Can Farmers Sell Directly to
To outline the basics, contrary to Western market practices, Indian farmers are prohibited by law
from selling their produce directly to city retailers. He can sell to end users, but he has the
limitation that he cannot sell more than 400 kilograms.
If he produces more than that number, he must go to a government-run agricultural market.
Authorised brokers, commission agents and dealers are active in these markets. Only such
licensed entrepreneurs are allowed to purchase produce from producers.
There are three main reasons why most of the products that farmers grow or raise are
not sold directly to consumers.
1.Most merchandise aren't geared up for intake instantly off the farm and want in addition
processing. Wheat desires to be processed into flour. Soybeans want to be beaten and was
soybean meal and soybean oil. It isn't always reasonably-priced for the farmer to each improve
the product after which additionally spend money on processing it.
2.To preserve food, fibre, and gas charges low and so farmers could make a dwelling salary they
want to have economies of scale. Thus the volumes that farmers are developing and elevating
those merchandise could boggle the thoughts of the ordinary American or consumer.
3.Farms, ranches, etc. are located in rural areas. Consumers are located in urban areas.
Consumers are not going to drive half way across the country, down a gravel road, twice a
month, to my farm to purchase the corn flour they want and I am not going to buy a corn flour mill
and a truck and try to deliver to hundreds of thousands of consumers across the country.That is
why you have food processors, distributors and grocery stores.
Subhiksha Farmers to Consumers
Subhiksha Organic Farmers’ Multistate Cooperative Society Limited is registered
under the Multi-State Cooperative Societies Act (2002) Ministry of Agriculture and
Farmers' Welfare, Govt. of India. We are currently delivering farmer's produce
from across 15 districts in Karnataka to consumers' homes in Bengaluru.
Subhiksha is India's first vertically integrated multi state co-operative society, run and
managed by farmers
- Farmers sell directly to end consumers, without any intermediary.
- The produce & price are directly controlled by farmers through the co-operative
- Every produce bears the name, location and photo of the farmer and his family,
ensuring traceability of all products.
- Consumers and farmers meet periodically through the Krishi Melas to mutually
learn, understand each other, and improve the process.
- We facilitate farm visits for interested consumers.
- More than 30% of our field officers are women.
- A minimum of 73% of our Product Cost goes directly to the farmer's account.
- All financial transactions are digitally enabled, thus bringing in transparency and
- We have an open architecture, and we help other organic farmers' group to replicate
this model in other regions.
- We take responsibility for the environment and ensure that all our packaging is