Six regulated markets established in the district for the benefit of farmers have virtually become defunct and chilli growing farmers were forced to sell their produce to commission agents, paying an all time high eight per cent commission this season.
The regulated markets were established to help farmers sell their produce at the highest bid by a trader but the traders, forming a syndicate, discouraged the farmers from visiting the markets to avoid paying three per cent cess to the government.
As the chilli season commenced in the district, farmers who had grown “Ramnad Mundu,” the native variety which commanded good price in the domestic and international markets thanks to its colour and pungency, flooded the market with the produce but ended up paying 8 per cent commission to the agents.
Seven big trading companies virtually run the market and the 180-and-odd commission agents in Ramanathapuram, Paramakudi and other areas procured chillies from farmers for the big traders at prices fixed by them, sources in the market said.
The farmers could bring their produce only on a particular day fixed by the traders and sell their produce at the price fixed by them, sources said.
“Every year, percentage of commission was going up but we have no option but to be at the mercy of commission agents,” S Munusamy, a farmer from Kamudhi said. The farmers also suffer loss as their produce was under weighed, he added.
The government has made godown facilities for the farmers to store their produce and sell them when they get good price.
The government also offered interest-free loan on the stocked produce, but the farmers visit the commission agents to get ‘instant money’ and interest-free advance money.
This season, the farmers, who had cultivated ‘Mundu’ variety in about 17,000 hectares, had bumper harvest of 1.5 tonnes to 2 tonnes per hectare but they seldom used the godown facilities, official sources said.
This season, the price loomed around Rs. 70 to Rs. 90 per kg and the best variety was sold for Rs. 100 per kg, the sources said.
Last season, the farmers sold the chillies at Rs. 120 to Rs. 135 per kg at the rate of 6 per cent commission.
“This year, we have hiked the commission by two per cent due to increase in labour cost,” a KKR commission agent said.
