Mandi lose out but farmers are the winners

The farmer-agent-mandi-agent-store-consumer link is completely changing. Organized retailers like Reliance and ITC are purchasing produce in bulk directly from farmers, leaving the old-fashioned fruit and vegetable markets or mandi’s out in the cold. While consumers at organized stores have benefited from lower prices, at mandi’s the result has not been good. With fewer supplies coming in, the prices have increased at mandis as they have for small local vegetable vendors and those who shop there.

The produce coming in to Azadpur mandi in Delhi, Asia's largest fresh fruit and vegetable market, has already droped by 37% during the period of Janurary 1 and February 18, 2007. The state of Himachal Pradesh sold approximately 40% of its 2.73 lakh tones of apples directly to organized retailers. In Maharashtra's Nashik area onion farmers have clubbed together to sell 5,000 tonnes directly to Global Agrisystems. Farmers in Ratnagiri and Sindudurg areas of Maharashtra, will be supplying mangoes to Reliance Retail and ITC. The last two years has seen 8 new food and grocery chains start, such as HyperCity, Spinach, Nature’s Basket and Reliance Fresh being the prominent ones.