CHAPTER

Preparation of master plan would ensure that the approach to planning for market development is more rational and that the investment in this sector yields optimum results.

A state master plan, once prepared provides a technically sound framework for market development planning for 10 to 15 years horizon. The master plan clearly spells out:
1) Where improvements are needed?
2) Which are the areas where new markets are required to be developed and
3) Prioritization of markets for development based on above

Market development programme, as stated earlier may be undertaken because markets need development to cater to the needs of the trade i.e. on the basis of the market specific parameters or to fulfill certain socio-economic objectives i.e. on the basis of socio-economic parameters.

MARKET SPECIFIC PARAMETERS
1) Commodity-wise arrival in the market
-         Monthly
-         Annual
2) Commodity-wise dispatches from market
-         Monthly
-         Annual
3) Sources of arrival
4) Destination of dispatches
5) Area of the market
- Operational area
- Total market area
6) Mode of transport and trade routes used for arrival and dispatches commodities.
7) Quantum of throughput serviced by the market
8) Rate of growth of total annual throughput
SOCIO-ECONOMIC PARAMETERS
1) Area served by the market
2) Population served by the market
3) Villages served by the market
4) Production in the notified area of the market
5) Rate of growth of population (2)
6) Rate of growth of production (4)

COLLECTION OF DATA
            Data collection for the preparation of State Master Plan for the development of agricultural produce markets may be collected by following certain steps which are as follows:
Step-1
            List of all existing market points (both regulated and unregulated) in the state and place them on a map differentiate regulated and unregulated markets. Include temporary or seasonal assembly and dispatch points where a sizable volume of agricultural produce is collected and from where it is dispatched either regularly or seasonally.

Step-2
            Obtain/collect for market/collection point information about (a) the total annual throughput in tones and (b) throughput broken up into individual commodities. This information can be had from:
-         Agricultural Produce market Committee, if it exists;
-         Total amount of revenue collected by market authority on the basis of rates of market free prescribed assuming an average price for each commodity;
-         Information on arrivals collected by enquiry from a group of members operating in the market;
-         A trader survey seeking information about the volume of trade handled during the season.
Step-3
            Regroup commodities identified and quantified under (b) of Step 2 into groups of commodities to form a FLOW PATTERN MATRIX. From the marketing point of view, a great number of commodities are handled, marketed and distributed in a set pattern. Similar types of commodities therefore, require same facilities in the marketing channel. (The group can be such as foodgrains under Government price support scheme, other cereals, pulses, fresh fruits vegetables, onions, potatoes etc).
Step-4
            Note with a fair degree of accuracy by visual survey (or by actual measurement where possible) the total available trading and operational space (m²) for each market point. This should also include the space where trade is undertaken around/adjacent to the market yard boundaries. Also record the number of market facilities available at each point (traders shops, storage, space etc.). Presence of facilities such as a bank or post/telegraph office in the nearby town and the distances to the market may also be noted.
Step-5
                   Obtain for each sub-group and for each market/market point the origin of the commodity group/the supply can be grouped as:
                   -    From within the district;
                   -         From other districts in the State; and
                   -         From areas out side the State.
Step-6
            Similarly, the destination point to which the commodity is dispatched from each market together with the distance from market to dispatched could be:
-         For local consumption within the city/town
-         To markets/areas within the district,
-         To other districts within the State;
-         To areas outside the State.

Step-7
Note the mode of transportation used to bring the commodity to the market. Similarly note the mode of transportation used for dispatch of commodities to site of storage or to terminal or transit market. The modes of transport commonly observed may include trucks, tractor-trolley, tempo, bullock carts, handcarts, rickshaws, animals, cycle, head- loads, rail, boats, etc.
Step-8
Draw on a map the road over which commodities are brought to and dispatched from the market. The type and condition of the roads viz. Kachha, Pucca, all whether and district roads etc. have also to be adopted drawn on the map with a suitable code.

DEVELOPMENT INDICATORS

It is possible at this stage to assess the importance of markets in the total flow context of and by evolving certain development indicators. Comparing information on volume throughput with information on market area and using the above planning parameters. The following development matrices can be developed:

A market importance index would permit a rather objective classification of markets as per their relative importance in the overall distribution system with a first indication of the degree of adequacy of each market in the total flow pattern. A MII is the rate of total trading and operational space (m²) and the total annual throughput (tones) i.e. adequacy of the trading and operational space vis-à-vis per tonnes of throughput.

Lower the value of MII, higher the inadequacy of the trading and operational space per tonnes of throughput and therefore, higher the importance of the market for development as per MII.

A seasonal market adequacy index would indicate the present adequacy or inadequacy of a given market considered as an isolated point in the marketing chain. A SMAI is the ratio of total trading and operational space (m²) and the total peak month throughput (tonnes) i.e. adequacy of the trading and operational space in relation to per tonnes of throughput of the peak month.

Total Trading and Operational Space (M²)

SMAI =Total Peak Month Throughput (Tonnes)

Lower the value of the SMAI, higher the inadequacy of the training and operational space per tonnes of throughput of the peak month and, therefore, higher the importance of the market for developmental as per SMAI.

Both indicators must be considered before a market is selected for development. With the use of the above indices it becomes possible to prioritise the markets according to their absolute importance in the distribution system and against the adequacy of trading and operational space available at the market.

An upstream service area index would indicate the upstream zone of influence of a particular market measured as percentage of arrival originating from the district, other districts of the state or from outside the state. Longer the distance the produce travels before reaching the market, higher the importance of the market for development as per USAI because of higher upstream service area or upstream zone of influence in the market.

A downstream delivery rating index would indicate the downstream zone of influence of a particular market measured as percentage of dispatches sent to the district for local consumption, other districts of the state or for, outside the state. Longer the distance the produce is sent different destination from the market, higher the importance of the market as per DDRI because of higher downstream service area or downstream zone of influence of the market. The DDRI of a market incidentally would also indicate whether the market is a transit market or a terminal market or a combination of both with varying degrees.

A road load factor would indicate the network used for arrival to and dispatches from the market of different agricultural commodities measured as percentage share of each road in the total throughput of the market. RLF would indicate the importance of a market in assigning priority to the market for the development. A market with well-connected road network would gain importance. If found necessary, RFL would also help in locating a new site for the market i.e. a new site for the market could be located nearer to the road whose percent share in the total throughput is the highest.

An absolute of quantum throughput serviced by the market would indicate the scale of the market in the total distribution system. Higher the scale, higher the importance of the development as per QTS indexes.

The rate of growth of throughput arriving at the market would indicate the trend of the throughput arriving at the market is increasing, decreasing or remaining constant over the past years. Higher the rate of growth of throughput higher the importance of the market for the development as per RGT indexes.

Every market serves a notified area in its jurisdiction, higher the average area served by the market, higher the importance if the markets for the development as per AAS index. This index also indicates where additional markets are required to be established.

Average number of villages served by a market would indicate the importance of the market from the socio-economic viewpoint. Higher the average number villages served, higher the importance of the market for development as per AVS index.

Every economic activity is to serve human beings and markets are no exception. Each market cater to the needs of the population in its notified area and, therefore, larger the average size of the population a market serves, higher the importance of the market as per APS index.

The rate of growth of the population a market is serving to would indicate the role the market has to play in future. Higher the rate of growth population, higher the importance of the market as per RGP index

In order to determine the priority of markets for development, a method of scoring and ranking has been developed and adopted. Markets may thereby assigned a score as per the value of each indicator. This score is the weight assigned to obtain the points for each indicator.

During last couple of years, the market development system has undergone a great change. Where the facilities have been provided utilization does not commensurate with the level of investment. And, therefore, trade has not been shifted to these markets. On the other hand, there are markets where lot of congestion has taken place. Consumption pattern of the people is changing rapidly because of changing work culture, capabilities and rise in income. They need food produce at doorstep and of high quality. Contrastingly, the market share (Mandiyard) in city food supply is reducing -down drastically. Wholesale and retail handling system require different treatments and differs to each other. Lack of parking and circulation area in most of the market is another big problem. The land use pattern of these market places is just contrary to what has been recommended by FAO. Parking and circulation area in a market should not be less than 65% of the total space while it is nearly 25% merely. Lack of storage and warehousing facility is another constraint. Lack of handling facilities, mechanized grading, packing, off-loading, sorting, etc requires huge private investment. Private sector participation in these facilities needs economic size of trade, large-scale operations, and establishment of large-networked-chain.

            It is in this backdrop, the present study was assigned to NIAM in order to prepare a bankable document, which speaks of a wholistic view of the State, and estimate the level of investment required. To fulfill the need following objectives were decided: -
1.      Assessment of development requirements in terms of infrastructure facilities and amenities of agricultural produce markets with reference to projected arrivals over the next 5-10 years.
2. Phasing of the development programs on the basis of assessment of individual markets based on various indices. 3.   Indicate the order of priority for development.
4.      Work out the cost estimate of development.
5.      Estimate the requirement of land/space.
6.      Work out the total cost of the development programme.
7.      Calculate internal rate of return and undertake financial analysis based on income and expenditure projections.
8.      Proposed suitable administrative legal, financial, managerial and institutional support need to implement the market development programme.
9.      Workout the flow pattern of marketing in case of major commodities.
10.      Suggest suitable land use pattern for different markets.

It will be a self-contained document, which can be presented to financing institutions for funding. The report will take note of the present and future levels of arrivals arising from production programmes under implementation, increase in population, and likely changes in marketing practices, systems, procedures and technology.

Large-scale data, as specified earlier, were collected from field through the trained investigators of the Board. Various trainings were organised at different locations and census survey was carried out. All 115 markets were surveyed but the data of 109 markets were found worth analyzing. Broadly speaking two categories of markets are made for assessment of requirement of level of investment.
A) Markets Needing Full Development.
B) Markets Needing Partial Development.

Requirement of facilities and space has been calculated based on projected arrival of markets (linear and compound growth rates). Apart from the specified objectives, it has also been tried to provide with indicative areas/ proposals of investment on infrastructure and extension, etc. The report/ plan contains following chapters:

Executive Summary
Chapter I          Master Plan: Its Concept and Significance
Chapter II       Prospect s of Physical Food Marketing
Chapter III       Methodology and Design
Chapter IV       Dynamics of Market Arrivals
Chapter V        Future Projections of Arrivals
Chapter VI       Requirement of Market Space
Chapter VII      Land use Pattern in Markets
Chapter VIII    Analysis of Transport Used
Chapter IX       Cost Estimates and Funds Requirement
Chapter X        Calculation of Financial and Economic Viability
Chapter XI       Priority Rating and Phasing of Market Development Plan
Chapter XII      Modernisation Proposals and Development of Other Marketing Infrastructure
Chapter XIII    Managerial and Operational Efficiency Improvement Proposals

A large number of secondary level information on different aspects of marketing, prices, cost norms, production, time-series data have been collected from various published/ unpublished sources. Department of P.W.D schedule rates of Chhatisgarh have been used for estimating the cost of development of markets. Rates furnished by the Chhatisgarh State Agriculture Marketing Board are furnished as under: -

SN.	Items	Unit	Rate (in Rs.)
1.	Trading Area a) Open Auction Platform b) Covered Auction Platform c) Average	Sq/Meter Sq/Meter Sq/Meter	600/- 2300/- 1500
2.	Office Building	Sq/Meter	4000/-
3.	Boundary Wall	Running Meter	1600/-
4.	Shops-cum-Godowns	Sq/Meter	3800/-
5	Internal Road	Running Meter	4000/- (7.50 Meter width)
6	Development Parking and Circulation Area	Sq/ Meter	250/-

In fact, true application of techniques of preparation of Master Plan could not be applied because of non-availability of data. In most of the cases where data has been provided by State agencies large-scale inconsistency has been observed. For example, all indices of importance of market could not be developed, as the need information was inadequate. It is expected that analysis based on furnished information may not be absolutely true and therefore it requires physical ground verification by the Marketing Board before accepting /approval of the report. Particularly, aspects of year-wise arrival of each market, level of available facilities (trading area, parking & circulation, administrative building, open space for future expansion, etc,) needs to be checked up again.

MARKET DEVELOPMENT PROPOSALS