This document discusses different primary market price systems for fish in India. It describes direct sales between fishermen and buyers, auction sales where fish are bid on, and contract sales where producers agree in advance to sell certain quantities of fish at set or later-determined prices. Auction sales are described as an important system that allows for fair pricing, while contract sales provide producers price certainty but fresh fish wholesalers prefer flexibility. Both auction and contract sales have advantages and disadvantages for buyers and sellers.

1. SUMESH. P
iii semester
MSc IF

2. INTRODUCTION
 Interaction of buyers & sellers establishes a market.
 In a free market there is no economic intervention &
regulation by state.
 Property rights are voluntarily exchanged at a price
arranged by mutual consent of sellers & buyers.
 Price is the result of buying & selling.
 Supply & demand are market forces that determines
price of a commodity.
 In a free market existence of a surplus creates a
downward pressure on market price.

3. PRICE SYSTEMS
 In a primary market the existing price systems could
be grouped as:

4. DIRECT SALES
 Fishermen directly sell the product to customers
without the help of an intermediary.
 Possible only in small landing centers where direct
contact between fisherman & customer is possible.
 Price is negotiated between individual fishermen &
wholesalers,retailers,processors or consumers.
 This led to strong link between individual fishermen &
a particular buyer who have advanced working capital.
 Trawler owning companies directly sell their
production to customers ,incase of seafood products.

5. AUCTION SALES
 Most important single first sales system in fish
marketing.
 No single one should be able to monopolize price
settlement.
 Auction begins at a fixed hour in early morning.
 Companies engaged in production & distribution also
submit their catches for sale at auction.
 2 types of auction – 1) bidding & over bidding
2) Deutch auction

6. BIDDING & OVER BIDDING:
 Increasing bids are announced until highest is reached
& accepted.
 Offered by prospective buyers.
 Auction starts from a lower price.
DEUTCH SALES:
 Auction starts from a high price which is lowered until a
buyer is found.
Based on % of total catch displayed at auction- 2 types
 Sample auction: a sample is displayed & rest is preserved
inorder to prevent spoilage.
 Blind auction : bidding may be carried out over
telephone without seeing it.

7. Advantages:
 Open system for public & fair pricing system.
 Flexible system hence very low & very high quantity of
fish can be sold in an auction.
 Helps in clearing the market.
Disadvantages:
 Time consuming will result in low quality of fish.
 Malpractices are known to exist.
 Allowing secret discounts on price & quantity during
actual settlement.

8. CONTRACT SALES
 Producer get in to contract with buyers.
 Different types of contracts are possible according to
conditions laid down in them, the way they are
negotiated, their duration.
 3 types of contractual agreements:
1. Fixing the quantity to be delivered, but leaving the
price to be settled later.
2. Fixing the price to be charged, but leaving the exact
quantity open.
3. Fixing both price & quantity in advance.

9.  Contract may cover some years, seasons,whole or part
of boat load.
 Agreements about quality, assortment, sizes& grading.
 Producer avoids marketing risks & is able to calculate
what returns he will get.
 Fresh fish wholesalers do not favor advance agreements
on price.
 Trawl owners may arrange on individual contract or
joint contract.
 Include provision for adjustment of prices according to
market situations.

10. THANK YOU