MY AGRI JOURNEY CONTINUES... CABBAGE TALES
MY AGRI JOURNEY CONTINUES... CABBAGE TALES
As it was shared 20 days back, we sold our 1.5 acres standing cabbage crop for 2.75 lakhs@ Rs. 1.8 lakes/acre. Trader who bought the crop,paid us one lakh as advance and lifted about 30% crop during last week of November and got good rate @ Rs.23/kg average in Vijayawada market.
As the prices were more or less range bound for 10 days , in anticipation of same rates for another month or so, he stopped further harvesting thinking that he can take advantage of weight gain.
As Vijayawada market cabbage arrivals increased with supplies from Pune and Bangalore and also due to downward trend in onion rates, cabbage crashed to Rs 10/kg suddenly from Rs23/kg. Further price drop is expected.
The standing crop which was sold for Rs 1.8 lakhs/ acre is now available for less than Rs 0.4 Lakhs /acre and even further downward trend is expected.
Trader came to us with sorrow face and expressed that he is not in a position to pay, as for the contract terms. Like any other farmer we too developed soft corner and reduced Rs 75000/- from contract value.
The morale of this narration is that how can one expect farmer to survive in such volatile environment? For farmer the annual land lease will go up at least with inflation rate, he has to buy seeds, fertilizers, pesticides, labour etc on annual incremental basis as everyone in this farming supply chain operate on cost plus basis and ensure their fixed returns on investment. Whereas the farmer who invest everything on cost plus basis, will have to put himself in a gambling situation in markets as no policy protection to farmers on cost plus basis and end up taking severe stress and strain.
EVERYONE IS GAINING AT THE COST OF FARMER.
HOPE POLICY MAKERS ARE LISTENING TO US.
B G Reddy-9866889246
grbonthu@gmail.com
As it was shared 20 days back, we sold our 1.5 acres standing cabbage crop for 2.75 lakhs@ Rs. 1.8 lakes/acre. Trader who bought the crop,paid us one lakh as advance and lifted about 30% crop during last week of November and got good rate @ Rs.23/kg average in Vijayawada market.
As the prices were more or less range bound for 10 days , in anticipation of same rates for another month or so, he stopped further harvesting thinking that he can take advantage of weight gain.
As Vijayawada market cabbage arrivals increased with supplies from Pune and Bangalore and also due to downward trend in onion rates, cabbage crashed to Rs 10/kg suddenly from Rs23/kg. Further price drop is expected.
The standing crop which was sold for Rs 1.8 lakhs/ acre is now available for less than Rs 0.4 Lakhs /acre and even further downward trend is expected.
Trader came to us with sorrow face and expressed that he is not in a position to pay, as for the contract terms. Like any other farmer we too developed soft corner and reduced Rs 75000/- from contract value.
The morale of this narration is that how can one expect farmer to survive in such volatile environment? For farmer the annual land lease will go up at least with inflation rate, he has to buy seeds, fertilizers, pesticides, labour etc on annual incremental basis as everyone in this farming supply chain operate on cost plus basis and ensure their fixed returns on investment. Whereas the farmer who invest everything on cost plus basis, will have to put himself in a gambling situation in markets as no policy protection to farmers on cost plus basis and end up taking severe stress and strain.
EVERYONE IS GAINING AT THE COST OF FARMER.
HOPE POLICY MAKERS ARE LISTENING TO US.
B G Reddy-9866889246
grbonthu@gmail.com
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