MARKET
DEVELOPMENT PROPOSALS
In the context of the massive development programme witnessed in many
states of the country during the last two decades, the concept of the State
Master Plan for market development is relatively a recent introduction.
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 at national and international level also
prefer to look at investment needs for market development within the framework
of a state master plan rather than projects for individual markets selected in
isolation.
Markets are cardinal links and 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-linked make a significant contribution of a given commodity or a group of
commodities. A coherent development
plan envisages that a market may be identified and qualified as:
1. Throughput points along a given or projected flow-line for a particular commodity or a group of commodity.
Links in the marketing chain delete the importance of
which could be assessed objectively.
The improvement of physical flowing or development of a particular
marketing channel, both constitute acceptable as-well-as practical development
objectives.
In the
master flow plan, all the agricultural commodities must accordingly be
considered on the basis of their own merit.
More specifically, each commodity or commodity group(s) may be assessed
according to its place and importance in the over-all flow pattern, the areas of
the state where its operation is of critical importance and the class and type
of user who benefit from its operational efficiency or suffer from its
negligence. In such a framework,
all the commodities ready for distribution system and also provide limited
opportunities in the use of marketing services and facilities and for
transportation channel. Markets are therefore, are to be examined in terms of
commodity flowing point or part of given circuit.
As a component of a given circuit, markets may be closely related to
certain geographical areas and can be associated with a given type or class of
producers. Linking commodities with
markets and market users in an orderly framework is also useful for project
formulation and appraisal. In
practice then, it is conceivable to view the market development task in
different component relating to separate identifiable commodity flow lines and
marketing channel or market circuits.
CLASSIFICATION
OF MARKETS
Nations concerning commodity or commodity group(s) as well as marketing
channels are well understood and have been clearly classified.
However, when it comes to physical markets the terminology in use is
rather vague, with this in mind and set within the broad framework of commodity
flow line and market channel
improvement, markets may be classified in three major categories namely:
1)
Regular Periodic Markets (RPM);
2)
Seasonal Markets; and
3)
Daily Markets.
This classification is entirely empirical and may be revised whenever
evidence, based on better insight or wider observations is available.
Until such time, the proposed classification will be of practical help in
the difficult task of approaching the development of the physical distribution
system for agricultural commodities.
REGULAR
PEIODIC MARKETS
A regular periodic market may be defined in general term’s as a market
with or without permanent or temporary market structures where rural and tribal
people gather once or twice on fixed day to exchange, buy and sell agricultural
or forestry produce and nonagricultural articles in small quantities.
ESSENTIAL
FEATURES
Regular periodic markets are mostly located in rural and tribal areas
usually within a walking distance from a well-traveled road.
COMMERCIAL
FUNCTIONS
Regular periodic markets are visited by producers of the neighbouring
areas and by itinerant petty merchants traders markets on each day of the week
thus completing a weekly cycle, which is repeated every week.
The distribution pattern of agricultural produce circulated in RPMs is
mostly of the closed circuit type limited to six or seven markets that form the
weekly circuit. One of the RPM may
function as a principal market in the circuit and operate twice a week.
A few markets in the circuit may function as an outlet to the commercial
wholesale circuit. A small corner
of the market is reserved for local traders and agents who buy commercial units
of agricultural produce directly from the producers, assemble the produce and
take it to the nearest daily markets with well established trade connection for
a given commodity or commodity group(s). These few markets connect the far off
periodic circuits with the commercial wholesale channel through local produce in
the area. Principal markets may
play a dominant role in the weekly circuit for a number of reasons:
1) They are in operation for longer duration or more days;
2) They constitute the main source of supply for itinerant traders; and
3)
They may function as a first link with the commercial wholesale channels.
IMPROVED PHYSICAL DISTRIBUTION
If a given market is selected for development, the following targets may be considered:
1)
Provision of sufficient space to display, stack and sell surplus
agricultural produce in commercial wholesale units;
Temporary structures for the purpose described under (a);
Improvement of roads leading to the RPM; and
Provision of petrol pump and automobile repair and spare-parts service.
SOCIO-ECONOMIC
ADVANCEMENT OF SPECIFIC GROUP
If market
is selected for this purpose, target improvement activities include:
(1)
Demarcation of places in the market yard reserved for the sale of
selected commodities by specific group according to traditional space patterns
observed in the market
(2)
Provision for public transportation to the market on the weekly-market
day and.
SURVEY
AND RECORDS
The
following items and points need to be surveyed and recorded prior to selection:
Identification and geographical location of RPM on map;
Separation of RPMs into full weekly market circuit;
Identification of principal RPMs in each weekly circuit and designation
of each circuit according to the principal RPM;
Classification of weekly market circuit according to the following
indicators;
Estimated number of people visiting the RPM;
Number of petty traders paying market fees
Type and estimated throughput of commodities; and
Total area covered by RPM;
Survey of the type and the quantities of forestry and agricultural
produce assembled or produced by society members and the place reserved in the
market for display and sale of such produce.
The following criteria may be considered in the process of selection of
markets for development:
Relative importance of a given RPM as a link in the commercial wholesale
flow channel for one or several commodities as expressed by indication given
under (4); and
Adequacy of a given RPM as a place for display and sale of agricultural
or forestry produce collected by society members as expressed by space/commodity
index per weight or count of specific produce items.
SEASONAL
MARKETS
DEFINITION
Seasonal markets are agricultural markets where one or only a few
agricultural commodities are traded. These
are located in the heart of an agricultural region specializing in the
cultivation of one or only a few crops (onion, citrus, jute etc).
They function as main assembly points for such crops and are visited by
agriculturist who produces a sizeable surplus for the commercial wholesale
circuit.
DEVELOPMENT
TARGETS
Seasonal market may be selected for improvement or development for the
following reasons:
Improvement of the physical distribution and marketing network for a
specific crop or group of crops leading to the selection of one or more markets
for upgrading or improvement of the market as a link in the total market chain;
improvement may be of a selective nature limited to
a.
Improvement in the physical infrastructure of the market (drainage,
roads, parking, water, light, public facilities etc);
b.
Improvement in the marketing and/or physical distribution capacity of the
market with the construction or upgrading of:
-
Sales/auction facilities for producers & traders.
-
Temporary storage capacity.
-
Transportation facilities.
-
Market information and
dissemination facilities and/or services;
c.
Extension of the physical distribution network involving the creation of
new market yard in expanding production areas, in new irrigation schemes or
wherever supported by a commodity flow analysis and feasibility study.
SURVEY AND RECORDS
Once a given crop or commodity group (such as food grains) is
selected for improved marketing and distribution, a number of facts and figures
need to be recorded and collected:
1.
Geographical location of seasonal markets where the crop or commodity
group is assembled and traded. The
network may be reproduced on both district and state map;
2.
Identification and qualification of road and rail transportation links;
3.
Recording of seasonal of market operations noting the beginning and usual
period of activity (once-twice or more times per year).
4.
Detailed survey of infrastructural and physical facilities available at
the market yard.
DAILY MARKETS
DEFINITION
These are permanent market places: typically structurally enclosed
lay-out or simply a market point along a street or highway, with continuous
daily trading activities at wholesale or semi-wholesale level or mixed wholesale
to retail activities.
ESSENTIAL
FEATURES
The continuous nature of the daily market activities may be due to the
permanent and continuous character of demand (city and town markets); the nature
of supply reflecting the diversity of crops produced in the hinterland (mixed
commodity markets) or the perishable nature of the crops brought to the market
(fruit and vegetable markets, fish markets etc.).
Market activities and transaction may be at the wholesale/semi-wholesale
and retail level. Such markets attract producers, commission agents and
wholesalers, retailers and retail consumers.
Dominance of any market users category in the market will define its
basic function as wholesale-semi-wholesale or retail market, or a primary
producers market, a traders wholesale market, a transit market, a terminal
market or as a retail distribution market.
DEVELOPMENT
TARGETS
1.
Segregation and reallocation of wholesale trade in a well connected
(road/rail/ water-ways) site provide with infrastructure able to support
facilities and service specially designed to improve, upgrade and speed up the
wholesale operation and activities.
Upgrading and improvement of the existing facilities, and services for
trade operations feasible at old sites.
Creation of new market with adequate facilities and services and
provision of the necessary infrastructure to support it whenever justified by
commodity flow analysis and feasibility study.
SURVEY
AND RECORD
2.
Geographical location of the market sites.
Physical features of market place:
a)
Total area;
b)
Number of trader’s shops;
c)
Total trading areas; with breakdown in traders sales and operational area
and common sales/auction platform area;
e)
Total storage capacity available, with break-down in private and
institutional storage capacity; and
f)
Type and number of market support and service facilities available such
as bank, post and telegraph office, agricultural input shop, sundry shop, petrol
pump(s), automotive maintenance, repair and spare part shop(s), wash and toilet
room(s), farmers dormitory, (with no. of bed) etc.
3.
Total yearly throughput (mention source information, commodities traded
at the market mentioning the flowing details for each commodity traded in the
market;
Trade particulars:
·
Number and type of trader’s agents operating in market such as
commission agents/ wholesalers/ small commission agents/mashakhors;
·
Description of type of sellers coming to the market;
·
List the main commodities/commodity group sold at the market and
for each such commodity/commodity group(s).
a) Identify the
seller as one of the following:
-
Original producers
-
Petty agent or trader
-
Cooperative agency
-
Other (Specify)
b)
Identify the buyer and estimate the number appearing at the market for
the same commodity or commodity groups – identify the buyer as:
-
Processor (miller etc.)
-
Retailer
-
Other (specify)
CRITERIA FOR SELECTION
a)
By the (estimated) total throughput
b)
By the projected throughput on a 10 to 15 years horizon
2) Importance of the market in the flow pattern or a specific
commodity or commodity group as measured.
a)
By the existing market throughput for the specified commodities or group
of commodities.
b)
By the projected throughput on a 10 to 15 years horizon.
Adequacy of the market
(1) as measured by the total area and/ or capacity or market facilities
available for the given market throughput.
Adequacy of the market in the frame of (2) as motioned by the total area
and/or capacity or market facilities and services available for specific
commodity throughput handled at the market.