Amrutha Avasarala, Pune
According to the report, the farmers’ share of the consumer rupee is projected to be roughly 33% for tomatoes, 36% for onions, and 37% for potatoes.
Almost three-quarters of the price that customers pay to purchase fruits and vegetables from the market goes directly to wholesalers and retailers.
According to studies on vegetables, pulses, and fruits inflation conducted by the Reserve Bank of India (RBI), an analysis of farmers’ share in consumer rupee for the three key vegetables – tomato, onion, and potato (TOP) – suggests that farmers are receiving around one third of the price that a consumer is paying.
According to the report, the farmers’ share of the consumer rupee is projected to be roughly 33% for tomatoes, 36% for onions, and 37% for potatoes.
According to the RBI study, farmers’ shares in the consumer rupee amount to 31% for bananas, 35% for grapes, and 43% for mangoes inside the domestic value chain. It states that although the realized price of grapes is higher than that of the domestic value chain, the percentage of mangoes in the export value chain is larger.
A number of RBI research papers mention that the rest is apportioned by the wholesalers and retailers – unlike other sectors like dairy, where farmers are getting around 70 per cent of the final price.
When evaluating the value chains for pulses, the study calculated that, for gram (chana), almost 75% of the rupees that consumers spend on the product return to farmers; for moong and tur, the share is approximately 65% and 70%, respectively.
RBI studies indicate that TOP veggies do not have an effective value chain system, in contrast to cereals and dairy products, where procurement and marketing are more developed. The primary reasons for this include the crop’s perishable nature, its seasonal and geographical concentration, the dearth of suitable storage facilities, and the abundance of middlemen.
The COVID-19 pandemic and subsequent nationwide lockdown in 2020 brought to light supply chain and marketing infrastructure constraints for TOP throughout the nation. According to the report, farmers are frequently observed throwing away their products during the flush season or turning to distressed sales when prices fall significantly below their expenses of production.
But during the lean season, customers are more pressured by prices. Due to an ineffective marketing structure, a lack of well-integrated value chains, and a growing disparity between what farmers receive and what customers pay, TOP is experiencing a boom-and-bust cycle.
In terms of production and consumption, the three main crops in the vegetable kingdom are tomato, onion, and potato.