Can Sahyadri do an Amul?

THE SUCCESS OF SAHYADRI FARMS PRESENTS A BLUE PRINT FOR THE FRUITS AND VEGETABLES SECTOR

- ASHOK GULATI RAYA DAS Respectively distinguished professor and fellow at ICRIER

India's fruits and vegetables (F&V) sector is growing faster than cereals, contributing roughly 30% to the value of crop agriculture. It is also more nutritious. Yet, it receives far less policy focus and institutional support compared to cereals. Without organised value chains, proper storage, or adequate processing facilities, the F&V sector remains highly vulnerable to seasonal gluts, price crashes, and post-harvest losses. Around 8.1% for fruits and 7.3% for vegetables are lost in post-harvest value chain, amounting to 37% of total post-harvest losses of ₹1.53 lakh crore annually (NABCONS, 2022). Moreover, with highly fragmented value chains, farmers typically receive about 30% of what the consumers pay for F&V. But what if these small holders join hands and float farmer producer companies, the way it was done in case of milk?

The milk story is well known. Cooperatives under the leadership of Verghese Kurien changed India's landscape from a highly milk-deficit country to the world's largest producer of milk with 239 million tonnes, followed by the US at 103 million tonnes in FY24. More interesting is the fact that brands like Amul claim their milk farmers receive 75-80% of the consumer price.