GCC to appoint dealers in other states to market its branded honey

With honey procurement levels going up and its 'Girijan' brand of honey enjoying the number one position in the state, the Girijan Co-operative Corporation Limited (GCC) is now eying markets in other states.

GCC is now planning to go in for tie-ups with dealers in Delhi, Bangalore, Tamil Nadu and Orissa to market its branded honey.

"We have been receiving quite a few enquires from Delhi, Bangalore, Tamil Nadu and Orissa to market our 'Girijan' brand honey in those states. We are going to tie up with some distributors in these states shortly," PDV Prasad, general manager (sales) of GCC, told Business Standard.

GCC's honey procurement increased by 700 quintals this year. Normally, GCC procures honey from the tribals across the state during June-December.

In the 2003 season, the corporation collected close to 1,800 quintals of honey while it procured 2,500 quintals in the 2004 season.

"We have procured 2,500 quintals of honey between June and December last year, which was the highest in the history of GCC. The weather conditions were favourable for honey production last season and so we have increased the procurement price from Rs 60 per kg to Rs 80. Due to this, our honey procurement levels increased significantly," Prasad said.

GCC currently sells its 'Girijan' brand honey across the state through its dealer network. Due to the high demand, it has enhanced the selling price of honey from Rs 160 per kg to Rs 180 a couple of months ago. Due to the high production, the corporation has decided to appoint dealers outside Andhra Pradesh to market its products, particularly 'Girijan' honey.

"With the honey procurement levels going up as never before, we expect a significant growth in retail sales this fiscal," Prasad said. GCC has achieved a retail sales turnover of Rs 5.8 crore last fiscal while it clocked a turnover of Rs 5 crore this year up to December.

"We expect our retail sales turnover to cross Rs 7.5 crore this fiscal of which we expect 40 per cent to be generated from honey sales," he said.

"We were hoping to achieve a turnover of Rs 10 crore this year. But due to the state government's intervention, GCC has diverted its entire stock of tamarind to the fair-price shops without any profit margins and this will impact our turnover," he added.