Why is there no Amul for Indian Crops or any big private players for warehouse, transportation and supply chain management of the crops produced in India?
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It won't be surprising if every few days we encounter an article like this http://articles.timesofindia.indiatimes.com/2012-02-03/rajkot/31021001_1_onion-growers-onion-crop-saurashtra-farmers. Even worse we all are aware that in India farmers are paid miserably for the crops, and it gets even worse in some of the parts of the country leading to many issues, particularly noticeable among which is farmer suicides. But, I am surprised why there is neither a cooperative society like Amul or any private player who can help farmers mitigating the risks, and provide better warehouse facilities saving country for one of its most precious assets (I am not talking about the money or the crops here, but the farmers). Is it because Government is not letting them come in, or the thing is not as lucrative as I am trying to make it sound, or people themselves are resistant to changes. References: http://www.nytimes.com/2012/06/08/business/global/a-failed-food-system-in-india-prompts-an-intense-review.html?pagewanted=all http://articles.timesofindia.indiatimes.com/2012-02-03/rajkot/31021001_1_onion-growers-onion-crop-saurashtra-farmers
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Answer:
well.....this is a question for phd thesis, nonetheless i'll to keep it short and simple. Before emulating AMUL model, you need to figure why it was a hit. 1. Among other things, it was a grass-root movement in Gujarat and not imposed by the central government. Other states have not been as successful with the cooperative structures imposed by state/central governments. 2. Also note that lower prices is a result of government regulation (farm marketing committees etc..) and will not change even if farmers move to a cooperative model. 3. Dairy products being perishable have different market dynamics - prices are not linked to global or national commodity prices, daily income is ensured etc...
Maheep Mandloi at Quora Visit the source
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