Beyond APMCs: A Look at India's Top Private Mandis and the Evolving Landscape

MUMBAI, 20 May 2024: For generations, Agricultural Produce Market Committees (APMC) mandis have been the heart of India's agricultural trade. However, a new wave is stirring in the form of private mandis.

These market spaces, operated by private companies, are carving a niche in the agricultural landscape, offering farmers and consumers new avenues for trade. This report delves into the top private mandis in India, exploring the produce they deal in and the farmers they cater to.

Paving the Way: Top Private Mandis in India

The rise of private mandis is a recent phenomenon, but some players are already making a mark:

• Sahyadri Farms (Maharashtra): This pioneering private mandi in Nashik boasts a 100-acre state-of-the-art facility. It focuses on high-value horticultural products like grapes and raisins, offering farmers online and offline trading options, storage facilities, and access to a wider market.
• ITC Choupal (Madhya Pradesh, Andhra Pradesh, and other states): This network of rural retail stores, established by ITC Limited, acts as a private mandi for farmers. ITC Choupal focuses on procuring agricultural commodities like wheat, soybeans, and cotton, offering farmers technical assistance and contract farming options.
• Reliance Jio Krishi Bazaar (Across India): Reliance Industries' venture, Jio Krishi Bazaar, utilizes a network of collection centers and online platforms to connect farmers directly with consumers and retailers. They primarily focus on fruits, vegetables, and staples like rice and wheat, offering farmers competitive prices and convenient delivery options.
• Ninjacart (Karnataka, Maharashtra, and other states): This Bengaluru-based agri-tech startup operates a network of collection centers and leverages technology to connect farmers with wholesalers, processors, and retailers. Ninjacart focuses on a wide variety of fruits, vegetables, and flowers, ensuring faster turnaround times and potentially better returns for farmers.
• Godrej Agrovet's Godrej Ahimsa (Across India): This initiative focuses on sourcing organic produce from farmers, offering them training, certification assistance, and access to premium organic markets. Godrej Ahimsa primarily deals in organic fruits, vegetables, and pulses, catering to the growing demand for certified organic products.

A Diverse Offering: Produce Traded in Private Mandis

Unlike traditional mandis that handle a broader range of commodities, private mandis often specialize in specific crops:

• High-Value Fruits and Vegetables: Grapes, strawberries, mangoes, and exotic vegetables find a ready market in private mandis due to their focus on quality, consistency, and faster delivery to consumers.
• Commercial Crops: Private mandis actively trade in commercial crops like cotton, sugarcane, and oilseeds. Contract farming arrangements with processing companies offer farmers assured buyback options and potentially higher returns.
• Organic Produce: The growing demand for organic food creates an opportunity for private mandis like Godrej Ahimsa to connect certified organic farmers with premium markets, fetching them better prices.
• Livestock: While less common, some private mandis may specialize in high-value livestock like breeding cattle or poultry, catering to specific demands within the agricultural sector.

Reaching New Markets: Farmers Benefitting from Private Mandis

Private mandis offer several potential benefits for farmers:

• Access to Wider Markets: Private mandis connect farmers with national and international markets, potentially bypassing middlemen and fetching better prices.
• Contract Farming Opportunities: Contract farming arrangements with private companies can provide farmers with assured buyback and potentially higher returns.
• Technological Support: Some private mandis offer farmers access to technology platforms, real-time market information, and agricultural best practices.

However, challenges remain:

• Limited Reach: Currently, private mandis primarily operate in specific regions, and their reach may not extend to smaller farmers or remote locations.
• Contractual Concerns: Apprehensions exist among some farmers regarding the terms and conditions of contracts offered by private companies.
• Focus on Specific Crops: The specialization of private mandis may not be suitable for all farmers who grow a variety of crops.

Conclusion: A Co-Evolving Landscape

Private mandis are a positive development for Indian agriculture, offering farmers and consumers new avenues for trade. As the sector matures, a collaborative approach involving government support, infrastructure development, and farmer education is vital. By fostering a healthy co-existence between private mandis and the existing APMC system, India can create a more diverse, efficient, and farmer-centric agricultural marketing landscape. This will empower farmers with more choices, potentially improve incomes, and contribute to a more robust and sustainable agricultural sector in India.

Image credit: tribuneindia.com