2. Market survey on availability and acceptability of Duck Eggs & Meat in Tamil Nadu
3. The study of Marketing Problems of Agricultural Produce of Sundarban Region in West Bengal
Arcot Ambedkar(Vellore) Distt.
5. Marketing of crude drugs and Essential oils in India : Problem and Prospects
Name of the Institution / : Department of Agricultural Economics,
Vishvavidyalaya,
Palampur – 176 062.
Materials
in Himachal Pradesh.
Name of Principal : Dr. D.R. Thakur.
Problems relating to Agricultural development of hill areas are different from that of the plains, perhaps due to this fact, of late, the policy planners of the country have made their mindset to provide a powerful thrust to change the uneconomical traditional crops from the crop-mix of the farmers by incorporating non-conventional high value ventures, like cut-flowers that have immense scope of enhancing income and employment avenues for the hill farmers. Realizing this importance of cut-flowers, the present study, "Marketing of cut-flowers and Planting Materials in Himachal Pradesh”, was undertaken to examine the production potential, economics, marketing systems and constraints of important cut-flowers alongwith their policy options. The present study deals with the four major cut-flowers (Gladiolus, Lily, Carnation and Tulip) that are commercially grown in the state. It needs to be mentioned that orchids did not gain much popularity at the farm level in the state and as such, this study exclusively deals with economics and marketing aspects of cut-flowers.
OBJECTIVES:
i) To estimate area, production and financial over-view of different types of cut-flowers in Himachal Pradesh.
ii) To examine existing infra-structural facilities for inputs and planting material required for the cultivation of cut-flowers in the study area.
iii) To study the prevailing marketing systems of cut-flowers along with their post harvest/pre-marketing functions/functionaries, size and structure of important markets of flowers grown in Himachal Pradesh.
iv) To analysis the structure and composition of marketing costs, price-spread and marketing efficiency for different types of flowers.
v) To explore potential/prospects of cut-flowers in Himachal Pradesh and to identify constraints/problems thwarting the production and marketing of cut-flowers in the state.
vi) To suggest suitable strategies relating to modern market facilities required to harness potentials of cut-flowers in Himachal Pradesh in particular and hilly areas, in general.
MAIN
FINDINGS
Based on the analysis of primary and secondary data contemplated in various sections of this report, the following important findings have emerged out:
1. It has been found that the cut-flowers’ cultivation has been patronized by well-endowed farmers that are settled in the vicinity of all weather roads and assured input supply centers. It has also been perceived that in a multi-cultured economy like ours, the caste structure does play a role in the flowers cultivation as this venture has been mostly taken up by the families of higher castes (Rajputs and Brahmins) who happen to be businessmen, servicemen and retired personnel, having higher literacy rate. About half of the flower-growers have acquired some technical training that was not found sufficient for handling this specialized venture.
2. The total size of holding of an average flori-farm was 2.8 hectare, out of which the operational holding accounted for around two-third of the total land. About 41 per cent of the area operated was allocated to cereals for maintaining the food security of the family, while non–conventional crops occupied the remaining area wherein cut-flowers accounted for 5 per cent. Among different cut-flowers, Gladiolus and Asiatic Lily were the prominent flowers accounting for more than 80 per cent area. Carnation and Oriental Lily were the other promising cut-flowers in the study area. However, Orchids have not gained much popularity as yet at the farm level in the state.
3. These exotic cut-flowers have been recently introduced through the import of planting materials mainly from Holand by the Govt. of India and distributed to the farmers both by the sale agents as well as Deptt of Horticulture. Over the short span of 4 to 5 years, the planting material of different cut-flowers increased 4 to 5 times that clearly showed the promising prospects of flower cultivation.
4. It has also been found that cut-flowers cultivation is highly capital intensive. The per hectare capital investment on planting material, farm structures, machinery and implements and investment on irrigation structure varied from Rs. 33 lakhs in case of Carnation to around Rs. 5 lakhs in case of Gladiolus in which the investment on planting material was the major component. The exotic cut-flowers like Carnation, Oriental Lily and Asiatic Lily that required poly /green-house and shade-net for planting were most capital intensive. On an average, the total capital investment per farm was estimated at Rs. 1,01,785 in which planting material alone accounted for about 64 per cent of the total investment. The flowers growers met about 63 per cent of the total capital investment from their own resources, 11 per cent through borrowings from the banks while around one fourth was acquired in terms of subsidy.
5. During the survey of different flori-farms in the state it was observed that cut-flowers were being grown on a fertile piece of irrigated land. Large quantity of manures and fertilizers were being applied as basal application and frequent top dressing doses. The fungicides, insecticides and growth hormones were also applied at different stages of crop growth. Being delicate and highly valued, the cut-flowers required intensive care and management and as such, floriculture was found to be highly labour intensive. The total human labour requirement varied from about 322 man-days for Gladiolus to 549 man-days for Oriental Lily. It also needs to be mentioned that due to cultivation of limited area in juxtaposition to lack of standardized package of practices, there was diseconomies of scale in the over use of inputs or labour.
6. It has been observed that the agro-climatic conditions of Himachal Pradesh are quite conducive for raising two crops of exotic cut-flowers viz; one in the autumn season and the other in the late winter/ spring season. The output of cut-flowers was both flori-spikes as well as the planting materials (bulbs, corms/ corm lets and cuttings). The productivity of flori-spikes and planting material varied depending upon the type of flowers, quality/ quantity of planting material as well as the management practices adopted by the flower growers.
7. The cost of cultivation varied considerably depending upon the planting material, overhead structures and expenditure on material inputs and labour. The total cost of cultivation per unit of land was maximum for Carnation followed by Oriental and Asiatic Lily and it was minimum for Gladiolus. The fixed cost accounted for more than 77 per cent of total cost in case of Gladiolus and as high as 94 per cent in case of Carnation, clearly showing that the overhead cost is the major ingredient in flowers’ cultivation. The total cost in terms of flori-spikes exhibited glaring differences for different cut-flowers mainly due to variation in plants density, branching capacity as well as fixed cost. In this way, the total cost of production per dozen of flori-spikes was maximum for Oriental Lily followed by Tulip and Asiatic Lily and was minimum in case of Carnation.
8. The maximum net returns were realized from the cultivation of Carnation under poly/ green house condition. Oriental Lily was found to be the next best cut-flower followed by Asiatic Lily. In terms of returns per dozen flori-spikes, it was observed that Oriental Lily and Asiatic Lily were highly lucrative due to remunerative prices in different markets.
9. The economic viability ascertained through different financial ratios and the break-even output clearly revealed that all the cut-flowers have sound economic feasibility. The input output ratio as well as capital output ratio were very impressive in case of Carnation, Asiatic Lily and Oriental Lily. The break-even output also revealed that the cut-flowers farming started turning profitable at the output level which was only one-fourth of the average productivity, thereby leaving a comfortable margin to the producers to earn substantial returns even at the existing technology level.
10. Notwithstanding, economic feasibility and high pay-off, the cut-flowers cultivation is not free from many inherent problems and constraints. Being non-conventional and recently introduced crop, the standardized production technology of cut-flowers is not available to the farmers. At present, there are few R&D institutions in the state doing limited research work on the standardization of package and practices for cut-flowers. Lack of cold storage facilities for planting materials, standardized and scientifically tested spray schedule for the control of pests and diseases, non availability of the quality planting material and lack of liberal funding for flori-business were pin-pointed major problems of the farmers in the production of cut-flowers.
11. The marketing of cut-flowers was found to be complex, sophisticated and more critical than production. As the timely supply of planting material at the very outset and remunerative sale of the output in the right form, place and time were so crucial that these may effect the entire process of flori- business.
12. In the initial stages, the planting material was imported mainly from Holand and distributed to the growers. It has been observed that there are five channels involving seed producing firms/ farms (in India and abroad), private traders / agents, DRDA, co-operative societies through which the planting material was routed to the cut-flower growers. Among these, the private traders/ agents and DRDA/ co-operative societies were the main distributors of planting material to the farmers. Some of the cut-flower growers in Himachal Pradesh were also producing planting material for sale and were found to supply the same either directly to other growers in the vicinity or selling the same to the co-operative societies/State Deptt. of Horticulture for its further distribution to the interested farmers. However, as yet, there was no standardized norms for the certification of the planting material.
13. It has been found that virtually entire produce of cut-flowers formed the marketable surplus as the retention of flowers for aesthetic/decorative purposes of gifts to friends was negligible. Only those spikes were retained that were having some deformities or otherwise and those which could not be marketed, and as such, the marketed surplus varied from 97-98 per cent of the total production,
14. The cut-flowers have different stages of handling before their sale to ultimate consumers. The cut-flowers were being assembled either at the farm level or at nearby co-operative society for grading and further market operations. Generally, the produce was graded into A, B, C and D grades, depending upon the number of florets/ buds and length of spikes. The graded flori-spikes were tied in a bunch, having 10-12 spikes which were then packed in a box. There was no spacilized packaging material, however, the farmers have discovered the use of empty tube light boxes for packing Gladiolus and lilies and the use of shoe/wool boxes for packing Tulip and Carnation. The packed box contained the markings of Variety, grades, date of packaging, name of the agent/farmer and trademark (if any). The packed bundle were transported to distant markets mainly through night buses, plying between the producing area and the markets.
15. The cut-flowers produced in different parts of Himachal Pradesh are being sold through different marketing channels to different markets. In all, there were six marketing channels in which, three functionaries mainly commission agent/wholesaler, registered companies/co-operatives and retailers were involved. More than half of the produce was routed through flower co-operatives/registered companies, while 37 per cent was directly sold to the commission agents/wholesalers. There were also some flower growers who were directly intouch with the hoteliers and supplying cut-flowers directly to them. Major part of all the cut-flowers, excluding Carnation was sold through co-operative societies, while Carnation was being sold directly to commission agents in the distant markets.
16. The major cut-flowers’ markets are in big cities and have been recently established, however, till now no primary market has come up in the producing area (Himachal Pradesh). The main cut-flowers’ markets are located in Delhi, Mumbai, Pune, Bangalore and Chandigarh, though few more markets at Ludhiana, Amritsar, Jallandhar and Pathankot are also coming up. The structure and composition of traders in these markets varied considerably and except Bangalore flower market, the other markets were not strictly regulated and no open auction of the flowers was conducted. In these markets many of the commission agents were also acting as the retailers to enhance their mark-up/margins. About 57 per cent of the total output of cut-flowers was sold in Delhi market. However, some growers were also sending their produce for sale to Chandigarh and Mumbai markets.
17. It has been found that the high margins charged by the traders widened the price-spread between the producers and consumers. The collective margins varied from 27 to more than 50 per cent that was much higher than the total marketing cost. The commission agents were charging around 15 per cent commission on the wholesale price, while retailers were piling up exorbitant margins. The oligopolistic/monopolistic tendencies of traders deprive the producers of their genuine share in the consumer’s rupee that was low ranging from 45 to 60 per cent.
18. The relative efficiency of different channels revealed that sale through co-operatives was more efficient as compared to the direct sale by the producers to commission agents as the cooperative societies could muster collective bargaining strength and the better prices per se. In terms of the choice of the market, Delhi was found to be better market for Gladiolus, while Mumbai was found to be more rewarding for Asiatic lilly.
19. It has been clearly observed that graded cut-flowers received premium prices in the major markets of the country. The differences in wholesale and retail prices of A and B grades was quite discernible. Similar, difference was visible in the wholesale and retail prices of B and C grades of cut-flowers. This gives a crystal clear message to the growers that they should use good planting materials and market the graded produce.
20. The cut-flower markets were found to be shaky and unstable in terms of the seasonal behaviour of wholesale prices. The very high variability in the wholesale price was recorded in Tulip followed by Gladiolus. However, seasonal indices of different flowers distinctly showed the comparative advantage for the cut-flower growers of Himachal Pradesh as the wholesale prices exhibited the rising tendencies in spring and autumn months when cut-flowers are marketed from Himachal Pradesh.
21. It has been clearly visualized that flower growers co-operative societies were doing appreciable job in streamlining the marketing of cut-flowers. The co-operative societies were facilitating the procurement and the distribution of planting materials. The co-operative societies are playing the key role in assembling, grading, packaging and forwarding the cut-flowers of its members. The society was also arranging the supply of crucial inputs like packing material to the growers that was not easily available in the common market.
22. The marketing system of cut-flowers was found to be in its infancy stage and was lacking in proper amenities and infrastructural facilities. Based upon the opinion survey, the farmers were facing many problems in marketing their produce. The main problems were instable prices, improper transportation facilities, malpractices and high market charges and lack of established regulated markets/open auction centres. The flower co-operative societies also reported delayed payments from commission agents that affected the financial performance of the society as well as the growers.
POLICY OPTIONS
The floriculture bears special significance for the hills in the light of new global trade policy because they have comparative advantage of climate that is conducive for the cultivation of varied types of cut-flowers round the year. As such, the cut-flowers can prove to be the best possible alternative for mountains, provided these are given due attention and policy support. Based on the findings of the survey, the following policy options have emerged out:
1. The flowers’ cultivation in the study area has been picked up mainly by the well-endowed families and not by the resource-poor marginal and small farmers. Therefore, efforts should be made to encourage these small stakeholders to patronize flower cultivation for enhancing their income and employment avenues. For this cause, some of the pre-requisites like, location and approach of farm, distribution of quality planting material, easy term loans from institutions and assured market outlets, need to be expedited, stream lined and strengthened.
2. During the survey it came to the surface that the flower growers were not aware of the appropriate scientific technology and management practices relating to flower cultivation, resulting in to over as well as under utilization of inputs, wrong selection and use of costly pesticides and chemicals, beside improper post-harvest handling and treatment of planting material (bulbs/corms/cuttings). In this regard, the R&D institutions should take suitable measures to standardize and spread technical-know –how through adequate field demonstrations and trials. These institutions should frame long-term strategies to screen and develop pest/disease resistant varieties of cut-flowers suitable for hill areas.
3. The flori-business has been found to be highly capital intensive and risky. It may not be possible for an ordinary farmer to bear the risk of crop failure that may lead him to complete ruin/economic disaster. To warrant such type of situations, the flori-business needs to be insured.
4. The floriculture avocation in the state is yet at its infancy stage and there is dearth of desired infrastructure both at the farm as well as institutional level. Hence, it is emphasized that the subsidies on poly/green-house, planting materials and specialized equipments should continue. Further, liberal funding is also required to strengthen R & D programmes in the institutions like State Agricultural University, State Department of Horticulture, NGOs, etc.
5. The cut-flowers’ marketing like other commercial crops is more critical than the production itself. This is mainly because of the fact that market decides the profitability and economic sustainability per se of the product and floriculture is no exception. Like scanty and scattered production, the cut-flowers’ marketing is also unorganized and under developed. The high price-spread on account of exorbitant margins, no specilized packaging due to lack of packing material, no open auction for sale, less number of flori-traders in the market, few flori-markets and no existence of primary market in the producing area amply speak of the deplorable state of market/marketing system. In this backdrop, it is suggested that flower marketing system should be brought under the ambit of regulation and control. This requires the establishment of producers’ co-operatives, primary markets in the producing area, wholesale markets in the cities and terminal markets for export of flori-products. Further, there is also a dire need to establish export promotion units (EPU) in Himachal Pradesh to tap the export potential of different agricultural commodities including flowers.
6. The flower growers’ co-operative societies in the state need to be strengthened both financially as well as functionally so that these could operate in the remote and far-flung areas to expand flowers’ cultivation and to safeguard the interests of flower-growers.
_______________________________________________________________________________________________
in Tamil Nadu.
Principal Investigator : Dr. K. Gajendran, Ph.D.
Market survey on
availability and acceptability of Duck Eggs
and Meat in Tamil Nadu.
SUMMARY
In
Hence, the study on, “Market survey on availability and acceptability of duck eggs and meat in Tamil Nadu” has been carried out systematically at Livestock Research Station, Kattupakkam, Tamil Nadu with the following objectives.
1. To assess the potentiality of duck production in Tamil Nadu.
2. To survey the existing market structure and consumer acceptance for duck egg and meat;
3. To identify the constraints and to suggest the guidelines for efficient marketing of duck
products.
The duck population in Tamil Nadu showed an increasing trend from 2,19,391 in 1951 to 4,91,422 in 1994, with a compound growth rate of 1.89 per cent per annum. However, this positive trend was not seen throughout the reference period (1951-1994) as there were negative trends during 1956-61, 1977-82 and 1982-89 intercensus periods.
Among various districts of the state, Chengalpattu,
Of the districts which registered a cumulative positive growth rate, South Arcot, North Arcot , Chengalpattu and Coimbatore districts have registered a growth rate over the state average with 4.25, 2.88, 2.43 and 2.31 per cent, respectively. The remaining districts have registered only a marginal growth rate.
As the duck farmers are rural poor, they borrow from duck egg vendors who are referred as ‘traders’ for the purchase of ducklings, feeding and other maintenance of ducks and they repay the loan in the form of eggs and spent ducks.
The flock
size is generally estimated in dozens. The common unit size is 25 to 30 dozens
maintained by a well trained team of two or three family members under free
range system. It was noticed that the most of the farmers had flock size of
around 200-400 (16-32 dozens) with the drake duck ratio of 1:12.
Majority of
the duck farmers in Tamil Nadu maintains only 'desi'/ non-descript ducks with
wide phenotypic variations. All the management practices are of traditional
type with no artificial method of incubation or brooding. It is also found that few number of duck
flocks are reared by combining other agricultural or fisheries enterprises.
The common
type of duck farming followed in Tamil Nadu is nomadic pattern in which the
birds are migrated to different areas of the state (even to neighbouring states) according to the availability of
foraging facilities.
The feeding
of ducks is mainly on post-harvested paddy fields for grains and on ponds and
channels for snails and fish. In the lean (summer) season, they have to be
handfed with grains or husks. This is the major cost incurred by the farmers
when there is failure of monsoon.
The egg
production is claimed by many farmers to be about 140-150 eggs per duck per
year and the flocks are maintained for 2-3 years of production and then
disposed of for meat purpose.
The most
limiting factor of production was found to be the incidence of diseases in
ducks, particularly the fatal disease, duck plague. The farmers have
experienced even 90-100 per cent of mortality in their flocks due to the
outbreak of duck plague.
Considering
the appearance of atomistically competitive seller and buyer groups, product
differentiation and the degree of market intelligence, duck egg market in Tamil Nadu is considered as ‘Pure
competitive market’.
In the
study, five channels were identified through which the duck eggs were moved
from the producer (farmer) to the ultimate consumer (including consumers in
Kerala) as follows:
Of the five channels, the quantum of eggs transacted through first channel was high while through fifth channel was very low or negligible.
Price spread was calculated as it serves as an index of physical efficiency of marketing. It was observed that price spread was higher for the duck eggs marketed from Chengalpattu district in the first four channels (56.35 in first channel, 50.80 in second channel,51.65 in third channel and 52.35 in fourth channel). Price spread was lower for the duck eggs marketed from Kanyakumari district in first (50.62) and second (44.10) channels and from Tirunelveli district in third (45.90) and fourth (44.65) channels.
Of the total marketing cost, transportation cost
accounts for a larger proportion when compared to other costs involved in all
these districts under study. The producers’ share of consumer rupee ranged from
70.63 in Chengalpattu district to 73.23
in Kanyakumari district in first channel, from 72.73 in Chengalpattu district
to 75.85 in Kanyakumari district in
second channel, from 73.05 in Chengalpattu
district to 75.51 in Tirunelveli district in third channel and from 72.71 in Chengalpattu district to 75.21
in Tirunelveli and Kanyakumari districts in fourth channel.
The volume
of eggs transacted through fifth channel was meagre or negligible. As the duck eggs were directly sold to
consumers at farm gate, there were no costs involved in marketing.
The analysis of price spread through various
channels for duck egg marketing indicated that Mean producers’ share of
consumer rupee in first four important channels were 71.97, 74.51, 74.28 and
74.05, respectively. Hence, it can be
concluded that marketing efficiency is more in second channel when compared to
other channels studied.
Three channels were identified in marketing of duck meat. They are as follows;
Channel II
Producer - Retailer - Consumer
Channel III Producer - Consumer
Of the
three channels, Channel I handled large quantum of duck meat while Channel III
transacted a negligible or meagre quantity.
It was
observed that price spread in first channel was higher for ducks marketed from
Chengalpattu district (Rs. 12.50/2 Kg of live weight) and lower for ducks
marketed from Tirunelveli district (Rs. 11.25/2 Kg of live weight). The
producers’ share of consumer rupee ranged from 76.19 in Chengalpattu district
to 78.26 in Tirunelveli district.
The gross price spread in second
channel was higher for ducks marketed from Chengalpattu and South Arcot
districts (Rs. 9.55/2 Kg live weight) and lower for ducks marketed from
Thanjavur, Tirunelveli and Kanyakumari districts (Rs. 8.25/2 Kg live weight).
The producers’ share of consumer rupee varied from 81.47 in Chengalpattu
district to 83.74 in Thanjavur district.
The volume of spent ducks marketed through third channel is lower when
compared to other channels.
The
analysis of price spread for duck meat revealed that Mean producers’ share of
consumer rupee was 77.18 in first
channel and 82.77 in second channel.
Hence, it can be concluded that marketing efficiency is more in second channel
than the first.
The results of catering specialists and
other non-vegetarians revealed no significant difference in juiciness and
flavour for both desi duck and desi chicken meat whereas a highly significant
difference was noticed in case of tenderness between desi duck and desi chicken
meat. But, veterinarians revealed existence of significant difference between
desi duck and chicken meat in tenderness
and flavour whereas no significant difference was noticed in case of juiciness.
The external egg quality parameters such as egg weight, cleanliness and shape index; the internal egg quality traits such as albumen index, Haugh unit, total solids in albumen, yolk index, yolk colour and shell thickness and the functional property based on albumen foam volume were taken as criteria to assess the quality of duck and chicken eggs marketed in Chengalpattu.
The duck and chicken eggs marketed in Chengalpattu had an average weight of 70.13 g and 56.10 g respectively during the experimental period and the eggs available during winter were heavier compared to those in summer.
Among the eggs marketed, more clean eggs were noticed in chicken eggs than in duck eggs. Most of the chicken eggs were under the grades AA (47.3%) and A (45.77%) while most of duck eggs were under A (50.22% and B (38.33%) grades. The rest of duck eggs were AA (7.17%) and C (4.28%) whereas the rest of chicken eggs were B (5.85%) and C (1.08%) grades during overall experimental period. More clean eggs are noticed during summer than winter irrespective of species.
Shape index of duck egg (73.93) and chicken egg (73.97) did not show any difference and they were not influenced by season.
The duck eggs had average albumen index of 0.0788 and chicken eggs 0.0308. Chicken eggs marketed in Chengalpattu had poor albumen quality than duck eggs.
Duck eggs had an average Haugh unit value of 80.81 and it was 61.51 for chicken eggs. The duck eggs had higher Haugh unit value compared to that of chicken eggs irrespective of season.
The albumen of duck egg had an average total solids of 14.22% and it was 13.25% in chicken egg albumen. Duck egg had slightly higher percentage of total solids in albumen than chicken egg irrespective of season.
Duck and chicken eggs had an average yolk index of 0.368 and 0.271 respectively. The duck egg had better yolk quality than chicken egg marketed. Yolk colour was much deep yellow in duck egg when compared to chicken eggs and it was much pronounced in winter than in summer.
The shell thickness and shell membrane were thicker in duck eggs than chicken eggs irrespective of season and the thickness of shell membrane was more pronounced during winter than summer irrespective of species. Duck egg gave higher albumen foam volume than chicken egg.
Among the problems faced by producers in marketing of duck eggs, poor consumer acceptability ranked first with the mean score of 76.25 followed by wide price fluctuations, absence of organised marketing system, absence of price fixing agency and low price in relation to chicken egg.
The duck farmers considered “exploitation by middlemen” as the sixth major constraint followed by poor information about market trends, poor transport facility, long distance from market centre, scattered distribution of consumers, absence of storage facilities and the difficulties in preparing products. The first major problem faced by traders was poor consumer acceptability followed by wide price fluctuations, long distance from market centre, absence of storage facilities, scattered distribution of consumers and lastly poor transport facility. The most common problem faced by wholesalers was also poor consumer acceptability followed by absence of storage facilities, wide price fluctuations, poor transport facility, scattered distribution of consumers and long distance from market centre.
The retailers listed only four constraints, of which poor consumer acceptability ranked first followed by wide price fluctuations, long distance from market centre and scattered distribution of consumers.
Among
the problems faced by producers in marketing of duck meat, poor consumer
acceptability ranked first, as that of duck eggs, with the mean score of 75.50 followed by poor
transport facility, long distance from market centre, poor information about
market trends, exploitation by too many middlemen, low price in relation to
chicken meat, difficulties in preparing products, scattered distribution of
consumers and absence of price fixing agency.
The duck farmers considered “low price in relation to chicken meat” as the sixth problem followed by difficulties in preparing products, scattered distribution of consumers and absence of price fixing agency.
POLICY IMPLICATIONS/RECOMMENDATIONS
1. It is recommended that either a separate committee may be formed for the price fixation of duck eggs or National Egg Co-ordination Committee (NECC) itself may take up the duty, in addition to price fixation of chicken eggs based on demand and supply positions and prevailing market price of other regional NECC centres so as to avoid huge fluctuation of price existing in duck eggs.
3. To avoid the exploitation by middlemen, it is recommended that the duck farmers should be encouraged to sell their products directly to the consumers by forming a co-operative society, exclusively for this purpose.
4. The Government may set up sufficient cold storage plants at important duck production centres and hire them for farmers at nominal rent, so as to store their products prior to marketing. This will avoid spoilage of this perishable commodity, thereby increasing the profit.
5. Since
most of the duck farmers are poor agricultural landless labourers they do not
have sufficient amount of money for the purchase of ducklings, feed and
maintenance, for which they get loan from duck egg vendors called
“traders”. So, it is recommended that
Nationalised Banks should come forward to give loan liberally to the needy
farmers at minimal interest and help them increase their income.
6. During
rainy season, the open type of housing ducks is inconvenient to the birds and
the farmers lose some birds and during flood, they lose their entire
stock. The duck farmers are not aware of
the available insurance facilities. Hence, they should be motivated to insure
their duck flocks against natural calamities, fire, diseases, etc.
7. A surveillance and
monitoring unit may be set up to identify and eliminate the diseases prevalent
among the ducks to improve their health status and production efficiency.
8. It is necessary to set up a poultry
marketing cell under the Directorate of Animal Husbandry to collect and compile
information on marketing of poultry (including duck), poultry products and
by-products for designing research and developmental activities.
9.The migration of duck flocks by the farmers hinders the education of their children. Hence, it is recommended that the Government intervene in this matter and make arrangements for uninterrupted education for their children.
10. Since transportation
cost forms the major part of the price spread, monetary
grant from government may be given to the producers/market intermediaries
functioning
in the marketing channel to increase their income.
________________________________________________________________________________________________
Project Topic : The study of Marketing Problems of Agricultural Produce of
Sundarban Region in West Bengal
The study of Marketing Problems of Agricultural Produce of
Sundarban Region in West Bengal
SALIENT FINDINGS AND RECOMMENDATIONS
In this section of this chapter, the salient findings of the present study on problems of agricultural marketing in Sundarban region in West Bengal have been presented in summary form.
The Sundarban, a cluster of 102 islands, because of the peculiar geographical location and because of smallness of the islands, are separated from the mainland as well as from each island. This separation from mainland on the one hand coupled with dense forest on the other, has made the area practically inaccessible preventing the required development in the cultural, social and economic fields.
Agriculture is the primary and main occupation of the people in 54 out of 102 islands where human settlement exists. Land is fertile but mono-cropped. 89 percent of 3.2 million people are dependent on agriculture while remaining 11 percent people earn their livelihood from fishery and forestry. Average yield rate is also low in comparison to other parts of the country.
The people in 54 islands where human habitation has taken place, face many problems. Their core problems, generated from the geographical locational disadvantages are :-
1) non- availability of sweet water ;
2) frequent breaches of 3500 kms embankments, here and there, causing inundation to the crop fields with saline water and converting the fertile land of the islands into swamps; and
3) non-availability of natural drainage system causing logging of huge water in the islands.
4) Moreover, the entire area is prone to frequent sea – storm and depression originating from Bay of Bengal.
Due to of inaccessibility, this region lags in many respects far behind the mainland of which agri-marketing and transportation are very important.
Transportation network is extremely undeveloped in the entire area – roadway, waterway railway and airway are conspicuous by their absence. To reach Gosaba from Calcutta, a distance of only 75 km., one takes 8-10 hours despite having Railway upto Canning covering a distance of 46 km. Within the islands, kutcha and pucca means of transportation are available where buses, matadors, vans, auto rickshaw and rickshaw etc. ply infrequently in comparatively bigger islands such as Sagar, Namkhana, Kakdwip while in comparatively smaller islands cycle rickshaw and rickshaw van are the only dependable modes of transportation both for passengers and agri-produce.
In between the islands and the mainland, waterway is the only means with boats both mechanized and non-mechanized in most of the cases, launches in some cases and big vessels in at least one case, being currently used for transporting passengers as well as agri-produce.
However, due to poor quality of village – market linkages in almost all the islands, combined with prevalence of tidal rivers, infrequent movement of road and water transports have made the transportation a daunting problem in Sundarban area. In the waterway system, the condition of jetties is very bad. Most of the jetties, which are used by thousands of passengers and others for loading and unloading of agri-produce and other goods for crossing the rivers and rivulets are at present dangerous in the entire Sundarban area except for few jetties such as Kakdwip Lot No. 8, Sonakhali, Hasnabad etc.
The tidal rivers carry huge volume of sediments every year. Because of existence of high embankments, the sediments settle on the riverbeds. Therefore, the level of the river-beds are raised every year. Two-fold problems are thus, created – (1) problem of navigation, and (2) problem of natural drainage.
In the absence of regular dredging, the depth of river-bed declines causing insufficiency of water during the hours of low tide for navigation. The rivers, therefore, become navigable only during the period of high tide which rotates according to natural law causing difficulties to the market users to reach market in time and sell their produce.
Marketing of agricultural produce is done through 230 primary, sub feeder and wholesale markets located in different police stations of Sundarban region. Apart from the general problems stated earlier, the agricultural marketing also suffers in the region from several problems. These problems may be divided into following groups-
a) Market-yard related problem.
b) Marketing problem.
c) Infrastructural problem.
d) Pricing problem resulting in distress sale.
e) Transportation problem.
f) Problem of market regulation.
In Sundarban region, although there are more than two hundred primary / sub / feeder and secondary markets, but well-defined market yard for transaction of agri-produce exists in very few markets. In most of primary markets as well as secondary markets under study no well defined market yard exist. In two secondary markets and in few primary markets although separate market yards are found to exist, but these are very inadequate in relation to quantity of arrival of various agri-produce. In all the markets, therefore, transaction of agri-produce takes place on either side of the roads passing through the market. This causes inconvenience to all the market users including traffic movement. Thus, buying and selling in Sundarban markets are practically done in a most unorganized manner over a widespread area, on either side of road, or at gollas or shops located scatteredly at different parts of the market. Needless to say, the growers are the worst sufferers in this system.
Marketing is the process of physical transfer of ownership of the produce from producer to consumers in exchange of money. Thus, every producer needs a person who will agree to buy his produce. The latter type of persons are known in various terms such as traders or market functionaries or middlemen or intermediaries or direct consumers. Immediately after harvest when arrival in the markets increases sharply, the growers do not find a buyer of their produce in all the markets in Sundarban because of limited number of local market functionaries and non-participation of outsider intermediaries known as flying intermediaries in large scale mainly because of inaccessibility of Sundarban due to its locational disadvantages and transportation problems.
As a result, the growers have to depend totally on the local intermediaries. The markets fail to absorb the entire arrival at competitive price or remunerative price. The growers, therefore, suffer most in the process.
Various types of infrastructural facilities are required for marketing of agri-produce. But, in Sundarban markets, marketing infrastructures are practically not available both at the primary and secondary market level for the benefit and direct use of growers. Non-availability of basic infrastructural supports adds more to the suffering of the growers in the existing system. For want of processing and storage facilities, large volume of chillies and watermelon are wasted every year.
Among the Sundarban products, honey and dry chillies have some export potentiality. But, lack of required infrastructure for storing, processing, packaging etc. at the production point and want of proper channels for exporting the products to abroad stand as stumbling block to the export of these agri-produce as expressed by many traders, farmers and government officials in the course of discussion during the survey.
Poor transportation network between village ( farm gate ) and primary / secondary market, coupled with non-availability of sufficient modes of transport both in road and water, prevent the farm-producers from attending the hat / primary / secondary market. This alone compels the farmers to sell their produce within the village at a lower price.
Immediately after harvest, arrival in the market increases sharply and suddenly. The market mechanism fails to absorb the entire quantity of arrival at competitive price. As a result price rules high immediately before harvest but drops down suddenly and sharply, immediately after in all markets in Sundarban and thereby causes large scale distress selling of agri-produce by the farmers. Price instability has become a prevailing feature of agri-marketing system in the Sundarban. The Sundarban Development Board took a special venture to boost up production of dry chillies by providing special incentives to the farmers. The production increased significantly. But, prices dropped down. The Board could not help the farmers to get higher price, the producers suffered. The programme received a set back. Thus, lack of marketing facilities emerges as a primary constraint to development of agriculture in Sundarban region. As observed, in all the markets in Sundarban, no parastatal marketing organization was found to operate during the period of study. In fact, marketing parastatals including the Food Corporation of India did not operate in Sundarban markets. The presence of co-operative marketing societies for price stabilization is also very negligible. By purchasing from 0.31 percent of farmers, the cooperative marketing societies can not influence price level. As a result, price instability prevails and distress sale continues. It has become a regular feature of Sundarban marketing system. For price stabilization of different crops and prevention of distress sale, the intervention of various marketing organization/institutions, is an urgent need.
It has already been pointed out that no market in Sundarban region has so far been brought under market regulation programme. The growers and the traders are not aware of the regulated market and its features. In the course of the survey, it has been observed that both the growers and traders preferred to have regulated markets in Sundarban area under the West Bengal Agricultural Produce Marketing (Regulation) Act of 1972.
The problems of agricultural marketing at Sundarban region in West Bengal as observed in the course of the study during the period 1st August, 1996 to 31st July, 1997 have been elaborately discussed in different chapters, sections and paragraphs of the report. These are more specifically and precisely stated in the aforesaid section of this chapter. In this section, few recommendations are made to overcome the problems of agricultural marketing only without making any recommendation for solution of general problems of Sundarban region.
The most crucial problem in the agricultural markets of Sundarban region is non existence of a well – defined market yard for transaction of various types of agri-produce. Existence of a well-defined market yard is the pre-condition of market development programme. It is therefore, recommended that the well-defined market yard should be established at convenient places in each secondary and primary market of Sundarban region. Where there is no market yard at all new yards should be established in a planned manner befitting the needs of market participants including the traders, growers and others involved in agri-marketing process directly or indirectly. Where market yard is available at present, the existing yard should be developed and re-organized in a planned manner to fulfill the needs of all categories of market-users.
Details in this context, such as, suitable location of the yard, area of the yard, designing and planning of the yard, product coverage, area coverage (hinterland) inflow and outflow network including the financial involvement etc. are to be ascertained by undertaking separate study for each market at least for all secondary and important primary markets of Sundarban region.
In every transaction, there must be a seller who will offer something and there must be a buyer who will accept the offer on some terms of exchange. In most of the markets in Sundarban region, immediately after harvest, arrival in the market increases sharply alongwith the grower sellers. But, number of buyers do not increase proportionately. Only the local buyers are available in the markets, the number of outside-traders or flying intermediaries visiting the markets is very poor. This many-a-time causes glut in the market.
To remove the glut in the market, it is recommended that more and more outside traders should be attracted to Sundarban markets by making various conducive arrangements, creation of various marketing facilities, amenities and infrastructural support. Marketing finance should be arranged for the local intermediaries through organized banking sector on easy terms and conditions to increase the purchasing power of the local traders.
The marketing activities in the market have a direct functional relationship with availability of marketing infrastructures in the market. In Sundarban region most of the agricultural produce markets lack various types of infrastructural support which are required to promote marketing activities at different stages of marketing operation.
The study, therefore, most specifically recommends for creation of such infrastructural facilities within the market yards which would promote fair trade (depending on the need of the market), although nature and extent of which may vary from market to market, area to area, crop to crop and user to user.
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Project Topic : An Analytical Study on the Practices and Problems of Marketing
Flowers in North Arcot Ambedkar(Vellore) Distt.
FINDINGS
1. PRODUCTION – CULTIVATION OF FLOWER IN N.A.A. DT
The data available with the Horticulture Office, Vellore shows that 2539 hectares of land are under flower cultivation in North Arcot Ambedkar District. However, the block-wise data provided by the office shows a total of 1161 hectares of land is under flower cultivation. The annual record of flower production in this district covering the 20 blocks is about 5652 tons.
Intensive cultivation and production was seen in Annaicut block. Here, 190 hectares of land was under flower cultivation with a production record of 950 tonnes. Here two flower extraction plant were in operation. The cultivation and production of flower deferred from are block to another depending on the agro-climatic factors.
The climate of the district is very favourable for jasmine and so the season is extended by 2 months. Rose is cultivated in certain blocks of the district. In all, thirteen varieties of flowers were cultivated. Malligai, Mullai and Jathimalli were more predominantly cultivated.
Majority of the cultivators (49.8%) were however practicing floriculture in less than 0.5 acres of land. Only 15.6% respondents had more than 1 acre under flower cultivation.
Certain responses which had if clauses attached were
· It is profitable if family members are involved
· It is profitable if government provides loan facilities
· Flower cultivation can be increased if transport facilities to other states are provided.
2. NATURE OF FLOWER BUSINESS AND MARKET SETUP
Flower business in the district is not seasonal. The study revealed that 85.8% respondents carried on the trade throughout the year. In fact, of the thirteen varieties of flowers grown in the district, six varieties were cultivated throughout the years.
Flowers were moved from the producer to the consumer through intermediaries or middlemen. The merchant-retailers, agents and commission-agents operate in the same locality. The cultivators can choose the middlemen to whom they would sell their produce. However, 80.6% respondents sold their produce to the same merchant.
3. PROCUREMENT AND SALES OF FLOWER
The cultivators brought the flowers from their farms to the merchants establishment.
Majority of the cultivators (40.2%) brought flowers from a distance of 6-10 kms. There were also respondents coming from places beyond 15 kms. The mean, median and mode values were recorded as 8.88, 8.33 and 8.14 respectively. This showed that the distribution was nearly symmetrical.
The farmers sold the flowers to different markets on various grounds. They largely sold on a monthly contract basis to the merchant / commission agents as stated by 63.2% respondents. This was made possible by advancing money or other inputs, motivating the cultivator to sell his produce to a particular merchant.
Further, no contract sales was provided for street vendors. Some cultivators sold directly to city markets.
Similarly, the merchants also had their own pattern of sales. However, only 12.5% merchants sold on a monthly contract basis. Long-term contracts were not practiced by the merchants because of price fluctuation. Also 60% of them did not sell to bulk purchasers.
4. THE PRACTICE OF GEOGRAPHIC SEGMENTATION
The practice of geographic segmentation enables the seller to carefully study the regions in which they would prefer to operate and select those where they have comparative advantage. The study revealed that market for flower was geographically segmented into street market, local market, town market and city market.
Majority of the cultivators (57.8%) sold their produce in the local market while 33% sold them to merchants in town markets. The markets where the merchants in turn sold their flowers in order of the preference were city market, town market, local market and last the street market. Obviously the merchants sold the purchased flowers in markets situated in different localities. Flowers command higher prices in towns and cities than at their places of production because of the increased utility and consumption capacity.
Though some flowers were grown throughout the year, majority of the plucked flowers such as mullai, malli and jathimalli were seasonal. Flowers like rose were available throughout the year but peak seasons existed. However, the demand for flower was “high” both during season and non-season. Application of probability theory also revealed that demand and season were independent events at stated by the respondents.
During season the supply of flowers increases. Majority of the merchants and cultivators stated that during season demand increased in all the markets. The demand change expressed by the respondents were subjected to Karl Pearson’s coefficient of correlation. A positive correlation of magnitude 0.9 was observed.
During off-season when production of flowers reduced, the merchants were forced to differentiate the market. Accordingly, they preferred to serve the city market followed by the local market. In this way they tried to retain the consumers of the local market while serving the city market for higher returns.
5. BEHAVIOURISTIC SEGMENTATION
Flowers are essential for all rituals in the society. It is also required for all functions and festivals in the family. Fridays being special days of worship for a large segment of our population, flowers were always in demand every week. The study however revealed that the change in demand for flower became “high” on Thursday itself. This was stated by 76.4% cultivators. On Friday the demand remained at a “moderate” level.
The majority (70.4%) of the cultivators were of the view that demand change on festival days were “high”. Also, while 59% cultivators said that demand change on festival days were “high” 25.4% respondents stated that it was “moderate”.
Such understanding of behaviour variables enabled the merchants to “often” receive an increased supply of flowers on those specific days.
The factors leading to prioritise markets were ranked by the merchants as demand, availability, price, time and transport facilities. The cultivators had a different priority. Their order of importance were availability, time, transport facilities, demand and price. It became evident that these factors have been viewed differently by the merchants and cultivators. Their views when subjected to Spearman”s rank correlation showed a positive correlation with a magnitude of 0.3714.
6. PRICE DECISION AND FACTORS INFLUENCING PRICE
Price is always an important consideration to both the buyer and the seller. In rural marketing, pricing is based on the concepts of costs, market position, competition and necessary profit. Through bargaining the buyer and seller arrive at an acceptable price. This study however revealed that price decisions were largely fixed by merchant association in towns and cities. This was expressed by 86.67% merchants and 83.20% cultivators.
Majority of the cultivators said that the cost of production was covered by the price paid by the merchants. While 43.8% said that cost plus pricing was practiced, 39.6% cultivators expressed that it was “sometimes” covered.
The merchants however practiced two major price modification strategies 1. Geographic pricing-different price for different localities and 2. Discriminatory pricing-different price for different customers. Only 47.50% merchants said that they practiced geographic pricing. But 74.17% merchants practiced discriminatory pricing. This was agreed by 55.8% cultivators. However, they were of the opinion that price difference from one merchant to another was only “moderate”.
The price of flowers also varied from one market to another. Price differentials ranged from Rs. 2/- to Rs. 5/- per kg. It was also observed that the price increase progressed from the street market to the city market. As per their opinion majority of the merchants got more than Rs. 5/- per kg in the town and city markets while they got Rs. 3-4 increase in the local market and Rs. 2-3 increase in the street market.
The factors that influenced price was also studied. As stated by 67% of merchants quality of flowers was an important factor influencing price. But majority of the cultivators (66.4%) said that quality did not influence price because the time lag between plucking and sales was so minimum that flower cannot deteriorate. However, 79.2% of the cultivators stated “time” to be an important factor influencing price. If consignments arrived late it leads to wastage and rejects.
The price fluctuation for flowers was very frequent. According to 44.17% merchants and 71.2% cultivators price fluctuation was “moderate” from one day to another. However, price fluctuation from season to non-season was considered to be “high” by 55.83% merchants and 45.6% cultivators. The major reasons were due to the auspicious days followed by the demand and supply factors.
The market forces were operating so heavily that 63.33% of the merchants felt that price fluctuations cannot be controlled. However majority of the cultivators (55.6%) felt that price changes were incorporated in the procurement price.
The information on the current market prices were available to 77.4% of the cultivators through local merchants while others received it from merchants in town markets. The merchants (63.33%) got the information from their associations in town markets. About 36.67% merchants got the information from city market. These merchants, though they were in villages and towns they frequently contacted their association over telephone and collected the current market price.
7. MODE OF TRANSPORT
Flowers being perishable, they had to be moved at the quickest speed to enhance its value. At the same time, the choice of vehicle to transport the flowers will depend on its capacity to render its services at the lowest cost, speed and safety of goods. Merchants choice of transport depended on the markets they served. 86.67% merchants used bus services to transport flowers to city market while 13.33% merchants hired vans. Majority of the merchants (77.5%) also used bus services to reach the town market while 22.5% used two-wheelers.
The majority of the cultivators (57.2%) however used their bicycles to transport their produce to the merchants. Also, 25.6% respondents went by walk. The use of motor vehicles were minimum.
The cultivator, in order to reach the merchant in time began the plucking activities as early as 5:00 a.m. and completed the task before 9:00 a.m. In the off-season period this was delayed by an hour or so. Timely arrival of flowers enabled the merchant to speed the transport of flowers to different markets. The farther the market the earlier was transport activities completed.
Packaging was given importance by the merchants to maintain the quality of flowers. Wet jute bags were considered ideal to prolong the shelf life of the plucked flowers. However, no chemicals were used to prolong the shelf life of flowers.
The delay in transporting flowers created problems in the market. According to 71.67% merchants, late arrivals were accepted but price was reduced. This was also expressed by 91.2% cultivators who brought their produce to the merchants. When late arrival of flowers were rejected usually nothing could be done, though some tried to sell them in the street market and local market.
The loss of income due to late arrivals were also studied. In the case of flowers with short shelf-life 92.97% cultivators said that the loss of income was 25%. It was the same in the case of long shelf-life flowers as stated by 78.5% cultivators. The merchants opinion differed because they incurred additional cost in handling and transporting the flowers. The majority of merchants lost 50% income on both short and long shelf-life flowers. Some also expressed 75% loss due to late arrivals of flowers.
The transport arrangement was however made by 78.33% of the merchants. Only 14.17% merchants said that it was made by the agent / wholesaler. Majority of the cultivators (86.4%) also had to make their own arrangements to transport their produce to the merchants establishment.
8. PROBLEMS OF FLORICULTURE
1. Availability of labour :
In floriculture, family labour was mostly engaged. But during plucking season additional hands were employed in large numbers. Both adults and children were employed for plucking though children performed better due to good dexterity. Yet cultivators expressed that during peak season labour becomes scarce resulting in wastage of flowers.
In floriculture and trade funds are necessary for both the cultivators and the merchants for carrying out the marketing functions. The farmer forms the first link in the marketing process and is weak financially. About 70.6% cultivators took advance payments in lieu of flowers to carry on their cultivation. Also 88.33% merchants said that they used their own funds, supplementing when necessary, by borrowing from friends, relatives and chit funds. Hence, 88.33% merchants and 85.4% cultivators said that funds were not sufficiently available. They also expressed that the scale of operation would increase if institutional finance was made available.
In floriculture and its trade wastage was stated to be “moderate” and “low” by 63.34% merchants and 60.4% cultivators respectively.
The major cause of wastage was transport as expressed by 43.34% merchants and rain as stated by 72.4% cultivators, also 35.83% merchants found rain to be a cause for wastage. The second major reason for wastage was labour shortage as expressed by 22.4% cultivators. Hence, these factors only “sometimes” caused wastage.
9. PROMOTION OF FLORICULTURE
Floriculture is a developing economic activity. Employment of promotional tools are important in order to stimulate the cultivator and gain effectiveness in marketing the flowers. The study revealed that there was no government scheme specifically for floriculture. Therefore, the flower business was promoted by merchants themselves.
As much as 76.67% of merchants made advance payments and 74% cultivators have stated to have availed the facility. The study revealed that 15% merchants provided seedlings while 13.2% cultivators have availed the facilities. However only 13.33% merchants had their own nurseries. Also 34.8% cultivators had their own nurseries as they were important for quality planting materials.
The study also revealed that 0.4% cultivators had taken loan from LDB and used it for flower cultivation though there was no specific scheme for floriculture. They expected financial support from government by means of loan (76.6%) and subsidy (62.4%). All the merchants also expressed that financial facilities from government was required as they usually bore the burnt of making finance for marketing activities.
The merchants also expected the government to provide special public transport (56.67%), transit accommodation (30%) and insurance coverage (19.17%).
10. SOCIO-ECONOMIC CONDITIONS OF MERCHANTS AND CULTIVATORS
The study revealed that majority of the respondents (34% cultivators and 34.17% merchants) were middle aged belonging to 31-40 years. There were also 25% cultivators and 24.16% merchants belonging to the age group 41-50 years.
Majority of cultivators (57.2%) were relatively new entrants having less than 5 years experience while 27.4% of them had 6-10 years experience in flower cultivation. Also 40% merchants had less than 10 years experience while 26.67% of them had 10-15 years experience in flower trade.
The literary rate among the cultivators was 85.2% and was higher among the merchants (88.33%). The respondents who had completed degree were 6.8% cultivators and 3.33% merchants. Majority of the merchants (38.33%) had completed primary education while majority of cultivators (26.4%) had completed secondary education.
The participation in any pursuit increases with income. Majority of the cultivators (38.8%) earned Rs.1000-3000/- per month while majority of merchants 32.5% earned between Rs.5000-7000/- per month.
The study also revealed a shift in the occupational pattern. Only for 8.6% cultivators, floriculture was a traditional occupation. About 33.8% cultivators were traditionally practicing agriculture. The primary occupation of 77.8% cultivators was agriculture and floriculture was a secondary occupation to majority of them.
The study revealed that flower business was traditionally practiced by 26.67% of the merchants. Agriculture was the secondary occupation for 47.5% merchants while 29.27% had petty businesses including money lending.
The land holding pattern showed that 62.2% cultivators were small and marginal farmers. While the study revealed 4.8% landless farmers, there were respondents having more than 15 acres. However, flowers were cultivated in a small scale only. The merchants felt that lack of finance, lack of govt. support, water scarcity and labour shortage were the major problem for not bringing more land under flower cultivation.
11. PROSPECTS OF FLORICULTURE
Floriculture was viewed by the respondents to be a growing field because the cultivation of flowers had increased, income was regular and good, encouragement from merchants was good, job opportunities had increased and it was found to be a profitable around the year. Hence 88.33% cultivators and 92.4% merchants were interested to continue this occupation. Already 79.4% cultivators and 85% merchants had trained their children in this field.
Floriculture is fast developing into an important economic activity. The world-wide demand for flowers and flower products is also increasing due to the GDP increase in many countries. Though, India’s participation in the world trade is not significant, she has unlimited opportunities created by the global trade deficit and the liberal policies of the country. The producer and the country should stand to gain in the process of developing this economic pursuit as also the consumer. The following suggestions are made with these in mind.
1. A micro-level survey on cultivation and production of flowers is necessary to design a master plan for floriculture development in this district which is otherwise backward. This will help in (1) promoting intensive cultivation of flowers and (2) develop location – specific flowers belts (3) raising the socio-economic condition of flower cultivators.
The study reveals that different flowers are grown in different blocks of the district because of the diverse agro-climatic conditions prevailing within the district. Further, the climate is said to be most favourable for jasmine flowers that the season for jasmine is extended by two months.
The study also reveals the existence of different estimates for the area under flower cultivation in the district. Using the highest figure of 2539 hectares against APEDA 1981 figure for the state of Tamil Nadu, the district enjoys 30.25% share in the cultivation of flower in Tamil Nadu. Hence the potentials of this district should be tapped further.
2. A regulated market for flowers may be established. The regulated market can provide cold storage facilities, chemical processing unit and auctions facilities apart from accurate measurements.
Though, the study reveals that the farmers were enthusiastic about flower cultivation and its returns, it has be noted that the secondary occupation of 29.17% merchants were petty businesses including money lending. Further, few cultivators airing their problems have express that merchants deducted interest on the advance money and manipulated measurements.
3. A Value-added marketing approach should be adopted to extend the spread of the market. Value-addition ensures high premium to the grower while providing more acceptable quality products for the domestic and export market. The value-addition for marketing flowers includes adoption of post-harvest technology and improved logistics.
The study reveals that the principal markets were Madras, Chittoor and Tirupathi which are just few hours drive from the district headquarters. The merchants also used public transports specially bus services and the consignments were loaded on top of the buses exposed to the heat of the sun. Adoption of technology for prolonging the shelf-life of flowers and use of insulated trucks or refrigerated vans will ensure value-addition to the flowers being marketed. In this way, the place utility for flowers can be increased and better markets in neighboring states can be tapped.
4(a). A new policy directive for loose / traditional flowers should be developed to the tap the market potentials.
The literature search for the study revealed that flowers like jasmine were also in demand especially in the Middle East. Flower extracts from rose, jasmine and tuberose are also having good markets. The study also revealed that 2 flower extraction plants were in operation at Annaicut block where flower was intensively cultivated.
The APEDA market survey also reveals that the trade turnover for traditional flowers and plants is 105 crores as against the total turnover of 205 crores.
4(b). The new policy directive for loose / traditional flowers should make provisions for incentives and credit facilities for farmers together with provisions for infrastructural facilities.
The study revealed that cultivators were small and marginal farmers.
The study also reveals that only 0.4% cultivators availed LDB loan and used it for flower cultivation though there were no specific schemes for floriculture. About 85.4% cultivators also said the personal funds available were not sufficient to increase the scale of operation.
The APEDA survey of 1988 revealed that 24,000 hectares of land are under traditional flower cultivation while only 10,000 hectares are under modern cut flowers. The employment potential in this sector is therefore high.
The study also revealed that during plucking season additional hands were employed in large numbers. The study further revealed that demand for labour during peak season was the 2nd major reason for wastage of flowers.
4. Computer-aided Agricultural Extension Centres may be established to help flower cultivators to retrieve global market information such as demand price consumer preferences etc. Also they can have scientific information on agricultural experiments, standardized cultivation practices, inputs management as also routine information on Meteorological information that affect their day to day life.
These extension centres may be established in institutions which are (i) situated nearer to the villages and (ii) having global Internet facilities. In this way, the objective of the 9th Five Year Plan to link the scientist and the farmer will be easily achieved.
The study reveals that the farmers were not aware of the use of chemicals to prolong the shelf-life of the flowers, not did the merchants have knowledge of the use of specially insulated trucks or refrigerated vans.
The study also reveals that price fluctuation is very common and the change can be observed from one day to another. Though merchants keep the farmers informed, there is a lack of authenticity in the absence of a farm price policy.
5. Further, research studies may be undertaken to gain knowledge and promote place utility for flowers.
· The changing trend in global flower market and its spill over effects may be studied to draw plans to manage change. The possibilities of inducing drastic shift in cropping patterns, labour scarcity for farm sector, reducing public investments etc. have to be studied as government determines the national priorities and thrust areas.
· The facilities provided and the prospects of model markets which are established in important cities may be studied. The functioning of Chennai model market may also be further studied to duplicate its success.
· There is no idea about what happens in the terminal (city) market. The factors influencing the choice of domestic consumption vs. export, processing and packing for exports and other value-additions may be studied in detail.
CONCLUSION
India has come a long way from struggling to take care of its basic food requirements to use the tremendous leverage of commercial and export oriented agriculture. There is no other country which grows such a wide range of fruits, vegetables and flowers and in such abundance as India. There is also no doubt about the immense and yet untapped prospects and potentials of global market for India.
The traditional flowers are widely cultivated in this district and are said to have good market in the middle-east apart from the wide domestic market it enjoys. There also seem to be a shift to floriculture in the occupational pattern of the people. There is also near full employment as floriculture in this district is practiced throughout the year and the season for jasmine alone, lasts for 8 long months.
The implementation of the suggestions will go a long way in developing the North Arcot Ambedkar District, now known as Vellore district, which is a backward district.
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Project Topic : Marketing of crude drugs and Essential oils in India :
Problem and Prospects
World population is nearing 5.5 billion today and following this rate of growth it is likely to reach 11.5 billion by the year 2020. Rise in population, inadequate supply of drugs in certain parts of the world, prohibitive cost of treatments for common ailments, side effects of several allopathic drugs in current usage and development of resistance to currently used drugs for infectious diseases have led to increased emphasis on the use of plant materials as a source of medicines for a wide variety of human ailment.
Aromatic and medicinal plants have market of considerable size both nationally and internationally. India has to increase its contribution to meet the demand by supplying high quality essential oil and drugs. It will help earning foreign exchange and strengthen the economy of the country. Exports are to be increased and imports are to be cut down. India has to compete with China, Brazil, Bulgaria and Australia for essential oils and with USA, Japan and Europe for economic technologies.
It is estimated that world market for the plant derived drugs may account for about Rs. 2 lakh crores. Estimated market size for the fragrant and flavour materials is also of about the same size. The interest among people world over in the use of plant based pharmaceuticals is growing at a very fast pace. Presently the Indian contribution is much less than 2000 crores. The annual production of medicinal and aromatic plants raw material is worth about Rs. 200 crores in India. There are tremendous possibilities of increasing the production and trade of the items of use in drug and cosmetics, both for internal consumption and export.
Beside regular internal demand, the produce from over hundred species enter the world market, but the trade in this sector is by the and large unorganized. This is largely because of fluctuations in the national and international prices on account of variable supply and demand that bring in to conflict the interests of growers and user industries. So far India has been involved in export of only large volume of raw material. To achieve competitive advantage we need to resort to low volume high cost trade, through value addition to the raw and unfinished products. It is, therefore, necessary to develop genetically superior planting material for assured uniformity and desired quality and resort to organized cultivation to ensure the supply of raw material at growers end. Post harvest storage and process technologies need to be developed to produce the value added finished products that may be directly utilized by the pharmaceutical or perfumery industries.
Medicinal and aromatic plants currently being used commercially are indigenous to different parts of the world. India having about 45,000 species of plants is endemic only for a small number of the commercially useful species. The country being a subcontinent, a variety of agro climatic conditions are available. It is thus possible to cultivate medicinal and aromatic plants requiring different environmental conditions. Further, the huge scientifically trained manpower and relatively cheaper cost of production place India in a condition favourable for it to become a major producer, processor and supplier of medicinal and aromatic plant materials. In this direction the country is required to develop suitable agro and processing technologies for the production and value addition to the medicinal and aromatic plant materials and the product derived from them. India could thus strive to become a major player in the international medicinal and aromatic plants industry in a big way.