Why do you think selling through Rythu bazaars is better than selling through wholesale shops?
Answers
It is common knowledge that inefficiencies in the wholesale markets result in a long chain of intermediaries, multiple handling, loss of quality, which increase the gap between the price at which the consumer purchases his vegetables and the price that the grower gets. Large number of small retailers, each handling small quantities, create high overheads leading to high price. The state government of Andhra Pradesh, therefore decided on working towards the creation of a market where both growers and consumers get benefitted. Thus, Rythu Bazaars were established.
The Government of Andhra Pradesh started Rythu Bazaar in 1999 with the principal objective of helping farmers bring and sell their produce without the involvement of any middleman or marketing intermediary. Both farmers and consumers get benefitted with direct marketing as it helps ensure higher remuneration for the farmers and provides fresh vegetables at cheaper rates to the consumers. The usefulness of direct marketing at Rythu Bazaars is increased by the Andhra Pradesh Agricultural Marketing Department providing facilities like weighing scales for proper weighing, transportation, stalls for the farmers operating from these market yards. These market yards operate outside the purview of the Agriculture Market Committees and are managed by Estate Officers (administrative in charge of Rythu Bazaars) under the control of Revenue Department of the Andhra Pradesh State Government.
Currently there are 102 Rythu Bazaars in the State functioning from the last 14 years. To understand the strengths and weaknesses of these Rythu bazaars, an empirical study was taken up using SWOT analysis. This article focuses on the results of this study and suggests action for improvement.
Selling in Rythu Bazzars is better than selling in wholesale shops because production consistency and prizing are big nightmares when it come to a wholesale shop.
Rythu bazaars faces the customers directly without any middleman so prizing and production consistency will not be a big problem.
In Rythu bazaars owners of the product can sell their goods to the consumer at a reasonable prize and don’t want to fear about the commissions for the middleman.
In Wholesale shop, the products are sold in order where the product has to cross the factory and reach the market then to the middleman and then the the shop and then to the consumer or the retailer. Here fixing the prize becomes a hard part.