Saturday, March 2, 2013

A new economy of vegetables


We whine a lot about our economy. Rupee crisis proved it otherwise. And we hardly care about the remedy. 

Consuming local vegetables can help solve the problem. It might seem like a stupid economics but impact can be real. 

An individual buying a basket of local vegetables costing around Nu 500 may not make difference to economy but when all does a new economy will be born. 

And sadly, our economy doesn’t indicate much about the rural poverty. But there’s certainly a way to alleviate this rural plague. 

There’s growing criticism on the 11th plan’s theme of ‘rural prosperity and urban wellbeing.’ The truth is urban is in chaos and rural still in chill penury. But that’s not the irreversible apocalypse. 

Modernizing agriculture industry might be a future economic strength of Bhutan. Farmers in the remote fields are still ploughing as their forefathers did centuries ago. But neighbouring countries have adopted innovations. Perhaps that is why foreign products flood in our country. 

A simple example is imported vegetables. Our soil is as fertile as the foreign soil except we cultivate it differently. Our farm input is costly and strenuous whereas foreign farms are mechanized and easy. 

So it is no surprise when the economic indicators show the decline in agricultural growth. When the government gave incentives to farmers to grow more vegetables only few farmers took interest. The interested farmers took the shortcut. They cultivated easy vegetables. 

The winter vegetable production saw only few variety vegetables grown everywhere. It was a blow to the government’s policy to grow all variety of vegetables in the country. There’s no way we can curb import if local vegetables lacked variety. 

And consumers still prefer the beauty of imported vegetables. 

Perhaps it is ignorance for our consumers to compromise health over price and show. Health awareness has taken the backseat. Nutritious local vegetables can be easily ignored over pulchritude of imported vegetable grown using deadly chemical fertilizers. Imported vegetables contain chemical fertilizers more than the permissible limits which affects our nervous system and reproductive system. What a scary fact for a small society like ours!

Studies revealed that everyday an average Indian consumes vegetables that contain over 40 deadly chemical pesticides. Our dependence on imported vegetables follows suit.

Yet, even the educated lot turn blind eye to this reality. We tend to react only when consequences pinch. Like the rupee crisis. 

We need to open our eyes. Prick our conscience.

It’s time we build our society on a strong foundation. It’s time we consume vegetables grown by own farmers. The impact will be glorious.

Poor farmers in remote areas are trying their best to make an income from growing vegetables. But to their dismay consumers don’t opt for local vegetables. Perhaps this is why the rain seeps more in rural homes than the unruly lifestyle of costly apartments in towns.

People might argue they don’t see much farmers coming to towns to sell vegetables from whom they can buy. But the reality is it is beyond the means of the farmers to bring their goods to the market.

That’s why buyers need to go to the farmers and buy from them directly. This will let farmers earn real income. 

But this can only happen if consumers prefer local vegetables. It can only happen if schools, institutions, restaurants, hotels, hospitals, monastic schools, resorts, and retailers can prefer local vegetables. It can only happen if government takes a huge step forward to make this happen. 

Then everything will be ours. The vegetables, the money, the health, and the economy. 

We don’t have to rely on rupees nor have to import. Our farmers will no longer be in destitution if they start earning from growing vegetables. Perhaps this might be a solution to alleviate poverty than policies based on academics. 

Yes, and it doesn’t take anything to make a decision to switch to local vegetables. Because local vegetables are healthy, fresh and affordable.

Khampa
CEO
FreshVeg

Thursday, February 28, 2013

When you eat, they earn


A mother and her daughter looked weary to harvest vegetables. Even if they did it would take them quite a time to move the vegetables to a road point to be sold to a buyer. But the income from selling those vegetables will help send back the daughter to school.

They live in a small old house typically made of mud and wood. It is under Gaeserling geog in Dagana Dzongkhag. The nearest market is in Dagapela which is 15 kilometers of feeder road away from their place. Hiring taxi is their only means of transportation to get their little goods to the market which will cost them more than they would earn.

The mother is overjoyed and has prepared some wine from the fermented wheat for the buyer as a gratitude. The buyer has come to her house to buy the vegetables from her. She then gets hold of sickle and a bamboo basket for the harvest. The daughter follows suit. She keeps smiling. May be she knew she’s a chance of going back to the school.
The mother and daughter harvesting vegetables

From L-R: The daughter, mother, CEO of FreshVeg and differently-abled uncle
The buyer then adds his helpers into the labour to carry the vegetables to the road point. The mother has called his differently-abled brother to help carry the load. When the vegetables are loaded into the truck the buyer takes out four clean notes of Nu. 500. She makes two grand. She takes a deep sigh and bows down to the buyer for the income.

Such is the story that FreshVeg is making it possible. It is a recently established vegetable marketing and supply chain to promote local vegetables in the country. Their mission is to make every farmers earn from growing vegetables. It’s a business entity founded on social responsibility.

A young promoter is behind this concept of supply chain. Lobzang Dorji, 32, is on the run to uplift our farmers from the poverty through growing vegetables. “I have mortgaged everything to get some finance from Bhutan Development Bank Ltd. to make this dream possible,” he said.

The supply chain works on a contact farming mode. The farmers grow what the buyer wants. The buyer then fulfills the demands of the market. Such system has more certainty than chance.

“It’s a basic principle of demand and supply,” said Khampa, the CEO of the company, “but organized through a supply chain.”

What makes it stronger is the fact that government agencies are supporting the cause. The Department of Agricultural Marketing and Cooperatives (DAMC) has signed a Letter of Agreement with the company underlining all efforts of marketing the local vegetables. The support comes in the form of transportation subsidy, storage facilities, policy intervention, and promotion through media.

The question of what vegetable are grown in our country, where and when are all complied by Horticulture Division under Department of Agriculture which helps the company by sharing the expected production figures of the vegetables in various Dzongkhags.

“Farmers are our main drivers,” explains CEO, “if they grow variety of vegetables then our supply chain is complete since we have the government agencies participating in the chain.”

But where the chain ends? “Obviously it ends with the consumers,” Khampa said.

“If the consumers buy from us, then they are indirectly helping hundreds of farmers earn from growing vegetables,” he added.

However, the perception in the market is that local vegetables are expensive.

“Not anymore!” stated the CEO, carrying the plastic crate full of local tomatoes grown first time in Sershong in Sarpang and shelving for display.

“Price is not an issue if the consumers buy from us. For the first time we’re offering local vegetables at lower price. Even lower than the retail price of the imported vegetables. It’s a good deal!"

FreshVeg provides door-to-door delivery services without charging a penny.

But challenges in supply chain come as a hard blow to the initiative.

“There is no much variety in local vegetables,” lamented the CEO, “and this is the weakest link in our supply chain.”

The lack of variety has affected the whole system of supply chain. Adding salt to injury is the lack of technology for post-harvest handling of vegetables and transporting them through a cold-chain. As a result the business is struggling to penetrate the vegetable market. The few local vegetables do not complete a consumer’s demand. These vegetables collected from various geogs and remote places are going to waste if consumers do not come to rescue. This will repudiate the farmers’ expectation to have an income to get out of destitution.

“But we are working with our stakeholders to address this issue. They must do more to make this initiative a success.

“I suggest turning this whole initiative into a public private partnership (PPP) mode which will guarantee to address all loopholes in the supply chain.

“Then come summer, we will have variety of local vegetables,” said the CEO.

But for now, he has one appeal.

“When you eat, they earn.” Especially the farmers.