Agri Insurance

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Agri Retailer Updates

Agri Retail Opportunities: Dealership Information, Terms and Conditions

The National Seeds Corporation Ltd., (NSC) arranges large scale production and distribution of quality seed of superior varieties and hybrids of various crops. In NSC’s seed marketing efforts, Dealer constitutes an important channel. The terms & conditions applicable to NSC seed Dealership, arrangements are given hereunder and shall form part of the Agreement executed for the purpose.

1. Eligibility

i. Individual firms, partnership firms & corporate bodies including other PSUs.
Ii. Co-operative Societies,
iii. Government Sponsored Krishi Seva Kendra
iv. NGOs involved in Seed Sector.
Registration Certificate / Proof of Business under Shop & Establishment Act should be attached.

2. Past Experience & Turnover:

Dealers should have at least 1 year experience in seed business and should have done an annual average business of at least Rs. 3 lakh from the sale of seeds during that period.

3. Financial Credibility:

Dealer should have a strong financial position. Letter to this effect from the banker mentioning cash credit limit and other facilities sanctioned must be submitted. List of property like own godown/shop/house etc with address must be submitted to NSC.

4. Storage Facility:

Dealer should have good / scientific storage facility for safe storage of seed for minimum 10 M.Tons (attach certification with dimensions). In case of hired godown, copy of lease agreement must be submitted to NSC.

5. Licence / Registration No.:

Dealer should possess the valid seed licence / Registration Number along with shop/sale counter possession proof.

6. Sales Tax / TIN :

Dealer should possess the valid Sales Tax / TIN.

7. PAN of firm/company/society/proprietor with a copy of latest IT return.

8. Shop:

Copy of registration under Shop and Establishment Act of all the outlets of dealer with complete address of each shop and name of authorized persons with contact numbers should be submitted to NSC.

9. Copy of latest audited balance sheet and profit and loss account of company/firm is to be submitted wherever applicable.

10. General Terms & Conditions

Any organization/individual desirous of becoming a dealer of NSC must apply in prescribed form “Application for seed dealership” to the Regional Office. Regional Manager after scrutinizing the form may accept or reject the dealership to the party. NSC has the right to reject the appointment without assigning any reason thereof. Dealer has to accept all the terms & conditions of the dealership agreement without any qualification. On appointment of dealer, certificate of NSC dealership will be issued by RM. The dealership certificate must be prominently exhibited at each sale point of the dealer.

11. Validity & Renewal

Initial validity of appointment is for three years, from the date of signing the agreement. Renewal of dealership will be purely depend upon the performance of dealer. NSC has the right to renew the dealership or reject the renewal. Renewal of dealership will be in writing by RM, NSC.

12. Area of Operation:

NSC Dealer will be for specific district/tehsil/block as mentioned in dealership certificate by NSC. Dealer has to operate in the area for which appointed by NSC. However, NSC has the right to increase, reduce or modify the area of operation.

13. Security Deposit:

Every Dealer shall furnish a security deposit in cash/DD of Rs.25000/- for faithful, observance of terms and conditions. No interest would be payable on security deposit. The security deposit shall not be adjusted against the seed cost for the supplies made.

14. Forfeiture of security Deposit:

In the event of breach of any terms or condition of Dealership agreement. NSC will forfeit the entire security deposit after giving a show cause notice in writing and thus the certificate of appointment and agreement made will be treated as cancelled.

15. Minimum Guarantee Turnover:

The Minimum Guaranteed Turnover (MGT) to be guaranteed by the Dealer for one year shall be Rs. 5 Lakhs (Billing amount). In case of lower MGT, the penalty would be as under:
MGT: Rs 5 Lakh
Achievement upto Rs 4. 5 Lakh: No Penalty
Achievement below Rs 4.5 Lakh: 2% of the shortfall from the MGT

MGT: Rs 5 Lakh
Achievement: Rs 4.10Lakh
Shortfall: Rs 0.90Lakh
Penalty: Rs 0.90Lakh x 2%=Rs. 1800.00
Minimum 3% of the total turnover of the Dealer shall be from vegetable seeds.

Terms & Conditions:
-Dealer shall furnish to NSC the precise addresses of his sub-dealers through whom NSC’s seeds bought by him will be sold at the retail level. The Dealer shall also intimate additions, changes, modifications in the list to NSC from time to time. However, the dealer will be solely responsible for the obligation arising out of all the acts of his sub-dealers.

-Dealer shall be responsible to submit all sales documents required by NSC to be provided to Govt. and other Agencies for claiming benefits / subsidies from them including the name & address of the beneficiary farmers. Dealer has to get the subsidy certificate verified from the concerned State Govt. authorities and he has to maintain the records/ documents desired by the State Govt. authorities and all under the norms of any schemes.

-The Dealer shall neither sell any seed from any other source in NSC’s name nor shall sell NSC seed in any other name.

- NSC shall not be responsible for any damage to the seed after delivery to the Dealer on account of inclement weather, poor management, bad storage, defective transit/handling etc. on the part of the Dealer.

-The Dealer is free to sell/supply the seed to any buyer. However in case of sale to Govt. Dealer has to obtain prior permission from NSC.

-The Dealer is not entitled to handle minikit seed supplies and similar such special schemes/projects and also not eligible for claiming any discount against such supplies.

-NSC reserves right to amend/modify or change any terms and conditions of Dealership agreement by giving due notice to the dealer.

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