Keerthi Chandak PDF

A Final Project
On
“A Study on the Mechanism of Rythu Bazaar and Its

Impact on farmers and consumers”
Submitted to the
NAVSARI AGRICULTURAL UNIVERSITY
In Partial Fulfillment of the Requirements for the Award of
Degree of
Master of Business Administration (Agribusiness)
By
Keerthi Chandak
(04-1162-2012)
ASPEE Agribusiness Management Institute

Navsari Agricultural University
Navsari
ASPEE AGRIBUSINESS MANAGEMENT
INSTITUTE
Navsari Agricultural University, Navsari
CERTIFICATE I
This is to certify that the project entitled “A Study on the Mechanism of Rythu
Bazaar and Its Impact on Farmers and Consumers” embodies bonafide research
work carried out by Keerthi Chandak has successfully completed the course
work and examination as required under the regulation for MBA(ABM). The
assistance, guidance and help received during the course of investigation have
been successfully acknowledged.
Place: Navsari A.M.Bafna

Date: 26 June 2014 Dean
AABMI, Navsari
INSTITUTE
CERTIFICATE II
Bazaar and Its Impact on Farmers and Consumers” is the bonafide work carried
out by Keerthi Chandak (04-1162-2012), student of M.B.A. (Agribusiness)
during the year 2012 -2014, in partial fulfilment of requirement for the award of
the Degree of Master of Business Administration(Agribusiness) under my guidance
and supervision and that the project has not formed the basis for the award
previously of any degree, diploma, associate ship, fellowship or any other
similar title.
Place: Navsari Alpesh Leua

Date: 26 June 2014 Major Guide
ASPEE AGRIBUSINESS MANAGEMENT INSTITUTE
CERTIFICATE III
Bazaar and Its Impact on Farmers and Consumers” submitted by Ms. Keerthi
Chandak to the Navsari Agricultural University, Navsari in partial fulfillment of the
requirement for the degree of MBA (ABM) in the subject of Agribusiness
Management, after suggestions and recommendations by external examiner was
discussed and defended by the candidate before the following members of the
Advisory Committee. The performance of the candidate in the oral examination on
this project has been found satisfactory. We therefore, recommend that the project
may be approved.
Place: Navsari Alpesh Leua

Date: 26 June 2014 Major Guide
Ruchira Shukla
Committee Member
Gautam Parmar
Committee Member
INSTITUTE
Navsari Agricultural University,
Navsari
DECLARATION
I hereby declare that the project entitled “A Study on the Mechanism of Rythu
Bazaar and Its Impact on Farmers and Consumers” submitted for the MBA (ABM)
Degree is an original piece of work and the dissertation has not formed the
basis for the award of any degree, associate ship, fellowship or any other similar
titles.
Place: AABMI, Navsari Keerthi Chandak
Date: 26 June 2014 Reg. No. 04-1162-2012

ACKNOWLEDGEMENT
An individual cannot do project of this scale. I take this opportunity to express
my acknowledgement and deep sense of gratitude to the individuals for rendering
valuable assistance and gratitude to me. Their inputs have played a vital role in
success of this project.
I would heartily acknowledge my guides, Estate Officers and the Supervisors
of Mehdipatnam, Alwal and Erragadda Rythu Bazaars, who gave me the opportunity
to have a closer look at the working of Rythu Bazaars
I express my sincere thanks to our Principal, Dr. AM Bafna and my project

guide, Dr. Alpesh Leua, Associate Professor (AABMI, NAU, Navsari) for his
generous support, constant direction and mentoring at all stages of the training.
The author is gratified to record her sincere thanks to Dr. A.R.Pathak,

honorable vice chancellor, for providing the necessary facilities during the course of
investigation.
I express my special thanks to my friends Ms Poojitha, Ms. Snehal, Ms.

Ankita, Ms. Swati Yadhav, Ms. Swarna latha, Ms. Suhasini, who have been a
constant source of help and encouragement. I firmly believe that there is always a
scope of improvement. I welcome any suggestions for further enriching the quality
of this report.
Most humble, I bow my head with reverence to my parents, Mrs. Asha, Mr.
Ashok Chandak, my brothers Chetan Chandak, Manish Chandak my family
members, Mrs. Roopa, Mr. Raghav, Janavi, Yoshika and my In-laws and my
grandmother “Bai” whose incessant love, blessing and inspiration made me
competent enough to fight the battle of life and to achieve the goal.
Place: Navsari Keerthi Chandak

Date: 26 June 2014 (Reg No. 04 – 1162- 2012)
CONTENTS
Sr. No. Particulars Page No.
Executive Summary 1
Chapter 1. Industry Profile of Agricultural 3

Marketing
Chapter 2. Introduction to the Farmers Market 10
Chapter 3. Project 17
3.1& 3.2 Title and Objective 17
3.3 Review of literature 18
3.4 Justification of the Study 22
Chapter 4. Research Methodology 23
4.2 Research Design 23
3.7 Limitation of the study 25
Chapter 5. Analysis and Data Interpretation 26
Chapter 6. Findings 74
Chapter 7. Suggestions 81
Chapter 8. Conclusion 85
Bibliography 87
Annexure – 1 89
Questionnaire on Mechanism of
Rythu Bazaar
Annexure – 2 92
Questionnaire for Farmer
Annexure – 3 95
Questionnaire for Consumers
List of Tables
5.3.2.1 Frequency of Purchasing 62
4.3.2.2 Timings of Purchase of Vegetables 63
4.3.3.1 Major Influencing Factors in Buying Vegetables 64
4.3.3.2 Quality Perception by the Consumers 65
4.3.3.3 Prices Perception by the Consumers 66
5.3.3.4 Convenience of Location of Rythu Bazaar 67
5.3.3.5 Availability of Vegetables in Rythu Bazaar 68
5.3.3.6 Behaviour of Sellers in Rythu Bazaar 69
5.3.3.7 Problems in Rythu Bazaar 71

List of Graphs
5.2.1.1 Age of the Selected Farmers 36
5.2.1.2 Education level of the Selected Farmers 37
5.2.1.3 Length of Duration of farmers in Rythu Bazaar 37
5.2.2.1 Opinion on Convenience of Location of Rythu 38

bazaar from the Farmers
5.2.2.2 Satisfaction level of adequacy of Transportation 39

facilities provided to the farmers
5.2.2.3 Satisfaction level on Cost incurred in bringing the 40

produce to the Rythu Bazaar
5.2.2.3.1 Satisfaction Levels of Farmers towards the Method 41

of Allotment of Stalls
5.2.2.3.2 Satisfaction Levels of Farmers towards the Space of 42

Stalls Provided.
5.2.2.3.3 Satisfaction Levels of Farmers towards the 42
Provision of Weighing Scales

Provision of Power Supply

Provision of Drinking Water
Sanitary Arrangements
Provision of Storage Facility
5.2.2.4.1 Satisfaction Level of the Farmers towards the 46
Supervisory Services Provided for Checking the
Prices
5.2.2.4.2 Satisfaction Level of the Selected Farmers towards 47

the Supervisory Services Provided for Curbing any
Malpractices

the Supervisory Services Provided for Checking the
Basic Facilities

the Supervisory Services Provided for Avoiding the
Entry of Middlemen

the Advisory services provided for Operational
Requirement
5.2.2.5.1 Vegetables sold at the Fixed Prices by the Farmers 50
5.2.2.5.2 Prices at Rythu Bazaar is less than the Local Retail 51

Prices and higher than the Wholesale Price
5.2.2.5.3 Farmers consulted in Price Fixation 52
5.2.2.5.4 Present Price Fixation Mechanism 52
5.2.2.5.5 Farmers Bargaining Power 53
5.2.3 Status of the Sale of the Produce at the End of the 54

Day
5.2.4.1 Benefits to the farmers in selling in Rythu Bazaar 55

over other Local Markets/APMCs
5.2.5.1 Major constraints farmers face in Rythu Bazaars 56
5.2.6.1 The next Preference of Farmers after Rythu Bazaar 57

to Carry Out Business
5.3.1.1 Age status of the Selected Consumers 59

5.3.1.2 Gender status of selected consumer 60
5.3.1.3 Education Qualification of the selected Consumers 60
5.3.1.4 Occupation of the Selected Consumers 61
5.3.2.1 Frequency of Purchasing 62
5.3.2.2 Timings of Purchase of Vegetables 63
5.3.3.2 Quality of the Vegetables Sold 66
5.3.3.3 Prices of the Vegetables Sold 67
5.3.3.4 Convenience of Location of Rythu Bazaar 68
5.3.3.5 Availability of Vegetables in Rythu Bazaar 69
5.3.3.6 Behaviour of Sellers in Rythu Bazaar 70
5.3.3.7 Problems in Rythu Bazaar 71
5.3.3.8 Whether Recommend Rythu Bazaar to Others 72

EXECUTIVE SUMMARY
Keerthi Chandak Alpesh Leua

Reg. No. 04-1162-2012 Major Advisor
Rythu Bazaar one of the most successful models of direct agricultural marketing in
the country, was initiated by the Govt. of Andhra Pradesh, way back in 1999 in
Hyderabad. The principal objective was to help farmers bring and sell their produce
without the involvement of any middleman or marketing intermediary. Both
farmers and consumers get benefitted with direct marketing as it helps ensure
higher remuneration for the farmers and provides fresh vegetables at cheaper rates
to the consumers. Currently there are 102 Rythu Bazaars in existence from past 14
years in the state of Andhra Pradesh benefitting more than 4500 farmers and a large
number of consumers
The project work “A Study on the Mechanism of Rythu Bazaar and its Impact
on the Farmers and Consumers” was carried out under the guidance of the Estate
officers and supervisors of Mehdipatnam, Erragadda and Alwal Rythu Bazaars and
Faculty Guide Dr. Alpesh Leua, Associate Professor, AABMI, Navsari.
The objectives of the project were to study the mechanism of Rythu bazaar, to
study the impact of Rythu bazaar on farmers and to study the impact of Rythu
bazaar on the consumers. A survey of 150 farmers and 150 regular consumers were
carried out to attain the objectives of the study. For the collection of primary data
(1)
pretested questionnaire was used and for the secondary data internet, govt.
publications, journals etc were used. Majority of the farmers coming to Rythu
bazaars are small farmers, with duration in the market for more than 5 years. The
farmers have benefitted on account of direct marketing and they majorly store the
produce in the market. The space is the major constraint that the farmers face.
The consumers that visit the market are mostly the educated ones; the availability of
vegetables and the location of market are the biggest reasons why the consumers
are dragged into the market. They share a very comfortable rapport with the sellers
of the market. The major problems the consumer face is the congested walkways of
the market, small parking area, untidy market etc.
Rythu bazaar has been functioning strong, but aspects like the dominance of groups
and traders should be checked upon, the quantity of produce brought by them could
be controlled. Farmers could be trained more often in order to keep the market
clean and the price fixation should be done strictly in consultation with the farmers
committee and bringing about grading in the market and accordingly fixing prices
on quality can help in increasing the footfalls of the market.
With all its limitations, the initiative is largely benefitting both producers and
consumers.
(2)
CHAPTER 1
INDUSTRY PROFILE OF AGRICULTURAL MARKETING
1.1 Introduction
Agricultural marketing includes the movement of agricultural produce from farm
where it is produced to the consumers or processors. This covers physical handling
and transport, initial processing and packing to simplify handling and reduce
wastage, grading and quality control to simplify sales transactions and meet
different consumers’ requirements, and holding over time to match concentrated
harvest seasons with the continuing demands of consumers throughout the year.
For the farmer, the strategic function of the marketing system is to offer him a
convenient outlet for his produce at a remunerative price. To the consumers and the
manufacturers of agricultural raw materials, assurance of a steady supply at a
reasonable price is the vital service. Prices are determined through free market
process by negotiations at rural purchasing, wholesale and retail stages, and
represent a balance between the consumers’ ability to pay and the farmers’ need for
incentive to produce.
An efficient marketing system is vital, to provide an incentive to farmer to
produce more, to convey the changing production needs of the economy to
producers, to enable production planning and foster true competition among the
traders and eliminate the exploitation of farmers particularly the small and marginal
ones, who predominate agrarian sector in our country. For this agricultural produce
(3)
marketing has been regulated under Agricultural Produce Marketing committee Act
(APMCs) as per the provisions of state governments to enable efficiency and
transparency in the agricultural trade and to upgrade the standards of Indian
farmers by providing remunerative prices for their produce in these regulated
agricultural markets compared to other markets.
1.2 Role and Growth of Regulated Agricultural Markets in India
Agriculture continues to be the mainstay of the Indian economy. It is a way of life
and a tradition, which for many centuries has shaped thoughts, outlook, culture
and the economic life of Indians. It will continue to be central to all strategies of
planned socio-economic development of the country. Agriculture is the principal
means of livelihood for over 58 per cent of India's population and the percentage
share of agriculture and allied sectors in India's GDP is about 13.7% (2012-13),
accounting to approximately 21% of the total gross domestic product (GDP),
which has decreased from 30% in 1990-91 to 15.5% in 2010-11.
The country achieved self sufficiency in food grains production (210 million tons),
largest producer of fruits (48 million tons), milk (91 million tons) and second
largest producer of vegetables (80 million tons), rice (100 million tons) and wheat
(86 million tons). Further, it possess more than 56 per cent of the world buffaloes
and ranks first in cattle and buffalo, second in goats, third in sheep, fifth in poultry
population and sixth in fish production. While significant strides have been made
in increasing agricultural production over the years, immense problems continue
(4)
to cloud the system of agricultural marketing in the country. Ironically, the burden
of inefficient marketing procedures affects the farmers of the country the most,
when in fact as producers they are entitled to the benefits of a robust marketing
system.
The agricultural marketing structure in India consists of three types of
markets: a) rural primary markets or haats (tribal markets in tribal areas) that are
meant to meet local demands, b) secondary markets that attract potential buyers
and traders who take agricultural produce in bulk quantity for sales in the city,
and c) wholesale markets that act as centers for gathering large amounts of
agricultural produce from different sources. Retailers in the country procure
produce from these wholesale markets and then sell it to the consumers.
The operations in rural primary markets and secondary markets are largely
informal and lack proper infrastructural facilities. As wholesale markets handle
large volumes of agricultural produce and act as dispersal points, they form a very
crucial component of the entire agricultural marketing system in the country.
These markets require elaborate infrastructural facilities. The GOI is responsible
for the provision of such facilities in the market. Wholesale markets operate within
a legal framework and are covered under the Agriculture Produce Marketing
Committee Act (APMC). The implementation of the APMC is in the hands of
respective State Governments
(5)
1.3 Impact of Regulated Markets
With the APMC’s coming in force, the regulated markets were considered
accountable institutions in discharging all the functions associated with the sale of
agricultural produce, keeping in view the overall interest of the farming community
and the ultimate consumers. These institutions were intended to regulate unethical
trading practices followed in the marketing of agricultural produce thus helping in
protecting the interest of both the producers and consumers, and contributing
towards the growth of organized marketing and price stability through successful
competition.
Government from time to time, brought about the regulated legislation and
development of market infrastructure. As the economy of India got liberalized and
allowed private sector participation in the agriculture trade, in this direction many
Indian states started bringing amendments to the agricultural marketing legislation
and expansion.
Although regulation of markets has helped in reducing the burden on
farmers in the form of lesser market charges, verified weights and scales, and
establishment of market committees, the system still remains largely inefficient
and has been monopolized by traders and intermediaries. In reality, no person or
agency can operate in the wholesale market area without a license issued by the
market committee that, in turn, is under the influence of dominant traders.
(6)
This defeats the very purpose of market regulation, which is to benefit the
farmers. Inefficiencies in the wholesale markets result in a chain of intermediaries,
quality degradation and increase the gap between producer and consumer prices. A
large majority of farmers even today are dependent on middlemen to sell their
produce and the reason being, either they do not have enough money to bring their
produce to the market or they do not have any space to store the produce. The
middlemen have therefore been utilizing this to their maximum advantage at the
cost of the poor farmers. As a result, their average profit margins have been retained
at the cost of the profit margins of farmers which have always been very low. Also,
the nexus between these middlemen and private money lenders makes it doubly
difficult for the farmers to operate independently. Thus farmers, because of their
own gullibility have seldom been guided properly – as a result it is only the
middlemen and private money lenders who have prospered at the expense of the
poor farmers.
1.4 Lacuna in the Agri Marketing - Problems and Challenges
There are several challenges involved in marketing of agricultural produce.
 There is limited access to the market information, literacy level among the
farmers is low, multiple channels of distribution that eats away the pockets of
both farmers and consumers.

 The government funding of farmers is still at nascent stage and most of the
small farmers still depend on the local moneylenders who are leeches and
charge high rate of interest.
 Most of the Regulated markets lack facilities like own land, godowns,
transaction sheds, drying yards, farmers’ rest houses, transportation facilities,
cold stores, sanitary and drinking water facilities. So there is less
participation of farmers selling their produce and traders who need storage
and other facilities in these regulated markets.
 Moreover the regulated markets are not distributed uniformly in the country.
Some states have not implemented the Agricultural Produce Marketing
Committee Act for marketing their agricultural produce.
 Most farmers are not aware of these regulated agricultural markets, they sell
their products to parties like agents, wholesalers, dealers and other
intermediaries and in return getting a very low price of their produce. They
get cheated by the market intermediaries.
Distress sale by small and marginal farmers at discounted prices for immediate cash
continues to be a serious problem which could be countered to some extent by
liberalizing pledge loans against produce stored in godowns/farmer’s own home.
There is need for considerable expansion of storage [including cold storage]
facilities, improving warehousing system, facilitating loans against Warehouse
Receipts and generally making these markets more useful to the farmers.
(8)
1.5 Direct Agricultural Marketing
An effective answer to these wobbling marketing issues lies in the establishment of
unmediated and direct linkages between farmers and consumers. Direct marketing
helps in eliminating middlemen and makes the farmers directly responsible for
selling his/her produce. This helps in ensuring financial returns for farmers as well
as increased consumer satisfaction. The efficacy of direct agricultural marketing
infrastructure facility can be increased by providing market user common facilities
for proper weighing, cleaning, grading and packaging of agricultural produce being
brought to the market yard by the farmers for sale.
In order to promote the development of direct agricultural marketing in the
country, the GOI enacted the Scheme for the Development of Agricultural Marketing
Infrastructure, Grading and Standardization. As a crucial component of the scheme,
all Indian States and Union Territories are required to amend their specific APMC
acts in pursuance of the development of direct agricultural marketing practices.
Many Indian states adopted the concept of direct agricultural marketing. Examples
include Apni Mandi in Haryana, Uzhavar Sandhai in Tamil Nadu, Shetkari Bazaar in
Maharashtra and Rythu Bazaar in Andhra Pradesh.
(9)
CHAPTER 2
INTRODUCTION
THE FARMERS MARKET
2.1 Rythu Bazaar
Rythu means Farmer in Telugu (The local language of Andhra Pradesh in India) and
Bazaar stands for the Persian word bāzār, meaning "the place of prices". It is one of
the farmers' friendly direct marketing systems in operation in the country. Rythu
Bazaar, the farmers’ market was a social initiative started by the government of
Andhra Pradesh in 1999.
The concept of Rythu Bazaar originated from Kal Ghoj, the farmers’ market of
Russia. In the late eighties, Mr. M S Gill, the then Union Agricultural Secretary,
impressed by the concept of Kal Ghoj adopted this concept in the states of Punjab
and Haryana. Thus Apna Mandi was born. Spurred by the success of Apna Mandi, the
state governments of Andhra Pradesh and Tamil Nadu also started Rythu Bazaar
and Uzhavar Sandhais in their states respectively.
2.2 Concept of Rythu Bazaar
The principal objective of Rythu Bazaar was to help farmers bring and sell
their produce to the market effectively eliminating middle man or any other
marketing intermediary. Rythu Bazaars are thus planned for direct interface
between the farmers and the consumers where both are benefitted, ensuring
( 10 )
higher remuneration for the farmers and providing fresh vegetable of good quality
at the best rates to the consumers.
The concept of Rythu Bazaar was well received by the consumers and the
demand for such markets in Andhra Pradesh increased. Currently there are 102
Rythu Bazaars in existence from past 14 years in the state of Andhra Pradesh
benefitting more than 4500 farmers and a large number of consumers. Rythu Bazar
is one of the most successful models of direct agricultural marketing in the country.
The usefulness of direct marketing at Rythu Bazaar is increased by the
Andhra Pradesh Marketing Department providing facilities like weighing scales,
transportation, and stalls for the farmers, under a proper administrative system and
government protection. Rythu Bazaars are operated outside the purview of the
Agriculture Market Committees and are managed by Estate Officers under the
control of Revenue Department of the State Government. Rythu Bazaars, if function
effectively, can act as price stabilization centers.
2.3 Objectives
The objectives of Rythu Bazaar are mainly:
 To ensure remunerative prices to the farmers and provide fresh vegetables to
the consumers at reasonable rates fixed every day.
( 11 )
 Facilitate prompt realization of sale proceeds to the farmers without any
deductions.
 Curb malpractice in weighment
 Provide direct interface between farmers and consumers- eliminating
intermediaries in trade.
2.4 Functioning of Rythu Bazaar
Rythu Bazaars are located in government plots convenient to farmers as well as
consumers. Built on a minimum one acre vacant land, the infrastructure provided
by the government included sheds, arrangements for supply of drinking water,
toilets with sanitation facility, parking for vehicles, arrangements for removal of
garbage and cleaning of market by local body, facility for storage of unsold produce,
provisions of weighing scales for all farmers, telephone, fax etc.
The state government of Andhra Pradesh meets all the capital expenditure
which varies according to the land prices prevailing in an area. At present, market
yards are mostly set up by the State Governments. For setting up of agricultural
markets, funds are sourced from NABARD. Apart from developing the market yards,
free supply of weighing machines and free transport of vegetables to the farmers’
market in selected Andhra Pradesh State Road Transport Corporation run buses is
also provided to the farmers. Horticultural services and seed supply at subsidized
rates also benefit the farmers.
( 12 )
During the week days, the quantity of vegetables that are brought to the
market is in the range of 1000 - 2500 quintals. This goes up by about 500 quintals in
the weekends. The total worth of transactions that happen on an average on week
days ranges between 10 – 20 lakhs which even goes up to 35 - 40 lakhs during
weekends for some of the markets. In a model Rythu Bazaar like the one in
Erragadda in Hyderabad, it has been observed that on weekdays about 300 to 400
farmers transact while the number of customers range from 16000 to 20000. These
numbers go up significantly during the weekends and holidays to 500 to 600
farmers and 25000 to 30000 customers.
2.5 Products and Services
The service features in the working of the Bazaars coordinated by the department of
marketing, Government of Andhra Pradesh are as follows:
 Allotment of shops to farmers is done on daily basis on “First Come First
Serve” principle. Occupying of the same shop continuously is not permitted.
 Price fixation is through committees, which consist of a few farmers and
estate officer of Bazaar. The prices are fixed generally 25% of above the
wholesale rates and 25% less than local retail price.
 Farmers organized as self help groups function as sellers of fruits which are
not grown locally.
( 13 )
Rythu Bazaars are expected to generate sufficient income for their maintenance
through auction of vehicle parking space, hoardings, canteen etc. A cabinet sub-
committee of the State Government reviews the implementation of the scheme of
Rythu Bazaars on a fortnightly basis.
2.6 Business Linkages Strategy
A Rythu Bazaar typically covers 10 to 15 villages and at least 250 farmers including
10 groups (self help groups) are selected by a team consisting of Mandal Revenue
Officers, Horticulture Officers and Agriculture Officers in the villages to operate in
the Bazaars. Joint Collectors of the concerned districts ensure that adequate
transport facilities are arranged for transport of goods to Rythu Bazaars in
consultation with State Road Transport Corporation. In addition online information
of prices and commodities movements is provided on the internet.
2.7 Outreach and Potential of Rythu Bazaar
As on February 2002, ninety six Rythu Bazaars were in existence benefiting 4500
farmers and large number of consumers. India is estimated to have over five lakhs
villages and almost sixty percent of the population is employed in the farm sector.
However, agriculture contributes to only 25% of the national income. Lack of
marketing information and inadequate access to markets as well as supply chain
inefficiencies inherent in the farm sector contribute to low realizations and incomes
( 14 )
to the farmers. Rythu Bazaars can play a key role in addressing some of these
problems, and there is a clear need to facilitate similar marketing infrastructure
throughout the country.
2.8 Key Stakeholders of Rythu Bazaar – Their Duties
 Agricultural Marketing Department, Government of Andhra Pradesh: It
oversees the implementation of the entire direct marketing concept.
 Joint Collectors: Joint Collectors are responsible for the effective functioning
of Rythu Bazaars in their respective districts. They are responsible for all
appointments of concerned officials and to ensure proper coordination of
Agriculture Officers, Horticulture Consultants, Estate Officers and relevant
local bodies for the smooth functioning of Rythu Bazaar.
 Estate Officers: The estate officers are responsible for the upkeep and
maintenance of Rythu Bazaars. They allot shops, fix prices and ensure its
proper day-to-day functioning.
 Horticulture Consultants: They are responsible for motivating, identifying
and ensuring regular attendance of farmers so that the latter are able to make
use of the services that Rythu Bazaars provide. They provide pre- and post-
harvest consultancy to farmers.
( 15 )
 Agriculture Officers: The Agriculture Officers coordinate and assist Estate
Officers and Horticulture Consultants.
 Farmers: They sell their produce at Rythu Bazaars.
 Department of Women and Children in Rural Areas (DWCRA) SHGs: They
sell products as a group in the Rythu Bazaar.
2.9 Organizational Setup of Rythu Bazaars
( 16 )
CHAPTER 3
THE PROJECT
3.1 Title of the Project

“A Study on the Mechanism of Rythu Bazaar and Its Impact on Farmers and
Consumers”
3.2 Objectives of the Study

1. To Study the Mechanism of Rythu Bazaar:
a) To study the Profile of the Market
b) To study the Flow of Activities in the Market
c) To study the Monitoring and Governance in the Market
d) To study the Price Fixation Mechanism of the Market
e) To study the Marketing Issues of Rythu Bazaar
2. To Study the Impact of Rythu Bazaars on Farmers
a) To Study the Demographic Profile of the Selected Farmers
b) To Study the Driving Forces for Farmers to carry out Business in
Rythu Bazaar
c) To Study the Status of the Sale of the Produce at the End of the Day
d) To Study the Benefits to the farmers in selling in Rythu Bazaar over
other Local Markets/APMCs
e) To Study the Major constraints farmers face in Rythu Bazaar
( 17 )
f) To Study the next Preference of Farmers after Rythu bazaar to carry
out Business
3. To Study the Impact of Rythu Bazaars on Consumers
a) To study the Demographic Profile of the Selected Consumers
b) To examine the Purchase Pattern of the Consumers
c) To analyze the Major Influencing Factors in Buying Vegetables
3.3 Review of Literature
A.Vadivelu and B.R. Kiran., (2013) believe that there are many kinds of
agricultural products produced in India and the marketing of all these farm products
generally tend to be a complex process. Agricultural marketing involves many
operations and processes through which the food and raw materials move from the
cultivated farm to the final consumers. The suitable marketing system should be
designed so as to give proper reward or return to the efforts of the tiller of the soil.
Market information is a means of increasing the efficiency of marketing system and
promoting improved price formation.
Dr. M. Syed Ibrahim and Dr. M. Selavaraj., (2010) pointed that regulated
agricultural marketing used to be the major enclosure for selling and buying the
agricultural produce and regulated agricultural markets remained a major choice of
farmers of India to sell their produce. Other participants like traders get the produce
at reasonable price from these regulated agricultural markets. Their study
( 18 )
also highlights the major problems and challenges that the regulated agricultural
markets are facing. In the end the study gives suggestions for making regulated
agricultural marketing a healthy transformation for economic development of India.
Rudra Saibaba and Suresh Vadde., (2009) found that other major sufferers
due to lack of proper marketing facilities are the consumers who are deprived of the
fresh farm products. Their findings of the study indicated that majority of
consumers felt the location of Rythu Bazaar is not conducive; and also that majority
of respondents felt the behavior of sellers at Rythu Bazaar has been impolite. They
recommended that the government should take adequate measures to educate both
farmers and consumers, about farmers’ markets, and orient them the benefits of
participating in the Rythu Bazaar. Local administration should also enlighten the
farmers to acquaint themselves with the latest marketing strategies and help them
become efficient and self-sufficient farmers. Location should be more effective
where parking and other amenities should be there to make more conducive.
Ahmed Salma & Dey Subhendu., (2012) studied the demographic profile of
vegetable consumers by dividing them into two categories – those purchasing
vegetables only from Rythu Bazaars and those from both Rythu Bazaars and
supermarkets. Their study also looks at the impact of demographic variables on
purchasing choice, if any. It attempts to study the relation between demographic
characteristics and the preference for both Rythu Bazaars and supermarkets vis-à-
vis only Rythu Bazaars for purchase of vegetables. The results of this study identify
( 19 )
consumer characteristics that influence demand of vegetables and consequently the
farmers’ returns from operating at these bazaars.
Subhendu Dey., (2012) provided the benefits received by the farmers
through Rythu Bazaar, the farmers’ market was a social initiative started by
the government of Andhra Pradesh in 1999. With the main objective of helping
farmers bring and sell their produce directly to consumers without the involvement
of middlemen. Middlemen exist at various levels between the farmer and the
consumer and exploit through malpractices in weighing, handling and payments. In
addition the estimated loss in handling of vegetables in the traditional channel of
marketing is about 30 to 35 percent. Rythu Bazaars were established to address
these issues. Against this backdrop, his research attempts to look at the various
parameters where the farmers have got benefitted since operating from these
market yards.
Dr. K. Raji Reddy and Dr. H. Sateesh., (2012) highlighted that the Rythu
Bazaars are acting as essential link between customers and producers as far as the
marketing of vegetables is concerned. The concept of Rythu Bazaar is built on
mutual benefit i.e. producers and users of the commodity. The state government
introduced this to eliminate middle men, commission agents and other traders in
the process of selling agricultural produce to customers. Their study shows that the
Rythu Bazaars are playing an important role in providing the fresh and qualitative
( 20 )
vegetables at reasonable prices to the customers. Further it is observed that the
location and other facilities provided at Rythu Bazaars are not up the expectation of
the customers and there is a need to improve them.
Onianwa et al., (2005) analyzed the determinants of Farmer-to-Consumer
direct-market shoppers and provided insights into the factors that affect shopping
at a farmer-to consumer direct market. The study revealed that education was the
most significant variable with regard to shopping at farmer-to-consumer direct
markets while income was a less significant factor. Consumers with education above
high school were more likely to shop at a farmer-to consumer direct market.
However, the study also revealed that as income increases, families with children
were more likely to shop at a farmer-to-consumer direct market than were families
without children. Further, older people, males, and whites were all more likely to
shop at a farmer-to-consumer direct market.
Savitha B., (2003) in her paper studied if the farmers operating from
Rythu Bazaars were satisfied with the issue of ID cards, facilities provided, price
fixing mechanism, supervision of the bazaars by officials, utilization of Rythu
Bazaar funds etc. The study also found that the farmers’ felt the absence of
commission and remunerative prices being the main advantages of the markets.
Subhendu Dey., (2012) pointed that the driving forces of the consumers are
the more reasonably priced vegetables of higher-quality are the major reasons why
consumers find farmers’ markets attractive. However, it was also found that, the
( 21 )
farmers have benefitted on account of getting better price as compared to other
outlets, infrastructural, and administrative support and also because of the
transportation facilities provided by these bazaars. Also, from the above it is clearly
evident those from consumers end “Price” at which the farmers sell their vegetables,
while from the farmers’ end “Administrative Support” that they receive is the key
driver to bring them into the Rythu Bazaar.
3.4 Justification of the Study
This research examines the various parameters where farmers and consumers
have found benefits from the time they respectively started selling and
procuring vegetables at these market yards. In the recent past an increasing
inclination towards fresh vegetables with nutritional concerns as well as security
and food safety concerns has been observed. This has increased the interest of
consumers in fresh locally grown vegetables, and with the increasing demand for
fresh agricultural produce, small farmers get an opportunity to increase their
individual returns if they are provided the right kind of support. This project
looks at the supply side to study the benefits accrued by the farmers operating
at these markets and the current satisfaction levels of the farmers with the services
provided here by the officials. It also studies the attitude and forces that drive the
consumers to these market yards and their satisfaction with respect to these
markets.
( 22 )
CHAPTER 4
Research Methodology
4.1 Introduction
Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information on a
specific topic. In fact, research is an art of scientific investigation. According to
Clifford Woody research comprises defining and redefining problems. Formulating
hypothesis and suggested solutions, collecting, organizing and evaluating data,
making deduction and reaching conclusion, and at last carefully testing the
conclusions to determine whether they fit the formulating hypothesis.
This chapter consists of the detail description about the sampling procedure, nature
and sources of data, the analytical tool employed and other information to support
the existing results like the secondary sources of data required to keep the reader
inferred for reference and documentation.
4.2 Research Design
4.2.1 Source of Information:
In order to evaluate the objectives of the study, data was collected from both the
sources, primary and secondary sources.
Primary Data:
It forms the backbone of any study. It was collected from the farmers carrying out
regular business in Rythu bazaar and the consumers, who visit Rythu bazaar
( 23 )
regularly. Apart from them, information was also obtained from the officials of
Rythu bazaar like the supervisors and estate officers. A structured questionnaire, for
the farmers, consumers and the officials was used in the study. Information was also
obtained through informal interaction with the farmers there, to understand the
situation in depth.
Secondary Data:
It was collected from the
 The govt. publications, journals, published and unpublished data
 Also, the online information portal of Rythu bazaar was used extensively
apart from the other websites
4.2.2 Sample Selection
The process of selection of sample was sequential (i.e., in stages). In the first stage,
the Rythu Bazaars were selected based on convenience. In the second stage, the
farmers were selected from these Rythu Bazaars. for the study, three Rythu bazaar
were selected, one from Hyderabad district, i.e., Erragadda Rythu bazaar and two
from the Rangareddy district, i.e., Mehdipatnam and Alwal Rythu bazaar.
4.2.3 Sample Plan:
Sample size: A sample constituting 150 respondents each of farmers and
consumers were selected on the convenience basis. Thus a total of 300 samples
were studied
( 24 )
Sampling unit: Regular visiting consumers (150) and regularly operating farmers
(150) from the Rythu bazaar of Erragadda, Mehdipatnam and Alwal were selected.
Sampling Technique: For this research, survey method, personal interview,
discussion with the respondents.
Instrument for Data Collection: A structured questionnaire, separately for farmers
and consumers and also for officials was used for collection of data.
Analytical tools employed: For achieving the stated objectives, and analytical
procedures like the tabular analysis and graphical method, likert scale, simple
ranking, cumulative methods, cross tabulations, and percentages were used.
4.3 Limitations of the Study
The study may suffer the following limitations
 Since a large majority of the farmers are not educated, therefore the degree of
reliability of their response may not be always correct.
 The quality of primary data collected is subject to the level of cooperation of
the respondents. It is assumed that the respondents are honest in expressing
their opinions.
 The study was limited to the consumers and farmers trading in the three
Rythu Bazaars of Hyderabad and Rangareddy district
( 25 )
CHAPTER 5
ANALYSIS AND DATA INTERPRETATION
Andhra Pradesh is the second largest producer of fruits and the fourth largest
producer of vegetables in the country with a combined production of 233.84 lakhs
tonne. Yet, farmers’ share in the consumers’ rupee is estimated to be just 40 paise,.
By providing farmers’ an alternative channel, some of these inefficiencies existing in
the system can get addressed. The state government of Andhra Pradesh therefore
Rythu Bazaars were established. The Government of Andhra Pradesh started Rythu
Bazaar in 1999 with the principal objective of helping farmers bring and sell their
produce without the involvement of any middleman or marketing intermediary.
5.1 Objective: To study the Mechanism of Rythu bazaar
Functioning: Rythu Bazaars are located in government plots convenient to
farmers as well as consumers. Built on a minimum one acre vacant land, the
infrastructure provided by the government included sheds, arrangements for supply
of drinking water, toilets with sanitation facility, parking for vehicles etc. For setting
up of agricultural markets, funds are sourced from NABARD. Apart from developing
the market yards, free supply of weighing machines and free transport of vegetables
to the farmers’ market, Andhra Pradesh State Road Transport Corporation run
buses ae also provided to the farmers. Every Rythu Bazaar has an Estate Officer,
Assistant Estate Officers, supervisors, night watchman, office boys, and sweepers
( 26 )
5.1.1 Profile of the Market
Particulars Mehdipatnam Alwal Erragadda

District Hyderabad Ranga Reddy Hyderabad
Area of Rythu Bazaar 1.27 acres 1.5 acre 2.6 acres
Total No. of Stalls 281 140 open sheds, 261
8 shutter stall
and 5 jalli stores
Timings of Transaction 6:00 a.m. – 9.30 8.30 a.m. to 8.00 6:30 a.m. – 9:30
p.m. p.m. p.m.
Allocation of Stalls:
a. For Farmers 104 (204 farmers 171 stalls
on the floor) 99
b. For Self Help Groups
140 groups 25 90 stalls
c. For Govt Agencies: together
37, include rice 15
millers
Amenities provided
a. Public Address System Yes Yes Yes
for announcing prices
b. The prices displayed on Yes Yes, 1 main board Yes
the Notice Board and 69 stall
boards
Availability of: Yes Yes, on tender
i. Canteen basis Yes
ii. Restaurant No No No
iii. Toilets Yes Yes, on tender Yes
basis
iv. Parking Yes Yes, though small. Yes
v. Rest house for Yes, under Not Yes
farmers renovation
vi. Drinking Water Yes Yes, 24hrs filter Yes
water availed
vii. Electricity Yes Yes Yes
viii. Fire Extinguishers No No No
ix. Any financial No No No
assistance provided
to farmers
x. Cold storage No Yes, to come up in Yes, 5 tonnes
provided 2.5 months with a capacity, to come in
capacity of 200 use, soon
quintals
( 27 )
xi. Training programme Yes, given at village It used to be, but Yes, once in two
conducted , if any level, by the H.O not now. months
xii. Security System, if Yes, 8 cctv’s fixed. Yes, 6 cctv’s Yes, 6 cctv’s
any
xiii. Bank Facility, if any No No No
xiv. Complaint Cell Yes Yes Yes
Provided
xv. Sweeping Facilities Yes, by the local Yes Yes, by the
Municipal officials contractor
Photo Identity Cards issued 2247 1236 2560
to Farmers
Average number of Arrival 100-120 quintals 600 quintals 900 quintals
of vegetable per day
Average number of farmers 300-350 200-220 350

coming per day
Average number of 900-1000 3000-4000 12000-15000
consumers coming per day (weekdays) and
5000(weekends)
 The average area of the market ranges from 1-3 acres, on the govt. land
 The market functions from early in the morning 6:00 a.m. to 9:30 p.m. late in
the night.
 The market is equipped with the amenities like the canteen, sanitary
arrangements, drinking water, power supply, and supervisory services by the
officials in the market.
 The average number of identity cards issued from 1200 - 2500
 The average arrivals of produce in the market per day ranges from 100
quintal to 600 quintals
( 28 )
 The average number of farmers carrying out business in the market per day
ranges from 250 -350.
 The average number of consumers visiting the market per day ranges from
1000 - 15000
 The facility of cold storages is yet to come in use within a span of 2 – 3
months. However, the capacity differs, depending on the need of the market,
(capacity of 200 quintals in Alwal and 5 tonnes in Erragadda market).
 The training programs for the farmers, estate officers were given in the initial
period of establishment of the Rythu bazaar, but it is not been continued
presently.
5.1.2 Flow of Activities in Rythu Bazaars
Produce assemble by farmers to Bus station (5.00am)
(The farmers from the villages assemble at the bus stop with the harvested produce,
to be taken to the bazaar)
↓
Transportation facility at 6:00 A.M.
(APSRTC buses (Govt. service buses) are provided in the morning hours to pick up
the farmers at subsidized rates for the loading of produce in the bus)
↓
Unloading of Produce
(The produce brought, is unloaded with the help of labors on a daily basis.
However, unloading is carried out throughout the day by the self help groups, as per
the demand of vegetables in the market).
( 29 )
↓
Allotment of stalls
(The stalls are allotted on the first come, first basis. The farmers are not allowed to
occupy the stall permanently. No fee is collected from the farmers.)
↓
Weighment of the Produce.
(When the farmers enter into a Rythu Bazaar, the vegetables brought by them are
weighed correctly and then the quantity is entered in a register, which is later put
up on the Rythu Bazaar website)
↓
Supply of Weighing Scales
(When the farmers enter in to the Rythu Bazaar, their names along with the
particulars such as name of the village and the quantity of vegetables brought by
them will be entered in a register and they will be issued a token. On the basis of
token issued to them, all the farmers are provided with table type weighing scales
every day without collecting any fee. The scales after completing their sales)
Price Fixation
(The Estate Officers in consultation with a farmers’ committee with representation

from each of the mandal falling under the market, communicates the moderate
wholesale prices of vegetables through fax between 7.-30 a.m. and 8:00 a.m. on daily
basis. The prices are usually 20 to 25 per cent higher than the whole sale price and
lower than the local retail market prices in the area)
( 30 )
↓
Display of Prices
(The prices of vegetables are being mentioned on the boards displayed at every stall
in order to have awareness among the consumers and farmers for the purchase/sale
of vegetables. Apart from the price board at every stall two huge price boards are
arranged at the two gates showing the price list of all vegetables.)
↓
Use of Public address system
(Prices of vegetables are frequently announced throughout the day through public
address system to create awareness of the rates of the vegetables among the
consumers as well as farmers)
↓
Activities carried throughout the day (6:30 a.m. to 9:30 p.m.)

 Loading and unloading of the produce by the traders and other local agents
who come for procurement for the local mandis
 Constant addressing of the rates through the public address system
 Looking in to the complaints by the consumers against farmers for not selling
at the board prices
↓
Closing of the Market - the market ends at 9:30 P.M
End of the day activities –
 Farmers who are left with the produce, store it by wrapping and placing it
aside within the Bazaar, for selling it the next day
 Return of weighing scales after the end of the sales,
 Transportation Facility Provided (APSRTC buses are provided to drop the
farmers)
( 31 )
5.1.3 Monitoring and Governance
a. Key people involved in the monitoring or control:

 CEO
 Selection Grade Circle and
 Estate Officers
b. Role of each player:
 Chief Executive Officer: For policy making
 Selection Grade Circle : For the day wise activities
 Estate Officers: For up keeping of Market
c. Training schedule to the officers:
 Training is given twice a year, to the Estate officer for the betterment in
handling the petty issues in market and appropriate up keeping of the
market place
d. Monitoring schedule of the officers, to see if duties are performed
effectively
 Supervisors are monitored by the Estate Officers and the Estate Officers
are monitored by the Selection Grade Circle
e. Attempt of interaction/ any feedback from farmers :
 There is no interaction carried with the farmers to bring about
improvisation in their functioning.
( 32 )
5.1.4 Price Fixation Mechanism in Rythu Bazaar
a. Key People involved: Estate Officer in consultation with the Committee of
farmers (constituting representation from each of the mandal falling under
the market).
b. Basis for price fixation: Prices at the Wholesale market are taken as the
base, with a view to control prices.
The market committees, one at Secunderabad, and another at Gudimalkapur
in Hyderabad, will every day communicate the moderate wholesale prices of
vegetables through fax between 7.-30 a.m. to 8:00 a.m. Basing on the same,
the prices of vegetables are fixed by the Estate Officers in consultation with
the farmers committee, which may be 20% -25% higher than the whole sale
price and also lower than the local retail market prices in the same range.
Present Scenario: Out of the 10 Rythu Bazaars operating in the city, one
Rythu Bazaar fixes the prices based on Bowenpally market rates (Wholesale
rates). The prices in the bazaar are kept just 2 Rs. higher than in the
wholesale market.
This is done to bring about Price Control in the market.
c. Advantage to consumers with the price fixation mechanism:
The consumers are availed with the vegetables at the best prices in the
market, lower than in any other retail outlets.
( 33)
d. Advantage to farmer with price fixation mechanism:
The prices are higher than the wholesale prices, and competitive enough.
Also, since transaction in the market is only through cash, there is no problem
of delayed payment or bad debts.
Also, the farmers sell at prices marginally higher than the board prices, which
is in turn another benefit to the farmers.
e. Methods of Prices Awareness in Rythu Bazaar
i. Price display in Rythu Bazaar:
The prices of vegetables are being mentioned on the boards displayed
at every stall in order to have awareness among the consumers for the
purchase/sale of vegetables. Apart from the price board at every stall
two huge price boards are arranged at the two gates showing the price
list of all vegetables.
ii. Prices announcement:

There are mandatory announcements made at regular intervals
throughout the day through Public Address System
5.1.5 Marketing issues in Rythu Bazaar:
a. Farmers arrival to the market:
Farmers come to market by the Govt. service buses that are provided.
However, the expenses are borne by the farmers, but at subsidized prices for
the luggage they carry.
( 34 )
b. Grading of produce: There is no grading carried in the market
c. Packaging of produce: There is no Packaging carried in the market.
d. Storage facilities provided for produce:
At Erragadda, cold storage of 5 tones capacity, to come in use, soon
At Alwal, a cold storage with a capacity of 200 quintal, to come in use in 2.5
months.
( 35 )
5.2 Objective : To Study the Impact of Rythu Bazaars on Farmers
5.2.1 Demographic Profile of the Selected Farmers

To better understand the nature of constitution of in Rythu Bazaar, respondents
were questioned on their demographic characteristics such as age, level of
education; land holdings, duration of operation in the Rythu bazaar.
Fig. 5.2.1.1: Age of the Selected Farmers
Small Farmers Medium Farmers Large Farmers

n=150
40
34
28
18 16 16
14 14 14 14
12 12 12
8
6
44 4 4 4 4
22 222 2 22
Below 25 26-45 46-55 Above Below 25 26-45 46-55 Above Below 25 26-45 46-55 Above
55 55 55
Alwal(%) Mehdipatnam(%) Erragdda(%)
Form the figure 5.2.1.1, it is evident that a majority of farmers coming to Rythu
bazaar were small farmers with the age group of 26-45 in all the three markets,
Alwal (40 per cent), Mehdipatnam (34 per cent), and 28 per cent in the Erragadda
market.
From the figure 5.2.1.2, it can be seen that, a major chunk of the farmers were
illiterate with small land holdings, in all the three markets. Alwal had 52 per cent,
( 36 )
Mehdipatnam had 38 per cent and in the Erragadda market, 16 per cent each of the
small farmers category were illiterate and with education level below 10.
Fig 5.2.1.2: Education level of the Selected Farmers
n=150
52
38
16 14 16 16
10 10 10 10 10
86 6 68 6 6 6 4 2 10 4 6 4 6 6
2
2
Illiterate Below 10 10th Illiterate Below 10 10th Higher Illiterate Below 10 10th Higher
than 10th than 10th
Fig.5.2.1.3. Length of Duration of farmers in Rythu Bazaar

n=150
38
22
18
16 16
14 14 14 14
12 12 12
10 10
8 10 8 8 8 8
8 6
4 6
2 2
Below 5 6-10 years Above Below 5 6-10 years Above Below 5 6-10 years Above
years 10years years 10years years 10years
( 37 )
The figure 5.2.1.3, shows that a majority was dominated by the small farmers, with a
major of them being for more than 10 years in the Alwal market (38 per cent), and
below 5 years in both Mehdipatnam (22 per cent) and Erragadda market
(18 per cent). The loyalty of the farmers towards the market can be understood
because of the benefits they are deriving out of it, like the direct sale, assured place
for sale, assured consumers, no intermediary as in other markets.
5.2.2. Driving Forces for Farmers to carry out Business in Rythu Bazaar
The farmers’ survey questionnaire attempted to find the satisfaction level for
various services like the transport facilities etc and the other facilities provided at
the Rythu Bazaars like the weighing scales, drinking water, and sanitary
arrangements etc, based on their experience of being a member of these markets
Fig. 5.2.2.1: Opinion on Convenience of Location of Rythu bazaar from the

Farmers

n=150
48
28 26
22
18 18 16 18 16
14 12 12
10 8 6 8
2 4 2 2 4 2 4
Inconvenient
Inconvenient
Inconvenient
Convenient
Convenient
Convenient
N.Convenient Nor
N.Convenient Nor
N.Convenient Nor
Inconvenient
Inconvenient
Inconvenient
( 38 )
It can be seen from the figure 5.2.2.1 that, a large group of small farmers in all the
three market found the location of Rythu Bazaar convenient with highest majority of
48 per cent in Alwal, 28 per cent in Mehdipatnam and 26 per cent in the Erragadda
market as the locations are planned initially taking in consideration the convenience
of reach of the market by the farmers, in all possible ways.
The figure 5.2.2.2 shows that, the transport facility provided to the farmers, was
considered by the small farmers, as highly satisfactory in the Alwal (50 per cent)
and Mehdipatnam (22 per cent) market as the bus frequency in the close by villages
of these areas is quiet high. However, in the Erragadda market, it was highly
dissatisfactory with a majority going to 26 per cent as the buses movement is only
once in the morning and evening in the close by villages.
Fig. 5.2.2.2: Satisfaction level of adequacy of Transportation facilities provided

to the farmers

50
n=150
26
22
20 20
18 18
16 16
14
12
10 10
8
8 4 4 4
4 2 4 2 2 2 4
Highly Moderately Highly Highly Moderately Highly Highly Moderately Highly

Satisfied Satisfied Dissatisfied Satisfied Satisfied Dissatisfied Satisfied Satisfied Dissatisfied
Alwal(%) Mehdipatnam(%) Erragada(%)
( 39 )
The figure 5.2.2.3 depicts that the farmers were highly dissatisfied with the cost
incurred in getting the produce to Rythu bazaar, with 46 per cent in Alwal,
32 per cent in Mehdipatnam and 26 per cent in the Erragadda market, all of them
belonging to the category of small farmers. The main reason is the price fixation
mechanism, which doesn’t take in consideration of the expenses borne by the
farmers (labor and transportation expenses). The prices are fixed purely on the
wholesale rates in the Bowenpally market on the daily basis.
Fig. 5.2.2.3: Satisfaction level on Cost incurred in bringing the produce to the
Rythu Bazaar

46 n=150
32
26
20 18 18 20 20
16 16
12 12 10 12
6 8
4
4
Moderately Highly Dissatisfied Moderately Highly Dissatisfied Moderately Highly Dissatisfied

Satisfied Satisfied Satisfied
5.2.2.3.1: Satisfaction Levels of Farmers towards the Infrastructure Facilities

Provided in Rythu Bazaar
The method of allotment of stalls has been considered dissatisfactory by a majority
of the famers (figure 5.2.2.3.1), 28 per cent in the Alwal market, and 56 per cent in
the Mehdipatnam market. In the Erragadda market, equal ranges of farmers, were
( 40 )
moderately and highly dissatisfied (40 per cent each). This is because of the fact
that, even though the space is allotted on first come first basis, but in reality, it is not
followed by anyone. The farmers tend to claim their places as permanent.
Fig. 5.2.2.3.1: Satisfaction Levels towards the Method of Allotment of Stalls
Highly Satisfied Moderately satisfied Highly Dissatisfied

n=150
56 56
40 40
34
30
20
14
10
It is evident from the figure 5.2.2.3.2, that the space of stalls provided to the farmers
was highly dissatisfactory. The level of dissatisfaction was about 70 per cent in
Alwal, 52 per cent in Mehdipatnam and as high as 74 per cent in the Erragadda
market. It is because of the large occupancy in the stalls by the self help groups, as a
result the farmers are forced to sit on the floor in open sun.
( 41 )
Fig.5.2.2.3.2: Satisfaction Levels of towards the Space of Stalls Provided.

n=150
70 74
52
42
22 20
8
6 6
Fig.5.2.2.3.3: Satisfaction Levels of towards the Provision of Weighing Scales.

n=150
86
78
60
24 22
16 14
From the figure 5.2.2.3.3, it could be seen that the farmers were highly satisfied in
the Mehdipatnam market (86 per cent) with the provision of weighing scales but the
sense of dissatisfaction was high in the Alwal (60 per cent) and Erragadda
(78 per cent) market. The reasons for it could be attributed to the fact that a
( 42 )
majority of scales are not in working condition and have not been repaired from a
long time, as a result of which there is scarcity of the scales. In certain conditions,
the trays are in scarcity as well.
Fig. 5.2.2.3.4: Satisfaction levels towards the Provision of Power Supply

n=150
90
76
54
32
24
12 12
From the figure 5.2.2.3.4, it could be seen that the farmers were moderately satisfied
with the provision of power supply in the Mehdipatnam market (90 per cent) and in
the Alwal market (54 per cent) but the sense of dissatisfaction was high in the
Erragadda (76 per cent) market. The farmers however feel that the provision of
power supply do not bother them significantly, as the farmers wind up their
business before it gets dark.
From the figure 5.2.2.3.5, it could be seen that the farmers were highly satisfied with
the provision of drinking water in the Mehdipatnam market (72 per cent), as there
was the provision of filter water throughout the day and moderately satisfied in the
Alwal market (28 per cent). But the sense of dissatisfaction was as high as 42 per
cent in the Erragadda market because the water tank is rarely washed and no filter
water is provided, as a result, the farmers buy mineral water, but do not consume
there.
Fig. 5.2.2.3.5: Satisfaction Levels towards the Provision of Drinking Water

n=150 94
72
46
28 30
24
From the figure 5.2.2.3.6, it can be seen that the farmers were highly satisfied with
the provision of sanitary arrangements in the Mehdipatnam market (80 per cent),
but highly dissatisfied both, in Alwal (52 per cent) and in Erragadda (80 per cent)
market because in these market the wash rooms were rarely cleaned and apart from
that, these were pay and use bathrooms, which is not affordable, especially by the
farmers in the Erragadda market and so the dissatisfaction is so high.
( 44 )
Fig. 5.2.2.3.6: Satisfaction Levels towards the Sanitary Arrangements

n=150
80 80
52
24 24 20 20
From the figure 5.2.2.3.7, it is evident that the storage facilities were not provided in
any of the three markets and so the dissatisfaction is 100 per cent in all the markets.
The farmers store their produce within the market at a side by wrapping it in a
gunny bag or so, risking the loss of their produce. However, there is a cold store
built in the Erragadda market which will soon come in use
Fig. 5.2.2.3.7: Satisfaction Level towards the Provision of Storage Facility

n=150
100 100 100
( 45 )
5.2.2.4: Satisfaction Level of the Selected Farmers towards the Supervisory
Services Provided at the Rythu Bazaar
To know the farmers attitude and their compatibility with the staff in the Rythu
bazaar, the farmers were questioned on few of the supervisory and advisory
services to them.
Fig. 5.2.2.5.1: Satisfaction Level towards the Supervisory Services Provided for
Checking the Prices

n=150
56
50 52
42 44
42
8 6
The supervisory services for checking of prices, from the figure 5.2.2.5.1, were
moderately satisfactory in Alwal with 50 per cent majority and in the Mehdipatnam
market with 52 per cent. However, in the Erragadda market, the dissatisfaction was
the highest with 56 per cent in majority.
From the figure 5.2.2.5.2, it could be seen that only in the Mehdipatnam market the
dissatisfaction level was the lowest, with a majority of 62 per cent of the farmers
being moderately satisfied. However, in the Erragadda market the dissatisfaction
( 46 )
was the highest with 58 per cent and in the Alwal market it was seen that a majority
were moderately satisfied (46 per cent).
Curbing any Malpractices

n=150
62
58
46
42 42
36
12
2
From the figure 5.2.2.5.3, it is evident that the basic facilities were satisfactorily
looked upon in the Mehdipatnam market, 66 per cent. In the rest two markets, Alwal
(44 per cent) and Erragadda market (50 per cent); moderate satisfaction was
experienced among the farmers, as the officials in these markets do not respond
quickly as and when the complaint is given
( 47 )
Checking the Basic Facilities.

n=150
66
50 50
44 42
34
14
Avoiding the Entry of Middlemen

n=150
54
46 46
40 40 37
17
14
6
Rythu bazaar, known for its direct marketing, also faces the danger of middlemen,
which invade as traders or in the name of self help groups. However, from the figure
5.2.2.5.4, it is evident that in all the three markets, the supervisory services were
moderately satisfactory to control the entry of the middlemen. In Alwal it was 46
( 48 )
per cent, in Mehdipatnam it was 54 per cent and in Erragadda market it was 46 per
cent. This is for the fact that, the market derives its income from these groups in the
form of rental charges; maintenance charges etc. Hence these groups are seen in
good majority in all the three markets.
Fig. 5.2.2.5.5: Satisfaction Level towards the Advisory services provided for
Operational Requirement

n=150
88
60 58
42
36
4 10 2
As such, there is no advisory service provided to the farmers, regarding any
operational practices. However, time to time inspection by the Horticulture
Consultant in the village is done and merely suggestions and advices are given to the
farmers and so the farmers show moderate satisfaction (figure 5.2.2.5.5), in all the
three markets with 60 per cent majority in Alwal, 88 per cent in Mehdipatnam and
58 per cent in the Erragadda market
( 49 )
5.2.2.5: Control of Prices at Rythu Bazaar:
To get a better understanding of the price fixation mechanism, the attitude of
farmers towards such a mechanism, to know the in depth scenario, farmers were
questioned in this regard.
Fig. 5.2.2.5.1: Vegetables sold at the Fixed Prices by the Farmers
Yes No Leafy
n=150
70
42 48 46
34
24
18
12
6
From the figure 5.2.2.5.1, it could be seen that a majority of the farmers sell
according to the board rates, with a fear that their liscence would be cancelled if
they do not do so. In Alwal 42 per cent, in Mehdipatnam 70 per cent and in
Erragadda 48 per cent, sell according to the board rates. However, when it is said
that the farmers do not follow the board rates, it is merely 1 to 2 rupee higher than
the board rates they sell and that too, only when the produce is fresh. For the
farmers selling the leafy vegetables, there is no board rate decided. They follow and
fix reasonable rates by their own, which is quiet affordable to the consumers.
( 50 )
Fig. 5.2.2.5.2: Prices at Rythu Bazaar is less than the Local Retail Prices and
higher than the Wholesale Price
Yes No
n=150
100 100 100
The prices that are fixed in the Rythu bazaar are done in such a way that they
remain higher than the wholesale prices, to benefit the farmers and lower than the
retail prices, to benefit the consumers. Hence 100 per cent rating has been given in
all the three markets for this aspect (figure 5.2.2.5.2).
From the figure 5.2.2.5.3, it is evident that farmers were not involved in the Price
fixation, with 50 per cent in Alwal, 80 per cent in Mehdipatnam and 94 per cent in
the Erragadda market. For the farmers selling leafy vegetables, the rates were not
decided by the administration and no board prices were displayed. Such farmers
decided the rates based on the quantity in the market for that particular day.
According to the standard manual of Rythu bazaar, farmers are needed to be
consulted before deciding the price, which is however not followed in actual. The
( 51 )
prices from the wholesale market are taken daily and with addition of merely 2
rupee, prices are displayed in the market
Fig. 5.2.2.5.3: Farmers consulted in Price Fixation
Yes No Leafy
n=150
94
80
50
26 24
18
6
Fig. 5.2.2.5.4: Present Price Fixation Mechanism
average
n=150
100 100 100
It can be seen that the price fixation mechanism in Rythu bazaar was based on
average prices that were considered from the wholesale markets and fixed with
addition of more 2 rupee.
( 52 )
Fig. 5.2.2.5.5: Farmers Bargaining Power
Yes No
n=150
96
88 82
12 18
4
From the figure 5.2.2.5.5, it could be seen that the farmer’s bargaining power was nil
in mostly all the markets with 88 per cent in Alwal, 82 per cent in Mehdipatnam
market and 96 per cent in the Erragadda market. It was so, because, these farmers
fear the cancellation of their licenses for not selling at the board prices, or for the
complaints given by the consumers for any such related issues. The few farmers
with the bargaining power were the farmers selling leafy, where there is a little
scope for bargain, as their prices are not displayed on the board.
5.2.3. Status of the Sale of the Produce at the End of the Day
From the figure 5.2.3, it could be seen that a majority of them, both in Alwal and
Mehdipatnam market tend to finish off the sales in the same day, with 64 per cent
and 62 per cent respectively, by selling at a very low price at the end of the day, just
to wind up, so that they did not have to take the risk of keeping the produce in the
market in the night. Also, the quantity, the farmers got in the market was also low.
However, in Erragadda market, the sales were continued to the next day as well, for
( 53 )
which they stored the produce within the market, (68 per cent). The next best
option to the majority of farmers, when they do not succeed in finishing off the sales,
was to keep the produce within the market.
Fig. 5.2.3: Status of the Sale of the Produce at the End of the Day

n=150
68
64 62
34 32
30
2 4 2 2
yes Selling to the vendors or Keeping in Rythu Bazaar Taken for home
hotels consumption
5.2.5. Benefits to the farmers in selling in Rythu Bazaar over other Local
Markets/APMCs
In order to understand the actual motive behind the loyalty of the farmers towards
Rythu bazaars, who have been operating since long, in spite of all the odds, the
correspondents were questioned on the real benefits reaped by them through the
Rythu bazaar
For most of the farmers, form figure 5.2.5.1, the direct one to one interaction with
the consumers was the biggest benefit received to them, with 45.1 percent in Alwal,
43.8 per cent in Mehdipatnam and 45.9 per cent in the Erragadda market. However
( 54 )
other factors like the assured place for sale, higher prices for the produce also were
amongst the other benefits received by them.
Fig. 5.2.5.1 Benefits to the farmers in selling in Rythu Bazaar over other Local
Markets/APMCs

n=150, Multiple Response
45.1 43.8 44.9
27.5
23.9
21.9
18.8
16.4 16.9
12.7
9.6
8.2 8.7
1.4
Higher Prices of Direct Selling Assured Place for Assured Customer Convenience
Produce Sale for the Produce
5.2.5. Major constraints farmers face in Rythu Bazaar

To get a deep knowledge of the constraints faced by the farmers in the market in
concerning to the facilities provided, with the market staff and other such related
problems, the farmers were questioned in this regard
( 55 )
Fig. 5.2.5.1: Major constraints farmers face in Rythu Bazaar

78.9
55.7
51.9
37.0
23.0
12.3 13.1
9.3 8.2
3.5 5.3
1.9
Price is Not Profitable Poor Bargaining Power Clean Market Yard Space
The farmers in Rythu bazaar faced many problems of unprofitable prices, poor
bargaining power, space and also cleanliness of the market. However, the
availability of space was seen as a major problem common in all the markets like in
Alwal with 78.9 per cent and Mehdipatnam with 55.7 per cent. The main reason for
the scarcity of the space was for the fact that there was high domination of the
groups that occupied the sheds in the market, leaving the farmers on the floors
under the sun. However, in the Erragadda market, cleanliness was the main issue, as
the dump was left unclean and unattended in the market, as a result of which many
of the farmers found it difficult even to consume their food
( 56 )
5.2.6. The next Preference of Farmers after Rythu Bazaar to Carry Out
Business
To understand the next option for the farmers after Rythu bazaar, and also to
understand what could be the threatening reasons for the farmers to leave the
Rythu bazaar and carry business elsewhere, so that optimum measures and
requirements can be taken.
Fig. 5.2.6.1:The next Preference of Farmers after Rythu Bazaar to Carry Out
Business

41.9
37.3 37.9
19.7 21.4
16.4 17.1
15.2 14.9 16.4 13.4
18.2 8.6
6.1 5.7
2.9 1.5 2.9 3.0
Produce does lack of Transportation Price is higher Bulk doesn’t Space other reasons
not sale in RB customer problem than RB sale in RB
The main reason to curb and close down the business in Rythu bazaar (figure
5.2.6.1), was because the produce did sale in the market, especially in the Alwal
market (37.3 per cent) and in Erragadda market (41.9 per cent) because of the
development of market within the vicinity of Rythu bazaar like the organized retails
and etc. However, in the Mehdipatnam market, these factors took a second seat with
( 57 )
the space being the major reason for the farmer to close down on the business. Also,
other factors like the lack of customers, higher price realization in the other markets
contributed more or less in the same range of reasons.
Conclusion:
Majority of farmers in Rythu bazaar are small farmers who are illiterate. These
farmers have been operating for more than 5 years in the market. They are satisfied
with the infrastructural facilities provided to them, apart from the other supervisory
services in the market. The farmers have gained through direct interaction with the
consumers, apart from the assured place of sale and consumers. However, they
resent the presence of SHG’s excessively in the market, as a result of which farmers
compromise on the space which of utmost requirement in the market. For many
farmers, due to unavailability of storage facilities, they prefer to wind up sales
within the same day; else they put the produce within the market. For many of them,
the lack of sales in the bazaar could be a major reason to leave the Rythu bazaar. All
said and done, it can’t be ignored that Rythu bazaar have changed the lives of many
small farmers in many ways, which can be seen in the form of strong loyalty towards
the market.
( 58 )
5.3 Objective: To Study the Impact of Rythu Bazaar on Consumers
5.3.1 To study the Demographic Profile of the Selected Consumers
To better understand who constitutes Rythu Bazaar’s consumers, respondents were
questioned on their demographic characteristics such as age, gender, educational
qualification, occupation, annual family income.
Fig. 5.3.1.1: Age status of the Selected Consumers

n=150
72
54
52
22 24 24 20 18
6 2 6
below 25 26-45 46-55 above 55
The figure 5.3.1.1 shows that majority of the consumers belonged to the age group
of 26 - 45, with 52 per cent in the Alwal and 72 per cent Erragadda market.
However, about 54 per cent of the consumers belonged to the age of above 55 in the
Mehdipatnam market.
The figure 5.3.1.2 indicated that in the majority of people coming to the Rythu
Bazaar are male, with as high as 78 per cent in Mehdipatnam market, 62 per cent in
the Alwal market and 60 per cent in the Erragadda market.
( 59 )
Fig. 5.3.1.2: Gender status of selected consumer
Male Female
n=150
78
62
60
38 40
22
Alwal(%) Mehdipatnam(%) Erragadda(%)
Fig. 5.3.1.3: Education Qualification of the selected Consumers

n=150
70 70
50
24 26 24
18
12 6
Matriculation Intermediate Graduation
From the figure 5.3.1.3, it could be understood that, a majority of the surveyed
consumers, have completed graduation, with about 70 per cent each in Alwal and
Mehdipatnam market and 50 per cent in the Erragadda market. Thus educated and
retired people (ex-army men, retired professors, pensioners etc) preferred to
purchase from the Rythu bazaar.
( 60 )
The figure 5.3.1.4 depicts that, out of the surveyed consumers, with a majority
belonging to the income of 1-2 lakhs, in the Alwal market, about 22 per cent were in
the Govt. Service and about 24 per cent were retired/pensioners, in the
Mehdipatnam market. However, in the Erragadda market, the majority of
consumers 42 per cent, with income of 2-4 lakhs worked in the Private Service.
Fig. 5.3.1.4: Occupation of the Selected Consumers
1-2 lakh 2-4lakh 4-6 lakh 6-8 lakh > 8 lakh

n=150
42
32
22 24
16
14 12 10 10
8 8 8 8 8 10 106 664
2 44 2 22 4 244 42
Govt Private Busines Retired Govt Private Busines Retired Govt Private Busines Retired
service service service
5.3.2. To examine the Purchase Pattern of the Consumers

The figure 5.3.2.1 shows that the income groups of 1-2 lakhs visited the Rythu
bazaar once in a week with 32 per cent of the consumers in the Alwal market, and
30 per cent in the Mehdipatnam market. Whereas in the Erragadda market, it was
the income group of 2-4 lakhs, about 34 per cent, that visited Rythu bazaar twice a
week. From the foregoing discussion, it can be concluded that a majority of
consumers visit Rythu bazaar once or twice a week
( 61 )
Table 5.3.2.1: Frequency of Purchasing
Alwal (per cent ) Mehdipatnam (per cent ) Erragadda (per cent )

Purchasing
Pattern Daily/ Once Weekly Daily/ Once Weekly Daily/ Once Weekly
Alternate in 3 Once Alternate in 3 Once Alternate in 3 Once
days days days
1-2 lakhs 4 12 32 6 14 30 - 8 30
2-4 lakhs 6 6 10 2 12 12 8 34 10
4-6 lakhs 8 6 6 4 6 - - 4 2
6-8 lakhs 4 2 2 10 2 2 -
> 8 lakhs 2 - - - 2 2 - - -
Total (per 100 100 100

cent )
Fig. 5.3.2.1: Frequency of Purchasing
1-2 lakh 2-4lakh 4-6 lakh 6-8 lakh > 8 lakh

n=150 34
32 30 30
14
12 12
12 10 10 10
8 8 8
6 66 6 6 6
4 4 4
2 2 2 2 2 2 2 42 2
Daily/ Once in 3 Weekly Daily Once in 3 weekly Daily/ Once in 3 weekly

alternate days Once days once alternate days once
Alwal(%) Mehdipatman(%) Erragadda(%)
( 62 )
Table 5.3.2.2: Timings of Purchase of Vegetables
Timings of Purchase Alwal Mehdipatnam Erragadda

(per cent) (per cent) (per cent)
Morning 46 36 44
Afternoon 20 20 26
Evening 4 6 16
As Per Convenience 30 38 14
Total (per cent) 100 100 100
From the figure 5.3.2.2, it can be concluded that out of the surveyed consumers, a
majority of them prefer the morning hours, both in the Alwal (46 per cent) and
Erragadda (44 per cent) markets. However, a close percentage of them in the
Mehdipatnam market, prefer to come in the morning hours (36 per cent) and as per
the convenience (38 per cent). Majority of the respondents prefer morning hour
with the perception that vegetables will be fresh at that time of the day
Fig. 5.3.2.2: Timings of Purchase of Vegetables

n=150
46 44
36 38
30
26
20 20
16 14
6
4
Morning Afternoon Evening As Per Convenience
( 63 )
5.3.3. To analyze the Major Influencing Factors in Buying Vegetables
To know the major influential factors that drive the consumers into the Rythu
bazaar rather than the other organized retails, the surveyed consumers were asked
about their opinion on various factors like the quality of produce in the market, the
prices, the convenience of location or of availability of vegetables etc.
Table 5.3.3.1: Major Influencing Factors in Buying Vegetables
Note : 4 = Excellent, 3 = Good, 2 = Average, 1 = Poor

Rating of parameters No. of Consumers Cumulative Rank
Score
Excellent Good Average Poor
Quality 108(27) 285(95) 56(28) - 449 4
Price 72(18) 222(74) 112(56) 2(2) 408 5
Right Measurements 24(6) 255(85) 102(51) 8(8) 389 6
Freshness of 216(54) 240(80) 32(16) - 488 3

Vegetables
Location of Rythu 320(80) 156(52) 16(8) 10(10) 502 2

Bazaar
Availability 416(104) 123(41) 10(5) - 549 1
Bargaining Power 76(19) 201(67) 86(43) 21(21) 384 7
Max Rating ( maximum scale, 4*150 consumers) = 600 (Max)
From the Table 5.3.3.1, it can be clearly seen that amongst all the influencing factors,
driving the consumers to the market, availability of the vegetables has been ranked
the highest, because the consumers find all the vegetables they intend to buy, within
( 64 )
the first go, followed by the convenience of location. However, the parameters like
the price, quality, and the bargaining power have been given priority lower than the
expected and the reason for it being, that the farmers do not follow the board rates,
as per the rules. The quality of the produce tends to deteriorate as the day goes,
because of the fact that a majority of farmers sit directly under the hot sun, and as a
result, the vegetables tend to rot soon with deterioration in the quality.
Tabe.5.3.3.2: Quality Perception by the Consumers
Quality Alwal Mehdipatnam Erragadda

(per cent ) (per cent ) (per cent )
Excellent 24 20 24
Good 58 68 32
Average 18 12 42
Poor - - 2
Total 100 100 100

(per cent )
Fig.5.3.3.2. It can be seen that the quality of the vegetables, in majority, in the Alwal
and Mehdipatnam market has been rated “good” with 58 per cent and 68 per cent
respectively. However, in the Erragadda market, major respondents have rated the
quality as average (42 per cent), and also as poor (2 per cent), the reason for it could
be attributed to the poor infrastructural facilities in the market, like no stalls for the
( 65 )
farmers and inadequate space, due to which they operate in open, directly under the
sun, thus harming the quality of the produce
Fig.5.3.3.2: Quality Perception by the Consumers
Alwal(%) Mehdipatnam(%) Erragadda(%)

n=150
68
58
42
32
24 24
20
18
12
2
Excellent Good Average poor
Table 5.3.3.3: Prices Perception by the Consumers
Prices of the Vegetables Alwal Mehdipatnam Erragadda

Generally cheap 18 22 24
Less than average 44 38 32
Average 38 30 42
More than average - 8 2
High - 2 -
( 66 )
Fig. 5.3.3.3: Prices Perception by the Consumers
Alwal(%) Mehdipatnam(%) Eragadda(%)

n=150
44 42
38 38
32 30
22 24
18
8
2 2
Generally cheap Less than average Average More than average High
The prices, according to the figure 5.3.3.3, have been considered as below average in
both Alwal (44 per cent) Mehdipatnam (38 per cent) markets. Whereas, in been
rated average with 42 per cent standing in majority. This perception of prices have
been given by the consumers related to the quality that is available in the market.
For many consumers, the major issue lies in the farmers not following the board
rates
Table 5.3.3.4: Convenience of Location of Rythu Bazaar
Location of Rythu Bazaar Alwal Mehdipatnam Erragadda

Convenient 70 68 56
Neither Convenient Nor Inconvenient 28 26 36
Inconvenient 2 6 8
( 67 )
Fig. 5.3.3.4: Convenience of Location of Rythu Bazaar
Convenient Neither convenient Nor inconvenient Inconvenient

n=150
70
68
56
36
28 26
6 8
2
The figure 5.3.3.4 shows that the conveniences of location for the consumers in all
the three markets were convenient enough, with 70 per cent in Alwal, 68 per cent in
Mehdipatnam and 56 per cent in the Erragadda market. It is because of this
convenience of location, majority of the consumers are driven into the market, as
understood by the Table 5.3.3.1.
Table 5.3.3.5: Availability of Vegetables in Rythu Bazaar
Availability of Vegetables Alwal Mehdipatnam Erragadda

Excellent 88 80 36
Good 10 18 50
Average 2 - 14
( 68 )
Fig. 5.3.3.5: Availability of Vegetables in Rythu Bazaar
Excellent Good Average

n=150
88
80
50
36
18 14
10
2
From the Figure 5.3.3.5, it can be seen that the availability of vegetables has been
rated excellent in the Alwal (88 per cent) and Mehdipatnam market (80 per cent)
and as good in the Erragadda market (50 per cent). It is one of the major pulling
factors for the consumers into the market. The consumers find all the required
vegetables within the market at a convenient reach.
Table 5.3.3.6: Behavior of Sellers in Rythu Bazaar
Behavior of sellers Alwal Mehdipatnam Erragadda

( per cent) ( per cent) ( per cent)
Very courteous 4 10 28
Courteous 78 70 56
Indifferent 12 20 10
Impolite 6 - 6
( 69 )
Fig. 5.3.3.6: Behavior of Sellers in Rythu Bazaar

n=150
78
70
56
28
20
10 12 10
4 6 6
Very courteous Courteous Indifferent Impolite
Form the figure 5.3.3.6, it can be understood that the behavior of sellers in all the
three market was courteous with highest percent of 78 in Alwal, followed by 70 per
cent in the Mehdipatnam market and about 56 per cent in the Erragadda market. It
can also be noticed that only a mere of 6 per cent each in Alwal and Erragadda
markets show the impolite nature of the sellers. Most of the consumers, during the
survey revealed that it was for the “comfort” they experience in the market with the
sellers, they visit Rythu bazaar frequently.
( 70 )
Table 5.3.3.7: Problems in Rythu Bazaar
Problems in Rythu Bazaar Alwal Mehdipatnam Erragadda

Yes 58 46 40
No 42 54 60
Fig. 5.3.3.7: Problems in Rythu Bazaar
Yes No
n=150
58 60
54
42 46
40
Out of the surveyed consumers, the problems faced in Rythu bazaar or not, by them
were merely close. In Alwal, however, 58 per cent of them had problems with the
sellers not following the board rates, poor parking facilities, untidy market place etc.
In the Mehdipatnam market, a major of them do not have any problem, but however,
congested walkways, overly crowded market, especially during the weekends, poor
( 71 )
parking facilities and above all, the prices that are not followed by the sellers in the
market envelope the list of problems majorly faced in this market. In the Erragadda
market, the major problem is regarding the prices, like in the other two markets.
Fig. 5.3.3.8: Whether Recommend Rythu Bazaar to Others
Yes
n=150
100 100
100
From the figure 5.3.3.8, it can be concluded that, in spite of consumers facing
problems in Rythu bazaar, all of them had recommended about the market to
others. This is for the fact that, the market has convenience of location, good and
fresh quality vegetables, though not at a price that is displayed on the board, but
much lower than in the other organized retail outlets. Also, many of the consumers
share comfortableness with the farmers operating in the Rythu bazaar, which is
lacking in the organized retails.
( 72 )
Conclusion:
Many of the consumers visiting the bazaar are male, with age of 26 – 45.They tend to
prefer the morning hours, as the vegetables are perceived to be fresh. Maximum
consumers visit the market once or twice in a week. The major pulling factor for the
consumers is the availability of vegetables. The quality and price are however
considered good to average, as in the Rythu bazaar there is no grading done. The
congested walkways, poor parking facilities, unclean market yard are few problems
the consumers face. However, still the dearness towards the market, the
comfortableness with the sellers forces the consumers into the market.
( 73 )
CHAPTER 6
FINDINGS
6.1 Findings of Farmers:
6.1.1: Demographic Profile of Farmers
 Majority of farmers visiting the market are small illiterate, farmers with age of
26-45 and have been in the market for more than 10 years in Mehdipatnam and
Erragadda market and 5 years in the Alwal market.
6.1.2: Driving Forces for Farmers to carry out Business in Rythu Bazaar
 A large group of small farmers in all the three market found that the location of
Rythu Bazaar is convenient
 The transport facility provided to the farmers, is considered as highly
satisfactory in the Alwal and Mehdipatnam market. However, in the Erragadda
market, it is highly dissatisfactory
 The farmers are highly dissatisfied with the cost incurred in getting the produce
to Rythu bazaar, in all the three market, all of them belonging to the category of
small farmers.
( 74 )
6.1.3 Satisfaction Level of farmers towards the infrastructural facilities
provided:
 The method of allotment of stalls is considered dissatisfactory by a majority of

the famers in all the surveyed markets.
 The space of stalls provided to the farmers is highly dissatisfactory. It is because

of the large occupancy in the stalls by the self help groups, as a result the farmers
are forced to sit on the floor in open sun.
 The farmers are highly satisfied in the Mehdipatnam market with the provision
of weighing scales but the sense of dissatisfaction is high in the Alwal and
Erragadda market.
 The provision of drinking water in the Mehdipatnam is highly satisfactory, as

there is the provision of filter water throughout the day but the sense of
dissatisfaction is very high in the Erragadda market because the water tank is
rarely washed and no filter water is provided.
 The farmers are highly satisfied with the provision of sanitary arrangements in
the Mehdipatnam market but highly dissatisfied both, in Alwal and in Erragadda
market, because in these market the wash rooms are rarely cleaned
 The storage facilities are not provided in any of the three markets. The farmers
store their produce within the market at a side by wrapping it in a gunny bag or
so, risking the loss of their produce.
( 75 )
6.1.4: Satisfaction level towards the supervisory service and advisory service:
 The supervisory services for checking of prices and curbing any malpractice are
moderately satisfactory in Alwal and in the Mehdipatnam market. However, in
the Erragadda market, the dissatisfaction is highest.
 The basic facilities are satisfactorily looked upon by the supervisory services in
the Mehdipatnam market. In the rest two markets, Alwal and Erragadda market,
moderate satisfaction is experienced among the farmers
 The supervisory services are moderately satisfactory to control the entry of the
middlemen.
 As such, there is no advisory service provided to the farmers, regarding any
operational practices. However, time to time inspection by the Horticultural
Consultant in the village is done and merely suggestions and advices are given to
the farmers and so the farmers show moderate satisfaction in all the three
markets.
6.1.5: Control of Prices
 A majority of the farmers sell according to the board rates in all the markets,
with a fear that their liscence would be cancelled if they do not do so.
 The prices that are fixed in the Rythu bazaar are done in such a way that they
remain higher than the wholesale prices, to benefit the farmers and lower than
the retail prices, to benefit the consumers.
( 76 )
 The farmers are not involved in the Price fixation. The prices from the wholesale
market are taken daily and with addition of merely 2 rupee, prices are displayed
in the market
 It can be understood that the price fixation mechanism in Rythu bazaar is based
on average prices that are considered from the wholesale markets and fixed with
addition of more 2 rupee.
 The farmer’s bargaining power is nil in mostly all the markets. The few farmers
with the bargaining power are the farmers selling leafy, where there is a little
scope for bargain, as their prices are not displayed on the board.
6.1.6: Status of the Sale of the Produce at the End of the Day
 A majority of them, both in Alwal and Mehdipatnam market tend to finish off the
sales in the same day, however, in Erragadda market, the sales are continued to
the next day as well, for which they store the produce within the market.
6.1.7: Benefits to the farmers in selling in Rythu Bazaar over other Local
Markets/APMCs
 For most of the farmers, the direct one to one interaction with the consumers is
biggest benefit received to them. However other factors like the assured place for
sale, higher prices for the produce also are other benefits received by them.
( 77 )
6.1.8: Major constraints farmers face in Rythu Bazaar
 The farmers face a major problem of space in all the markets. The main reason
for the scarcity of the space is for the fact that there is high domination of the
groups that tend to occupy the sheds in the market, leaving the farmers on the
floors. However, in the Erragadda market, cleanliness is the main issue, as the
dump is not cleaned and left in the market.
6.1.9: The next Preference of Farmers after Rythu bazaar to carry out Business
 The main reason to curb and close down the business in Rythu bazaar would be
because the produce doesn’t sale in the market, especially in the Alwal market
and in Erragadda market because of the development of market within the
vicinity of Rythu bazaar like the organized retails and etc. However, in the
Mehdipatnam market, these factors take a second seat with space being the
major reason for the farmer to close down on the business.
6.2 Findings of Consumers:
6.2.1: Demographic Profile of Consumers
 Majority of consumers visiting the market are male, with a graduation
qualification belonging to the age of 26-45 in Alwal and Erragadda market and
above 55 in the Mehdipatnam market
( 78 )
 Major consumers of income group, 1-2 lakhs, pensioners and 2-4 lakhs visit the
market of Alwal, Mehdipatnam and Erragadda respectively
6.2.2: To examine the Purchase Pattern of the Consumers
 The income group of 1-2 lakhs visits the Rythu bazaar once in a week in the
Alwal and Mehdipatnam market. Whereas in the Erragadda market, it is income
group of 2-4 lakhs, that visit Rythu bazaar twice a week.
 A majority of the consumers prefer the morning hours, both in the Alwal and
Erragadda markets. However, in the Mehdipatnam market, a major of them
prefer to come in the morning hours and also as per the convenience.
6.2.3: To analyze the Major Influencing Factors in Buying Vegetables
 Amongst all the influencing factors, driving the consumers to the market,
availability of the vegetables has been ranked the highest, followed by the
convenience of location. However, the parameters like the price, quality, and the
bargaining power have been given priority lower than the expected.
 The quality of the vegetables, in majority, in the Alwal and Mehdipatnam market
has been rated “good”. However, in the Erragadda market, major respondents
have rated the quality as average and also as poor.
 The prices have been considered as below average in both Alwal and
Mehdipatnam. Whereas, in been rated average in the Erragadda market
( 79 )
 The consumers in all the three markets find the location of Rythu bazaar
convenient enough.
 The availability of vegetables has been rated excellent in the Alwal and
Mehdipatnam market and just good in the Erragadda market.
 The behavior of sellers in all the three market is courteous.

 Out of the surveyed consumers, a majority of them in Alwal have problems with
the sellers not following the board rates, poor parking facilities, untidy market
place etc. In the Mehdipatnam market, many of them do not have any problem,
but however, congested walkways, overly crowded market, especially during the
weekends, and above all, the prices that are not followed by the sellers in the
market. In the Erragadda market, the major problem is regarding the prices, like
in the other two markets.
 All of the surveyed consumers have recommended about the market to others.
( 80 )
CHAPTER 7
SUGGESTIONS
For the Betterment of Farmers:
 The entry of produce (in terms of quantity), from the traders or self help groups
should be limited into the market, so that they do not cut into the sales of the
farmers. Also, the number of groups entering in the market should be restricted
and strictly monitored, so that the space constraint can be controlled to a certain
extent.
 The space allotment system should be more farmers focused, and limiting the
space of the groups to a specified land area (in terms of the limited square foot)
or they can be given only one whole stall, so that adequate spaces for the famer
can be brought about in the market.
Farmers selling vegetables under Groups can be confined to one whole

open sun, on floors. such stall in every market
( 81 )
 The method of allotment of stalls, which follows the principle of first come, first
serve basis should be followed very seriously and regularly monitored as well,
this could help in further smoothening the functions at the Rythu bazaar.
 There could also be attempt of fixation of prices on the basis of quality and
grades. Adequate measures and facilities could be arranged by the
administration in this regard to identify the farmers who get the quality produce
and special stalls with such “Value added agricultural products” can be sold at a
premium prices to the quality conscious consumers.
 For the purpose of price fixation, unlike the present system, where a single Rythu
decide the rate and then communicate to the rest of bazaars, every market could
decide on its own individually, taking the consultation of the farmers group,
could help the farmers in getting good returns irrespective of the quantity of
produce in the market.
 In the market, there could be a provision of a common electronic weighing scale

for the farmers who intend to sale in bulk to the traders or hostel people, so that
the small weighing scale which they are provided with, do not get spoilt or
nonfunctional due to over weighing.
( 82 )
For increasing the Footfalls in the Market
 Attempts of sale of seasonal and exotic vegetables or fruits can be brought about
in the market, to further increase the footfalls. Also, the self help groups can be
assigned to bring such categories of food in the market. This could further help in
reducing the competition between the farmers and SHG’s.
 The major reasons why consumers preferred to shop at the Rythu Bazaars are
quality, freshness, and price. Therefore, the Andhra Pradesh Directorate of
Marketing should highlight these strong points and publicize them to attract
more consumers.
 Farmers can be sensitized on the need to maintain cleanliness and dispose

garbage properly, the absence of which de-motivates consumers from visiting
the Bazaar. These should be very strictly monitored and looked upon
Garbage at the Alwal and Erragadda markets
( 83 )
 The government should take adequate measures to educate both farmers and
consumers about farmers’ markets and explain them the benefits of participating
in the mutual exchange process. Local administration should also enlighten the
farmers to acquaint themselves with the latest marketing strategies and help
them become efficient and self-sufficient farmers.
 Farmers should be trained regularly to preserve their products to keep it fresh.

Hybrid varieties should be encouraged. Research may be conducted to know that
the demand of consumers and availability of products in the market along with
existing rates and projected rate of their products.
( 84 )
CHAPTER 8
CONCLUSION
It is common knowledge that inefficiencies in the agricultural markets result in a
long chain of intermediaries, multiple handling, loss of quality, and other such
problems. The state government of Andhra Pradesh therefore decided on working
towards the creation of a market, called Rythu Bazaars with the principal objective
of helping farmers bring and sell their produce without the involvement of any
middleman or marketing intermediary.
Like the two sides of a coin, Rythu bazaar gets itself with its own pros and cons for
the farmers operating in it. Major benefits of, direct sale, higher prices for the
produce, convenience with the market etc are highly valued by the farmers.
However, constraint of space, unrestricted entry of groups; unhealthy market yard
etc stagger the system and bring out dissatisfaction with the infrastructural and
supervisory services that is provided to the farmers.
For the consumers, Rythu bazaar is the most preferred for the availability of the
produce, convenience of location and the freshness of the vegetables. They continue
to visit the market for the compatibility they share with the sellers in the market.
However, the congested walkways of the market, small parking area, untidy market
etc. are some the problems that de-motivate the consumers from entering the
market
( 85 )
These problems could however, be overcome by the establishment of even stronger
monitoring system to regulate the movement of groups in the market, training
farmers to keep the market clean, taking step forward towards the grading of
produce etc in the market. This could help in further strengthening the functioning
of market and drawing more consumers
With all its limitations, the initiative is however, largely benefitting both
producers and consumers.
( 86 )
Bibliography
Anonymous.(2011).“Direct Agricultural Marketing: Rythu Bazaar in Andhra Pradesh, India”.

Retrieved from http://indiagovernance.gov.in/files/Rythu_edited_Final.pdf
A. Vadivelu.; and B.R. Kiran.(2013). “Problems and Prospects of Agricultural Marketing in India:
An Overview”. International Journal of Agricultural and Food Science. 3(3): 108-118. Retrieved
from https://www.yumpu.com/en/document/view/22665251/5-consumer-satisfaction-and-
preferencespdf-indus-institute-of-
Ahmed Salma.; and Dey Subhendu.(2012). “Comparative study of preference of consumers of

Supermarkets and Rythu bazaar-the farmers’ market of Andhra Pradesh”. International Journal
of Engineering and Management Sciences. 3(3) 2012: 272-279. Retrieved from
http://www.scienceandnature.org/IJEMS-Vol3(3)-July2012/IJEMS_V3(3)5.pdf
Dr. K. Raji reddy.; and Dr. H. Sateesh.(2012). “Direct Marketing of Agricultural Products - A
study of Rythu Bazaars (farmers’ market) in Andhra Pradesh”. International Journal Of Research
In Commerce & Management.3(5). Retrieved from http://ijrcm.org.in/download.php?name=ijrcm-1-
vol-3_issue-5art-25.pdf&path=uploaddata/ijrcm-1-vol-3_issue-5-art-25.pdf
Onianwa.O.; G. Wheelock.; and M. Mojica. (2005). “An Analysis of the Determinants of

Farmer-to-Consumer Direct-Market Shoppers”, Journal of Food Distribution Research 36(1):
130-134
Saibaba, Rudra.; and Vadde Suresh.(2009), “Consumer Satisfaction and Preferences towards
Rythu Bazaar: A Study in Warangal District Andhra Pradesh”. Indus Journal of Management &
Social Science.3 (1):52-63. Retrieved from http://indus.edu.pk/journal.php
Shakeel Ul Rehman.; M. Syed Ibrahim.; and M. Selvaraj.(2014). “Regulated Agricultural

Marketing in India - A Review”. International Journal of Management and Administrative
Sciences (IJMAS). 1(7): 36-45. Retrieved from
http://www.academia.edu/5965753/REGULATED_AGRICULTURAL_MARKETING_IN_INDIA-
A_REVIEW_SHAKEEL-UL-REHMAN
Subhendu Dey.(2012). “Rythu bazaars – A study of the benefits received by farmers”. Asian
Journal of Management Research. 3(1). Retrieved from
http://www.aijsh.org/setup/business/paper167.pdf
Subhendu Dey.(2012). “Key Drivers for Farmers and Consumers of Rythu Bazaars – A study of
the farmers’ markets of Andhra Pradesh”. Asian Journals of Research in Business Economics and
Management.2(6). Retrieved from http://www.urpjournals.com
( 87 )
ANNEXURE -1
Study the Mechanism of Rythu Bazaar
1. Name of the district:
2. Area of Rythu Bazaar:
3. Total No. of Stalls:
5. Timings of Rythu Bazaar Transaction:
5. Allocation of Stalls:
d. For Farmers:
e. For Self Help Groups:
f. For Govt. Agencies:
6. Amenities provided
i. Public Address System for announcing prices for the information to farmers:
j. Are the prices displayed on the Notice Board
k. Availability of:
i. Canteen
ii. Restaurant
iii. Toilets
iv. Parking
v. Rest house for farmers
vi. Drinking Water
vii. Electricity
viii. Fire Extinguishers
ix. Any financial assistance provided to farmers:
x. Cold storage provided:
xi. Training programme conducted , if any:
xii. Security System, if any:
xiii. Bank Facility, if any:
xiv. Complaint Cell Provided:
xv. Sweeping Facilities
7. Total number of Photo Identity Cards issued to Farmers:
a. Mode of practice for issue of PIC: ___________________________
( 88 )
8. Average number of Arrival of vegetable per day: ___________________________
9. Average number of farmers coming per day: ___________________________
10. Average number of consumers coming per day: ___________________________
11. New Initiatives
a. Mobile Rythu Bazaar

b. Supply of vegetables/ Provision to Govt. Hostels:
c. Outlet of Rythu Bazaars:
d. Door to Door Delivery:
12. Monitoring and Governance
a. Key people involved in the monitoring or control:
b. Role of each player:
c. Any training given to them: If YES- how often:
When:
Where:
e. Are they in turn monitored to see if duties are performed effectively?

f. Any attempt of interaction/ any feedback from farmers to improvise on their functions:
g. Any new initiatives:
13. Price Fixation Mechanism
a. key People involved
b. Basics for price fixation- What factors taken into consideration to fix prices:
c. Any advantage to consumers with the price fixation mechanism?
If so what?
l. Any advantage to farmer with price fixation mechanism?

If so what?
m. Whether Prices displayed permanently in Rythu Bazaar:

n. Whether Prices announced through Public Address System:
( 89 )
15. Supply Chain of Rythu Bazaar:
a. How do farmers come to market: (Own transport / Govt.)

If Govt.? Who bears the expenses?
b. whether grading of produce carried:
c. whether Packaging of produce carried:
d. Whether storage facilities provided for produce
( 90 )
ANNEXURE – 2
QUESTIONNAIRE FOR FARMERS
1. Name of the Farmer: 2. Age:
3. Education:
5. Area of land:
5. Cropping Pattern:
6. From how long have they been in Rythu Bazaar?
7. Driving Forces for Farmers to carry out business in Rythu Bazaar:
7.a. Location of Rythu Bazaar:
Convenient Neither Convenient nor in convenient In convenient
7.b. Transportation
a. The existing arrangements are adequate to bring the produce to bazaar:
Highly Dissatisfied Moderately Dissatisfied Moderately Satisfied Highly Satisfied
b. The cost incurred with the bringing of produce to the bazaar.
Highly Dissatisfied Moderately Dissatisfied Moderately Satisfied Highly Satisfied
7.c. Infrastructure:
Highly Moderately Moderately Highly Satisfied

Dissatisfied Dissatisfied Satisfied
Satisfied with the method of
allotment of stalls
Satisfied with the space of
stalls
Satisfied with the provision of
weighing scales
Power Supply.
drinking water facility
Sanitary arrangements
( 91 )
Storage Facility
Satisfied with the Supervisory
Services
 For checking of prices

 For curbing malpractices
in weighing.
 For checking the basic
facilities of the bazaar.
 For checking and
avoiding the entry of
middlemen
Satisfied with the Advisory

Services provided for all
operational requirement
7.d. Control of Prices
Yes No
Are vegetables sold at prices fixed
Are the Prices less than the local retail prices:
Are the prices higher than the wholesale market price
Whether in Price Fixation Committee, farmers are involved in
Price Fixation
Present mechanism of Price Fixation in the Rythu bazaar
7.e. Do farmers sale entire produce on the same day (YES/ NO)
If NO, what do farmers do with the remaining product?
1= Bringing in the next day
2= Selling to vendors or hotels
3= Keeping in the Rythu bazaar
4= Taken for home consumption
5= Selling in the other local market
( 92 )
8. Benefits to Farmers in Selling in Rythu bazaar over other local markets/ APMC’S / Other Whole sale
Markets
a. Higher prices of the produce:

b. Direct selling
c. Assured place for sale:
d. Assured customer for the produce:
e. Proper market regulation
f. Getting help regarding the cultivation Practices
9. What are the major constraints farmers faces in Rythu bazaar
a. Price not profitable

b. Poor Bargaining power
c. Clean market yard
d. Issue of Photo Identity cards
( 93 )
ANNEXURE – 3
QUESTIONNAIRE FOR CONSUMERS
1) Name:
2) Age: Below 20 yrs Below 30 yrs 30- 40 yrs
3) Gender:
Female Male
4) Occupation:
Govt. Private business/institutional Homemaker
5) Education Qualification:
Matriculation Intermediate Graduation
6) Purchasing Pattern
a. Frequency of Purchasing:
Daily Alternate days Once in 3 days Weekly Once
b. Timing of Purchasing the Vegetables at Rythu Bazaar
Morning Afternoon Evening
7) Major influencing Factors for selecting Rythu Bazar

Quality of Produce
Prices
Right Measurements
Freshness of vegetables
( 94 )
Location of Rythu bazaar
Availability of vegetables
High Bargaining Power
8) Quality of Vegetables in Rythu Bazaar
9) Prices of Vegetables in Rythu Bazaar
High Average More than average Generally cheap
10) Convenience of Location of Rythu Bazaar
Convenient Neither Convenient nor inconvenient Inconvenient
11) Availability of vegetables in Rythu Bazaar
12) Behavior of Sellers in Rythu Bazaar
Very Courteous Courteous Indifferent Impolite
13) Any Problems Faced while purchasing in Rythu Bazaar
Yes No
14) Whether Recommend Rythu Bazaar to others?
Yes No
( 95 )

Keerthi Chandak PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Keerthi Chandak PDF

Uploaded by

Copyright:

Available Formats

A Final Project

“A Study on the Mechanism of Rythu Bazaar and Its

ASPEE Agribusiness Management Institute

Place: Navsari A.M.Bafna

Place: Navsari Alpesh Leua

Place: Navsari Alpesh Leua

Place: AABMI, Navsari Keerthi Chandak

Date: 26 June 2014 Reg. No. 04-1162-2012

I express my sincere thanks to our Principal, Dr. AM Bafna and my project

The author is gratified to record her sincere thanks to Dr. A.R.Pathak,

I express my special thanks to my friends Ms Poojitha, Ms. Snehal, Ms.

Place: Navsari Keerthi Chandak

Chapter 1. Industry Profile of Agricultural 3

3.1& 3.2 Title and Objective 17

3.3 Review of literature 18

3.4 Justification of the Study 22

Chapter 4. Research Methodology 23

4.2 Research Design 23

3.7 Limitation of the study 25

Chapter 5. Analysis and Data Interpretation 26

5.3.2.1 Frequency of Purchasing 62

4.3.2.2 Timings of Purchase of Vegetables 63

4.3.3.1 Major Influencing Factors in Buying Vegetables 64

4.3.3.2 Quality Perception by the Consumers 65

4.3.3.3 Prices Perception by the Consumers 66

5.3.3.4 Convenience of Location of Rythu Bazaar 67

5.3.3.5 Availability of Vegetables in Rythu Bazaar 68

5.3.3.6 Behaviour of Sellers in Rythu Bazaar 69

5.3.3.7 Problems in Rythu Bazaar 71

5.2.1.1 Age of the Selected Farmers 36

5.2.1.2 Education level of the Selected Farmers 37

5.2.1.3 Length of Duration of farmers in Rythu Bazaar 37

5.2.2.1 Opinion on Convenience of Location of Rythu 38

5.2.2.2 Satisfaction level of adequacy of Transportation 39

5.2.2.3 Satisfaction level on Cost incurred in bringing the 40

5.2.2.3.1 Satisfaction Levels of Farmers towards the Method 41

5.2.2.3.2 Satisfaction Levels of Farmers towards the Space of 42

5.2.2.3.4 Satisfaction Levels of Farmers towards the 43

5.2.2.3.5 Satisfaction Levels of Farmers towards the 44

5.2.2.4.2 Satisfaction Level of the Selected Farmers towards 47

5.2.2.4.3 Satisfaction Level of the Selected Farmers towards 48

5.2.2.4.4 Satisfaction Level of the Selected Farmers towards 48

5.2.2.4.5 Satisfaction Level of the Selected Farmers towards 49

5.2.2.5.1 Vegetables sold at the Fixed Prices by the Farmers 50

5.2.2.5.2 Prices at Rythu Bazaar is less than the Local Retail 51

5.2.2.5.3 Farmers consulted in Price Fixation 52

5.2.2.5.4 Present Price Fixation Mechanism 52

5.2.2.5.5 Farmers Bargaining Power 53

5.2.3 Status of the Sale of the Produce at the End of the 54

5.2.4.1 Benefits to the farmers in selling in Rythu Bazaar 55

5.2.5.1 Major constraints farmers face in Rythu Bazaars 56

5.2.6.1 The next Preference of Farmers after Rythu Bazaar 57

5.3.1.1 Age status of the Selected Consumers 59

5.3.1.3 Education Qualification of the selected Consumers 60

5.3.1.4 Occupation of the Selected Consumers 61

5.3.2.1 Frequency of Purchasing 62

5.3.2.2 Timings of Purchase of Vegetables 63

5.3.3.2 Quality of the Vegetables Sold 66

5.3.3.3 Prices of the Vegetables Sold 67

5.3.3.4 Convenience of Location of Rythu Bazaar 68

5.3.3.5 Availability of Vegetables in Rythu Bazaar 69

5.3.3.6 Behaviour of Sellers in Rythu Bazaar 70

5.3.3.7 Problems in Rythu Bazaar 71