Low base price: Middlemen eat into pineapple farmers’ income

They procure pineapple at throwaway prices, sell it in North Indian market at exorbitant rate 
Low base price: Middlemen eat into pineapple farmers’ income

KOCHI: Known for its unique aroma and sweetness, the Vazhakulam pineapple has become the prime livelihood of the people in the region. Its fame has spread far and wide attracting markets in North Indian cities and West Asian countries. The GI registration boosted exports and its high reputation helped fetch premium price in the international market. However, like any other crop, middlemen have started plundering profit denying farmers the fruits of their labour.

The farmers complain that the middlemen procure pineapple at throw away prices and sell it in North Indian market at exorbitant rate. The state government has fixed the base price at Rs 15 per kg but the production expense is around Rs 23 per kg. The middlemen unilaterally fix the price and payment is irregular.

Meanwhile, the Vazhakulam Agro and Fruit Processing Company, formed to help and support growers by manufacturing value-added products from pineapple, is unable to carry out the trial run of the refurbished factory as farmers are not ready to sell their produce to the company. With 51% government holding, the company can procure fruit only at the government-fixed base price of Rs 15 and the farmers say selling the produce at base price will land them in debt trap.

“Pineapple farming is labour intensive and we provide 170 work days to the farm workers. Considering the high input cost, we should get at least Rs 23 per kg for green pineapple and Rs 30 per kg for fruit to earn some profit. The middlemen procure the fruit at Rs 15 and sell it at exorbitant rates in North Indian market. They often don’t give the rate which they offer during procurement,” said Pineapple Farmers’ Association president James George.

“The commission agents are united and they handout a raw deal to the farmers by lowering the procurement rate. It is not easy to unite the 5,000-odd farmers to fight the exploitation. The government should raise the base price and protect the farmers from middlemen,” he said. The farmers are unable to withstand pressure from the traders as pineapple is highly perishable and has low shelf life. 

“The normal shelf life is eight days and it takes four to five days to transport the fruit to Delhi and other North Indian markets. If we try to bargain, the whole produce will perish,” said a farmer. The farmers’ body has given a representation to Agriculture Minister P Prasad seeking his intervention to revise the base price.

“The farmers should unite against the exploitation of middlemen,” said Kerala Congress working chairman and former Union minister P C Thomas. The middlemen are procuring pineapple at `10-`15 from the farmers and selling it at Rs 200 to customers. The Union and state governments should support the farmers and save them from exploitation, he said.

‘Regular supply needed for company’s functioning’
The representatives of the Vegetable and Fruit Promotion Council Keralam (VFPCK) and Vazhakulam Agro and Fruit Processing Company (VAFPCL) complain that the farmers sell their produce to middlemen when the market rate is high and protest against the agro processing company demanding procurement when the market rate is low. “If the base price fixed by the government is low, the farmers have to take it up with the government. The agro processing company was formed to help the farmers but they refuse to sell their produce to the company when the market rate is high. The company needs regular supply of pineapple to function,” said VFPCK director K Sreekrishnan.

“We have recently refurbished the pineapple processing unit but have been unable to complete the trial run due to lack of supply. We conducted two trials and have been pleading with the farmers for supply for the third trial. The unit can process 50 tonnes of pineapple a day and we need at least 250 tonnes to ensure continuous functioning of the unit. We have also installed a new pet bottle unit. The farmers prefer to sell the produce to traders as they can offer higher price. As a public sector unit, we can procure only at the base price fixed by the government,” said VAFPCL managing director Shibu Kumar.

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