Impact of Emerging Marketing Channels in Agricultural Marketing in Uttar Pradesh

138 Pages·2015·1.01 MB·Indonesian

Study No. 133 Publication No. 180

Impact of Emerging Marketing Channels in
Agricultural Marketing in Uttar Pradesh
Benefit to Producers Sellers and Marketing Costs and
Margins of Potato and Aonla

Prof. Ramendu Roy
Sri. D.K. Singh & Hasib Ahmad

2011

Agro-Economic Research Centre
University of Allahabad

Allahabad-211002

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Preface

In the era of globalization and liberalization, the marketing of agricultural produces and its
processed products have huge potential to earn the foreign exchange. At present the export of
agricultural produces and its processed products from India has a very meager share in
comparison to other developing countries. The share of India was about 1 per cent of total export
quantity of agricultural produces and its processed products of the world. After advent of green
revolution, the production of wheat and paddy has increased manifold in the country. It has
created tremendous problems of its storage. The farmers are still bound to sell their agricultural
produces just after its harvesting at un-remunerative prices. The prices of inputs of crops have
been increasing year by year more than market prices of commodities in corresponding period
and on account of this the farmers are getting undue returns. Prior to independence, the farmers
were very much exploited by intermediaries. Since all the markets were unorganized, so the
farmers were exploited by different type of traders to pay unreasonable price of commodities to
producers. In spite of this a number of unauthorized deductions in different names were also
common from the sold quantity of commodities. The defective measure was also applied during
the weighing of commodities. In order to elimination of foul activities and operations of
intermediaries in unorganized market the Government of India had framed out a legislation
namely “Agricultural Produce Market Act in 1960s” with a view to regulate the marketing of
agricultural produces in the interest of producers. This Agricultural Produce Marketing Act was
enforced in 1963 across the country to safeguard the interest of farmers. The sale through auction
method, reliable weighing, standardized charges, availabilities of amenities in market yard are
basic ingredients to protect the farmers from exploitation of market functionaries in the regulated
market. In spite of these benefit, there were a number of drawbacks prevailing in the regulated
markets which were against the interest of farmers. The Government of India had appointed and
constituted committees and commissions to the study the condition of agricultural regulated
markets across the country and had invited the suggestions from them for improving the
efficiency of these markets. The Inter Ministerial Task force had recommended the formulation
of a Model APMC Act 2003. The aim of a Model APMC Act 2003 was to complete
transformation of agricultural marketing in the country to make growth oriented market. The
Model APMC Act was finalized in 2003 by Government of India and asked all the State

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Governments to implement this act in their respective states. A Model APMC Act 2003 has been
implemented in almost all the states and union territories of country but U.P. is exceptional
where the Model APMC Act 2003 has not been implemented yet. This study on “Impact of
Emerging Marketing Channels in Agricultural Marketing in Uttar Pradesh” Benefit to Producers
and sellers and Marketing Costs and Margins of Major Agricultural Commodities was allotted to
this centre along with other ARECs of the country by the Ministry of Agriculture, Government
of India. Institute of Economic Growth, New Delhi is the coordinator of the study.

As per guidance of coordinator of the study, two horticultural crops namely, potato and aonla
have been selected from Agra and Pratapgarh districts respectively. Pepsico and Satkar Food
Products for potato and aonla were selected respectively as Emerging Marketing Channel. These
two processing units had purchased potato and aonla directly from producers.

The main finding of this study is that the producers had gained better prices from Pepsico and
Satakar Food Products than that sold through Traditional Marketing Channels. The marketing
costs were also not paid by producers under EMC in regulated markets.

This study had been planned and conducted by Sri Hasib Ahmad and Late Sri G.Q. Abid of the
centre under overall guidance of Prof. P.N. Mehrotra Ex. Hony. Director of the Centre. The draft
of report of this study has been done by Sri. D.K. Singh Ex. Research Officer and Sri Hasib
Ahmad of the Centre under my supervision. Smt. N. Nigam and Sri. Ovesh Ahmad of the Centre
have also given full support in the completion of the study. I am thankful to all of them. I am also
grateful to Dr. Ananada Vadivelu and Dr. Nilabja Ghosh, Institute of Economic Growth, New
Delhi for their valuable guidance to carry the study in scientific way. I am extremely thankful to
all the government officials for their valuable help and cooperation during the collection of data
for the study. I would like to record my sincere thanks to sample farmers, traders, retailers and
consumers who had given correct data for the study without any hesitation and ambition.

I am also very much thankful to secretary of APMC Agra, Hathrash and Pratapgarh districts for
their full cooperation during the visit of research staff of the centre in regulated markets.

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I would like pay my sincere thanks to Sri Pawan Gupta, Area manager of Pepsico and Sri Hausla
Prashad Singh owner of Satkar Food Products of Pratapgarh for their invaluable support.

Comments and suggestions for improvement of the study are most welcome and will be thankful
by acknowledged.

Agro-Economic Research Centre
University of Allahabad
Allahabad (Ramendu Roy)
Prof. & Hony. Director

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Credit

Prof. Ramendu Roy Project Director
Prof. P.N. Mehrotra Project Planning and Guidance
Ex. Hony. Director

Shri D.K. Singh Drafting of the Report
Shri Hasib Ahmad -Do-

Shri Hasib Ahmad Field Survey, Tabulation & Analysis of Data
Late Shri G.Q. Abid -Do-

Smt. N. Nigan Data Entry
Shri Ovesh Ahmad -Do-

Shri Ovesh Ahmad Typing of the Report

Smt M. R. Kesarwani Secretarial Services
Shri S.D. Singh -Do-

Shri H.C. Upadhyay Photocopy of the Report
Sri. Raju Kumar Support Service
Smt. Ramsanwari -Do-

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Contents

Preface 2 - 4
Credit 5
Contents 6
List of Table 7 – 9
List of Boxes 10
List of Maps 10
List of Abbreviations 11

Chapter – 1 Introduction 12 – 22
Chapter – 2 Agricultural Marketing Reforms Traditional 23 – 38
and Emerging Marketing Methods

Chapter – 3 Sampling, Methodology and Socio-Economic 39 – 91
Profile

Chapter – 4 Comparison of Benefits and Constraints for 92 – 124
Agents Trading in Traditional Marketing
Channel and Emerging Marketing Channel

Chapter – 5 Summary and Conclusion and Policy 125 – 137
Implication

References 138

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LIST OF TABLES

Table No. Title of Tables
Chapter-2
Table-2.1 Division –wise break-up of APMC in Uttar Pradesh
Table-2.2 Classification of APMCs during (2009-10)
Table-2.3 Details of Different type of development Activities in U.P.

Chapter-3
Table-3.1 Share of Uttar Pradesh in Area and Production of Potato and Aonla
(2008-09)
Table-3.2 Selected Socio-Economic Indicators: Agra, Hathrash, Pratapgarh
and Uttar Pradesh
Table-3.3 Economic Classification of workers of Agra District in U.P. as per
Population Census
Table-3.3 A Economic Classification of Workers of Hathrash District in U.P. as
per Population
Table-3.3 B Economic Classification of Workers of Pratapgarh District in U.P.
as per Population Census 2001
Table-3.4 Land use Pattern: Agra (2006-07)
Table-3.5 Block-wise number and area of operational holding in Agra district
(2000-01)
Table-3.6 Block Source-wise Area Irrigated in Agra district (2006-07)
Table-3.7 Block-wise Cropping Patter of Agra District, Uttar Pradesh
Table-3.8 Number of towns and villages Electrified in Agra district of U.P.
2009.
Table-3.9 Sector-wise Use of Electricity in Agra District of U.P. 2008-09
Table-3.10 Road Length by Type of Road in Agra, districts (2006-07)
Table-3.11 Sector-wise Total and per capita District Income (at Constant 1999-
2000 Prices): Agra
Table-3.12 Sector-wise Total and per capita District Income (at Current Prices):
Agra
Table-3.13 Number of Rural Families under Poverty line in Agra district
Table-3.14 Profile of selected Block Khandauli, District Agra, U.P.
Table-3.4A Land use Pattern: Hathras (2006-07)
Table-3.5 A Block-wise number and area of operational holding in Hathras
district (2000-01)
Table-3.6 A Talukawise Source-wise Area Irrigated in Hathras district (2006-07)
Table-3.7A Block-wise Cropping Pattern of Hathrash District, Uttar Pradesh
Table-3.8A Number of towns and villages Electrified in Hathras district of U.P.
2009.
Table-3.9 A Sector-wise Use of Electricity in Hathrash District of U.P. 2008-09

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Table-3.10 A Road Length by Type of Road in Hathras districts (2006-07)
Table-3.11A Sector-wise Total and per capita District Income (at Current Prices):
Hathrash
Table-3.12A Sector-wise Total and per capita District Income (at Current Prices):
Hathrash
Table-3.13A Number of Rural Families below Poverty line: Hathrash
Table-3.14A Profile of selected Sadabad Block of Hathrash (Mahamaya Nagar)
District U.P.
Table-3.4 B Land Use Pattern district Pratapgarh 2006-07
Table-3.5B Block-wise number and area of operational holdings in Pratapgarh
(2000-01)
Table-3.6 B Taluka-wise Source-wise Area Irrigated in Pratapgarh district (2006-
07)
Table-3.7B Block-wise Cropping Pattern of Pratapgarh District, Uttar Pradesh
Table-3.8 B Number of towns and villages Electrified in Pratapgarh district of
U.P. 2009.
Table-3.9 B Sector-wise Use of Electricity in Pratapgarh District of U.P. 2008-09
Table-3.10 B Road Length by Type of Road in Pratapgarh districts (2006-07)
Table-3.11B Sector-wise Total and per capita District Income (at Constant
Prices): Pratapgarh
Table-3.12B Sector-wise Total and per capita District Income (at Current Prices):
Pratapgarh
Table-3.13B Number of Rural Families below Poverty line: Pratapgarh
Table-3.14B Profile of selected Block Magroora and Sadar District Pratapgarh,
U.P.
Table-3.15 Selected Sample district Households from Khandauli Block of Agra
District, Sadabad Block from Hathrash, Sadar and Mangroora
Blocks from Pratapgarh District.
Table 3.16 Socio-Economic Characteristics of Sample
Table 3.17 Socio-Economic Characteristics of Sample
Table-3.18 Devices Used for Storage and Processing of Produce
Table-3.19 Land Holdings and Irrigated Area of Selected Households
Table-3.20 Cropping Pattern of the Selected Households (Area in ha.)
Table-3.21 Major Potato Growing (Area) District in U.P.
Table-3.22 Major Potato Producing (Production) districts in U.P.
Table-3.23 Index Number of Wholesale Prices of Potato (Monthly Average:
Base 1994-95)
Table-3.24 District-wise area (Hectares) under Potato 2008-09
Table-3.21 A Major Aonla Growing (Area) District in U.P.
Table-3.22 A Major Aonla Producing (Production) districts in U.P.
Table-3.23A Index Number of Wholesale Price of Aonla (Monthly average base
1994-95)
Table-3.24 A District-wise area (Hectares) under Aonla 2008-09
Table-3.25 Area, Production and Productivity of Potato
Table-3.25 A Area, Production and Productivity of Aonla

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Table-3.26 Average Domestic Price of Potato (2006-09) in major APMCs in U.P.
Table-3.26A Average Domestic Price of aONLA (2006-09) in major APMCs in
U.P.
Chapter-4
Table-4.1 Distribution of operational Land Holdings (Net Operated Area %)
Table-4.2 Characteristics of Selected Households as per Land Holding
Classification
Table-4.3 Modern Practices and Methods of Cultivation of Selected
Households
Table-4.4 Comparison of Labour Hiring and Labour Cost
Table-4.5 Economics of Cost of Cultivation of Potato and Aonla (Rs/ha)
Table-4.6 Technology Used for Crop Cultivation
Table-4.7 Details of Production of Potato and Aonla
Table-4.8 Details of cost of Production Net return (Potato and Aonla)
Table-4.9 Price Spread and Marketing Cost for Potato (2009)
Table-4.10 Price Spread and Marketing Cost for Aonla (2009)
Table-4.11 Benefit Cost Ratio for Potato and Aonla
Table-4.12 Reasons for Preferring the Marketing Channel
Table-4.13 Per Quintal Post harvest Losses
Table-4.14 Reasons for post harvest loss (Percentage of multiple responses)
Table-4.15 Reason for Preferring the Marketing Channel
Table-4.16 Transaction Cost-Enforcement Costs
Table-4.17 Perception on services provided by different agencies
Table-4.18 Access to Inputs from the Buyer
Table-4.19 Perception of the Market Infrastructure
Table-4.20 Perception of the Farmer on other Market Intermediaries, Price
Spread and Constraints in Agricultural Marketing
Table-4.21 Marketing Rabi Potato in APMC, Agra (2009)
Table-4.22 Details of arrival pattern of aonla in the market
Table-4.23 Marketing of Aonla in APMC Pratapgarh (2009-10)
Chapter-5
Table-5.1 Price Spread and Marketing Cost for Potato (2009)
Table-5.2 Price Spread and Marketing Cost for Aonla (2009)
Table-5.3 Benefit Cost Ratio for Potato and Aonla

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List of Boxes

Boxes No. Title of Boxes
Box. 4.1 Perception about farmers on Marketing of Potato in Khandauli
Block, Agra
Box. 4.1A Perception about farmers on Marketing of Aonla in Sadar Block,
Pratapgarh
Box. 4.2 Perception about the traders operating in APMC, Navcen, Fruits and
Vegetables Markets, Sikandra, Agra for purchase of potato.
Box. 4.2A Perception about the traders operating in APMC, Pratapgarh for
purchase of Aonla
Box. 4.3 APMC Naveen Fruits and Vegetables Market, Agra
Box. 4.3A APMC, Krishi Utpadan Mandi Pratapgarh
Box. 4.4 Potato Marketing Through Pepsico
Box. 4.4A Perception about a Processing Unit of Aonla, Selected as Emerging
Marketing Channel
Box. 4.5 Retailers in Traditional Marketing Channel
Box. 4.6 Prefence of Consumer on Retail Outlets

List of Maps

Maps No. Title of Maps
1 Uttar Pradesh
2 Agra District
3 Hathras District
4 Pratapgarh District
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