Farmer, fisheries and the SME sector should try to eliminate the middleman and endeavour to be direct sellers in the post Covid-19 era, former Governor Central Bank and Senior Advisor on Economic Affairs to the Prime Minister, Ajith Nivard Cabraal said.
Featured in a TV talk show last morning he said that due to the middleman capitalising on the weakness of the ‘limited marketing skills’ of farmers, fishermen and SME sector, they make an undue profit from the arm chair. “The middleman is also by taking a minimum risk.”
Cabraal said that during the covid-19 lock down a new trend was seen where the buyer went direct to the door step of farmer, fisheries and the SME sector to purchase items and also paying them upfront. “This is a healthy trend that should be maintained in the future too.”
He said that this system while eliminating the middleman also allowed this ‘cluster’ to get a better price and the ‘end customer’ too got a better bargain. He said that in most of the developed countries, farmer, fishing and the SME sector have forward buying agreements with super markets and suppliers and this trend should now be adopted in a more aggressive manner in Sri Lanka. In other countries this cluster is also insured and this trend too should be practised in Sri Lanka. “The government will certainly help in these areas.”
He also said that the ‘risk’ SME entrepreneurs take should also be appreciated as there are millions of people who are depended on them. “Unfortunately, it’s only the politicians that get the VIP treatment at airports, not these ‘risk taking’ and ‘job creating’ entrepreneurs.” He also said that the public too has a responsibility to help the rural sector farmer and fishing community to reach the next level. “When the people purchase vegetables or fish from the wayside, they barging and degrade the products. But these people are willing to purchase the same product at the same price at the super market without bargaining. This is a very sad trend.”
Commenting on the economic future, he said that the government will have to carefully manage the economy in the next two years and priority would be to given to differ ‘loan payments.”
He said that the banks too will have to make some sacrifices and be more lenient towards ‘loan repayments’. “Banks must remember that if they try to be tough on ‘colleting of loans’ immediately, around 250,000 enterprises will go out of business. Out of them around 70% of them would be the banks customers and they will lost these customer base on the long run.”
He quipped Sri Lankan workers enjoyed a two month full paid holiday and now they should get back to work and contribute harder towards their institution.
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