Monday, 21 January 2013
The Current Dead Lock of Farmer and Buyer of Guar ( Guar Gum) crop
This rate Rs 35,000 was in April in last year. Any price you are getting above 5000/ qt is good enough. The current level of Rs 13000 is best one in comparison to the other commodities.
There is no any positive sign of deadlock from farmers. Under the influence the farmers are not selling the commodity. The price was expected to grow in natural way. But the deadlock condition can harm the farmers in the long term.
The deadlock of farmer is moving toward the political movement. The politics and economics are two different things. In this condition the no investor would like to pure the fund in the industry. If the gold is being sold slowly at gold price that is OK, but if the Iron is not being sold at gold price that is questionable.
I always put the guar crop profitable for farmers still it is profitable for farmers, But the situation which is has been created on this point that is point to worry.
Farmer has right to sell its commodity at a particular price. But if the farmers are not selling the commodity at a particular price that is not good sign and point of investigation.
Business doesn't mean the cutting the supply line. It is all about to balance the demand and supply. What ever height is there to balance the demand and supply, that is understandable.
Buyer is not a foolish, he is studying each and every activity of supplier.
Ethics always matter in any type of venture for a sustainable long term growth. Playing good is justified but holding the ball is not going to make champion to the farmers.
Anyway still Guar is the profitable crop in context to cost of cultivation, time of maturity, low disease and insect attack, good for storage , land improvement, fertility increase, low water requirement.