Garg: Low farmgate prices reflect value addition, not farmer exploitation
Subhash Chandra Garg · India's Road To $10 Trillion Economy With Subhash Garg, Former Secretary Of Economic Affairs · Nov 27, 2024 · at 39:29
Former Indian Economic Affairs Secretary Subhash Chandra Garg explains supply chain economics and the difference between farmgate prices and final consumer prices.
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“There's many times you would be hearing this argument in our country that the farmers are looted they get for the papaya or for the apple they produce, they get only 10% or 20% or 30% of the final price which is paid, right? This is a very short-sighted argument. And this flows from what I earlier said, this Anandata kind of syndrome. The final value which the consumer pays for a chip in this case, or a raw potato in that case, or a apple which is delivered at its home, or the apple which the farmer delivers at his farm, right? There is a world of a difference. The consumer here is not consuming the apple In the, at the farm of the farmer, right? The apple which is sold undergoes a lot of washing treatment, then storage in ways where it doesn't deteriorate for months. Then it's getting transported here. The guys who are vendors, then they would get it to your home. So a lot of people are also doing value addition. So we should not decry the value addition contribution of the people in the chain to make the farmer sort of categorized as that poor guy exploited one. No. It is, he valued that much, he added that much value only.”
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