agricultural economics marketing ppt.pptx

agricultural marketing

1. Assignment (aec 503) Submitted by – SABHAYA JINAL V. Reg.no.- 2010123054 Submitted to Dr. A. S. Shaikh Professor & head Department of Agricultural Economics BACA, AAU, Anand

2. Content..

3. 1.Regulated market DEFINITION A regulated market is one which aims is the elimination of the unhealthy and unscrupulous practices, reducing marketing cost and providing facilities to producer-sellers in the market. Any legislative measure designed to regulate the marketing of agricultural produce in order to establish, improve and enforce standard marketing practices and charges may be termed as one which aims at the establishment of regulated markets. Regulated markets have been established by State Governments and rules and regulations have been framed for the conduct of their business.

4. The regulated market committee consisting 17 members of which, 8 are farmers representative, 4 are traders' representatives, 2 are co-operative marketing society, 1 is Panchayat or Municipality, 1 is a revenue officer and 1 is a Government representative. Regulated market is functioning under this committee by the staff working under it. Marketing committee has to see that all the traders obtain licenses for working in the market produce is sold by open auction. It is properly weighted by the licensed weight man, purchaser and sellers are recorded payment is made at the spot to the farmers. There are no illegal deductions. The bad practices of marketing are eliminated and banking facilities, storage, lodging and boarding facilities, shed for carts and bullocks and other needs and information services are provided.

5. Objectives 1. To prevent the exploitation of farmers 2. To make the marketing system most effective and efficient so that farmers may get better prices for their produce, and the goods are made available to consumers at reasonable prices; 3. To provide incentive prices to farmers for inducing them to increase the production both in quantitative and qualitative terms.

6. 4. To promote an orderly marketing of agricultural produce by improving the infrastructural facilities. Important features of regulated markets Under the provisions of the agricultural produce market act, the state government gives its intention to bring a particular area under regulation by notifying market areas, market yard, main assembling market and sub market yard, if any, under the principle regulated market.

7. Benefits of Regulated Market 1. They provide all the facilities needed by farmers in the marketing centers which will attract them to coming to the markets where buying and selling is regulated. 2. In such market due to open auction system farmer and trader are bought on equal stage. 3. The prices are quoted open and are paid in cash on the spot. 4. The farmers are assured by fair price in the market. 5. Illegal deduction and other bad marketing practices are avoided, and farmers are protected from paying extra charges. 6. Proper weight is done, in some market grading is also done and warehouses are there to keep the produce. The farmers get to day information regarding price and arrivals of market.

8. Salient features of the APMC Act 2002 1. The act divides the State into market areas. The market area is administered by a separate Agricultural Produce Market Committee (APMC). 2. The act allows the establishment of new markets by growers, legal persons, and local authorities. 3. It promotes directly selling farm produce to contract farming sponsors from the farmer’s field. 4. It establishes a single-point levy of market fees on notified agricultural produce.

9. 2.Market information Meaning : Market information may be broadly defined as a communication or reception of knowledge or intelligence. It includes all the facts, estimates, opinions and other information which affect the marketing of goods and services.  

10. Types of Market Information :   Market information is of two types: Market Intelligence Market News Market Intelligence: This includes information relating to such facts as the prices that prevailed in the past and market arrivals over time. These are essentially a record of what has happened in the past. Market intelligence is therefore, of historical nature. An analysis of the past helps us to take decision about the future. .

11. b) Market News: This term refers to current information about prices, arrivals and changes in market conditions. This information helps the farmer in taking decisions about when and where to sell his produce. The availability of market news in time and with speed is of the utmost value.

12. Criteria for Good Market Information: Good market information must meet the following criteria so that it may be of maximum advantage to the users: a) Comprehensive: Market information must be complete and comprehensive. It must cover all the agricultural commodities and their varieties, and all the geographical regions. It must cover prices, production, supply movements, stocks and demand conditions.   b) Accuracy: The accuracy of market information is essential. The collection of accurate market information is a tedious and expensive task under changing market situations. There must be honesty in the collection of the information. Constant efforts should be made to improve its accuracy. c) Relevance: Market information must be relevant in the sense that it must be collected, arranged and disseminated, keeping in view the user’s interest.

13. It is not enough to simply collect a mass of data and report them through various media; the data must be accurate and useful. d) Confidentiality: There must be a sense of confidentiality among the firms for whom the information has been collected. The information revealed under this situation of confidentiality will be more correct and may assist in drawing policy implications. The names of firms should not be leaked out. e) Trustworthiness: The agency that collects it must create faith, and the users must trust the organization which is making this information available to them.   f) Equal and Easy Accessibility g) Timeliness

14. 3. e- choupal e-Choupal is a Hindi word which means “ village meeting place ” Market is a meeting place where vendors and customers come together to do transactions. e -Choupal is a virtual market place where farmers can transact directly with a processor and can realize better price for their produce Bottom of pyramid model: It is referred to business model that deliberately target the poorest socio-economic group constituting large part of community, often using new technology.

15. Launched by the Agri Business Division of ITC in June 2000. Distinctive sourcing capability for ITC’s Foods business- Vertical Integration One of the largest initiatives among all Internet-based interventions in rural India. 'e-Choupal' services today reach out to over 4 million farmers growing a range of crops - soybean, coffee, wheat, rice, pulses and shrimp. over 40,000 villages through 6500 kiosks across ten states (Madhya Pradesh, Haryana, Uttarakhand, Karnataka, Andhra Pradesh, Uttar Pradesh, Rajasthan, Maharashtra, Kerala and Tamil Nadu).

16. e-Choupal facilitates It transmits Information (weather, prices, news) It transfers Knowledge (farm management, risk management ) It facilitates sales of Farm Inputs (screened for quality) It offers the choice of an alternative Output-marketing channel (convenience, lower transaction costs) to the farmer right at his doorstep It is an interlocking network of partnerships (ITC + Met Dept + Universities + Input COs + Sanyojaks, the erstwhile Commission Agents) bringing the “best-in class” in information, knowledge, and inputs.

17. ITC e-Choupal supply chain model. 

18. Sanchalak Sanchalak is identified from within the e-Choupal village. Sanchalak is selected on the basis of education, age, family size, caste, political lineage and other affiliation. Sanchalak is made to take a public oath in which he swears to perform his job without any bias with full honesty and commitment. Sanchalak encourages farmers to become the member of e- choupal by explaining to the farmers various benefits, e- choupal can provide.

19. Other Services through e- Choupal Distribution of Products and Services to Rural Markets Choupal Sagar Through Sanchalaks Micro marketing Product/Services Demos Marketing and Brand Building activities Pilots Bhoomi, e-governance project e-health with Private Health Service Providers e-Education Rural BPO

20. 4.Market intervention scheme The Market Intervention Programme (MIS) is an ad hoc programme that covers horticulture and other agricultural goods that are perishable in nature and are not covered by the minimum support price scheme. At the request of a State Government, the government adopts M.I.S. for a specific commodity to safeguard growers of certain horticultural/agricultural commodities from making distress sales in the case of a large crop during the peak arrival time when prices fall to very low levels. The losses are split 50:50 between the union government and the state government(s).

21. About Market Intervention Scheme -In the case of a drop in market prices, MIS is a price support instrument for the procurement of perishable and horticultural goods, adopted at the invitation of state governments. -Whenever there is at least a 10% gain in production or a 10% fall in ruling rates over the preceding normal year, it is deployed. -Its goal is to safeguard growers of various horticultural/agricultural commodities from having to sell their crops at a loss if there is a bumper crop.

22. -Support can be supplied under MIS in specific years, for a restricted but defined duration, in specific essential markets, and by purchasing specific amounts. The initiative must come from the state in question. -Apples, garlic, oranges, grapes, mushrooms, clove, black pepper, pineapple, ginger, red chilies, coriander seed, chicory, onions, potatoes, cabbage, mustard seed, castor seed, copra, palm oil, and other commodities have all been covered by the MIS.

23. In the event of a surplus in production and a drop in prices, MIS offers farmers remunerative rates. The proposal of MIS is accepted on the particular request of the state/UT government if they are willing to face a 50% loss (or 25% in the case of the North-Eastern States) if it is implemented . In addition, the total amount of loss shared is limited to 25% of the overall procurement value, which covers the cost of the commodities procured plus allowed overhead charges.

24. Implementation of Market Intervention Scheme The scheme is implemented by the Department of Agriculture and Cooperation. National Agricultural Cooperative Marketing Federation of India (NAFED), as the central agency, procures a pre-determined amount at a fixed MIP under the MIS. Other state-run agencies have been designated for a set amount of time or until prices stabilize above the MIP, whichever comes first. The operation’s scope is limited to the state.

25. Funds Transfer Grants are not distributed to the states through MIS. Alternatively, the central share of losses is distributed to the State Governments/UTs for which MIS has been authorized, depending on particular proposals submitted from them, in accordance with MIS standards.

26. Recent Developments The Market Intervention Scheme (MIS) for the procurement of apples in Jammu and Kashmir (J&K) has been extended for the current season, 2020-21 as well, under the same terms and conditions as the previous season, 2019-20. It will secure remunerative apple pricing, resulting in an increase in overall income for apple growers in J&K.

27. Thank you!