April-June,2002
Vol. XLV. No. 1
I.S.S.N.-0002-1555
AGRICULTURAL
MARKETING
A National Level Quarterly Journal
on Agricultural Marketing
Directorate of Marketing & Inspection
Ministry of Agriculture
(Deptt. Of
Agriculture & Cooperation)
Government of India
---------------------------------------------------------------------------------------------------------------------
GRAMEEN BHANDRAN YOJANA
(SPONSORED BY
MINISTRY OF AGRICULTURE, GOVERNMENT OF INDIA)
A COMMERCIAL
PROGRAMME FOR CREATION OF COUNTRY WIDE NETWORK OF RURAL GODOWNS FOR SCIENTIFIC
STORAGE OF AGRICULTURAL COMMODITIES, PROCESSED FARM PRODUCE, FARM INPUTS ETC.
·
INCENTIVES OFFERED :
0 LONG TERM FROM BANKS TOWARDS CAPITAL
COST OF PROJECT
0 CREDIT LINKED BACK-ENDED SUBSIDY @
25 PER CENT OF THE CAPITAL COST OF EACH PROJECT
0 HIGHER SUBSIDY @ 33.33 PER CENT FOR NE STATES, HILLY AREAS ABOVE 1000 MTS MSL AND FOR
ENTREPRENEURS
BELONGING TO SC/ST
0 BANK FACILITY OF PLEDGE FINANCING
ON STOCKS AT LOWER RATES OF INTEREST
·
PERSONS ELIGIBLE :
0 INDIVIDUAL, FARMERS,
PARTNERSHIP/PROPRIETARY FIRMS
0 COMPANIES, CORPORATIONS,
COOPERATIVES
0 AGRICULTURAL MARKETING COMMITTEES,
MARKETING BOARDS
0 AGRO-PROCESSING UNITS
·
LOCATION & SIZE
0 ANY PLACE OUTSIDE THE LIMITS OF
MUNICIPAL CORPORATION AREA
0 ANY SIZE SUBJECT TO A MINIMUM
CAPACITY OF 100 MT
·
SIMPLIFIED PROCEDURE :
0 AUTOMATIC RELEASE OF SUBSIDY THROUGH FINANCING BANKS IN TWO INSTALLMENTS Viz.
(i)
SANCTION OF BANK LOAN and (ii) COMPLETION
OF PROJECT
·
PROGRAM TARGET :
0 NEW STORAGE CAPACITY OF 18.50 LAKH
TONNES BY MARCH, 31, 2003
0 MODERNIZATION OF COOPERATIVE
GODOWNS 1.50 LAKH TONNES
OPERATIONAL GUIDELINES OF THE SCHEME CAN
BE OBTAINED FROM ANY COMMERCIAL BANK/NABARD AND ITS REGIONAL OFFICES/NCDC AND
THE DIRECTORATE OF MARKETING AND INSPECTION, FARIDABAD OR ANY OF ITS BRANCH
OFFICES IN STATE CAPITALS OR AT THE WEBSITE agmarknet.nic.in OR BY E-MAIL
REQUEST TO dm@fbd.nic.in
Vol.XLV-No. 1 ISSN.002-1555
PAMA-116,VOL-XLV,No.-I
----------------------------------------------------
APRIL-JUNE, 2002 500
AGRICULTURAL
MARKETING
|
EDITORIAL BOARD |
CONTENTS
|
Page No. |
|
1. SHRI P.K. AGARWAL, AGRICULTURAL
MARKETING ADVISER TO
THE GOVERNMENT OF
INDIA 2. DR. G.R. BHATIA, ADDL. AGRICULTURAL MARKETING ADVISER
3. SHRI R.J. VERMA, JOINT
AGRICULTURAL MARKETING ADVISER
4. SHRI A.P. BHATNAGAR,
DIRECTOR (COLD
STORAGE AND REFRIGERATION).
5. DR. P.K. JAISWAL,
DIRECTOR OF LABORATORIES.
6. SHRI G.H. DHANKAR, DEPUTY
AGRICULTURAL
MARKETING ADVISER. EDITOR
SHRI D.B. BHARADWAJ MARKETING OFFICER |
1. IN HINDI 2. Establishing Regional and Global Marketing
Network for Smallholders’ Agricultural Produce/Products with reference to
Sanitary and Phyto sanitary (SPS) requirement. -P.K. Agarwal |
2 26 |
|
3. Economic Aspects of Flower Marketing in
Srirangam, Trichirapalli, T.N. -M. Perumal |
41 |
|
|
4. Marketing Interventions in Shimla District. -G.H. Dhankar and
Lallan Rai |
51 |
|
|
5. Estimation of Marketed Surplus Function-A
study of Sali Paddy Farmers of Sonitpur District, Assam. -P.K. Baruah. R.N. Barman |
66 |
|
|
6. Micro-level Group Marketing for Fruit &
Vegetables-Some Perceptions. -B.K. Paty |
74 |
|
|
7. HOME NEWS
|
86 |
|
|
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|
ANY ARTICLE PUBLISHED IN THIS JOURNAL CAN BE REPRODUCED PROVIDED
DUE ACKNOWLEDGEMENT IS MADE TO THE SOURCE.
THE VIEWS EXPRESSED IN THE ARTICLE ARE THOSE OF THE AUTHORS AND NOT
NECESSARILY OF THE DIRECTORATE OF MARKETING & INSPECTION AND THE GOVERNMENT
OF INDIA.
READERS MAY SEND POPULAR ARTICLES OF TOPICAL INTEREST IN HINDI AND ENGLISH TO THE EDITOR, AGRICULTURAL
MARKETING, DIRECTORATE OF MARKETING & INSPECTION, NEW C.G.O. BUILDING, N.H.
IV. FARIDABAD-121001.
Establishing Regional and Global Marketing Network for
Smallholders’ Agricultural Produce/Products with Reference to Sanitary and
Phyto-Sanitary Requirement*
-
P.K. AGARWAL**
1.0 Agricultural Export and Sanitary Standards.
Agriculture plays a central role in the economies of developing
countries, accounts for a large share of gross domestic products (GDP),
accounts for a large proportion of the total population; and represents a major
source of foreign exchange (see Annexure-I).
The potential for food export is enhanced by the 1994 GATT agreement on
agriculture, but sanitary and phyto-sanitary standards pose a potential
constraint to expanded trade. The new
Agreement on Sanitary and Phyto-sanitary (SPS) Measures as part of the GATT
Agreement 1994 came into force with the establishment of the World Trade
Organization on 1 January, 1995. The SPS
Agreement prevails over the GATT Agreement 1994. The aim of the Agreement is to protect and
improve the current human health, animal health, and phyto-sanitary situation
of all member countries and protect the members from arbitrary or unjustifiable
discrimination due to different sanitary and phyto-sanitary standards.
1.1 The SPS standards commonly applied by
Governments as they affect imports are (i) Import Ban (Total/Partial); (ii) Technical
Specifications (Process Standards/Product standards/Technical standards); and
(iii) Information Requirements (Labeling Requirements/Control on Voluntary
Claims). Import bans are generally applied
when there is a significant and acute risk about a hazard. Technical specifications are most widely
applied measures and permit import subject to compliance with pre-determined
specifications. Information requirements permit imports provided they are
appropriately labeled.
1.2 As trade participation grows with reduced trade barriers and
development, a country’s ability to meet and apply sanitary and phyto-sanitary
standards become more important for market access and domestic consumers. Applying such standards means building
effective systems to control or eradicate plant and animal diseases and to
ensure the safety of exported and imported food products.
1.3 Sanitary standards are particularly important for fresh food
items, such as meat products, seafood, fruits, and vegetables. Exports of these products account for half of
the value of all food exports from developing countries in the 1990s. Seafood is the single largest fresh food
category in developing country exports, and is especially important in South Asia
and sub-Saharan Africa. There are other
categories of fresh food exports, which are growing rapidly in low-income
countries, and are important in many regions of the world. (see
Chart below).
------------------------------------------------------------------------------------------------------------
* Paper presented in the International Seminar on “Challenges to smallholders’ sector towards globalization” from 12-19
May 2002 at Kualalumpur.
** Jt. Secretary (Marketing) and Agril. Marketing Adviser to the Govt. of India, Dte. of Marketing and Inspection,
Deptt. Of Agriculture &
Cooperation, Govt. of India, New Delhi.

1.4 Fresh food products are subjected to
strict sanitary measures. First, they
are shipped and consumed in fresh form, so handling at all points of the food
chain influences food safety and quality.
Manufactured or processed food products have more widely established and
recognized standards, and may not deteriorate during shipping and handling. Second, standards in developed country
markets are based on sanitation and good manufacturing practices. Meeting such standards required greater
initial investments in quality control and sanitation in developing
countries. Third, fresh1 commodities are
subject to increasing scrutiny are regulation in developed economies as food
safety hazards are better understood and more often traced to their
sources. Taken together, these concerns
pose challenges for expanding food exports from developing countries.
2.0 SPS Measures and Developing Countries.
In a
case study commissioned by FAO in 1999 in selected Afro-Asian countries to
review national experience with the implementation of the Uruguay Round (UR)
Agreement on Agriculture (AoA), the experiences with regard to implementation
of SPS/TBT Agreements are found to be as follows. First, the SPS/TBT Agreements were considered
as positive developments for safeguarding the interests of small trading
countries without much retaliatory clout.
Second, the key problem was the wide gap in the ability to meet
international standards between the developing and developed countries, which
cannot be narrowed in the short run, no least because it requires much investments.
This state of affairs will continue to limit their export trade. Third, for obvious reasons, traditional
agricultural exporters gave much more prominence to these Agreements (Brazil
and Thailand among the selective centers).
Fourth, several instances of both favourable and unfavourable
experiences were reported in the case studies, in particular those of Brazil,
Egypt, Jamaica, Pakistan and Thailand.
Fifth, some of the problem encountered by these countries were lack of
mutual recognition of inspections and standards (with several large importing
countries often asking for “sameness” in the process rather than “equivalence”)
and “trade harassment”, where the Agreements did not provide clear
guidelines. Finally, all studies were
critical of the fact that the promised technical an
financial assistance had so far not been forthcoming *.
-----------------------------------------------------------------------------------------------------------------
1 Research Study commissioned by DFID on
trade -- Impact of Sanitary and Phytosanitary Measures on Developing Countries.
2.1 In the study, the chart below indicated
the proportion of countries that responded to the survey that had been
prevented from exporting agricultural and food products to the EU in the last
three years due to SPS requirements. The
products for which SPS requirements had been a particular problem were
meat/meat products, fish/fish products and fruit and vegetable/fruit and
vegetable products. In many cases where
SPS requirements had not impeded trade, for example dairy products, the countries
concerned did not currently produce sufficient volumes of the product to export
to the EU.
Figure 4. Number of developing countries for which
exports of agricultural and food products to the EU have been prevented as a
direct result of SPS requirements in the last three years.

2.2 A major problem faced by developing countries is access to the
resources required to comply with SPS standards in developed countries. These include information on SPS standards
themselves, scientific and technical expertise, appropriate technologies,
skilled labour, general finance etc.
Supply chains tend to be longer and more fragmented than in developed
countries and, as a result, the cost of establishing systems of traceability
and supplied quality assurance can be prohibitive, in particular for small
producers. In certain cases the SPS
standards of develop countries are not compatible with the production systems
employed in developing countries.
Logistics can represent a major barrier to products which otherwise
might have met all necessary SPS measures.
Access to the actual information on SPS requirements in foreign markets
can be a problem, or can cause significant delays and confusion. Insufficient ability on the part of
developing countries to (i) assess implications of developed countries SPS
requirements following notification, (ii) participate effectively in dispute
settlement procedures, (iii) demonstrate that domestic SPS measures are
equivalent to developed country requirements, (iv) undertake risk assessment of
SPS requirements, (v) attend SPS Committee and international standards
organisation meeting, (vi) assess the scientific justification of developed
country SPS requirements are other important constraints to the participation
of developing countries in the SPS Agreement (see Annexure-II).
3.0 Farm to Table Approach in Food Safety
3.1 Increasingly farm to table approaches are being
adopted in developed world. Such
approaches address hazards that are introduced at various points in the food
chain or are difficult to measure. While
the concept of controlling hazards throughout the system originated in the
private sector, it is increasingly being used as a standards
by the public sector. Hazard Analysis
and Critical Control Points (HACCP) methodology is increasingly being implemented
world-wide to improve food safety and reduce the incidence of foodborne
illness. The HACCP system seeks to
incorporate animal/plant health and food safety controls into the growing and
processing of foods (i.e. preventing failure) rather than focusing on testing
of the end-product. (see
Annexure-III &IV). An advantage of
the HACCP approach is to focus resources on the most important control points,
which can minimize resources used to improve safety. An additional benefit is that responsibility
can be identified at various segments along with process. Thus problems at the farm can be separated
from problems at the plant level, at the processing level, and distribution
level. However, implementation of full
HACCP evaluation may be costly and our clients may lack the institutional
capacity or finances to do so.
3.2 The manner in which the developed
countries, specially the EU countries are coming out with new SPS measures at
regular intervals, demands a situation of constant shifting of goal-posts for
developing countries. Once a SPS
requirement is complied with, a new requirement is introduced and by the time
the second one is met with, a third one is created. This creates difficulties in continuation of
trade because of the intervening gaps between introduction of a regulation and
its compliance. The EU as a SPS measure
is contemplating to introduce official controls at the national and EU levels
with the ability to trace products through the while food supply chain as a key
issue. In case, this procedure is
introduced, it will be a major challenge to exports from developing countries
because of lack of mechanism within these countries to trace and track products
through their supply chain.
4.0 India’s Agri-Business Interests and SPS
Status.
4.1 Agriculture accounts for close to 20% of
India’s total export basket.
Agricultural exports in rupee terms in 1998-99 were of the order of more
than Rs. 30,000 crores. The break up of
these in terms of major product groups is as follows :
Break-up of India Agri-business Export.
|
Marine
products |
14.3% |
Coffee
|
5.6% |
|
Oil
Meals and Caster oil |
8.5% |
Spices |
5.3% |
|
Tea |
7.4% |
Cashew |
5.3% |
|
Basmati
Rice |
6.1% |
Tobacco
|
2.5% |
|
|
|
Others |
19.6% |
4.2 Geographically, India’s exports are all round the world. Marine products are mainly exported to Japan,
followed by EU and USA. Castor oil, tea,
coffee, cashew and basmati rice are mainly exported to EU. Spices are exported to EU, US and the middle east countries.
There is, therefore, a heavy reliance on the developed country
markets. A number of East-European
countries which, presently, do not have many SPS barrier will soon be governed
by the EU regulations and are likely to pose market access problems governed by
SPS measures. It would be necessary for
India to comply with various SPS restrictions currently being imposed by
importing countries and possible SPS restrictions it might face in the years to
come. There is now a need to frame
standards for manufacturing/production units, products including additives and
contaminants, packaging, storage as well as transportation. Presently, there is not infrastructure for
regular monitoring of contaminants, additives, hygiene, pesticide residues,
etc., either for the domestic market, which would cover, imported products or
for the purposes of exports.
4.3 Insofar as the domestic market is
concerned, while people are aware that quantitative restrictions have been
phased out, the possibility of surge in imports is not ruled out. In so far as agricultural products are
concerned, India could anticipate possibility of import of animal based
products (meat, poultry, dairy), fresh fruits, plating material, dried fruits,
canned and bottled fruit and vegetables including frozen products, certain
value-added sea food items, honey, sugar, cereal products and other convenience
and packaged food items. In most of the
items, India does not have any SPS measures to monitor imports which have a
direct bearing on the domestic industries and market. Whatever standards and inspection procedures
have been stated have all been framed quite a few years ago, keeping the then existing domestic
production facilities in mind. The
Bureau of Indian Standards and the Ministry of Agriculture frame the
standards. Organisations like APEDA,
MPEDA, Spices Board have taken the initiative to frame
standards with a view to comply with the importing countries’ requirements so
that the exports can be sustained. Some
of these standards have either been notified under the EIC Act or under the
AGMARK Act. Still there are many
products for which there are no standards and inspection procedures, either for
exports or for imports or for the domestic market. Moreover, there is no
organisation to monitor contaminants, additives, hygiene, packaging, pesticide
residues, etc. in imported food products.
India need to address this issue as early as
possible.
5.0 Role of Public Sector in Implementation
of SPS Measures
5.1 Plant and animal health problems are
often external to the decision making process of individual producers, creating
a free rider situation. That is, an individual producer may take steps to
eliminate a plant or animal health problem, but cannot do so completely without
the cooperation of other producers. This
can create a public good problem and the underproduction of animal or plant
health. The public sector has,
therefore, to play a significant role in the development implementation and
enforcement of animal and plant health and food safety standards and
regulations, coordination with international organizations on harmonization of
standards and regulations, surveillance of foodborne diseases, consumer
education, training, extension, and research.
The public sector clearly has a responsibility to intervener in cases
where export opportunities for many smallholders’ are threatened and the
benefit of the intervention greatly exceed the costs.
5.2 The developing countries need to build
strong institutions to ensure food safety, animal and plant health. This includes inspection, surveillance,
certification, laboratory, and public information systems. Countries need to develop their institutional
capacity to diagnose pests and diseases, approve entry of products and animals,
conduct surveillance of pests and diseases, undertake risk assessments, conduct
emergency actions, establish and maintain pest and disease-free (or low
prevalence) areas; and to establish and enforce food standards for domestic and
imported products, among other functions.
As such their institutions have the appropriate legal authorities,
technical capability, efficient operations, information system, and funding
mechanisms, among other requirements.
5.3 National surveillance programs for animal
diseases, plant pests and diseases , and food borne
illnesses are key components of national agricultural health and food safety
systems. They also play a vital role in
international disease surveillance and control efforts. Many countries that lack this type of surveillance
are faced with continual disease problems associated with the smuggling of
animals and plants across borders.
Further countries with large numbers of small producers may find it more
difficult to conduct surveillance.
5.4 Ensuring animal/plant health and food safety purely for the
export market requires considerable investments in human and institutional
capacity building, and needs to be justified by increased exports. Such investments may focus on developing
processes or standards that will be recognized as equivalent to those in the
importing countries. The private sector
may undertake such investments for specific products, but this often requires
some public capacity to provide services.
When one firm or industry tries to improve safety to meet export market
requirements, the costs will be high without basic public investments in
sanitation or public institutions to certify safety.*
5.5 Efforts of developing countries to strengthen internal
institutional capacity have to be characterized by : (1) greater participation
of the private sector; (2) heightened awareness about emerging international
food safety and agricultural health events and concerns; (3) increased
attention to domestic and international consumer requirements; (4) greater
focus on the entire process from production to consumption; and (5) increased
efforts to incorporate good agricultural practices (GAP) and hazard analysis
and critical control points (HACCP).
5.6 The legal framework plays an important role in addressing
market failures by defining responsibility for agricultural health and food
safety. As a food systems
develops, this responsibility shifts upstream away from the consumer towards
the food processor and food producer.
Establishing liability for animal and plant health and food safety will
help to create incentives for private actions as an economy develops. An effective animal and plant health and food
safety system requires a framework of science based regulations and
standards. Developing countries will
have to strengthen their legislation and standards affecting the production,
distribution and processing of foods.
This includes regulation of inputs that affect animal, plant and human
health.
------------------------------------------------------------------------------------------------------------
* Cato J.C. and Dos Santos, C.A.L. 1999 “ Costs Upgrade the
Bangladesh Frozen Shrimp Processing Sector to Adequate Technical and Sanitary
Standards” in The Economics of HACCP, Eagan Press, forthcoming.
6.0 Regional Cooperation to solving Problems associated with SPS
measures.
There are a number of
initiatives required within the forum of developing countries to address the
problems arising due to SPS requirements.
Efforts are required to enhance the capability to comply with the SPS
requirements of developed countries.
These might include improved access to scientific and technical
expertise and development of domestic SPS control systems that are effective
and appropriate to local circumstances.
Effectively targeted and appropriate technical assistance and greater
regional cooperation between developing countries are likely to be important
elements of these initiatives. Regional
cooperation can facilitate (i) active participation of developing countries in
the SPS Committee and international standards organisations through collective
action, sharing the responsibility to attend meetings etc; (ii) sharing of
information and scientific and technical expertise on SPS matters; (iii) to
better assess the implications for new SPS measures in developed countries, to
demonstrate that the measures they apply are equivalent to developed country
requirements, and to justify through risk assessment their own SPS
requirements; (iv) development of effective system of SPS control in developing
countries that best meet local needs and priorities; (v) effective conduit for
technical assistance in cases where problems/issues are common to countries in
particular regions.
7.1 Liberalization of world trade in
agriculture has opened opportunities to the farm sector to access markets of
agricultural commodities world-wide.
However, to actualize the new market access opportunities for the benefit
of smallholders, there is a need to strengthen internal agricultural marketing
system, encompassing all areas from production to post- harvest management,
quality standards, processing, storage, transport and warehousing. Second generation reforms have to be brought
in agriculture sector to remove all barriers, whether legal or policy induced,
which introduce inefficiencies and monopoly rents in the functioning of
agricultural markets and to promote and institutional framework for private
sector participation. The heart of
second generation reforms in agriculture sector lies in ‘market place’.
7.2 In India, though at present agricultural
production is largely free from controls, the same is
not true of marketing and processing of agricultural commodities. There are restrictions that
block free movement of foods in the country, impose stocking limits on private
traders and processors, prohibits forward contracts and futures trading
in most commodities, keep processing of agricultural commodities still reserved
for the small sector and so on. Under
the Marketing legislations, only the provincial Governments are empowered to
initiate the process of setting up of markets for agricultural commodities in
notified areas. Existing legal
provisions do not permit processing industries to buy directly from the
farmers, except through the notified markets where intermediaries take away a
sizable share from the price of the produce.
Processed foods derived from agricultural commodities suffer from
multiple taxes at various stages starting from the sale after harvest till the
sale of final processed products. This
has not only cascading effect on the prices but also sets a barrier to free
flow of materials from farm to the factory and ultimately to the consumers. All these controls are now widely recognized
as going against marketing and processing efficiencies.
7.3 The other area of importance is the need to substantially
enhance investment in agriculture sector by motivating private and cooperative
sectors to invest in marketing infrastructure, primarily in the area of
markets, grading and standardization, storage, post-harvest handling,
processing, transport and cold chain. A
system of negotiable warehouse receipts need to be devised and expanded and a
scheme of certification of warehouses initiated in the country so that not only
the quantity but also quality of the produce can be certified and the banks
enabled to treat these receipts as acceptable collaterals for loans. Credit margin requirements for stocks of
agricultural commodities need to be reduced and futures markets introduced in
all agricultural commodities.
7.4 The competitiveness of Indian agriculture has to be enhanced
to realize new market access initiatives.
In this process compliance with international quality including hygienic
and safety standards will become increasingly essential. There is, therefore, an urgent need to adopt
internationally recognized quality management systems and establish a credible
system of accredited laboratories for quality certification. Grading, sorting and packaging facilities
need to be established in all markets in the country to not only increase the
farmers income, but also to help in marketing of agricultural products in
domestic as well as international markets.
8.0 Sensitizing Farmers on the Requirement of SPS
8.1 Agricultural extension services to farmers in India have so
far been in the domain of Government agencies, focusing essentially on
production and productivity enhancement related activities. In the liberalized trade regime, focus of
extension has to shift on promotion of appropriate agricultural technologies
and agro-management practices to respond to diversifying market demands and
export opportunities. In addition to
promotion of grading and standardization, the farmers have to be made aware of
the requirements of sanitation and hygiene at all stages right from the primary
production during preparation, processing and cleaning, application of
pesticides, packaging, transport, distribution etc. for improving their
marketability in large markets. Under
total quality management, HACCP is recognized as a tool to quality production
of agricultural products. Good agricultural
practices envisaged in the HACCP have to be widely disseminated in the entire
food chain right from primary production to processing, cleaning, storage,
grading and distribution for consumption.
Preventive approach to safety of agricultural commodities has to be made
popular amongst farming community.
8.2 So far as agricultural extension has been considered the
monopoly of the public sector. However,
in the changing scenario there is growing recognition that public extension
itself cannot provide market related services to farmers. Private extension services, therefore, has to
be supported. Farmers have increasingly
begun to perceive marketing rather than production as the major constraint to
enhancing farm incomes. With major
thrust of extension agencies on production techniques, marketing extension so
far has not received the attention it deserves.
This assumes greater significance in the light of the new international
trading regime under the WTO and the export opportunities being opened up. The multi-agency extension service will need
to address these issues through strengthening capacity of the public agency,
supporting private sector in marketing extension and making extensive use of
media and IT in information and technology dissemination. Marketing extension so far a peripheral issue
in the extension scenario will need to be brought center-stage. Indeed, production will now need to be
significantly dictated by market requirements.
8.3 The Ministry of Agriculture, Government of India has recently
launched a unique programme to take improved methods of farming to each and
every farmer across the country. This programme aims to tap the expertise
available in the large pool of Agriculture Graduates to set up Agriclinic or
Agribusiness center and offer professional extension services to innumerable
farmers. Committed to this programme,
the Government is now also providing start-up training to graduates in
Agriculture, or any subject allied to Agriculture like Horticulture,
Sericulture, Veterinary Sciences, Forestry, Dairy, Poultry Farming, Fisheries,
etc. Those completing the training can
apply for special start-up loans for the venture.
8.4 Agriclinics and Agribusiness Centres would provide paid
services for enhancement of agricultural production and income of farmers. These centers would advise farmers on crop selection,
best farm practices, post-harvest value-added options, key agricultural
information (including Internet-based weather forecast), price trends, market
news, risk mitigation and crop insurance, credit and input access, as well as
critical sanitary and phyto-sanitary considerations, which the farmers have to keep in mind.
8.5 Farmers’ Cooperatives can be an important vehicle for the
dissemination of market related information to a large number of small
farmers. Though farmers’ cooperatives
were very active in the 1960s and 1970s, but Government interference in their
working saw their popularity dwindle among small holders greatly. Yet in this era of liberalization, farmers’
Cooperatives hold the key to their playing an active role in new markets. In India cooperatives have been playing an
important role in the agricultural and rural economy. They are engaged in several economic
activities such as disbursement of credit, distribution of agricultural inputs
like seeds, fertilizers, agro-chemicals, arranging storage, processing and
marketing of farm produce. Cooperatives
have enabled farmers in getting good quality inputs at a reasonable price as
well as in getting remunerative returns for their farm produce when marketed
through cooperatives. The cooperative
agro-processing units add value to their precious farm produce such as milk,
sugarcane, cotton, fruits and vegetable and thus facilitate better
returns. The cooperative sector in India
is one of the largest in the world with 528 thousand societies of various types
with a membership of 228 millions and working capital of Rs. 2856 billions as
on 31.03.2001. Almost 100 percent
villages are covered under the cooperative fold and about 67 percent of the
rural household are the members of the cooperative
institutions.
8.6 Government extension services can effectively utilize the
existing framework of farmers’ cooperatives through their federations in
promoting SPS requirements in relation to modern markets. Promotion of nationally and internationally
accepted standards of grading and standardization, packaging and labeling,
storage and warehouses and sanitary and phyto-sanitary measures and quality
certification in farm sector will also enable trade and processing sector to
undertake large scale agricultural marketing operations in domestic
markets. Once the farm produce is
standardized and labeled backed by reputed quality certification, it can be
directly offered for sale in national and international markets. For this purpose, training and education
modules will have to be prepared for reaching the region specific farmers in
vernacular languages to create and ambience of good marketing practices in the
country.
ANNEXURE – I
Indicators of Importance of Agriculture in the Economy
(Percentage Shares in 1995-97)
|
Country |
Share of agriculture in GDP |
Share of population in agriculture |
Share of agricultural produce in total merchandise
exports. |
|
Bangladesh |
30.0 |
59.6 |
3.4 |
|
Botswana |
3.4 |
45.3 |
5.0 |
|
Brazil |
14.0 |
18.7 |
29.9 |
|
Egypt |
16.0 |
39.3 |
13.8 |
|
Guyana |
n.a. |
19.3 |
41.0 |
|
India |
27.0 |
56.8 |
16.5 |
|
Jamaica |
8.0 |
22.2 |
21.0 |
|
Kenya |
29.0 |
77.1 |
54.5 |
|
Morocco |
20.0 |
40.3 |
17.9 |
|
Pakistan |
26.0 |
52.6 |
13.4 |
|
Peru |
7.0 |
32.0 |
9.4 |
|
Senegal |
18.0 |
75.0 |
10.3 |
|
Sri Lanka |
22.0 |
47.5 |
20.8 |
|
Thailand |
11.0 |
52.0 |
14.1 |
|
Developing countries |
26.3 |
50.4 |
27.3 |
|
Developed countries |
3.0 |
8.7 |
8.3 |
Summary of problems in meeting SPS
requirements identified in case studies.
|
Nature of problem |
Countries affected |
Products affected |
Notes |
|
Access
to compliance resources. |
India Zimbabwe Vietnam Ghana |
Meat Meat General General General |
Technical
expertise lacking Poor abattoir
facilities Lack
of resources Lack
of trained personnel and laboratory facilities. |
|
Compliance
period |
India Zimbabwe Vietnam |
Shrimps General General General |
Delays
in adaptation of competent authority to EU requirements. Periods
too short EU
takes time to inspect Periods
too short. |
|
Response
by own government |
Ghana Zimbabwe Kenya Cameroon |
Fish General Fish General |
Time
taken to get Ghana Standards Board approval : slow response
of own government to EU changes (and to ban).
Slow
response of Competent Authority following ban. Demise
of state extension service. |
|
Nature
of marketing chain. |
Zimbabwe Ghana India Ethiopia
Cameroon |
Beef Fish Milk Fish General
Coffee Coffee |
Traceability
required-huge problem for small-holders; capital investment required,
reliability problems. Artisanal
methods-wooden boats, lack of ice. Hand-milking;
proving TB and Brucellosis free. Poor
packaging and handling facilities; long distances to ports from production
areas. Small-holder
production; sun-dried-unripe product; no specialist drying. New
system of payment does not encourage orderly marketing. |
|
Production
methods |
Bolivia India Ghana Vietnam Ethiopia Kenya Cameroon The
Gambia |
Brazil
nuts General Milk Fish Poultry Coffee Fish Coffee Groundnut |
Traditional
growing and harvesting techniques; transportation delays. EU
takes little notice of local conditions. Hand-milking. Artisanal
methods of catching and marketing. Catching
and filleting methods. Humidity
and rancidity; lack of scale. New
aflatoxin levels will be hard to meet. |
|
Logistical
problems |
Kenya
Ghana Ethiopia Cameroon
|
Horticultural
products
Fish General
Palm
oil |
Small
producers-lack of airfreight capacity and bargaining power. Infrastructural
rigidities and lack of cold storage; lack of airfreight capacity Port
and other facilities. Long-term
contracts expected by US and European buyers. |
|
Access
to information |
Zimbabwe India Ghana Kenya |
Flowers;
beef; fresh produce General Tuna Fish |
Well
established trade-customer requirements paramount. Difficult
to get full information on SPS requirements. Stringent
standards and inspections from UK buyers. |
|
Awareness |
India Zimbabwe |
General General |
Problems
for small businesses to get information. |
|
Internal
regulatory structure |
Egypt India Ethiopia Vietnam Zimbabwe |
General General Shrimp General General General |
Poor
Competent Authority; many agencies responsible for SPS matters. Diversity
of responsibility for SPS matters. Poor
Competent Authority/poor inspection system. Small
team responsibility for SPS matters. |
Potential Hazards to Human Health in the Food system.
|
Type of Hazard |
Nature of Hazard |
Where it occurs in system. |
|
Antibiotic
drugs |
Residues
can pose chronic risk to human health.
Use can promote antibiotic resistance, which threatens animal and
human health. |
Used
as additive in feeds Used
to treat animal infections. |
|
Microbial
pathogens |
Can
cause acute illness in humans or animals.
Long term sequellae in humans. |
Some
live in gastrointestinal systems of animals and humans, others in the
environment; can be introduced at any point in food system. |
|
Pesticides |
Improper
use can cause chronic or acute illness or death in farm workers. Residues in food or water can cause chronic
or acute human illness. |
Applied
in production, processing of distribution. |
|
Mycotoxins |
Can
cause chronic illness in humans. |
Occur
naturally on plants and in animal products when in feed if stored under
conditions that permit fungal growth. |
|
Parasitic
Diseases |
Can
cause acute or chronic illness in humans. |
Live
in animals, water, or soil. |
|
Heavy
Metals or Toxic Waste |
Can
cause acute or chronic illness in humans. |
Enter through
soil, water, or food that is contaminated. |
|
Production Farm |
Transport of animals and Agricultural Product |
Slaughter House, Packing House, First Distributor |
Transport of Products. |
Industrial Process |
Retailers, Food Services.
|
|
Hygiene of facilities |
Cleaning |
Hygiene of establishments |
Cleaning Vehicles |
Hygiene of establishments. |
Hygiene of establishments. |
|
Hygiene of personnel |
Disinfection |
Hygiene of personnel |
Cooling |
Hygiene of personnel |
Hygiene of personnel. |
|
Use of water |
- |
Ante and post-mortem inspection and hygiene handling |
Hygiene of personnel |
Hygienic handling of products |
Hygienic handling of products. |
|
Sewage contamination |
- |
Hygienic handling of products |
Do. |
Do. |
Do. |
|
Control of use of agricultural pesticides |
- |
Monitoring of agro-chemical residues. |
- |
Microbiological monitoring |
Labeling. |
|
Control of use of veterinary pesticide, antibiotics, hormones. |
- |
Monitoring of residues of antibiotics, hormones, etc. Microbiological monitoring Labeling. |
- |
Labeling |
- |
*Source : Dr. Kevin D. Walker, Director, Agricultural
Health, HCA/HQ.
Prepared for World Bank Rural Week Conference :
Political Dimensions of Food Safety. Trade and Rural Growth, March 26, 1999.
Economic Aspects of Flower Marketing in Srirangam,
Trichirapalli, Tamil Nadu.
--------------------------------------------------------------------------------------------------------------
-M. PERUMAL*
India’s main advantage is
the availability of natural resources and cheap labour force. They substantially reduce the overall cost of
production. In any agri-enterprise more
particularly floriculture used for aesthetic purposes rather than food value,
quality is the bottom line. Acceptance
of flowers and the floricultural products in the world market has established
our quality. An important point to
consider is that we had a head start of serial years. Most of these countries do not have the same
trade restrictions like import duty as we have.
Floricultural was practiced only on small farms but now a
few large ones have been set up. The
estimated area under flowers is 6,50,000 hectares, the major states being
Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh and Maharashtra. It must, however, be mentioned that in view
of small size of flower farms often the correct area is not reported.
Traditional flowers, such as marigold, jasmine,
chrysanthemum, china aster, cross and tuberose,
usually marketed loose, occupy nearly two thirds of the area, the rest being
under contemporary flowers such as rose gladiolus, carnation, tuberose and
orchids used in bouquets and arrangements.
Production is estimated to be nearly three lakh tonnes of flower and
over 500 million cut flowers-rose chrysanthemum and tuberose are used in
loose farm and also
with stem.
Setting up of export oriented units in the field has emerged
a viable commercial enterprises. Nearly 75 such projects covering an area of
150 hectares have been set up around Pune, Bangalore, Delhi and Hyderabad with
technical support from collaborators mainly from Holland and Israel. Most of these units have identified rose as
their products, though some units are for production of orchid, anthurium, carnation
and gladiolus.
Marketing of flower is still disorganized. They are brought to wholesale markets in
major cities but are not packed scientifically during transportation. Post-Harvest management for domestic markets
is virtually a unheard of. For export
markets, the units for their for pre-cooling, cold
storage and refrigerated transportation.
Wholesale flower markets and even retail shops in cities
exist in open yards. In some places
there is no overhead cover to protect them from adverse weather
conditions. The
affects the life of produce. In
most of the wholesale and retail market outlets, there is no cold storage
facility available. This leads to
spoilage.
------------------------------------------------------------------------------------------------------------
* S.G. Lecturer in Economics, Urumu Dhanalakshmi College, Trichirapalli-19, Tamil nadu.
In view of the unorganized set up, it is not possible to
correctly access the markets size for flowers.
A study conducted in 1998 estimated the trade to be worth Rs. 205 crores
a year. Considering the significant
growth of this industry since then, which is evidenced by mushrooming of flower
shop all over the country and increased purchase of flowers as gift items, one
can put the current trade at several times the earlier estimate. A recent study of the Delhi Market alone put
the value of flowers traded wholesale at Rs. 50 crores a year.
Export oriented floriculture has picked up recently. The earnings have increased from Rs. 14.4
crores in 1991-92 to Rs.201.1 crores in 1998-99. Dried flowers and plants have a two-third
share of these markets, followed by the cut flowers (17 percent) and live
plants (13 percent).
Cut flower exports have increased 25 times to Rs. 10 crores
a year. Major markets for Indian
floriculture products are Europe (Holland, Germany and the U.K.). U.S. Gulf countries and
Japan. Cut
flower exports to Australia has also begun.
In Tamil Nadu, flower production and marketing acquired
importance because of the different uses of flowers. Flower business today is vital. There are more than 200 families engaged in
flower business in Srirangam alone.
The demand for flower is going up not for traditional use
also for other purposes. The wheels of
flower marketing are now rotating with increased speed because new uses of
flowers have been invented recently, so marketing aspects of flowers should be
paid immediate attention..
In Trichy District, flower
cultivation is being done by large number of farmers in more than 5,000
families of 50. The main flower
cultivation centers in Trichy District are Ettarai, Koppu and Srirangam.
Srirangam is not only
famous for Asia’s biggest Raja Gopuram but also important Vaiashnavate temple
Sri Renganathar in the area or alluvial soil found in and around
Srirangam. Flowers are largely grown
with the help of the Holy River Cauvery.
The research focuses
marketing methods of flower growers and their problems. In general, it is an elaborate analysis of
flower marketing and functional efficiency among different channels of
marketing.
Besides regular supplies
from the above town flowers are coming to Srirangam market from Salem,
Thanjavur, Thiruvarur etc.
The
present study is intended to find out the following objectives
:
Flower is considered as a
pious symbol. It occupies a pride
position in the Indian heritage. The
cultivation aspects of flowers is only for earning
profit in quicker period of time. This
study is an immense importance in the sense of that it projects the marketing
problems of flower growers of Srirangam area.
The comparatively high cost marketing of flower coupled with higher
price pushed up the market prices making it difficult for large segments of the
populations. It is well known that a
significant portion of the price of flowers in the studies area comprises of
marketing costs and marketing costs and marketing margin. It is definitely a good attempt by the
researcher to project the various marketing costs of flowers and the need for
Government’s intervention in this trade.
IV Limitations
Like all researches, this
research also faces some constrains.
This study is confined only in the Srirangam area alone. Even though this area is a vast in
geographical coverage this study exclusively deals with area where flower are
cultivated. Most of the growers in this
area are illiterate and they have provided the information about cost and
revenue which are only in their memory.
They have not maintained proper records.
Any how on the basis of the data this research is undertaken. Hence the result of the experiments not at
all affected too much.
Channel
I
Producer-Wholesalers-Retailers-Consumers.
Producers
Share
The total
volume of goods handled by the producers for marketing.
Traders
Profit
Profit is the residual
portion of deducting total expenses from total revenue.
Marketing Costs.
Different costs like
transportation, loading, unloading, keeping hands, storage, packaging materials
and plucking of flowers cost etc.
Functional
Analysis
Functional analysis is the
one in which it expresses the percentage of marketing margin and percentage of
consumers rupees among different marketing costs in a particular period of
time.
Marketing Efficiency.
Marketing efficiency is the
ratio of net value of goods marketed i.e. volume of goods marketed at minimum
cost of marketing.
Analysis
and Discussion
In general, flower sale is
carried on through auction in every flower market and Srirangam market is not
an exception to this. Hundreds of flower
growers from various place bring flowers to this
market for sale. In the market there
will be a number of traders who are otherwise called as commission agents. In Srirangam flower markets there are many
traders. Actually they are the ones who
conduct the auction. For conducting the
auction they take 12% commission from the sale proceeds of each producer. In this market the producer cannot directly
sell this flower to the retailer but only through these
trader. Another secret is also
there, that is the grower cannot sell his flower through any trader as he
likes. On the other hand they should effect the sale through that rrade to whom they are the
customers. The traders keep their
customer under their grip by lending them a lump sum before beginning of the
season for the cultivation of the flowers.
Through there are many traders in Srirangam market only five are
controlling the whole market and the others are there only for name sake. As these five traders are more
well off, they are able to have more customers as stated by the methods.
A large number retailer
will assemble there. In Sriangam market
around 1,000 retailers take part. Price
for each flower per unit of measurement will be determined by the highest bid
in the first sale. In
other words the highest for the flower for that day. For instance in the case of jasmine sale if
the highest price quoted for “Oru Kai” in the beginning the auction is Rs. 4
then that becomes ruling price for the whole session. Large number of buyer
(retailer) attend early hours of the day. A few producer may
bring their flowers late. (After 11 a.m.) to this
market. But at that time there will not
be enough number of buyers (retailer).
Since the retailer have to carry the flowers to their residences and get
them tied in order (which takes a long time) and take them for selling spot
around 3 p.m. to start their evening sale they prefer to buy the flowers in the
early session itself, so that they could start their retail sales in time (Peak
Shopping Time). As a result of poor
number of buyers to growers who bring flowers late to the market are able to
get only low price for their flowers.
From this it is understood that for the same flower two prices are
quoted, one during the peak action session and other during 11 a.m. to 1 p.m.
generally the price for the late arrivals would be half of the morning price.
In and around area of
Srirangam is well suited to agriculture are conducive for flower
cultivation. Locally enough flower
cultivation is begin under taken as a product of liner-cropping some hereditary
flower growers were found in the Trichy District.
TABLE-I
Number of flowers per kilogram
|
S. No. |
Name of flower |
In numbers (app.) |
K.G. |
|
1 |
Rose |
700 |
1 |
|
2 |
Jasmine |
4000 |
1 |
|
3 |
Crossandra |
10000 |
1 |
|
4 |
Marigold |
1250 |
1 |
|
5 |
Bachelor’s
button |
500 |
1 |
The following Marketing
channels have been identified and take into consideration with reference to
Srirangam market purposively.
Channel-I
Producers, Wholesalers (Srirangam), Retailers
(Srirangam)-Consumers.
Channel-II
Producers-Wholesalers-Retailers-Consumers.
Channel-III
Producers-Local Consumers.
By marketing margin or
spread on a particular product is meant “the difference what the farmer gets
for it and what the final consumers pays.
This margin includes all the cost of moving the point of production to
the point of consumption. Thus the
farmer receives what the consumer pays for the product after the various costs
of marketing are taken into out. This
residual amount expressed as a percentage of the retail food rupee is referred
to as the farmer’s share.
Channel-wise Distribution of Sample.
Farmers
for Flowers
Table-II
|
Channel |
Marginal Farmer |
Small Farmer |
Semi-medium Farmer |
Medium Farmer |
Large Farmer |
Total |
|
I |
5 |
4 |
4 |
3 |
- |
16 |
|
II |
10 |
3 |
3 |
4 |
5 |
25 |
|
III |
3 |
3 |
2 |
1 |
- |
25 |
|
IV |
18 |
10 |
9 |
8 |
5 |
66 |
It is evident from the
table I, that 32 percent, 50 percent and 18 per cent of the sample farmers have
performed their marketing function through channel I, Channel II, and channel
III respectively. Most of the small
sized group pf farmers have performed their marketing functionaries via channel II as
channel I and channel III are based on local consumption. As big farmers are engaged with larger volume
of business, channel-I is being preferred by
them. It can be revealed from the table
that as number of farmers in channel II is the highest, it can be concluded
that as number of farmers vary directly with the length of the channel.
Channel-wise
price-Spread of flower in the sample area (measured as percentage of the
consumer’s rupee)
Price
spread of flower in different channel is ensured and analysed. (This is shown in Table-III).
Table-III
|
Marketing channel |
Producer’s share |
Marketing Margin |
Marketing Cost |
Traders Profit |
Consumer’s Rupee. |
|
Channel-I |
69.74 |
30.26 |
10.22 |
20.04 |
100.00 |
|
Channel-II |
45.19 |
54.81 |
26.76 |
28.05 |
100.00 |
|
Channel-III |
90.19 |
9.09 |
- |
- |
100.00 |
In channel-I, the
producer’s share is 69.74 percent of the consumer’s rupee. Marketing margin, marketing cost and trader’s
profit are 30.26 percent, 10.22 percent and 20.04 per cent of the consumer’s
rupee respectively
In channel-II, producers
share is 45.19 percent of the consumers rupee. Marketing margin and marketing cost and
trader’s profit are 54.81 percent, 26.76 percent and 28.05 percent of the
consumer’s rupee respectively.
In channel-III producers’
share and marketing margin are 90.19 percent and 0.09 percent of the consumer’s
rupee respectively. Since in this
channel, there is direct sale from producers to local consumers, there is no
trader’s profit and marketing margin. It
includes only marketing cost which is incurred by the. producers.
From this study we may
analyze the functional analysis of the marketing margin of channel-I per 100 flower at Srirangam market is shown. The functional analysis show that trader’s
profit comprises of 66.23 per cent of the marketing margin. The margin for transportation is less than
that of trader’s profit it is 18.54 per cent of the market margin. Spoilage accounts 5.3 percent, loading and
unloading accounts 2.65 percent, 3.97 percent of marketing margin account as
cost of helping hands. Costs of packing
and storage are 1.99 percent and 1.32 percent to the marketing margin
respectively.
TABLE-IV
Functional Analysis of the
marketing margin per 100 number of flower at Srirangam wholesale and retail
market.
|
S. No. |
Service |
Cost (Rs.) |
% of the marketing Margin |
% of the consumer’s Rupee. |
|
1 |
Transport |
7.00 |
18.54 |
5.61 |
|
2. |
Loading
& Unloading |
1.00 |
2.56 |
0.80 |
|
3 |
Helping
hands |
1.00 |
2.65 |
0.80 |
|
4 |
Storage |
0.50 |
1.32 |
0.40 |
|
5 |
Trader’s
Profit |
25.00 |
66.23 |
20.85 |
|
6 |
Packaging
Materials |
0.75 |
1.99 |
0.60 |
|
7 |
Spoilage |
2.00 |
5.30 |
1.60 |
|
|
Total |
37.75 |
100.00 |
31.46 |
In the Table-III the
functional analysis of the marketing margin of channel-I per 100 flower at Srirangam market is shown. The functional analysis show that trader’s
profit comprises of 66.23 percent of the marketing margin. The margin for transportation is less than that
of trader’s profit it is 18.54 percent of the marketing margin. Spoilage accounts 5.30 percent, loading and
unloading accounts 2.65 percent, 3.97 percent of marketing margin account as
cost of helping hands. Costs of packing
and storage are 1.99 percent and 1.32 percent of the marketing margin
respectively.
Functional analysis of
channel-II is shown in Table-IV.
Transport cost comprise of 18.6 percent of the marketing margin. Loading and unloading is 1.42 percent cost
of packing, accounts 1.66 percent.
Storage accounts 0.47 percent.
Spoilage accounts 5.92 percent. 5.69
percent of the marketing margin accounts as rent and other charges. Cost of handling in the market comprises of
12.80 percent and 51.18 percent of the marketing margin. It is evident from the Table-V that index of
marketing efficiency is observed to be more in Channel-I i.e. when marketing
functions is performed within the village. This may be due to higher producer’s share
and lower cost of marketing in channel-I.
It is noted from the Table-V that marketing efficiency decreases with
the increase in the number of intermediaries.
Channel-wise Marketing
Efficiency.
Index for Flower Table-V
|
Marketing Channel |
Value of goods (Consumer’s price) |
Total marketing cost 1 (Rs.) |
Index of Marketing efficiency. |
|
1 |
124.75 |
12.75 |
8.7843 |
|
2. |
192.50 |
51.50 |
2.7379 |
|
3. |
110.00 |
10.00 |
10.00 |
From the above study it may
be concluded that flower is a common and popular item consumed at a high rate
in winter season in our country. On completion
of careful study on marketing aspects of flower, it is found that number of
trader farmers directly varies with the length of the channel.
1.
Marketing of flowers in
Srirangam is the profitable business because in and around Srirangam, a larger community of farmers are engaged in producing as
well as selling the same.
2.
Rose, jasmine,
Marigold, Crossandra and Delhi Kanagambaram are the common varieties which are
highly grown in the studied area.
3.
There are 3 channels of
marketing followed by the farmers in this area.
4.
The sample number of lower growers are 50 among the sample sizes, it is
found that majority are the group of margin farmer i.e. 18.
5.
The reason attributed
for the fact is that the flower farming requires only a lesser amount of capital. Hence, their work force on agriculture also
adds up to secure more profit.
Suggestions
To improve the overall
marketing activities of flower, keeping in mind, both the producers and
consumers at the same time, the following suggestions may be accorded
:-
1.
Government should take
the immediate initiatives in the field of production and marketing activities
can be carried out under the supervision of the appropriate agencies.
2.
Regulated market to
some extent can do the needful to redress the grievances of producers as well
as of consumers.
3.
Cold storage facilities
can play an important role to store the surplus produce in the glut period and
to supply those in the lean season.
4.
Installation of
processing industry should be done immediately in order to serve the processes
products to the consumers throughout the year at a cheaper rate. Cheap processing techniques should be evolved
to minimize the cost of processing.
5.
Well connected network
transport facilities at least throughout the state should be developed for
efficient marketing system.
6.
Producers of flowers
should be encouraged with and timely supply of inputs and credit for better
performance in the yield of commodity.
7.
The Government should come
forward to announce the minimum pricing policy so as to adjust the price
variation and also to save from them in huge loss.
Bibliography
1.
Amarchand D. and
Vardharajan B., An Introduction to
Marketing, Vikas Publishing House Pvt. Ltd., New Delhi, 1979.
2.
Davar R.S. Modern
marketing management in the Indian context progressive corporation private
Limited, Bombay, 1977.
3.
Davar R.S. Davar, S.R.
and Davar N.R., Salesmanship and advertising, Progressive corporation
Private Limited, Madras, 1979.
4.
Giles G.B. Marketing, The English
Language Book Society, London, 1978.
5.
Kotler Pilip, Markeitng
Management Analysis, and control, Prentice Hall of India Private Ltd., New
Delhi, 1979.
6.
Shelekar S.a. Modern
Marketing Principles and Practices Himalaya Publishing House Bombay, 1981.
7.
Shinha J. Cc.Principles
of Marketing and Salesmanship, Chand & Co., New Delhi, 1977.
---------------------------------------------------------------------------------------------------------------------
Marketing Intervention in Shimla
District
------------------------------------------------------------------------------------------------------------
-G.H. DHANKAR*
LALLAN RAI.
Shimla District lies
between the longitude 77 45 55 E to 79 04 20 and latitude 30 22 40 N to 33 12
40 N and is bounded by Mandi and Kullu districts in the North, Kinnore in the
east, the state of Uttar Pradesh in the south, Sirmore district in the south
and by Solan district in the west. From
agricultural point of view, the district comprises (i) valley and basin areas;
(ii) mid hills and (iii) high hills. It
occupies a place of pride in horticulture in the country. During the last 20 years, there has been a
silent but noticeable revolution in the sphere of horticulture in the
district. The gentle slopes of hills
have underdone a good deal of modification due to terraced farming. Soil texture varies from light sandy to heavy
clay and in the deep valleys and basis, it is
generally sandy and sandy loam. It is
the biggest apple growing district in the state and has earned a name for
Propagating a
rich collection of many delicious varieties of apple. Apples are grown on
83% of horticultural land in the district.
The main commercial varieties grown are Royal Delicious, Rich-a-Red, Red
Delicious and Golden Delicious. The
other fruits viz. pears, peaches, apricots, plums, etc. are also grown.
Marketing System and Agencies
The
present study concentrates on marketing interventions for apple and off season
vegetables which are main source of earnings for the growers. In apples, a number of market intermediaries
are involved in transfer of produce from the growers/orchardists to the final
consumer. The picking of apple is
commonly done manually and fruit is placed in a padded basket locally known as
‘Kilta’ to avoid bruises. Generally, the
picking maturity of fruit is judged by change of colour, size of fruit, feel of
hand and growers’ experience. The picked
fruits are transported from orchards to the place where grading and packing is
done. From ‘Kilta’, each fruit is taken
out, graded and placed in different lots.
3. Grading is of two types : (a)
quality grading; and (b) size grading.
The colour of fruit freedom from injuries, disease, spots, blemishness
are the important factors which classify the fruit into three quality grades as
A,B,C,A and B grade apples are marketed for dessert purpose, whereas C grade is
sold for processing purposes. After the
fruit is graded according to quality, it is then graded according to the
size. The grading parameters with regard
to various size grades of Himachal apple are :
------------------------------------------------------------------------------------------------------------
*Dy.
Agricultural Marketing Adviser and Senior Marketing Officer respectively,
Directorate of Marketing & Inspection, Head Office, NH. IV.,
Faridabad – 121001.
|
S. No. |
Name of grade |
Minimum diameter of fruit at any point of the base. |
|
1. |
Super large (super) |
81 mm |
|
2. |
Extra large (special) |
75 mm |
|
3. |
Large (fancy) |
69 mm |
|
4. |
Medium (selected) |
63 mm |
|
5. |
Small (commercial) |
57 mm |
|
6. |
Extra small (janta) |
51 mm |
|
7. |
Pittoo |
45 mm |
Size grading is based on judgment
through fingers of grader/producer.
Individual fruit is then wrapped in a paper and put in the packing
box. Each fruit gets handled 5 to 6
times before it is ready for dispatch to consuming markets. The packing of fruit is mostly done in CFB
cartons of 17-20 Kg. These boxes are
supplied through different agencies like Directorate of Horticulture, HPMC,
HIMFED, etc. at subsidized rates. In
some cases, wooden boxes of same capacity are also used which are imported from
the neighboring states of Punjab/Haryana owing to ban on use of timber wood in
the state.
4. The local consumption of apple is estimated at less than 2%
of the production. The balance produce
is marketed outside the state. The
various modes of transportation used from orchards to road heads are mule,
human labour, rope ways and tractor/jeep, whereas, trucks are the primary mode
of transporting apples to terminal markets.
The average transportation cost of apple from farm to road head (per
standard box) for mule, human labour, ropeways and tractor/ jeep is Rs. 5/-,
3/-, 2/- and 1/- respectively.
Similarly, from road head to market (per standards box) cost varies from
Rs. 10 to 40/- depending on the distance.
For Delhi, Bombay, Calcutta, Madras, Chandigarh and Jallandhar, it is
respectively Rs. 15.00, 30.00, 35.00, 40.00, 10.00 and 12.00. With a view to protect from exploitation by
transporters to growers, during the season, the State Government prescribes
transport cost per box from various producing pockets to Delhi which is a major
outlet for apples. The rates prescribed
for Shimla district are indicates at Annexure-I.
5. On an average, an apple grower does not market apple enough
to justify hiring of a truck on his own.
The produce is, therefore,, transported along
with the produce of other farmers by arranging trucks through a common
pool. There are forwarding agencies who receive farmers produce and forward to designated
commission agent in Delhi through truck transport. Forwarding agent charges separately for his
services. In peak apple season, there is
Government intervention in pooling and arranging of trucks in time at
pre-decided freight charges, to make timely transport available for quick
dispatch of produce in the consuming markets.
Transportation through railways is cheap, but availability is
insignificant. In most of the producing
areas, there are no link roads properly connected with the road heads. This causes delay in transport of fruits,
adversely affecting the quality.
6. Distribution of
apples is done through a number of market in channels. These are :
a)
Producer – Pre=harvest
contractor;
b)
Producer-Forwarding
Agent-Commission Agents-Wholesaler-Retailer-Consumer;
c)
Producer-Commission
Agent/Wholesaler-Retailer-Consumer;
d)
Producer-HPMC-Wholesaler-Retailer-Consumer;
e)
Producer-HPMC=Processing
Unit-HPMC retailing of juice;
f)
Producer-Consumer.
The channel ‘c’ is common
in distribution of fruits followed by channel ‘b’ and ‘e’ respectively. The channel ‘a’ is being replaced by ‘b’ and
‘c’ progressively. For procurement of
culled fruits, Directorate of Horticulture and HPMC have opened seasonal
centers in the apple producing belts and these fruits are procured for
processing purposes from the producers directly under Market Intervention
Scheme. Losses in the scheme are shared
by Government.
7. As many as 75% of the growers market
their produce themselves. The balance
25% growers give contract of their orchards to pre-harvest contractors. The contractors evaluate crop on the basis of
fruit setting, its quality and estimated production and pay the amount in 2 to
3 installments to the growers. In this
system, growers do not take care of orchards as they do, when they maintain
orchards themselves.
8. Delhi is main market for apple where
more than 80% of produce is dispatched from the district. In the beginning of the season, most of the
commission agents who are wholesalers also, approach orchardists and advance
loan to ensure the sale of fruit through them.
The growers receive their sale proceeds after deduction of the money
advanced with other market charges.
9. Himachal Pradesh Horticultural Produce
Marketing Corporation (HPMC) is the major government agency involved in apple
marketing. It has created 10
packing/grading houses, 5 cold storages and 3 processing plants in the
State. Its role today, however, is
restricted to procure the processing grade fruits for its processing plants and
market the fruit juices, jams and squashes, etc. It has cold storages, located in terminal
markets of Delhi, Mumbai and Chennai. It
has also one at Parvanu. The fruit
processing plants are located out of Shimla district. When HPMC finds it difficult to process all the processing grade fruit procured, it supplied the
same to markets for consumption in fresh form.
This amounts to spoiling of market for quality fruits as consumers tend
to buy cheap. Good quality prices
crashed when HPMC took such steps distorting the market price mechanism. Although the Corporation has experience in
post-harvest management of fruits it probably lacks in business acumen. There has been gradual decrease in its
activities and increase in losses. The
capacity utilization of grading and packing houses is abnormally low. HPMC attributes the dismal low utilization to
removal of free transport facilities available earlier to the growers through
it. Moreover, habits of proper grading
and packing to suit buyers market is yet to be inculcated in the system as a
whole.
10. The HPMC’s main mandate is to provide proper marketing
facilities in apple marketing and develop modern and latest technology for
grading, packing, storage and processing of fruit and vegetables. The Corporation has done better in the
beginning by setting up of grading and packing houses, cold storages etc. but
subsequently got ousted from active marketing.
During a visit to one of the grading and packing centers and cold
storages complex at Jarol (Tikri) in Narkanda block, it was gathered that the
producers are not bringing apples in sufficient quantity in the season due to
scattered, hilly and distant producing regions which add more cost towards
transportation from the producing area.
Besides, bringing produce from producing area to grading and packing center
is time consuming, one has to wait for his turn to get
produce graded having reached the place.
Apple marketing season being very short, the supplies are immediately
made to the terminal market to get better returns and avoid losses. The cold storage visited is not fully
utilized and HPMC has diverted its utilization to mushroom cultivation by
undertaking suitable modifications in it.
Presently, Corporation is engaged in supply of CFB catrons
at subsidized rates to the growers and operation for price support scheme for
‘c’ grade apples as parastal agency.
11. The Directorate of Horticulture is responsible for the
development of horticulture in the state,. It runs a number of schemes like supply of
good quality plant material, insecticides, pesticides, tools and kits, latest
spray, equipments and implementation of market intervention scheme. It also undertakes supply of CFB cartons to
the orchardists. The Directorate
facilitates running of ropeways at different locations depending upon the
requirements of the growers in the season.
It maintains liaison with other institutions like HPMC, HIMFED, etc. to
coordinate integrate efforts of public sector organisations in marketing of
horticultural produce.
12. Directorate of Agriculture supplies quality vegetable seeds
and insecticides, pesticides, fertilizers, etc. to the growers. There is no independent agency looking after
proper marketing of vegetables produced in the district. The vegetable trade is purely in the hands of
private sector. The produce is
dispatched to markets of neighbouring states by the producers themselves. The ills prevalent in apple marketing exist
in marketing of vegetables also. But, being available in off-season. Vegetables fetch good returns to
producers. Delhi is again major outlet
for the produce. In Shimla district
though there are six regulated markets, only three are functional. Dispatches of vegetables made to Azadpur
market are commonly through forwarding agents who arrange trucks and collect
the vegetables from different road heads.
The consignment is delivered to the designated commission agent at
Delhi. There are also direct dispatches
to local market at Dhalli (Shimla) especially of peas, cabbage and
cauliflower. Vegetables are auctioned in
Dhalli regulated market through making different lots at the auction
platform. The buyers at Dhalli send the
goods purchased to Delhi and other nearby towns. The producers adjoining Uttar Pradesh in
Chopal block normally take produce to Dehradun, Haldwani markets which absorb
produce at fairly better price during peak period. There is one Subji Mandi in Shimla near the
Mall, where six to seven trucks of vegetables arrive daily. There are thirty two commission agents
functioning, having there own offices/shops in the market. The place is severely congested and
inhospitable to the market users, APMC, Shimla has no control on the marketing
practices although it collect market fee regularly from this place. The commission agents maintain their godowns
at distant places to store onion and potato received from outside the
State. Fresh vegetables generally arrive
from neighbouring States, apart from the local arrivals of off-season
vegetables.
13. For realization of better returns from the vegetable crops, right
stage of their picking is equally important as in the case of apple. In Shimla, with replacement
of cereal crops by off-season vegetables to raise the income level of the
farmers. Theog, Kuandaghat,
Pachhat areas have taken up cultivation of peas, cauliflower, cabbage and
tomato, using high yielding varieties.
Hardly, 3 to 5 per cent is retained and rest of the production is
marketed. Picking of peas, cauliflower,
cabbage, tomato is generally done by hand based on experience of pickers. Improper handling and
picking lead to wastage of vegetables in transit and deterioration in quality,
adversely affecting the net cash returns to the grower. Grading and packing according to specific
quality to the grower. Grading and
packing according to specific quality standards in vegetables to enhance their
marketability is not scientific.
Educating producers about reducing marketing costs, avoiding wastage
through proper grading is yet to be undertaken.
A large number of growers do not appreciate the significance of proper
post-harvest handling even now. Packing
is done in traditional gunny bags/baskets by putting leafy waste material as
padding at the top of the container at the time of sticking bag/baskets covered
with gunny sheets.
14. The cost of marketing of a box of apples or a bag of
vegetables (cabbage, cauliflower, peas, tomato, etc.) from the producing areas
to the wholesale market can broadly be broken into :
(i) Cost of grading; (ii) cost of packing; (iii) Loading, unloading charges at
road-heads; (iv) Marketing charges at wholesale market including labour; (v)
Transportation cost; (vi) Commission of the various functionaries; (vii) Taxes,
etc. Some of these costs are borne by
the producers; some by the wholesalers and some by retailers. Average marketing cost per standard box of
apple and per standard box/bag of vegetables from producing area to Azadpur
market, Delhi borne by producer and net price received by him are as indicated
below :
Producer’s net price, marketing
cost borne and share in consumer’s rupee in apple and vegetables (upto Azadpur,
Delhi)
Marketing channel
: Producer-Forwarding/Commission agent (WS)-Retailer-Consumer
Variety : (i) apple-Royal Delicious.
(ii) vegetables- FAO quality.
(Rs. Box/Bag)
|
Sl No. |
Particulars |
Apple |
Cauliflower |
Cabbage |
Pea |
Potato |
Tomato |
|
1 |
Gross price received by the
grower. |
530.00 |
300.00 |
250.00 |
500.00 |
200.00 |
60.00 |
|
2 |
Market expenses borne by the
grower |
176.40 |
83.00 |
95.00 |
103.00 |
122.00 |
34.60 |
|
3 |
Net price received by the grower |
353.60 |
217.00 |
155.00 |
497.00 |
78.00 |
25.40 |
|
4 |
Producer’s share in consumer’s
price |
51.40% |
57.87% |
44.29% |
62.13% |
31.20% |
31.75% |
15. It is pertinent to note that there are hidden costs borne by
the prodders/sellers. They include
excess charges on transportation, commission, loading/unloading, payment of
sale process in cash on the spot, entry gate fee in the market and, over and
above, the
state border authorities. Shimla apples after leaving the state passes through states of
Haryana and NCT of Delhi before entering the market. The truckers who often negotiate with check
posts recover the amount from producers.
Whatever and wherever any excess is charges or paid is debited to
producer-sellers account. Following
table provide a rough idea at conservative estimates about the hidden costs at
various stages in respect of a sample case calculated for an individual box/bag
of apple and cabbage respectively.
Marketing cost per box/bag of
Apple/Cabbage borne by the producer upto Azadput, Delhi.
|
Sl.
No. |
Items |
Apple
Marketing cost/box (20 kg.) Normal |
With
hidden cost conservative estimates |
Cabbage
Marketing cost/bag (50Kg) Normal |
With
hidden cost conservative estimates. |
|
1 |
Cost
of Grading/packing |
12.00 |
12.00 |
5.00 |
5.00 |
|
2 |
Cost
of Box (CFB) |
45.00 |
45.00 |
15.00 |
15.00 |
|
3 |
Transportation
cost upto loading point in the orchard |
2.00 |
2.00 |
- |
- |
|
4 |
Forwarding agents commission |
1.00 |
1.00 |
2.00 |
2.00 |
|
5 |
Transportation cost upto road
head |
10.00 |
10.00 |
15.00 |
15.00 |
|
6 |
Loading and Chaukidari |
2.00 |
2.00 |
2.00 |
3.00 |
|
7 |
Transportation cost upto Azadpur
Market |
20.00 |
20.00 |
28.00 |
28.00 |
|
8 |
Octoroi |
2.00 |
2.00 |
2.00 |
2.00 |
|
9 |
Market fee at Parwanu |
2.00 |
2.00 |
1.00 |
2.00 |
|
10 |
Dalla/Unloading |
1.00 |
2.00 |
1.00 |
2.00 |
|
11 |
Commission @ 6% |
30.00 |
40.00 |
15.00 |
20.00 |
|
12 |
Gate pass at APMC |
5.00 |
5.00 |
5.00 |
5.00 |
|
13 |
Misc. Expenditure (Telephone,
Postal Dharmada, etc.) |
- |
4.00 |
- |
- |
|
|
Total Cost |
132.00 |
147.00 |
92.00 |
102.00 |
16. A cursory-glance at the table above reveals high incidence of
marketing cost borne by the producer. It
is the high on account of packaging, transport and market charges. As fruit and vegetables are highly perishable
and the duration of marketing season short, there is pressure on demand for
transport and supply of packaging material.
The producer has no option except to pay high rates on this
account. He can
not even complaint for fear of losing the service and deterioration of
produce. Despite restriction of the
market-charges by the Agricultural Produce Market Committee under its Act, the
incidence of higher charges on account of loading/unloading, dalls, commission,
and other expenses like-telephone, postal, dharmada, etc. are common for the
producers. An estimate of such hidden
cost paid to different market functionaries per box of apple and bag of
vegetables account to the extent of Rs. 15-20 or even more, compared to what
should have normally been paid. This is
only a conservative estimate and the hidden costs may go high at the time of
peak marketing period. The magnitude of
the problem can be judged if the difference between “should have been” normal
cost and “recovered” actual costs is looked into. For example, during 1998 season Shimla
district alone dispatched 116.38 lakh boxes to Delhi as against a total
dispatch of 177.14 lakh boxes from the State.
At a conservative estimates of Rs. 15/- per box as hidden cost a total
sum of Rs. 17.46 crores has gone unauthorisedly into pockets of middlemen by
robbing the producers. For the state
this figure comes to Rs. 26.57 crores during a year, rather a season. This amount of hidden cost at such a high
level of Rs.
17.46 crores and Rs. 26.57 crores has been a net drain on income of producers
from the district and the state, respectively. Unfortunately this drain has
been continuing since several years-rather right from the beginning of apple
marketing.
17. Shimla farmers are not free in real sense to sell their
produce in different markets due to their credit bondage with the commission
agents for years. They are bound to sell
their produce to such fixed/pre-decided buyers without any say with regard to
competitive prices or transparency in price formulation or excess cost, leave
aside the hidden costs. They consign their
produce to such buyers either through forwarding agents or directly till they
settle their advances. In Azadpur
market, ‘Delhi, the prescribed commission rate is 6% for perishables but in
practice, it is charged at the rate of 3% i.e., 2% more under some account to
compensate the money already given in advance to the growers before fruit
setting/sowing of the crop in case of apples and vegetables respectively. This amounts to hidden interest “Costs” for
producers. Large farmers, who are not
under credit obligation of Delhi trade are selling
their produce to different markets to get better price. Institutional credit availability is almost
absent. The lack of credit facilities to
the small and marginal farmers force selling to such traders, jeopardizing
their economic interests. Radical changes/improvements
in conditions at Delhi would benefit farms more than anything else.
18. The off-season vegetables grown in Shimla district have become
high value cash crop for farmers. Most
of them are consigned to the Delhi Market.
Being highly perishable, they require timely and quick transport. Freshness and its quality are the governing
factors for better price realization at the time of their sale.
19. Based on the enquiries from the producers of apple and
vegetables an attempt was made to arrive at the total marketing cost borne by
different producers-when they market their produce from their producing areas
to the terminal market Delhi. The
marketing cost varies from Rs. 132.00 per box in case of apple to Rs. 83/- pr
box in case of cauliflower, Rs. 92/- per box in cabbage, Rs. 103/- per box in
Pea, Rs. 32.80/- per basket of tomato and Rs. 122/- per bag of potato. It is observed that major cost goes on
account of transport, packaging material and commission paid to commission
agents.
20. During the course of discussions with farmers in different
production pockets, it was found that most of the farmers were against the
subsidy component provided by the Government on various items like packaging
material, planting material, pesticides, insecticides, hailnet, etc. They favoured soft loans to them instead,
well in time, so that they can arrange facilities for them without any
hindrance. The general perception of the
growers in the area about overcoming their marketing problems lied in :
21. Different marketing interventions are so integrally related to
each other that taking up any of them in isolation would dilute their benefit
effect. The interventions, however, have
been classified to facilitate focused attention on specific segment viz.:
22. Although vital to district’s economy, apple crop is
characterized by low productivity, widely fluctuating annual production, low
quality of produce, expensive labour and low financial returns per production
unit. The apple varieties grown are same
over a century and plainting material-used had made many orchards
overaged. Majority of fruits being of
same variety, the pressure of marketing of such fruits comes at a time and the
whole operations come to an end within a span of 60-70 days. In such situation, farmers get trapped into
distress sales or difficulties in arranging transport, labour other market
charges resulting into high incidence of marketing cost. Production specialists need to consider
gradual change in varietal composition of produce with emphasis on export
oriented varieties. Maturity
of fruits differ from one variety to another, which would facilitate,
staggered plucking and supplies at different intervals. Raising different varieties would also facilitate
proper pollination and after care.
Similarly, the varieties having different maturity period when grown
would facilitate harvesting at different intervals and in turn, would
facilitate smooth and profitable supply of fruit and vegetables to the markets
considering the prices prevailing.
Suggested interventions are :
need to be
popularized through farm demonstrations.
Orchards are required to be rejuvenated by planning innovative
varieties.
iv. Farmers, by
and large, expressed encountering of spurious fertilizers, insecticides and
pesticides. They strongly favoured
credit at concessional rate to facilitate quality purchase of inputs instead of
buying them subsidized system commonly implemented for their benefits.
v. Demonstrations
on “organic orchard cultivation” to explore extent of possible price advantage
to producers. This will enable to
popularise use of chemical fertilizers restricted to soil requirements
identified through soil analysis. Soil
testing mechanism on regular basis will have to be provided. This will ensure check/elimination of large
scale agro-ecological degradation of our orchards making them eco-friendly.
vi. Availability of good quality sketchers,
knives, small tillers, sprayers, etc. involved in rearing/maintaining
orchards.
viii. Provision
of availability of good quality seeds to growers in respect of off-season
vegetables grown, is a felt need.
23. Education and training to farmers (i) on maturity standards
for harvesting. Use of “Pressure
testers” to judge maturity of apple to facilitate packing of fruits with
specific level of maturity of apple to facilitate packing of fruits with
specific level of maturity for specific destination considering the distance to
be traveled by the fruits. (ii) to assess apple maturity based on “Starch-Iodine
Reaction”. Preparation
of iodine solution and comparing the tested fruits with starch chart before
dispatching apples to particular destination.
24. Facilities for testing pesticide residue
on fruits and necessary certification along with dispatch of consignments to
different markets.
25. Regular training to farmers with regard to :
26. Supporting setting up of grading and Packing Houses based on
feasibility in private sector preferable through local fabricators which may be
cheap. For every one lakh production
area, one house could be thought of.
27. Provision of ropeways for transportation
to collection points for dispatch to market centers. Standards related to thickness of wire
prescribed under “Ropeway Act” pose a bottle-neck in expanding ropeways in
linkages. This needs to be looked into
to hasten ropeway linkages.
28. Providing road conductivity for transport
trucks. In the absence of roads, trucks
have to carry consignments form interior pockets to dispatch points/dumps in
installments which amounts to exorbitant transport costs subsequently soaring
marketing cots.
29. In spite of Government intervention in
making available trucks at specified rates, the transporters dictate
their terms during the season. Increase
in transport cost (unofficial) reduces producers net earning during already
subdued market owing to peak arrivals in a short period. Possibilities of tie-up with transporters in
the private sector from outside government pool need to be explored to ease the
situation in favour of producers.
30. The concept of setting up cold storage
facilities nearer to the producing areas in workable, if a system of marketing
credit advance against stored box is available easily. The construction of small air cool stores at
farm or village level may also be considered as there are relatively more economical. Provision of simple functional warehouses at
higher altitude with pledge facilities could also solve storage difficulties
considerably.
31. Processing assumes critical importance in
the entire gamut of integrating marketing concept. In order to provide long term stable markets
and to deal with post-harvest gluts, the number and efficiency of processing
plants already existing in the district needs to be geared up. State Government may consider concessions in
taxes and duties of such products to make them cost-effective and competitive
in overseas markets as domestic markets for processed fruit and vegetables is
small, HPMC has a positive role here.
32. There is no market intelligence for
farmers of any kind. Producer dispatches
faithfully his produce to commission agents in terminal markets and collects
his sale proceeds at the rates as given to him.
He has no habit, or any scope to give a thought to prices prevailing in
different terminal wholesale markets. It
is essential to provide producers with day today market intelligence with
regard to arrivals, prices, market sentiments, supply/demand information, etc.
to the growers regularly so that they can think/plan for dispatches considering
where favourable market exists for them.
33. Institutional marketing credit is
conspicuous by absence. The producers
are predominantly dependent on wholesalers at terminal market who take full
advantage of their adversaries.
34. Sole Market linkage is Delhi’s Fruit and
Vegetables markets, Azadpur, which is ‘Azad’ to continue its
atrocious style in apple marketing.
A common characteristic to market low quality, low elevations crop early
to get better price spoils the market for high quality, high elevation
crop. Direct forward and backward
linkages are badly needed to reduce Delhi’s monopoly and free simple growers
from age old marketing atrocities. An
alternate marketing system could alone dilute Azadpur trade’s apple monopoly
and create competitive market for simple farmers. In the absence of alternate strategies, the marketing
of profitable off-season vegetables has also gone the apple-way. The possible interventions for profitable
assured market outlet could be :
35. District horticulture office being line
department, ATMA can avail its full involvement in training, education and
extension in post-harvest handling of apples and off-season vegetables. It can also play active role in disseminating
production technology, R. and D. and aspects related to horticulture
development, which is main stay of district’s economy.
36. It may not be out of place of point our her that ATMA needs to be known more to producers. It needs to be strengthened to achieve
effective integration of line department to plough it in input and output
marketing fields. True to its name ATMA
should be omnipresent in the district with full vigour. ATMA members, FAC people, FIG leaders, BTT
people should work WITH the growers instead of working FOR them.
37. The State Government needs to take up
contentious issues at Azadpur wholesale market with the concerned authorities
where the market charges prescribed under regulatory provisions are by and
large, followed on paper. Recovery in
excess of prescribed charges is inherent in the system. And all the atrocities are committed over and
above non-transparent transactional methods, compounding farmers woos. An estimation of hidden costs attempted while
endeavoring understanding of ground realities in the district is as presented below :
|
Sl.
No. |
Name
of the Commodity |
Unit
of package |
Marketing
costs at normal rates |
Marketing
cots with hidden costs at conservative estimates (Rs.) |
Marketing
with hidden costs at liberal estimates (Rs.) |
|
1. |
Apple |
Rs./Box
@ 20 Kgs. |
132/- |
147/- |
158/- |
|
2. |
Cabbage |
Rs./Bag
@ 50 Kgs. |
92/- |
102/- |
118/- |
|
3. |
Cauliflower |
Rs./Basket
@ 75 Kgs. |
83/- |
102/- |
116/- |
|
4. |
Pea |
Rs./Bag
@ 40 Kgs. |
103/- |
123/- |
129/- |
|
5. |
Potato |
Rs./Bag
@ 80 Kgs. |
122/- |
137/- |
148/- |
|
6. |
Tomato |
Rs./Basket
@ 10 Kgs. |
32.80 |
32.80 |
48.80 |
38. It is not that those concerned with
marketing are ignorant about atrocious marketing environment for apples and
off-season vegetables at Delhi. But
everybody feels helpless and remains a silent spectator. A clear evidence of such helplessness is fund
in the recent notification issued by the NCT.
Government of Delhi (Notification No. F8(19)/98
DAM/MR/152 date d13th January, 2000) which stipulates charging of commission at
the existing rate 6% from purchasers/buyers and not from the farmers/sellers
under the Delhi Agricultural Produce Marketing Regulation act applicable to
Azadpur A.P.M.C. The notification
remains to be implemented even 2 years after its issue. An alternative marketing strategy coupled
with credit support, could alone bell the cat for seeking justice to the
growers in the district.
39. Considering the liberalized economic
climate introduced in the country, development of alternate marketing
strategies with full/equal involvement of private sector would be conducive to
economic upliftment of growers of the district of Shimla. The existing legal provisions posing
bottlenecks to innovative marketing strategies for the country as a whole may
have to be looked into for necessary revision to pave way for new system to
take roots in the post WHO scenario in the country.
Transport
cost from various destinations of Shimla District to Azadpur, Delhi (1998).
|
Sl.
No. |
Place
|
17
to 20 Kgs. Transport
Cost (Rs.) |
|
1. |
Jubbal |
24.00 |
|
2. |
Mashobra
} Shimla |
13.00 |
|
3. |
Basantpur
} Shimla |
|
|
4. |
Narkanda |