This document summarizes a seminar on converting production-led agricultural extension to market-led extension in India. It discusses how India achieved food self-sufficiency through production-led extension but farmers do not realize good prices. It advocates for market-led extension to enhance farmer incomes by 20-30% through commercialization, cost reduction, exports, and market modernization. A case study shows how the rubber board established producer societies and factories, trained farmers on quality, and increased productivity, processing, and farmer incomes by linking producers to markets.

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2. SEMINAR ON
MARKET LED EXTENTION
Presented By:
Mahesh Kumar Kansotiya (MABM)
Dept. of Agricultural Economics
Inst. of Agricultural Sciences
B.H.U.
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Advisor
Prof. H P Singh
Head of the department
Dept. of Agricultural Economics
Inst. of Agricultural Sciences
B.H.U.

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.
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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%
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source : Ministry of Agriculture, Government of India, 2001 ( Draft )

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.
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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
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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)
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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
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Source: adepted from glendning et al.(2010)

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
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10. Dimensions of market-led extension
• Marketing mix
• Marketing plan
• Market oriented production
• Use of Technology
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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.
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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
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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
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15. CASE STUDY ON
MARKET-LED EXTENSION
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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
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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.
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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 .
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