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For every Rs. 100 a customer pays, farmer gets on an average Rs.63 and Healthy Buddha Makes Rs. 8
The above numbers are averages and will vary from produce to produce. It is intended to educate our customers the various cost categories involved in delivering good authentic organic produce.
Price is in general is a function of demand and supply in the market. Currently in organic, this is a bit skewed since there is less demand and in turn less growers. On one hand, we also have cases where organic farmers are forced to sell their produce as non-organic since there are less takers for organic produce. On the other hand, we have good organic farmers who command a higher price because they are are very good in what they do.
Broad level guidelines we use for pricing
In the last 2.5 yrs while we have seen a cumulative inflation of 15-20%, our veggies rates in general have remained the same what it was 2.5 years back.
Few Specifics that drives our cost high
Why should the farmers be paid premium?
Organic is a bit labour intensive. For instance to remove weeds, in non organic, they just spray with a Rs. 500 sprayer and get it over with. In organic, labour is hired for Rs. 5000 to clear it manually.
At times, there is a bit of wastage if there is any insect infestation.
Organic requires constant monitoring to handle any issues that might crop up. It is not formula based like chemical farming where the farmer just goes about spraying chemicals.
Also, we find it unfair to pay dirt cheap prices to our farmers just because the market prices has come down. For instance, let us take Tomato.If the retail tomato of non organic one is Rs.9, imagine how much a farmer will get? Is it sustainable for the farmer and his family?
We believe in giving a reasonable price for our farmers. On an average, 60-65% of the price goes to the farmer.