The document discusses new trends in agricultural extension, including a shift from top-down to bottom-up and production-led to market-led approaches. It outlines the need for market-led extension to help farmers understand market demands and consumer preferences in order to improve livelihoods. Examples of innovative market-led extension approaches provided include market intelligence, contract farming, and direct marketing. The challenges and dimensions of market-led extension are also summarized, along with some successful farmer entrepreneurs utilizing these approaches.

1. New Trends in Agricultural
Extension
Dr. Rajinder Kaur Kalra
Professor and Head (Retd.)
Department of Extension Education
Research
Extension Farmer

2. Need of Extension System
• To assist farm people
• Identify their problems
• diversified farming systems and sustainability
• Ecologically and
• Sustainable farming practices

3. Change In Extension System
• In Past, Agricultural Extension System was
‘top-down’ approach
• In the emerging global agriculture economy,
top-down approach no longer to be an
appropriate model
• To be effective in improving rural livelihoods
• Create a decentralized ‘bottom-up’ approach

4. Primary Agricultural Development
Goals
• Achieving National and Household Food
Security
• Improving rural livelihoods and Achieving
Household Food Security
• Strengthening Natural Resource Management

5. Expanding the Skills and Knowledge
of Farmers
• Primary national goal shifts from technology
transfer to improving rural livelihood
• Natural resource management

6. Innovative Extension Approaches
• Market Led Extension
• Farmer led Extension
• Privatization Extension
• Cyber Extension
• Expert System

7. Market led Extension

8. Market
The word market comes from the
Latin word “marcatus”, which
means merchandise or trade or a
place where business is conducted.
A social institution which performs
activities and provides facilities for
exchanging commodities between
buyers and sellers.
(Wader and Murthy, 2008)

9. Marketing
Marketing is an important part of any successful business. It connects what the
customer wants with what the producer can produce and supply at a profit
It includes all the activities involved in the creation of time, place,and form.
Marketing contains a series of activities involved in moving the goods from
the point of production to the point of consumption.
(Wader and Murthy, 2008)

10. Extension
•The word “Extension” is derived from the Latin roots
Ex meaning Out and Tension meaning stretching
• Extension is to bring about desirable changes in the
behaviour-knowledge, skills, attitude, understanding,
goals and confidence of the people through mutual
learning.
• Extension means to extend, to spread or to
disseminate useful information and ideas to rural
people outside the regularly organized school and
class rooms.
Sharma and Somani 2012

11. Market – led extension
• The market word orientation of agriculture through extension includes
agriculture & economics
• The perfect blend for reaching at the door steps of farming community with
the help of appropriate technology.
Market-led :- Identification of customer needs and wants before offering
a service.
(Kaleel, 2007)

12. Cont…..
Many farmers are blind
to
the requirements of the
market.
Marketing extension
lifts that blindfold

13. How the MLE differ from the PLE

15. Aspects
• Maintenance
of Record
• Information
technology
support
Production-
Led Extension
• Not much
importance
was given
• Emphasis on
production
technology
Market-Led
Extension
• Important to
understand
cost benefit
ratio
• Market
Intelligence
include in this
(Anonymous 2013)

16. NEED OF MARKET-LED EXTENSION
 Farmers are not able to sell their produce fairly.
 Plenty of distress sales among farmers.
 Minimization of production cost.
 Expansion of Market - more of agribusiness and trade.
 Introduction of export oriented product.
 Modernization of wholesale markets with new Agricultural policy.

17. Cont…
 Globalization/ Economic liberalization-Expansion of Market-more
of agribusiness and trade
 Revolution in Information Communication Technology (ICT)
 New trade opportunities within and outside the country
 Conversion of Agriculture sector into profit oriented business
 Strengthening market linkages to farmers – IT application in
Agricultural marketing
(Anonymous 2008)

18. INSTITUTIONS FOR MARKET LED
EXTENSION IN INDIA
State Agricultural Universities
National Institute of Agricultural Marketing
State Agricultural Management and Extension Training Institute,
SAMETI (State level training institute)
State Institute of Agriculture Management
National Institute of Agricultural Extension
Management (An organisation of Ministry of
Agriculture, GOI) Hyderabad

19. cont
(Anonymous 2011)

20. Required information to extension system and
farmers
 Present agricultural scenario and land use pattern
Suitability of land holding to various crops/enterprises
Crops in demand in near future
Market prices of crops
Availability of inputs
Usage of inputs
Credit facilities

21. Cont…….
 Direct marketing- Direct marketing by farmers is being encouraged as an
innovative channel
 Desired qualities of the products desired by consumers- needed for
competitive marketing
 Market network of the local area and the price differences in various
markets
 Network of storage and warehouse facilities available
 Transport facilities- Especially for perishable produce like milk, vegetables.
 Production technologies like improved varieties, organic farming, usage of
bio-fertilizers and bio-pesticides, and right methods of harvesting etc.

22. Challenges to Market Led Extension
 Risk bearing
 Storage of farm produce
 Grading
 Standardization
 Processing
 Adoption of information
technology
 Financing
(Anonymous 2013)

23. Challenges to Market Led Extension
 Risk bearing
 Storage of farm produce
 Grading
 Standardization
 Processing
 Adoption of information
technology
 Financing
(Anonymous 2013)

24. PROBLEMS RELATED WITH MARKET-LED
EXTENSION
Market
related
Extension
related
Production
related

25. • Perishability of produce
• Seasonality of production
• Bulkiness of production: Transportation problem
Production
related
• Non - availability of MI: Lack of information about
the market
• Existence of middleman: Too many market
functionaries
• Inferior quality of produce
Market
related
• Lack of communication skills
• Lack of credibility
• Insufficient information related with market
Extension
related
(Kumar et al 2012)

26. DIMENSIONS OF MARKET-LED
EXTENSION
DIMENSIONS
Marketing
mix
Marketing
plan
Market
intelligence
IT
application
in
agriculture
marketing

27. Marketing mix
(Anonymous 2014)

28. Marketing plan
• It is a blue print of marketing objectives,
opportunities and strategies to develop, price,
promote & distribute the products of a firm to
meet its organisational objectives.
B(((Babu 2007)

29. Market intelligence:
 The process of collecting, interpreting, and disseminating
information relevant to marketing decisions is known as
market intelligence
 Market Intelligence is a process of giving you insights into
what might happen in the near future.
Need MI in agriculture
• Reduce the level of risk in decision-making
• Seller finds out what the customer needs and wants
• What products are right for the market
• What will be the price

30. IT application in agriculture
marketing
Information technology play vital role for
disseminating Information of marketing

31. OPPORTUNITIES
Tapping the
new trends
Supply chain
Management
Contract
Farming
Direct
marketing:

32. Tapping the new trends
• It is adopting new trends in MLE so as to get
maximum return to the farmers

33. Supply chain Management

34. Contract Farming
• Contract Farming is essentially an agreement between
the primary producer and agri business firm to
procure certain pre-agreed quantity and quality of a
produce at particular time and price
(Eaton and Shepherd 2001)

35. Direct marketing
• It is the use of consumer-direct channels to reach and deliver
goods and services to customers without using market
middleman, wholesalers, advertisers and retailer.

36. SOME SUCCESSFUL ENTERPRENURS
USING MARKET-LED EXTENSION
Name of the Self Help
Group
Name of the Farm
Women
Products
Global Self Help Group Gurdev Kaur, From
Ayali Khurd
Honey, Pickel, Saag
Ready to Cook, Ready
To Serve
Asal Self Help Group Nasib Kaur, From
Bathinda
Honey, Pickel, Saag
Ready to Cook, Ready
To Serve
Mai Bhago Self Help
Group
Parmjit Kaur, From
Lohara
Cleaning agent,
Soya Product
Mata Sindri Self Help
Group
Karmjit Kaur, From
Bains
Honey, Saag Ready to
Cook, Ready to serve

37. Successful entrepreneur
• Bachittar Singh Garcha belongs to
village Deh Kalan in Sangrur district. He
has developed and deals in various soybean
products
• Santokh Singh Aulakh belong to District,
Ludhiana. He grows organic vegetables in
poly house

39. CONCLUSION
Market-led extension system establishes its position by
helping the farmers realize high returns for the produce
and minimize the production costs and improve the
product value and marketability.
Information technology, electronic and print media need
to be harnessed to disseminate the production and market
information Indian farmers have moved from subsistence
to self-sufficiency due to advent of production
technologies
In order to be successful in the liberalized market
scenario they have to shift their focus from ‘supply
driven’ to market driven’ and produce according to
the market needs and earn high returns.

40. Thank you