2. I SEMINAR
ON
Presented By:
Preety
PGS12RHS390
Jr. MHSc.2

3. With globalization of the market, farmers need
to transform themselves from mere producers-
sellers in the domestic market to producers
cum sellers in a wider market.
Producers
Sellers
Produc-
ers
Sellers
3
Introduction

4. Keeping this in view, MANAGE started
working on the concept of „Market-Led
Extension‟ and a beginning was made through
a three day national workshop on Market-Led
Extension at MANAGE during 18th-20th
December, 2001.
• Market led means identification of customer
needs and wants before offering service.
4

5. • Market led extension is
market ward orientation of agriculture through
extension
includes agriculture and economics
• The perfect blend for reaching at the door steps of
farming community with the help of appropriate
technology.
5

6. Why MLE?
• Even after 65 years of independence, the
quality, timely and cost effective delivery of
adequate inputs remains a dream
• Farmers are not able to sell their surplus
produce remuneratively
• Plenty of distress sales among farmers
6

7. Knowledge-skill
input crisis
Efficacy crisis
Credibility crisis
Reorganization
structure crisis
With the changing scenario of Indian agriculture, with
newly added face of marketing, the extension system is
likely to undergo series of crises:
7

8. NEED
8

9. Paradigm Shift from Production-led Extension
to Market Led Extension
Aspects Production led
extension
Market led extension
Purpose/Objective Transfer of production
technologies
Enabling farmers to get
optimum returns out of
the enterprise
Expected end results Delivery of messages,
Adoption of package of
practices by most of the
farmers
High returns
Farmers seen as Progressive farmer/High
producer
Farmer as an
entrepreneur
“Agripreneur”
Focus Production/Yields. “seed
to seed”
Whole process as an
enterprise/ High returns.
“rupee to rupee”.
9

10. Aspects Production led
extension
Market led extension
Technology Fixed package
recommended for an
agro climatic zone
covering very huge area
irrespective of different
farming situations
Diverse baskets of
package of practices
suitable to local
situations /farming
systems
Extensionists interaction Messages/ Training/
Motivating/
Recommendations
Joint analysis of the
issues, varied choices
for adoption
Linkages/ Liaisons Research-Extension-
Farmer
Research-Extension –
Farmer- Market
Extensionists’ role Limited to delivery mode
and feedback to
research system
Enriched with market
intelligence besides the
TOT function.
10

11. Aspects Production led
extension
Market led extension
Contact with farmers Individual Farmer’s intrest group/
Commodity Intrest
Groups/ SHGs
Maintenance of records Not much importance as
the focus was on
production
Very important as
agriculture, viewed as an
enterprise to understand
the cost benefit ratio and
the profits generated
Information and
technology support
Emphasis on production
technologies
Market intelligence
including likely price
trends, demand position,
current prices, market
practices,
communication network
etc. besides production
technologies. 11

12. Flow Chart of Agriculture as an Enterprise:-
Rupees
(Credit/Investment)
What to produce
Analysis of land
holding for
suitability of crops
Decision on how
much to produce
How to produce
Post harvest
technology
Value addition
Storage/ Transport When to sell
Where to sell
At what price to
sell
Selling Rupees
12

13. • With the emergence of
agriculture as industry, farmers
no longer function in isolation
and most of the production
decisions are governed by
marketing firms and consumer
preferences.
• Farming sector would be
successful only when farmers
produce what market wants,
rather than what they are good
at producing.
• Farmers, agricultural input
suppliers and marketing firms
need to work in cohesion, so
that, enterprises are mutually
benefitted.
13

14. OBJECTIVES
1.
• Conversion of Agriculture sector into profit oriented business.
2.
• Strengthening R-E-F linkages – between various department at
various levels.
3.
• Strengthening market linkages to farmers – IT application in
Agricultural marketing.
4.
• Wider use of electronic mass media for Agricultural Extension.
14

15. Required information to extension system
and farmers for MLE
Present agricultural scenario and land use pattern
Suitability of land holding to various
crops/enterprises
Crops in demand in near future
Market prices of crops
Availability of inputs
Usage of inputs
Credit facilities
15

16. Desired qualities of the products by consumers
Transport facilities
Market network of the local area and the price
differences in various markets
Network of storage and warehouse facilities
available
Regular updating of market intelligence
Production technologies like improved
varieties, organic farming, usage of bio-
fertilizers and bio-pesticides, IPM, INM, and
right methods of harvesting etc.
16

17. Post-harvest management like processing, grading,
standardization of produce, value addition,
packaging, storage, certification, etc. with reference
to food grains, fruits and vegetables, eggs, poultry,
fish, etc.
Contract farming
Private modern terminal markets
Food retail chains
Food safety and quality standard
Certification
WTO regulations
17

18. 18
So how
should the
market be for
MLE???

19. Markets
• Markets must be available and profitable
• Potential risks include:
rapid price fluctuations;
highly competitive markets;
limited number of buyers.
19

20. Agri-Markets in India as on 31.03.2007
6261 Wholesale Markets in India (majority are regulated markets)
20870 Rural Primary Markets (about 15% are regulated markets)
Total – 27131
2459 Principal Regulated Markets
5006 Regulated Market Sub-yards
Total – 7465
(Only 286 regulated markets in 1950)
20

21. Roles of Extension System in Light of
Market Led Extension
• SWOT analysis of the market
• Organization of Farmers‟ Interest Groups (FIGs)
• Supporting and enhancing the capacities of locally
established groups under various schemes
/programmes
• Enhancing the interactive and communication skills
of the farmers
• Establishing marketing and agro-processing linkages
between farmers‟ groups, markets and private
processors.
21

22. • Advice on product planning
• Educating the farming community
• Direct marketing: farmers need to be informed about
the benefits of direct marketing.
• Capacity building of FIGs in terms of improved
production, post harvest operations, storage,
transport and marketing.
• Regular usage of internet facility and production of
video films of success stories of commodity
specific farmers.
22

23. Market
Related
Extension
Related
Production
Related
Problems in MLE
23

24. Production related
• Seasonality of
production: Supply
not uniform
throughout the year.
• Perish ability of
produce: Problem of
storage
• Bulkiness of
production:
Transportation
problem
Market related
• Non – availability
of MI
• Existence of many
middleman
• Inferior quality of
produce
• Export promotion
• Supply chain
management
• Retail market
Extension related
• Lack of
communication
skills.
• Lack of
credibility
• Insufficient
information
related with
market and many
more
24

25. MLE – ITS CHALLENGES
Market size is large and continuously expanding, but marketing
system has not kept pace.
Direct marketing “farmer-consumer” is negligible.
85% of the 27,294 rural periodic markets, facilities for efficient
trade is still almost absent.
7200 market yards/sub yards are inadequate, ill equipped and
mismanaged.
Due to lack of proper handling at farm gate lead to 30% fruits and
vegetables, 7% grains, 10% spices loss before reaching market.
Rs 50000 crores/year lost due to poor marketing chain.
Risk bearing
Storage of farm produce and grading
25

26. Different models of MLE in India
26

27. Self-help Groups (SHGs) are a unique method
to implement developmental schemes at the
grass root level by combining self
management with access to low cost finances.
SHGs or thrift and credit groups are mostly
informal groups whose members pool savings
and re-lend within the group on rotational or
need basis.
Many of these groups are formed around
specific production activity.
27
Self Help Groups???

28. • Brain child of Grameen Bank of Bangladesh
• Founded by Prof. Mohammad Yunus in 1975
• The concept of self help groups gained
significance especially after 1976 when Prof.
Mohd. Yunus of Bangladesh began the
experiment with micro credits and self help
groups.
• In India NABARD initiated SHGs in 1986-87
• In 1991-92, linkage of SHGs to bank 28

29. 2 Models of SHGs
29

30. Research based evidences
30

31. Impact Assessment of Reuters Market Light in
Agricultural Information Dissemination in Punjab
Objective:
To examine the awareness about utilization of
information by the farmers and extent of
satisfaction of the subscribers to the RML
scheme
Chahal et al.,
2012
31

32. Frequency of Market Information Supply
(N=116)
Particulars Number of
respondents/
Subscribers
Percentage to
total
Daily - -
Once in week 11 9.48
Twice in week 10 8.62
Thrice in week 45 38.79
Four times in a week 48 41.39
Five times in a week 2 1.72
32

33. Views of respondent-subscribers on subscription
of RML scheme
Particulars
No. of
respondents
/Subscribers
Percentage
to total
Subscription charges not commensurate with the
services provided
11 11.11
Services provided not satisfactory 42 42.42
Information not timely 17 17.18
Information not accurate 16 16.16
Information not relevant 11 11.11
Other (ambiguous SMS) 2 2.02
33

34. Advantages of RML Scheme
Particulars Response
(no.)
Percentages
to total
Could receive higher prices 25 21.55
Spend less time in disposal of produce 14 12.07
Utilized warning about outbreak of disease/insect-
pest attack
20 17.24
Availability of inputs 5 4.31
Demand and supply situation of a particular
commodity
4 3.45
Weather conditions 63 54.31
Latest market situation of a commodity 59 50.86
Others 8 6.90
34

35. Benefits in terms of price derived based on
information from RML Scheme
Particulars Basmati Potato
Farmers
(No.)
Quantity
(Q)
Price
(Rs/Q)
Farmers
(No.)
Quantity
(Q)
Price
(Rs/Q)
Nearby market in
the same district
10 962 2266 12 1300 216
Market in other
districts of Punjab
- - - 20 11010 350
Distant Markets 8 607 2333 7 1000 700
35

36. • Most of the respondents rated the RML scheme as
advantageous as they could get a higher price for their
produce, disposed off their produce according to
market conditions, got imminent warning on the
outbreak of disease, etc.
• It shows that if farmers are provided with the latest
information on different crops, it will go a long way
in making farming a more remunerative venture.
36

37. Rythu bazaars – A study of the benefits
received by farmers
37
Dey, 2012
N=250

38. Increase in Monthly earnings
Response Frequency Percentage
No 8 3.2
Yes 242 96.8
Total 250 100
38

39. Binomial test for significance of association of
Rythu bazar and Increase in Income
Category N Obs.
Proportion
Test
Proportion
Asymptote
Sig.(2-
Tailed)
Group 1 8 0.03
0.5 .oooaGroup 2 242 0.97
Total 250 1
39

40. Farmers income increment
40
1.2 0.4 0.8
16.1
3.7
28.1 26.9
12.8
7.9
0 0.8 0.8 0.4 0 0
percent of respondents

41. Test for significance for association of Rythu
Bazar and farmers‟ income increment
Value DF Asymptote
sig.(2-sided)
Pearson chi
square
250.000a 13 .000
41

42. Benefit on assurance of fixed income
Category N Obs.
Proportion
Test
Proportion
Asymptot
e Sig.(2-
Tailed)
Group
1
1 224 0.9
0.5 .oooaGroup
2
0 26 0.1
Total - 250 1
42

43. Benefit on account of Immediate Cash
Realization
Category N Obs.
Proportion
Test
Proportion
Asymptot
e Sig.(2-
Tailed)
Group
1
1 224 0.9
0.5 .oooaGroup
2
0 26 0.1
Total - 250 1
43

44. Benefit on account of Receiving Higher
Rates
Category N Obs.
Proportion
Test
Proportion
Asymptot
e Sig.(2-
Tailed)
Group
1
1 229 0.92
0.5 .oooaGroup
2
0 21 0.08
Total - 250 1
44

45. Benefit on account of Location
Category N Obs.
Proportion
Test
Proportion
Asymptot
e Sig.(2-
Tailed)
Group
1
1 249 1
0.5 .oooaGroup
2
0 1 0
Total - 250 1
45

46. It is evident that the farmers have got benefitted on the
account of
 increase in their earnings,
 assurance of fixed income,
immediate cash realization,
 higher rates for their vegetables and
location of the market yards.
46

47. Case study of citrus fruits: Improving post
harvest handling and market linkage in
Philippines
47
Rapusus
2008

48. Developed local
citrus industry
through farmers‟
cooperative
Post harvest
handling and
market linkages
Application of
Immediate
interventions
48
Strengthening
institutional
linkages and
support

49. Major constraints in handling and
marketing of citrus fruits
1. Problems in manual handling operations
like washing, waxing, sorting and
packing.
2. Limited trading capital and inadequate
market facilities.
3. Presence of several kinds of middlemen.
49

50. Intervention
Adaptation
of sorter/
grader
Use of
stackable
plastic crates
50
Manual to Mechanical Wooden to plastic

51. Linkage with institutions
Farmers’
Cooperative
LGU
Markets
PHTRC
DTI
51
LGU-Local Government Unit
DTI-Dept. of Trade and
Industry
PHTRC-Post Harvest
Horticulture Training and
Research Centre

52. The project strengthened the farmers‟ cooperative and
improved its capacity to provide support services, in an
integrated approach, on production, postharvest handling
and marketing of citrus produced .
In the area of marketing, the increase in trading capital and the
establishment of a packing house equipped with a
mechanical sorter, together with the use of plastic crates
in citrus handling has increased the volume handled by
the cooperative from 20% to 75% of total production of
members(14 MT/day).
Gradually the cooperative has pulled the citrus growers away
from depending too much on the traders, who usually
dictate the price and terms of payment of the citrus fruits.
52

53. 53
The dynamics of Farmers’ Market: A
Case Analysis of Uzhavar Sandhai of
Tamil Nadu
Kallummal & Srinivasan
2007
N=330

54. Profit Margins of the Farmers
Profit Margin Frequency Percentage
Less than 10% 42 12.7
10%–20% 135 40.9
More than 20% 153 46.4
Total 330 100
54

55. Views of farmers regarding Uzhavar Sandhai
Situation Frequency Percentage
Best 38 11.5
Good 136 41.2
Bad 16 4.8
Worst 5 1.5
Satisfactory 135 40.9
Total 330 100
55

56. Uzhavar Sandhai has created better market for
the products of poor, small and margial
farmers with fixed prices.
It has enabled the farmers to sell their produce at
a competitive price by elimination of
middlemen.
56

57. • Indira Kranthi Pathakam, a self help group
of Andhra Pradesh conducted marketing
interventions during 2001
Objective:
To enable the poor farmer producers to obtain the best
price for their agricultural Commodities and
NTFPs.
To create marketing facility at their door steps.
57

58. 58

59. Marketing intervention included:
• Potential survey of Agricultural Commodities and NTFPs
• Monthly Action Plan
• Micro credit plans
• Sourcing of finance
• Constitution of Procurement Committee and Advisory
Committee
• Training to Committee members and Book Keepers
• Supply of required Physical Infrastructure to the VO
• Farmers education (on Price, Quality and Markets)
• Marketing tie ups with trade, government agencies (MSP
and Direct Marketing)
59

60. Key Commodities under the programme
Paddy
Maize
Red gram
Soya
Neem
Medicinal Plants 60

61. Achievement of the marketing intervention
2005-06 2006-07 2007-08 2008-09
1.42 1.26
3.1
6.5
Rupees in Billion
61
Projection

62. Direct Benefit for Paddy (For 50 quintals)
Particulars @ rate of Rs/Q Total Quantity
(Q)
Total Amount
(Rs)
Price difference 120 50 6000
Transportation 13 50 650
Bus fare - - 30
Total - 50 6680
62

63. Direct Benefit for Maize (For 128 quintals)
Particulars @ rate of Rs/Q Total Quantity
(Q)
Total Amount
(Rs)
Overall difference 60 128 7680
Difference in
expenditure
20 128 2560
Total difference - 128 10,240
63

64. Direct benefit for chillies (For 50 quintals)
Particulars @ rate of Rs/Q Total Quantity
(Q)
Total Amount
(Rs)
Price difference 280 50 14000
Transportation 10 50 500
Bus fare - - 14
Cash discount 3 % - - 8070
Adithi dhadwai 2 % - - 5380
Total 559 50 27964
64

65. Benefits to Farmer
Direct
• Remunerative prices
• Procurement at door step
• No exploitation in
weighment and price
• Reduction in costs under
various components (Rs.
50 to Rs.100 per quintal)
• No wage loss
• No hassles like in Market
yards
Indirect
• Better terms from trade
• More transparency
65

66. A final thought...
• The focus of the extension functionaries need to be
extended beyond production. Farmers should be
sensitized on various aspects on quality, consumer‟s
preference, market intelligence, processing and value
addition and other marketing information. This will
help the farming community to realize high returns
for the produce, minimize the production costs, and
improve the product value and marketability.
• Market led extension system establishes its position by
helping the farmers realize high returns for the
produce and minimize the production costs and
improve the product value and marketability
66

67. • Information technology, electronic and print media
need to be harnessed to disseminate the
production and market information.
• Indian farmers have moved from subsistence to self
sufficiency due to advent of production
technologies. In order to be successful in the
liberalized market scenario they have to shift
their focus from „supply driven‟ to „market
driven‟ and produce according to the market
needs and earn high returns.
67

68. 68

69. 69