Palamaner Tomato Farmers Face Losses Due to Trader Malpractices

Tirupati: Tomato farmers in Palamaner region incur financial losses due to alleged fraudulent practices by traders. The farmers claim they are losing substantial amounts of money as a result of unauthorized deductions from auction-announced prices.

At Palamaner, market committee officials set the price for a 15 kg box of tomatoes at Rs 770 during auctions. However, farmers report receiving only Rs 730-737, with a Rs 40-47 deduction per box. When questioned about this, traders dismiss farmers' concerns, stating it's simply how their business operates.

"Traders are colluding to fix tomato prices", a farmer stated. "They're all setting the same low price, causing us heavy losses. On top of that, they're imposing cuts on the auction-announced price". The situation has escalated to the point, where farmers recently staged protests and confronted the auction organizers. They argue that the absence of market officials during auctions is allowing these practices to continue unchecked.

Data from the market committee shows that from July 8 to July 24, farmers brought in over 17,200 quintals of tomatoes. While the price was set at Rs 3,000 per quintal with a total of approximately Rs 5.16 crore paid to farmers, calculations suggest that unauthorized deductions may have cost farmers around Rs50 lakh in just this period. If projected for a month, losses could amount to more than Rs1 crore.

Adding to farmers' challenges, the government has recently abolished the 1 percent cess that previously went to the market committee. Farmers fear this may lead to even less oversight of market practices. A market committee official responded to the allegations, stating, "We're holding meetings with farmers and traders to address the current pricing issues and trying to eliminate deductions”.