How to bridge the farmer-consumer price gap?

All in all, a system is needed where the farmer does not suffer, the consumer does not have to pay high prices and the middleman does not have to be arbitrary.

पुस २४, २०८१

नुमा थाम्सुहाङ

How to bridge the farmer-consumer price gap?

Bhup Bahadur Bhattarai got Rs 70 per kg when he sold it to a trader from the vegetable collection center of Benighat Rorang-7 Charoudi in Dhading. The price of the same Golvenda doubled when it arrived in Kathmandu.

This shows that the gap between the prices paid by the vegetable producers and the final consumers is unnatural. Collected from the garden and transported through the collection center, the buyer, the transporter, then the wholesaler and the retailer, the vegetables reach the consumer's kitchen. 

According to a study conducted by Tribhuvan University, Geography, more than 80 percent of the population involved in agriculture in Nepal are small farmers. The agricultural sector contributes 24 percent to the Gross Domestic Product (GDP).

The same study shows that 57 percent of Nepal's population is directly involved in agricultural activities. Even though more than half of the country's population is dependent on agriculture, they are the ones who are facing more problems. There is a problem of not getting seeds at the time of planting and fertilizer at the time of production. Farmers are farming despite the geographical challenges.

Small farmers cannot directly deliver produce to the market. Nepal's market system is dominated by middlemen. Farmers are forced to be ready to sell even if they get a small profit from the vegetables grown in their fields. Because, they are not even able to determine the price of their products.

Sometimes there is a situation where vegetables are not sold and have to be thrown away. On the other hand, there are traders and middlemen, who play a role in transporting the farmer's produce to the consumer. They keep enough profit for themselves. They bear the risk of damage in transit or non-sale. It should not be forgotten.

Local government's efforts

Hot market has been operating in Kapurkot Rural Municipality of Salyan for two years. According to village chairman Durga Bahadur Pun, farmers bring their products to this market and sell them to traders. It is directly regulated by the rural municipality. The rural municipality has also arranged an agricultural ambulance and a cold store for the farmers. A guide has also been made for orderly operation of

hot bazaar. Such hot markets have created an environment where farmers' produce is sold at their cost price in open competition. The municipality also helps to sell unsold vegetables. 

With the aim of facilitating the sale and distribution of agricultural and food grains grown by farmers, the Kathmandu Metropolitan City recently introduced the 'Agro Pulling Procedure, 2081' program. The aim of this program is to deliver quality and fresh food easily to consumers. For this, the metropolis has envisioned a 'distribution organization' and a 'production organization'.

The distribution organization remains within the metropolis, whose work will be done by agricultural cooperatives or companies. Production organization means a farmer group, agricultural cooperative or company that produces, collects, tests and supplies food and agricultural products to distributors designated by the metropolis in agreement with other local levels.

A food and agricultural product distribution organization from the producer arranges testing, packaging, labeling, pricing and sales distribution. In addition, the producer organization will have to determine the price with the permission of the local level related to the farmers who produce food. 

Since then, the distribution organization has to determine the selling price with the permission of the metropolis. Since the metropolis on the buying side and other local levels on the selling side regulate the pricing, the chances of both farmers and consumers being affected may be less. If it is successfully implemented, the produce of the farmers will reach the consumers directly and no one will be allowed to dominate in the middle. 

Consumers are less forced to pay high prices. There is also a possibility that farmers will get a fair price for their produce. 

Additional responsibility

According to the constitution, the local government has the right to manage agricultural products and services. Schedule-9 of the Constitution has also given the three levels common rights related to agriculture. Various policies have also been made to increase agricultural production and productivity while protecting and promoting the rights and interests of farmers.

Locals can manage small farmer targeted hot market, effective monitoring, provide concessions on seeds and fertilizers. If there is no law, it should be made and the problem should be dealt with. Therefore, the local level should be active to prevent another level from dominating between farmers and consumers. Facilitating the market of local products should be prioritized.

The federal government should invest in the construction of large agricultural infrastructure, cold storage, agricultural insurance, transportation concessions, easy agricultural subsidies, and the establishment of a healthy competitive market. Also, preference should be given to indigenous products and their minimum support price should be determined. Legislation and monitoring should be done to ensure that there is a level between the farmer and the consumer and sell them with a certain profit margin.

The federal government should also be prepared to ensure that farmers' products get a market and reduce the risk of traders. It is also necessary for the federal government to make a plan to encourage commercial agriculture based on modern technology by developing collective farming system. A market should be established where not only traders but also farmers can earn profit. Linking agriculture with technology is another important aspect.

In the Consumer Protection Act, 2075, there is a provision to maintain a clean market by continuously analyzing and reviewing the demand and supply status of goods or services consumed within the country. The same Act has also made provisions to control the price fixing or increase done by the producer, seller or distributor of goods or services in an unwanted manner. However, the implementation side of the government is weak.

Political parties have also failed to address the basic problems of farmers in a fair manner. All in all, a system is needed where the farmer does not suffer, the consumer does not have to pay high prices and the middleman does not have to be arbitrary.

नुमा थाम्सुहाङ थाम्सुहाङ कान्तिपुरकी पत्रकार हुन् । उनी आर्थिक-सामाजिक बिटमा कलम चलाउँछिन् ।

Link copied successfully