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Monday, 24 December 2018

How can Guar seed farmers make profit ? ( PART-2 )




Guar seed farmers can make extra profit from their corp with collective decisions and better marketing strategies.

Go for warehouse receipt funding. 

Farmers require money after harvest. Instead of selling to Traders at the time of lower prices, farmers should store his commodity in bank approves collateral managed warehouses. Bank will finance to farmers up 80%-90% value of commodity. Interest rates are very low for farmers. they can complete their financial need from that financed money. Commodity will be under control of farmers. Once the prices of Guar increase in market. Farmers can repay the funding to bank and get his commodity out from warehouse and he can sell the commodity in open market. He can directly sell that commodity to commodity exchange while commodity remains laying in warehouse.


Formation of farmers group. 

Instead of selling commodity in small lots. Farmers should make a group and make a big lot for selling. It will reduce the operational and transportation cost. It is easy to store the big lot in ware house. It easy to weight it in one lot. 

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How can Guar seed farmers make profit ? ( PART-2 )
Farmers group should take the weight of their commodity before selling 

Some notorious traders and processors make manipulation in weighing. Farmers should take the weight of their produce at known weighing bridge before selling. 

Put the commodity on the plastic sheet for auction. 

Generally, farmers put the guar commodity on auction platform without any plastic sheet. If commodity in not auctioned on time, then it keeps scattering. If will be put of plastic sheet, then farmer can cover his commodity in case of non-auction. Sometimes open laying commodity leads to unnecessary moisture loss. Farmers can cover his commodity if commodity remains laying, they can save the wastage and moisture loss.



Farmer can directly sell to processors/factories. 

There are some schemes where processor don’t need to pay the MANDI tax if farmers are selling directly to them. Processor don’t entertain the small quantity. There are many points where farmers need to be careful like percentage of wastage declared by the processors, actual weight of commodity, deduction of weight of packing bags. 

Value addition of guar seed. 

Though there is nothing to value addition with farmers except agriculture production of guar seed. If farmers make some strategy group level then they can get the guar seed processed any closed processing factory at Job work. They can store the guar gum with NCDEX. If future prices of guar gum are good, then they can hedge the guar gum prices. They can sell the Guar Churi/ korma in open market to farmers / Cattle feed manufacturer. Always there is some margin at every point of value addition. Farmers should try to go for value addition as much as they can if they find some additional margin.



Instead of individual approach farmers should go for collective approach and strategy. With collective approach farmers can make minimize the operation cost of commodity selling process. Always avoid distress selling. If prices fall below the expectation, then there is always possibilities that prices will bounce back in near future.

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