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prime concern Retail The chain of middlemen between the farmer and consumer could be netting a gain of 500%, something foreign direct investment (FDI) in organised retail may help cut. Here’s a look at just how the current supply works. by Ruchika M Khanna THE Union Government’s second push for allowing 51 per cent foreign direct investment (FDI) in multibrand retail could well be the harbinger of the “second Green Revolution” in the essentially agrarian states of Punjab, Himachal Pradesh and Haryana.
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prime concern The chain of middlemen between the farmer and consumer could be netting a gain of 500%, something foreign direct investment (FDI) in organised retail may help cut. Here’s a look at just how the current supply works. by Ruchika M Khanna
THE Union Government’s second push for allowing 51 per cent foreign direct investment (FDI) in multibrand retail could well be the harbinger of the “second Green Revolution” in the essentially agrarian states of Punjab, Himachal Pradesh and Haryana. But for lack of political will in allowing FDI in retail in major food producing states of Punjab and Himachal, farmers in the states may continue to get peanuts for their produce and consumers may continue to pay much more without realising how it is the middleman who is pocketing the profits at the expense of both the farmer and consumer. Even as politics takes precedence over the interest of both the farmers and consumers, some micro experiments in the two states by major retail chains to source their supply, have proved that organised retail has benefited both sections. Vegetable farmers and fruit growers (mainly apple orchardists) in Himachal have benefited hugely from selling their produce directly to retailers like Reliance Retail, Mother Dairy and Devbhoomi. In Punjab, too, farmers selling their produce to Bharti Walmart, Reliance Retail and PepsiCo are getting 20-30 per cent more than their counterparts who are selling their produce to commission agents in mandis. Most states which will adopt the FDI in retail will do so after amending the APMC Act, which will allow the retailers to buy the produce directly at the farms without paying any market fee in mandis. A part of this cost will be passed on to the farmer, who will also save on the freight cost incurred for transporting his produce to the mandis.
Pricing mechanism Middlemen take it all Despite his toil and the risk in producing the crop, the farmer gets only a fraction of the price you pay for the vegetables. In Saneta village, Jeet Ram, who has taken a one-acre piece of land on lease to grow vegetables, says that he sells his produce (long gourd or ‘lauki’) at the rate of Rs 5 per kg to a trader at the kisan mandi in Chandigarh. In the retail, long gourd is being sold at Rs 30 a kg. As we begin to unravel the economics of vegetable pricing, we find that the trader who bought Jeet Ram’s produce for Rs 250 for 50 kg, sells it to a vegetable vendor outside the Apni Mandi for Rs 20 a kg, taking a 400 per cent commission. The vendor then sells it to the consumer for Rs 30 a kg, taking a 150 per cent share of the retail price of the vegetable. So, even as the vegetable vendor or the retailer continues to curse the delayed monsoon for the shortage of vegetables and inflation, the middlemen maintain their profit margins. Similar is the case of other vegetables like cauliflower. With the cauliflower crop almost over in Himachal and the locally grown crop entering the market, the farmers are getting less than 50 per cent of the retail price while the middlemen and traders are making a killing. The farmer sells his cauliflower for Rs 2,000 a quintal (Rs 20 a kg) while the consumer gets it for Rs 60 a kg, a hike of 300 per cent. The difference in price of lady’s finger, too, is 200 per cent. The farmer sells his crop for Rs 20 a kg while it is sold in the market for Rs 40 per kg. Even in the case of vegetables like peas, capsicum, French beans and tomatoes — brought to the mandis in Chandigarh and Ambala for distribution in Punjab and Haryana — the farmer is barely able to scrape the barrel while the whole chain of traders makes profit. The farmer sells his produce at the mandi in Solan through an open auction after rates are decided on the basis of the quantity and quality. The wholesaler sorts and grades the vegetables and after taking his cut (varying from 20 to 200 per cent depending on yield, quality and rejection), sells it to the wholesale dealers of Chandigarh, Ambala and Azadpur Mandi in Delhi. These dealers again take their commission (almost similar to the one charged by the Solan dealer) before selling it to the retailer.
Unfair bargain Gurdev Singh, who grows cauliflower at his farm in Tasoli village, says: “Our input costs have gone up substantially, with the labour costing up to Rs 300 a day and fertilisers and pesticides costing Rs 15,000 an acre. But we continue to get the same price for our produce. My profit margin is just Rs 2 a kg. We know the middlemen are making huge profits, but we cannot take on the role of a retailer as we have to tend to our fields.” Karamjit Singh of Chuhar Majra village says many vegetable growers are shifting to wheat and paddy due to poor remuneration. “With the area under the vegetable crop shrinking, it would lead to a further gap in demand and supply, fuelling vegetable prices,” he says. This puts a question mark on the crop diversification efforts being made in Punjab, especially at a time when the Centre is also pushing Punjab away from the wheat-paddy cycle.
Multibrand retailers Multibrand retailers are willing to offer not just a good market for vegetable growers, but also are looking at investing in infrastructure like cold stores and sorting and grading houses. Farmers are not enthused by the Apni Mandi concept, where they can sell their produce directly to consumers at a higher price. It is the trader and local vendor who are selling the produce in the Apni Mandis and at almost the same rates as in the open market.
Organised retail the way to go FDI in retail will help farmers get much better prices for their produce by eliminating the role of middlemen. That will help improve their economic condition, and provide a better credit culture, with farmers repaying their
loans. — K K Ravindran, managing director of the national cooperative, agriculture and rural development banks federation
How FDI in retail will help farmer FDI will help set up food stores that have a farm-to-retail chain. Procurement will be made directly from the farmer. Big firms will also provide farmer with seeds and technology. The chain of middlemen, which takes away a chunk of the profits, will be replaced by a single entity. Farmer will gain from higher price and consumer from lower.
Projection India could attract 16 estimate by boston consulting group
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SHE came, she saw and she continues to conquer. Once a superstar, always one — no one proves it better than Sridevi. Riding high on her comeback vehicle English Vinglish, she zooms straight to the Toronto International Film Festival, where her film was not only premiered, but also won a standing ovation. While the audience couldn’t stop clapping for 10 minutes, she was immediately hailed as the Meryl Streep of India. If with Himmatwala, the film that made her a star in Bollywood, she set the trend of typical Southern-style dancing, years down the line, she made the saree a rage with Kaate nahi kat te yeh din. With this number from Mr India high on the sensuousness quotient and many others, she probably gave Bollywood item numbers even before the term was coined. She has surprised her fans and silenced her detractors every time. Those who laughed at her Hindi, soon found her saying goodbye to dubbing and delivering her dialogues written in her own hand. Keen learner No wonder, her better half, the ever-supportive Boney Kapoor and producer of many of her films, including the blockbuster Mr India gushes: “She is very dedicated and focussed.” He says to master Hindi for a South Indian is as demanding as it would be for a North Indian to learn a South Indian language. He confesses that while he can’t comprehend her mother tongue, Tamil, she understands Punjabi rather well! It’s not proficiency in languages that makes her a phenomenon, but her acting prowess that has embellished over 280 films in various languages and won her eight Filmfare nominations and four awards. The National Award may have eluded her, but her tremendous range and malleability can’t be disputed. Actor Jackie Shroff rates her versatility and effortless ability to flit from comedy to tragedy as a singular quality that sets her apart. Showman Subhash Ghai may have directed her in only one film (Karma), but swears by her talent that required no directorial intervention. He recalls: “While I have to often tell my other heroines to do it in a certain way, Sridevi instinctively not only knew what to do, but also took me by surprise each time.” Yet she calls herself a director’s actor, for whom the director’s wish is command. She followed the same dictum while working with her director Gauri Shinde of English Vinglish. Politically correct She says excitedly that it was her first experience of working with a woman director and she enjoyed a comfort zone with Gauri, who was clear about what she wanted. But she wouldn’t get into any gender debate on how women directors are different or better. She is equally noncommittal about films today offering more meaty parts to heroines. Scripts were written with her in mind (she played double role in more than one film) even back then. On cinema of today, her one-line refrain is: “Good movies are being made.” In fact, she steadfastly refuses to be drawn into any discussion that could trigger a controversy. Be it her favourite co-star of yesteryear, heroines of today, or their crore-plus packages, her answers are politically correct and guarded. Workouts, not surgery She lets us into her eternal beauty secret. Gossip mills hinted at cosmetic surgery and there were snide comments about her spending lakhs on beauty treatments, but she swears by a positive attitude and lots of workout. She watches what she eats and among her favourite food is the Punjabi dish “rajmah”. Another passion is painting — moods, faces, figures … whatever catches her fancy. But her first love is acting. Not surprising, she comes alive when talking about Lamhe, Mr India, Chaalbaaz, Sadma, Judaai, Meendum Kokila and Moondram Pirai. English Vinglish is special, too. Whether she delivered is for the audience to decide, but Sridevi could relate to a woman who doesn’t know English and got under the skin of the character. She never takes reel life home. Rather, she laughs as she says: “The moment the director says cut, I snap out of it.” Despite this distancing, she has unfailingly ignited the screen. Doting mom & wife Off-screen, Shroff remembers her as a quiet girl who would melt away in a corner and read a book. So, does anybody know the real Sridevi? Her doting family knows her as a practical, loving mother and a wife who spoils her husband with love and attention. Actor-director Satish Kaushik, a family friend and the man who directed her in Roop Ki Rani Choron Ka Raja, says she opens up among friends and they shared a great camaraderie during Mr India. Sridevi, however, views herself as an introvert, who still gets nervous — like she did as a guest on KBC until Amitabh Bachchan (her co-star in Khuda Gawah) made her comfortable. How does the diffident lady cope with stardom? “By not letting it go to my head,” she says. Away from the limelight for 15 years, she neither yearned for it nor missed it. “Thanks to Boney, I was always a part of the film industry,” she says. As she returns to the silver screen, she is in no tearing hurry to prove herself. In fact, she has nothing to prove. She can set her own pace, choose her own films. Post-English Vinglish, she wouldn’t say if she is flooded with offers. Ghai and Kaushik would only be too happy to work with her and her husband is planning to cast her in the sequel of Mr India. But Sridevi is not ambitious — neither for herself nor for her two daughters. “One can’t plan these things,” she says. If she had a magic wand and could rewind life, she would live each moment the same way. If you are Sridevi, looking like a dream at 49, what more could you ask for? Her fan following has grown to include youngsters who think she is a “hot aunty”. A diehard aficionado in Andheri East, Mumbai, has booked an entire hall to watch her comeback film! |
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To study how the vegetable and fruit pricing mechanism works, from the farm to the fork (your plate), The Tribune team tracked the vegetable supply chain. When it located vegetable producing villages in Mohali and Patiala districts, almost 35 km outside of Chandigarh, the revelation was an eye opener. The prices of most vegetables go up by an astounding 200-600 per cent between the time it leaves the farm and reaches your home. While the farmer still gets the same price for his produce as last year, or the year before, the middleman walks away with the profit.
A flattering comparison by all means, but the actor doesn’t take it seriously. She is floored, but says in her usual unassuming manner: “I have a long way to go.” Indeed, she has come a long, long distance. From a child artiste, sultry “thunder thighs”, undisputed queen of tinsel town to a style diva who looked resplendent in a Sabyasachi black and white sari at the red carpet event in Toronto, Sridevi has metamorphosed more than once.