Bangalore | Bigbasket.com, India’s online supermarket network, has taken a lead by voluntarily setting a subsistence price of tomatoes for farmers hit by crisis due to the sudden crash of tomato prices in Karnataka.
With a glut of tomatoes in the Bangalore market owing to a bumper harvest in the growing regions of Kolar, Malur and Chikbalalpur, prices in the wholesale markets have crashed to as low as Rs 1/- per kg. A price as low as this does not even recover the cost of production of tomatoes, which is around Rs 5/- per kg. As a first step towards addressing the ongoing crisis, bigbasket.com has decided to pay the farmer a subsistence price of Rs 7/- per kg as against the market price of Rs 5/- to cover at least the cost of cultivation of the farmer and give him a sustenance income.
At the same time, to be fair to the consumer, they will be selling the product to customers in Bangalore at zero margins. “This small step being voluntarily taken by us shall change the discourse around distress sale by the farmer and highlight the importance of right pricing in agriculture commodities, as there is the farmer on one end and the consumer on the other. It is important, not to harm the interest of one at the cost of the other,” said Vipul Mittal – National Head F&V, bigbasket.com.