Western Producer reporter Mary MacArthur continues her travels across India, exploring the land many say could become the next big market for Canadian farmers.
TANDUR, ANDHRA PRADESH –For more than 60 years, local farmers have been coming to the Tandur Agricultural Market to sell their cattle, grain and vegetables.
For farmers, the government-monitored market is where commission agents and traders will buy their produce in an open bidding system.
Damodar, secretary for the agricultural marketing committee and a pigeon pea trader, said as the pigeon pea harvest gets into full swing, so will the crowded marketplace. Late season rain has delayed harvest by 15 to 20 days.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Rice harvest is underway in the area and rice is also being brought to the market.
Today, Damodar bought 1,000 bags of new product. At the peak, any of the 69 traders at the market will buy 5,000 to 10,000 bags a day from farmers in the 30 to 40 kilometre trading area.
Rice is carried in 70 to 80 kilogram bags and pigeon peas are bagged in 100 to 120 kg bags.
Depending on the amount of product, a farmer may sell his crop to a commission agent, who assembles larger amounts of crop on behalf of farmers and then sells it to one of the market traders.
All of the agricultural markets dotted across the country are watched by a government official who monitors the weighing process, looks after all transactions and provides a guest house and drinking water for farmers who must wait hours in the hot sun to sell their crops and livestock.
Government agent C. Mallireddy, who is in charge of the market, said through a translator that the market is highly regulated and the government has a strict eye on the system.
A one percent commission from all sales at the market is used to operate the six-day-a-week market.
The agricultural market will also offer farmers a cash advance on their crop sales interest-free for three months. The advance can be rolled over for another three months, but with some interest.
Mallireddy said few farmers have taken advantage of the loan program because of the solid market prices.
Farmers and traders are growing out of the three-acre location in town and plans are being made to move to
a larger 14 acre facility on the edge of Tandur that would house the grain and livestock market.
“This is a small premise and becomes very difficult to transact in a small area,” said Mallireddy.
