Market-Led Extension

1. 1

2. INTRODUCTION
• 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.
seller
producer
Podu-
cer seller

3.  Market- A congregation of
prospective buyers & sellers
with a common motive of
trading a particular
commodity.
Extension- It is the
spreading / reaching out to
the mass

4. Market led extension is
Market ward orientation of agriculture
through extension.
includes agriculture and economy.
 The perfect blend for reaching at the
door step of farming community with
the help of appropriate technology.
Source: Kaleel, 2007

5. Why MLE ?
 Even after 60 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
We produce enough to feed the nation. -Dr M. S. Swaminathan

6. Basics of Market led Extension
• Market Oriented production
• Updated knowledge of Market
• Market Analysis
• Market Intelligence
• Use of Technology
• Appropriate Extension Approaches.

7. Aspects of Market led Extension
• Community Mobilization
• Forming CIGs
• Forward & Backward Linkages
• Improvement of effectiveness of existing
markets
• Improvement of efficiencies of Marketing
channels

8. Opportunities
• Tapping the new trends..
1. Supply chain Management
2. Contract Farming
• Agricultural MIS..etc

9. Present Scenario
• Agriculture-19% GDP & 65 % Employment
• Production- Food grains-257 mT
• Fruits & Veg- 134 mT
• Oil seeds- 30 mT
• But Market---????
Source: Dept of Agriculture,GOI

10. The extensionist should
also provide market
information, training and
consultancy on market
and business
management for
farmers
But how can we
provide such
Market
consultancy?

11. Markets
• Markets must be
available and
profitable
•Potential risks
include:
– rapid price
fluctuations;
– highly competitive
markets;
– limited number of
buyers.
not only the market but also the
marketing chain must be fully
understood

12. Roles of Agricultural Extension 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
/programmers
• Enhancing the interactive and communication skills
of the farmers
• Establishing marketing and agro-processing linkages
between farmers’ groups, markets and private
processors.
• Advice on product planning:

13. • 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.
Continued…

14. Constraints
• Still presence of middle men
• Compulsory Bringing to Market yard
• No provision for bulk selling
• Exporters, Producers, Retail chain
operators cannot get quantity & quality
due to restriction on direct markeing

15. Suggestions
1. Training programme for extension worker
Module 1
Basic concepts and issues in agriculture markets and marketing
(and links w/ agricultural extension)
Collection, processing and dissemination of market
information

16. Continued…
Module 2
Reflection on application of module 1
Helping farmers access markets: collective action,
business linkages and other (based on needs
assessment during mentoring phases)
2. To introduce market-oriented approach into extension
subjects.

17. 3. Development of local market and promoting local
consumption.
4. Entrepreneurial training to farmers.
5. Linking farmers to markets.
6. Market reforms
7. Formation of Market-Led Extension
Policies and its implementation.
8. Workshop on Market-Led Extension at regional
level
Continued…

18. Need of IT application in Extension
 Over 50% of farmers do not have access to extension
information.
 44% have some access.
22% has access through media
(Radio 13% and TV 9%).
 Lack of information hinders transfer of technology.
 Only 40% of the Indian farmers are reached by extension
service providers.
Source: National Sample Survey Organization (NSSO) , 2005/7

19. Market research &
Information Network
• E-Connectivity to every
wholesale market
1. Price related information
2. Market related information
• Infrastructure Development

20. Some Useful resources
• Global ones- www.fao.org
• National ones- mandi online, national
Information center with state linkages
• Organisational ones-
NHB,APEDA,NAFED,NMCE,
TradeNICOnline
• Institutional ones- NIAM,MANAGE etc..

21. Government Initiatives
• Central warehousing Corporation-1965
• MSP by CACP
• Food Corporation of India
• Then some others as- CCI,JCI,NTGF,
NDDB,STC,APEDA etc.

22. CONCLUSION...
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 would
certainly promote and motivates farming
community towards profitable agriculture.

23. 23
THANK YOU
The world has changed..
So as We..
Then Why not ..
agriculture..??