As the harvest season approaches, farmers gear up to sell their produce, especially when it comes to paddy. Paddy marketing is an essential activity for farmers as it is their primary source of income. They incur various expenses while transporting their paddy to the mandi or market.
One of the primary expenses incurred by farmers during paddy marketing is transportation. Farmers need to transport their produce to the mandi, which incurs a significant cost, especially if the market/trading center is located far away from their farms. They need to arrange transportation like tractors, bullock carts, or hired trucks to transport their produce to the mandi. Farmers often need to pay a significant amount to transport their produce, which cuts into their profits.
Another significant expense incurred by farmers during paddy marketing is storage. Farmers need to store their paddy in godowns to keep it safe from rodents and insects. The rent charged by godown owners keeps inflated during the harvest season, and farmers need to shell out a considerable amount to store their produce. The charges depend on various factors such as the duration of storage, the quantity of paddy, and the location of the godown.
Paddy cleaning is also an essential activity that farmers need to undertake before taking their produce to the mandi. They need to clean their produce to remove any impurities and debris. The cleaning process requires labor and types of machinery, which add to the expenses incurred by farmers.
Another significant expense incurred by farmers during paddy marketing is commission charges. Mandis charge a commission on every quintal of paddy sold in their market. This commission ranges from 1% to 2.5% of the total sale value of the produce. For instance, if a farmer sells 10 quintals of paddy for Rs. 20,000, then the commission charged by the mandi could be anywhere between Rs. 200 to Rs. 500.
In conclusion, paddy marketing is essential for farmers to generate income. However, farmers need to make significant investments to transport, store, clean, and sell their produce in the mandi. They need to bear the cost of transportation, storage, cleaning, and commission charges, which ultimately cut into their profits. It is essential to take adequate measures to reduce these costs so that farmers can maximize their profits and sustain themselves.