Amid the far-reaching consequences of the lockdown, a nearly two-decade-old initiative is playing a significant role in maintaining the flow of fresh agricultural produce to consumers in Maharashtra, India. Through bypassing the traditional Mandi marketplace, the alternative market channel has significantly influenced the production and distribution of produce.
About Mandi System
The mandi system operates as a marketplace for farmers to sell their produce to licensed buyers via an auction process that adheres to the regulations of the Agriculture Produce Market Committee (APMC). These markets primarily deal with the wholesale purchase and trade of agricultural commodities. Commission agents or middlemen, known as adithis, facilitate the auctions at mandi, possessing the required licenses and allotted shops in the market. Consequently, they play a key role in goods processing and distributing through various retail channels.
The Alternative: A Farmer-centric Model Established in Early 2000s
The alternative marketing model emerged in the early 2000s to facilitate direct access of vegetable and fruit growers to consumers. It aimed to create smaller and less congested markets in urban areas through farmers’ groups and Farmer Producer Companies (FPCs). The state Agriculture Department and Maharashtra State Agricultural Marketing Board (MSAMB) implement this model. Maharashtra boasts of robust FPCs – with over 118 such markets set up in Mumbai, Pune, and Thane and plans for expansion to Nashik, Aurangabad, and other cities before the lockdown began in March 2020.
Role of Farmers’ Groups during Lockdown
With the closure of wholesale markets during the lockdown, farmers’ groups and over 200 FPCs have effectively filled much of the resulting gap in supply, delivering fresh produce straight to urban areas in Maharashtra. The government and MSAMB cluster these groups, providing them allotted spaces for weekly markets in municipal wards or localities. Some producers’ groups utilize pickup trucks to deliver fruits and vegetables directly to housing society gates.
Benefits of Decentralised Markets during the Lockdown
Decentralized markets facilitate better control of buyer seller traffic, which is crucial amid social distancing needs during the lockdown. Several areas in Pune and Mumbai have experienced direct delivery of produce to housing society gates by FPCs. The adoption of selling pre-packed, customized vegetable packets has allowed these FPCs to minimize contact further, ensuring safer transactions.
Relieving Farmers’ Plight in Peak Harvesting Season
In view of the lockdown coinciding with the peak vegetable harvesting season, there was a high risk of crop loss across over 100 lakh hectares in the country. However, the alternative market model has enabled a significant portion of the state’s produce to reach consumers, lesserening the impact on farmers. Moreover, this system has encouraged more farmers to directly sell to consumers, fostering rudimentary packing, sorting, and branding practices among them.
About Farmer Producer Companies (FPCs)
Enlisted in the Companies Act of 1956 in 2003 through an amendment, FPCs are a hybrid between a private limited company and a cooperative society. This gives them the advantage of professional management of a private company combined with the mutual benefits of a cooperative society. Concentrated in states like Madhya Pradesh, Rajasthan, Maharashtra, and Bihar, several FPCs have formed amongst landless women, laborers, or marginal farmers. While many FPCs deal in selling agricultural inputs like seeds and pesticides to farmers, some are involved in commercial seed production. Notwithstanding, only a fraction of FPCs have achieved financial viability.
