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Recently , I found that cabbage was  selling dirt cheap  10 Rs  per 3 KG . When I inquired with the vendor , he told that  there was plenty of supply and market has crashed from  Rs 40 per KG  to this in a day’s time . Previous day there was no cabbage available in the market . If you follow the market , you can see such things happening  for tomato , onion , potato  or any other vegetable often .  . Many times , farmers  through  away their produce on the roadside  for nothing . No wonder many farmers  resort to suicide , unable to bear  cost , loan , interest and transportation .

It is the same case with farmers of  sugar cane also . Only difference   is  that the ritual is annual and the buyers are sugar factories  instead of  APMC markets .

A farmer told me that market / sugar factories  cheat them . When they grow cabbage , cabbage prices crash . If they grow tomato , tomatoes. Always they are left in lurch . Why it happens ?

Sat , today . cabbage  prices have crashed   and beans are in premium . All farmers  stop sowing cabbages in their village and start  sowing beans . So , next time , every farmer has grown beans and no cabbage  available in the market . When they reap them also  on the same day , inevitable crash happens  . At that time , cabbage will be in premium as no cabbage will be  available in the market .

Seeing the plight of the farmers , I just thought  what could be the reason for their plight  and is there any solution for that ? Is market to be blamed for their plight or  any thing farmers them selves can do to remedy ? I jus t jotted down some of the points :

1. All farmers sow the same crop simultaneously

2. Their entire farm is sowed with  one most profitable  crop.

3. Entire produce is harvested on the same day and transported together to the market , to save  transportation cost  .

4 . Entire produce  is sold in the same market .

Result  is crash of market  price and  poor recovery .

Further most of the cost of production is met by loans only  and under recoveries  result in carrying over loan and interest burden for the coming seasons . Ultimately farmers live a life of poverty and deprivation ,in spite of good yield . One can imagine their position when there is famine .

Can anything can be done to change their lives ? Just some simple steps  may change their lives .

1.  Not to sow  more than 25 %  of their land with a single crop .

2. Spread the  crop  to four sowing days with at least  a week’s gap

3. Improve the yield by improving the techniques .

4.  If different markets can be explored ?

So markets  will also not have  a boom and famine of any one particular crop  and  prices will be steady with steady income for farmers .



No content on this blog should be construed to be investment advice. You should consult a qualified financial advisor prior to making any actual investment or trading decisions. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments.


About bellurnm

Worked for more than 3 decades for an Indian International Bank in various gamuts of banking especially in Credit & Treasury . Interested in Trading and Investment and Psychology of Markets . Presently living in Mysore , India
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