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Banned 'jackpot' system, higher cuts to middlemen hit tomato farmers
- Under jackpot system, middlemen take one box free out of 10 boxes of produce in the name of wastage
- Though the system is banned long ago it is very much prevalent in the markets
Tirupati: The banned 'jackpot system' in tomato trading is still prevalent in Madanapalle area much to the dismay of the farmers. Under the system, when they bring 10 boxes of tomatoes to the market yard, they will get payment for nine boxes only from the middleman who takes away the remaining one. This is in addition to their regular commission with which the farmers were forced to incur losses.
However, the jackpot system depends on the quality and quantity of the product that has come to the market. A farmer said that it has become common for them as traders and middlemen normally take one box for free in the name of the jackpot system. If the quality of tomatoes are extremely good, there may not be any wastage though it is a rare case.
Normally, tomatoes are very much perishable and require extreme care while transporting at every stage. When the crop reaches the market yard from the fields some tomatoes will be damaged which is common.
Accordingly, based on the quality, on an average one box will be taken as wastage without paying any amount for farmers and they have no other choice but to accept it. Significantly, this jackpot system is in addition to their regular commission. Though the government approved a four per cent commission, in reality, it ranges from 6 – 10 per cent and becomes a double whammy for tomato growers who are always at the receiving end in the hands of traders and middlemen.
Erstwhile Chittoor district is popular for cultivation of tomatoes with areas like Madanapalle, Punganur, B Kothakota, Gurramkonda apart from other areas known for this crop. As farmers cannot sell their produce on their own, they have to rely on the market yard and accept the terms dictated by the middlemen there. The middlemen form a syndicate and decide the price on their own in which farmers become helpless.
Another farmer Jakeer told The Hans India that though the jackpot system was banned by the government it never stopped. If the commission comes down to the permissible ratio and the jackpot system goes, it helps the farmers immensely. But, he said that he won't find such a scenario in the near future.
