4.3 Procurement
Procurement of the paddy by the rice processing company requires a differentiated approach, as
varieties of paddy are seasonal in some parts of country while on the other hand in some parts of
country paddy is cultivated three times a year. The rice processing company should forecast
collaboratively with the help of retailer for the optimum demand of the rice which must be
consumed during the year, and should procure the planned paddy at the time of season of rice
production in the whole country. The reason behind is, at that time because of the production of
rice in the whole country the paddy will be available at the lowest price of the whole year. When
the demand fluctuates and more quantity is demanded than forecasted, rice processing company
can source the paddy from areas where there is still the season of paddy cultivation.
Seasonal forecasting and procurement is also very essential as some of the varieties of paddy are
seasonal and geography specific. For the procurement of these varieties the paddy processing
company should forecast their whole year’s demand and procure them in their season in the
particular geography. Procurement of these varieties of paddy in the off season may result in
higher cost to the rice processing company.
Another approach of procurement should be made on the basis of nature of cultivation of the
paddy. While procuring the organic paddy, the rice processing company should properly monitor
and control the whole paddy cultivation process. It should closely watch and monitor the whole
process from seeding, manuring, and till the harvesting because any effort from the farmer to
increase the yield may result in pesticide and chemical content in the paddy. In the same way
some parameters and monitoring for the inorganic production is also required because, failing to
which may result in excessive content of pesticide and chemical in the paddy because of the
farmer’s effort to gain more yield, which is neither good for customer’s health nor it is for the
business of company in the long run. Excessive use of pesticides may also make the land barren
or infertile for few years and rice processing company may face the problem of non-availability
of raw materials.
4.3 ProcurementProcurement of the paddy by the rice processing company requires a differentiated approach, asvarieties of paddy are seasonal in some parts of country while on the other hand in some parts ofcountry paddy is cultivated three times a year. The rice processing company should forecastcollaboratively with the help of retailer for the optimum demand of the rice which must beconsumed during the year, and should procure the planned paddy at the time of season of riceproduction in the whole country. The reason behind is, at that time because of the production ofrice in the whole country the paddy will be available at the lowest price of the whole year. Whenthe demand fluctuates and more quantity is demanded than forecasted, rice processing companycan source the paddy from areas where there is still the season of paddy cultivation.Seasonal forecasting and procurement is also very essential as some of the varieties of paddy areseasonal and geography specific. For the procurement of these varieties the paddy processingcompany should forecast their whole year’s demand and procure them in their season in theparticular geography. Procurement of these varieties of paddy in the off season may result inhigher cost to the rice processing company.Another approach of procurement should be made on the basis of nature of cultivation of thepaddy. While procuring the organic paddy, the rice processing company should properly monitorand control the whole paddy cultivation process. It should closely watch and monitor the wholeprocess from seeding, manuring, and till the harvesting because any effort from the farmer toincrease the yield may result in pesticide and chemical content in the paddy. In the same waysome parameters and monitoring for the inorganic production is also required because, failing towhich may result in excessive content of pesticide and chemical in the paddy because of thefarmer’s effort to gain more yield, which is neither good for customer’s health nor it is for thebusiness of company in the long run. Excessive use of pesticides may also make the land barrenor infertile for few years and rice processing company may face the problem of non-availabilityof raw materials.
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