Startup Mantra: From the farm to your plate

The journey of your fruits and vegetables from the farms to your home is really, really long and tedious, which is why probably 30-35% of the produce rots as it fails to reach the market.

In India, 86% of the farmers are small or marginal, meaning their land is about two hectares or less. And that is the cause of another problem that makes the journey difficult.

This is where startup Mulyam comes into play. Founded by Yogesh Kedari, an MBA in Agriculture Business Management and 19 years of experience heading different companies in this space and Mahesh Kedari, an electronics and telecom engineer, in 2023, Mulyam emerges as a downstream-centric powerhouse in the fruits and vegetables sector, dedicated to eradicating traditional supply chain hurdles by seamlessly connecting farmers and buyers through innovative solutions.

Mulyam bridges the market accessibility gap for farmers and Farmer Producer Organisations (FPOs), opening doors to a spectrum of markets that were previously beyond reach. The platform acts as a catalyst, facilitating robust market linkages that ensure better price realisation for the hard-earned produce of the agricultural community.

Traditional process

A small farmer, for example, grows depending on the season, say green chillies on his farm. Obviously, a small one or two-acre farm cannot produce large quantities. So perhaps he has 25 to 30 kgs of produce. How will he get these chillies to the market?

Typically, the farmer follows what has been done for generations. He will ask the village aggregator to pick up those chillies and sell them for him. The village aggregator is a trader who will collect all the produce from the village in small quantities to make it into what is known as a ‘marketable’ quantity. Remember we have 140 crore mouths to feed. So, markets accept large quantities of a particular vegetable or fruit around 25 tonnes or more.

The aggregator will sell the produce at the rate that is then set by the demand and supply. The wholesaler will make the payment the next day. Simple? Not really because before it is taken to the wholesale market the aggregator has to separate the vegetables and fruit as per grade, size and quality. Markets are demanding. And payment obviously is made according to quality.

The aggregator will pay the proceeds to the farmer after he has deducted his commission (generally 3-5%) as well as the government cess for each transaction of 1.03%. Result? The farmer gets an amount that is rather poor, approximately 80% of the amount paid by the wholesaler. This includes his production and transportation costs. Sometimes he ends up at a loss, sadly. Of course, the vegetable will still not reach your home. The wholesaler will then send it further to different retail markets and quick commerce (read apps that deliver it to your home) markets.

Finding solution

Yogesh says, “There are many people and companies that focus their energies on increasing yield via different practices, but to us, the bigger problem for the farmer was access to markets. Even the aggregator who sells for the farmer accesses the wholesalers near the place of production. So, if an onion farmer from Nashik district wants to sell his onions, his aggregator will sell them to the wholesale markets near Nashik. He too will not be able to access or have the means to access markets far off Delhi or West Bengal.

“What this does is shrink the possibility of earning more for the same produce. The problems for the farmer are many. He does not have access to all the markets. Then he does not know what the current prices are prevailing in the market, he has to depend on his middleman. Lack of access to distant and other markets, no data available on prices and quality required by buyers are his big problems,” he said.

Consistent quality

It does not end with just this. The buyer too has certain needs that have to be fulfilled. “The buyer needs consistent quality and reliable sources for the produce. Which often is not available. Then multiple intermediaries mean multiple handling which causes degradation of the produce and increase in cost.”

“If this multi-pronged problem had to be tackled, we felt that we would need a system that would allow farmers to know what the demand for a particular quality of the product is, in which market and what the price is for it. This can be posted by the buyers. If the farmers from say, Nashik could know this, then they could place the price they are willing to sell it at. If it does not match the buyer’s needs, then another farmer could give his quote.

Focus on infrastructure

Yogesh continues to explain, “The government has been focussing on creating FPOs where they provide a group of farmers with subsidised cost for building infrastructure, and they can collectively sell their goods. This FPO would need to separate the onions based on size and also pack them. The requirement for 25 to 30 mm onions is higher in the Eastern states of India. The Western states prefer 30 – 40mm while the North and Southern states prefer consuming larger-sized onions – 45 to 55 mm. If the product is separated and packed it helps the buyer and fetches a better price. Direct access to markets can also help in cutting down multiple layers and handling of the produce thereby reducing damage.”

Investment and Revenue

To do this Yogesh and Mahesh quit their jobs, used up their savings as well as those from family and friends and invested ₹45 lakh in December 2022. “By April 2023 we had a smaller version of our platform ready where the farmer would know what the prices in the market are. But the bidding as of now is not possible. We plan to do this once we have raised some funds”

Though they registered their company in December 2023, they started operations in April 2024. With this minimal tech support, they managed to sell 300 metric tonnes of apples and 250 metric tonnes of citrus fruits. They sold 4,000 metric tonnes of potatoes and 1,500 metric tonnes of onions. Says Yogesh, “We started with these vegetables as they are in demand all year round. We also plan on ginger and garlic but the prices are not steady currently, but we will add this soon.”

Their revenue for this period has been ₹92 crore. For an investment of ₹45 lakh, revenue of ₹92 crore in 18 months is what many startups would dream of. “We make a profit of 1.1% so we have broken even. The demand from within the country is huge and there is a good amount harvested from our farmers, small and large. But it’s the supply chain that needs to be efficient” But there is no resting on these earnings.

Plan ahead

The duo has set their sights really high. “We should reach ₹100 crore by October this year and aim to hit ₹4,000 crore by 2030. “But to get there we will need further funds. We are looking to raise USD 10 million which we will use to build our platform completely and invest in building 40 collection centres. Currently, they have six, three in Maharashtra and 3 in Karnataka.

Big start, bigger goals but the bottom line is better returns for the man who deserves it, the farmer. Says Yogesh, “Once we are fully operational, we will increase the farmers earnings by 15 to 20% more than what they are currently getting.”