1. Small group of agriculture consumers form a Society.
2. They contact nearest villages / agricultural markets and identify their prospective needs like rice, wheat, pulses, cereals, vegetables, milk, eggs etc.
3. They enter into agreement for the assured supplies periodically.
4. Advance amounts are paid to finance the farmers to support the operations. They need not approach the financial institutions for loans.
5. The future rates are agreed so that the future prices are fixed.
6. Both the suppliers and consumers know well their yield and rates.
7. Transport needs are also prefixed so that the small transporters are assured fixed business.
8. The agriculture departments render consistent advice to farmers.
9. The agricultural markets can supervise the regular flow of fertilisers, pesticides etc. and there can not be variations in the the demands and supplies. more
G.K.Naidu, Hyderabad more