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Executive
Summary
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.
312
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 312 markets was collected and results analyzed.
Salient features of findings are as under:- ·
The
total quantum of arrival handled by 312 markets of Madhya Pradesh during
1998-99 works out to be 24163652 MT.
Projected arrival for 2018-19 (using linear growth rate) has been
computed at 65412377 MT. (An increase of little less then three times). ·
Around 30% of
markets of Madhya Pradesh (called as ‘A’ category markets) are
dealing in arrivals of more than 2 crores MT annually.
These 30% markets handle around 90% of the total trade of the
state. Rest of 10% produce
is traded through other markets jointly.
Although, in smaller
(category D) there are 37% markets, (113 in numbers out of 312 surveyed)
in the state but handle only 1.44% of the state 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 53 and 45 in numbers constituting
17% and 15% of total handle 5.8 and 2.5% 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 24163652
MT
Main yards of the state handle almost 63% of total arrival while
37% of state produce passes through the sub yards.
Of the total 24163652 MT, 21732852 MT (90%) of produce is traded
through ‘A’ category markets including of main yards and sub yards.
But if we further analyse it and see the relationship between
main yards and sub yards it is estimated that around 35.8% of total
‘A’ category market produce arrival and 31.4% of total state arrival
is handled by ‘A’ category sub yards in the state.
Rest of 64.2% and 69.6% respectively is handled by ‘A’
category main yards.
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
28.75% of the produce arrived in total is further dispatched to the
consuming or assembly markets of the same district while 37.84% is des
patched to other markets of the state and outside the district.
A sizeable volume of dispatches (33.4%)is traded for outside the
state markets.
This infers that the downstream service index of the market is
quite high.
·
Arrivals
in the markets of Madhya Pradesh 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. 1.24%.
‘A’ category markets could attain only 1.13% of growth rate
during last decade.
Similarly.
C and D category of markets have obtained 0.6 and (-)0.04% of
percentage change, respectively. ·
Total space requirement of State works out to be 96081039
sq meters. Indore division
would require highest area of 28219332 sq. mts. while Bhopal division
will require 2642367 sq. mt. of area.
Requirement of space for Gwalior division has been worked out to
be 10817801 sq. mt. ·
On
an average one market of Madhya Pradesh would require 17474 sqm of space
for its proper development.
Among various categories, ‘A’ category of market would
require average 5812 sq m of area while, ‘C’ category of markets
will need on an average of 2671 sq. mt. of space.
Total area required for the state (17474 sq. mt.) is constituted
30% by ‘A’ category markets only. ·
State as a whole, on an average, would need 17474 sq. mt. of space for
the development of 312 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, 5812 sq mt.
of space is required for marketing activities, 581 and 3778 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.
96% 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 Madhya Pradesh. Out of the total
responding 80 markets of ‘A’ category of main yards, there are 79
markets (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 one market 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/tonnes/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 Madhya Pradesh
was used to arrive at cost estimates.
Due considerations have been given for leveling of the land, site
clearance, etc. The
plan speaks of 312 development proposals spreading over the state
costing of Rs.75.00 crore in total of which Rs.30.94 crore is required
for full development of markets while 44.06 crore is required for
partial development of markets. Districts like, Jhabuwa, Hosangabad
require more funds as compared to other districts. §
Umaria and Dindori
districts have been identified with minimum requirement of funds to the
tune of Rs.0.028 crores which comes to the lowest level. §
Itemwise 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 33% of the total cost which comes to
Rs. 45.49 crores and Rs.25.83 crore, respectively.
Almost equal amount of 5% of total would be spent on essential
services and contingencies of the project.
·
In the second phase 150 markets has been identified which is
48.07% of total 312 markets. The budget provision for second phase is Rs.
35.70 crore which comes 47.60% of total state budget of 75.00 crores. In
phase II covers 41 markets of category A, 37 of Category B, 30 of
category C and 42 of category D. Budget provision of these category are
9.75 crores, 11.42 crores, 2.95 crores and 11.56 crores respectively. ·
Third phase cover 112
balance markets. In the third phase maximum market are in category D
(68.75%). The total budget provision in phase III is Rs. 9.78 crore.
Out of 9.78 crore 4.25 crore for category D which is 43.45% of
total budget in phase
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