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Let's take a real life example of how these laws will favour the average farmer.
Turmeric in Tamil Nadu is grown widely. Erode District though is the largest with 33% of the total state production. But conversely 67% comes from across the state. The Madurai and Theni https://twitter.com/beemji/status/1357608807099035651
Turmeric in Tamil Nadu is grown widely. Erode District though is the largest with 33% of the total state production. But conversely 67% comes from across the state. The Madurai and Theni https://twitter.com/beemji/status/1357608807099035651
1/n districts contribute 15% of the production.
On a per HA basis, the average farmer makes Rs 57,000 as net profit per season.
This excludes the transportation costs and storage costs. Why? Because Turmeric APMC MANDIS exist ONLY IN the Erode District for the whole of TN
On a per HA basis, the average farmer makes Rs 57,000 as net profit per season.
This excludes the transportation costs and storage costs. Why? Because Turmeric APMC MANDIS exist ONLY IN the Erode District for the whole of TN
2/n what does this mean? A farmer producing Turmeric in Madurai or even Salem is shit out of luck as his margin of 57, 000 is based on the produce magically arriving in the APMC.
A HA yields 5 tonnes of Turmeric. To transport 5 tonnes across 150 kms (as a min) means addtl
A HA yields 5 tonnes of Turmeric. To transport 5 tonnes across 150 kms (as a min) means addtl
3/n transport costs of Rs 10,000. If you need to transport it from Madurai, then you are looking at Rs 15,000-20,000 based on your negotiation skills.
And straight away your margin drops to Rs 47,000- Rs 27,000.
Now let's look at the price difference in wholesale vs Retail
And straight away your margin drops to Rs 47,000- Rs 27,000.
Now let's look at the price difference in wholesale vs Retail
4/n a quintal of Turmeric today retails at Rs 6, 000 to Rs 7,400 (varying grades - more on this later)
Per kg this translates into Rs 60-74/kg
Of this approx Rs 8-10 is the profit the farmer retains. This assuming he has no debt to service.
But what does Turmeric cost
Per kg this translates into Rs 60-74/kg
Of this approx Rs 8-10 is the profit the farmer retains. This assuming he has no debt to service.
But what does Turmeric cost
5/n in the wholesale market?current pricing is about Rs 100-140 / kg.
Straight away the middle man makes double. His only role? Consolidate the volumes and ship it to the wholesaler.
The final retail price? Rs 300-350/kg.
So of this Rs 300-350 the farmer makes Rs 8-10
Straight away the middle man makes double. His only role? Consolidate the volumes and ship it to the wholesaler.
The final retail price? Rs 300-350/kg.
So of this Rs 300-350 the farmer makes Rs 8-10
6/n India also is the largest exporter of Turmeric with a 62% global share with exports at Rs 1,800 cr.
In the US alone Turmeric retails at Rs 2, 500 / kg.50% of the US consumption is from the Indian farmer. And yet he makes a few cents on it.
Under the new regime
In the US alone Turmeric retails at Rs 2, 500 / kg.50% of the US consumption is from the Indian farmer. And yet he makes a few cents on it.
Under the new regime
7/7 a farmer can contract to a private player who will include transportation in the costs and the farmer can base his price on his free will. It could be the msp price, the wholesale price or even sell it in a Mandi.
In what planet is this anti farmer?
In what planet is this anti farmer?
