Why forming a collection center approach fails in village for vegetables

Last weekend, I spent considerable amount of time to understand what challenges farmers faces when they enter into collection center approach and working with big players.

There were couple of points that came up during the discussions I had with various growers.

1. Grading mechanism practice: It has been told by villagers that initially when a agreement is done with group of growers saying they need Tomato 100 crates daily. Next day they sent the Tata 407 to pick the crates from the growers. The truck reaches the collection center where quality check will be performed based on the agreed grading. Now during the inspection 10 crates were not meeting the quality standard (more than 10% items were rotten and intentionally put inside the tomato crate). Now the penality of these crates will be born by the group of farmers. The process of penalizing the group when there is a mistake or wrong deed of individial has caused mistrust among the progressive farmers. Hence they broke off and the grower group is dismantle.
2. They buy Rs 5/kg and sell Rs20/kg: Its a general belief that buyer is earning a lot more (atleast 3 to 4 times) compared to what they pay to growers. Growers are well aware of transportation cost which can cost from ruppes .5 to 1.5 per kg. Grower always compare the rate that he gets from collection center format verses mandi format. e.g. If local/regional mandi is offering Rs. 6/kg then he will go to mandi rather than selling this to collection center.

These two points itself is an eye opener for new start up to consider before they get into another collection center format otherwise they will also be able to create but not able to sustain.

What you think should be done differently to succeed in village.