Generation to generation, our problems have been the same… many have come to help and many have failed.
Current economic conditions dictate that many impoverished farmers are extremely vulnerable to price risk and low margins. Often, their crops are highly perishable; whatever price is offered, they must sell. For example, according to an IL&FS study, tomatoes were sold for between 1.5 and 12 rupees per kg in 2010 in Nashik, Maharashtra (near our pilot site). The same study showed that farmers earned only 25% of the end price to consumers, whereas international benchmarks are closer to 40-50%.
Meet Our Farmers
With Krishi Star, farmers reap high benefits from the stability and increased income that results from ownership of processing capacity and access to secured markets. By providing farmers with fixed contracts for their crops, Krishi Star allows farmers to sell their products for fair and predictable prices. Agricultural goods that are even minimally processed receive much higher prices on the market, and their prices tend to be less volatile as they are less susceptible to supply shocks. As they will be equity owners in this revenue stream, farmers will be adding a stabilized source of income to their livelihoods. Furthermore, farmers will have the opportunity to accumulate assets through their partial ownership of the processing units with Krishi Star.