AGRICULTURE MARKETING

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AGRICULTURE MARKETING

  1. 1. A ROLL OF AGRICULTURE MARKETING FOR DEVLOPING IN REMORT AREAS: WITH SPECIAL REFERANCE TO ORISSAAbstractAgricultural Marketing is a process to starts with a decision to produce a saleablefarm product and it involves all aspects of market structure or system, which isbased on technical and economic consideration. Agricultural marketing areassuming to improve the living standards of farm families, making India hungerfree and turning poverty into history in the shortest possible time. The aim of thispaper is to show the incomes and improve livelihood of rural poor. The farmerproduces different type of product but they are having no storage facilities for hugequantity of product. So this paper reveals to improve the storage facilities forwhich a small farmer can easily store at huge quantity of product. Agriculturemarketing is require a high infrastructure for which a small farmer can easily reachin the market and sells his product directly to the consumer, because a farmercannot sell his product directly to the consumer for which he sells his product at aminimum rate of return, that’s why the standard of living of a small farmer is verylow. Middleman or intermediateries are also another cause of low income of afarmer because they are purchasing products at a minimum rate from the farmerand sold in the market at a higher rate for which a primary producer like as afarmer cannot get his best possible rate of returns which he deserves. This paperalso reveals to make available all products of farm origin to consumers atreasonable price without impairing on the quality of the produce.STATEMENT OF PROBLEMIn modern marketing the agricultural product has to transfers or exchanges fromone hand to another before it finally reaches the consumer. It is achieved throughthree marketing functions such as assembling, preparation for consumption anddistribution. It is concerned with the assembly and transport from the field to acommon assembly field or market. The product may be taken direct to the marketor it may be stored on the farm or in the village for varying periods before itstransport. It may be sold as obtained from the field or may be cleaned, graded,processed and packed either by the farmer or village merchant before it is taken to
  2. 2. the market. Some of the processing is not done because consumers desire it, andalso it is require for the conservation of quality. At the market the product cannotbe sold by the farmer directly to the consumer .It will only happen through acommission agent or a broker. So this problem arising due to lack of infrastructurefacilities in rural areas. The rural poor people always trying to get more profit totheir cultivation but it cannot possible for them. Because they are not havingsufficient money to go and sell directly at the market it may also be purchased bytraders, wholesalers or retailers. So the transactions may be carried out by directnegotiation or through middlemen, by barter, by open or under cover auction, onthe spot from the farmer. The transactions take place at one or more levels in theprimary, secondary or terminal markets or all three. Distribution (dispersion)involves the operations of wholesaling and retailing at various points. so it is thetask of the distribution system to match the available supplies with the existingdemand. The farmer produces more product but he cannot store these productbecause lack of storage facility for his production. That is the main problem whenhe sells the product at minimum price due to lack of storage facilities. Most of thefarmer standard of living are very poor so that is the main factor for which theytrying to income more through their cultivation. Because the farmers are havingonly one income source which is selling the different product through thecultivation.INTRODUCTION In India Agriculture was practiced formerly on a subsistence basis; the villageswere self sufficient, people exchanged their goods, and services within the villageon a barter basis. With the development of means of transport and storagefacilities, agriculture has become commercial in character; the farmer grows thosecrops that fetch a better price. Marketing of agricultural product is considered as anintegral part of agriculture, since an agriculturist is encouraged to make moreinvestment and to increase production. Thus there is an increasing awareness that itis not enough to produce a crop or animal product; it must be marketed as well. The term agricultural marketing is composed of twowords such as agriculture and marketing. In the broadest sense agriculture meansactivities aimed at the use of natural resources for human welfare, and marketingindicates a series of activities involved in moving the goods from the point ofproduction to the point of consumption. The subject of agricultural marketingincludes marketing functions, agencies, channels, efficiency and cost, price spread
  3. 3. and market integration, producer’s surplus etc. The agricultural marketing systemis a link between the farm and the non-farm sectors. Agricultural marketinginvolves in its simplest form the buying and selling of agricultural product. Thisdefinition of agricultural marketing may be accepted in olden days, when thevillage economy was more or less self-sufficient, when the marketing ofagricultural product presented no difficulty, as the farmer sold his produce directlyto the consumer on a cash or barter basis. But, in modem times, marketing ofagricultural product is different from that of olden days. In modem marketing,agricultural product has to undergo a series of transfers or exchanges from onehand to another before it finally reaches the consumer. The National Commission on Agriculture definedagricultural marketing as a process which starts with a decision to produce asaleable farm commodity and it involves all aspects of market structure of system,both functional and institutional, based on technical and economic considerationsand includes pre and post- harvest operations, assembling, grading, storage,transportation and distribution. The Indian council of Agricultural Researchdefined involvement of three important functions, namely (a) assembling(concentration) (b) preparation for consumption (processing) and (c) distribution.Agricultural marketing covers the services involved in moving an agriculturalproduct from the farm to the consumer. Numerous interconnected activities areinvolved in doing this, such as planning production, growing and harvesting,grading, packing, transport, storage, agro- and food processing, distribution, andsale. Such activities cannot take place without the exchange of information and areoften heavily dependent on the availability of suitable finance. Agriculturalmarketing involves in its simplest form the buying and selling of agriculturalproduce. In olden days when the village economy was more or less self-sufficientthe marketing of agricultural product presented no difficulty as the farmer sold hisproduct to the consumer on a cash or barter basis.OBJECTIVES: 1. To rise incomes and improve livelihoods of the rural poor people 2. To improve the storage facilities to store all type of product 3. To develop the infrastructure of the rural area through the agrimark 4. To enable the primary producers to get the best possible returns
  4. 4. 5. To make available all origin products of farm to consumers at reasonable price without impairing on the quality of the produce. HYPOTHESIS OF THE STUDY 1. The primary producers can insure to get the best possible return. 2. It can be assured that all products of farm must reach origin to consumers at reasonable price without impairing on the quality of the product. 3. A primary producer must raise his income and improve his livelihood strongly. 4. Infrastructure of rural areas must be developed. 5. Storage facilities must be improved to store a huge quantity of productFacilities Needed for Agricultural MarketingAgriculture marketing has given various facilities to the farmer. Such as1. He should have proper facilities for storing his goods.2. He should have holding capacity, in the sense, that he should be able to wait fortimes when he could get better prices for his produce and not dispose of his stocksimmediately after the harvest when the prices are very low.3. He should have adequate and cheap transport facilities which could enable himto take his surplus produce to the mandi rather than dispose it of in the village itselfto the village money-lender-cum-merchant at low prices.4. He should have clear information regarding the market conditions as well asabout the ruling prices, otherwise may be cheated. There should be organized andregulated markets where the farmer will not be cheated by the -dalals- and-arhatiyas-.5. The number of intermediaries should be as small as possible, so that themiddlemans profits are reduced. This increases! the returns to the farmers.
  5. 5. Improvement of Agricultural Marketing SystemGovernment of India has adopted a number of measures to improve agriculturalmarketing, namely - establishment of regulated markets, construction ofwarehouses, provision for grading, and standardization of produce, standardizationof weight and measures, daily broadcasting of market prices of agricultural cropson All India Radio, improvement of transport facilities, etc.1. Marketing surveysIn the first place the government has undertaken marketing surveys of variousgoods and has published these surveys. These surveys have brought out the variousproblems connected with the marketing of goods and have made suggestions fortheir removal.2. Grading and standardizationThe government has done much to grade and standardize many agricultural goods.Under the Agricultural Produce (Grading and Marketing) Act the Government hasset up grading stations for commodities like ghee, flour, eggs, etc. The gradedgoods are stamped with the seal of the Agricultural Marketing Department-AGMARK The «Agmark" goods have a wider market and command better prices.A Central Quality Control Laboratory has been set up at Nagpur and eight otherregional laboratories in different parts of the country with the purpose of testing thequality and quality of agricultural products applying for the Governments"Agmark" have been created The Government is further streamlining qualitycontrol enforcement and inspection and improvement in grading.3. Organization of regulated marketsRegulated markets have been organized with a view to protect the farmers from themalpractices of sellers and brokers. The management of such markets is done by amarket committee which has nominees of the State Government, local bodies,arhatiyas, brokers and farmers. Thus all interests are represented on the committee.These committees are appointed by the Government for a specified period of time.Important functions performed by the committees can be summarized as follows.a. fixation of charges for weighing, brokerages etc., b. prevention of unauthorizeddeductions, underhand dealings, and wrong practices by the arhatiyas, c. enforcingthe use of standardized weights, d. providing up to date and reliable market
  6. 6. information to the farmers, and e. settling of disputes among the parties arising outof market operations.The system of regulated markets has been found to be very useful in removingfraudulent practices followed by brokers and commission agents and instandardizing market practices. The committee is responsible for the licensing ofbrokers and weightmen. It is nested with powers to punish anyone who is foundguilty of dishonest and fraudulent practices. 1t is the policy of the government toconvert all markets in the country into the regulated type.Regulated markets aim at the development of the marketing structure to have thefollowing.1) ensure remunerative price to the producer of agricultural commodities,2) reduce non functional margins of the traders and commission agents, and3) narrow down the price spread between the producer and the consumer.4. Provision of warehousing facilitiesTo prevent distress sale by the farmers, particularly the small and marginalfarmers, due to prevailing low prices, rural go downs have been set up. Thegovernment has done much to provide warehousing in towns and villages.TheCentral Warehousing Corporation was set up in 1957 with the purpose ofconstructing and running go downs and warehouses for the storage of agriculturalproduce. The states has set-up the State Warehousing Corporations with the samepurpose. At present the Food Corporation is constructing its own network of godowns in different parts of the country. The total storage capacity in the countrywas 27 million tons at the end of the sixth plan.5. Dissemination of market informationThe government has been giving attention to the broadcasting of marketinformation to the farmers. Since most villages have radio sets, these broadcastsare actually heard by farmers. The newspapers also publish agricultural priceseither daily or weekly accompanied by a short review of trends.6. Directorate of marketing and inspectionThe directorate was set up by the Government of India to co-ordinate theagricultural marketing of various agencies and to advise the Central and StateGovernments on the problems of agricultural marketing. Activities of thisdirectorate include the following.a. promotion of grading and standardization of agricultural and allied commodities;b. statutory regulation of markets and market practices; c. training of personnel; d.
  7. 7. market extension; e. market research, survey and planning and f. administration ofOld Storage Order, 1980 and Meat Food Products Order, 1973.7. Government purchases and fixation of support pricesIn addition to the measures mentioned above, the Government also announcesminimum support price for various agricultural commodities from time to time in abid to ensure fair returns to the farmers. These prices are fixed in accordance withthe recommendations of the Agricultural, Price Commission.If the prices startfalling below the declared level (say, as a result of glut in the market), theGovernment agencies like the Food Corporation of India intervene in the market tomake direct purchase from the farmers at the support prices. These purchases aresold off by the Government at reasonable price through the public distributionsystem.ANALYSIS OF THE STUDY:Orissa State Agricultural Marketing Board (OSAM) : The Orissa State Agricultural Marketing (OSAM) Board, as the apex body for theagricultural marketing structure in the State, which was established in the year1984 under the amended provisions of the Orissa Agricultural product MarketsAct, 1956. Under the provisions of the Orissa Agricultural Produce Market Act,1956, 61 RMCs (Regulated Market Committees) have been established in the Statefor regulation of buying and selling of agricultural produce. Out of these 61RMCs, 57 RMCs are functional while the four RMCs at Narasinghpur, Bonai,Nilagiri and Athmalik are not functioning. During the current year, 3 new RMCs –one each at Pallahara, Hindol and Patnagarh – have been notified by the State Govtand these will start functioning after constitution of the first nominated committee.The government has been playing a vital role in developing the agriculturemarketing system in the country. Department of Agriculture and Cooperation hastwo organizations namely, the Directorate of Marketing & Inspection (DMI) andthe National Institute of Agricultural Marketing (NIAM),which are dealing withmarketing under its administrative control, Agricultural Markets are regulated andmanaged under the Agricultural Produce Market Act .it was enacted by the
  8. 8. respective State Governments. The Central Government provides a importantguidance and assistance in regulation and development of agricultural producemarkets. There are two important schemes which has analyzed under this papernamely 1. KRUSHAK BAZAAR (Farmers Market) 2. Agricultural MarketingInformation Network Scheme. 1. KRUSHAK BAZAAR (Farmers Market):The government of Orissa has taken an important role to help rural poor basicallythose who are staying in remote areas .because the remote areas people are so poorwhich are not having sufficient money to do something. So cultivation is one ofthe part of source of income for which they can do something .the remote areaspeople are always cultivating the different type of products at a huge quantity. Butthey cannot sell directly to consumer in the market due to lack of transportfacilities or infrastructure facilities. Now the government of Orissa are going tolunch a scheme which is called as KRUSHAK BAZAAR (Farmers Market) and itcame into force on march, 2002.state government of Orissa had planned to set up200 krusak bazaars within a period of five year in a phase manner @40/year. Sofar, 42 krushak bazaars have been established in different part of the state. Themain aim of the krushak bazaar to maximize the price realization of agriculturalproduct of our krushak brethren and to make available nutritive and fresh productat a reasonable price for the consumers. It provides free transportation to the smalland marginal farmers for which they can easily go to the market and sell theirproduct directly to the consumer. It provides infrastructure and other services suchas • Open and closed pindis • Cold storage • Electricity • Drinking water facility • Cycle stand • Parking places
  9. 9. • Septic latrine with urinal • Cattle shed • Rest shed • Shed treeskrushak bazaar has given high infrastructure to all remote areas of Orissa .so thiskrushak bazaar is playing an important role to developing the rural areas due tohigh infrastructure and transportation facilities . Methodology: • By facilitating direct contact between the producers & the consumers. • By eliminating the middlemen commission which is shared by the farmers and the consumers. • By establishing new Krushak Bazaars (Farmer Markets) so that it is easily accessible to both the producers and the consumers. Board activities at Krushak Bazaar: • OSAMB monitor the transaction process to avoid unhealthy practices at the Bazaar places. • It provides free transportation to the small and marginal farmers. • It has undertaken certain outstanding and attractive schemes to attract the clientele at the Bazaar premises. 2. Agricultural Marketing Information Network Scheme The new Agricultural Marketing Information Network is 10th Plan Schemewhich was approved during March 2000 with an outlay of Rs. 99478 thousand toestablish a nation-wide network for speedy collection and dissemination of marketinformation. Under the scheme 735 important agricultural produce markets and 48State Agricultural Marketing Boards/Departments as well as 27 DMI offices (total
  10. 10. 810 nodes) have been provided with computer facilities and Internet connectivity.The scheme is being implemented by DMI through NIC. V-SAT and SERVERhave been installed at Faridabad. Procurement, installation, maintenance, softwaredevelopment and training to state personnel are being done by NIC. The datareceived from markets is being displayed on the website www.agmarknet.nic.in.Software packages are being developed in all regional languages for easyunderstanding of the farmers. The important commodities identified for daily monitoring of arrivals andprices under the scheme, for the present are – Cereals (Wheat, Maize, Paddy, Rice& Jowar), pulses (Bengal Gram, Red Gram, Green Gram, Black Gram), Spices(Ginger, Garlic, Chillies (Red), Fruits (Mango, Apple, Orange, Banana, PineappleGrapes), Vegetables (Onion, Potato), Fibres (Cotton, Jute), and Oilseeds(Groundnut, Mustard, Soyabean, Sunflower, Sesame). In accordance with the rationalization of the Plan Schemes in theDepartment, the Schemes of Estimation of Marketable Surplus and Post HarvestLosses of Food grains, Research Grants and Agricultural Marketing InformationNetwork have been merged together with new nomenclature ‘Marketing Researchand Information Network’. In the 10th Plan, the scheme is proposed to cover 2000more markets and utilizing the network for market –led extension.The main objectives of the scheme include creation of scientific storage capacitywith allied facilities in rural areas to meet the requirements of farmers for storingand processing of firm products, consumer articles , agricultural inputs, promotionof grading, standardization and quality control of agricultural product to improvetheir marketability; prevention of distress sale immediately after harvest byproviding the facility of pledge financing and marketing credit; to strengthenagricultural marketing infrastructure in the country by paving way for theintroduction of national system of warehousing receipts in respect of agriculturalcommodities stored in such godowns and to reverse the declining trend ofinvestment in agriculture sector by encouraging private and cooperative section toinvest in the creation of storage infrastructure in the country. The financialassistance will not be routed through State Governments. Under this scheme, 25%of the capital cost is to be provided as credit-linked, back-ended subsidy in thesame way as has been formulated for the cold storage scheme being implemented
  11. 11. by National Horticulture Board (NHB). For the north east and other hilly areas inthe country and entrepreneurs belonging to SC/ ST, the subsidy would be 33.33%.The fund is provided in the budget of Directorate of Marketing & Inspection(DMI), an attached office of DAC and placed at the disposal of NABARD/ NCDC.The funds for awareness building and training programme will be placed at thedisposal of NIAM, Jaipur and other national/ State level implementing agencies.The eligible promoters for construction of rural godowns can be individualfarmers, group of farmers/ growers, partnership/ proprietary firms, NGO,companies, corporations, cooperatives, Agricultural Produce MarketingCommittees, Marketing Boards and Agro Processing Corporations. The schemehas been approved on 26.2.2002. Under the scheme new storage capacity of 18.50lakh MT and modernization of cooperative godowns of 1.50 lakh MT has beenenvisaged. A sum of Rs.900000 thousand has been allotted for implementation ofthe scheme by March 31st, 2003. Under this scheme a total of 2373 godowns witha storage capacity of 36.62 lakh MT have been sanctioned by NABARD & NCDCas on 31.12.2002. Out of these, 390 projects with a capacity of 28.75 lakh MThave been sanctioned by NABARD and 1983 projects with a capacity of 7.87 lakhMT have been sanctioned by NCDC. 973 projects have been sanctioned by NCDCfor renovation of about 95,600 MT storage capacity as on 31.12.2002.RESEARCH DESIGN:-The formulation of research design is one of the important steps of research. Thevalidity and reliability of a research depends upon the strategy undertaken toconduct the research .a good research depends on to aspects it’s design speciallywhat ones wants to do. Research design is a strategy undertaken to face thesituation in which it carried out. The research design limits the research area andenables to anticipate the potential problems. The present study is to raise incomesand improve livelihoods of the rural poor people and also to improve the storagefacilities. The study basically aims to study the nature and magnitude of effectsagriculture marketing on rural people and various events involved on it. The dataare to be collected from single situation and in a single time period hence
  12. 12. evaluation descriptive study designed is preferred. The data will be collected only fromthe secondary sources. These data has collected from OSAM website, published articles andjournals.FINDINGSFinding is the main chapter of this paper which is elaborated on the certainobjectives. So this paper has explained clearly about the two schemes namely,krushak bazaar (farmers market) and agricultural marketing information network.The krushuk bazaar has given the important facilities such as infrastructure andtransport facilities for which small farmers of remote areas can easily reach in themarket and sell his products directly to the ultimate consumers. It finds that there isa directly transaction or dealings between primary producers with theconsumers .middleman commissioner or intermiditeries has eliminated due to theshare of profit in between the farmers and the consumers through this schemes.The another important finding is to avoid the unhealthy practices or anymalpractices in the bazaar places.CONCLUSIONThis concluding chapter is needed a quintessence of the empirical and in-depthanalysis of the multifarious possibilities and potentialities of the globallyrecognized and accepted concept of agricultural marketing with the objective offinding put how far it accelerates the process of developing at the remote areas.itinclude the observation and findings that have crystallized from the enquiry on thetopic of the study. It also contains certain recommendation and suggestion with aview to providing necessary information to the government and other publicinstitution like as NGO.The study led to a nutshell form of conclusion that the krushak bazaar andagriculture marketing information system is the best scheme which help to riseincomes and improve livelihoods of the remote areas people. The krushak bazaarhas played a key role to develop the infrastructure and free transport facilities forwhich a small or marginal farmer can easily sell his product to the consumers in
  13. 13. the market .The krushak bazaar has avoided middleman or intermediateries due tosharing of profit between the primary producers and consumers. So it is easilypossible to accessible to both the producers and consumers after eliminated ofmiddleman or commissioner agent or intermidiateriesThis study clearly shows that the income level of farmers in remort areas peoplemust be raised and livelihood also be improved through the krushak bazaar (farmmarkets) scheme. Now the primary producers can easily get the best possiblereturn and also can make all origin products of firm to consumers at reasonableprice without impairing on the quality of the product .The agricultural marketinginformation system is another important scheme which is given the storagefacilities to store a huge quantity of products .So the hypothesis has been provedon the basis of objectives.REFERANCE :http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM Originated by: Agriculture Departmenthttp://indiabudget.nic.inwww.osamboard.org/pdf/OSAM-Board-for-RMC

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