Prospects of Agri Value Chain for Wheat in Haryana: Its Economics, Market Surplus and Linkage with Processors

The paper is based on a survey done in Haryana to study the agri value chain of wheat which has surplus production is the state. The analysis brings out that wheat gives higher net income than other competing crops of the season which justifies the farmers’ allocation of 90 per cent of their rabi area under this crop. The survey also revealed that farmers are growing wheat and selling it as usual in APMC markets since the 1970s. Most of the flour mills are owned by business families who have no linkage with farmers due to APMC Act and even otherwise to avoid politically pliable farmers. The state APMC Act is the biggest barrier in linkage as it does allow any purchase outside APMC market. Despite that 77 per cent millers were willing to purchase directly from the farmers because it will reduce their purchase price by 5 per cent in terms of arhatia fee, loading, unloading and transport expenses and losses. In turn, the processors may help in arranging good seeds and chemicals for the farmers to get quality wheat. But many farmers were apprehending price discrimination by millers after APMC becomes defunct in the long run while some big millers were also afraid to deal with politically pliable farmers.