A bumper crop can turn out to be a big loss for farmers in the absence of efficient marketing system. Efficiency of agricultural marketing in the country is low as a result of inadequate and improper infrastructure facilities, large number of intermediaries in supply chains and archaic marketing policies. Most of the time farmer is not receiving even 50% of the price paid by consumer for perishables. About 25-30% of perishables produced are wasted due to inefficient handling, transportation and storage conditions. Various measures initiated by governments during the last six decades to protect the interests of farmers and consumers failed to achieve the desirable results.
Ministry of Agriculture has introduced Terminal Markets as a new component under National Horticulture Mission launched in 2005-06 for holistic development of horticulture. Government has ambitious plans of starting terminal markets in Nasik, Mumbai, Chandigarh, Sambalpur, Hyderabad, Visakhapatnam, Tirupati, Hassan, Hubli and other places to address the marketing problems of fruits and vegetables. First terminal market in the country named as Safal Market was started by Mother Dairy Fruit and Vegetable Ltd, a subsidiary of NDDB, in Bengaluru in May 2004 on the request of Government of India.
The objective of proposed terminal markets is to reduce the number of intermediaries in supply chains, improve the marketing efficiency and infrastructure facilities, bring transparency in marketing and to protect the interests of farmers and consumers.
Concept of Terminal Market Complex:
Terminal markets were envisaged to provide all the required facilities and services for marketing under one roof and connecting farmers directly with wholesalers, retailers, processors and exporters. The operation of Terminal Market is based on hub-and-spoke format in which the Terminal Market acting as a hub is connected to many collection centers which act as spokes. The Terminal Markets would be located near cities (consumption centers) and collection centers would be conveniently located at villages’ level (production centers). The catchment area of a collection center depends on convenience needs of farmers like transportation to collection center, operational efficiency and capacity utilization at the center. Terminal Markets would establish backward linkages with farmers through collection centers by forming groups or associations and forward linkages with wholesalers, retailers, cash and carry stores, processors and exporters. It is envisaged to provide world class infrastructure and facilities at terminal markets which include cold storages, temperature controlled warehouses, ripening chambers, facilities for electronic auction, quality testing, packaging, banking and transportation. Revenue for terminal markets would be generated in the form of service charges, rent and license fee. Terminal Markets in the country are envisaged to be built, operate and owned by a private enterprise selected through a competitive bidding process.
Governments’ initiative to encourage private sector participation to set up terminal market complexes is commendable. However, this ambitious initiative should not result into another failure in agricultural marketing. Proper care should be taken in execution and establishment of operations of terminal market complexes. Creation of infrastructure facilities will be the easiest part of the projects and difficulties may be encountered in backward and forward linkages. Comprehensive studies may be undertaken before starting other markets to find the efficiency, viability and potential problems in implementation and operation of existing Safal Market. Studies will help in making suitable amendments in the proposed plans and avoid repeating some of the mistakes, if any, of the existing market. Other terminal markets may be started only if the present market is working according to desired objectives. Terminal markets should not make way for mere replacement of small traders/intermediaries with larger enterprises without achieving the actual purpose for which they were designed. The range or maximum amount of service charges that can be collected by terminal markets has to be specified by governments before starting of bidding process for markets.
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Safal has set a milestone in marketing of Horticultural commodites and have reduced the number of middleman in the value chain which helps to give good price to the farmers. Can any body suggest me what are the prblems of marketing in Safal. I am really interested to know those problems and please let me know how these problems can be solved by existing resources available to Safal
Hi,
As a former I see many problems in the existing market. here is my first experience hyderabad Fruit market.
With my first Mousambi crop I took the entire load to GaddiAnnaram fruit market after enquiring the ongoing price. The market agent said the current price is between 8000 to 10000.( I thought it is reasonable price)
So based on this I went to the market all the way traveling from Nellore to Hyderabad.
Now I saw the problem which never expected.
1) Unloaded the fruits and kept it on Bidding place at 8.00 AM.
2) All the buyers ensured that there would not coming any more prodcut for that day. (This gives them to finalize what price to start off based on the available quantity in the market. by this time they know the total availability)
Later I realised that there is no any external buyers there, it is only the syndication from all the fruit agents it self.
3) I analyzed that it was around 70 tons of the total product on bidding dias.( which is little bit in higher side on average)
4) Now the market agent which i negotiated ( middle man) started the price at 7000 for my lot. and some other people took this price to 7200 and then finalized on 7500. No body is increasing beyond that.
5) some how it is fine till now even though it is not the expected price.( I expected for fruits at least 9500 as fruits is in good condition and shining)
6) Now the actual conditions are mentioning by the agent started.
a) Commission 9% + 1% to market fees( which is probalby ok even though Market norms says it should not be more than 4% commssion +1 % market fees)
b) Agent wants 200kgs of fruits on the total Load. he explains this is for grass material wastage. (generally during loading of the fruits we use Grass for fruit safety). which is not more than 10-20 kgs. at max of 30kgs). He says this is required and every agent takes this much fruits by agent.
c) Agent asked 100 kgs more per ton( I had to give 800 kgs as my total load was 8 tonns) in the name of "chut", I could not understand what this for. He explains that this is for the wastage which he expects that the buyer is going to loose wait in his transport to delhi/or other places wherever he exports. " He compares this very well with Iron and steel. he says your product is not a steel which is going to be there forever. "
7) So totally I forced to give approximately 23% on my product to the commission agent it self.
I was expecting that i will get 72k before going to the market, but after gong though all this procedure I got only 45000/-(my product become 7 tonnes after giving the chut and wastage, and 7 tonns sold 7500*7=52500 and on this 10% is commission i.e 5250/- and i left with 47250.
These charges are only for selling my prouct. there are other charges like for fruit picking i had to pay around 1k per ton i.e 8k and transport is 10k.
So it become 47250-18k=29250.( offcourse this are unavaoidable)
but still there is lot of chance to reduce the commissions to the agents as per market norms (as per market norms it suppose to be 4+1% only which does not cost more than 2500 to 3k but in my case it costed around 13k).
I could not complaint to any of the market people that day as I already exhausted during that day. not by physical work by looking all this charges.
And next day I went to market chairman office, I could meet one person he says these things are normal and every market agent charges like that. he admits its not by one person. He said "if you want you can give a written complaint and we will take the action". but so far I did not heared any thing from them.
In one transaction the marketing agent is getting simply 22% which is I think highest margin in any of the business.
Later I realised with other farmers that these things already faced by them and hence they never go to market and sell their product to one more middle person at Fields it self. But that makes another 25-30% making loose.
I dont think any farmer will take this much of risk while selling the fruits, so most of the people sell the fruits at their fields it self to another middle man.
If any body can help to improve or giving more support to farmer I can work with you people for better Agri marketing, like Sudharshan naidu said about the Terminal marketing kind of things.
there is new player in the field of agricultural marketing.....having very transparent ideas...u guys can check it up....its site is-www.cropextechnology.com
ciało, na szczęścіe estetycznе, ωylizane z kretesеm szorstkim, renegotiation ѕmoczym
językiem. Było ich coraz wіęсeϳ, pewnе nіkłe
wcześniеj, rozpadająсe ѕіę.
Garść zabrzęczało trącone kolanem, rуcerz
przyw.
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