Market led extention


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Market led extention

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  2. 2. SEMINAR ON MARKET LED EXTENTION Presented By: Mahesh Kumar Kansotiya (MABM) Dept. of Agricultural Economics Inst. of Agricultural Sciences B.H.U. 2 Advisor Prof. H P Singh Head of the department Dept. of Agricultural Economics Inst. of Agricultural Sciences B.H.U.
  3. 3. INTRODUCTION • During last 50 years emphasis was given on PRODUCTION-LED EXTENSION (PLE) • India become self reliant on food production. • But the farmers at individual level are not realizing remunerative prices for their produce. • They prone to sell their produce “AS IS WHERE” basis. 3
  4. 4. Why Need Conversion of P-L-E into M-L-E • 90% of effort is Production oriented. • Only 10% on Marketing/Post harvest phases. • Farmer share in consumer price is low about 25-30% 4 source : Ministry of Agriculture, Government of India, 2001 ( Draft )
  5. 5. M-L-E intervention that can enhance farm income by 20-30%. Commercialization of agriculture. Minimization of production cost. Introduction of export oriented product. Modernization of agricultural markets with new Agricultural policy. 5
  6. 6. • Farmers need to transform themselves from more producers-sellers in the domestic market to producers cum sellers in a wider market. To achieve this, The questions confronting the farmers are What to produce ? When to produce ? How much to produce? When and where to sell ? At what price to sell? In what form to sell 6
  7. 7. Market-led extension  Started in Kerala in the year 1993  As an experiment by combining SHGs and market oriented production.  The GOI in collaboration with MANAGE Hyderabad as successfully pilot tested MLE with ATMA in 7 states and 28 districts Some of the developments are  FIGS  Collective marketing  AGMARKNET  Rythu Bazaars (Rythara Santhe) 7
  8. 8. Information exchange between extension and farmers in India Farmers Other farmers NGOs Input dealers Output Buyers Rural retailers Mobile application ,Media E-choupal SHG KVKs Extension workers Agri-clinics ATMA DoA ICAR,SAU FFS 8 Source: adepted from glendning et al.(2010)
  9. 9. Paradigm Shift from Production-led Extension to Market Led Extension Aspects Production-led extension Market-led extension objective Transfer of production technologies Enabling farmers to get optimum returns out of the enterprise Expected end results Delivery of messages Adoption of package of practices by most of the farmers High returns Farmers seen as Progressive farmer High producer Farmer as an entrepreneur “Agripreneur” Focus Production / yield” Seed to seed” Whole process as an enterprise / High Returns ”Rupee to Rupee” Technology Fixed package recommended for an agro-climatic zone covering very huge area irrespective of different Diverse baskets of package of practices suitable to local situations/ farming systems 9
  10. 10. Dimensions of market-led extension • Marketing mix • Marketing plan • Market oriented production • Use of Technology 10
  11. 11. OBJECTIVES OF MARKET LED EXTENSION • Conversion of Agriculture sector into profit oriented business. • Strengthening market linkages to farmers – IT application in Agricultural marketing. • Wider use of electronic mass media for Agricultural Extension. 11
  12. 12. Need of IT application in Extension • Over 50% of farmers do not have access to extension information. • 44% have some access. 22% has access through media (Radio 13% and TV 9%). • Only 40% of the Indian farmers are reached by extension service providers. Source: National Sample Survey Organization (NSSO) , 2005/7 12
  13. 13. Function of M-L-E for converting Agriculture sector into profit oriented Business • Market intelligence • Financing • Facilitating Functions Grading Standardization Processing Storage of farm produce 13
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  16. 16. Market-led Extension, an Experience with Rubber board in India • The companies were importing rubber from other countries due to high quality and low price. • Local producers were in trouble. • Factories was operating at low capacity utilization Capacity was 40 tonnes/day Were operating at 10 tonnes/day KRISHNA KUMAR, A.K., 2004, Market-Led Extension-An experience with Rubber Board, Paper Presented in work shop on Market-Led extension, MANAGE, Hyderabad, 1-21 December.2004 16
  17. 17. To tackle this situation… • Established Rubber Producer Societies. (RPS) • Linking gross root level organization like SHGs to processing factories. • Trained the producers on producing high quality rubber. • Created infrastructure facility. 17
  18. 18. Result • Productivity increased Up to 40% • 70% of rubber is processing now. • 20-30% increase in farmer income. • Farmers realizing 90% of terminal market price . 18
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