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: 

         Sources / Institutions

Address

1.Directorate of Marketing and Inspection (DMI),

  www.agmarknet.nic.in

        NH-IV, CGO Complex, Faridabad.

 

 

 

2.Directorate of Economics and Statistics,

www.agricoop.nic.in

          Shastri Bhavan, New Delhi.

 

 

 3.Directorate  General of Commercial Intelligence and Statistics (DGCIS),

 

          1,Council House Street, Kolkata-1

 

 4.Central  Warehousing Corporation ( CWC )

 www.fieo.com/cwc/

      4/1 Siri Institutional Area, Opp. Siri fort, New     Delhi-110016

B.  State level:

 

 

1. State Agricultural Marketing Boards,

 

          at different state capitals

  ket Committees (APMC)

 

                     in different states

  C.  Autonomous:

  1. Federation of Indian Export Organisations (FIEO)

 

  PHQ House(3rd Floor) Opp. Asian Games , New Delhi-110016

D.  Websites:

     Websites:

 

  www.agmarknet.nic.in  

www.agriculturalinformation.com  

www.agriwatch.com  

www.kisan.net  

www.agnic.org  

www.fao.org  

www.fieo.com/cwc/  

www.commodityindia.com  

     www.apeda.com  

     www.ncdc.nic.in  

     www.agricoop.nic.in  

     www.indiaagronet.com  

     www.nafed-india.com  

     www.icar.org.in

     www.codexalimentarius.net

                   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  

Benefits
1. It increases profit of the producers.
2. It minimizes marketing cost.
3. It increases distribution efficiency.  
4. It satisfies the consumers through better quality of produce at reasonable price.  
5. It provides better marketing techniques to producers
6. It encourages direct contact between producers and consumers.
7. It minimizes the margin of the middlemen.
8. It encourages the farmers to produce according to demand.  

     

(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  

Name of Scheme

 

  Eligibility

                          Objective/Facilities

1. Crop   Loan

All categories of farmers.

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.   
 

2.  Produce Marketing Loan   (PML)

All categories of farmers.

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.

 

3. Kisan

    Credit

    Card       Scheme

All agriculture clients having good track record for the last two years.

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.  

 

4.National Agricultural Insurance Scheme

Scheme is available to all farmers – loanee and non-loanee both-irrespective of the size of their holding.

 

 

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.

 

  Long term loans  

Name of Scheme

 

  Eligibility

  Objective/Facilities

 Agricultural      Term Loan

All categories of farmers (small/medium and agricultural labourers) are eligible, provided they have necessary experience in the activity and required area.

 

  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.

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

 

Name of the Organisations / Agencies & Address

 

  Services Provided

1. Directorate of Marketing and  Inspection (DMI)

 

NH-IV, CGO Complex

Faridabad

www.agmarknet.nic.in

 

 

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.

 

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

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.
 

3.National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)

Nafed House, Sidhartha Enclave, New Delhi – 110014

www.nafed-india.com

 

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.

4.Central Warehousing Corporation (CWC)

4/1 Siri Institutional Area Opp. Siri fort New Delhi-110016

www.fieo.com/cwc/

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.   

  5. National

Co-operative Development  Corporation

( NCDC )

4, Siri Institutional Area, New Delhi-110016

www.ncdc.nic.in

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.

  6.Director General of Foreign Trade,

 (DGFT)

Udyog Bhavan, New Delhi.

www.nic.in/eximpol  

   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

7. Directorate General of Commercial Intelligence and Statistics (DGCIS),

1, Council House Street,  Kolkata-1

  Collection, compilation and dissemination of marketing related data i.e. export-import data, inter-state movement of foodgrains etc.

 

 

8.Directorate of Economics and Statistics,

Shastri Bhavan, New Delhi.

 www.agricoop.nic.in

a) Compilation of agricultural data for development and planning.  

b)     Dissemination of market intelligence through publication and Internet.

  9.State Agricultural Marketing Board,

at different

 state’s capital

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.

  DO’S & DON’TS

DO’S

DON’TS

     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.

 

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.