Work out market price realisation instantly with clear inputs, formula shown and shareable results.
The price on the auction board is not what the farmer banks. Commission, market fee, cess, weighing, loading and cleaning charges come off as a percentage, and freight to the market comes off per tonne. Net realisation per tonne is what should be compared against the cost of production.
Net realisation
Net = gross price x quantity - deductions % - transport per tonne x quantity; net per tonne = net / quantity
Two markets quoting the same price can pay very differently once commission and freight differ. Only the net figure tells you where to sell.
Most agricultural market acts cap commission and market fee, commonly at 1-2.5% each. Ask for an itemised sale slip and challenge charges outside the notified schedule.