TIRUPATI: Tomato growers of Chittoor district are facing losses due to the banned “Jackpot system” adopted by greedy middlemen.
Jackpot has been prevalent in erstwhile Chittoor district since past three decades. Under the system, tomato producers bring 10 boxes of product weighing 30 kg each. Middlemen pay them for nine boxes and take away the tenth box for free. However, this is in addition to extra commission, ranging from 4–10 percent charged by middlemen. The system is prevalent in Madanapalle, Punganur and Gurramkonda mandals, putting the farmers to a disadvantage.
Combined Chittoor district is popular for cultivation of tomatoes. However, as farmers cannot retail their produce, they often sell their harvest in wholesale markets at prices controlled by middlemen. Taking advantage of the fact that tomatoes are highly perishable and cannot last long without preservation and refrigeration, middlemen form a syndicate and buy the product from vulnerable farmers at a lesser price. They then sell the tomatoes to retailers at a higher price, making a profit.
Why can’t farmers sell their produce directly? Farmer P. Nayak, who used to sell his produce in Gurramkonda tomato market, said: “We cannot sit with the produce the whole day, while traders do. We have other work as well. I am a television mechanic. I have to be present at my shop in the nearby town and repair TVs after my farm work”.
According to trade sources, middlemen or commission agents make 40–60 profit on tomatoes purchased from farmers.
Another farmer from Punganur region said: “Government had in the past banned jackpot system at tomato markets in the district. It wanted to introduce a farmer-friendly marketing system with affordable commission rates. But the jackpot system has recently made a comeback, making us victims of cunning brokers.”
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