The Impact of Direct Procurement on Farmers and Buyers

Published on August 29, 2025

The vegetable supply chain's multiple layers of intermediaries create a lose-lose situation: farmers get poor returns, and buyers face high prices. Vegras' direct procurement model addresses this by linking farmers straight to institutional buyers, creating value for all stakeholders.

Benefits for Farmers

Farmers often sell at mandis where prices are dictated by middlemen, leading to exploitation. With Vegras, farmers receive fair, market-linked prices without deductions. We also provide advance payments and training on best practices, improving yields and income stability. For instance, our partnered farmers have reported up to 30% higher earnings compared to traditional channels.

Advantages for Buyers

Institutional buyers benefit from lower costs—up to 25% savings—due to the elimination of intermediary margins. Our quality checks ensure consistent, fresh produce, reducing waste in kitchens. Predictable supplies mean no last-minute shortages, which is crucial for operations in colleges and hotels.

Broader Economic and Environmental Impact

Direct procurement reduces transportation hops, lowering emissions and preserving freshness. It also minimizes food waste, as produce moves faster from farm to table. Economically, it boosts rural incomes and urban affordability, contributing to a more balanced food ecosystem.

At Vegras, direct procurement isn't just a strategy—it's our commitment to fairness and sustainability. By bridging the gap between farmers and buyers, we're creating a ripple effect of positive change across the supply chain.