It started with 65 farmers in Malerkotla in Punjab in December 2008. Now the Direct Farm Programme initiated by Bharti Walmart for Best Price Modern Wholesale involves 6,400 small and marginal farmers across Punjab,UP,Delhi/NCR,Haryana,Karnataka,Maharashtra and Himachal Pradesh,who supply up to 15 locally grown vegetables from lauki to capsicum,baby corn and seedless cucumber. As Punjab Chief Minister Parkash Singh Badal and his son and deputy Sukhbir Badal speak in two voices over FDI in multi-brand retail,farmers supplying to Bharti Walmart have had a bittersweet wholesale experience so far. In Mushkabad village of Ludhiana,Davinder Singhs farm boasts nethouses,low-tunnel technology and drip irrigation. Put up with the help of Punjab Agricultural University,the nethouses ensure better quality produce and use of less pesticide. The investment is worth the returns from big buyers such as Bharti Walmart. Davinder had a few years ago started Quality Veg Produce,with about 50 progressive farmers from Ludhiana,Patiala,Jalandhar and Fatehgarh Sahib,to promote use of technology,negotiate prices with wholesale and retail chains and explore potential markets,both domestic and overseas,for their vegetables that are certified safe (by a Jalandhar agency) under norms for fertlisers use and pesticide residue. Davinder,42,says Walmart quotes prices usually 10 per cent higher than mandis do but there is uncertainty on the size of orders. A bulk order from Walmart could range between half a tonne to two tonnes,depending on demand. Since the orders are unpredictable,we cannot fully rely on them and sell the remaining produce at mandis,at times at low rates, he says. The main gain for farmers has been in terms of agronomic practices and technology. Walmart has set certain standards; there is an additional bonus for delivering quality produce. We are also provided training by their field agronomists. FDI in multi-brand retail will bring post-harvest facilities and cold chains and cut down on wastage. But Jaswinder Singh Sangha,who heads the Jalandhar Potato Growers Association,calls the buyers the new middlemen. We supply baby corn. The contract price fixed was Rs 8 a kilo. But they usually bring the price down by Re 1 a kilo saying it is below specifications or reject some lots, Sangha says. Despite producing pesticide-free vegetables,finally the price works out to a mere Rs 1 to 50 paise a kilo more than what the mandis give. Also,the vegetables we pick in the evening first go to their collection centres for sorting and grading and reach retail stores on the third day,when they are no more fresh. Jalandhars Rana Jung Bahadur,known as the Potato King,says the farmer is not yet part of the supply chain as FDI wholesale stores such as Bharti Walmart and Metro Cash & Carry as well as Indian retail chains such as Reliance Fresh and Birla More are still buying from mandis. With FDI,retail chains will have to enter into forward contracts with farmers for developing a supply chain. In case of any loss due to natural calamities,normally market forces compensate as prices move up. But in case of pre-fixed contracts,the farmer will be at the mercy of retail chains, he says. To be able to diversify towards fruits and vegetables,the Punjab farmer needs post-harvest facilities and assured marketing. The moot point is whether FDI retail chains will procure directly from farmers and offer them assured marketing and invest in back-end infrastructure, says G S Kalkat,chairman,Punjab Farmers Commission. Farmers such as Devinder raised this during a meeting with CM Badal. We said the government should help us market our produce; we need mini processing plants and post-harvest facilities. These can be created by farmer cooperatives that can retail fresh produce directly or take it to markets that fetch good prices, he says. Bharti Walmart,in an email response to The Indian Express,said it is working with over 6,400 farmers in the country and ensures 7 to 10 per cent higher prices to farmers than what they get from mandis. There is three to four per cent incentive for quality produce farmers deliver to Bharti Walmart based on customer requirement. We also offer expert advice on better crop planning and management aimed at catching early and late seasons for better prices. In the Direct Farm Program,we have designed levels of checks to ensure proper use of pesticides. We have appointed field agronomists who work with the farmers to help them with best agronomic practices. We have also set up model nurseries to provide healthy seedlings to the farmers. On post-harvest infrastructure,it would not disclose the investment. On procurment,it said Walmart sources from farmers directly. ..there are over 690,000 members of our stores across India. Of this number,over 200,000 members are across Punjab.
