Farmers get only a third of what consumers spend on vegetables, fruits: Reserve Bank study
In contrast, dairy farmers receive about 70% of the final price of their produce, while egg farmers receive 75% and meat farmers 56%.
Farmers in India receive only a third of the money consumers spend on vegetables and fruits, with the remainder pocketed by wholesalers and retailers, reported The Times of India on Monday citing a series of research papers published by the Reserve Bank of India.
In contrast, dairy farmers receive about 70% of the final price of their produce, while egg farmers get 75%. Poultry and meat producers receive about 56% of the consumer price.
Tomato farmers receive only 33% of the consumer price, while onion farmers get 36% and potato farmers 37%, according to the central bank’s studies on inflation in vegetables, pulses and fruits.
For bananas, the figure stands at 31%. For grapes it is 35% and for mangoes 43%.
The research also found that among pulses, approximately 75% of the consumer rupee spent on gram returns to farmers. The figure stands at 70% for moong and 65% for tur, reported The Indian Express.
The studies suggest that unlike cereals and dairy products, the farmers’ share in the consumer rupee for fruits and vegetables suffers due to their perishability, regionality and seasonality. Inadequate storage facilities and numerous middlemen in the supply chain also contribute to lesser returns for farmers.
The studies, co-authored by agricultural economist Ashok Gulati, suggest that price spikes for these commodities can be forecasted using a “balance sheet approach”, reported The Times of India.
They suggest that forecasting can help stabilise prices by making short-term adjustments to trade policies based on supply and demand.
To mitigate price spikes for tomatoes, onions and potatoes, the studies recommend expanding private markets, utilising the online National Agriculture Market and promoting farmers’ collectives.
Other suggestions include increasing the number of cold storage facilities, promoting solar-powered storage and improving productivity with better crop varieties and polyhouse farming.
Polyhouse farming involves growing crops in a controlled environment, such as a greenhouse.
For milk, poultry and eggs, the central bank’s studies advocate for the creation of feed banks, utilising barren land for grass cultivation and increasing productivity through artificial insemination and disease control.
