Farm organisations need better market linkage for returns, says report

These issues have assumed greater importance after the government allowed farmers to directly sell their produce to processors and traders.

A recent survey of farmer producer organisations (FPOs) conducted by Tata Trusts suggests that to ensure higher returns for produce, FPOs need to increase market linkages. The consequent report recommends addressing agricultural value chains, which include ensuring availability of infrastructure and credit along with information asymmetry.

These issues have assumed greater importance after the government allowed farmers to directly sell their produce to processors and traders without any compulsion to bring them to agriculture produce market committees (APMCs) or market yards.

The survey discovered gaps in the way FPOs are handling their operations. “If the gaps are addressed through effective linkages, it could help clusters see an increase in their aggregate turnover by 5-20 per cent, depending on the crop,” the report noted. The report released was based on a field study concluded over a year ago.

This study covered 49 FPO clusters and 45 agriculture value chains across 52 districts in 18 states. This was followed by an intensive analysis of the data and discussions with stakeholders. The report is further backed by 49 FPO cluster-level reports, which span across 1,800 FPOs and 399 market players, according to Pradyuman Singh Rawat, project lead, Tata Trusts.

How retailers upped the ante to deal with supply chain constraints

The biggest lesson in the situation is redefining the hygiene of the shopping environment, which will now be an ongoing exercise, says Big Bazaar CEO Sadashiv Nayak.

The lockdown announced last month imposed curbs on everyday life without precedent in peacetime. After the initial shock, retailers have found ways to deal with the supply chain constraints, upped the ante on in-store people, product and hygiene management. “While production and distribution of non-essential sectors have come to a virtual standstill, essential goods retailers have kept the ball rolling, pinning their hopes on the government to keep their supply chain undisturbed,” says R N Iyer, CEO and founder of Vayana Network, a platform that connects corporates and their supply chain to financial institutions.

To start with organised retailers such as Big Bazaar, Spencer's and Reliance Retail have all announced that their supermarkets and convenience shops would limit customer numbers, though the limits are different for different branches based on the footfalls and the number of tills, with shop managers using their judgement on customer numbers and when the shop is at capacity. Many have enforced a one-in-one-out policy to enforce social distancing. Some are also using volunteers or marshals to help manage queues outside shops and remind customers about the government’s social distancing rules.

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Two things stood out from our conversation with retailers — that the ones with online delivery and click and collect services are working at full capacity. And that supermarkets are asking customers to pay with cards or any other form of virtual money rather than cash at tills as a way to help contain the spread of the virus.

Now the thing to remember is, that these retailers have to tackle challenges at two ends — the front end or the shop floor and the back end or the supply chain. The front end is relatively easy —it's more about tackling store traffic and hygiene. Sadashiv Nayak, CEO, Big Bazaar, says people are going to congregate at food stores and so the prime focus is on maintaining hygiene and taking safety precautions. “We are making sure we don’t have too many people at the store at a time. So they are being asked to queue up outside the Big Bazaar stores, maintain a distance of one metre from each other and even inside the store, we are ensuring there is no crowding. There is mandatory temperature checking at the entry point. This gives confidence to the authorities that Big Bazaar is well-placed to serve consumer needs.”