HOPCOMS has not done any employee recruitment since the 1990s. The current working salesmen capacity has decreased to 50 per cent, and no retired worker has received gratuity after 2018.
In the sun-drenched fields of Ambuga taluk, Yoganna, a 66-year-old retired salesman, grapples with financial strains. His Rs. 2700 monthly pension proved insufficient. In 2019, after his retirement as a HOPCOMS salesman, he moved from Bangalore to his native Hassan. With his daughter settled in Mangalore, Yoganna, navigated the challenges alone. Working as a laborer in the paddy fields became a seasonal ritual, an effort to augment income and sustain his household.
The Horticultural Producers’ Co-operative Marketing and Processing Society Ltd. (HOPCOMS) is grappling with a staff shortage, having not hired new employees in the past 30 years. The HOPCOMS officials said that over 50 percent of its older workforce has retired. Due to financial constraints, they have been unable to recruit new staff or provide gratuity to retirees. Additionally, many workers have raised concerns about delayed pension payments.
Three months back, a group of retired salesmen filed a case in the High Court against HOPCOMS for non-payment of gratuity. Thamanna Gowda, a retired salesman from Kolar, said, “After working for 32 years at HOPCOMS, I retired in 2020, and I have been waiting for my gratuity ever since. It’s not just me; many others who retired four to five years ago are in the same situation. With a meager pension of Rs. 2700, sustaining our households is difficult. We visited the High Court in December to file a case against HOPCOMS. Only last month, I received Rs. 25,000, while my gratuity amounts to Rs. 4 to 5 lakhs.”
Officials report more than 50 percent reduction in the number of salesmen over the past five years. Jayaprakash, General Manager at HOPCOMS, stated, “Major recruitment was done in the 1990s, and since then, HOPCOMS has not hired any more employees. About five to six years ago, our workforce was more than 1000, but it has now come down to 456.”
He added, “Due to financial constraints, we haven’t been able to hire more employees. Many salesmen retired during the year 2018-19, and some left the job during the COVID period. That has also contributed to the workforce reduction. Today, even farmers are not fully dependent on HOPCOMS, as private buyers have set up shop in villages.”
Farmers deliver their produce to the society, where fruits and vegetables are graded and weighed. The society has procurement centers in Sarjapura, Channapatna, Kanakpura, and Hoskote. These items are then supplied to consumers through 209 HOPCOMS retail outlets, offering fresh fruits, vegetables, and juices at Rs. 10 per bottle.
Jayaprakash also said that many cases have been filed in the High Court by retired employees against HOPCOMS for non-payment of gratuity. “We have made an appeal to the government for additional gratuity funds. Before 2018, we disbursed Rs. 8 crores in gratuity. Since then, fund shortages have hindered timely payments and pension processing. Additionally, 80 to 90 percent of our income is allocated to worker salaries.”
To raise additional funds, HOPCOMS has submitted three proposals to the Karnataka Government. The HOPCOMS authority said that the first, submitted in 2023, focused on the Rural Infrastructure Development Fund (RIDF) and business expansion. The second proposal centered on credit generation, and the third, submitted three months ago, sought gratuity funds for retired employees.
So far, they haven’t received approval for any of these proposals from the government.
HOPCOMS is an initiative to establish an effective channel for fruit and vegetable marketing. It aims to benefit both farmers and consumers. Before HOPCOMS, Karnataka lacked a reliable system to protect the farmers from middlemen. It comes under the aegis of the State Department of Horticulture.
HOPCOMS faces customer shift
HOPCOMS officials said that they are facing huge losses due to customer preference for alternatives such as online grocery stores and supermarkets. In Bangalore, there are 209 HOPCOMS outlets, including 180 regular stores, 10 mobile stores, and 19 franchisee stores. More than 80 stalls are facing losses, and about 30 stalls have temporarily closed.
Many customers prefer private organizations compared to HOPCOMS. Ahmed, from Banashankari, said, “The salesmen at the HOPCOMS outlets in my vicinity are probably the worst people I’ve ever bought vegetables from. They are arrogant, they won’t answer any of your questions, they manhandle the vegetables you carefully picked out, and won’t give you a breakup of the final bill amount.”
He added, “I prefer private stores. They are roomy and well-maintained, offering high-quality fresh produce with a wide variety, transparently displayed prices, and accurate billing.”
The officials said that a drop in the workforce has resulted in shops shutting down or experiencing financial losses. Jayaprakash said, “The decrease in business is due to various reasons. Many outlets are closed due to issues like staff crunch, fund shortages,and unavailability of land for constructing new outlets (most outlets are on land leased by the BBMP) and competition from pushcart vendors who sell for lesser prices at doorsteps.”
Post-pandemic, the number of push-cart and street vendors has increased, emerging as HOPCOMS’ main competitors. Jayaprakash said, “Although we started online delivery services through retail apps like Bitsila and Paytm ONDC, they have been non-functional for the past three months due to the technical glitches and logistics issues. Previously, we used to receive over 50 orders per week, but now we operate on a call basis only.”
He added, “The number of push cart and street vendors have increased post-COVID, and this has led to losses as more people have started to rely on them. They’re our main competitors. We have closed many old branches as we were unable to stand up to the competition in those areas.”
Many customers said that HOPCOMS were suitable in a bygone era when supermarkets were not readily available. Rishabh, another customer, said, “I buy vegetables online, and they are really good quality most of the time. We also buy from the Sunday market in Yeshwantpura, where villagers sell their produce.”
He added, “HOPCOMS is a relic of the past when we did not have easy access to supermarkets and vegetable and fruit shops everywhere. They tend to be expensive and manned by people who act as if they’re doing you a favor by selling to you.”
However, Jayaprakash said, “Outlets at Jayanagar, J. P. Nagar, Indira Nagar, and K.R. Puram are among the top performers. On our most successful business days, we make approximately Rs. 50,000, but on other days, our earnings can be as low as Rs. 1000.How can we earn Rs. 50,000 if the produce isn’t fresh?”
He added, “Customer-salesman rapport is one of the important factors that influences sales. If salesmen are rude, we cannot maintain the customer base, or get new customers.”
Horticulture Department officials said that although not formally part of the department, they have appointed two members to the HOPCOMS board. Ravi Chandra, Admin Officer of the Horticulture department, said, “Hopcoms members need more government support, so government institutions and Public Sector Undertakings (PSUs) should procure only from Hopcoms. It is also in need for necessary infrastructure requirements like cold storages and more transport.”
Previous plans were not carried out
A few years back, HOPCOMS outlined plans to revamp infrastructure, establish cold storage, increase transportation, and open new stalls in the newer parts of the city. Jayaprakash said, “We are not planning to establish cold storage due to funding constraints. Instead, we are planning to expand our online delivery service and open new stores in areas like Electronic City and ORR in Bangalore. However, the lack of funds and staff shortage has prevented us from finalizing the exact number of new stalls, though the intention is to set up more.”
Experts say that integrating Supply Chain Management and increased government support are key solutions for HOPCOMS to overcome losses. Dr. T.C. Narayanaswamy, professor at the University of Agricultural Sciences, Bangalore, said, “Government institutions and Public Sector Units (PSUs) should only source from HOPCOMS. The government should also help the society with additional infrastructure requirements.”
He added, “Recently, Supply Chain Management (SCM) has become important globally. SCM involves managing the movement of goods, services, and information across organizations, ensuring a smooth flow from source to customer. To meet consumer needs, an effective supply chain should be implemented and focus on timeliness and quality.”
