COIMBATORE: Tapioca farmers have blamed the syndicate of sago and starch mill owners for artificially suppressing procurement prices, depriving cultivators of better returns despite a decline in arrivals and higher production costs.
Farmers claim that large mill owners have formed an informal cartel to dictate procurement rates, leaving growers with little bargaining power.
"There are around 400 sago and starch mills in the region. While smaller units process about 250 tonnes a day, larger mills have capacities of up to 1,000 tonnes. These bigger players effectively determine the purchase price of tapioca, which smaller mills are forced to follow," said R Gopalakrishnan, president of the Tapioca and Maize Farmers Welfare Association.
Farmers further alleged that some large mills procure tapioca in bulk at lower prices and subsequently sell it to smaller units, strengthening their influence over the market.
Tamil Nadu remains the leading tapioca-producing state in the country, and farmers attribute the expansion of cultivation in recent years to government support for drip irrigation systems. Nearly six lakh acres are currently under tapioca cultivation across the state
With the harvesting season in the plains having ended, arrivals are currently limited to the hill regions, such as the Kolli Hills, Karumandurai, and Pachamalai. Production from these areas accounts for only around 10 per cent of the volume typically harvested in the plains of Salem district.
Despite the seasonal decline in arrivals, farmers say prices have not increased proportionately. Growers point out that cultivation in hill areas involves significantly higher costs owing to lower yields, difficult terrain and increased labour and transportation expenses.
"While farmers in the plains can harvest around 25 tonnes per acre, yields in the hills are often limited to five or six tonnes. The cost of transporting produce from remote hill villages is also much higher," Gopalakrishnan said.
Tamil Nadu remains the leading tapioca-producing State in the country. Farmers attribute the expansion of cultivation in recent years to government support for drip irrigation systems, which has encouraged growers to take up the crop in larger areas. Nearly six lakh acres are currently under tapioca cultivation across Tamil Nadu.
With a majority of the State's approximately 400 sago and starch mills concentrated in Salem and Namakkal districts, farmers have sought measures to improve their bargaining power and reduce dependence on private buyers.
Among their key demands is the inclusion of farmers as members of SAGOSERVE, the cooperative federation of sago manufacturers. They argue that membership would enable cultivators to participate in storage and marketing activities, benefiting from price fluctuations in starch and sago products.
Farmers have also urged the State government to establish cooperative tapioca-processing mills on the lines of cooperative sugar mills. Such a model, they contend, would ensure transparent procurement, provide assured markets and protect growers from price manipulation.
Another major demand is the introduction of an auction-based procurement system for tapioca. Farmers believe open auctions would promote competition among buyers, ensure fair price discovery and prevent the formation of syndicates in the market.
"The present system gives excessive control to a handful of large buyers. An auction mechanism would create transparency and ensure farmers receive prices that reflect actual market conditions," Gopalakrishnan said.