Thursday, May 08, 2008
Watching markets work: tender coconuts
Rajesh Gajra has an article in Business World about the business of growing, transporting and selling tender coconuts across a supply chain that spans more than 1000 kilometers and contains no large firms. One fascinating element of this is the markup from roughly Rs.3.5 per coconut at the farm gate to Rs.15 per coconut in the hands of the customer.
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ReplyDeleteIts a miracle. What with the toll at every highway and rent seeking policemen at every state border. Apparently our courts decided that it is ok to impose tolls on the existing roads (ostensibly to improve them) and not just for creating new infrastructure.
ReplyDeleteOn a different note I am not sure the if the mantra of PPP(Public Private Partnership) is a ruse for crony capitalism. Either way even with the best of intentions our bureaucracy signs on dotted line in favor of private parties in PPP project contracts. Oversight from citizen bodies is sorely lacking due to lack of transparency and anti-competitive bidding criteria followed by many PPP projects.
Sir i recently started reading your blog. Sir you write brilliant.
ReplyDeleteThe first article i read was how to control inflation.
Keep going.!! Best Luck.