Farmer getting as low 33 per cent of the consumer cost

New Delhi, Aug 24 (UNI) Is a farmer getting as low as 33 per cent of the price paid by the consumers for fruits and vegetables in the country? The Government today conceded in the Rajya Sabha in the affirmative that the farmers realised 33 to 75 per cent of the price paid by the consumers. In the United States and other developed countries, the price realisation by the farmers was much higher compared to India due to less number of intermediaries involved in the market efficiency.

Answering Mr Vijay Darda and Mr Girish K Sanghi, Minister of State for Agriculture Kanti Lal Bhuria said that the to make alternative and market efficient channels to the farmers, the Ministry had circulated a model law on agricultural marketing to all States and Union Territories in 2003 providing for direct marketing, contract farming and setting up of markets in private cooperative sectors. This legal framework would enable the development of suitable value addition and marketing infrastructure in public-private partnership mode to make the markets efficient.

About 19 states had implemented market reforms as suggested by the Ministry and there was no APMC acts in seven states and UTs, he said.

The minister conceded that the World Bank had reported that India produced 11 per cent of world's vegetables and 15 per cent of the fruits at 53-63 per cent of global prices but its global share was 1.7 per cent for fruits and 0.5 per cent for vegetables.

Major reasons for stunting India's potential for exports were lack of awareness among farmers about producing good quality and safe produce, various non-tariff barriers imposed by importing developed countries, lack of proper cold chain and logistic facilities and lack of market information.

UNI