A STUDY OF EVALUATION OF APMC WHOLESALE

MARKET, VASHI

CONDUCTED FOR BUSINESS STUDIES PROJECT

CONDUCTED BY ADITI MAHALE

XI C
RYAN INTERNATIONAL SCHOOL

24 AUGUST 2019
 INDEX

NO. TITLE

1 ACKNOWLEDGEMENT
2 INTRODUCTION
3 EXEC SUMMARY
4 OBSERVATION
5 CONCLUSION
 ACKNOWLEDGEMENT

I WOULD LIKE TO CONVEY MY THANKS TO SHAHIDA MS, MY

BUSINESS STUDIES TEACHER OF RYAN INTERNATIONAL SCHOOL
, SANPADA , NAVI MUMBAI FOR GIVING ME THE OPPORTUNITY
TO WORK ON THIS PROJECT . I WOULD LIKE TO THANK HER FOR
HER IMMENSE HELP AND GUIDANCE IN THE COMPLETION OF
THE PROJECT . IT IS ONLY DUE TO HER THAT MY PROJECT COULD
BE COMPLETED SUCCESSFULLY.

THIS REPORT IS SUBMITTED AS A PART OF PRACTICAL

EXAMINATION INCLUDED IN THE CURRICULUM OF CBSE FOR
THE YEAR 2019-20.
 INTRODUCTION
Agriculture produce means all produce (whether processed or
not) of agriculture, horticulture, animal husbandry,
pisciculture and forests.The APMCs were established by the
State Govt. for regulating the marketing of different kinds of
agriculture and pisciculture produce. Wholesaling is the selling
of merchandise to anyone—either a person or an
organization—other than the end consumer of that
merchandise. Wholesalers, who are sometimes referred to as
middle agents.The market was set up on 15 January 1977. The
total are occupied by the market is 170 acres . there are 5
wholesale markets inside the APMC market . they are fruit,
vegetables, food grains and pulses, onion and potato market,
sugar and spices. MAPMC was primarily set up to cater to the
marketing needs of the farmers and provide them a platform
for selling agricultural produce in various markets and at
competitive prices. Apart from this, it also provides
infrastructural facilities for marketing of agricultural produce
including maintenance and management of markets. The
commodities under regulation of MAPMC are food grains,
 fruits, vegetables, spices, dry fruits, pulses, edible oil &
oilseeds.

EXECUTIVE SUMMARY

The topic of evaluation is wholesale markets. For this purpose, I

have visited the APMC market in vashi, to question some of the
regular buyers, sellers and traders and noted down my
observations. based on these observations, I have drawn the
conclusions.
An average of 1.3 lakh quintal goods are flooded in this market
daily , stored 3700 godowns , transported by 4500 trucks daily.
Unlike other supermarkets in India where one has to pay retail
price for all the produce, here one can get goods at a whole sale
price. Which means the amount one pays is significantly less hence
many people come here to do their complete shopping for the
week. The market area is very crowded in the morning as this is the
time when farmers from across the state come to sell their
produce. You will also find small time sellers and agents who come
here to buy fresh fruits and vegetables at whole sale price to be
later sold at their own establishments.
There are a staggering 3700 godowns, 1500 commercial blocks, 4
large auction halls, 2 giant warehouses, and 5 large wholesale
market yards. Apart from this, there are big processing centres - a
vapour heat treatment plant, ripening facilities, cold storage
facilities, an export facilitation centre and so on.
 Observations and findings

Source of merchandise
Goods are imported from outside the country as well as within the
country. Rice and wheat are brought in from Haryana, Madhya
Pradesh and Delhi. some vegetables are provided by local farmers
while some are brought from Gujarat, Indore, Banglore. Fruits are
imported from Jammu, New Zealand, Australia. other places that
import them are Nagpur, Solapur, Nashik, Sangli, Kerala, Karnataka,
Ratnagiri, Andhra.

Local market practices

Most of the outsiders who bring their produce in their transport
trucks, deliver their products directly to the market area, without
using the cold storage facilities. Some housing societies also, come
here to buy their weekly grocery in bulk, at very low prices. APMC is a
regulated market - that means that the weighing instruments are
provided by the market.

Linked up business like transport, money lenders, agent

Majority of small farmers sell their produce to money lenders and
traders of their village. The money lenders then act as agents of the
wholesale market. In APMC market, Adhtiyas buy from farmers via
middlemen and then sell it to wholesalers who sell it to retailers
Nature of goods dealt in
Commodities like fruits, vegetables, dry fruits, spices, foodgrains and
pulses are sold in this market. pulses include rice and wheat, fruits
include pomogrnate, apples, oranges, grapes, chiku, mango and banana
and vegetables include lady finger, pumpkin, drumstick, spinach, radish,
brinjal, tomato, onion and potato.

Types of buyers and sellers

Normal wholesale dealers who sell the goods in a wholesale price.
Agents or deal brokers who sell goods in a via source with their
commission cuts. Direct company branches or outlets.
Traders who buy goods in a wholesale rates to sell them in their private
outlets and shops. Normal buyers who want to purchase goods in a
reasonable price for personal usage

Working days
The APMC market remains open from Monday to Saturday. it is closed
on Sundays. The working hours of the market is 10am to 5.30pm

Mode of payment
Some big traders keep swipe machines with them and accept payment
by credit cards or cheques. RTGS is also a popular method of payment in
the wholesale market. other small time sellers still stick cash payments.
But credit purchases are very rarely allowed .
Wastage and disposal of dead stock
Generally, in all the sectors of APMC the production of wastage is very
low. However, in Fruits and Vegetables Market, wastage is up to 35% of
the overall produce as these goods are perishable in nature. Hence, in
order to reduce this wastage, the wholesalers sell them at a lesser
amount compared to the original price.

Facilities available in the market

There are 20 warehouses each having the capacity of storing 30000
tons. There is 1 ripening chambers for fruits having capacity of 7 ton, 1
resting room for farmers and a packaging centre. There are 15 banks , 1
independent police station, 1 dispensary , 4 sanitary points and 2 export
houses.

Seasonal factors affecting business

There are certain produces that are available all round the year, such as
banana, cauliflowers, brinjal, tomatoes and papya. Other products are
seasonal. Like mangoes are only available in summer, citrus fruits and
onions are only available in winter.

Factors determining price fluctuations

The Commission agents update the A.P.M.C merchants about the
prevalent market prices on a day to day basis. The prices in the A.P.M.C
market change accordingly.
 Price varies during the other seasons as per the supply. For eg. If there
is a very heavy rainfall and the crop has damaged, then the prices will
rise. Basically, it is dependent on the demand – supply conditions
Today, due to the emergence of Multi-Commodities Exchange and easy
internet accessibility, the merchants pricing decisions are affected by
the prevalent MCX prices

Advantages of APMC markets:

Ethical practices in selling the produce through open agreement.
It has removed malpractices in weighing the produce.
Use of certified weighs and measures.
It has overcome adulteration.
Quick settlement of disputes

Benefits to farmers:
The farmers get fair price (minimum support price) for the produce
Storage facilities for agricultural produce.
Ethical practices in selling the produce i.e. open auctions and open
agreement.
Immediate payment after disposal of the produce (within 24 hrs )
Conclusions