etc., to farm yards; assembling the finished product at the farm's center; transporting the goods to nearby marketplaces, retail establishments, village or wholesale agricultural assembly markets, Godowns, and lastly to the final consumption locations. Their work also emphasizes the literature and research review, which includes studies done in this sector both domestically and internationally, the Indian rural transportation scene, production and marketing trends, the infrastructure profile of the chosen sample villages, intermarket transportation, etc. A summary of the debate and recommendations on the many facets of agricultural commodity transportation is provided at the study's conclusion. Singh et al. (1987)[2] carried out their research as, „Agricultural Marketing in India: Analysis, Planning and Development„, that describes agricultural marketing in terms of primary, secondary, and terminal markets; the current Indian agricultural marketing system and its techniques of selling food grain commodities; the roles and responsibilities of middlemen; and the ways in which agricultural marketing contributes to the economic growth of the country. In addition, it outlines the flaws and restrictions of agricultural marketing in India, including inadequate storage facilities, inadequate infrastructure, transportation issues, malpractices, and weak financial services. It also discusses the competition in the agricultural market. Finally, it provides recommendations from the government to enhance the agricultural marketing system. Assembling, grading, standardizing, processing, transporting, storing, distributing, funding, taking on risk, market research, and information are some of the key characteristics that define the goal of marketing services. The authors provide a state-by-state study that includes recommendations and ideas from the National Commission on Agriculture, and they discuss the history, growth, development, virtues, and drawbacks of regulated markets. The book concludes by outlining the study of agro-commodity grading and standardization with legislative measures and Acts; food grain article storage and warehousing; financial, credit, and capital requirements for agricultural marketing in India; agricultural marketing education, research, and administration; causes and effects of agricultural price fluctuations and policies, means, and measures to stabilize them; and, finally, the role of marketing intermediaries for crop marketing. Acharya[3] made a seminal contribution to Indian agriculture in a research project that included 27 book sets State of the Indian Farmer – A Millennium Study”. This book is the result of research on agricultural marketing done as part of the Indian government's Ministry of Agriculture's "Millennium Study" on farmers in India. With an emphasis on Indian farmers, the book, particularly Volume No. 17 on "Agricultural Marketing," examines advancements and changes in the field of agricultural marketing in India over the past 50 years. Nine chapters make up the book's content, which is arranged as follows: general aspects of agricultural marketing practices; an analysis of the agricultural produce markets' regulatory framework; an overview of the infrastructure for agricultural marketing that has changed and is currently in place; plans to encourage private investment in this sector; the role and responsibilities of significant marketing institutions and organizations; government policies and programs pertaining to pricing, market intervention, and credit policy in relation to agricultural marketing; an assessment of the facilities for marketing research and extension and statistical databases; and, finally, some lessons for a long-term policy on agricultural marketing development have been identified.. Govindrajan et al. (2006)[4] in an academic research paper, „Probability and Intensity of Farmers using Regulated Markets: A Tobit Approach‟, brings attention to the predicament faced by Indian farmers who are the targets of unfair commercial practices committed by commission agents, dealers, and local merchants. To protect farmers' interests in agri-markets, the government established regulated marketplaces to guarantee equitable and consistent trade practices. Consequently, the writers endeavor to examine the likelihood and level of farmers' involvement in regulated marketplaces. The Tobit Model was utilized to examine farmers' involvement in regulated markets for the sale of their agricultural products. The share of output that is disposed of in regulated markets is the dependent variable in this analysis. The independent variables are the price ratio between regulated markets and farm gate, farm size, marketed surplus, educational attainment, and the number of times the regulated market functionaries canvass a farm. Cross-sectional data gathered from the farmers in the Erode district served as the study's foundation. 160 farmers who were chosen at random from the notified region of the regulated markets are given a questionnaire. The findings indicated that raising farmers' educational attainment was crucial to their participation. Another conclusion reached was that the District might have more regulated markets than just the ones that are now there, which would mean that there would be more human resources accessible. |
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Methodology | Population and
Sample for the Study The current
study focused on Agri Commodity traders in the Bikaner district. Initially, a
comprehensive list of Agri Commodity traders residing in Bikaner was compiled.
The total number of Agri Commodity traders in the Bikaner district amounted to
500. Subsequently, a
random selection process was employed to choose 250 traders from the district
who were actively engaged in the Agri commodity business. These selected
traders constituted the final sample for the study. Throughout the research, a
concerted effort was made to ensure representation from all traders in Bikaner
who were part of the study, ensuring a well-rounded selection of cases for
examination. Data Collection
Process The data
collection process for this study was conducted with meticulous attention to
detail. The primary tool employed for gathering information was a structured
survey administered to merchants operating within the target market. This
survey was meticulously designed to elicit relevant insights and perspectives
from the participants, ensuring the acquisition of high-quality data essential
for the study's objectives. Traders were directly contacted, with regular
in-person visits whenever necessary, to ensure the questionnaire was
effectively administered. Clear instructions related to the questionnaire were
provided to traders, emphasizing the importance of their cooperation in the
study. Respondents
were assured of the confidentiality of their identities, explicitly stated in
the questionnaire, to uphold response uniformity and minimize bias. A data file
was meticulously constructed for the filled questionnaires, and analytical
tools such as frequencies and cross-tabulations were applied to identify and
rectify any entry or coding errors. |
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Analysis | Table-
Distribution Of The Respondents On The Basis Of Their Responses To The
Statement, "Rate The Technology Integration For Storage Efficiency During
Peak Seasons And Slum Season.”
Graph-
Distribution of the respondents on the basis of their responses to the
statement, "Rate the technology integration for storage efficiency during
peak seasons and slum season.” Interpretation: Above table presents the results of
traders' responses to the statement, "Rate the technology integration for
storage efficiency during peak seasons and slump seasons." The responses
were categorized into five distinct levels for evaluation. The findings suggest
that a substantial number of traders (SACML-140, NCML-91) expressed that they
highly agree with the excellent technology integration for storage efficiency
during both peak and slump seasons for both companies. Conversely, a small
number of traders (SACML-35, NCML-58) indicated that they consider this
integration to be very poor. The inception
of this research endeavour was conceived with the intention of conducting a
meticulous comparative analysis between two prominent private Agri-commodity
warehousing entities, namely Star Agri Warehousing and Collateral Management
Limited (SACML) and National Collateral Management Services Limited
(NCML/NCMSL), both actively operating in the vibrant agricultural landscape of
Bikaner, Rajasthan. The overarching
objective of this study is to delve into and address a set of pivotal
inquiries, illuminating various dimensions of the Agri-commodity warehousing
sector These inquiries includes a nuanced exploration of the marketing
strategies employed by SACML and NCML/NCMSL, with a particular focus on their
efficacy in enhancing the efficiency of goods storage during both peak and
slump seasons, a comprehensive examination of the procurement strategies
adopted by these companies for bulk storage of commodities, with a deliberate
emphasis on a customer-centric orientation to enhance the overall experience
for clientele, an in-depth analysis of the warehouse management frameworks
implemented by SACML and NCML/NCMSL, intricately aligned with their distinctive
marketing and procurement strategies, to provide a holistic understanding of
their operational paradigms, an exploration of the additional facilities or
services provided by Warehouse Service Providers (WSP) affiliated with these
companies, transcending the conventional domains of warehousing and collateral
management services. |
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Findings |
A
substantial number of traders, with 140 associated with SACML and 91 with NCML,
expressed a high level of agreement, indicating that they highly agree with the
excellent technology integration for storage efficiency during both peak and
slump seasons for both companies. In contrast, a small number of traders (35
for SACML and 58 for NCML) indicated that they consider this integration to be
very poor. This divergence in opinions underscores the varying perceptions
among traders regarding the effectiveness of technology integration for storage
efficiency implemented by Star Agri Warehousing and Collateral Management
Limited (SACML) and National Collateral Management Services Limited
(NCML/NCMSL) across different seasons. |
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Conclusion |
Moreover, both
entities place a premium on cultivating and nurturing robust relationships with
financial institutions, essential for instilling client trust and bolstering
competitiveness in the market. Additionally, they underscore the paramount
importance of maintaining a stable and skilled workforce to guarantee seamless
and effective operations. SACML distinguishes itself through its innovative offerings, such as bulk storage processors, which serve as a benchmark for industry advancement and excellence. Collateral management, with its emphasis on safety and fairness, remains a non-negotiable priority for both SACML and NCML/NCMSL, underscoring their unwavering commitment to industry best practices. By consistently prioritizing customer needs, fostering a culture of innovation, and upholding operational excellence, SACML and NCML/NCMSL adeptly navigate the myriad challenges of the market and spearhead sustainable growth within the warehousing sector. In summation, SACML undeniably demonstrates superior performance across key domains, including regulatory compliance, operational efficiency, customer satisfaction, and innovative service offerings, firmly establishing itself as the preeminent leader in the warehousing and collateral management sector. |
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Limitation of the Study | 1. One notable limitation of this study pertains to the sample size. The study involved 250 traders from Agri-Commodity Businesses in the Bikaner district of Rajasthan. While this sample size provided valuable insights, it may not be sufficiently representative of the entire population of traders nationwide. 2. Furthermore, constraints related to time and financial resources posed challenges in conducting a more extensive study. The limited time period and available funds may have restricted the scope and depth of the investigation, potentially influencing the comprehensiveness of the results obtained in the present study. |
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