The expectation of farmers while carrying on agricultural activities is to be able to get a reasonable return on the time and money invested by him. But the structure of agricultural markets as they exist today involves a number of intermediaries and therefore, the producers share in the consumer rupee is small. Usually the farmer (main producer) exits from the scene after transacting in the primary market and cannot be able to derive the advantage from the price increase after the processing and packaging its produce. It is observed that only when the commodity is aggregated, processed and branded the value addition occurs.
So a large number of Kerala farmers, growing cardamom, black pepper, nutmeg, etc have incorporated a company called 'Western Ghats Agro Growers Company Ltd.' (WGAGL) in collaboration with National Spot Exchange Ltd. WGAGL aimed at the development of marketing structure to ensure remunerative prices to the producers and to narrow down the price spread between the producers and consumer. It is also aims at reducing the non-functional margins of the middlemen operation in the market.
The company aimed in organizing farmers of Kerala through various formats of farmers’ institutions and to make them part of a large organization, which can function as an aggregator for all of them. WGAGL is one of such initiative with the mission to organize the high range farmers of Kerala in the form of a corporatized entity.