Market information services

Market Information Service(MIS)-Definition ,Objectives , Significance , Impact Of MIS

1. Market Information Service(MIS)-Definition ,Objectives , Significance , Impact Of MIS

2. Market Information Services Market Information Service (MIS)is a means of increasing the efficiency of marketing systems and promoting improved price formation . Improved information enables farmers to plan their production more in line with market demand, schedule their harvests at the most profitable times , decide to which markets they should send their produce and negotiate on a more even footing with traders.

3. Improved information should enable traders to move produce profitably from a surplus to a deficit market and to make decisions about the viability of storage of produce during peak season. In designing a service, sustainability and commercial utility should be the prime considerations. It also implies tailoring the service to meet the resources available and only expanding operations when additional funds can be obtained on a long-term basis.

4. MIS is defined as a service, usually operated by the public sector , which involves the collection on a regular basis of information on prices and in some cases, quantities of widely traded agricultural products from rural assembly markets, wholesale and retail markets and dissemination of this information on a timely and regular basis through various media to farmers, traders, government officials, policymakers and others, including consumers. Definition

5. Objectives To generate information on wholesales prices, arrivals and trends in various markets of the country for important food grains ,fruits, vegetables & flowers, etc. To establish a nation-wide communication network for speedy collection and dissemination of market information data for its efficient and timely utilization. To develop a sound marketing strategy especially by making use of statistics generated by various Marketing Boards/ APMCs for optimizing returns to the producers.

6. Cont.. To analyze the trends of arrivals, prices and other related factors of the commodity markets all over the country. To collect and disseminate information on international prices prevailing in potential foreign markets . To establish Web-sites and internet connection through efficient channels/systems for dissemination of national & international data.

7. Significance of Market Information Services A Market Information Service is seen as providing transparency , i.e. a full awareness of all parties of prevailing market prices and other relevant information. It can contribute to arbitrage , i.e. the act of buying at a lower price and selling at a higher price.

8. “ spatial arbitrage” takes place while Traders take advantage of price differences until these differences decrease to the level of transaction costs. “Temporal arbitrage” is the storing of products in order to take advantage of expected higher prices later in the season or, in some cases, in subsequent years.

9. Impact of Market Information Services They can facilitate efficient allocation of productive resources . The bargaining position of farmers with traders can be improved. Information reduces transaction costs (i.e. the costs of selling the produce) by reducing risks. Farmers with timely and reliable information and the ability to interpret it, can decide to which market they should send their produce to maximize returns or, indeed, whether to send their produce to market at all.

10. 4. Lack of information is an entry barrier to both production and trade. Where farmers have access to information, shifts in cropping patterns to higher value produce have been noted. In the area of trade , individuals find it difficult to begin trading without information, so reducing competition within markets 5. Market information can be particularly valuable where countries are changing over from a state-controlled marketing system to one of private enterprise, in that farmers and small traders are made more aware of market opportunities

11. 6. By contributing to more efficient marketing , particularly improved spatial distribution, market information should be beneficial for consumers as well as farmers and traders. Information on retail prices may also, under certain circumstances, assist consumers to bargain 7. The essence of a good Market Information Service is that it should provide commercially useful information on a timely basis .

12. 8. Information is also useful to policy makers . This improves policy formulation as the functioning of markets comes to be better understood 9. Market information is also an important component of Early Warning systems for food security as it can assist in identifying areas of possible shortages and can highlight whether prices are above or below normal seasonal trends

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