Economics of Business

We are B2B (Business to Business) and B2C (Business to Customers) company. Our revenue model is simple and attractive.

SAI collects nominal fee from collaborative farmers at the beginning and a pre-defined mutually agreed share after the harvest and sale of produce. In lieu, we provide services including farmers’ mobilisation; training and technical support; access to finance, quality inputs and farm machineries; supply chain management with direct marketing to the institutional customers. We strive for the quality service as our charges are based on the volume and quality standard of the final product.

Our second source of revenue is from the industry. We get premium for supply of raw material from their core zone, which not only reduces their overall cost of production but also carbon footprint from transportation due to lower distance.

Our third source of revenue is through value addition and marketing of the inter-crops. As we deal with different service providers including transporters, processers, dealers we negotiate price for bulk order.

Our main expenses include Operational Expenses like staff salaries, their travel, office rent and related expenses, and charges to technical experts. We also spend on farmers’ mobilization; their training and exposure; and procurement of inputs (seeds, saplings, fertilizer, tractor, ploughing, labour).