Date:21/08/2007 URL: http://www.thehindubusinessline.com/2007/08/21/stories/2007082152281000.htm

Back ‘Realisations from retail vital to double farm income’

Our Bureau

New Delhi, Aug. 20 Farm incomes in the country can double if organised retail enhances farmer realisations on food items from the current 30-35 per cent of retail price to the international norm of over 50 per cent, according to a study conducted by the Indo-American Chamber of Commerce.

To ameliorate the farm-to-retail sector, the chamber has called for encouragement to bills such as Warehouse Bill, which enables farmers to get payment against warehouse receipts. Also, concessional land should be provided to encouragefarmers to participate in agro-commodity exchange to hedge their risks.

Private sector participation should be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow and assured market for crop production, especially of oilseeds, cotton and horticultural crops.

The chamber has also suggested that all the different taxes, including inter-State taxes and local mandi taxes should be amalgamated into one tax. Further, development of the organised retail sector should lead to reduced role of middlemen.

The direct procurement route results in a greater margin for the farmers, besides facilitating the creation of a market with multiple sellers and buyers meeting at the same platform, eliminating the old fashion of few buyers and many sellers, thus, resulting in monopoly after some time.