Executive Summary of Chhatisgarh

          The concept of systematic planning and designing of markets is relatively a new one in the context of massive development programmes witnessed in many states.  It is now well-accepted fact that investment in development of individual markets, selected on adhoc basis, has not produced optimum returns.  The emphasis on having a total look at the development requirement of the markets in a state as a whole and then placing them in an order of priority, the most needed market getting first attention, is a need of the hour.  Financing institutions both national and international level also prefer to look at investment needs for market development within the framework of a state master plan rather then projects for individual markets selected in isolation. 

          As the markets are cardinal links they play a vital role in the agricultural economy of the country.  Bulk of the marketable surplus passes through the physical markets and present indications are that this situation will continue in the years to come.  As no market functions in isolation, isolated markets, taken up for development may not be individually important but being collectively inter-lined make a significant contribution of a given commodity or a group of commodities.   

          The institute prepared the plan as a bankable document with a wholistic view of the state assessing the development requirements, phasing out of the programme, indicating order of priority for development, working out land use pattern, estimating space requirement, framing cost estimates, calculating IRR and recommending modernization proposals for markets with strengthening legal and conceptual frame work.  The plan runs into thirteen chapters with a support of numerous annexures, comprising of important information and its value addition.  

          109 daily markets of the state have been analysed and categorized as (a) markets needing full scale development and (b) markets needing partial development, based on level of present arrival and projected arrival at 2018 AD.   Markets then, have been classified in different groups.   Main markets as well as sub-yards attached have been considered for planning purpose.  Primary data for 109 markets was collected and results analyzed.   Salient features of findings are as under: - 

·        The total quantum of arrival handled by 109 markets of Chhatisgarh during 1998-99 works out to be 43 lakh MT.  Projected arrival for 2018-19 (using linear growth rate) has been computed at 145 lakhMT. (An increase of more then three times). 

·        Around 28  markets of Chhatisgarh (called as ‘A’ category markets) are dealing in arrivals of more than 37 lakh MT annually.  These markets handle around 86% of the total trade of the state.  Rest of 24% produce is traded through other markets jointly.  Although, in smaller (category D) there are 45 markets in the state but handle only 1.4 lakh MT  throughput.  These small markets may not be viable in terms of collection of market fees as the reported arrival is meager but they have their own role in establishing linkages between rural and urban markets. 

·        Similarly, B and C category markets which can be termed as medium and semi-urban markets, and are 18 and 18 in numbers constituting 16% of total handle 3.7 and 1.9 lakh MT of total state arrival, respectively.  This shows that larger markets handled more produce.  Though, smaller and rural markets may not contribute much in total arrival terms but each market works as a nerve center in establishing cardinal links.  

·        Total picture of bifurcated reported arrival for 1998-99 and among various identified categories of markets has also been presented.  State arrival for the year 1998-99 which works out to be 43 lakh MT This shows that major markets have definitely larger role to play as these are mostly situated around the consuming places.  But it does not confirm the hypothesis that the major produce is not handled by small markets.  In facts, most of ‘A’ category markets are transit and secondary markets where primary produce is not brought by the farmers but by second merchants and in big volumes.  Small category markets i.e. C and D collect the produce at the grassroots level and send it back to big ‘A’ category markets.  Therefore, each market is dependent on another and establish supplementary cardinal links between them.   

·        Around 97.5%% of the produce arrived in total is further dispatched to the consuming or assembly markets of the same district while 9.5% is dispatched to other markets of the state and outside the district.  A negligible volume of dispatches is traded for outside the state markets.  This infers that the downstream service index of the market is not quite high. 

·        Arrivals in the markets of Chhatisgarh have been projected for the year 2003, 2008 and 2018 for mid evaluation of performance.  Projection beyond 2018 is not considered desirable.  Past experience shows that market needs are difficult to foresee beyond say 15-20 years as changes that are likely to occur in the marketing systems and procedures due to technological developments in the field of produce handling, preparation, handling, packaging, storage transportation etc., all influence the needs of markets.  There is then danger of part utilization of the facilities or unutilized.  Growth rates calculated for individual markets and projections made thereof are given in the report.  

·        Growth rates of arrival in case of ‘B’ category markets have been reported to be highest i.e. 3.69%  ‘A’ category markets could attain third position with 3.49%.  Similarly,  C and D category of markets have obtained 3.66 and 3.37 of percentage change, respectively. 

·        Total space requirement of State works out to be 10 lakh sq meters.  Raipur division would require highest area of 5.9 lakh sq. mts. while Bilaspurl division will require 3.3 lakh sq. mt. of area.  Requirement of space for Bastar division has been worked out to be 81512  sq. mt. 

·        On an average one market of Chhatisgarh would require 38431 sq. mt. of space for its proper development.  Among various categories, ‘A’ category of market would require average 16372 sq m of area while, ‘C’ category of markets will need on an average of 7628 sq. mt. of space.  Total area required for the state (10 lakh sq. mt.) is constituted 40% by ‘A’ category markets only. 

·        State as a whole, on an average, would need 38431 sq. mt. of space for the development of 109 markets, the area is supposed to be sufficient for all the activities like marketing, allied activities and parking & circulation etc.  Utilization of space largely depends on utilization of pattern followed in a market.  A suggestive pattern of the same has been provided in the report.  ‘A’ category markets, 4.58 lakh  sq mt.  of space is required for marketing activities, 1.1 lakh and 45842 sq mt. for allied services and circulation & parking, respectively.  If the space is utilized as recommended above, it is expected that there would be minimum mis-utilisation of space and maximum efficiency in using the facilities created in the market.  A common feature, which has been observed in most of the markets, is of either congestion or the trade not being shifted.  If the pattern recommended is followed it would solve most of the problem and would bring marketing efficiency in the system. 

·        It has been observed that major modes of transport used in carrying and dispatching the produce from/to the markets are trucks, mini trucks (including other motorized vehicles) animal carts, rickshaws, bicycles and head loads.  However, their uses distinctly differ in different kinds of markets.  Major markets of the state record entry of less than 50 trucks on a normal market day.  Regarding means of transport to carry the agricultural producers-cum-sellers from nearby places themselves carry their small consignment on head and bicycles also.  In markets of category B, C and D, small trucks and other types of light commercial vehicles are used in addition to head loads and trucks.  In very large markets, though, all types of vehicles including head loads are put to service for carrying the goods but most important mode is truck.  Major means of transport are generally hired by a group of sellers jointly depending upon the volume of produce and the destination. 

·        Animal carts are important mode of transportation in rural areas of Chhatisgarh.  Out of the total responding 28 markets of ‘A’ category of main yards, there (98%) having entry of less than 50 animal carts a day.  No market in the state has been reported receiving/dispatching produce through more than 150 animal carts a day.  Only of this category record entry of animal carts more than 100. This shows that there is still acceptance of animal carts in the markets, which warrants for rural facility   up gradation, accordingly.  Therefore, animal cart parking places, animal sheds and water troughs are important facilities, which can be provided in the markets.  In the plan, this aspect has been properly taken care of.  Accordingly, parking and circulation area has been increased. 

·        The identification and provision of various need based physical infrastructure in a market is a tricky issue.  For this purpose the user population needs to be calculated first.  The visitor population will include traders, producers, middlemen and above all consumers.  The other process of calculating the user population is the empirical formula arrived at by FAO experts, who recommended a factor of 3.70 persons/tones/day. 

·        The unit rate of each item, reflecting the current cost structure prevailing in the State has been given.  The DSR of the department of PWD and B and R of Chhatisgarh was used to arrive at cost estimates.  Due considerations have been given for leveling of the land, site clearance, etc. 

The plan speaks of 109 development proposals spreading over the state costing of Rs.55.07 crore in total of which Rs.34 crore is required for full development of markets while 23.6 crore is required for partial development of markets.  

·        Item wise share in total estimated cost of the project in the state depicts that 60.78% of the total cost goes to building and roads while modernization would require 35% of the total cost.  Almost equal amount of 5% of total would be spent on essential services and contingencies of the project.   Total Cost on full development and partial is estimated at Rs.34 and 23.6 crore, respectively.