Tuesday, March 11, 2008

Farmers cheated in the long Profit chain

The price of all the products have risen in the past years .The farm input cost has also risen sharply. But the price that a farmer gets for a crop is still the same . For e.g. the cost of soybean oil has increased from Rs.25 to Rs.50 in last ten years but farmers are paid for soybean at the same price of Rs.900 per quintal since beginning.
Secondly a farmer never gets the right share of profit .A quintal of wheat for example is fixed at the price of Rs.1100.A farmer sells wheat trader or middle man or mill owners ,at the rate of Rs.600-700 per quintal because the middleman pays him right away.The middle man sells it at the fixed rate of Rs.1100 there by earning major profit straight away. At the same time,mill owners on the other hand produce the following products from a quintal of wheat:
Suji 10 kg @Rs. 20=Rs.200
Maida 10 kg @Rs. 20=Rs.200
Aata 70 kg @Rs. 12=Rs.840
Choker 10 kg @Rs. 10=Rs.100
Total earning =Rs.1340

Similarly Mustard has a fixed price of Rs.3100/quintal.Farmer is paid it at the rate of Rs.1500 by middleman.Trader sells it at Rs.3100.Out of one quintal, the following products are made by processing mills:
Mustard oil 45 kg @Rs.70=Rs.3150
Khali 55 kg@Rs.7=Rs.385
Total profit==Rs.3535

The story is same for other crop produce and processed forms.Why cant a farmer get a share in this profit chain?

1 comment:

Amrit said...

I think that your point with regard to the price of soyabean is not valid... as an employee of ITC limited i myself have paid an upward of Rs 2000 per quintal for soyabean across state of Maharastra, Madhyapredesh and Rajasthan.