The economics of supply and demand suggest that low production of a seasonal commodity and the resultant demand for it should push up the prices. But, for the mango growers of Krishnagiri, the fall in yield to less than 30% has not fetched them remunerative prices this summer.
Pulp factories acting as cartels, determining the price of mangoes and pushing down the prices despite the low production, and the hands-off approach of the State and the district administration is the reason for the plight of the mango growers, alleges K.M. Soundarajan, of Maa Vivasayigal Kootu Nadavadikaigal Kuzhu. It was clear at the start of the mango season that the production this year would be low due to inadequate rainfall, and drought in the mango growing areas of Bargur, Uthangarai and Mathur areas of Krishnagiri, which is the largest producer of mangoes in the State.
At the start of April, prices were expected to be better for the farmers, who had hoped that this would help them meet the costs incurred in production.
However, despite the yield being less than 30%, farmers have received between ₹10 and ₹16 a kg in the past one month, says Mr. Soundarajan.
“Last year, there was 90% yield and farmers were given between ₹.7 and ₹10. Last week, farmers were given ₹16 by the pulp industry, which brought it down to ₹13 as of Wednesday,” he said.
Production cost
For the farmers who spend ₹20,000 per acre as production cost, the prices offered by the industry does not factor in the cost of water brought in tankers to tide over the drought conditions.
There are 29 pulp factories in the district and each quotes ₹13 per kg.
While the pulp industry has the ability to collectively regulate the price of the fruit, farmers do not have the wherewithal for collective bargaining when dealing with a perishable commodity. Once the fruit is ripe, farmers have no choice but to give it to the pulp factories.
It is alleged that in the absence of State intervention, the pulp industry has formed a cartel, whittling down prices for the farmers. According to Mr. Soundarajan, there should be a tripartite meeting annually, with the Department of Horticulture and the Collector chairing the talks between the mango growers and the pulp industry. “But, when we gave a petition, we were told of the Model Code of Conduct being in force for the elections, which has nothing to do with farmers. Thereafter, no meeting was convened.” “Pulp factories play a huge role for the farmers and we recognise that. But all we ask is for them to act with humanity and offer us remunerative prices. We have also been demanding Government-run pulp factories in each union to counter the monopoly,” he says.