Farmers’ labour in vain

Deccan_Herald Shruthi H M,

Bangaloreans continue to pay high prices for vegetables and fruits. But the farmers hardly get their due share, as too many middlemen in the supply chain pocket much of the profits.


Baiyappa and Venugopal arrive in the City from Kadiri in Anantapur, Andhra Pradesh, every day before the break of dawn. After enduring long hours of travel transporting their tomato produce, more often than not, their effort turns futile.


The remuneration they get at the Agriculture Produce Market Committee (APMC) yard in Bangalore, just about reimburses their travel cost. And many a time, they do not even recover the train fare. Tomato growers secure about Rs five per kg of the produce at the market yard. By the time it reaches retail outlets in the City, the price goes up to anywhere between Rs 10 and Rs 18.


Baiyappa and Venugopal are one among hundreds of farmers who fail to get a price justifying their efforts at production. “Sometimes we wonder why we even take the trouble of bringing it all the way till here. Then again, it is better than letting it rot in the fields. There are many occasions when people just dump their extra produce in the yard and leave,” Venugopal says.

Prasad Ji''

I guess this sort thing happens all the time. Take the case of Honyebees - they fly for miles and miles
every day - being offered a bribe [of nectar] by the flowers to ferry their pollen. They meticulously create grand inventories of such accumulated honey, having put in very hard work, painstakinly over considerable periods of time.

One fine day a man [read human] finds the honeycomb, takes away all the honey and also destroys
the honeycomb itself. Just how much of the honey stored does a bee get to enjoy relish ?

For the industrious, little flyers, the process start all over again and the cycle repeats itself. just that there is no monetary transaction between Man & Bee - and it is all taken fr granted. But when there is a commercial between two humans then the laws of ethics etc tend to surface up.

Guruvethunai
Yay Yem

maybe this is one way out..

Kisan gets out of the middleman’s jam - India - DNA

The Hindu : Karnataka / Bangalore News : Two more shandies open

http://mobileet.timesofindia.com/mo...ngalore&edname=&articleid=Ar01000&publabel=ET

but the devil does not stop working, does it?

heard that middlemen are the chief instigators to oppose walmart and carrefour.. for these biggies buy directly from the farmers, bypassing the multi level baniyas inbetween.

now some may say that walmart eventually will squeze the farmer for lower price. just think through that. if the farmer goes bankrupt, walmart has no supplier. apparently in gujarat, mcdonals has dedicated potato farmers, who grow potatos only for mcdonald fries. havent heard any feedback about how the farmers have prospered (or not) with the agreement from mcdonalds though.

Business Line : Industry & Economy / Agri-biz : McDonald

Metro Cash & Carry, one of the world’s largest distributors of food, set up its Indian operations in 2003. Based at Bangalore, METRO has been actively promoting innovative training programs for local farmers.
Special facilities have been built in the distribution center, for addressing stringent hygiene and safety requirements for food products, which include humidity/ moisture control facilities; 20% of space is temperature controlled (i.e. approx 40,000sq. ft.) to ensure quality of merchandise; temperature controlled storages and selling space for fresh perishables; cold storage space kept at varying temperatures depending on nature of perishables like fruit& vegetables, fresh meat / fish, and dairy/dairy products; and also temperature controlled vehicles for transport. Besides setting up the infrastructure, Metro Cash& Carry India is also working closely with the farmers, fishermen and sheep farmers to upgrade the fresh food supply chain for the benefit of all.
A visit to the METRO distribution centers in Bangalore clearly demonstrates the benefits that such a business model could bring to the Indian agricultural sector: air prices: Globally, METRO works with farmers/co-operatives on a long term basis with a transparent written agreement, regular orders and guaranteed payment. Goods, once purchased, are not returned to producers for any reason. METRO based on its experience would advise the farmers about what market needs, how to grade the produce to meet the market requirements, which would result in better price realization for the farmers.
Reduction of Wastage: METRO work closely with the farmers in the areas of grading, packing of the produce and transportation of the same in temperature controlled vehicles to reduce wastage and further store them in temperature controlled conditions to enhance shelf life. This, along with the elimination of multiple handling, ensures that the farmer gets better value for his harvest. This is particularly important in developing countries like India which have vast agricultural diversity and resource but lack an efficient supply chain to efficiently reach the produce to end markets without losing a high percentage during transportation or multiple handling of the produce.

i read somewhere that india has 50% of its landmass arable and agriculturable. which is the highest in the world. meaning we have potential to feed upto twice our population... with good and modern practices - like good water management, drip farming, coolers and canners to take care of products on time - just like we can get apples round the year in canada, even though all of these are harvested in sep/oct timeframe - all due to advanced preservation techniques.

just imagine if banganapalle mangoes are available 12 months of the year - through better preservation management.

it might not look high tech, but there may be a lot to learn from wholesalers from other countries - and i do not mean the west alone. malaysia for example has far better infrastructure management than india, i think. or korea for that matter.

yes, inevitably farms will be consolidated, as marginal farming may not be so attractive, as a 9-5 urban job. let us hope for the best...

In the midst of the political cross fire over the impact of retail foreign direct investment (FDI) on small traders, the question is will FDI in retail benefit farmers who would be the back bone for the supply chain to hyper markets.
CNN-IBN traveled across villages in Punjab where Bharti Wal-Mart has been involved in sourcing directly from farmers.
Far from the raging retail debate, about 130 farmers from seven villages at Malerkotla tehsil in Punjab have been supplying their produce to Bharti Wal-Mart for more than two years now (December 2011).

Farm products are picked up daily and directly and transactions are recorded in a passport given to every farmer. About 30 tonne of vegetables are picked up everyday. Earlier, farmers were at the mercy of middlemen at the Mandi.
"Whatever vegetables we take to Mandi, we get about Rs 10 bonus on them. Then those vegetables are taken to retail market for which we don't have to pay anything," said Sunny, a farmer.
Farmers who lose out to middlemen and absence of weather control storage also get some tips on crop planning and management. Once products are sourced and processed, it comes to one of the sprawling shop floor. Bharti Wal-Mart has about 14 such floors across the country.

the corruption of the vested interests have criminally downgraded the country.

do not underestimate the power of the middlemen. these are the backbone of political party muscle power and money.

to give you an idea: why is auto rickshaw fares in chennai so high and why the meter but a toy? because politicians, police and the vested interests, each have benami ownerhsip of autos. it is a huge source of profit for them, ie daily cash flow of several hundred ruppees, whether the poor auto driver gets any savaari or not.

when i think of such odds, i have a sick feeling in my stomach.

years ago, friends of mine, immigrated to canda from living in africa. one was from burundi, which for the whole country, had just one (yes only ONE) doctor that too, a perpetually drunk belgian, disbarred in his country. so much so, whenever his family developed anything more than a fever, his company flew him to nairobi.

siutation is not better in nairobi airport either. on each entry and exit, per person, he used to have hundred dollar bills, inside his passport, for a smooth and trouble entry or exit - all paid for by his company. indian owned but well versed in the art of greasing palms. the profits made were more than enough to make up for these petty bribes.

when i look at the bribe volumes in india, i am still aghast. the corruption started early, soon after independence. i know an ics officer long after retirment on a monthly basis was paid cash 'pension' by a leading industrial house of madras. in return for favours done during his tenure.

i know personally of when a CM of TN went to USA for 'study visit' he came back with a gold (24 carat) statue of thiruvalluvar. it was confiscated by the customs, and never saw the light of day again. this from an impeccable source who was on duty then, and who was told to hand over the statue to his boss, and to HIS boss, and so on and so on.

george bernard shaw, i think, was right, when he said, 'Democracy is a device that ensures we shall be governed no better than we deserve'. and 'Power does not corrupt men; fools, however, if they get into a position of power, corrupt power'. where is the hope for such a society?

but then miracles happen. often driven by technology. cell phones, internet, and such, can only be described as miracles, for they have worked wonders in a way to level the society's playing fields in a manner, undreamt of by those who invented these.

thanks and sorry for a longwinded blabber

kunjuppu said:

the corruption of the vested interests have criminally downgraded the country.

do not underestimate the power of the middlemen. these are the backbone of political party muscle power and money.

to give you an idea: why is auto rickshaw fares in chennai so high and why the meter but a toy? because politicians, police and the vested interests, each have benami ownerhsip of autos. it is a huge source of profit for them, ie daily cash flow of several hundred ruppees, whether the poor auto driver gets any savaari or not.

when i think of such odds, i have a sick feeling in my stomach.

years ago, friends of mine, immigrated to canda from living in africa. one was from burundi, which for the whole country, had just one (yes only ONE) doctor that too, a perpetually drunk belgian, disbarred in his country. so much so, whenever his family developed anything more than a fever, his company flew him to nairobi.

siutation is not better in nairobi airport either. on each entry and exit, per person, he used to have hundred dollar bills, inside his passport, for a smooth and trouble entry or exit - all paid for by his company. indian owned but well versed in the art of greasing palms. the profits made were more than enough to make up for these petty bribes.

when i look at the bribe volumes in india, i am still aghast. the corruption started early, soon after independence. i know an ics officer long after retirment on a monthly basis was paid cash 'pension' by a leading industrial house of madras. in return for favours done during his tenure.

i know personally of when a CM of TN went to USA for 'study visit' he came back with a gold (24 carat) statue of thiruvalluvar. it was confiscated by the customs, and never saw the light of day again. this from an impeccable source who was on duty then, and who was told to hand over the statue to his boss, and to HIS boss, and so on and so on.

george bernard shaw, i think, was right, when he said, 'Democracy is a device that ensures we shall be governed no better than we deserve'. and 'Power does not corrupt men; fools, however, if they get into a position of power, corrupt power'. where is the hope for such a society?

but then miracles happen. often driven by technology. cell phones, internet, and such, can only be described as miracles, for they have worked wonders in a way to level the society's playing fields in a manner, undreamt of by those who invented these.

thanks and sorry for a longwinded blabber

Click to expand...

Dear Kunjuppu,

A very nice and relevant post! But do you see any sort of "miracle" happening in India?

Your statement about the ICS officer receiving life-long 'pension' reminds me of an RBI officer at a very senior level receiving similar payments during the 1980's. The interesting part is this officer was a very pious, orthodox, brahmin (Madhva, I suppose) of the type which our "brahministic" members would have adored!!

hi
in india..farmer is always underpaid...these middle men has very big gang..from politician to police...everybody ready to

protect middle men...becoz he helps in palm greasing.....bribe became a commission/service charge now....so many

farmers committing suicide in maharastra /other states...a lot of wasting of wheat in FCI godowns....we never

learn from tragedies....

A 2003 analysis of India’s agricultural growth from 1970 to 2001, by Food and Agriculture Organization of the United Nations, identified systemic problems in Indian agriculture. For food staples, the annual growth rate in production during the six-year segments 1970-76, 1976–82, 1982–88, 1988–1994, 1994-2000 were found to be respectively 2.5, 2.5, 3.0, 2.6, and 1.8 percent per annum. Corresponding analyses for the index of total agricultural production show a similar pattern, with the growth rate for 1994-2000 attaining only 1.5 percent per annum. The low growth rates may constitute in part a response to inadequate returns to Indian farmers. India has very poor rural roads affecting timely supply of inputs and timely transfer of outputs from Indian farms, inadequate irrigation systems, crop failures in some parts of the country because of lack of water while in other parts because of regional floods, poor seed quality and inefficient farming practices in certain parts of India, lack of cold storage and harvest spoilage causing over 30% of farmer's produce going to waste, lack of organized retail and competing buyers thereby limiting Indian farmer's ability to sell the surplus and commercial crops. The Indian farmer receives just 10 to 23 percent of the price the Indian consumer pays for exactly the same produce, the difference going to losses, inefficiencies and middlemen traders. Farmers in developed economies of Europe and the United States, in contrast, receive 64 to 81 percent of the price the local consumer pays for exactly the same produce in their supermarkets.
Even though, India has shown remarkable progress in recent years and has attained self-sufficiency in food staples, the productivity of Indian farms for the same crop is very low compared to farms in Brazil, the United States, France and other nations. Indian wheat farms, for example, produce about a third of wheat per hectare per year in contrast with wheat farms in France. Similarly, at 44 million hectares, India had the largest farm area under rice production in 2009; yet, the rice farm productivity in India was less than half the rice farm productivity in China. Other food staples productivity in India is similarly low, suggesting a major opportunity for growth and future agricultural prosperity potential in India. Indian total factor productivity growth remains below 2 percent per annum; in contrast, China has shown total factor productivity growths of about 6 percent per annum, even though China too has smallholding farmers. If India could adopt technologies and improve its infrastructure, several studies suggest India could eradicate hunger and malnutrition within India, and be a major source of food for the world.
Indian farms are not poor performing for every crop. For some, Indian farms post the best yields. For example, some of India's regions consistently posts some of the highest yields for sugarcane, cassava and tea crops every year.


I understand there is reluctance to bringing in MNC, but a farm cooperative may be better solution. The farmer will also benefit from guaranteed price.

In India they have accepted to live with corruption (to a degree). So trying to wish away corruption is not going to work. The progress has to be achieved in spite of the corruption. The Auto industry and IT industry has shown that it is possible to that. So we have to get the same efficiency in the agriculture sector.