INTRODUCTION
In the rural areas small and Marginal farmers harvest different crops in small quantities. Due to this the marketable surplus available to them is very small. They normally collect their produce and take it to the market yard or sell it to local traders / middlemen. In both the cases they receive very low prices for their produce. As they have no access to storage and cannot afford to carry the produce back and forth from their village, they are not in a position to negotiate a good deal.

RUDI: A RURAL DISTRIBUTION NETWORK
It was gradually realized that there is a huge potential for rural retail marketing through networking of the small and marginal producers. But the challenge lies how to rotate the production so that the farmers get the better prices and the consumers also get the better quality at competitive prices. With this in mind the rural distribution network was conceptualized. As the name suggests here the main idea is to distribute the producer’s product through a well-established network at the village level.

“The idea of setting up the Rural Distribution Network is to internally rotate the scarce funds of the rural producers in a way that fetches maximum benefit and brings about positive changes in their lives and to provide multi-user facilities, reduce incidental expenses and build-up an integrated value chain in order to enhance the efficiency of agricultural activities, to reduce the hardships of the producers, processors and to create multiple employment opportunities and an efficient supply of agro-products to rural members”

• Main aim- Quality products produced by the rural producers reach the rural markets under a common brand- RUDI.
• 6,50,000 SEWA members to be further integrated through the Rural Distribution network.
• Technological inputs that will play a significant role in enhancing the quality of rural produce and thus better price realization for the rural producers.
• Assistance in post harvest management of crops, sales management and generating employment opportunities for the rural members through processing & marketing interventions.

VISION

• To provide direct market access to small and marginal farmers. Link up the small farmers to the end customers.

• The capital rotates within the villages, thereby strengthen the rural economy.

MISSION
• To establish RUDI as a national brand over a period of next 10 years.
• Increase the range of processed agro commodities under the brand “RUDI”, to include further value added products that would yield better returns on the investment.
• Achieve profitability in the first year and achieve a sales turnover of Rupees 15 crores within the first five years.
• To tie-up with large retailers and bulk buyers for enhancing the market for RUDI products.

OBJECTIVES
• To provide multiple employment opportunities the to rural women, in the form of procurement, processing, packaging, marketing and management
• To make available products and goods of regular use to the rural consumers and
• To provide market linkage to the small and marginal farmers and other rural producer groups.

The RUDI project was started in Sabarkantha district on a pilot basis on December 8, 2004 and has been very successful in achieving the SEWA’s objective of providing self-employment to the rural women. Consequently we are planning to set up such RUDI projects in all the 11 districts of Gujarat where SEWA has its members. The second RUDI processing centre was started on August 24, 2007 at Dhangadhra in Surendranagar district. Other two processing centres, one each in Anand and Patan districts, have been recently inaugurated in the month of March 2008.

RUDI Multi Trading Company is being established with an objective to internally generate funds for the rural producer groups so as to enhance the quality, capacity and efficiency of production through the use of better technology for the farming, warehousing and post-harvest processing of the agro commodities. This will help in scaling up the profit margins by way of bulk procurement and a well organized sales and distribution network. The profits will then be shared by the members of the rural self-help groups, which will bring a positive change in the economic condition of the marginal farmers and workers who are struggling to survive and are below the poverty line.

The company would enable direct marketing of the agro commodities through the rural retail network that it plans to set up across all the villages in 9 districts of Gujarat. RUDI Company will also enable multiple employment opportunities, reduced incidental expenses, availability of good quality agricultural & non-agricultural products to the rural consumers at affordable prices and required quantity, elimination of middlemen, better earning for the producers and thereby socio economic development of the underprivileged rural people.

Role of District Associations
District Associations are the associations of producer groups, which in fact are “self help groups” of small and marginal farmers. District associations will procure the produce from the producer groups and will process it at the processing centre, which will be owned and run by the District association. At the start of every season DAs and Company will enter into a sale purchase contract. This contract will clearly specify the name, quality, quantity and price of product, company will purchase from district associations. Company will be under obligation to purchase the agreed quantity if they conform to the parameters as specified in the contract. This way company will bear all the market related risk. Role of district association will be to improve the efficiency of the processing centre. Since they will get an assured market at a predetermined price they can easily maximize their profit by reducing the cost of procurement and processing.

Role of SGMH
SGMH will mainly take care of training and capacity building exercise. It will organize technical trainings for Rudibens, women producer groups and staff at processing centres. The trainings will be of two type i.e. Generic and specific. People working in functional areas such as Procurement, Quality control, Processing, Inventory management, Accounting etc will get specific training in their functional area, but people placed at higher-level such as Processing centre in-charge will be trained in all aspects of the business.

Marketing Strategy
Rudi will be promoted as a “value for money” brand. Our products will be positioned as “pure” products being produced by the rural women.

RUDI Punch lines:

“Aapni RUDI aapni Mudi”

“Shreshthata ane Shuddhata ni kadi- RUDI”

OPERATION OF RURAL DISTRIBUTION NETWORK SYSTEM:

ACTIVITIES INVOLVED IN RURAL DISTRIBUTION NETWORK AND THE IMPACT
The major activities involved in RUDI Bazaar are as follows:

• Procurement: Procurement is carried out from all the nine districts where SEWA is working. The surpluses of the farmers are being procured at every village level and which is again stacked at the main centers at the district level. Almost in all the villages there will be a woman who will be responsible for procurement from the same village. So by this activity almost 150 village women get the employment opportunity in one particular district.
• Processing and Packaging: This is another major activity where the rural women are absorbed and get the employment. This includes cleaning, grading, sieving grinding, weighing and packaging & labeling the agro-produce. This involves more than 50 women at each processing center.
• Quality Inspection: The quality inspection needs to be done at various stages starting from procurement, through processing till packaging of the goods. It also includes the storage of the goods and its handling during the transportation to the distribution centers. This activity provides job opportunities to about 10 women in each district.
• Sales Promotion: The main sales promotion includes performing skits at the village level, painting the walls with RUDI messages and other required works. It provides employment opportunity to almost 30 women in a district.
• Sales: Each village will have at least one RUDI saleswoman who will be responsible for selling the RUDI products. This provides direct and continuous employment to on an average 100 saleswomen in one district.
• Transportation: The transportation will be of two types like primary transportation from the village to the hubs, Secondary transportation from the hubs to the village outlets. This involves at least 20 women to perform the loading and unloading of the goods.
• Finance, Accounting, IT and MIS: These activities are most important supporting activities. These activities are the heart of the entire operation. It gives employment opportunity for almost 20 people in each district.
• Continuous Production: This includes production of washing powder, Agarbatti and other products. This will provide the employment opportunities to almost 50 women.

The entire operation of RUDI in one district ensures a stable direct employment to 500 women per month.

IMPACTS OF RUDI ON THE RURAL MEMBERS:

• Rural Enterprise by the women making them self-employed or self-reliant and thereby increasing the standard of living.
• Good quality, pure farm and non-farm products to villagers at affordable prices and right quantity available at their door step. Thus bridging the gap between the village and market.
• The rural producers will benefit in the form of quality and value for money.
• Multiple employment opportunities to the women in the rural area.
• Elimination of middlemen and reduction of incidental expenses in terms of traveling & transportation.
• Internal rotation of funds and impact on Village economy.
• Hubs acting as Integrated Information Exchange Centers.
• Positive changes of globalization and mechanization reach villages.
• Overall Socio-economic development of rural families.