There are approximately 5,000 licensed commission agents in Delhi which include 1000 big commission agents. Having established monopoly on the market, they have created an elaborate nexus. They have employed vegetable retailers at monthly salaries and supply vegetables in the residential areas. “They are supposed to deal with wholesale trade only but the reality is that some of them also control the retail trade. I cannot take action against them as they are very dangerous. One more question that needs to be investigated properly is that when prices of food products are rising steeply, how revenues of most mandis are falling,” says another top official of a mandi on the condition of anonymity. The number of fake commission agents is huge.
Even Mother Dairy and Safal outlets are busy making money by selling vegetables and fruits at even higher prices. Mother Dairy, a wholly owned company of the National Dairy Development Board, had been established to support farmers by purchasing directly from farms and supplying to consumers without the added expense of middlemen. However, we found that prices at various Safal outlets in the city were higher than those at local retailers’. The obvious question arises that if Mother Dairy is not benefiting either farmers or consumers, then why is the government doling out subsidies to the entity?
Coming to pulses, it is astounding that though pulses are being sold in retail at Rs 100 per kg, the farmer is still getting not more than rupees 20 to 25 per kg. Assume that traders and commission agents have a margin of 100 per cent. Even then it should sell at not more than Rs 60 or 70 per kg in the market. So, obviously it is the retailer who is responsible for this situation. Devinder Sharma has prescription for this ailment. “The government should start procurement of pulses. At present, its role is confined to deciding minimum support price. Once the farmer has the surety that the government will buy his crop, he will increase production. Same thing has worked with paddy and wheat,” he says.
Even Mother Dairy and Safal outlets are busy making money by selling vegetables and fruits at even higher prices. Mother Dairy, a wholly owned company of the National Dairy Development Board, had been established to support farmers by purchasing directly from farms and supplying to consumers without the added expense of middlemen. However, we found that prices at various Safal outlets in the city were higher than those at local retailers’. The obvious question arises that if Mother Dairy is not benefiting either farmers or consumers, then why is the government doling out subsidies to the entity?
Coming to pulses, it is astounding that though pulses are being sold in retail at Rs 100 per kg, the farmer is still getting not more than rupees 20 to 25 per kg. Assume that traders and commission agents have a margin of 100 per cent. Even then it should sell at not more than Rs 60 or 70 per kg in the market. So, obviously it is the retailer who is responsible for this situation. Devinder Sharma has prescription for this ailment. “The government should start procurement of pulses. At present, its role is confined to deciding minimum support price. Once the farmer has the surety that the government will buy his crop, he will increase production. Same thing has worked with paddy and wheat,” he says.
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