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MARKET
INFORMATION
Marketing
information is a key function to make efficient marketing decisions,
regulate the competitive marketing process and to restrict the monopoly
or profiteering by individuals in the market. The informations are
displayed on the website www.agmarknet.nic.in
Importance
i)
It helps producers in planning production.
ii)
It helps in marketing of produce.
iii)
It helps in higher price realization.
Benefits to
1)
Producers
2)
Consumers
3)
Traders
4)
Government
Sources of Marketing Information
In our country, there are a number of
sources/institutions that are directly or indirectly disseminating
marketing information. The details are as follows.
A.
Central level:
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Sources / Institutions
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Address
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1.Directorate of
Marketing and Inspection (DMI),
www.agmarknet.nic.in
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NH-IV, CGO Complex, Faridabad.
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2.Directorate of
Economics and Statistics,
www.agricoop.nic.in
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Shastri Bhavan, New Delhi.
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3.Directorate
General of Commercial Intelligence and Statistics (DGCIS),
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1,Council House Street, Kolkata-1
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4.Central Warehousing Corporation ( CWC )
www.fieo.com/cwc/
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4/1 Siri Institutional Area,
Opp. Siri fort, New
Delhi-110016
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B. State level:
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1.
State Agricultural Marketing Boards,
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at different state capitals
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ket Committees (APMC)
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in different states
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C. Autonomous:
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1. Federation of
Indian Export Organisations (FIEO)
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PHQ
House(3rd Floor) Opp. Asian Games , New Delhi-110016
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D. Websites:
ALTERNATIVE
SYSTEM OF MARKETING
(A)
DIRECT MARKETING
Direct
marketing is an innovative concept, which involves marketing of produce
by the farmers to the consumer/miller without any middlemen
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Benefits
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| 1. |
It increases profit of the
producers.
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| 2. |
It minimizes marketing cost.
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| 3. |
It increases distribution
efficiency.
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| 4. |
It
satisfies the consumers through better quality of produce at reasonable
price.
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| 5. |
It provides better marketing
techniques to producers |
| 6. |
It
encourages direct contact between producers and
consumers.
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| 7. |
It minimizes the margin of the
middlemen.
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| 8. |
It
encourages the farmers to produce according to demand.
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(B)
CONTRACT MARKETING
Contract marketing is a system
of farming, wherein farmers grow selected crops under a ‘buy back’
agreement at pre-determined prices with an agency involved in trading or
processing.
Advantages to farmers
a)
Price
stability ensuring fair returns of produce.
b)
Direct
contract providing monetary returns without involvement of middlemen.
c)
Prompt
and assured payments.
d)
Technical
support in the field of production to marketing.
e)
Fair
trade practices.
f)
Credit facility.
g)
Exposure
of latest technology and best market led practices.
h)
Supply
of inputs to the farmers at their doorsteps.
i)
Supply of capital inflow and assured markets for
crop.
Advantages to contracting agency
i) Assured
and continuous supplies of produce (raw materials).
ii)
Control
on need based production/post-harvest handling.
iii)
Control
on quality of produce.
iv)
Price
as per mutually agreed contract terms and conditions.
v)
Opportunities
to acquire, introduce and experiment the production of desired
varieties.
vi)
Help
in meeting specific customer needs/choice.
vii)
Better
control on logistics.
viii)
Strengthen
producers/buyers relationship.
ix)
Relationship
based on mutual trust.
x)
Direct
purchase from farmers and no middlemen.
(C)
CO-OPERATIVE MARKETING
Co-operative
marketing societies are associations of farmers for the collective
marketing of their produce and securing advantages of large-scale
business to its members. Co-operatives are the best instrument to ensure
remunerative prices to farmers for their produce and also function as an
interface for stabilizing market prices.
Benefits
1)
Sale of produce of farmers’ collectively at remunerative
prices.
2)
Increase in volume of business on account of pooling of produce, which
increases bargaining power.
3)
Helps in reduction of the marketing cost.
4)
Acts as a safeguard against the marketing malpractices.
5)
Provides scientific storage structures to its members for surplus
produce.
6)
Provides credit facilities (loan) to its members against the
security of their produce.
7)
Arranges transportation facilities for the produce collectively,
which reduces per unit transportation cost.
8)
Provides facilities for grading of the produce.
9)
Provides marketing intelligence on prices, arrivals, demand etc.
on day-to-day basis.
10)
Acts as an agency of
Government for procurement of foodgains and implementation of price
support policy.
11)
Supply of farm
inputs to farmers such as improved seeds, fertilizers, insecticides and
pesticides.
12)
Undertakes
processing.
13)
Makes collective bargain with Dal mills processing centre
avoiding commission
agents and thus, increasing their share.
(D) FORWARD AND
FUTURES MARKETS
Forward
trading means an agreement or a contract between seller and purchaser,
for a certain kind and quantity of a commodity for making delivery at a
specified future time, at contracted price. It is a type of trading,
which provide protection against the price fluctuations of agricultural
produce.
Forward
contracts are broadly of two types:
a)
Specific delivery contracts
b)
Other than specific delivery contracts
Benefits
i)
Price stabilization
ii)
Encourages competition
iii)
Ensures balance in demand and supply
iv)
Promotes integration of price
It
is useful to all segment of economy:
1)
Producers
2)
Traders/Exporters
3)
Millers/Consumers
INSTITUTIONAL
CREDIT FACILITIES
The
institutional credit to agriculture is offered in the form of short
term, medium term and long term credit facilities:
Short term and medium term loans
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Name of
Scheme
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Eligibility
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Objective/Facilities
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1. Crop
Loan
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All categories of farmers.
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1) To meet cultivation expenses for various crops as short term loan.
2) This loan is extended in the form of direct finance to farmers
with a repayment period not exceeding 18 months.
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2. Produce Marketing Loan
(PML)
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All categories of farmers.
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1)
This loan is given to help farmers to store produce on
their own to avoid distress sale
2)
This loan also facilitates immediate renewal of crop loans
for next crop.
3)
The repayment period of the loan does not exceed 6 months.
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3. Kisan
Credit
Card
Scheme
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All
agriculture clients having good track record for the last two
years.
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1)
This card provides running account facilities to farmers to
meet their production credit and contingency needs.
2)
The scheme follows simplified procedures to enable the
farmers to avail the crop loans as and when they need.
3)
Withdrawals can be made by using easy and convenient
withdrawal slips. The Kisan Credit Card is valid for 3 years
subject to annual review.
4) It also covers personal insurance against death or permanent
disability; a maximum amount of Rs. 50,000 and Rs. 25,000
respectively.
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4.National Agricultural Insurance Scheme
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Scheme is available to all farmers – loanee and non-loanee
both-irrespective of the size of their holding.
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1)
To provide insurance coverage and financial support to the
farmers in the event of failure of any of the notified crops as a
result of natural calamities, pests and diseases attack.
2)
To encourage the farmers to adopt progressive farming
practices high value in-puts and higher technology in agriculture.
3)
To stabilize farm incomes, particularly in disaster years.
4)
General Insurance Corporation of India (GIC) is the
Implementing Agency.
5)
Sum insured may extend to the value of threshold yield of
the area insured.
6)
Coverage of all food crops (cereals, millets and pulses),
oilseeds and annual commercial / horticultural crops.
7)
Provides subsidy of 50 percent in premium of small and
marginal farmers. The subsidy will be phased out over a period of
5 years on sunset basis.
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Long
term loans
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Name of
Scheme
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Eligibility
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Objective/Facilities
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Agricultural
Term Loan
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All
categories of farmers (small/medium and agricultural labourers)
are eligible, provided they have necessary experience in the
activity and required area.
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i) The banks extend this loan to farmers to create
assets facilitating crop production/income generation.
ii)
Activities covered under this scheme are land development,
minor irrigation, farm mechanization, plantation and horticulture,
dairying, poultry, sericulture, dry land, waste land development
schemes, etc.
iii)This loan is offered in the form of direct finance to farmers with
a repayment span not less than 3 years and not exceeding 15 years.
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Pledge finance
To get rid of
distress sale, Government of India, promoted Pledge Finance Scheme
through a network of rural godown and negotiable warehousing receipt
system. Through this scheme, small and marginal farmers can get
immediate financial support to meet their requirements and retain the
produce till they get remunerative price.
Benefits
(i)
Increases the retention capacity of the small
farmers, which in consequent also
enable the farmers to avoid distress
sale.
(ii)
Minimises the farmer’s dependency on the commission agents as
the pledge finance provide financial support to them immediately after
harvest period.
(iii)
Participation of the farmers, irrespective of their land holding
size, increases the arrivals in market yard throughout the year.
(iv)
Provides a sense of security to the farmers even if their produce
not sold out in the market yard immediately.
ORGANISATION
/
AGENCIES PROVIDING
MARKETING SERVICES
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Name of the
Organisations / Agencies & Address
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Services Provided
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1.
Directorate of Marketing and
Inspection (DMI)
NH-IV,
CGO Complex
Faridabad
www.agmarknet.nic.in
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1. To integrate development of marketing of
agricultural and allied produce in the country.
2. Promotion of standardization and grading of
agricultural and allied produce.
3. Market development through Regulation, Planning
and Designing of physical market.
4.
Administration of Meat Food Products Order (1973).
5. Promotion of Cold Storage.
6. Liaison between the Central and State Governments
through its regional offices (11) and sub-offices (37) spread all
over the country.
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2.Agricultural
and Processed Food Products Export Development Authority (APEDA)
NCUI
Building, 3, Siri Institutional Area, August Kranti Marg, New
Delhi-110016
www.apeda.com
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a) Development of scheduled agriculture products related industries
for export.
b)
Provides financial assistance to these industries for
conducting surveys, sensibility studies, relief and subsidy
schemes.
c)
Registration of scheduled product exporters on payment of
such fees as may be prescribed.
d)
Adapting standards and specification for the purpose of
export of scheduled products.
e)
Carrying out inspection of meat and meat products for
ensuring the quality of such products.
f)
Improving the packaging of the scheduled products.
g)
Promotion of export oriented production and development of
scheduled products.
h)
Collection and publication of statistics for improving
marketing of scheduled products.
i)
Training in the various aspects of industries related to
the scheduled products.
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3.National
Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)
Nafed
House, Sidhartha Enclave, New Delhi – 110014
www.nafed-india.com
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i) Central nodal agency of Government of India for
procurement of pulses, millets and oilseeds under price support
scheme.
ii)It undertakes sale of pulses and oilseeds procured
under PSS and import and provide storage facilities.
iii) Consumer Marketing Division of NAFED serves the
consumers in Delhi through the network of its retail outlets (NAFED
BAZAR) by providing consumer items of daily need. Processing of pulses, fruits, etc for internal trade.
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4.Central
Warehousing Corporation (CWC)
4/1 Siri Institutional Area
Opp. Siri fort New Delhi-110016
www.fieo.com/cwc/
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1.
Provides scientific storage and handling facilities.
2. Offers consultancy services/ training for the
construction of warehousing infrastructure to different agencies.
3.
Import and export warehousing facilities.
4.
Provides disinfestation services.
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5.
National
Co-operative Development
Corporation
( NCDC )
4, Siri Institutional Area,
New Delhi-110016
www.ncdc.nic.in
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a)Planning,
promoting and financing programme for production, processing,
marketing, storage, export and import of agricultural produce.
b)
Financial support to primary, regional, state and national
level marketing societies is provided towards
i)
Margin money and working capital finance to augment business
operations of agricultural produce.
ii)
Strengthening the share capital base and
ii)
Purchase of transport vehicles.
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6.Director
General of Foreign Trade,
(DGFT)
Udyog Bhavan, New Delhi.
www.nic.in/eximpol
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j)
Provides guidelines / procedure of export and
import of different commodities.
ii)
Allot import-export code number (IEC No) to the exporter of
agricultural commodities.
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7. Directorate
General of Commercial Intelligence and Statistics (DGCIS),
1, Council House Street,
Kolkata-1
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Collection,
compilation and dissemination of marketing related data i.e.
export-import data, inter-state movement of foodgrains etc.
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8.Directorate
of Economics and Statistics,
Shastri Bhavan, New Delhi.
www.agricoop.nic.in
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a)
Compilation of agricultural data for development and planning.
b)
Dissemination of market intelligence through publication
and Internet.
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9.State
Agricultural Marketing Board,
at different
state’s capital
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1)
Implementation of the regulation of marketing in
the state.
2)
Provides infrastructural facilities for the
marketing of notified agricultural produce.
3)
Grading of agricultural produce in the markets.
4)
To co-ordinate all the market committees for
information services.
5)
Provides aid to financially weak or needy market
committees in the form of loans and grants.
6)
To arrange or organise seminars, workshops or
exhibitions on subject relating to agricultural marketing.
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DO’S & DON’TS
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DO’S
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DON’TS
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1. Harvest the Black gram at proper time of
maturity.
2. Harvest the Black gram crop when 80% of the pods
are mature (turned yellow).
3. Harvest during conducive weather condition.
4.Threshing and winnowing on cemented (pucca) floor.
5. Market the Black gram after AGMARK grading to get
remunerative prices in the market.
6. Before marketing the produce, get the market
information regularly from agmarknet.nic.in website, newspapers,
T.V., radio, concerned APMC offices etc.
7
Store the Black gram during post harvest period and sale it
later when the prices are higher in the market.
8.
Use proper and scientific method of storage.
9.
Avail the benefit of centrally sponsored GRAIN BHANDARAN
YOJANA scheme for construction of rural godowns and store Black
gram to minimise losses.
2.
10. Select the shortest and efficient marketing channel to get
highest share in marketing.
3.
11. Package properly to protect the quality and quantity of
produce during transit and storage.
4. 12.
Select the cheapest and convenient mode of transportation
from the available alternatives.
5.
13. Transportation of Black gram in bags to minimize the grain
losses.
6.
14. Use effective, efficient and improved post harvest
technology and processing techniques to avoid post harvest losses.
7.
15. Avail the facility of Price Support Scheme during glut
situation.
8.
16. Avail the procedure of Sanitary and Phyto-Sanitary measures
during export.
9.
17. Assure better marketing of the produce, avail benefit of
contract farming.
118.
Avail the benefits of future trading to avoid price risk
arising due to wide fluctuations in commodity prices.
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1. Delay in harvesting which results shattering of
pods.
2. Harvest Black gram before the pods are fully
mature, which results lower yields, higher proportion of immature
seeds, poor grain quality.
3..Harvest the crop during adverse weather condition
(during rain and over cast weather).
4. Perform threshing and winnowing on kutcha floor.
1.
Market Black gram without grading, which will fetch lower
prices.
2.
Market produce without collecting / verifying marketing
information.
3.
Sale the Black gram during post harvest period when the
prices are low during this period due to glut.
4.
Use conventional and outdated method of storage, which
causes storage losses.
5.
Store Black gram at unscientific place in a haphazard
manner, which will result qualitative and quantitative
deterioration of Black gram grains.
6.
Use the long marketing channel, which reduces the
producer’s share as well as more commission charges.
7.
Pack in Improper package
which causes more losses during transit and storage.
8.
Use the mode of transport, which will cause losses and
require higher cost.
9.
Transport Black gram in bulk, which causes more losses.
10.
Use traditional and conventional techniques in post harvest
operations and in processing which causes more quantitative and
qualitative losses.
11.
Sale Black gram to local traders or
itinerant merchant during glut situation.
12.
Export without any Sanitary and Phyto-Sanitary measures.
13.
Produce Black gram without assessing and assuring its
market demand for that year.
14.
Sell the produce at fluctuating prices or in glut
situation.
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