Since the beginning, our philosophy for Anandham has been to grow only crops that are directly consumable by the producers (that's us). This summer (as we did last summer), we sowed "எள்" (Ellu/Sesame) in most of our arable fields.
Due to various reasons, we had a sub-optimal yield. At prevailing prices at the time of harvest (a couple of months back), our yield would have lost us about 25-30% of our investment. Instead, we decided to just stock it at home and wait. Why? Because we could afford to (more about this later in the post).
Last week, we sold the majority of our sesame stock at INR12 more per kg than what we were offered less than two months back. At this rate, we even managed a decent profit for the season.
Now, to the waiting part - how many small and medium farmers could afford to wait two months or more to sell their produce? Only a very few. The rest have debts to repay and home expenses to take care of - they have to sell off their crop as soon as possible. The middlemen, whose business is to stockpile agricultural products at harvest time, end up making most of the profit from increases in prices. So, when Government ministers claim price increases benefit farmers, please don't believe them.
Due to various reasons, we had a sub-optimal yield. At prevailing prices at the time of harvest (a couple of months back), our yield would have lost us about 25-30% of our investment. Instead, we decided to just stock it at home and wait. Why? Because we could afford to (more about this later in the post).
Last week, we sold the majority of our sesame stock at INR12 more per kg than what we were offered less than two months back. At this rate, we even managed a decent profit for the season.
Now, to the waiting part - how many small and medium farmers could afford to wait two months or more to sell their produce? Only a very few. The rest have debts to repay and home expenses to take care of - they have to sell off their crop as soon as possible. The middlemen, whose business is to stockpile agricultural products at harvest time, end up making most of the profit from increases in prices. So, when Government ministers claim price increases benefit farmers, please don't believe them.