But for important crops like paddy, Mirchi, wheat and other similar products this system is not there. The middlemen will purchase the product when the price is low and store it. Once there is a scarcity of the product he will increase the price and sell. The farmers are not able to store as they don't have proper storing facilities.
To avoid this problem the government should construct godowns and give them on rent to the farmers so that they need not sell it to the middlemen. Otherwise, the minimum rate should be fixed in such a way that the farmer will get sufficient margins.
Agricultural farming in India is not new. It is as old as the hills. The farmers survived the era of foreign rulers also as there was demand of their produce at all times because humans require food irrespective of their caste, creed, religion or nationality.
The main problem of farmers these days is the smaller size of their land holdings as the land got divided with growth of population. Also, the younger generation of farmers families are not interested in doing hard work in agricultural fields. They want mostly government jobs so that they can earn without much hard work and enjoy modern life style of cities.
The farmers cannot sell directly to households who buy in retail. Instead they have to sell to the wholesalers in any case. What we buy at the rate of Rs.10 per kg in the retail market, the farmer may be getting Rs. 3-4 per kg or even less for the same produce.
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My advice to him was to get rid of the middlemen. I told him to connect with other farmers in the area and together they can set up their own marker and call it "Shetkari Bazaar"/"Farmer's Market". This would allow them to set a reasonable price for their products. Also, since middlemen are not involved here, whatever profit they make will be their own undertaking. Now, this is where the Government comes in. The Government can help these group of farmers to set up their own marketplace in each area based on the population. The same process can be followed in all over India, thus removing the dependency of the farmers on the middlemen. These way the farmers will be get benefitted.
Every year we hear about onion prices shooting up, while the middlemen hoard it and sell it later on. The Government has intervened in many sectors to ensure fairness, I think, its high time it ensures that the farmers also get their dues. If the government takes steps to eliminate the middleman, I don't think the farmer loan waiver would be as huge as it is now. Once a state or few districts start, then the nation can adopt it quickly.
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
If Govt sets up a department for the same then the Govt will have to stock all the production in warehouses till it is sold in market and that itself is a herculean task as we have already seen the plight of food corporation of India (FCI) which has huge warehouses but a lot of wastage and ill management has marred them.
With this pessimistic situation the younger generation is also migrating to town and cities for petty jobs and the agricultural set up of the country is deteriorating further.
We are at our wits end to find a solution to this gigantic problem.
Knowledge is power.