Respected Ela behen from Seva Bank has proposed a very interesting and powerful philosophy called “100 Km Principal”. To start with, I was not sure if we as a small company can create a significant economic impact by doing local buying of products / raw materials and services.
Still, we tried to borrow from this principal and implement the hypothesis in our own dairy farm initiative at Village Lisaria, 65 Km from Jaipur. We have made some small steps, and we are happy to share the following observations:
- We give most of the construction contracts at the farm to local people and it is working well in most cases. Contractors have opened their bank accounts and are also accepting to make their “PAN CARDs” to allow for proper TDS deduction.
- Buying my basic raw-material from local market instead of from the larger city. Though, we are still a small buyer, we have been able to push a few local retailers to start accepting net payment against proper bills.