Edible Agro Products Limited (EAPL) faced a third consecutive year in 2010 in which the company had received less than 20 percent of the expected quantity from the production of the harvest.
The director of the company was reviewing the production from Gujarat Til-2. The company in 2008 introduced a superior variety of white sesame in West Bengal with a hope to bring revolution in sesame production and to increase the loyalty from the farmer of West Bengal. But this plan had not met with its objectives yet.
The questions that cases poses: Should the company shuts down its sesame production and focus only on its oil trading business? Does the strategy, used by the company for the awareness of white sesame to the farmers who are not formally educated, want some modification? Is there any need to improve EAPL’s communication policy with the farmers? How to resolve the issues from the farmers? How the company should avoid the malpractices, such as the selling of the produce harvest to other traders at a cost which is higher? Does it need to change the existing pricing policy?
The writer, Atanu Adhikari, has affiliation with Indian Institute of Management Kozhikode.
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