Article that appeared in The Hindu - September 1, 2011
There is a monopoly that
exists between the private guilds of middlemen, commission agents at whole sale
markets and street vendors and vegetable sellers in the retail market says Mr
Ajay Jhakar, Chairman, Bharat Krishak Sangh.
They make huge profits on sale
of perishable commodities. Since the
produce is perishable the farmer is compelled to sell his crop immediately
after harvest. And since he cannot wait
for a better price he is exploited by the guilds.
The farmer’s share in consumer
price keeps reducing even as the consumer pays more. Perishable produce is purchased by the urban
consumer at 50% more than the price at which the farmer sells his produce. Adds Mr Jhakar – no other monopoly in the world is
this profitable. The consumer along with
the farmer is being exploited.
It is therefore no surprise
that world’s largest retail organisations are vying for the Indian markets.
He feels that certain conditions
should be incorporated in the deal when FDI in multi-brand retails is being
finalised. They should buy 75% of the
produce directly from the farmer. 50% of
the agriculture produce sold to be purchased from farmers should be mandated to
be within 100 kms of every store. This will benefit all stake holders
especially the small farmer.
Read the full article which
elaborates Mr Jhakar’s views and suggestions here.
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