Market Linkage & Marketing of Fresh Fruits & Vegetables (FFV)

India is a land of agriculture diversity with  2/3 of its population still dependent on agriculture and contributing about 20% to the Indian GDP. Value addition of food products is expected to increase from 8 per cent to 35 per cent by 2025. Fresh Fruit & vegetable processing is also expected to increase from the current level of 2 per cent to 25 per cent of total production by 2025. Development of the vegetable industry is constrained by poor marketing arrangements; there is a large gap between farmers and retail prices. The traditional retailing of vegetables is not very much organized, amounts to 97% of the total market, is extremely localized and highly fragmented with large number of intermediaries. GVT recognizes the need for linking farmers to markets under cooperative arrangements as this would assure a return on farmers’ investments, and the supply of what the retailer or processor needs. GVT sees cooperative marketing, contract farming, and grower associations as an alternative marketing mechanism that can shorten the supply chain. After carrying out extensive research, GVT has started a pilot project in Uttar Pradesh by establishing KRISCHO under 25 C Company with the aim to reduce exploitation of the marginalized farmers who never get the return for their hard work.

 

KRISHCO indicates its supply needs to  associations ahead of the season to allow association and individual farmer planning to meet (or exceed) agreed requirements. KRISHCO  also provides technical and input support for associations. Unlike traditional marketing arrangements, KRISCHO ensures procurement of contracted produce from the producers’ doorsteps—thus allowing savings on transport, travel, and labor compared to uncontracted farmers. KRISHCO also examines how the associations developed new institutional arrangements and has benefited farmers by promoting high value food commodities.

 

Objectives of GVT’s FFV Initiative:

  1. Provide market linkage to small and marginal farmers of rural and least developed areas for selling of their FFV;
  2. Encourage small and marginal farmers to grow FFV by assuring them of a market;
  3. Add FFV production by promoting more and more farmers to add to the acreage under FFV cultivation;
  4. Ensuring better price realization for producer farmers by paying them ‘Mandi Linked Prices’
  5. Collecting FFV produce from growers form their villages so that they are saved from hassles and costs of transportation to Mandis and markets;
  6. Providing quality agricultural inputs at subsidized prices and knowhow for better productivity;
  7. Providing employment to farmers as well as other workers in the supply and marketing chain;
  8. Paying better salaries to those employed in the initiative;
  9. Better quality control while aggregating, sorting, distributing and vending FFV;
  10. Providing consumers fresh and quality vegetables at right and subdued prices, while assuring right measure of quantity;
  11. Providing participating growers and other stakeholders direct or indirect financial benefits by sharing a percentage of the margins earned by the initiative;
  12. Sharing a part of the brand value or wealth created by brand value, if any, with the participating growers and other stakeholders; and
  13. Create a business opportunity big enough to be carried on commercially by KRIBHCO, if such a scale is achieved by KRIBHCO so that the initiative gains stability due to KRIBHCO’s involvement and it is a business case for KRIBHCO in return

 

© 2012 Gramin Vikas Trust. All rights reserved
Supported by KRIBHCO