Indian farmers have been exploited for decades by the repulsive middle man system that is prevalent in the country for decades. The money power of the crop contractors, difficulty in accessing to distant markets and high perishability of the produce force the farmers to surrender their precious possessions from land at literally throw away prices. The cooperative sector supposed to be capable of replacing the current system of agri marketing has not yet taken off in any significant way, continuing the misery of the growers. Organized retailing which have come to stay in the country is not able to establish linkages with the growers and integrate their back office operations to any meaningful extent due to many reasons for which solutions lie at the door steps of the GOI.
A recent study in Jharkhand has brought out this reality, literally mocking at out impotency in not doing any thing to address these burning issues. " Based on a primary survey conducted with vegetable farmers, it has been found that the average farmer spends 7.5 hours (two hours to travel to the market and another two hours to return as well as 3.5 hours at the wholesale market itself) to conduct an agricultural transaction that is valued on an average at about Rs 3,000.Further, it has been found that few of the regulated market rules are respected in these markets and that brokers routinely charge commission rates to farmers as well as retailers that exceed the mandated rates".It transpires that the farmer has to fore go 25-38% of the realized price, leaving practically nothing for his efforts in growing, protecting the crop, harvesting, packing and bringing to the regulated market!.
The fact that big retailers are able to by pass the middlemen in many cases and give higher prices for their procurements does not seem to have sunk in with the political bosses at Delhi as reflected by the reiteration by a Parliamentary committee not to permit foreign investments in retailing business. Just bad luck for the Indian farmer. Only hope, for a better wisdom in Delhi, can sustain his will to continue!.
The fact that big retailers are able to by pass the middlemen in many cases and give higher prices for their procurements does not seem to have sunk in with the political bosses at Delhi as reflected by the reiteration by a Parliamentary committee not to permit foreign investments in retailing business. Just bad luck for the Indian farmer. Only hope, for a better wisdom in Delhi, can sustain his will to continue!.
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com
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