This document provides an overview of the Domestic & Export Market Intelligence Cell (DEMIC) in India. It discusses:
1. The importance of market intelligence for farmers to make informed production and sales decisions.
2. How DEMIC was established to collect and disseminate timely price and market data on agricultural commodities to help farmers and other stakeholders.
3. DEMIC's objectives of forecasting supply/demand and future prices, studying domestic and export market situations, and disseminating information to support farmers' planning.
1. Domestic & Export Market Intelligence Cell
(DEMIC)
Present by:
SONDARVA YAGNESH M
M.Sc. Agriculture (Agril. Extension)
Department of agricultural extension
BACA, AAU ,ANAND
2. We now live in a world driven by hyper-competition.
Hyper-competition is where too many businesses are pursuing too little business;
i.e., there is not enough demand to go around for all providers of goods and
services.
The knowledge base for managing in this hyper-competitive environment is called
Market Intelligence .
Market Intelligence
Market intelligence is a process of giving you in sights into what might happen in
the near future.
This process requires that we go from data to information to intelligence.
Know thy-self, know thy competition, and get it right almost every time.
Know thy-self, not know thy competition, and get it right about half the time.
Not know thy-self, not know thy competition, and get it wrong almost every time.
Chinese Proverb
3. Here is a basic example
Data - Prices for our products have dropped by 5 percent.
Information - New offshore facilities have lower labour costs.
Intelligence - Our key competitor is about to acquire a facility in India that will.
The differences between data, information, and intelligence can be subtle, but very real.
Data- Unconnected pieces of information.
Information - Increased knowledge derived by understanding the relationships
of data.
Intelligence- Organizing the information to fully appreciate the implications
and impact on the organization.
Market Intelligence
4. Source for best practices – the only real way to isolate and find “best practices” is to
engage in some form of Market Intelligence ; otherwise you end up relying on crude and
generic type benchmarking data
Helps formulate strategy through an understanding of your industry, yourself, and your
competitors. Market Intelligence is the essence of strategic business analysis.
Helps identify areas for improvement as well as risks and opportunities.
Isolates performance gaps in relation to the competition.
IMPORTANCE OF MARKET INTELIGENCE
5. Frequent fluctuations in prices affect the farm income adversely and increase risk.
Since farmers have no authentic source from which they could get the information on
future changes in prices, they decide the area under various crops mostly by the price
level prevailed in the previous seasons.
This results in glut and scarcity frequently. After harvesting the crop, the farmers do not
have any information on how the prices would move in the near future; they are not
able to decide the best time of selling their produce even for the commodities that can
be stored for short periods in the farm itself.
So there is an urgent need to establish a permanent mechanism for market intelligence.
DOMESTIC AND EXPORT MARKET INTELLIGENCE CELL
6. Market information is an important aspect of agricultural production and marketing.
The importance of sound agricultural marketing policies for ensuring fair returns to the farmers cannot be
overemphasized.
There are wide differences between the prices realized by the farmers and the prices paid by the consumers for
most of the crops.
Almost all States and Union Territories are providing market information in one form or the other for the benefits
of market users like producers, traders, and consumers.
However, the information is collected and disseminated by use of conventional methods causing inordinate delay
in communicating to different groups and this, in turn, adversely affects the farmers in taking proper marketing
decisions i.e, whether to sell immediately or store the produce, whether to market the produce inland or overseas,
where to sell in domestic markets, during which part of the year he can get remunerative prices etc.
Globalization of agriculture has also opened up opportunities for export of agricultural commodities for which
demand by importing countries and their quality specification and standards should be made available to domestic
exporters to pave for export led growth. The farmers should also be made aware of the consequences of imports
on domestic prices. All the above emphasized the need for establishing the Domestic and Export Market
Intelligence Cell (DEMIC).
7. the Domestic and Export Market Intelligence Cell (DEMIC) was established
in November 2004 at Centre for Agricultural and Rural Development
Studies (CARDS) in Tamil Nadu Agricultural University, Coimbatore with the
financial assistance from Tamil Nadu State Agricultural Marketing Board, and
Department Agricultural Marketing and Agri Business.
To disseminate timely, comprehensive, current and future price
information on agricultural commodities for better decision-making by
farming community, traders, firms, researchers and policy makers.
Objective of DEMIC
Domestic and Export Market Intelligence Cell (DEMIC)
8.
9. 1.
To forecast the supply and demand of important agricultural commodities
in Tamilnadu
2. To forecast future prices of major agricultural commodities
3.
To study the state and national market situation related to important
commodities
4.
To disseminate the market and price information to the farmers for
planning, production and holding stocks, and then sell at higher prices and
5. To suggest policy measures to the Government of Tamil Nadu
Objectives
10. The major activities of the cell is to collect real time data on arrivals, prices and transaction of important
agricultural commodities from Regulated Markets in Tamil Nadu, conducting market surveys, compiling
commodity reports and assessing export opportunities of agricultural commodities.
Using these data, the cell forecasts the prices of different commodities on a regular basis and the same is
transmitted to the farmers through Radio, Television and Newspapers and web developed for this purpose.
(www.tnagmark.tn.nic.in).
Now all the stakeholders can access the real time price of agricultural commodities variety wise, grade wise
from all the major market centers of India in English and Tamil covering more than 500 markets.
Apart from price information, other useful information available in the website are export procedures, export
standards for various agricultural commodities, infrastructure facilities (ports, air cargo, railways, rural
godowns, etc.), agri-export zones, food processing, post - harvesttechnology and other useful links to various
related websites.
An e-mail newsletter focussing on technical and market related information at domestic and international
levels has been developed by DEMIC in the banner of “DEMIC Info Series” to sensitize the stakeholders and
scientists.
Approach
11.
12. Turmeric - June 1st week
Cotton - June 2nd week
Onion - July 1st or 2nd week
Maize - August, September
Banana - August, September
Chillies - August
Groundnut - September
Gingelly - October
Tapioca - October, November
Potato - December
Black gram - May
Green gram – May
Price forecasts are done with the help of various statistical methods by utilizing historical data and market
surveys.
Validation is important for measuring goodness of any forecast.
The forecast validation percentage of DEMIC scheduled crops was above 90 per cent.
This shows the core strength of DEMIC.
Commodities and forecast schedule
14. This was an initiative of Indian Council of Agricultural Research under the National Agricultural Innovation
Project (NAIP). In order to provide market advisories to farmers, a Consortium of the following eleven
Agricultural Universities was formed:
I. Tamil Nadu Agricultural University, Coimbatore, Tamilnadu (Lead Institute)
II. Kerala Agricultural University, Trissur, Kerala
III. University of Agricultural Sciences, Bangalore, Karnataka
IV. University of Agricultural Sciences, Dharwad, Karnataka
V. Acharya N G Ranga Agricultural University (ANGRAU), Hyderabad, Andhra Pradesh
VI. Dr. Panjab Rao Desmukh Krishi Vidyapeeth, Akola, Maharashtra
VII. Junagadh Agricultural University, Junagadh, Gujarat
VIII. Punjab Agricultural University, Ludhiana, Punjab
IX. G B Pant Agricultural University, Pant Nagar, Uttarakhand
X. CCS Haryana Agricultural University, Hissar, Haryana
XI. Maharana Pratap University of Agriculture and Technology, Udaipur, Rajasthan
Networking of Market Intelligence Centers in India