The Hindu Business Line : `Farmers get 28 pc of what people pay for fruits & vegetables'

Mr Abhiram Seth , Executive Dirctor (Exports), Pepsico India Holding Pvt Ltd, addressing the 4th National Agri-Business Seminar in the Capital on Friday. — Kamal Narang

New Delhi , Aug. 12

WE all know that farmers get a fairly small share of what the end-consumer pays for their produce. But data now available shows that a farmer actually gets less than 30 per cent of what people pay.

Data shared by the Agricultural Marketing Advisor to the Government, Mr P.K. Agarwal, shows that out of the Rs 11.6 that a consumer pays for an average fruit and vegetables basket, only Rs 3.3 or 28.44 per cent goes to the farmer. "From the Rs 11.6 that we pay for a one kg basket of fruits and vegetables, the maximum share of Rs 4.4 goes to the trader. The farmer gets only Rs 3.3, and the wholesaler gets Rs 1.7 and the retailer gets Rs 2.5," Mr Agarwal said while speaking at a seminar of agri-business today.

He also pointed out that both farmers and consumers suffer given the high retail mark ups in agricultural produce. "For farm gate prices of Rs 100, milk is available for Rs 160, fish for Rs 220 and fruits and vegetables are available for Rs 350," said Mr Agarwal.

In the context of Rs 2,300 crore set aside by the Government for the National Horticulture Mission, he called upon the industry to suggest which fruits and vegetables to focus on that would help farmers maximise their income. "We would like the industry to tell us which areas to focus on," he said.

Earlier, speaking in the seminar organised by all India Management association (AIMA), Mr Abhiram Seth, Executive Director (Exports), Pepsico India Holdings, said, "We need to create pockets of excellence since the country has a diverse agro climatic zone."

He added that there is a need to harness the trained technical manpower present in the country. "We need to identify the best in the crop, define the parameters, transfer the learnings from the lab to the farmer," Mr Seth said.

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