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Agro mall culture catching up in India

By Kaushik Sridharan (http://www.99acres.com/articles/author/kaushik) Share on
December 9, 2015 1740

Agro mall culture, a concept adopted from the international market is reeling under pressures of high rental costs and lack of transportation
facilities in India. However, in some cities it is providing a platform to farmers to market their products in a clean and competent environment.

The agro mall concept was introduced in 2008 by the government with an aim to provide a platform to farmers to sell their products to consumers
without the intervention of middlemen. Farmers growing vegetable and horticulture products were provided with options to either rent or purchase
a shop in the mall, where they can showcase their manufactured goods and sell it at a better price.

The concept was rst introduced in international markets such as Singapore and Malaysia, where it was a crowd puller. From food, non-food to local
small and medium enterprises (SME) products, shoppers are provided with varied choices. This helps in boosting the income of local agricultural
entrepreneurs.

According to recent news (http://www.99acres.com/articles/real-estate-news), the agro malls constructed in Haryana have been converted into
shopping malls as the concept was not practical or viable. These agro malls are situated in Panchkula, Rohtak, Panipat and Karnal. Agro mall was
visualised to be a one-stop-shop medium to purchase all kinds of fruits and vegetables. It was intended to target consumers who avoid using local
vegetable markets due to hygiene factor.

In India, the agro malls were launched in below mentioned three cities in 2014:

Haryana

With an aim to generate more revenues, Haryana State Agricultural Marketing Board launched agro malls at four localities - Panchkula, Karnal,
Panipat and Rohtak area in 2013-14.

VP Sharma, Dejin Hillview Estates, Panchkula says, Despite state-of-the-art facilities at the agro mall, farmers have not shown interest in it as the
rental costs are as high as Rs 20,000-30,000 per month which can only be aorded by auent farmers. In case of sale, a 350 sq ft area costs around
Rs 40-50 lakh. This has led to a majority of the commercial space lying vacant. Hence, the government has converted agro malls into shopping malls
and utilize the revenue generated for the welfare of farmers.

Gujarat
Gujarat's rst agro mall was set up by the Agriculture Produce Market Committee (APMC) when Prime Minister, Narendra Modi, then Chief Minister
(CM) of Gujarat inaugurated the facility in Surat in 2013 with an aim to provide fresh and cheaper vegetables, fruits and owers straight from the
elds of south Gujarat to the consumers. The start-of-art mall is equipped with facilities like testing and certication laboratory, central electronic
auction system, online spot commodity trading platform, ripening chamber and cold storage, agriculture training centre for farmers, banking
facilities and mechanized material handling system.

Jignesh Patel, Surat-based realtor, says, APMC has planned to develop facilities like a ve-star hotel for foreign visitors, rest rooms for farmers,
commercial oce space for dealers, collection centre for farmers in the villages and towns in south Gujarat, facilities like packaging, weighing,
banking facility, information kiosks, agri-clinic and extension services and total banking support in the second phase.

Pune

In Pune, agro mall made its debut in 2013 in Chinchwad which is being operated by Transcool and coordinates with project implementation unit of
Department of Agriculture, ATMA to source fresh fruits and vegetables from Satara. Also, they have come up with the concept of using refrigerated
vehicle for transport of products from the farm gate till storage to ensure there is less wastage.

Other cities

Recently, the governments of Chhattisgarh and Kerala allocated funds to set up agro malls in Raipur and Thiruvangoor respectively.

In order to sustain and make the project a success to be implemented in other cities, the government should rst work out on providing subsidies,
proper transportation on how farmers will bring their produce up to the mall and market them.

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