Research Project

 Under Research Grant Scheme (Plan)

 

 

Name of the Organization                  :      Tamil Nadu Veterinary and Animal Sciences

                                                                  University, Namakkal – 637 001.

 

Topic of Project                                  :     Survey on livestock marketing practices in shandy in

                                                                 periyar, salem and thiruchirapalli districts of

                                                                 Tamil Nadu.

 

Name of the Principal Investigator     :     Dr. S. Selvam

 

 

 

Survey on livestock marketing practices in shandy in periyar, salemand thiruchirapalli districts of Tamil Nadu.

 

Summary

 

            India accounts for a significant share of world’s livestock resource with 52.8 per cent (78.56 million) of world’s buffaloes, 20.1 per cent (118 million) of goats, 15.1 per cent (192.7 million) of cattle, 4.0 per cent (44.61 million) of sheep and 1.0 per cent (10.55 million) of pigs.  The importance of livestock sub-sector can be gauged from the contribution which it makes to the national economy.  The share of livestock products in the gross value of agricultural outputs has increased from 6 per cent in 1970-71 to over 25 per cent in 1992-93.

 

            Efforts have been made to improve the production quantitatively and qualitatively in the livestock sector.  But marketing of livestock and livestock products, with few exceptions such as milk and eggs, is still to receive the attention of the planners and policy makers.  The rural producers are a most unorganized lot.  The scale of production is small and scattered.  Marketing of livestock is associated with a unique set of conditions which makes it highly risky and laborious, besides prevalence of relative imperfection in the marketing mechanism.  Marketing of livestock is mostly the forced one and under stress.

 

            There is no market committees or regulated markets available in Tamil Nadu for marketing of livestock.  Therefore, in order to have an insight to the existing status of the livestock shandies and to study the strategies of livestock marketing, this study was undertaken in Periyar, Salem and Thiruchirapalli districts of Tamil Nadu with the following objectives: (a) to study the conventional pattern of livestock marketing at various places including the mode of transport to the place of sale, facilities provided during the sale and detection of fraudulent practices, if any, during the sale; (b) to find out the bottlenecks prevailing to the livestock marketing in shandy; and (c) to recommend various remedial measures for improving the practice of livestock marketing including the legislation for regulating the sale of livestock in various shandies.

 

            This study was undertaken in the three districts of Tamil Nadu, viz., Periyar, Salem and Thiruchirapalli. Out of total 325 shandies identified in the study area, 241 shandies were found to deal agricultural produce exclusively and 55 shandies were dealing with agricultural produce combined with livestock and 29 shandies were to deal with livestock alone. Critical information was collected from all the shandies dealing with livestock.  However, to conduct a detailed study on various aspects of marketing, 23 shandies out of 84 livestock shandies were selected using simple random sampling technique.  Apart from this, five middlemen from each of the livestock shandy were also selected randomly and interviewed.  The reference year of the study was 1997-98 and the data collection was taken up during the same period.  This study was primarily based on the facts collected through personal interview and on-the-spot field visits.  For this purpose, structured and pre-tested interview schedule was prepared.

 

            The study on temporal distribution illustrated that the rural buyers can visit four to five shandies per week within a few hours to select their animals, where the sellers also had an advantage of marketing their livestock on any day.  Further, this kind of distribution had facilitated the brokers to earn their daily bread by providing a continuous opportunity for self-employment through livestock marketing.

 

            All the shandies in the study area were unregulated and under public control, except, Manalmedu shandy of Thiruchirapalli district which was organized by a private entrepreneur.  Shandies belong to rural or urban administrative bodies, such as “panchayat unions” and “municipalities”.  The common practice was to hire out annually the right to collect entry fee to the private contractors.

 

            The shandies of the study area seemed to be designed without any approval or appropriate plan for marketing of livestock species and products.  The shandies were held in the unutilized areas of government or poramboke land available at or near the places by which the shandies are named after.  The location of market / shandy differed in different places and the area varied based on the availability of land and arrival of animals.  It appeared that the location and area for the livestock yards have been arbitrarily decided as there were no criteria adopted while fixing these parameters for livestock market yard, nor have these earlier been attempted.  In most of the shandies, even the soil surface of the yard was so uneven and with shrubs and thorns.

 

            Fencing around the market yard was seen in almost every shandy of Periyar district, except Anthiyur shandy.  In Salem district Erumapatti, Rasipuram, Namagiripettai, Tiruchengode, Pallakkapalayam and Mohanur shandies had neither fencing and gate nor any form of roads inside the shandy.  Other shandies in this district had fencing and gate and roads.  In Thiruchirapalli district out of the 18 shandies, the following 10 shandies had fencing around the market yard: Pettavaithalai, Thayanur, Ariyavur, Siruvachur, Ariyalur, Uppidamangalam, Paramathi, Jeyamkondam, Manapparai and Andimadam.  The type of fencing was concrete compound wall around yard.  The roads laid inside the shandy were katcha roads.  In most of the shandies, the roads were not properly maintained and appeared with worn-out structure, and in some places one could find only the traces or remnants of path or road.  No specially constructed concrete loading / unloading docks were found in any of the shandies of Periyar district, whereas Pudhanchandai shandy of Salem district and Manapparai, Jeyamkondam and Uppidamangalam shandies of Thiruchirapalli district had built-in loading / unloading dock.  In all the remaining shandies, only heaps of manure mixed with straw or heaps of sand were being utilized for loading and unloading of animals.

 

            None of the species of livestock was provided with sheds in shandies of the study area, where only the self-sown trees provided shade to limited number of animals as well as the owners / traders involved in marketing.  Watering and feeding facilities for animals were not provided properly in all the shandies, except the following four shandies: Anthiyur shandy of Periyar district, Pudhanchandai and Ayothiyapattinam shandies of Salem district and Uppidamangalam shandy of Thiruchirapalli district, where water troughs were seen for watering the animals.  There were no permanent or temporary employees of the government or Panchayat employed to manage the operations of shandies in the study area.  Hence, administrative office was found in none of the shandies.

 

            None of the shandy was provided with pucca / permanent canteen.  However, makeshift canteens were found available in all the shandies during shandy day.

 

            Water supply either potable for animals or human beings was not made available and drains for cleaning were not provided in any of the shandies of the study area, except the shandies which had water troughs.  Besides, no provision was found for the accessibility to electricity.  Other facilities such as toilets and bathrooms, provision for garbage disposal, veterinary and medical facilities, banking facilities, post office / telephones were also found to be absent in all the shandies in the study area.  Manure and garbage disposal were not done by following any scientific method, and a corner of the shandy was used for disposing the manure and garbage.  Parking provisions for vehicles was available only in two shandies, viz., Manapparai and Uppidamangalam shandies.

 

            The weekly arrival of animals found to vary from 19 (Satyamangalam) to 3410 (Velli Tiruppur) in Periyar district, whereas in Salem district, it varied from 250 (Mohanur) to 3550 (Morepalayam) and in case of Thiruchirapalli district, from 120 (Pettavaithalai) to 4300 (Ariyalur).  The entry fee levied per animal was in the range of Rs. 5-20 per large ruminant and Rs. 3-10 per small ruminant in the study area.

 

            The expected weekly income of the shandies in the study area was in the range of Rs. 750 – 33750, which varied depending upon the quantum of arrivals.  Despite this huge income received from the shandy, no matching utility for the fee collected was added.  Even the very basic infrastructural facilities and amenities such as loading / unloading dock, water supply were not made available in the shandies.  This inturn warrants immediate attention of administrators and policy makers to review the existing situation.

 

            The method of sale of different livestock species did not vary much among the districts studied.  The sale practices in the livestock shandies of the study area were mainly through direct negotiation between sellers and buyers and also by middlemen called ‘brokers’.  Usage of secret-code words to define the market price of animals were in vogue.  Bargaining ‘under cover’ was prevalent in Thiruchirapalli district, where the bargainers closed their digits with cloth and negotiate through finger palpation.  None of the middlemen was holding an official license and all were unregistered mediators.

 

            The criteria for price fixation varied within the species of animals and shandies.  The bullocks were judged with many parameters like breed, dentition, body conformation, shape of horns, skin, shoulders, eyes, hooves, tail etc.  The milch animals were priced mainly based on breed type, number and stage of lactation, structure of udder, appearance of milk vein, pelvic girdle, etc.  In case of small ruminants, the weight was assessed by the muscle thickness at loin and thigh besides girth.

 

            Among the middlemen interviewed, 55.3 per cent of intermediaries had only primary education, whereas 23.5 per cent had secondary education, 21.2 per cent were illiterates.  With regard to occupational pattern, 18.8 per cent of the intermediaries were found to practice brokerage in livestock marketing as primary occupation and the remaining exercised this function as subsidiary or leisure occupation.  The middlemen engaged themselves in brokerage for an average of 95 days in a year.  The income pattern studied indicated that 52 per cent of intermediaries in the study area were receiving an annual income of Rs. 5001 – 10000, while 32.5 per cent were estimated to earn more than Rs. 10000 and 15.5 per cent to acquire less than Rs. 5000 by mediating in livestock marketing.

 

            The main constraints faced by the buyers, sellers and intermediaries involved in marketing of livestock were inadequate infrastructural facilities and amenities, inappropriate entry fee, unscrupulous middlemen and unmatching brokerage, demand driven prices, poor transport facilities for animals and disease spread.  Handling of huge amount of cash in an unprotected open fields was the major hurdle encountered in annual livestock fairs, which were organized and prolonged for 7-10 days during temple festival seasons.

 

Policy Implications  

       

            The results of the study indicated certain policy options that are more appropriate for efficient functioning of livestock marketing systems.  Following are the policy implications that sprout out from this study:

 

1)     The analysis on the area of the market yards indicates that no definite parameter has been adopted while establishing the livestock market yard.  Therefore, a master plan for livestock markets should be prepared for the State as a whole after a detailed study, as the market activity is undergoing rapid qualitative and quantitative changes.

  

2)     The infrastructural facilities in livestock shandies are far from satisfactory.  Shandies have not been provided with resting sheds and even shady trees for resting animals.  Hence, the importance of livestock should be appreciated and basic infrastructural facilities such as sheds, water supply, loading / unloading docks be provided in the market yards.

3)     The amount realised through auction should be pooled into general funds of local bodies and a portion is earmarked for the maintenance of market.  Keeping in view the inadequacy of the infrastructural facilities available, it is suggested that the income generated by the shandies should be earmarked exclusively for the development and maintenance of the livestock market.  In case of inadequate resources, efforts for resource mobilisation must be made and State Agricultural Marketing Board may consider granting funds for development of livestock markets.

4)     The quality judgement of animals is left to the discretion of the buyer and seller, who sometimes, may not have the expertise and are likely to be cheated because of malpractices.  As an innovative measure, it is suggested that the services of the veterinarians may be availed for evaluation of animals.

5)     By and large, the system of sale now practised is open negotiation between buyer and seller (perfect competition).  However, the intermediaries continue to play a major role in livestock marketing through the system of “secret negotiation”, using code words and finger palpation under cover.  Continuance of this practice is against the interests of the rural producers, and hence, this should be banned.

6)     In order to avoid such complications mentioned above, the middlemen must be issued with valid license for facilitating transactions.  The service of the brokers and other middlemen should be officially recognised and the charges for their services may be fixed after thorough investigation.

7)     The study of entry fee (market charges) levied in shandies reveals that there is neither uniform pattern, nor any rationale in fixing the rates.  It is opined that the market charges should be fixed uniformly and with subject to revision every year depending upon the price indices.

8)     It is essential to bring all the unorderly local body markets under the purview of Agricultural Produce Markets Act, so as to convert them into orderly markets.  Though there is provision in the Act for notifying cattle, poultry, sheep, etc., yet they are to be notified in Tamil Nadu State.  Hence, action must be initiated to notify the same.

9)     It is necessary to set up a livestock marketing cell under the Directorate of Animal Husbandry to collect and compile information on marketing of livestock, livestock products and by-products for designing development activities.

10)  A post of Shandy Veterinary Assistant Surgeon may be created at Assistant Director’s office who will look after shandies available in his jurisdiction and prevent the entry of infected animals.