India’s daily turnover from vegetables and fruits could be easily about Rs. 275 crores (US$ 59 million). The estimated cost of ‘wastage’ per day, is around Rs. 130 crores (US$ 27 million). In summary, it’s a lot bigger than some of the Indian IT sector’s daily turnover”, says Mr. Venkat Subramanian, Founder and Managing Director, Matchbox Solutions, a company that uses technology to solve critical issues in agriculture.
Efarm, one such solution, uses technology to provide supply chain efficiency for procuring and delivering fruits and vegetables grown on rural farms.
“And what makes it worse is that agriculture is being always run by uneducated, rural people lacking advanced technologies. Whereas the Indian IT industry employs the cream of the world,” he adds.
Short supply
Food, shelter, and clothing, are considered the basic things any growing economy cannot do without.
“Of these, the only sector perennially going to be in short supply is food — for the simple reason, people are quitting agriculture and moving to cities. Most important, the youth do not fancy an agri-career,” he emphasises.
Absence of valid data to provide a forecast for this industry correctly makes things more difficult.
“Many term agriculture as a risky business, but can you name any one industry devoid of risk? Typically high risk implies high return. But how come people perceive agriculture to be a ‘high-risk, low-return’ venture?” he wonders.
According to Ms. Srivalli, CEO, risks and unpredictability are part of any industry. Compared to such ‘man-made’ disasters, the agri-economy endures mostly the ‘natural’ ones that are far more predictable.
All the odds
“Inspite of all the odds stacked against a farmer, it is surprising that we are actually able to get food on our plates every day. Today, the farm price for tomatoes hovers around Rs 5/kg.
“In the city, whole sale is being priced at Rs.9/kg and in retail it may be between Rs 17-20/kg. On an average, the markup in vegetables is 5 to 6 times,” she explains.
In every industry, the prices are always being driven by customer demand and tastes. But in India, it is the suppliers – middlemen – who control the the agriculture sector and customers face the brunt.
Need assistance
“Ironically a rather Utopian concept prevails in our country’s agriculture system — a farmer can do all these tasks himself, from farm to fork.
“Farmers need assistance in planning cultivation, marketing produce, managing finances, but there is no one to help. Agriculture institutions and many NGOs only assist cultivation, and aren’t competent to handle management-related tasks,” says Ms. Valli.
Confusing
Farm policies are confusing and contradictory, according to Mr. Venkat.
“There are Central departments involved, but States control their local implementation.
There are innumerable ministries and schemes that are often redundant and over-lapping.
The prime vote bank being villagers — it is a major turf war for several vested interests,” he adds.
Overlapping
Instead of letting such contradictions and overlapping continue to dog agriculture, the Centre and States can sit together to make it a complete, comprehensive package for farmers with a seamless implementation mechanism in place.
So how can this be changed?
“Most government statistics on agricultural sector are at least five years old, and often projected from the last census. Absence of a proper system to track the exact cultivation patterns, makes things difficult.
“And in the name of improving cultivation the Government pumps in several thousand crores, not bothering to know what crops are being sown in different regions” asserts Ms. Valli.
“Be a conscious consumer. Ask questions. Watch the price bill carefully for signs of price rise. Find where the products came from (in Chennai, they may say the carrot comes from Nilgiris, real Nilgiris vegetables often hardly reach Chennai market).
Questions
Ask your agricultural minister or at least the department official through email if possible whether they visit villages or talk to a farmer?” says Mr. Venkat.
For more details contact Mr. Venkat at email: venky@matchboxsolutions.in and efarm.venky@gmail.com, mobile: 98847 61354, phone:044- 43577236(off) and 24450613 (res).
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