Pakistan’s fruit and vegetable marketing system has long been under scrutiny for its inefficiency and exploitation. Currently regulated by provincial governments, this marketing framework primarily benefits intermediaries while leaving both farmers and consumers at a disadvantage. Reforming Pakistan’s fruit and vegetable marketing system is essential if the country hopes to ensure fair returns for growers and affordable prices for buyers.
The Price Gap: Farmers Lose, Consumers Overpay
One of the most glaring issues in Pakistan’s agricultural marketing is the vast difference between farm gate prices and retail prices. In late May 2025, tomato farmers were paid as little as Rs10 per kilogram for their produce at wholesale markets. Yet, consumers ended up paying between Rs40 and Rs50 per kilogram. Similarly, onion growers received Rs12 per kilogram, while the end price for consumers was nearly four times that amount.
This wide margin benefits intermediaries — auction agents, wholesalers (pharia), and retailers — who operate in multiple opaque layers within the supply chain. These middlemen often add no real value, yet extract the majority of profits. Reforming Pakistan’s fruit and vegetable marketing system is vital to close this unjust gap.
Commission Cuts and Middlemen Domination
Even farmers who are not indebted to arthees (commission agents) are forced to pay between 5–8% commission on their sales. While that might appear nominal, it often translates to 20–30% of a farmer’s actual profit. This deduction further erodes the already thin margins farmers operate within.
Moreover, small-scale retailers at the end of the chain also struggle. Due to limited turnover, lack of cold storage, and high spoilage risk, they inflate prices to cover daily losses. These systemic inefficiencies result in a double burden — farmers are underpaid, and consumers are overcharged.
Government Interventions: Misaligned and Ineffective
Provincial governments have attempted to reform Pakistan’s fruit and vegetable marketing system through schemes like Sunday Bazaars, Model Bazaars, and Farmers’ Markets. However, these interventions often miss the mark. Small farmers, particularly during peak harvest periods, find it impractical to set up stalls in these markets due to time constraints and logistical challenges.
As a result, these supposedly farmer-friendly initiatives are often hijacked by middlemen posing as producers, defeating their core purpose. Moreover, government efforts have focused largely on superficial infrastructure improvements rather than structural reforms.
Price Controls and Weak Enforcement
Daily price lists for fruits and vegetables are published to control inflation, but weak enforcement at the retail level renders them ineffective. While they may offer temporary consumer relief, they do nothing to enhance the earnings or bargaining power of farmers. Reforming Pakistan’s fruit and vegetable marketing system must go beyond price controls to address its deeper inefficiencies.
Digital Platforms: A Missed Opportunity
With the rise of digital technologies, there was initial optimism that online platforms would eliminate intermediaries. Unfortunately, many of these platforms source their produce from the same wholesalers and offer delivery at standard retail prices. Due to high logistics costs and limited scalability, they fail to deliver any significant savings to consumers or better profits to farmers.
These initiatives suffer from flawed designs that fail to understand the ground realities of both producers and consumers. Reforming Pakistan’s fruit and vegetable marketing system through technology must involve user-centric models that directly connect farmers to end buyers.
A Cooperative Future: Learning from India’s Success
A more promising solution lies in professionally managed farmers’ cooperatives. These cooperatives could establish direct-to-consumer retail outlets, bypassing intermediaries entirely. With contract farming arrangements and shared logistical support, cooperatives can ensure fair prices for both parties.
Unfortunately, the cooperative movement in Pakistan has struggled. Unlike India, where companies like Amul and the Indian Farmers Fertiliser Cooperative Limited have transformed agriculture, Pakistan’s cooperatives have failed due to politicization and lack of trust. Reforming Pakistan’s fruit and vegetable marketing system must include depoliticized, professionally run cooperatives that are accountable and efficient.
The Role of Society and Governance
The failure of cooperatives in Pakistan is not accidental — societal divisions along ethnic, sectarian, and political lines have weakened collective efforts. However, there is still potential for change. Trained professionals and transparent systems can help rebuild trust and efficiency in cooperative models.
Ultimately, reforming Pakistan’s fruit and vegetable marketing system requires a holistic strategy. It must include regulatory reform, better digital infrastructure, targeted subsidies, and the empowerment of small farmers through collective action.
