Control over Wholesale Distribution of Farmers Products

[raj2rif]

As a child I used to analyze, the problems we faced in marketing our products, while the Baniya buying our products was making a whole lot of money. The thought got lost as I got selected in Military and then migrated to US. While posted at Mhow, I once happen to ask one of the farmers as to how much was he getting for his peas that he produced. He said Rs. 1.00 per K.G. The same was sold Rs. 4.00 per K.G. in the market. This is the economics of wholesale distribution.
With the land holdings shrinking, and our young people finding it hard to get jobs, I think we as a community look for this option for two reasons:
Firstly: to get better price for our farmers.
Secondly: Create additional employment for our people.

Any project that we think of is easier said than done. We here in this forum are looking forward for some concrete views and solutions.
Can we control the distribution system for let us say major comodities like suger cane and wheat etc. Vegetable may be next as they are more profit making crops.
I am looking for answers to following:
Can we do it? If yes, how? and if No, why not?
Every thing needs a lot of finances. How can we raise the necessary funds for this purpose and how can we really implement this program if we as a community decide to take it on.
I feel, if we can do it as a community, not only we have the two advantages I mentioned above, but will also have a greater say at State and National level.

[lc]

There is every possibility in doing this. I am some one who believes 'When there is a will there is a way'. Ofcourse we can see this 'Way' depending on how strong our 'Will' is.
Anyways, my thought for controling the wholesale distribution of agro products could be done in the following way. All the farmers in a village should form like an association- say 'Kisan Sangh'. This association can start recruiting youngesters who are good at marketing the agro products at a decent market rate. All these farmers should come to an agreement that they are not going to sell their products to the middle men no matter the price the middle men offer. Ofcourse making all this happen in one day or one year may sound impossible, but I am sure, this we can achieve in a small village in a span of couple of years. Once the actual farmers start seeing the profits of their hardships, this concept of self marketing would spread by word of mouth- which is one of the most powerful advertising tool.
This way, the farmer can provide a job for enthusiastic youngsters who are interested in markteing- these people will just have to concentrate in researching and exploring various markets to get the best price for the produce. During the first few years, the retailers might not usually be ready to buy the produce from these Kisan Association, but once they realize even they are making profit of out this, it will be good for everyone. Ofcourse all this involves a tremendous amount of hardwork and dedication, but as I said, nothing is impossible in this world because God has given us the potential to do everything that is good for the society.

Who is going to be the pioneer in this is question.

[scsheorayan]

Dear Virendra,
Thanks for raising the subject close to me heart. I for one used to think the same way. Going one step further I have made some sincere efforts in this direction and have come to believe that it is not going to happen for under stated reasons which are open to challenge and it will give me much pleasure to be wrong this time;

1. Theoretically it is all possible but when we put this concept to acid test it does not hold water.
2. For any organisation to survive it must have sufficient resources available on ongoing basis.
3. Concept of co-operative society is excellent provided all members work towards common goal. However this quality is very rare among our Jat brothers.
4.Those who are in a position to contribute to a common goal soon get frustrated due to unwarranted obstacles and decide to do some thing else e.g. finding a job in their field of expertise in India or overseas.
5.Ethical level among Indian society including our own is at an all time low and we find it so hard to speak or hear the truth.
6.Thanks to wide spread corruption which has become a norm and nothing can escape it's powerful tentacles.

Conclusion: Agents are here to stay and make profit out of market imperfections. That is not to say that Jats can not benefit from the concept. Any one who has good business plan and resources to implement it can.

India has great potential in agro industry but regrettably it is only Industrialist who has the capacity to benefit from it. Being a farmer or Jat does not help in running the agro business but business education does. Some Jats are taking to agro business in their limited capacity and are doing well for themselves. However they are insignificant in number to make any impact in the life of a common farmer.

You will always find people with big dreams and sand castles alas some of them could turn in to reality.

[lc]

Uncleji- I completely agree with your experience. All the facts you were talking about are the real hurdles we have to face. But uncle, if we really want to achieve something good for the society, I am sure God will help us. Only fact is that we need to be more patient.

One way to get started with this is, adopt a very small village and start working on this project. We should not even think of implementing this concept in other villages till the farmers in this small village are satisfied with the profits from our project, which will easily take a few years. Nothing can be achieved in a few months or so. Here we have to achieve 2 goals, to get profits of our agroproducts right to the door of the farmer and the second biggest challenge would be to gain the confidence of the farmers to help them.

For all this project to be successful, we should be looking into a couple of years of time. I have seen the concept of adopting villages and developing them by NRIs in Andhra. Ex-CM, Mr.Naidu was the one encouraged people for this and initially no one was favorable for this concept of adopting villages because it is the Govt's duty to develop anything. But after a few years, it has become very common that people who have enough foriegn currency and will to help the people in their own villages come back home and implement some projects for the upliftment of their society.

All that we need to succeed in this project is- dedication, determination and readiness to face all the challenges that were mentioned by elders from experience.

[rkumar]

Very interesting topic...Having been in business and academics both here are some simple ideas which will work and can do wonders for at least some commodities if not all....may be if not others, I will start the movement myself some day when I settle for good at my farm.... My idea will do wonders for vegetable trading...and not fir crops like sugar cane and wheet etc...may be I will apply my mind on other items in due course of time...

1. instaed of taking to 'Mandi', let vegetable arrive at 5 AM to the road sides of near by town along with milk and other perishable items of daily use...

2. school going boys can sit and sell these items at rates higher than mandi and lower than market and business hours should be strictly from 5- 7 AM

3. Every household in the town usually has some one who gets up early. People will get fresh vegetables at lower rate and students will not waste any times as they will have still enough time to reach school...

This will give them training in sales at limited level and make them ready for bigger business...

I will like to hear from memebrs if they find any flaw in this???

Regards
Rajendra

[jagmohan]

Dear All,

Yes, a very interesting topic indeed.

Pardon my saying so but JATS have never believed in cooperative movements. History is witness to this fact. Let me give an example. Mr LC Jain, an earstwhile member of Planning Commission, had experimented in a cluster of villages in early 70s and had achieved a growth rate of 25-30% per annum in all aspects of productivity. So much so that people started returning from towns, where they had gone to find wealth, to these villages. He did few simple things like water conservation, preventing soil erosion, starting primary education, providing primary health facilities, setting up a Vet Hospital etc.

Mr Anna Hazare's miracle at Ralegaon Siddhi village in Western Maharashtra is another example. Mr Hazare succeeded because he was able to synergise the whole community in the villages. Community means ALL, including SC/ST.

The cooperative movement, be it the 'Dabbawalas' of Mumbai or AMUL (Anand Milk Union Limited) experience, has stood the test of time. The key word is COOPERATION. Are the JATS ready for a coopertive movement? We all know the answer. And this is where I agree with Sheorayan Ji. We can succeed only if we start at the grassroot level and take everyone together, including the SC/ST in the villages. We have to consider everyone living in the village as equal, irrespective of caste. This is the basic requirement.

I remember that in early 80s the growing of 'Mushrooms' became a craze in areas aroung Delhi. Everyone grew mushrooms to such illogical quantities that there were no buyers. It was sad to see JAT farmers sitting on Nicholson Road in Delhi trying to sell or market the Mushrooms. The lesson to be learnt is that had there been a cooperative society marketing Mushrooms, it could have very intelligently kept up the prices by keeping the supply a little short of demand.

There is another example when Ch Charan Singh was the PM. Farmers in Western UP and Haryana went beserk and planted Sugarcane to such a quantity that production went up many times, while the sugar industry was not rerady to take in that much of sugarcane. So the JATS did the next best thing and marched to PM house. Ch Charan Singh was a very smart man. He heard out the Chaudhary's lament and removed his cap from his head and remarked "Iss mein bhi bo dyo ganda". The Chaudharys returned.

We can only succeed in this venture if only we throw our ego's of 'Khandan', 'Chodhar' and 'Caste' out of our system and start COOPERATING. It has to be started from the villages at a very small scale and by the common farmers themselves. The fact is that no big 'Zameendar', be it the Chautalas or Jhakhars have ever encouraged small farmers lliving on the periphery of their farms.

To be frank it seems to be such a vicious circle that one doesn't know from where to start. But I am sure someone will take a lead and make a begining. If we could only learn to start helping out each other!!!

Regards,

Lt Col JS Malik (Retd)

[scsheorayan]

Dear Fauji,

Thanks for the insight. It is not easy to change people. Business must sustain itself in the long run by being profitable and have enough resources to survive in the short term.

Things have the habit of changing and Govt. policies can be changed if there are enough votes for them. Our attitude to democracy has to change. Presently people vote for the candidate or party but not on the issues which are important to them. When they learn how to use their vote to their own advantage then politicians will start listening to them. In the mean time they are ahead in the game and make policies to suit those with greatest influence in the power game.

Because agro business is not the most profitable one and it has a high risk in comparison to rewards they are not able to attract required investment. At village level small businesses find it hard to survive mainly due to ignorance or lack of commitment on the part of owner.

Average Jat is honest and hard working but is not given in to much planning or learning new things. Those people who have been exposed to corporate environment and wish to do some thing different have the potential to change things provided they are not too attached to theirfamilies in cities or little luxuries which only big cities can offer.

In next 20 years or so we should see some brain gain to rural area provide basic amenties and Govt. policies are conducive to this long awaited change.

Dear Rajendra ji,

Thank you for the business model however in my opinion it can not succeed in this form simply due to lack of resources and commitments. Part time businesses have much higher failure rate than full time businesses. We do not have to confine ourselves to growing vegetables when we can run BPOs. Let us learn to think globally and not confine our thoughts to kerb side of GT Road only.

There are various options available in manufacturing, distribution and logistics which can be operated from rural areas. Nothing succeeds like success. Business owner has to make 100% commitment if he/she is to succeed. I am certain of more ideas from other members on this subject. Let us wait and see. Just one small advice, Do not set up business to help some one or find him/her a job. But you must really want to do it and love doing it. Then and only then the business can survive.

[raj2rif]

Dear All,
Thanks for the response to this topic. Firstly, let me clarify, that when I say community, that does not mean Jats alone. I am talking about farmer community as a whole, be it SC/ST or even any other caste. I guess that should answer Col JMS's question.
Right now we have seen the discussion only whether or not we can do it and members have different views which is very good. Just because in the past we could not do it, does not mean we can't do in future for atleast two things have changed. Firstly land holdings have changed, and secondly the education level and exposure of the community has changed. These are important factors in the changed outlook and perception of a person and community. So, we need to take advantage of the changed situation. We need to create opportunities for our younger generations specially those who have not had a very bright academic career to get a job in corporate world or government agencies. The idea is to get best price to our farmer brothers and additional job opportunities to their children. Rajendra Ji has given an idea which is good. I am sure we all can come up with some kind of model. As far as funding is concerned, I am sure, elderly members can advise us how to raise those funds.

[scsheorayan]

That is right education and land holdings have changed.Hwoever other important factors such as reliablity,truthfulness and honesty are taking real beating. Perhaps the best thing is to study the environment in which improvements are suggested. What is the base line to start with and what resources we have, what are the options and which one needs to be explored. How can you as individual contribute to this project before looking up to others for guidance and help these are the questions each one of us have to ask. Let us hear the replies and I hope we don't end up with lengthy mission statements. Be practical in your approach and you will make some progress. Even Govt. is thinking about rural development here is some information of interest

http://www.tribuneindia.com/2004/20040630/main1.htm

[raj2rif]

Dear Shubha Chand Ji,
What you have said is right. Reliability and honesty are the key issues. In fact these had been key issues for ever. We have read in history about these where because of one dishonest person the states suffered. I would say, these are the evils that we have to live with. The only thing we can do is to guard against them to the best of our abilities. There will always be bad people among the good.
On mission statement, I agree with you that any plan should be simple to understand and execute. I am hoping that some members will come up with some very innovative ideas specially younger people.


Shubha Chand Sheorayan (Jun 29, 2004 10:33 p.m.):
That is right education and land holdings have changed.Hwoever other important factors such as reliablity,truthfulness and honesty are taking real beating. Perhaps the best thing is to study the environment in which improvements are suggested. What is the base line to start with and what resources we have, what are the options and which one needs to be explored. How can you as individual contribute to this project before looking up to others for guidance and help these are the questions each one of us have to ask. Let us hear the replies and I hope we don't end up with lengthy mission statements. Be practical in your approach and you will make some progress. Even Govt. is thinking about rural development here is some information of interest

http://www.tribuneindia.com/2004/20040630/main1.htm

[devdahiya]

Respected Virendra sir,

These are priceless thoughts and we must act on them and sooner the better.