Why does a hard working farmer earn less than a market reseller?
The economic consequences for farmers continue to rise due to extensive product losses in Indian fields following harvest mainly from improper post-harvest management practices. Appropriate sorting methods combined with grading techniques along with cleaning and proper storage practices enable succeRead more
The economic consequences for farmers continue to rise due to extensive product losses in Indian fields following harvest mainly from improper post-harvest management practices. Appropriate sorting methods combined with grading techniques along with cleaning and proper storage practices enable successful post-harvest management techniques that lower losses while raising overall returns.
Political executives who handle produce after harvest can improve product quality and shelf stability and thus increase its market worth through consumer demand.
The processing methods of drying and canning and freezing enable raw material transformation into marketable items including juices and jams and pickles. The produce accumulates enhanced value which enables farmers to generate profits by diversifying their activities beyond farming.
Harvesters can gain better market opportunities through improved management practices during post-harvest processes. Quality product management enables agricultural producers to reach superior market segments where they can interact with multiple buying entities such as processors and exporters and retailers.
The farmers become less dependent on middlemen since this improvement eliminates the situation where these intermediaries set higher prices and benefit financially by exploiting farmers. Appealing products to a broader range of buyers enables them to achieve superior price rates together with enhanced revenues.
The following elements influence post-harvest activities in India:
Post-harvest loss in India remains substantial because the country lacks sufficient cold storage facilities alongside inadequate transportation and processing units.
A wide range of farmers display inadequate information about both proper post-harvest product handling methods and quality control essentials.
Small-scale farmers face barriers because they lack access to advanced post-harvest technological equipment including refrigeration systems and cold storage units and processing machines.
Lack of Market Information: Farmers do not have information regarding the market; hence they tend to make decisions on price, marketing channels, and value-addition opportunities very poorly.
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A hardworking farmer often earns less than a market reseller due to several factors: 1. Value Chain Differences: Farmers are at the beginning of the value chain, producing raw goods. Resellers add value through marketing, distribution, and sometimes processing, which can significantly increase the fRead more
A hardworking farmer often earns less than a market reseller due to several factors:
1. Value Chain Differences: Farmers are at the beginning of the value chain, producing raw goods. Resellers add value through marketing, distribution, and sometimes processing, which can significantly increase the final selling price.
2. Market Fluctuations : Farmers are vulnerable to fluctuations in market prices for their produce, while resellers often buy at a lower price and sell at a higher price, taking advantage of market demand.
3. Scale and Efficiency : Resellers often operate on a larger scale or have more efficient systems for buying and selling, allowing them to take advantage of economies of scale and higher margins.
4. Cost of Production : Farmers face various costs such as seeds, equipment, labor, and maintenance, which can reduce their profit margins. Resellers typically don’t incur these production costs.
5. Bargaining Power : Resellers often have better bargaining power in negotiations and can influence prices more effectively than individual farmers.
Overall, the difference in earnings reflects the different roles and value added at various stages of the agricultural supply chain.
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