Farmer’s mall set to go pan-Gujarat now

Vijaysinh Parmar TNN/18 October
Amreli: Farmers in the state have special reason to cheer this Diwali. As their own ‘khedut (farmer’s) mall’ in Amreli district has proved a hit, it will now expand across the state after the festival. Amreli district farmers initiated the experiment in June 2009 and it’s being run by Sudarshan Vishva Krushi Kendra. Within three months, the members have crossed over 7,000 in this district alone. “This message about low-cost items spread across the region like wild fire and the tremendous response prompted us to expand all over Gujarat after Diwali. The company now targets 1 lakh farmer members this year,” said Praful Senjalia, president of the committee that runs the unique mall. The mall is his brainchild. The aim is to decrease the cost of agricultural inputs to farmers and connect farmers across the globe. The experiment suggests that farmers can purchase inputs at prices that are 30 per cent lower. Farmers can procure all their needs including equipment like axes and engines, and pesticides. According to Arvind Mesia, one of the founder-members of the kendra, “We reported Rs 1.18 crore sales within three months from this mall. The highest sales have been of pesticides.’’ To take advantage of this facility, farmers need to be members. They have to pay Rs 1,500 to become lifetime members. They’re given ID cards and can purchase any item using these cards, Mesia added “This year, I purchased Rs 5,000 worth pesticides from the mall. I calculated the cost and compared it with the market price. I found that if I had purchased it from the open market, it would have cost Rs 10,000,’’ he said. Initially, only agricultural equipment was sold. But, farmers demanded that they needed to spend more on pesticides. So, the mall started stocking pesticides as well. Interestingly, if farmers purchase one item, the company takes 6 per cent commission. Out of this, 3.25 per cent profit will go towards running the mall while 2.75 per cent goes to a loyalty programme which will automatically be deposited in the accounts of members. Members are given Rs 25,000 medical claim cover for lifetime without premium. “We want to cover all the items used by farmers and sell them cheap. This will reduce incidents of farmer suicides as well. We are in talks with Tractor Company for tractor sales. If all goes well, farmers will benefit by Rs 1.1 lakh per tractor,” explains Senjalia. Farmer’s malls make middlemen redundant. “By saving on agent’s commission, the benefit can be passed on to farmers. In pesticides, farmers get about 60 per cent margin. Farmers will not be exploited,” said former finance minister Sanat Mehta. The mall will be integrated with Maha Gujarat Agri Cotton Producers’ Private Ltd. It will be the technical wing of the company, he added.