Com­mon Ser­vice Cen­tres to boost FMCG growth in ru­ral India

Rural & Marketing - - UPDATES -

The fast mov­ing con­sumer goods (FMCG) sec­tor is ex­pected to get a ru­ral boost with gov­ern­ment's move to sell goods via the com­mon ser­vice cen­tres (CSCs) in ru­ral India.

FMCG com­pa­nies will now be able to sell their prod­ucts via the 25,000 CSCs across the coun­try. The gov­ern­ment via CSCs pro­vides a host of ser­vices re­lated to ra­tion cards, rail­way ticket book­ing, birth cer­tifi­cate and so on. They also train peo­ple in us­ing dig­i­tal ser­vices.

Ac­cord­ing to of­fi­cials, peo­ple will be able to come to these cen­tres to or­ders goods on­line via the com­pany web­sites or mar­ket­place run by CSC. The prod­ucts will be de­liv­ered to their homes di­rectly. The gov­ern­ment has al­ready chalked out a deal with Baba Ramdev-backed Patan­jali Ayurveda. Ne­go­ti­a­tions are on with other ma­jor FMCG play­ers like Hin­dus­tan Unilever and Proc­ter and Gam­ble.

The gov­ern­ment claims that e-com­merce would get a boost in ru­ral India via the CSCs. The me­dia re­port says that vil­lage-level en­trepreneurs, who run CSCs, would get a com­mis­sion in range of 10-20 per­cent on sold prod­ucts.

The gov­ern­ment is hop­ing to boost daily trans­ac­tions to around Rs 10 crore from the cur­rent Rs 2 crore via CSCs. Cur­rently, ru­ral mar­ket ac­counts for 40 per­cent of to­tal FMCG mar­ket in India. The FMCG mar­ket, in ru­ral and semi-ur­ban ar­eas, is ex­pected to cross USD 100 bil­lion by 2025, ac­cord­ing to a study. Avail­abil­ity of dig­i­tal in­fra­struc­ture across var­i­ous lo­ca­tions along with sen­sors and cus­tomised ap­pli­ca­tions will help pro­vide bet­ter in­for­ma­tion re­lated to en­vi­ron­men­tal chal­lenges like pol­lu­tion, cli­mate change, weather mon­i­tor­ing etc.

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