Profitability zooms as Maharashtra farmer groups market produce via new models during lockdown

The current lockdown across the country due to the outbreak of Covid-19 has forced farmer producer companies (FPC) and farmer groups in Maharashtra to look at direct marketing models to reach out to consumers using technology. The model has turned out to be a success with groups earning in crores since the middleman is eliminated and better profit margin reaches farmers.

About 1,200 farmers in Nashik, part of Sahyadri Farms, have established a direct supply chain with 57,000 customers in Mumbai, Pune, and Nashik during the lockdown and have sold vegetables and fruits worth Rs 4 crore in a month, top officials of the group said.

Sahyadri Farms director Vilas Shinde said more than 3,000 boxes of fruits and vegetables are sold on a daily basis, ranging from 6-10 kg adding up to some 25 tonne. “During the lockdown, around 70,000 boxes have been delivered to customers through e-commerce and mobile app. The mobile app has seen at least 5,000 downloads. Sahyadri has tied up with a logistics partner in Mumbai and is in the process of tying up with a partner in Pune as well to serve individual customers. In the present model, Sahyadri offers 30-50 boxes per society.”

Shinde said the company had been working on this direct marketing model and the lockdown only served to speed up the process.

Yogesh Thorat, managing director, MahaFPC – the apex body of farmer producer companies in Maharashtra, said the federation was currently working on three models – directly serving customers by reaching out to housing societies, setting up direct shops for sale of fruits and vegetables and a basket model where customers are given packs of fruits and vegetables as per their choice.

On a daily basis, some 40 tonne are delivered to customers in Pune, Thane and Navi Mumbai and the daily turnover is around Rs 8 lakh.

Around 15 FPCs from Pune, Solapur and Ahmednagar are part of this effort, Thorat said. “We are exploring various options and even attempted sending 20 tonne from Raver by a parcel train to Delhi.” A mobile app is being developed and technology is being upgraded in terms of aggregator software to track orders and maintain accounts.

In Akola district, farmers have worked out a model of direct marketing in which 69 farmer groups have sold crops worth Rs 8.5 crore directly to customers during the lockdown. Under the guidance of the district agriculture department, farmers have been selling fresh vegetables and fruits directly to customers at reasonable prices through 93 direct selling outlets. These outlets are located in urban areas of Akola as well as neighbouring districts.

One of the farmers in the group said, “We have already sold 850 tonne of crops including fruits and vegetables so far. To save time and effort, our groups also use methods like online payments and order-on-phone service.” Mohan Wagh, project officer, agricultural technology management agency, Akola, said, “With the implementation of the model, we have ensured that farmers do not suffer due to the lockdown and are able to sell their produce at a decent price.”

Shriram Gadhave, president, Vegetable Growers Association of India (VGAI), said that his group had been providing vegetables to nearly 50 housing societies in Pune and some 25-30 farmer groups were part of the effort.