ASIAN ACADEMIC RESEARCH J O U R N A L O F S O C I ... quality products, price and distribute them to the consumers. Due to the problems neither the consumers are benefited nor do the

AARJSH VOLUME 1 ISSUE 5 (NOVEMBER 2012) ISSN : 2278 – 859X

Asian Academic Research Journal of Social Sciences & Humanities

www.asianacademicresearch.org

115

A Peer Reviewed International Journal of Asian

Academic Research Associates

AARJSH

ASIAN ACADEMIC RESEARCH

J O U R N A L O F S O C I A L

S C I E N C E & H U M A N I T I E S

MARKETING PRACTICES OF PADDY CULTIVATORS- A CASE STUDY

DR. K. RAMA MOHANA RAO*; DR. I. SAI PRASAD**

* Professor

Department of Commerce and Management Studies

Andhra University,

Visakhapatnam, A.P.

**Associate Professor

Department of Management Studies

S.V.K.P & Dr. K.S. Raju Arts and Science College, Penugond W.G. Dt. A.P

.

ABSTRACT

Paddy is one of the principal crops of the country. The farmers of the paddy are

facing many marketing problems. They are unable to realize reasonable returns to

their investment and efforts due to many problems. Some of them are resorting to the

extreme step of committing suicide. In order to save the formers from the disastrous

situation it is necessary to understand the issues at the gross root level and initiate

necessary policy measures to support paddy farmers. This paper aims to analyze the

problems in product development process and marketing of paddy through empirical

study. The findings of the study will be useful to the policy makers to understand the

key problem areas and to support the farmers in their marketing operations to realize

fair returns by way of satisfying the consumers.

Key Words: Agricultural Marketing, Paddy, Seeds, Fertilizers and Pesticides,

Pricing, Distribution, Storage, Marketing information.

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1. Introduction

Agriculture plays a dominant role in the economic development of a country

by providing food for the growing population, raw material and markets for

expanding industries, employment avenues and capital formulation for further

economic, social progress and growth (D. Nageswara Rao-2002).

Food grains

constitute the major part of the agriculture production in India. The production of food

grains was 50.8 million tonnes in 1950-51 which was increased to about 230 million

tonnes in 2008-09. In terms of cropped area paddy is the single most important crop

of India, recording for almost one –fourth of the national crop acreage. It is the most

favoured crop of the Indian farmer if the farmer has access to enough water, even in

low and medium rainfall regions. Nearly 30 per cent of the country’s total irrigated

acreage is devoted to paddy (B.D. Dhawan - 2001).

The agricultural marketing which provides important linkage between the

farm production sector and the non-farm segment of the economy plays a critical role

in improving the economic conditions of farming population and converting the

substance economy into a dynamic and rapidly growing economy (S.S Acharya -

2004). The performance of marketing system, which depends on the structure of the

market and conduct of market functionaries, has, therefore, remained under

continuous government scrutiny. The governments at both the centre and state level

took several initiatives and measures to influence the structure and conduct of the

agricultural produce markets and in turn, influenced the marketing environment for

Indian farmers.

Marketing of agricultural products has been identified as one of the serious

problems faced by the farmers in the country particularly, marginal & small size

farmers and medium size farmers. The efforts of various government and non-

government organizations in solving marketing problems of the agricultural sector are

not adequate enough as the problems are still continuing. The farmers are unable to

produce quality products, price and distribute them to the consumers. Due to the

problems neither the consumers are benefited nor do the farmers gaining benefit out

of the process. The middlemen are grabbing the fruits.

1.1 Objectives

The broad objective of the study is to analyze marketing problems of the

paddy cultivators in selected districts of Andhra Pradesh. The specific objectives are:




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i. to analyze product development process, and problems of paddy cultivators, ii. to

study pricing and distribution issues of the paddy farmers and iii. to analyze

marketing communications to farmers of the paddy.

1.2 Research Methodology

An opinion survey was conducted to know the marketing operations of paddy

farmers. Andhra Pradesh state which is known as Rice Bowl of India was selected for

the study. Within the state of Andhra Pradesh, two districts such as East and West

Godavari Districts were selected for intensive study by taking into consideration, the

volume of production of paddy and land used for the crop. The farmers of paddy are

categorized into three groups viz., marginal & small size farmers, medium size

farmers and large size farmers. The farmers holding land of below five acres are

grouped under marginal & small farmers. The farmers with land holding varied

between 5 acres and 25 acres are the medium size farmers. The farmers having land

holding of more than 25 acres are large size farmers. A sample of 600 farmers divided

equally among the three groups and in two districts was selected for the study.

Questionnaire was the research instrument used. The researchers conducted personal

interviews with farmers. Adequate care was taken to minimize field errors

2. Respondents’ Profile: The profile of the respondents is analyzed by using five

variables such as age, education, income, land holding and family size. The age of the

respondents varied between 21 years and above 61 years. The mean age of total

respondents is 46.43 years. The study revealed that the marginal & small size farmers

are relatively young compared to medium and large size farmers. Out of the total, 14

per cent are illiterate persons, 42.3 per cent had primary education, 29 per cent passed

SSC/Matriculation. Only 14 per cent of the respondents are either graduates or post

graduates. The large group of illiterate persons is from the group of marginal & small

size farmers. And the majority of graduates are from the group of medium size

farmers, where as major group of post graduate persons are from the large size

farmers’ category.

The land holding of the respondents varied from 0.5 acre to about 50 acres.

The average land holding of the medium size farmers was 14.09 acres. In case of

large size farmers the average land holding was 27.71 acres. The study further reveals

that 84.5 per cent of the respondents from marginal & small size farmers’ category are




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having only wet land while 15.5 per cent of the marginal & small size farmers possess

wet as well as dry land. In the medium size farmer category 64.5 per cent respondents

have only wet land holding while 35.5 per cent respondents have the combination of

wet and dry land. In the large size farmers category 28.5 per cent are having only wet

land, while 71.5 per cent of them possess wet as well as dry land. It can be inferred

from the above that the majority of the large size farmers and sizable group of

medium size farmers are having a combination of wet and dry land while the vast

majority of marginal & small size farmers having only wet land.

The income of the respondents varied between below Rs 50,000 and above

Rs.4 lakh. The income of the marginal & small size farmers varied between Rs.8,000

and Rs.92,000. The income of the medium size farmers from agriculture varied

between Rs.1,35,000 and Rs.3,38,000. The income of large size farmers from the

source varied between Rs.2, 55,000 and Rs.5, 12,000. The average annual income of

the respondents from the agriculture source was Rs.1.97 lakh per annum. In the case

of marginal & small size farmers the average annual income was Rs.0.36 lakh while it

was Rs.1.96 lakh in the case of medium size farmers. The average income of large

size farmers was Rs.3.60 lakh per annum.

3. Product Development (paddy cultivation process and problems)

Product development means cultivation process of paddy for the purpose of

the study. Various issues starting from procurement of seeds to the generation of

output have been analyzed to study the processes and problems of the farmers in

paddy cultivation. Paddy, of course, as much as any other major crop, has been

benefited from the resulting inputs (Robert. F Chandler, Jr. - 1975)

3.1 Sources of Procurement of Seeds: The sources for the procurement of seeds are

self production, co-farmers, government agencies and open market. Out of the total,

about 39 per cent of the respondents procure seeds from co-farmers, 23.3 per cent

procure from the government agencies and 29 per cent develop seeds from their own

resources. The study further reveals that most of the marginal & small size farmers

are depending upon co-farmers for the seeds, while large number of medium size

farmers procures seeds from government agencies and co-farmers. The majority of

large size farmers use their own resources for the generation of seeds.

3.1.1 Quality of Seeds: Seeds are the most critical input for cultivation process. The

quality of seeds influences greatly the quality as well as the quantity of the output.




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Recognizing the importance of providing accessibility of quality seeds to the farmers

the Government of Andhra Pradesh promoted Andhra Pradesh State Seeds

Development Corporation (APSSDC) in March 1976 under the Companies Act, 1956

(http://apssca.ap.nic.in/).

The APSSDC has a quality control wing for ensuring the quality of the seeds

produced and sold by the corporation. The corporation has also three fully equipped

Quality Control Laboratories, for testing the seeds, at Jeedimetla, Vijayawada and

Nizamabad. Quality seeds are primarily supplied to the farmers of Andhra Pradesh

besides other states like Maharashtra, Madhya Pradesh, West Bengal, Orissa, Bihar,

Uttar Pradesh, Rajasthan and Karnataka in particular. The corporation supplies seeds

to the farmers through dealers, Primary Agricultural Co-operative Societies (PACS),

Integrated Tribal Development Agencies (ITDA) and Agricultural Market

Committees (AMCs). The Corporation has also created dealers network in the state.

More than 700 seed dealers are appointed for distribution of seed in all the districts.

The corporation adopted policy of distribution of seed on "Cash & Carry" basis from

the year 1995-96. In addition to dealers and Agriculture Market Committees (AMCs),

the corporation establishes about 60 to 70 temporary sale counters of its own in

various districts to ensure timely supply of seeds to farmers in both Kharif and Rabi

seasons.

APSSDC is also entrusted with the distribution of seeds under contingency

program on subsidy basis by the Government of Andhra Pradesh. The subsidy is

passed on to marginal & small and medium size farmers as per the procedure

formulated by Commissioner and Director of Agriculture.

The study revealed that 34 Per cent satisfied with the quality of seeds. The

majority of the respondents (66 Per cent) expressed their dissatisfaction over the

quality of the seeds available to them. The medium size farmers are large in number

among dissatisfied followed by marginal & small size farmers. Quality of seeds is one

of the serious problems faced by the paddy cultivators. The poor quality of seeds

affects the quantity and quality of the output. The farmers are not having technical

knowledge and equipment to test. They understand the quality deficiency only by

observing the growth of the crop and output quality and quantity. These problems

need to be addressed to save the farmers from the problems and exploitation of seed

sellers. A mechanism to certify the quality of seeds is necessary. The certifying

http://apssca.ap.nic.in/




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agency must be held responsible for any defects in seeds and the farmers be

compensated if something goes wrong due to poor quality of seeds when certified

seeds are used.

3.2 Use of Fertilizers: Fertilizers basically can be classified as Inorganic and Organic

(Bio- fertilizers) fertilizers (ICAR – 2006).

3.2.1 Inorganic or Chemical Fertilizers: The main difference between a chemical

fertilizer and an organic fertilizer is that the chemical ones come out of a lab and the

organic one comes from living beings. A chemical fertilizer is synthetically prepared

to include the vital nutrients that are necessary for the plant growth process. All

chemical fertilizers contain the normal NPK requirement and any other nutrients as

required. One of the benefits of chemical fertilizers is that it is custom-made for the

requirement. If soil is rich in nitrogen and potassium, chemical fertilizers provide the

option of using phosphorus-rich fertilizers. While organic fertilizers have a low NPK

ratio, the chemicals have very high ratio of the same. If it is a very unproductive soil,

chemical fertilizers are useful. Organic fertilizers may take more time to release the

nutrients as it needs some microbial activity to get them working. Chemical fertilizers

get cracking instantly and release the essential nutrients into the soil.

3.2.2 Organic or Bio Fertilizers: Organic fertilizers are made from naturally

occurring substances, and include by-products or waste remains of the animals. Dead

plants and dead animal remains are also often used as fertilizers in organic farming.

They are naturally chemical-rich and contain high amounts of nitrogen, phosphorus

and potassium (NPK). Chemical fertilizers are man-made and organic fertilizers are

made by natural processes. Chemical fertilizers kill the microorganisms in the soil. It

is one of the advantages of organic fertilizers that they boost microbial activity in the

soil. These microbes help in de-generating the complex compounds present in the

organic fertilizers. Overuse of fertilizers is often a problem as excess nutrients are

neither good for the overall composition of soil nor are they good for the plant.

Organic fertilizers may also have a problem of overuse, but it is a slow nutrient

releasing material, so the nutrients will anyway take some time to get absorbed. It is

one of the greatest advantages of organic fertilizers that they are easily available in

nature, in plenty and with almost no adverse effect on the environment. Chemical

fertilizers on the other hand might have the problem of nitrogen components seeping

into groundwater streams or otherwise into the nearest lake or river and causing

http://www.buzzle.com/articles/plant-growth-process-how-does-a-plant-grow.html

http://www.buzzle.com/articles/organic-farming/




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pollution. Organic fertilizers are much cheaper compared to their chemical

counterparts as they are easily available in nature and only require packaging.

Chemical fertilizers need extensive research and production work making them more

expensive.

Department of Agriculture, Government of Andhra Pradesh is promoting

organic farming in the state by implementing different schemes viz.,

Varmicomposting, Green manuring, Bio-fertilizers and certified organic farming

(http://agri.ap.nic.in/Ferilizers5.htm). Use of excessive agrochemicals in agriculture

has led to the changes in physical, chemical and biological properties of soil,

adversely influencing the plant development and decreased crop yield. This

phenomenon is known as soil sickness. Government has been supporting the organic

farming and also giving subsidies to the organic farming because organic farming is

eco- environment friendly, economically viable and ensure better yield to the farmers.

The study revealed that 60.5 per cent use only inorganic fertilizers and 30.3

per cent use both organic and inorganic fertilizers. Only a few among the three

categories of respondents use only organic fertilizers.

3.2.3 Problems in Procurement of Fertilizers: Paddy farmers face problems in the

procurement of fertilizers. The problems include adulteration, non availability of

required quality composition of inputs, high price, non availability, unreliable brands

and lack of adequate credit facility. The study revealed that high price is the major

problem faced by the majority of respondents (74.5 per cent) followed by non

availability of required quantity of fertilizers whenever required (59.8 per cent),

composition of inputs (51.2 per cent), unreliable brands (50.2 per cent), Credit facility

(48.8 per cent), non availability of fertilizers (46.5 per cent) and adulteration (40.2 per

cent).

3.3 Use of Pesticides: The study revealed that 64 per cent use only chemical

pesticides and 178 respondents representing 29.7 per cent use both chemical and bio-

chemical pesticides. Only a few respondents depend upon biochemical pesticides.

3.3.1 Problems in Procurement of Pesticides: Majority of the farmers are facing

problems while procurement of pesticides. The problems are adulteration, non

availability of required quality, composition of inputs, higher prices, and non-

availability of branded and certified pesticides. The study revealed that high price is

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the major problem faced by the majority of respondents (77.3 per cent) followed by

unreliable brands of pesticides (63.2 per cent), adulteration (52.2 per cent), non

availability of required quantity (48.5 per cent), and composition of inputs (42.0 per

cent), credit facility (41.5 per cent) and non availability of fertilizers (39.5 per cent).

3.4 Variety of Paddy Produced: The paddy varieties considered suitable for East &

West Godavari districts are as following(www.ikisan.com/links/ap_riceverities.shtml)

3.4.1 East Godavari

Single cropped wet land : Swarna (MTU 2079), Vajram MTU (5249), Badava

: Mahsuri(PLA 1100), Krishnaveni (MTU 2077),

: Godavari (MTU 1032), Tholakari (MTU 1031),

: Chaitanya (MTU 2067)

Double cropped wet land : Swarna , Vajram, Chaitanya , Godavari .

Tankfed areas : Swarna , Vajram.

Saline soil : Swarna, Chaitanya and Deepti (MTU 4870)

Rainfed uplands : MTU 9993, Maruteru sannalu (1006)

3.4.2 West Godavari

Single cropped wet land : Swarna, vajram, , Chaitanya,

: Godavari, Tholakari

Double cropped wet land : Swarna, Vajram, Chaitanya, Prabhat (MTU 3626),

Godavari,

Tankfed and tube wells : Swarna, Cottandora sannalu (MTU 1010)

Low lying areas : Badava Mahsuri(PLA 1100)

Late Planted areas : Cottandora sannalu

Saline areas : Swarna, Chaitanya,

The details of paddy varieties cultivated by the respondents are shown in

Table 1. The varieties include MTU 1010, PLA, MTU 7029, MTU 1001, IR 64 and

Sona. Out of the total, 220 respondents representing 36.7 per cent produce MTU 7029

(swarna) variety. As many as 196 respondents representing 32.7 per cent produce

MTU 1010 (cottondora sannalu) variety of paddy. In other words, about 70 per cent of

the respondents produce either of two varieties (MTU 7029 or MTU 1010). A little

over 16 per cent of the respondents produce MTU 1001 (vijetha). The other varieties

attracted only a few respondents.

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Table 1: Paddy Variety Cultivated

(n = 600)

Variety

Status Total

Marginal &

Small Medium Large

MTU 1010 66 67 63 196

(11.0%) (11.2%) (10.5%) (32.7%)

PLA 2 2 13 17

(0.3%) (0.3%) (2.2%) (2.8%)

MTU 7029 78 82 60 220

(13.0%) (13.7%) (10.0%) (36.7%)

MTU 1001 44 22 32 98

(7.3%) (3.7%) (5.3%) (16.3%)

IR 64 10 18 8 36

(1.7%) (3.0%) (1.3%) (6.0%)

Sona 0 9 24 33

(0.0%) (1.5%) (4.0%) (5.5%)

Total 200 200 200 600

(33.3%) (33.3%) (33.3%) (100.0%)

Figures in parenthesis indicate percentage to the grand total.

3.5 Problems in Cultivation: The respondents face problems related to water supply,

soil fertility, credit facility and technology in carrying out paddy cultivation process.

Paddy is a water dependent crop and needs systematic supply of water. The study

revealed that water supply is the major problem faced by the respondents. The farmers

depend upon river Godavari for the water. Though the river is perennial, insufficiency

of water becomes the major problem. The problem further is intensified due to

irregular cycles of monsoons. Since the supply of water from the river is not fully

controllable, it is necessary to find out alternative or supportive methods to face the

water supply problems. Rain water harvesting which includes farm ponds and

community ponds are strengthening water supply to farmers. There is a need to

elevate existing wells and ponds besides developing new ones. Water demand




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management through improved irrigation practices, including sprinkler and drip

irrigation should be given attention. A water literacy movement should be launched

for proper use of ground water.

The cash requirement of farmers is increasing due to adoption of improved

varieties and use of fertilizers, pesticides, irrigation systems, machinery etc. Though

the banks are providing loans under different schemes, the procedures followed by

banks make it difficult for the medium and marginal & small farmers to get loans.

Therefore, many farmers are depending upon private money lenders for getting quick

loan at a higher rate of interest. As a result the indebtedness has been increasing

among farm community.

Technology is the third major problem revealed by the respondents. Though

there is advancement in technology application to agriculture, majority of the farmers

are unable to have access to the technology or required knowledge to adopt

technology in the cultivation process. There is a need to not only provide accessibility

to the technology to the farmers but also train the farmers for the effective use of

technology for enhancing productivity as well as farm out put.

Soil fertility is the problem revealed by some of the respondents. They

revealed that due to excessive use of land throughout the year for different crops, soil

fertility is getting derided. This affects seriously the production of paddy. The need

for the creation of the soil fertility can’t be overemphasized. The farmers need to be

guided properly to plan the use of land by the way of protecting soil fertility.

Great potential exists for the farmers to further increase the output using the

available inputs and technology. This means that with out any additional cost, the

technical efficiency can be increased substantially. Not only that mechanization

should be promoted while technology utilization upgraded at farm level, government

effort should be directed towards education, extension, social change and support in

order to improve the extent to which farmers are technically efficient (Alias Radam

and Mad Nasir Shamgudin - 2001). Poor farmers are generally, more risk- averse than

wealthier ones and therefore unlikely to adopt techniques that increase the variance of

yields (Xavier Irz, Lin Lin - 2001).

4. Pricing

Pricing is one of the key elements of the agricultural marketing. It is the

price that influences the revenue of the farmers. Farmers expect fair price for their




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produce. However many market elements interfere in the pricing process to keep quit

often the farmers on receiving end. The study revealed that 81.5 per cent of the

respondents revealed the price of the paddy is decided by commission agents (Table-

2). The role of Rice Millers, Food Corporation of India and retailers in deciding price

is not significant as only a few respondents are depending on them.

The study reveals that the commission agents are highly accessible to the

farmers and provide loans on a conditional basis to the farmers. On the condition of

selling the harvested produce to the same commission agent at price decided by the

later, the farmers take loans from the agents due to need pressure.

Table 2: Fixation of Price

(n = 600)

Status Total

Mean

Std.

Deviation Marginal

& Small Medium Large

FCI 19 14 4 37

12.33 7.63763 (3.7%) (2.3%) (0.7%) (6.7%)

Rice Millers 3 11 37 51

17.00 17.77639 (0.5%) (1.8%) (6.7%) (8.5%)

Commission

Agents

169 164 156 489 163.00 6.55744

(28.7%) (27.3%) (26.0%) (81.5%)

Retailers 9 11 3 23

7. 67 4.16333 (1.5%) (1.8%) (0.5%) (3.8%)

Self - - - -

- -

Total 200 200 200 600

(33.3%) (33.3%) (33.3%) (100.0%)

Figures in parenthesis indicate percentage to the grand total

4.1 Whether Getting Reasonable Price?: The respondent’s opinion on the price that

obtained on their produce was ascertained. Only 12.30 per cent of the respondents are

happy with the price. The majority are on the opinion that they are unable to get

reasonable price for their produce.

4.1.1 Satisfaction on MSP: The opinion on Minimum Support Price offered by the

Food Corporation of India for the output of paddy reveals the majority of the




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respondents (92.3 per cent) are not satisfied with the MSP announced by the FCI.

Only a few respondents expressed their satisfaction on the MSP.

4.1.2 Preference for Open Market Purchase: As many as 71 per cent of the

respondents preferred open market purchase of the paddy to Minimum Support Price

offered by the Food Corporation of India.

5. Distribution

Distribution is the key element in agricultural marketing in general and

marketing of paddy in particular. The key intermediaries in the distribution of paddy

are; commission agents, rice millers, Food Corporation of India and general retailers.

The study revealed that more than 75 per cent of the respondents are selling their

produce to the commission agents (Table-3). The role of FCI, rice millers and retailers

is not that significant as only a few respondents are depending on them for marketing

their produce.

Table 3: Selling of Produce

(n = 600)

Particulars

Status Total

Marginal &

Small Medium Large

FCI 21 16 7 44

(3.5%) (2.7%) (1.2%) (7.3%)

Rice Millers 8 14 35 57

(1.3%) (2.3%) (5.8%) (9.5%)

Commission

Agents

160 157 155 472

(26.7%) (26.2%) (25.8%) (78.7%)

Retailers 11 13 3 27

(1.8) (2.7%) (0.5%) (4.5%)

Total 200 200 200 600

(33.3%) (33.3%) (33.3%) (100.0%)

Figures in parenthesis indicate percentage to the grand total.

5.1 Storage Problem: One of the key problems faced by paddy cultivators,

irrespective of their size of land holdings is the problem of storage. The majority of

the respondents revealed that they were unable to realize fair price to their produce

due to lack of adequate storage facilities. The study revealed that 61.5 per cent of the




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respondents face the problem of storage of their produce. Most of the medium size

farmers and large size farmers are facing this problem when compared with marginal

& small farmers.

According to a study conducted by Raghu Rama (2005) the farmers do not

have facilities in the form of adequate warehouses in the rural areas for storing their

produce and wait till they get better price in future. They are forced to sell their

surplus produce immediately after harvest to settle their debt. Besides, the conditions

of storage facilities available in the rural areas are so bad that 10 per cent to 20 per

cent of the produce is eaten away by rates. The farmers’ interface with the markets, as

producers, was restricted to credit transactions and sale of small quantities of

marketable surplus (V.S. Vyas - 1979).

5.2 Transport Expenses from Field to the Market Place: The study revealed that

in majority of the cases the buyer bears the transport expenses from field to markets.

Out of the total, 81.2 per cent revealed the same. It suggests that the farmer sell the

produce at the farm itself. There are, however, 9.2 per cent of the respondents

revealed that they will bear the transportation expenses to carry the produce to the

market place, while 9.7 per cent of the respondents revealed that the transport

expenses are shared by themselves and the intermediaries.

5.3 Problems in Selling the Produce: The study revealed that more than 60 per cent

of the respondents face problems in selling their produce. The problems faced by the

respondents include grading, under weighment, low price, lack of transportation

facilities and lack of market information.

6. Marketing Communications

Communication plays an important role in empowering the farmers in

the marketing of agricultural produce effectively. The information flow through

dependable media helps the farmers in many ways. The importance of public as well

as print media, in this context can not be overemphasized. The study, therefore, focus

on identifying the sources of information, the information needs and the accessibility

of information to the respondents.

6.1 Sources of Market information: The study revealed that the sources of

marketing information include print media, television, radio and agriculture

department of Andhra Pradesh. Out of the total, 71.8 per cent of the respondents

revealed that they get market information daily from co-farmers. Print media is the




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second major source of market information as 46.3 per cent of the respondents

revealed that they find relevant market information in print media daily. Television is

the daily source of market information for 33.8 per cent of the respondents. Only 13.3

per cent respondents revealed that radio is providing market information every day.

None of the respondents gets market information daily from agriculture department.

Out of the total, 101 respondents representing 16.8 per cent revealed that they interact

with co-farmers weekly to get market information, while 11.3 per cent of the

respondents interact with co-farmers every month for market information. It can be

inferred from above that co-farmers are the source of market information for all the

respondents with varied frequency. Print media was the source of market information

for about 63 per cent of respondents with a varied frequency. Television is used as

source of market information by about 67 per cent of the respondents. Radio was the

source of market information for about 34 per cent of the respondents while,

agriculture department was the source of market information for 47 per cent of the

respondents. Most of the respondents get monthly information from agriculture

department.

6.1.1 Information Needs: The information needs identified by the respondents

includes seeds, cultivation methods, cultivation techniques, new tools & machines,

success stories, fertilizers, pesticides, prices, demand pattern, Govt. schemes, export

opportunities, crisis management, training sources, grading, climatic conditions,

storage facility, credit facility, interest rates and insurance(Table-4). The study reveals

about 80 per cent of the respondents need information on seeds occasionally.

Information on cultivation methods was sought by 74.5 per cent of the respondents

occasionally and 39.3 per cent respondents regularly. Regarding cultivation

techniques, 54.3 per cent respondents need information occasionally while 32.2 per

cent of the respondents need information regularly. About 71 per cent of the

respondents need information on new tools and machines occasionally. Out of the

total, 58 per cent of the respondents wanted to know success stories in paddy

cultivation either regularly or occasionally. A little over 50 per cent respondents need

information on fertilizers occasionally and about 42 per cent of the respondents need

the information regularly. About 46 per cent of the respondents need information on

pesticides regularly while a little over 45 per cent of the respondents need information

occasionally. Regular information on prices was needed by about 49 per cent of the




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respondents and 45 per cent of the respondents need the information occasionally. The

demand pattern of paddy was the information sought occasionally by about 59 pr cent

of the respondents and regularly by 23.2 per cent of the respondents. Out of the total,

64.2 per cent of the respondents want the supply information on government schemes

occasionally while about 19 per cent of the respondents want the information

regularly. Less than 50 per cent of the respondents wanted the information on export

management either occasionally or regularly. The information on crisis management

was sought by about 38 per cent of the respondents. About 90 per cent of the

respondents wanted information on training sources. Information on grading was

required by 58.3 per cent, information on climatic conditions was required by 83.3 per

cent and information on storage facility was required by 88.5 per cent of the

respondents. The information on credit facilities was needed by about 49 per cent of

the respondents occasionally and 44.3 per cent of the respondents regularly.

Information on interest rates was needed by about 89 per cent of the respondents,

while information on insurance was needed by 79 per cent of the respondents.

Table 4: The Details of Information

(% to number of respondents)

Particulars Frequency

Regularly Occasionally Never

Seeds 13.8 79.7 6.5

Cultivation methods 39.3 47.5 13.2

Cultivation Techniques 32.2 54.3 13.5

New tools & machines 17.7 70.8 11.5

Success stories 20.7 37.5 41.8

Fertilizers 41.7 50.3 8.0

Pesticides 45.5 45.2 9.3

Prices 48.8 45.0 6.2

Demand Pattern 23.2 58.5 18.3

Govt. schemes 18.8 64.2 17.0

Export opportunities 10.8 36.7 52.5

Crisis management 8.8 29.2 62.0

Training sources 39.2 50.3 10.5




130

Grading 10.3 58.0 31.7

Climatic conditions 27.3 56.0 16.7

Storage Facility 20.2 68.3 11.5

Credit facilities 44.3 48.7 7.0

Interest Rates 22.7 66.5 10.8

Insurance 17.2 62.0 20.8

6.1.2 Measures for Improving the Information Flow: The respondents suggested

measures for improving the information flow to the farmers. The suggestions include

more use of print and electronic media, strengthening of Adarsa Rythu program,

Rythu Mitra program and Polambadi program. The Government of Andhra Pradesh

has taken up Adarsa Rythu program to identify a model farmer in every village by

taking the merits of the farmers in a village. The Government uses the model farmer

as a facilitator at village level for generating more awareness among the farmers on

advanced crop planning, production techniques, horticultural crops, micro irrigation

practices, marketing issues, post harvest technology, credit related issues, irrigation

and other allied agricultural activities. Rythu Mitra program is yet another program

promoted by the Government.

There are about 2.38 lakh Rythu Mithra Groups were formed in the state to

work on Self-Help Groups (SHG) lines to enable tenant farmers, share croppers and

oral lessees to obtain finance from Banks and to serve as a conduit for technology

transfer and facilitate access to market information. Each Rythu Mitra Group was

formed with around 15 members consisting of Small, Marginal and Tenant farmers in

the state

The Government of Andhra Pradesh has launched a program namely

Polambadi (Farmers Field School) in which emphasis has been given for use of eco-

friendly measures(bio-agents and bio-pesticides) for control of crop pests which in

turn reduce cost of cultivation and improve the quality of produce, resulting high

market price and good returns. It also leading less hazards to the living entity by not

disturbing natural ecosystem. It is programmed to take up training in the farmers

fields on FFS model (Polambadi) in which farmers are being trained in observation,

scanning and identification of insect pests, diseases & defenders and adoption of

Integrated Crop Management techniques on important crops. The data presented in




131

Table 5 shows that about 86 per cent of the respondents suggested strengthening of

Rythu Mitra program as the program is helpful to them to get required informational

support. Polambadi is another model suggested by 81.8 per cent of the respondents for

strengthening the flow of information. Adarsa Rythu Program was recommended by

73.1 per cent of the respondents while more use of print and electronic media was

suggested by 68 per cent of the respondents.

Table 5: Suggested Measures for Improvement

Particulars % to number of respondents

More use of Print & Electronic Media 68

Adarsa Rythu Program 73.1

Rythu Mitra Program 85.8

Polambadi 81.8

6.2 Support by Agriculture Marketing Committees (AMC)

The respondents were asked reveal their opinions on agriculture marketing

committees in respect of the support extended by the committee for marketing their

produce. The data shown in Figure 1 reveals the majority of the respondents are not

getting desired support at desired time from agriculture marketing committees. Only

about 30 per cent of the respondents opined in favour of functioning of agriculture

marketing committees.




132

Figure 1: Whether AMCs provide necessary support?

7. Conclusions

The findings of the study suggest that the farmers are facing many problems in

marketing of paddy. The major problems include; seeds of dependable quality and

their availability at reasonable prices, finding soil-fertilizers match to optimize results,

pesticides information, suitability and availability with dependable quality, required

information flow on adaptable production methodologies, skill development for the

human resources, functioning of marketing infrastructure and resources, and

realization of fair price to the produce. Sridhar (2006)

has pointed out that the

agrarian sector in Andhra Pradesh has been facing a sever crisis since the last decade.

Not only dry regions like Rayalaseema and Telangana but also the well irrigated

region of Coastal Andhra is facing the strains of this unprecedented crisis. The

government will have to play a crucial role in helping the increasing of agricultural

production by providing support like water, electricity, seeds, fertilizers, pesticides,

extension services, machines, implements, etc., at reasonable and even subsidized

prices. Then alone the agricultural output can go up (Srivastva, O.S. - 1996). To solve

the problems identified the measures such as establishment of seed banks and

4.70%

25.30%

12%

54.50%

3.50%

Strongly agree Agree Undecided

Disagree Strongly disagree




133

introduction of seed insurance schemes, facility of soil testing through PACS, supply

of quality pesticides through credible agencies, transfer of knowledge on new

methods of cultivation, strengthen the programs such as Rythu Mithra, Polambadi and

Adarsa Rythu, strengthen marketing infrastructure by involving farmers in

management and fair and timely support price are need to be taken by the

government.

References

1. A. Raghu Rama (2005): “Agricultural Marketing in Rural Areas of

Dakshina Kannada District-Problems and Policy Measures” Indian

Journal of Marketing, Vol. XXXV, Jan, pp. 12

2. Alias Radam and Mad Nasir Shamgudin (2001), “Production frontier and

technical efficiency” The case of Paddy Farm in Malaysia. The Asian

Economic Review volume.43 No: 2, pp.315-322.

3. B.D Dhawan (2001), “Economic of Water Saving Method for Paddy

Crop” Agriculture situation in India, Vol. LVII, No.12, March. pp.659.

4. D.Nageswara Rao (2002), “A Study of Marketing of Cotton in Coastal

Andhra Pradesh” Indian Journal of Marketing, Vol.XXXII, Dec. pp.13.

5. http://agri.ap.nic.in/Ferilizers5.htm

6. http://apssca.ap.nic.in/

7. Indian council of agricultural research (ICAR), Hand Book of Agriculture

(2006), Published by Directorate of Information and Publications of

Agriculture, New Delhi, pp. 406.

8. Robert. F Chandler, Jr. (1975), “New Developments in Rice research”

UNDP

9. S.S Acharya (2004), “Agricultural Marketing” State of the Indian Farmer,

Millennium Study, Department of Agriculture and cooperation, Ministry

of agriculture, Government of India, Vol.17, Academic foundation, New

Delhi.

http://apssca.ap.nic.in/




134

10. Sridhar, V. (2006), “Why Do Farmers Committed Suicides? The Case of

Andhra Pradesh” Economic and Political Weekly, Vol.41, No.16, April

22, pp. 1559-1565.

11. Srivastva, O.S. (1996), “Agricultural Economy” Rawat Publications,

Jaipur and New Delhi, pp.256-257.

12. V.S. Vyas (1979), “Some Aspects of Structural Change in Indian

Agriculture” Indian Journal of Agricultural Economics.Vol.34 No.1

January and March.

13. Xavier Irz, Lin Lin (2001), “Agricultural productivity growth and poverty

Alleviation” Development policy Review, 19(4) pp.449-466.

14. www.ikisan.com/links/ap_riceverities.shtml

http://www.ikisan.com/links/ap_riceverities.shtml

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