One may think the new-age startups have no relevance to the society, just serving as a mobile app for the tech-savvy people. However, recent news about these startups has a different story to tell. They address the problems of the most rejected segment of the society- farmers. While production of pulses dipped by 14% between 2013-14 and 2015-16 leading to higher prices, the rise in vegetable prices comes as a surprise.
The Magic Basket
The recent rocket-pricing of tomatoes in Karnataka region has put the farmers in deep sorrow. Selling tomatoes at a zero margin to consumers will help promote consumption and generate more demand for the product to uplift the market. It is imperative to understand that agriculture commodities are not manufactured in factories and are exposed to multiple risks.
Bigbasket.com, an Indian online supermarket has taken a lead by voluntarily setting a subsistence price of tomatoes for farmers hit by crisis due to the sudden crash of tomatoes in Karnataka. With a glut of tomatoes in the Bangalore market owing to a bumper harvest in the growing regions of Kolar, Malur and Chikbalalpur, prices in the wholesale markets have crashed to as low as INR 1/kg.
As a first step towards addressing the ongoing crisis, bigbasket.com has decided to pay farmers a subsistence price of INR 7/kg as against the market price of INR 5 to cover at least the cost of cultivation of the farmer and give them a sustenance income. At the same time, to be fair to the consumer, they will be selling the product to customers in Bangalore at zero margins.
“This small step being voluntarily taken by us shall change the discourse around distress sale by the farmer and highlight the importance of right pricing in agriculture commodities, as there is the farmer on one end and the consumer on the other. It is important, not to harm the interest of one at the cost of the other“, said Vipul Mittal – National Head F&V, bigbasket.com.
“It is our endeavour to educate the consumers on the minimum price we should pay for a commodity like tomatoes and seek their support in furthering the good cause“, he added.
Maha relief for Maharastra farmers
Agriculture technology startup Crofarm has tied up with over 2,200 farmers across Maharashtra and Karnataka to help them receive better value for their produce, and improve their quality of work and life. With the new relationship, it takes its total tally of partner farmers to 14,000, the company said in a statement.
The idea behind joining hands with more and more farmers is to help them receive a better value for their produce and to assist them in enhancing their quality of life and work. Crofarm has also expanded its portfolio of products with a wide range of SKUs. Apart from routine needs of potatoes, green vegetables, onions and tomatoes, the brand is also planning to offer exotic vegetables such broccoli, iceberg lettuce and red and yellow bell peppers.
Investing farmers with the power to directly negotiate with the market releases them from the clutches of unorganised moneylending and the bureaucratic loops of Agriculture Produce Market Committees.
Commenting on the collaboration, Varun Khurana, Co-Founder, CEO and spokesperson Crofarm, said, “Our aim has always been to drive sales for farmers, get them the best value for their produce and reduce wastage of farm harvest. We are proud to announce that we now have a total of 14,000 farmers on board. Farmers are the fulcrum of the agriculture sector and it is very important to work directly with them. Better lifestyles, prices that match their hard work and the conveyance of the best produce to consumers’ neighbouring stores- these are just a few of the benefits this partnership generates.”
