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INTRODUCTION
1.1 Market Intelligence
There has been transformation in agriculture from the stage of subsistence into market
oriented due to the changes in the economy and the changed farm households
requirements other than the fulfilling the need for the food.
Today’s agriculture has been metamorphosised into market led agriculture rather than the
production oriented one. The
Market led agriculture need entirely different approach, where the market led research
and market extension are two eyes of market led agriculture. In agriculture the pioneering
institute like Tamil Nadu Agricultural University and some other state agricultural
universities and few private institutions have been initiated basic works on market
intelligent and provide market information to the farmers. The results have been reaching
the farmers in the rural areas and create tremendous effect in achieving the objective of
good profit and improvement in the livelihood status of the farmers. However there are
many hurdles in the market intelligence of agriculture which makes it a tedious and
affects the effectiveness of the market intelligence.
The major problems faced were the unavailability of the past data, improper maintenance
of the present data, large variations in the quality of produce, impact of the globalization,
liberalization etc. Perceiving the importance, the Tamil Nadu Government in 12 Five
Year Plan has focused on the capacity building and knowledge sharing among the
farmers on market intelligence, price forecast and providing crop advisory and market led
extension activities through Agri Marketing Intelligence and Business Promotion Centers
1.1 Agricultural Market Intelligence Centre
The most important marketing information input required by a farmer in the current
scenario is the price intelligence. Successful marketing of high value produce like
cotton, chilli and other crops, need to have a fairly good understanding of markets,
prices and consumer preferences by the stakeholders. Most farmers still lack a good
understanding on these aspects. Keeping this fact in mind, an Agricultural Market
Intelligence Centre has been established at Professor Jayashankar Maharashtra State
Agricultural University, Pune the financial support from the Agricultural Marketing
Department, Government of Maharashtra to disseminate timely, comprehensive,
currentand future price information on agricultural commodities for better
decisionmaking by farming community, traders, firms, researchers and policy makers.
Crops covered
Paddy ,Maize ,Jowar ,Bajra, Ragi ,Green gram ,Redgram ,Groundnut ,Soybean
,Sunflower,Castor ,Cotton Chilli,Turmeric, Black gram ,Bengal Gram etc.
1.2 Need for Market Intelligence in Agriculture
1. There is an excess intermediary in the marketing channel, which makes the supply
chainlengthier than the optimum.
2. This makes the system as inefficient and provides less income to the farmers and also
morecostly to the consumer.
3. In order to solve these problems there is a need for clear market information so as to
providethe knowledge and information to the farmers and also to the consumers.
4. It is inevitable that, in almost in all sectors the market intelligence gaining importance.
5. Considerable studies has been made in the market intelligence of the consumable
goods as well as in engineering products, but in case of agriculture and allied sectors
there was no much effort, very little researches have been taken up on the market
intelligence in agricultural sector.
6. Still there are many questions which need to be address in agricultural marketing
intelligence to what extent the available marketing intelligence has been used by the
farmers? What is the market intelligence the traders use for discovering the prices?
How important is the market intelligence for agricultural sector? What will make the
farmers to gain the knowledge of marketing? In order to answer these questions there
is a need for research at the gross root level.
4. Period: It provides information about right time period at which sale of produce
would providehigh returns
1.4 Importance of Market Intelligence
Market intelligence is vital to the success of any organization, being the foundation on
which all marketing is based. Effective use of market intelligence involves the
collection of data, analysis and end use of the information. Market intelligence helps
you to become customer- centric, understand the market demands and consumer
opinions, collect real-time relevant data, boost your upselling opportunities, reduce
risks, capture higher market shares and gives you a competitive advantage. These
benefits are crucial to the success of any business and hence marketintelligence is one
of the most crucial elements in executing effective plans for the prosperity of any
business.
Following are a few points, to understand why market intelligence is crucial to any
business.
3. The marketing intelligence would help farmers in deciding the market as well as
marketing channel.With the help of market intelligence farmers can switch to high
value crops that would generate better returns for them.
6. The policy marking in agriculture marketing also improved with the help of
market intelligence. MI is also served as component of Early Warning Systems for
ensuring food security as it can assistin identifying areas of possible expansions of
marketing activities and can highlight whether pricesare above or below normal
seasonal trends.
2. Research Methodology
2.1 Data collection
Some basic data collection methodologies for Market intelligence are as follows:
A) Primary Data
2. Surveys
Survey research involves a set of questions put together in a concise manner to
gather data from the target market and analyze the same to create valuable market
intelligence. The larger the groupof people, the more reliable are the results. There
are various methods in which surveys can be conducted depending on what
information needs to be collected.
a) Online Surveys - These are the best and one of the most economical methods to
get data in a swiftmanner. Such surveys have been associated with unreliable data,
but with newer tools coming intothe market, this method has become very popular
and reliable, to get real-time data fast. Furthermore, the majority of the target
audience already prefers online communication, hence online surveys are the best
method to gather market intelligence
reliable data orwon’t give you insights about the customer attitudes or buying behavior. In
such a case the observation method provides you with information such as habits of the
customer, buying patterns, customer preferences such as quality or price, etc. Understanding
this information will enable acompany to sell better and make changes in their products
according to the demand.
B) Secondary Data
2. Government records
Government records are a very important and authentic source of secondary data . They
containinformation useful in marketing , management, humanities , and social science
research.
Some of these records include ; census data, health records, education institute records
etc.They are usually collected to aid proper planning, allocation of funds , and
prioritizing of projects.
3. Books
Books are one of the most traditional ways of collection data. Today’s there are books
available for all topics you can of. When carrying out research, all you have to do is
look for a bookon the topic being researched on, then select form the available
repository of books in that area. Books, when carefully chosen are an authentic data can
be useful in preparing a literature review.
2.2Data Analysis:-
The data collected from both primary and secondary was processed and reduced to
simple tables in order to present the matter clearly. The suitable financial statement
analysis techniques were used to draw the correct conclusion. Ratio analysis, which is
most powerful and universally, used technique for the analysis of financial performance
of APMCs in Nashik. Analysis of variance technique is employed to test whether there
is any statistical significance
in sales in different markets.Apart from this,averages and percentages are used. Graphs, maps,
chart and diagrammatic representation of data was suitably employed to highlight the
significance ofthedata.
2.1 Review of Literature
This aspect covers the organizational set up as per provisions made under "Maharashtra
AgriculturalProduce Marketing (Regulation)" Act 1963 and rules 1967.
Krishna and Rao (1983) conducted a study on marketing of agricultural produce in Bihar state.
They found that there was only one regulated market place dealing with both collection of
agricultural commodities and its distribution. These operations were being done throughout the
year; Market charges were less than those before establishment of regulated market. Commission
charges formed 90% of the total market charges. Regarding other amenities, no facilities such as
banking, postal services etc. This was mainly due to lack of space required for providing such
amenities. They also concluded that there was need to establish such markets in other places of
the state, so that the farmers need not travel much for marketing their produce. They also
suggested that the proper infrastructural facilities must be provided to enable the farmers to
transport their produce to the market place at low cost.
Ponnambalam R.(2001) viewed that the efficient management of the market is the main
solution to increase the revenue to the Market Committees. Efficient management leads to the
pricing efficiency, physical efficiency, service facilities, and lesser marketing cost which
automatically increases the financial efficiency of the markets. He further viewed that the
Executives involving in the management of market should be made expert in the management
process by imparting proper training. The administrators of varying interest of Market
Committee should also be trained in the perspective market planning and policy decisions on
effective market regulation.ssz
3.
RESULT AND DISCUSSION
3.1. SELECTION OF MARKET
Definition
Regulated market is a market over which government bodies or, less commonly, industry or
labor groups, exert a level of oversight and control. Market regulation is often controlled by the
government and involves determining who can enter the market and the prices they may charge
A regulated market is one which aims at the elimination of the unhealthy and unscrupulous
practices, reducing marketing charges and providing facilities to producer- sellers in the market.
Any legislative measure designed to regulate the marketing of agricultural produce in order to
establish, improve and enforce standard marketing practices and charges may be termed as one
which aims at the establishment of regulated markets.Regulated markets have been established
by State Governments and rules and regulations have been framed for the conduct of their
business. The basic philosophy of the establishment regulated markets is the elimination of
malpractices
in the system and assignment of dominating power to the farmers or their
representatives in the function of the markets
Objectives
The specific objectives of regulated markets are:
1. To prevent the exploitation of farmers by overcoming the handicaps in the marketing
of their products
2. To make the marketing system most effective and efficient so that farmers may get
better prices for theirproduce, and the goods are made available to consumers at
reasonable prices
3. To provide incentive prices to farmers for inducing them to increase the production
both in quantitative andqualitative terms .
4. To promote an orderly marketing of agricultural produce by improving the
infrastructural facilities.
Commodities Marketed
Fruits: Mango, Guava, Banana, Grapes, Apple, Pomogranate, Orange, Sweet lime,
Lemon, Watermelon, Muskmelon, Amla, Custard apple, Pineapple, Bore, Lichi,
Tamarind.
3.3 Structure of Main Market Yard
Sub- market (Nashik)
3.4 Amenities available in APMC, Nashik
Sr. No Particular Quantity
1 Auction Hall 5
2 Weigh Bridge 1
3 Godowns 4
4 Canteens 1
5 Roads 3
6 Drinking Water 1
7 Post office 1
8 Warehouse 2
9 Toilet 4
10 Security 4
Table gives information about that amenitities provided by the APMC Nashik
like canteens, roads, drinking water, weigh bridge etc.
3. The committee also ensures that the farm to retail price does not reach
unreasonably elevated levels and timely payments are made to the farmers via the
auctions in the APMC markets.
6. The committee issues licenses to the commission agents, weigh men, and
other functionaries.
7. Weighment is properly is done by the weigh men appointed by the
committee.
3.5 Methods of sale in APMC, Nashik
Open auction method
In programmatic, open auction is the official term for real-time bidding (RTB). In an
open auction (open marketplace), inventory prices are decided in real-time through an
auction and any publishes or advertiser can participate. Essentially, publishers make
their media inventory available in an ad exchange at a specific minimum cost per
thousand (CPM) price and advertisers bid against one another for the available media
that they desire. The highest bidder wins the impressions.
If you are looking for the most cost-effective way to buy media with access to the
largest audience, open auctions could be the way to go.
Grading
The grading activities are already performed by the farmer, there are no facilities for
grading in the market yard . Grading is done according to the specifications suggested
by APMC market. Grading for leafy vegetables is done simply by removing diseased
vegetable part. In case of vegetables like cucumber, cucurbits, tomato and such short
shelf life vegetables grading is done by sorting according to size, shape and colour and
also by removing diseased and spoiled vegetables. In case of commodities like potato,
onion and garlic grading is done by sorting into grades of different size and quality.
Benefits to farmers
1. To farmers get the fair prices (minimum prices) for the produce, as the
intermediaries are not able to indulge malpractices.
2. Correct weight of the produce
3. Storage facilities for agricultural produce.
4. Ethical practices in selling the prodocei.e. open auction and open arrangement.
5. Maintenance of daily list of prices of commodities for the benefit of farmers.
6. Immediate payment after disposal of the produce.
3.6 Process of sale the agriculture produce in the APMC market :
All the traders work on a commission basis. They have a fixed ceiling on the amount of
commission that they can charge. This varies from commodity to commodity. The
commission is charged on the selling price of the farmers. They are thus called
commission agents. The purchaser pays a levy of 0.8% on the amount purchased to the
commission agent. This includes a market fee of 0.75%, and a 0.05% maintenance fee
Both the receipts are then forwarded to the market yard office by the commission office.
System of Sale in APMC Market
1. Wholesaler-to-Wholesaler
2. Wholesaler-to-Agents
3. Wholesaler-to-Corporate
4. Wholesaler-to-Consumers
b) Traders: They are the same as Brokers but level of risk is high
c) Adatya's:
3. Wholesaler
4. Retailers
5. Consumers
3.8 Factors Affecting the Muskmelon Price:
The pricing decision is dependent on a number of factors:
1. Main Market : The Commission agents update the APMC merchants about the
prevalent market prices on a day to day basis. The prices in the APMC market change
accordingly.
2. Season and Supply: During the winter season from December to February, the
supply decreases and thus the price rises during this period. 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
3. Brand: There are a lot of brands available in case of grains and this has a major
impact on the prices. There are certain well established brands which enjoy high
recognition and are sold for higher prices.
5. Transport : conditions The transport route and charges also affect the prevalent
prices of the grains.
6. Rains: This is a major factor in determining the total quantity of production, which is
the total supply which determines the price in coordination with the demand.
3.9 Product Handling in Nashik APMC
Product Handling :
In APMC, product Handling is majorly performed manually by laborers. These
laborers work on daily basis and transfer goods and commodity from one katta
(shop) to another katta or from katta to trucks. On the other hand product handling
during trading between APMC and retailers or semi-wholesalers is done in 2 ways:
1. Trucks: Trucks and Tempo's are used as medium of road transportation in
order to cover shorter distances and to reach the interiors of city.
350
Series 1
The above graph it shows that in the financial year , 2016-2021 the arrivals of
Muskmelon is high in May month and lower is in October month.
3.11.2.The Trending Prices of Muskmelon is Given Below
160
140
120
100
80
60
40
20
The above graph it shows that in the financial year, 2016-2021 the prices of Muskmelon is
high in May month and lower in Augest month.
3.12 Various Institutions Involved in Marketing of Muskmelon Commodity
1. Electronic -National Agriculture Market
e-NAM Logo
National Agriculture Market (e-NAM) is a pan-India online trading platform for agricultural
commodities developed by Nagarjuna Fertilizers and Chemicals Limited (NFCL). Launched on
April 14th 2016, it is driving agricultural trade towards the objective of remunerative prices for
farmers by plugging the rampant trade malpractices in mandis.
It is managed by Small Farmers' Agribusiness Consortium (SFAC) under the Department of
Agriculture, Cooperation and Farmers' Welfare.It links agricultural produce market committees
(APMCs) across all states with online trading of commodities.
While the farmer is the primary stakeholder, e-NAM also provides traders, commission agents
and exporters with better business opportunities through a unified and extensive market place.
It aims to help them discover better prices and facilitates for smooth marketing of the products
through mobile and web applications. This is done by providing information and services related
to agri-commodities:
The commodities that are available in various mandis along with their prices The historical
prices of various commodities. Buy and sell trade offers for these commodities Through the
aforementioned information, e-NAM helps farmers bargain a better return for their produce.
themselves with the portal to have The traders and farmers should register access to its services
Objectives of E-NAM
1. To integrate markets, at the state-level and national-level through a common online
platform that would facilitate a pan-India trade in agricultural commodities
2. To streamline marketing and transaction procedures and establish uniformity across all
markets within the country to promote the efficient functioning of these markets
3. To enhance better marketing avenues for both the seller (farmers) and the buyers (trader)
4. To put in place quality testing facilities that would help in better informed biddings by
buyers
5. To promote stability in pricing and ensure the availability of quality products to the end-
consumer.
Function of E-NAM
1. Administration of agriculture marketing is carried out by respective states according to their
agri-marketing regulations as agriculture and markets are state subjects under the Indian
constitution. Each state has its own APMC Act, with varied provisions.
2. The lack of uniformity and compatibility has led to the fragmentation of agricultural
markets, where each state functions as a separate market. Every state is further divided into
several market areas. These separate areas formed will be administered by a separate
Agricultural Produce Marketing Committee (APMC), which imposes its own marketing
regulation.
3. This fragmentation of markets even within the state level hinders the free flow of
agricommodities between different markets. Multiple handling of agri-produce and multiple
levels of mandi charges lead to escalated price for the consumers without equivalent benefits for
the farmers. These challenges are addressed by e-NAM by creating a unified market via online
trading platform both at the state and at the national level.
2. Maharashtra State Agricultural Marketing Board (MSMB)
The Maharashtra State Agricultural Marketing Board (MSAMB), Pune was established on 23rd,
March 1984, under section 39A of Maharashtra Agricultural Produce Marketing (Development &
Regulation) Act, 1963. MSAMB has done pioneering work in the field of Agricultural Marketing
in the State and achieved success in various areas. MSAMB is having an important role in
developing and coordinating agricultural marketing system in the State of Maharashtra .
1. The state agricultural marketing boards under the control of provincial Governments are
implementing respective schemes and programmes for development of market infrastructure
including wholesale markets.
2. The National level autonomous body acting as association of State Agricultural Marketing
Boards, popularly known as COSAMB (National Council of State Agricultural Marketing
Boards) is actively engaged in coordinating activities and mutual sharing of meaningful
information between member Boards.
3. It has the mandate of coordination with international agencies, inviting technologies and
systems for improving agricultural marketing in the country.
3.13 Application of Market Research in Farming Effective Strategies
1. Group Marketing
a. Retail chains like Wall Mart, Reliance, Spencer etc.do backward linkage and forward
linkage
b. Enter into contract farming mode, providing advisory services ,quality inputs and assured
market for the produce and also assured price to the farmers for their produce
c. Provide safe food to the consumers, by promoting good agricultural practices(GAP) at the
pre-harvest stage(insecticide and pesticide residue)
d. Save the farmers from being exploited by unscrupulous middlemen
3. Direct Marketing
a. In regulatory marketing system, the state APMC Acts did not permit direct purchase form
the farmers’ field and the farmers were supposed to come to the market yard for selling their
produce
b. This was discouraging processing, export and contract farming etc.
Now after there forms direct marketing is permitted in the states which have amended their
state acts as per Model Act of the central Government.
c. Under direct marketing provision, a trader, exporter, processor can directly buy from the
farmers and enter into buy back arrangement with them.
d. Now under direct marketing a number of farmer markets have been set up in different
states. These markets facilitate direct linkage between farmers and consumers and other end-
users.
e. This is a model to eliminate middlemen and improve farmer’s share in consumer’s
rupee.
4. Processor Marketing
a. A processor of a certain produce need certain processible varieties of certain quality and
quantity with assured supply through out the year/season.
b. A processor, of necessity, has to go in for buy-back arrangement
c. Those states which have amended their APMC Acts (17till now) very much promote and
encourage processing
d. Processing leads to crop diversification and better income to farmers.
5. Spot Marketing
a. As potex change (say National Spot Exchange) provides an electronic platform, an
alternative to regulated marketing, for online transaction throughout the country( like stock
market)
b. Spot Exchanges like NSE, NCDEX Spot exchanges etc have now outlets in different market
yards.
c. Thus the farmer is not confined to a particular market yard or not under compulsion to sell
through only a particular commission agent
6. Export Marketing
a. Exporters directly procure from the farmer field
c. Set up their own procurement centers and other infrastructure like storage, cold storage
facilities in the production pockets.
d. Thus provide the farmers access to markets, marketing infrastructure, quality control,
remunerative price for their produce etc.
7. Futures Market and Commodity Exchanges
2. The total arrivals of financial year 2017 is 11,370 quintals and average price is
Rs.947.5.
3. The total arrivals of financial year 2018 is 6,238 quintals and average price is
Rs.519.8.
4. The total arrivals of financial year 2019 is 8,854 quintals and average price is
Rs.737.8.
5. The total arrivals of financial year 2020 is 9,434 quintals and average price is
Rs.786.1.
6. The financial year 2016-2020 the arrivals of Muskmelon is high in May month, and
7. The financial year 2016-2020 the Average Prices of Muskmelon is high in May month
Agriculture committee is very helpful to farmers and single price based system. As the
shortage of supply of agricultural commodities which increases in prices, so productivity
need to increases. Improvements in the management of supply chain would lead to overall
growth of economy.
The APMC, Nashik is an semi government organization which works for the
marketing of agricultural produce. All the facilities are provided to the buyers and sellers
in the market yard. The trend of arrivals and prices depends on the demand and supply of
agricultural produce. When the arrivals are high the prices are low and when the arrivals
are low the prices are high. All the government policies are implemented and provided to
the buyers and sellers in market yard.
5. EXPERIENCE GAINED :
strategies.