Price of Tomato
I have just come back from one of the Tomato growing regions - Devanagere at the wholesale market the prices are 1060 for a 26kg crate of Tomato = 41Rupee per kg - i.e. 41% of the retail price. 59%= margin, transport, middle man, waste. The cost from Farm to consumer needs to be evaluated, because at the wholesale market there is already a margin in it for the wholesaler. Less links in the chain, more value for the farmer and consumer. more
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Oct 31
The middlemen are the mischief mongers and they are creating a vaccum to increase the price. more
Jul 30
During rainy season tomato is grown only in a limited part of the country from where it is exported all over the country. If it is sold @Rs.41 a KG in the whole sale markets of the area, it is but natural that its retail price will go upto Rs.80 to Rs.100 a KG at far flung centres taking into account its transportation cost and perishable nature. Transportation cost is not as cheap as it is considered by those who are least bothered for all these things but concerned with the availability. Moreover, bringing the product from the whole sale market of the other centres to the retailers' shops involves additional transportation cost. No agricultural produces can reach the market directly from the agricultural fields without middle men as our country seriously lacks marketing arrangements for the farmers. Therefore, the break up of the retail price could be as: original price + transportation from the field to the whole sale market/mandi + margin of the whole sellers + transportation upto the other end + margin of the whole sellers of the other end + local transportation + margin of the retailers + wastage (15 to 20%) = price for consumers? Accordingly, the present price of tomato appears reasonable! more
Jul 29
Apart from costs, the main reason of very high difference between farmer prices and retail level prices is the LOOT. Unfortunately, no body bothers to regulate these rates, everybody only talks about. Govt. has no concern. more
Jul 27
Should we feel that actions have not been listed so far ? It is the matter of inclination of the Govt. system to do improve it which is absent. more
Sep 10
Thanks Chris Pohl for bringing in this imp aspect to lime light. So if we calculate 5-7% loss at retail level, cost of financing @1% per day- as difficult to get formal financing- margin at retailer at 10%, transportation cost should be negligible as retailer will sell other products as well but lets say 0.5% so a gross mark up of 25-30% should be a optimum price point. But to earn a decent living by a normal retailer at urban set up he has to sell 25-30 kg per day (if mixed retailer) to earn 200-300 rupees and almost 1000 kg per day to get a decent leaving at 30,000 per month selling only tomato!! more
Jul 27
