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Traders exploit tomato farmers, make them take a cut in prices
- They cut around Rs 50 per 15 kg box of tomatoes which amounts to a huge amount over a period of one month
- Farmers allege that the traders forming a syndicate to fix their own prices
Tirupati: In the erstwhile Chittoor district, tomato farming is a major livelihood for thousands of farmers, but they face numerous challenges, both natural and man-made, leading to significant financial losses. Due to unfavourable climatic conditions, they suffer price loss during most of the year besides facing exploitation of the middlemen and traders.
In particular, farmers are reportedly experiencing severe financial setbacks due to fraudulent practices by traders both at Madanapalle and Palamaner markets. These farmers claim that unauthorised deductions from the auction-announced prices are significantly affecting their earnings.
For instance, the market committee officials set the price for a 15 kg box of tomatoes at Rs 770 during auctions at the Palamaner market. However, farmers were receiving only Rs 730 to Rs 737 per box, with deductions ranging from Rs 40 to Rs 47. However, the traders maintain that this is a common business practice and ever bothered about the farmers’ concerns.
The farmers were alleging that traders have been colluding to fix tomato prices on their own, irrespective of the price fixed by the market committee officials. The price fixed by the farmers always will be low to what the market committee fixes with which they were forced to incur huge losses, said a farmer. Despite protests by farmers on several occasions, in the absence of any intervention by the marketing department, the cuts on the auction announced price has been continuing for long.
Market committee data reveals that from July 8 to 24, farmers delivered over 17,200 quintals of tomatoes to Palamaner market. While the price was set at up to Rs 3,000 per quintal, with a total payout of approximately Rs 5.16 crore, calculations suggest that unauthorised deductions may have cost farmers around Rs 50 lakh during this period. If this trend continues, losses could exceed Rs 1 crore in a month.
Adding to the challenges, the government has abolished the one percent cess long back that previously funded the market committee, with which the officials were not focussing on the price auctions seriously. However, the market committee officials maintain that they are holding meetings with farmers and traders to address the issues and trying to eliminate these
deductions.
