I feel the commission agent eats a big share. Is there a legal way for a farmer to sell directly to a buyer or company and skip the middleman?
3 Answers
Yes, there are several direct selling routes. You can sell on eNAM where buyers bid online and payment can come straight to you. Many states allow direct purchase from the farm or at the buyer's premises under unified or direct marketing licences, so a processor, exporter or large buyer can buy from you without the produce passing through a commission agent. Farmer producer organisations or FPOs let a group of farmers aggregate and negotiate directly with bulk buyers, which gives much better bargaining power than a single small farmer. Some states also run direct farmer markets or rythu or kisan bazaars where you sell to consumers. The catch is that direct selling needs volume, consistent quality and reliable transport, so for small lots it can be hard alone, which is why joining or forming an FPO is often the most practical step. Confirm which direct sale options and licences are active in your state with your local agriculture or marketing department.
We started supplying vegetables directly to a couple of hotels and a society in the city through our small group. Better rate, but you must deliver on time and keep quality steady or they drop you.
Alone it is very hard to sell direct because buyers want a truckload, not five bags. Through our FPO it works because we pool produce.