Rural Market institutional role

1. Sohela mitra
shitiz kashyap
Venu
sowjanya sri
Sruthi M Devis
Aman Honhaga

2. • THE TERM AGRICULTURAL MARKETING IS COMPOSED OF
TWO WORDS- AGRICULTURE AND MARKETING.
• AGRICULTURE MARKETING INCLUDES MARKET FUNCTIONS
SUCH AS PLANNING ,PRODUCTION ,GROWING AND
HARVESTING,GRADING,PACKING,TRANSPORT,STORAGE,DISTR
IBUTION,ADVERTISING,SALE ,AGENCIES,MARKET
INTEGRATION ETC.
•A LINK BETWEEN THE FARM AND THE NON FARM SECTORS.
•IN INDIA THERE ARE A NETWORK OF COOPERATIVES AT THE
LOCAL,REGIONAL,STATE AND NATIONAL LEVEL.
•COMMODITIES HANDLED ARE COTTON SUGAR,JUTE,MILK
AND ARECA NUTS.
sohela

3. WHOLE SALE MARKETS -SUBDIVIDED INTO
o PRIMARY WHOLE SALE MARKES OR VILLAGE
MAR KET: PERIODICALLY HELD ,ONCE OR TWICE A WEEK IN
VILLAGES.MARKETS DEAL IN SALE OF
FRUITS,VEGETABLES,HOUSEHOLD REQUISITIES.
o SECONDARY WHOLESALE MARKET OR MANDIS: THESE ARE
SITUATED GENERALLY AT DISTRICT OR TALUKA
HEADQUARTERS .CULTIVATORS DIRECTLY SELL THEIR
PRODUCE IN THESE MARKETS.
o TERMINAL MARKETS: PRODUCE FINALLY DISPOSED OFF TO
DIRECT TO CONSUMER OR PROCESSORS OR ASSEMBLE
FOR SHIPMENT TO OTHER COUNTRIES.
RETAIL MARKETS-SPREAD ALL OVER THE CITY OR TOWN SUBJECT
TO MUNICIPAL CONTROL.SERVE THE NEEDS OF CITY PEOPLE
AND SURROUNDING VILLAGES.
FAIR:HELD ON RELIGIOUS OCCASIONS,AT PILGRIM CENTERS.
DEAL IN LIVESTOCK AGRICULTURAL PRODUCE.

4. AGRICULTURAL MARKET ENVITONMENT LEADS THE SCOPE
OF ANY SYSTEM.THE POINTS FOR IMPROVING THE SCOPE
ARE:
 DUE IMPORTANCE TO COOPERATIVE INSTITUTIONS
 COORDINATION WITH PROCUREMENT AGENCIES
 DEMAND SIDE MANAGEMENT
 MARKET STUDIES AND MARKET INTELLIGENCE
 PRICE POLICY
 GRADING FACILITIES
 STORAGE FACILITIES
 EDUCATION TO FARMERS

5. AGRICULTURAL MARKETING
FUNCTIONS
ANY SINGLE ACTIVITY PERFORMED IN CARRYING A
PRODUCT FROM POINT OF INDUCTION TO ULTIMATE
CONSUMER IS TERMED AS MARKETING FUNCTION.
IT CAN BE CLASSIFIED IN VARIOUS WAYS
1.PRIMARY FUNCTION: ASSEMBLING OR PROCUREMENT,
DISTRIBUTION
2.SECONDARY FUNCTION: PACKING OR
PACKAGING,TRANSPORTATION,GRADING &
STANDARDISATION, STORAGE & WAREHOUSING, BUYING &
SELLING
3.TERTIARY FUNCTION:BANKING & INSURANCE, SUPPLY OF
ENERGY, COMMUNICATION

7. Role of ICT In Agriculture product
Marketing
 It facilitates marketing decision, direct the competitive
process, and simplifies marketing mechanism.
 Fast accessibility, improve communication and marketing.
 Inform about market price, available crop varieties,
production techniques, early warning communication about
the weather and other sessional risks.
 small holder required information at every stage of the
production cycle.
 Accuracy, availability, application and analysis are the four
A’s marketing information.
Example
 AGMARKNET: Provide information about agriculture
product.
 Directorate of market &inspection(DMI): Agriculture market

8. NABARD IN AGRICULTURE MARKETING
FINANCE It provides refinance, regulating credit and
extending the facilities of agricultural production.
 It also provides financial institutions and co-
operative marketing.
1. Marketing of produce: NABARD provide
refinance to state cooperative bank.
2. Construction of Godowns and storage facilities.
3. Construction of Market yard.
4. For means of transport.
5. Establishing of processing unit.

9. Selling/ buying activities
 Produces moves
Former
Primary
wholesaler
Retailer
Consumer

10. Methods
 Under cover of clothes
 Private negotiation
 Quotations on sample by commission agent
 Dara sales method
 Moghum sales method
 Open auction method
 Closing tender system

11. ROLE OF
MARKETING INSTITUTIONS
IN
AGRICULTURAL product marketing in
IN INDIA
Venu chittaloori

12. MARKETING INSTITUTIONS
 Marketing institutions are business organizations which have come up
to operate the marketing machinery ,including formulation and
implementation of rules.
 They perform one or more of the marketing functions.
 Institutions involved in agricultural marketing involves
Individuals Corporate
Co-operative Government institutions

13. ROLE OF MARKETING INSTITUTIONS
 The framing of rules and regulations for the protection of the interest
of some sections of the population. These may relate to the grant or
restriction of monopolies, restriction on the activities of traders,
licensing and market regulation.
 Establishment of organizations , to provide services to the farmers for
performing certain marketing functions.
 Promotion of farmers cooperative societies for agricultural marketing
and agro processing.

14.  Creating of market infrastructure such as storage and
warehousing, transportation and communication facilities, credit
facility, grading and standardization.
 Administration of prices at different levels of marketing –
guaranteeing minimum support prices to producers ,providing
commodities at fair prices to consumers , and fixing the rates of
commission charged by commission of agents.
 Influencing supply and demand by regulating import, internal
procurement and distribution.

15. INSTITUTIONS
 Public sector institutions
1.Directorate of marketing and Inspection (DMI)
2.Commission for Agricultural Costs and Prices (CACP)
3.Food Corporation of India (FCI)
4.Cotton Corporation of India (CCI)
5.Jute Corporation of India (JCI)
6.Specialized Commodity Boards
7.Others ( CWC, SWC , STC ,APEDA ,MPEDA ,SEPC ,CEPCI ,APMC,
COSAMB ,Research Institutions and Agricultural Universities).

16. INSTITUTIONS
 Cooperative Sector Institutions
1.National cooperative development Corporation(NCDC)
2. National Agricultural Cooperative Marketing Federation (NAFED)
3.National Cooperative Tobacco Growers Federation (NTGF)
4.National Consumers Cooperative Federation (NCCF)
5.Tribal Cooperative Marketing Federation (TRIFED)
6.Special Commodity Cooperative Marketing Organizations
(Sugarcane, Cotton , milk )
7.State Cooperative Marketing Federations.

17. DMI (DIRECTORATE OF MARKETING AND
INSPECTION)
 Central Marketing Department,1928 merged with the Inspection Directorate
of the Ministry of the food was renamed as the DMI.
 DMI is assigned the task of implementing the Agricultural Produce (Grading
and Marketing) Act, 1937 ; Cold storage order, 1980 and Meat Food Products
Order, 1973.
 Undertakes programme of market research and surveys, training of market
personnel, extension and publicity.
 Functions – Market Research and Commodity Surveys,
Market Extension,
Statutory Regulation of Markets and Market Practices,
Promotion of Grading and Standardization,
Market Intelligence Cell ,
Training of Market Personnel.

18. CENTRAL WAREHOUSING CORPORATION
 Founded in 1957 ,Government owned corporation.
 Operates 467 warehouses within the country with 10.3 tonnes capacity.
 Services – foodgrain warehouses, industrial warehousing , custom bonded
warehouses , container freight stations , air cargo complexes.
 Apart from storage and handling , CWC offers services such as in the area of
clearing & forwarding , handling and transportation, procurement &
distribution, disinfestations services , fumigation services, consultancy
services /training for construction of warehouses.
 Function – Warehouse Corporation Act ,1962 .CWC may
- subscribe to the share capital of State warehousing corporation.
- acts as agent of the government for the purpose of purchase, sale ,
storage and distribution of agricultural produce, seeds, manures and
fertilizers, agricultural implements and notified commodities.

19. Commission for Agricultural Costs and Prices (CACP)
 Set up in 1965 in name of Agricultural Prices Commission(APC) on
recommendations of the food grains price committee headed by Shri
L.K.Jha with the main aim of advising the Government on price policy
of agricultural commodities.
 1980 –CACP-recommending 2 sets of prices MSP and procurement
prices.
 Aims at evolving a balanced and integrated price structure taking into
account of overall needs of the economy and with due regards to the
interest of both the groups.

20. National Agricultural Cooperative Marketing Federation (NAFED)
 Oct,1958.
 NAFED is an apex organization of marketing cooperatives in the country.
 It deals in procurement, processing, distribution, export and import of
agricultural commodities.
 It is also the central nodal agency for undertaking price support operations for
pulses and oilseeds and market intervention operations for other agricultural
commodities.
 The state level marketing federations and the National Co-operative
Development Corporation are its members.
 Objectives
- To co-ordinate and promote the marketing and trading activities of its
affiliated co-operative institutions.
- To make arrangements for the supply of the agricultural inputs required by
member institutions.

21. NAFED…..
- To promote inter-state and international trade in agricultural and
other commodities.
- To act as an agent of the government for the purchase, sale,
storage and distribution of agricultural products and inputs.
 Activities: 1. Internal trade
2.Foreign trade-Export and Import of Agricultural
Commodities.
3.Price Support Operations
4.Production and Marketing of Agricultural Inputs
5.Promotional activities
6.Developing Co-operative Marketing of Tribal Produce
7.Settling of Scientific Storage System

22. APEDA(AGRICULTURAL AND PROCESSED FOOD PRODUCTS EXPORT
DEVELOPMENT AUTHORITY)
 Under Ministry of Commerce on Feb 13,1986 under the
Agricultural and processed Food Products Export Authority Act,
1985.
 The main responsibility of APEDA is the export promotion of
fruits and vegetable products, meat and meat products, poultry
products, dairy products, confectionary, biscuits and bakery
products, honey, jaggery, sugar and coca products, alcoholic and
non-alcoholic beverages, pickles, chutneys, papads, cereals and
other processed foods.
 It has brought qualitative changes in the agricultural marketing
system and environment and, therefore, has increased the
credence of the agri-business in the products.e.g

23. FOOD CORPORATION OF INDIA(FCI)
 Jan 1965
 It is one of the largest public sector undertakings in the country.
 Played an important role in transfer of crisis oriented food security into a
stable security system.
 Objectives
1.To procure a sizeable portion of the marketed surplus of food grains at
incentive price from farmers on behalf of the Central and State Government.
2.To make timely releases of the stocks through the public distribution
system so that consumer prices may not rise unduly and unnecessarily.
3.To minimize seasonal price fluctuations and inter-regional price
variations in food commodities by establishing a purchasing and distribution
network.
4.To build up a sizeable buffer stock of cereals to meet the situations
that arise as a result of shortfalls in internal procurement and imports.

24.  Export of grapes and mangoes from Maharashtra and Karnataka;
strawberry and mushroom from Punjab and Haryana; litchi from
Andhra Pradesh, Uttar Pradesh and Bihar; and cutflowers from
Haryana and Karnataka.
 Objectives:
1.To maximize foreign exchange earnings through increased
agro-exports for providing higher incomes to the farmers
through higher unit value realization.
2. To create employment opportunities in rural areas by
encouraging value added exports of farm products.
3.To implement schemes for providing financial assistance to
improve post-harvest facilities to boost their exports.

25. SPECIALISED COMMIDITY BOARDS
 They are essentially a producer controlled organization
with government support and authority over a broad range of
functions starting with production, processing and marketing of
the crops.
 Under Ministry of Commerce, Government of India.
 Confined to commercial and plantation crops in India.
 Promote both internal and external trade of the commodity.
 State government has little control over it.

26. COSAMB (council for state agricultural marketing board)
EST: Feb 1988
 IT S ATONAMUS BODY TO MONITOR AND CO-ORDINATES THE ACTIVITES OF SAMB.
(grading and standardization, training )
 Think – tank to share know how .(information about hub of samb)
 FINANCIAL ASSISTANCE TO SAMBS.
 SEMINARS AND WORKSHOPS( latest technology and forming practices)
 LINKAGE WITH OTHER INSTITUTIONS.(LINKAGE WITH NETWORKING WITH
FISHERS AND DIERIES FOR EFFICIENT FUNCITON).
 ADVISORY : (to give advice to govt regarding price regulations in agricultural marking)

27. NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)
 Established in 1965 through an Act of Parliament at Anand (Gujarat)
for providing facilities for increasing the production and marketing of
milk and promotion of dairy industry in the country.
 It provides market support to the producers of milk in rural areas and
is instrumental in supply of liquid milk and dairy products(ghee,
powdered milk both whole milk powder and infant milk powder, butter
and chocolate) to the urban consumers at reasonable prices.
 Fostered strategies for increasing milk production,
research on cattle feed and fodder,
cooperative training and education
and for development of efficient system of
handling, processing and marketing of milk and milk products.

28. NHB (National Horticultural Board)
 Set up in 1984 as an autonomous society under the Societies Registration Act
with a mandate to promote integrated development of horticulture in the
country.
 OBJECTIVES:
1. To promote development of horticulture industry in the country.
2. To help in coordinating , stimulating and sustaining the production and
processing of fruits and vegetables.
3. To provide market information and build data base in horticulture.
4. To provide technical, financial and other assistance to various marketing
organizations,
5.To assist in the establishment of growers societies to advance their
economic and social status.
6.To establish sound infrastructure in the field of production, processing
and marketing with the focus on post harvest management to reduce losses.

29. BOARDS YEAR/ACT STATION FUNCTIONS
Tea board Tea act of 1953 Kolkata, West
Bengal
Advances
loans,subsidies,export
promotion,market
intelligence.
Coffee board
(Indian Coffee
Market Expansion
Board)
Coffee Markets
Expansion
Act,1940
Coorg,
Karnataka
Promotion of sale and
consumption,agri
&technological
research,maintaining price
stability.
Rubber Board Rubber board
Act,1940
Kottayam,
Kerala
Research and training
programmes,marketing
,planning welfare
Tobacco
Board,1976
Tobacco Board
Act,1975
Regulation of production and
marketing, set up auction
platforms, promote
grading,minimising prices

30. NAFED-National Agricultural Co-operative Marketing Federation
•Apex Organisation of marketing Co-operatives- Oct 1958
•Internal Trade-Benefit to both producers & consumers
•Foreign Trade- Mainly agricultural inputs
•Regulating price
•Production & Marketing of agricultural inputd
•Promotional activities
E-NAM
•Pan India electronic trading portal which networks APMCs
•One nation one market
•Single window-Commodity arrivals &prices, trade
offers,responds,Real time
price discovery
•Reduces transaction cost and information assymetry.

31. CONCLUSION
•Farmers are leaving farming as it is non-
remunerative.
•MSP is not available for many crops,
Inefficiencies in agri financing, risk mechanism.
•Gap can be addressed through institutional
innovation & collective action
•To bring bigger share in consumer’s rupee
•Assured market
•Minimise cost of cultivation