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Should I export directly or sell to a merchant exporter?

BBalwinder Singh9mo ago · 271 views

I am confused whether I should get all the registrations and export myself or just sell to a merchant exporter. Which is better for a farmer.

4 Answers

🌾Farmer.in Krishi TeamExpert ✓9mo ago

For most individual farmers, especially at the start, selling to a reputed merchant exporter is the smarter first step, and going direct makes sense later once you have volume, finance and experience. Selling to a merchant exporter means they handle the IEC, APEDA, buyer relationship, documentation, cold chain and payment risk, and you focus on growing the right quality, though your margin is lower. Direct export gives you the full margin and buyer relationship, but you take on registrations, working capital for long payment cycles, documentation, quality compliance and the risk of buyer default and policy changes. A practical path: supply a good merchant exporter or your FPO for a couple of seasons, learn exactly what quality and process the export market needs, build some capital, then take your own IEC and APEDA and start small directly. Pooling through an FPO is often the best middle path for small farmers. Verify any exporter or buyer before committing produce.

KKaran Gill8mo ago

I sold to a merchant exporter for three seasons, learned the quality bar, then went direct through my FPO. Do not jump straight to direct export, you will lose money on mistakes.

MMohammed Rafiq8mo ago

Direct export margin is tempting but the payment cycle killed my cash flow the first year. Buyer paid after 45 days while I needed money for the next crop. Plan working capital before going direct.

AAnand Kulkarni8mo ago

Whichever route, check the exporter is genuine. Ask other farmers if he pays on time. Some merchant exporters delay payment too.

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