Google+ Consumer Psyche: Networking to eliminate middlemen


Tuesday, March 3, 2009

Networking to eliminate middlemen

TOI reports that Chennaiites can look forward to buying all kinds of farm-fresh vegetables in their neighbourhood itself, directly from farmers, in the near future. With a view to eliminating the role of middlemen and commission agents, a cluster of farmers' associations in and around Dharmapuri are planning to reach out directly to customers, especially in cities like Chennai, Coimbatore and Kochi.

"When the retail price of vegetables in Chennai hover around Rs 30 per kg and the wholesale price ranges from Rs 15 to 18 per kg, we farmers get hardly Rs 6 to Rs 7 per kg at the farm. The commission agents make more money than us. They buy from us at Rs six per kg and sell at Rs 14 to 15. Hence, we had to evolve a formula to target the customers directly. Cities will consume whatever quantity we produce and hence there is no need to worry about unsold stock. Further, we can sell at Rs 5 to Rs 10 less per kg than the price at which other retailers sell and still make a lot more money."

He said the idea was to rope in as many farmers as possible into the fold and generate enough resources to establish the network. "We are looking at enrolling more than 1000 farmers. In Dharmapuri district alone, we have more than 1000 active farmers engaged in precision farming the latest technology adopted in vegetable farming - methods. But our network will cover several other districts as well and we will be able to supply all types of vegetables. We hope to hit the market by March-end."

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