Marketing of Organic Produce in Chennai?

Farm Questions
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1

Hi All,

Does anybody from our forum sell their Organic produce to the various Organic Shops in Chennai? Please share your experiences in this forum.

Few queries below:-

  1. Which of the Organic Shops buy in bulk quantities?
  2. How much quantity they purchase per transaction?
  3. Whether the purchase is on a daily basis, every few days, weekly?
  4. Fixed Price or Variable Pricing? If it is Variable Pricing, what is the benchmark for this pricing?
  5. Do they pickup from our farm or have a common pickup point?
  6. When do they pay for the transaction? Immediate, Weekly etc
  7. Any other points to consider
2

I can answer for Hyderabad - Chennai should not be too different.
2. Mostly in kgs
3. Most shops in Hyd have a fair one or two specific days of the week
4. Variable. Shops might dictate a price, but if you are a strong organic producer, you could negotiate something like 60-65% of retail price of the shop
5. Mostly delivery at the shop, some guys pick up. Pricing may vary 5% between the two
6. Very variable, assuming they do pay

3

We have tried so many things in Chennai but finally ended up selling at a fixed price in our locality itself.

Regards
Padmanabhan Ganesan

4

Good to know. So it your own shop that runs all days or do operate from your residence or so?

5

Actually, one of my friend was creating a vegetable patch and we wanted to sell it. After several trial and error methods, at present we are selling in the nearby places around the farm itself at a fixed price.

Ours were purely organic vegetables but there was no premium from the buyers. The wholesalers were literally giving rates in single digits and on top of that the commission charges, transportation and loading & unloading charges were deducted giving us very little return. So, we decided to sell in the local itself.

6

Small farmer cannot deal directly with seller. It’s better to join local organic farmer group or farmer producer company. These organization can negotiate better due to the scale of operations.