SALEM: A massive drop in the price of tapioca, from Rs 14,000 per tonne last year to Rs 4,500 this season, has left farmers struggling in Salem as they are unable to even cover the production costs.
Once considered a drought- resistant crop, the drop in tapioca price is now pushing cultivators into crisis mode or forcing them to abandon the crop altogether.
In Salem district, which contributes a major share of the state's tapioca output, farmers say they cannot even take the production cost back unless the price touches at least Rs 6,000 per tonne.
"Last year, we managed to sell at Rs 12,000-Rs 14,000, but this year it has dropped drastically. Once a farmer friendly crop, tapioca has not become risky business," said S Jayaraman, a tapioca farmer and president of the Salem District Farmers Club Federation.
“Unlike processed products such as sago or starch, tapioca has a very short shelf life of less than 24 hours after harvest. During monsoon or peak summer months, difficulties in harvest further weaken the farmer's position.
This gives marketers, who also manufacture the byproducts, an upper hand in dictating procurement prices as they can store the processed output for long periods and wait for favourable markets,” he said.
Farmers also pointed out that while tapioca prices have always fluctuated, this year's fall has been sharper than usual. In some seasons earlier, farmers had at least managed Rs 8,000-Rs 10,000 per tonne, which sustained them. They also added that in recent years, the price per tonne has not fallen to Rs 7,000 and this year's fall is unusual.
The uncertainty is now pushing several farmers towards alternative crops. In parts of Salem, cultivators have begun to shift to crops like maize, hoping for steadier returns. "It is not easy to abandon tapioca, as many of us have been growing it for generations. But when the market fails us year after year, we are left with no choice," said V Selvaraj, a farmer.
Farmer leaders argue that this imbalance begins from the absence of bargaining power. VS Govindaraj, president of Salem District Farmers Welfare Association, said farmers should be allowed membership in the Salem Starch and Sago Manufacturers Service Industrial Cooperative Society, better known as Sagoserve. "Currently, only mill owners are members and they decide the rates. Even tapioca from hilly regions like Kalvarayan Hills, which has higher starch content, does not fetch farmers its true value," he said.
Sagoserve, however, maintains that its role is limited. "We are not directly involved in determining the price of raw tapioca. Our work is focused on the processed product, sago. We are trying to expand demand for sago in markets like Maharashtra, where consumption is higher," said Sagoserve managing director R Keerthy Priyadarshini.
She acknowledged that farmers have been pressing to be included as members but said such a change requires the approval of the existing membership, which consists mainly of manufacturers. A proposal to make farmers full members was rejected by the general body, but efforts are under way to include them as associate members, she added.