Market Information Service(MIS)-Definition ,Objectives , Significance , Impact Of MIS

1. Market Information Service(MIS)-
Definition ,Objectives , Significance ,
Impact Of MIS

2. Market Information Services
• Market Information Service (MIS)is a means of
increasing the efficiency of marketing systems and
promoting improved price formation.
• Improved information enables farmers to plan their
production more in line with market demand,
schedule their harvests at the most profitable times,
decide to which markets they should send their
produce and negotiate on a more even footing with
traders.

3. • Improved information should enable traders to move
produce profitably from a surplus to a deficit market
and to make decisions about the viability of storage of
produce during peak season.
• In designing a service, sustainability and commercial
utility should be the prime considerations.
• It also implies tailoring the service to meet the
resources available and only expanding operations
when additional funds can be obtained on a long-term
basis.

4. MIS is defined as a service, usually operated by the
public sector, which involves the collection on a regular
basis of information on prices and in some cases,
quantities of widely traded agricultural products from
rural assembly markets, wholesale and retail markets and
dissemination of this information on a timely and
regular basis through various media to farmers, traders,
government officials, policymakers and others, including
consumers.
Definition

5. Objectives
• To generate information on wholesales prices, arrivals
and trends in various markets of the country for
important food grains ,fruits, vegetables & flowers, etc.
• To establish a nation-wide communication network
for speedy collection and dissemination of market
information data for its efficient and timely utilization.
• To develop a sound marketing strategy especially by
making use of statistics generated by various Marketing
Boards/ APMCs for optimizing returns to the producers.

6. Cont..
• To analyze the trends of arrivals, prices and other
related factors of the commodity markets all over the
country.
• To collect and disseminate information on international
prices prevailing in potential foreign markets.
• To establish Web-sites and internet connection through
efficient channels/systems for dissemination of
national & international data.

8. Significance of Market Information
Services
• A Market Information Service is seen as providing
transparency, i.e. a full awareness of all parties of
prevailing market prices and other relevant information.
• It can contribute to arbitrage, i.e. the act of buying at a
lower price and selling at a higher price.

9. • “spatial arbitrage” takes place while Traders take
advantage of price differences until these differences
decrease to the level of transaction costs.
• “Temporal arbitrage” is the storing of products in order
to take advantage of expected higher prices later in the
season or, in some cases, in subsequent years.

10. Impact of Market Information
Services
1. They can facilitate efficient allocation of productive
resources.
2. The bargaining position of farmers with traders can
be improved. Information reduces transaction costs
(i.e. the costs of selling the produce) by reducing
risks.
3. Farmers with timely and reliable information and the
ability to interpret it, can decide to which market they
should send their produce to maximize returns or,
indeed, whether to send their produce to market at all.

11. 4. Lack of information is an entry barrier to both
production and trade. Where farmers have access to
information, shifts in cropping patterns to higher value
produce have been noted. In the area of trade,
individuals find it difficult to begin trading without
information, so reducing competition within markets
5. Market information can be particularly valuable where
countries are changing over from a state-controlled
marketing system to one of private enterprise, in that
farmers and small traders are made more aware of
market opportunities

12. 6. By contributing to more efficient marketing , particularly
improved spatial distribution, market information should
be beneficial for consumers as well as farmers and
traders. Information on retail prices may also, under
certain circumstances, assist consumers to bargain
7. The essence of a good Market Information Service is that
it should provide commercially useful information on a
timely basis.

13. 8. Information is also useful to policy makers. This
improves policy formulation as the functioning of
markets comes to be better understood
9. Market information is also an important component of
Early Warning systems for food security as it can assist
in identifying areas of possible shortages and can
highlight whether prices are above or below normal
seasonal trends