Recycling Business - provides livelihood to as many people as an airlines sector in India. However only 5% of the people are educated and connected. Almost 80% of the people are kabadiwalas or petty traders who merely serve as channel handlers for the top 5%. This cream of 5% are thus able to mint money due to lack of information among the rest of people below them in the industry.
This is similar to agriculture business where farmers were not aware of the final price at which the dalal sells the stock in wholesale market. Lack of information had always allowed them (dalal) to earn money in the trade, until ITC chaupal came in. With ITC's e-chaupal, farmers are able to get best price of the offering and improve the efficiency in channel. Similarly Recycle Trade India - tends to get the channel partners informed of the pricing, requirement of scrap and business options available in this sector.
Increase in penentration of internet, education and newspaper will help reduce the dependancy of the channel on top layer and the margins will be then shared among the second layer of channel too. Measures will be required by Government to increase awareness of the business and help the channel improve the efficiency.
This is similar to agriculture business where farmers were not aware of the final price at which the dalal sells the stock in wholesale market. Lack of information had always allowed them (dalal) to earn money in the trade, until ITC chaupal came in. With ITC's e-chaupal, farmers are able to get best price of the offering and improve the efficiency in channel. Similarly Recycle Trade India - tends to get the channel partners informed of the pricing, requirement of scrap and business options available in this sector.
Increase in penentration of internet, education and newspaper will help reduce the dependancy of the channel on top layer and the margins will be then shared among the second layer of channel too. Measures will be required by Government to increase awareness of the business and help the channel improve the efficiency.
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