Pan-India Survey On Farmers’s Share:
The Reserve Bank of India (RBI) conducted a pan-India survey on farmers’s share in consumer prices in rabi crops.
- It covered mandis and villages across 18 states analysing 12 rabi crops and including inputs from farmers, traders and retailers.
- Farmers received 40-67% of the final consumer price for major rabi crops surveyed.
- Wheat farmers received 67% of the consumer price, the highest among surveyed crops, with 25% selling at MSP for an assured market.
- Rice farmers’ share in retail prices was 52% in 2024 that remained stable over the years i.e., 45% in 2022, and 49% in 2018.
- Lentil (Masoor) farmers received around 66%, while Gram (Chana) farmers received 60% of the consumer price.
- Mustard farmers received 52%, slightly lower than the 55% recorded in a 2021 study.
- Farmers’ share in fruits and vegetables ranged from 40-63%, significantly lower than for cereals and pulses.
- The combined share of traders and retailers in consumer prices was more than 50% for most perishable crops (except tomatoes).
- Perishable crops (fruits and vegetables) had a lower farmers’ share compared to Non-perishable crops (such as wheat and pulses).
- Perishable products have short shelf life, seasonal production, varied quality, special logistics, strict standards, demand fluctuations, climate dependency, and supply chain uncertainties.
- Cash transactions still dominate agriculture, but electronic payments have risen significantly in the 2024 survey compared to 2018 and 2022.
- An unorganized supply chain with multiple intermediaries limits transparency in product movement, finances, and pricing, reducing farmers’ share of consumer prices.
- A lower farmers’ share discourages crop diversification away from cereals.
