Why Don't Farmers Sell Their Products Directly To Consumers?

Let us assume I make my own website to sell my products online, directly to the consumer. I can do that because I'm educated and I know about digitalisation. Do remember that most of the farmers are uneducated.

Suppose you need 10 kg of groundnuts right now. And I have produced groundnuts this year. You live in Mumbai, and I'm from Porbandar.

How do I send it?

And to send it, I'm required to keep on hold my ongoing task related to farming, go to the city and send it to you through any available services.

I return home, and within 30 minutes another person from Delhi orders 50 kg of groundnuts. I repeat the process at the cost of my work on farms.

Being a wise “man”, once the demand is high, I hire one person to help me out in delivery services.

Gradually, demand increases. I hire more people.

Demand keeps on increasing. Now, it is much more than my production. And I am earning very well, more than in my farming business.

Since it is giving me good returns, I start buying farm products from my neighbours.

Congratulations Vijay! You are a middleman now and not a farmer.

And why the hell in the world you will buy from me when it will cost you the same as your local market?

Because, whether you transport 1 kg or 10 kg or 1000 kg through trucks, the charge doesn't change much. In fact, transportation of 1kg would prove to be costlier than 1000 kg. This is basic maths.

Although I will charge you ₹60/kg, after transportation charges you will receive it around ₹140/kg.

Plus, why would I charge you so low, when I'm leaving my other work and focusing on this business? I would definitely charge you more than what I get here.

And then why would you buy from me, instead of your local market?

Farmers who own around one acre of land and who live very close to a town or a city do sell their produce directly to the consumers.

Because they have free time to do so and their produce is in limited quantity so it gets sold quickly.

Plus, in my area, everyone grows groundnuts. Nobody needs it. Where do I sell it locally? Farmers don't sell their products directly to consumers because it's nearly impossible. It is not as profitable as it seems.

To reach a customer, you need a proper network. And when you set up a proper working network, you are called a businessman, not a farmer.