Strategy to get maximum profit in agriculture
Profit of any business mainly depends on demand and supply principle. Now a days, farmers are decreasing and consumers are increasing. Which means demand for agriculture products will be increasing all the time. So, there is no need to worry about demand and supply.
Latest example :- At the time of Covid-19 complete businesses has been closed including Cinema halls, Transport, Collage etc., except food and agriculture, Medical related organisations.
Based on my experience, I’m writing this article. In case of anything wrong just comment below
After demand and supply policy, profit of an business depends on 2 things (cost and sale price). To get maximum profit in agriculture, you should keep your cost as low as possible and as well as to sell at maximum rate.
Points to be noted in decreasing cost :-
- Mediator’s profit : Generally retailer price is 50% higher than the producer price.
Example : Let take this example for analysis. If a company produces a product at a cost of 90 rs. Producers sell that at 100 rs to whole seller. He will sell that product after adding his expenses and profit at 125 rs to retailer. Now, retailer also do the same thing and sells the product to consumer at 150 rs.
If farmers purchase that product from directly for producer he will definitely gets at a lower price than retailer. So, my advice is to form into groups and purchase agriculture inputs directly from producers.
Points to be noted in increasing sale price :-
Price of the agriculture product will not be decided producers in India. But, decided by the middle man. This seems to be funny and real. So, as of previously said eliminating middle mans will definitely increases the profit for farmers.
Removing middleman in every aspect of producing agriculture products will definitely increase farmers profit. So, try to remove middle man in agriculture