Indian Agricultural Marketing Notes part 4

Indian Agricultural Marketing Notes
(భారతదేశ వ్యవసాయ మార్కెటింగ్)

Introduction & Basic Definitions

Market (మార్కెట్)

• A place or situation where buyers (కొనుగోలుదారులు) and sellers (అమ్మకపుదారులు) meet.
• Fundamentally an event (సంఘటన), not just a physical place (స్థలం).

Agricultural Marketing (వ్యవసాయ మార్కెటింగ్)

• The entire process to move produce from producer (రైతు) to consumer (వినియోగదారుడు).
• Includes all activities post-harvest.
• Distinction: Market = Meeting, Marketing = Process.

Factors Affecting Farmer's Income (రైతు ఆదాయం)

Farmer's income depends largely on:

a) Marketable Surplus (విక్రయం కాగల మిగులు)

• Quantity left for sale after farmer's own consumption (సొంత వినియోగం).
• Example: Produce 200 quintals, consume 50 = 150 quintals surplus.

b) Marketing Stages/Efficiency (మార్కెటింగ్ దశలు)

• Effectiveness of post-harvest processes. Inefficiency reduces income.

Stages in Agricultural Marketing (మార్కెటింగ్ దశలు)

Efficient management of these stages is crucial:

1. Assembling (సమీకరణ): Gathering produce.
2. Grading & Standardization (గ్రేడింగ్ & స్టాండర్డైజేషన్): Sorting by quality (నాణ్యత) and assigning standards.
3. Processing (ప్రాసెసింగ్): Converting raw produce (paddy to rice, etc.).
4. Packing (ప్యాకింగ్): Packaging for protection and transport.
5. Distribution (పంపిణీ): Transporting and delivering to consumers.

Types of Agricultural Markets (Structure/Place)

a) Primary Markets (ప్రాథమిక మార్కెట్లు)

• Location: Rural areas.
• Operation: Periodically (weekly markets - సంతలు).
• Infrastructure: Lacks proper storage, weather protection, credit.
• Volume: >50% of produce sold here.
• Names: Haats (హాట్) / Bazaars (బజార్) (North), Shandies (శాండీలు) (South).
• Issues: Informal credit prevalence.

b) Secondary Markets (ద్వితీయ మార్కెట్లు)

• Location: Small towns, Mandal HQs.
• Operation: Permanent structures, more frequent.
• Infrastructure: Better facilities (storage, banking).
• Coverage: Larger area (~775 sq km mentioned).
• Names: Mandis (మండీలు), Gunjs (గూంజులు), Wholesale Markets (టోకు మార్కెట్లు).
• Support: Often Government supported.

c) Terminal Markets (అంతిమ మార్కెట్లు)

• Location: Large cities (1-2 per state).
• Role: Final destination for bulk produce; hubs for inter-state trade, export, processing supply.
• Examples: Hyderabad, Warangal (TS); Vijayawada (AP).

d) Santalu (సంతలు - Fairs/Festivals)

• Occasion: During religious fairs (జాతరలు), festivals (తిరునాళ్ళు).
• Focus: Mainly livestock trade (పశువుల క్రయ విక్రయాలు).
• Prevalence: Maharashtra, Gujarat, Rajasthan, etc.

e) Regulated Markets (క్రమబద్ధమైన మార్కెట్లు)

• Importance: Very High.
• Regulation: Established under state legislation (APMC Acts).
• Aim: Protect farmers via fair practices, correct weights, transparency.
• Management: Agricultural Produce Market Committees (APMC - వ్యవసాయ మార్కెట్ కమిటీ).
• Location: Designated Market Yards (మార్కెట్ యార్డులు).
• Trade: Only *notified* commodities (often with MSP); *licensed traders*.
• Supervision: By committee officials, farmer & trader representatives.
• APMC Structure (Examples):
  • Andhra Pradesh: 18 Members (11 Farmers, 3 Traders, 4 Others).
  • Telangana: 15 Members (10 Farmers, 3 Traders, 2 Others).
• Market Yards (Approx):
  • Telangana: 192 Committees -> 279 Yards.
  • Andhra Pradesh: 217 Committees -> 324 Yards.
• Revenue: License fees & 1% market cess on transactions (paid by buyer).
• Issues: Trader collusion, ineffective MSP, distress sales persist.

Rythu Bandhu Scheme (Central Govt - Pledge Loan, 1990)

Note: Different from the Telangana State scheme.

• Purpose: Prevent distress sales due to low market prices.
• Mechanism:
  • Farmers store produce in APMC godowns.
  • Pledge produce with Market Committee.
  • Get loan up to 75% of produce value.
  • Maximum loan: ₹2 lakhs (AP & TS).
  • Interest: Free for first 180 days (6 months); simple interest (6-12%) after.
  • Farmer sells when prices improve; loan (+ interest) deducted from proceeds.