Direct agricultural marketing

Rythu Bazar, established with the intention of eliminating middlemen, allows consumer to directly purchase good quality produce from farmers.

Rythu Bazars have been established in the major cities of Andhra Pradesh to create direct linkages between farmers and consumers for the sale and purchase of agricultural produce. These bazars are transforming the environment in which farmers in Andhra Pradesh sell their produce.

Due to direct marketing, farmers not only making profits but are also safe from the harassment of the middlemen. The government has fixed the prices in a Rythu Bazar 25 percent above other wholesale market prices to motivate farmers to opt for Rythu Bazars. However, at the same time, the prices are beneficial for consumers as it is still at least 25 percent lesser than the retail shops. In addition, farmers have an organized place to sell their produce and are provided with operational resources like transportation and storage options. An online market information system is developed to help keep consumers aware about the produce and respective prices.

This approach followed in implementing Rythu Bazar is encouraging and sustainable. It offers lessons on meeting consumer satisfaction and running the markets through a well formed management and administration structure.

This case study was published in September 2011.

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