A critical study on road side marketing a new avenue for farmers in small villages


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A critical study on road side marketing a new avenue for farmers in small villages

  1. 1. International Journal of Marketing and OF MARKETING AND (IJMHRM), INTERNATIONAL JOURNAL Human Resource Management HUMAN ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 1, January - April (2013) RESOURCE MANAGEMENT (IJMHRM)ISSN 0976 – 6421 (Print)ISSN 0976 – 643X (Online) IJMHRMVolume 4, Issue 1, January- April (2013), pp. 08-13© IAEME: www.iaeme.com/ijmhrm.asp ©IAEMEJournal Impact Factor (2012): 1.5321 (Calculated by GISI)www.jifactor.com A CRITICAL STUDY ON ROAD SIDE MARKETING - A NEW AVENUE FOR FARMERS IN SMALL VILLAGES DR RAJESH UTTAM KANTHE Associate Professor, Bharati Vidyapeeth University, Institute Of Management .Sangli drrajeshkanthe@gmail.com ABSTRACT India is identified as a farming nation and farming is the backbone of the country. Majority of the farmers are marginal farmers and for them producing and selling the produce at pea nuts for decades has been a regular activity. Their major concern is when selling vegetables, the vegetables have to reach the users at the minimum possible time, otherwise it becomes waste. The idea behind the paper is to figure out can the farmers themselves sell their produces directly to the end consumers in local markets, in unregulated farmer markets, or they have to only sell to intermediaries—agents . The market place is usually in close proximity to the farmland and customers accessing the market live in and around locale. Farmers selling vegetables directly to the customer amount to very small fraction by volume. Farmers sell bulk of their produces to agents and auctioneers. The agents buy small quantities of produces from farmers and transfer it to agent. This research paper made an attempt to analyze the factors influencing the customers to purchase Vegetables and fruits on roads and highways and to suggest better ways and means to retain the Customers. Keywords: Western Maharashtra, Roads, Vegetables Farmers’ Consumers, Agent and Supply INTRODUCTION The fruit and vegetable marketplace is taken to be the sale to consumers of fresh fruit and fresh vegetables. The vegetables and fruits (seasonal) are the two main sectors of the market. Fresh fruit includes products such as grapes, bananas, gava, chicoo, carrot, and citrus fruits. and vegetables. The fruit and vegetable industry is highly decentralized in India. 8
  2. 2. International Journal of Marketing and Human Resource Management (IJMHRM),ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 1, January - April (2013)The diverse agro-climatic zones make it possible to grow almost all varieties of fresh fruitsand green vegetables in India. India is the second largest producer of fresh vegetables in theworld (ranks next to China) and accounts for about 15% of the world’s production ofvegetables .The major vegetable grown are brinjal, tomato, ladyfingure, pulses etc fruitsgrown in the study area are banana, mango, citrus, guava, grapes, apple and papaya whichconstituted nearly 80 per cent of the total fruit production in the study area. Vegetables hasthe largest share of 31.7 per cent in total fruit and vegetable production, the growth can alsobe amounted for an increase in the area under crops growing. The auctioneers are people who enter into buying contract with farmers for whole or partialquantity of the produce and sell the produce to an agent or a wholesaler. Auctioneers alsotransfer the vegetables to wholesalers directly or through another agent. Wholesalers ofvegetables sell to retailers—both traditional and organized retailers, and to customers, whobuy in large quantity. Cart vendors, a type of traditional retailers, buy vegetables fromwholesalers or organized retailers, sell to customers in mobile carts and deliver to customersat customers doorsteps. Wholesale market is a vital link in vegetable supply chain.Maharashtra is a highly industrialized state of India at the same time; agriculture continues tobe the main occupation of the state. Principal crops include rice, jowar, bajra, wheat, pulses,turmeric, onions, cotton, sugarcane and several oil seeds including groundnut, sunflower andsoybean. The state has huge areas, under fruit cultivation of which mangoes, bananas, grapes,and oranges are the main ones. Irrigation facilities are being extended so that agriculturecould be made less dependent upon rain water. The net irrigated area totals 33,500 squarekilometers.This present study is an attempt to find out whether the road side marketing of vegetables andfruits by farmers at their respective gate would bring a new avenue for the farmers inmaximization of profits and not going to middlemen for the sale of their produce at the peanuts amount.REVIEW OF LITERATURE The literature survey helped to understand and welcome the earlier studies carried outin the field of agri-marketing and it endow with a wide framework of this work. A substantialquantity of writings mutually at the overall and micro levels can be seen on the subject ofagri-marketing and its impacts on the end producers and users. People come to the farmers market to buy vegetables.1 Farmers can sell a lot ofvegetables as weekend bazaars and sabji mandis are becoming costlier. Farmers need to bringenough vegetables on the road. This design of market place has to be developed in carefullymonitoring. If you want to sell your vegetables at a farmers market, look for a market that ison the way ,road side and near farms where the vegetables are quite fresh and at low cost ascompare to vegetable markets.2 People today enjoy visiting farms and interacting withfarmers. Many farmers sell vegetables at a farmers market or a roadside stand. Some farmerslove to pick on their own vegetables. And check for freshness and also buys more quantitythan usual buying.3 It is seen that the area around the sale point is not attractive with no display to choosefrom. Only quality and gradient item to give a customer a better view and make vegetableslook larger. Vegetables are kept on the ground giving natural essence. No signs for all crops 9
  3. 3. International Journal of Marketing and Human Resource Management (IJMHRM),ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 1, January - April (2013)with name and price.10 Customers also like to buy the vegetables natural and ready to pay thefarmers ask knowing that the farmers are charging less than the vegetable market.4Marketing crops productively initiate with making sure that vegetables are fresh and healthy.5 No matter where you sell, consumers want high value. Subsequently, it is important to figureout what is important to about selling farm produce. Farmers want their customers to picktheir own vegetables. 6 People like to stop at roadside stands to buy fresh vegetables. Roadside stands areclose to farms where these vegetables are grown. Farmers can sell their produce withouttraveling far, and secondly farmers can make more money selling the crops directly thangiving it to middlemen. 11. For instance, fresh-picked, brinjals, ladyfingers, coconuts, bananas,lemon, carrots, sweet corn, tomatoes, and pumpkins sell well.7 Consumers who stop atroadside stands like to see multicolored plants, farms, animals, even fresh fruits. They alsolike to see your crops growing. If you want to sell your crops at a roadside stand.8Marketing of vegetable seeds plays an important role in agribusiness input industry. Itsdevelopment in broader perspective can bring about increase in agricultural income. Veryfew studies have been attempted on vegetable seed marketing aspect in IndiaIMPORTANCE OF THE STUDY For the study, the researcher has collected data from 50 farmers involved in thisunique activity to enhance their economics and around 200 respondents’ who purchaseVegetables and fruits on roads and highways on sangli-kolhapur connecting road. For thispurpose stratified random sampling method was used to select the samples. The present studyhighlights the extent of utilization of the farm produce by the selected sample respondents. Italso shed light on the common problems faced by the Respondents. The major features of thesectors especially on farm produce marketing at farmers place, i.e. Near the farm or on thegate of his farm on the road to Kolhapur is projected in order to utilize the services as per theexpectation of the patients (customer).The collected data was analyzed through percentage and average method.RESEARCH METHODOLOGY The study is an observation in nature and primary data was considered for analysis.The Data were collected using interview schedule and open discussion with the respondents.The Respondents were selected by convenient sampling depending on availability. Study of100 respondents. (FARMERS)Sample size: on the highway of jaysingpur-hatkangale-kolhapurarea, the road is identified forcollecting data in such a way that 100 respondents were selected .At the first stage, therespondents were divided into two categories first, those who are involved in cash cropsfarming for more than 5 years and those who changed their occupation to farming relatedactivities within last 2 years.Data Collection and ToolsA structural interview schedule has been used for collecting responses from the persons .Thecollected data was tabulated and distribution tables were framed.Percentage analysis was used for the analysis. 10
  4. 4. International Journal of Marketing and Human Resource Management (IJMHRM),ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 1, January - April (2013)ANALYSIS OF DATA1. Farmers Involved In Marketing Activity Sample No. of farmers Percentage Big Farms(more than 5acers) 15 15 %Small Farms(less than 5 acres) 85 85 %The survey was carried to know how many farmers from the sample are big farmers andsmall farmers involved in the producing of vegetables in their farm. It was revealed thatmajority of the farmers involved in this activity were small Farmers Who Had below 5Aceres of Land under Cultivation of Vegetables and Other Crops.2. Primary Activity Of Selling VegetablesPrimary Activity Of Selling Vegetables No. of farmers Percentage Yes 25 25 % No 75 75%Though Vegetables marketing by any channel is an important mode of economic activity forthe farmers in western Maharashtra. It was found that the only 25% of the farmers from thesample are directly involved in selling of vegetables on road and not send it to middlemen.3. Reasons for Road Marketing Main Reason No. of farmers PercentageNear To Farm 15 15%Away From City 10 10%Profit Is More 25 25%Can Do Other Routine Things 20 20%Middlemen Cheats 5 5%Vegetables Decay Fast. 15 15%Any Other Specify. 10 10%Marketing of fruits on roads is a well known activity carried out by farmers but this activityof selling their vegetables near the farm and on road is in very nascent stage.it was revealedthat farmers had different reasons for carrying out this activity. Near To Farm, Away FromCity, Profit Is More, Can Do Other Routine Things, Middlemen Cheats, Vegetables DecayFast and other reasons too.It was found from the survey that majority of farmers who were involved in this activity werefor the simple reason that they were getting maximum profit from this direct selling on roadand near to the farm. Secondly the farmers were found happy that the middle interference isnot there .and also vegetables do not decay early as it happens with the market and middleplays had played an important in the fruit and vegetables market but with this model, it willreduce the role of middle men and customer and farmer will be benefited at a large. 11
  5. 5. International Journal of Marketing and Human Resource Management (IJMHRM),ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 1, January - April (2013)4. Major Problems Faced Major Problems Faced No. of farmers Percentage Running Road 10 10 % Few Customers Stop 25 25 % Bargaining Is High 10 10 % Marketing of spot 55 55 %Selling vegetables on roads is a well known activity carried out by farmers since edges.Farmers to face problems in selling the produce directly to consumers. But this activity ofselling their vegetables, it was found the majority of farmers felt that very few customers stopon road to purchase vegetables and this was the major problem in selling the vegetables onroad .as these farmers open a point of sale near their farm, so very few customers stop on therunning road and purchase the produce. Only 10 %of farmers felt that customers bargainedon price. Whereas majority of farmers opined that they were inefficient in carrying outmarketing activities of their produce and the spot of sale where they sale their produce.5. Professional Marketing More Professionalism No. of farmers Percentage Yes 75 75 % No 15 % 15 % Can’t Say 10 10 %Finally it was revealed that majority of the farmers opined that they would continue to carryout this business in future also and would do it more professionally and secondly wouldconsult people who are doing marketing specially fruits and vegetables marketingsuccessfully. Hence entering with more rigor.FINDINGSThough majority of the sample is involved in this marketing activity it was found that thelarge section of the sample does it as secondary activity. This is again a setback to the overallactivity. Secondly this activity is carried on the running road which again has limitations, butwith effective advertising and promotions by farmers only, will lead to success. Farmersreceive payment from consumers without incurring transportation costs.Farmers Can Develop Anew Business Model In Agrimarketing, Thus Crafting A NewProfit Making Avenue For Farmers In Small Villages. 12
  6. 6. International Journal of Marketing and Human Resource Management (IJMHRM),ISSN 0976 – 6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 1, January - April (2013)SUGGESSTIONS1. Vegetable Farmers must have a marketing strategy. The key strategy issue to be addressedis that vegetables, once harvested, will deteriorate and eventually perish. As a result, Farmersneed to plan a balance between the quantity of vegetables available for sale, the variety ofvegetables for sale, the location of their particular vegetables in the consumer market and themarketing channel through which the produce will be marketed to consumers.2. Small farmers must also determine which of the following channels or combination ofchannels provide the best means for marketing their produce to directly consumers.3 Road Side Farm entry sales - These farmers must harvest the produce, prepare the producefor sale and in actual fact work on retail outlets on the farm for selling directly to theconsumer. 4. Farmers who market their produce on road side should ensure that they have knowledgeabout sales to work with consumers. Road Side Farm gate sales also require proximity tolarge population centers, good roads, a parking area, good signage and facilities toaccommodate customers.REFERENCES AND NOTES +1. USDA National Agricultural Statistics Service. The Census of Agriculture; Availableonline: http://www.agcensus.usda.gov/ (accessed on 9 July 2009).2. American Farmland Trust. Farming on the Edge Report. What’s happening to OurFarmland? Available online: http://www.farmland.org/resources/fote/default.asp (accessed on9 July 2009).3. Conner, D.S.; Knudson, W.A.; Hamm, M.W.; Peterson, H.C. The food system as aneconomic driver: strategies and applications for Michigan. J. Hunger Environ. Nutrition2008, 3, 371-383.4. Lobao, L. Locality and Inequality. Farm Structure and Socioeconomic Conditions; StateUniversity of New York Press: Albany, NY, USA, 1990. 5. Welsh, R.; Lyson, T. Anti-Corporate Farming Laws, the ―Goldschmidt Hypothesis‖ andRural Community Welfare. In Proceedings of the Annual Meeting of the Rural SociologicalSociety, Albuquerque, NM, USA, August 2001. 6. Lyson, T.A.; Welsh, R. Agricultural industrialization, anticorporate farming laws, andrural community welfare. Environ. Plann. A 2005, 37, 1479-1491.7. Kirschenmann, F.; Stevenson, S.; Buttel, F.; Lyson, T.; Duffy, M. Why worry about theagriculture of the Middle? In Food and the Mid-Level Farm, Renewing an Agriculture of theMiddle; Lyson, T., Stevenson, G.W., Welsh, R., Eds.; MIT Press: Cambridge, MA, USA,2008; Volume 2005, pp. 3-22.8. Andreatta, S.; Wickliffe, W. Managing Farmer and Consumer Expectations: A Study of aNorth Carolina Farmers Market. Hum. Organ. 2002, 61, 167-176.9. Govindasamy, R.; Italia, J.; Adelaja, A. Farmers Markets: Consumer Trends, Preferences,Characteristics. J. Ext. 2002, 40, 1. Sustainability 2009.10. Dr. N. Mahesh and Dr. R. Ganapathi, “A Study on Determinants of Consumers’ PurchaseBehaviour towards Green Products” International Journal of Management (IJM), Volume 3, Issue 3,2012, pp. 32 - 41, Published by IAEME 13