1

CHAPTER 1

INTRODUCTION

.

2

CHAPTER 1

1. INTRODUCTION

Kanyakumari, the southernmost part of India which witnesses

the confluence of the three Seas, cannot boast of large scale industries.

But it has many small scale industries. One of the important small scale

industries in Kanyakumari is Bee-keeping. Production of honey and the

marketing of it has assumed much significance in the smallest district.

Bee keeping refers to the domestication of honey bees for the

purpose of obtaining honey and other useful products such as wax, pollen

and royal jelly. Beekeeping is a low cost technology with high potential

for economic returns. Farmers and other workers who generally take part

in agricultural operation are mainly engaged in beekeeping. Beekeeping

can be taken up both at household and commercial level to generate

additional income to the marginal farmers, landless labourers and other

weaker sections of the society. Bee-keeping has fascinated mankind from

time immemorial and what exactly attracted the early ape men towards

these tiny insects is not known.

By the advent of the modern Bee-keeping in India, many new

organizations have come up. Organizations like the Young Men Christian

Association (YMCA), Indian Institute of Honey, All India village

Industries Association etc. pioneered the Bee-keeping extension

programmes. A number of bee-keeper‟s Co-operative Societies are

working today in India. The Khadi and Village, Industries Commission

and the various State Industrial Board nurtured the Industry.

3

The Production of honey is seasonal according to the climate

conditions, that is, from February to April, every year. Honey is very

much in short supply in India. Bulk of the honey is produced in

Kanyakumari District of Tamilnadu,Trivandrum, Calicut and Canoor

districts of Kerala and Coory in Karnataka State1.

Honey is a natural unmanufactured food. The average

composition of honey consists of water 17.70 percent, 40.05 percent

dextrose, 34.0 percent sucrose, 1.9 percent dextrin`s and gum, 1.51

percent Silica, Iron, Copper, Manganese, Chlorine, Potassium, Sulphur,

Phosphorus, Aluminium and Magnesium 0.18 percent. Besides the above

aromatic compounds colloids, pollen etc. contribute to the colour, taste

and flavour of honey. Sweetness of honey depends upon sugar, which is

its major component. Sugar includes glucose and fructose. Honey contains

several vitamins via ascorbic acid, niacin, pantathentic acid, riboflavin and

thiamine.

1.1.1 TECHNICAL ASPECTS OF BEE – KEEPING:

Bee – keeping or Apiculture is the scientific method of

conservation and rearing of bees for the production of important hive

products such as honey, bee – wax, royal jelly, bee venom and the

pollination of crop lands. It is the sum total of the following activities.

1. Selection of a good locality with nectar secreting, flowering

trees, plants, shrubs and bushes.

1 Neelima R.Kumar, “Bee - keeping for Self Employment”, Kissan World, Vol. 3.

No.1995, P.53.

4

2. Domesticating the bee colonies in hives with proper care on

scientific and established lines most suitable to the locality.

3. Providing food for the bees in case of dearth of nectar.

4. The extraction and use of the products to the best advantage of

the society at large.

1. 1. 2 DEVELOPMENT UNITS

These Bee- keeping units were meant to develop the rural

areas, with proper care for a period of 10 years, under the Integrated Rural

Development Programme (IRDP). This programme was introduced by the

Khadi and Village Industries Commission (KVIC) as a new pattern of

assistance. The bee – keeping units under this programme have been

started in places where there were closed sub – stations. The field staff of

the TANKVIB help the Bee-keepers in practical bee – keeping. The units

under IRDP suit well for Kanyakumari, North Arcot, Tiruchirappalli and

Nilgiri districts in Tamilnadu.

1. 1. 3. CRITERIA FOR THE SELECTION OF SITE FOR

STARTING BEE – COLONY:

Bee – keeping in colonies requires skill. A bee which has the

following qualities is considered to be good for Bee – keeping.

1. Gentle Temperament.

2. Ability to guard against enemies, such as ants.

3. The site should be flat with good drainage facilities.

4. There must be rich and continuous source of flower plants with

in a radius about 2 to 3 Kilometers.

5

5. Flowers must be available throughout the year.

6. Clean and fresh running water should be available to the bees in

or near the apiary.

7. An apiary should not be located too close of the highway.

8. The periodicity and duration of flowering plant.

9. If the dearth period is long, alternative sources must be found to

feed the bees. It is not desirable to establish bee colonies in an

area, where the dearth period is more than 4 months.2

1. 1. 4 PROCEDURE FOR STARTING BEE – KEEPING

The Bee – keeping should ensure the year round availability of

useful nectar and pollen in the vicinity. The next step is to acquire

necessary skills through proper training, which is imparted by many

centers under the KVIC, State Governments and Agricultural Universities.

The Spring Season is regarded ideal for a beginning. Initially, one or two

hives containing 4 – 5 frames covered with workers along with healthy,

prolific queen are procured and maintained for one year, and thereafter,

hives may be increased. For packing and transportation of hives, dusk or

evening period is suitable and for starting certain procedures like handling

of hives, swarm control, colony, multiplication, catching swarm,

management of wax moth and ocarina disease.Besides,extraction of honey

2P.B. Singh, M. Naim, “Beekeeping for Addition income” , Kisan world vo. 20 No. 6,

1993 P.32

6

should be learnt. Species selection should be as per the advice of KVIC

staff and the apiary should be registered with KVIC.3

1.1.5 MARKETING CHANNEL OF HONEY

The Bee – keepers and honey hunters sell the raw honey

through the co – operative societies. Sometimes the honey hunters sell it

through traders or contractors. The co – operative societies are the

processing centers of honey. Testing and grading process is done by the

Agmark Laboratory. After this bottling and packing are done. The

producers sell the honey either in bulk or loosely to the customers. The

contractors of honey sell the whole bulk of honey to the retail shops

directly. The following diagram shows the Marketing Channel of Honey.

3P.B. Singh, M. Naim, “Beekeeping for Addition income” , Kisan world vo. 20 No. 6, 1993 P.32

7

MARKETING CHANNEL OF HONEY

Published by : Central Bee Research and Training Institute KVIC Pune April 2001.

Dr. D.M. Wakhle and K.D. Kamble Technology and value addition of honey page No 68.

1.1.6 IMPORTANCE OF BEE – KEEPING

The importance of bee – keeping is analyzed in respect of

importance to bee –keepers; importance to traders; importance to the

Government; and importance to the customer. The details of the analysis

are stated as follows.

Raw Honey Honey Hunters

Testing and Grading

Agmark Laboratory

Loose Sales

Agency Distributor Sales Bulk Retail KVIB Bondor

and Bhavan

Sales

Outlets

Traders Contractors

Bottling and Packing

Direct Sales

Bee keepers

Co- operative Societies Direct Sales

Processing Centre

8

(1) BENEFICIAL TO THE BEE – KEEPERS:

Bee- keeping emerges as an important village industry for the

integrated rural development. Now the time has come to identify all

potential areas, in our country and popularize it to increase the purchasing

power of the farmers. Bee keeping requires very little investment; it

benefits both agriculture and horticulture by providing pleasure and profit,

as a gainful part – time as well as a full time employment. It also increases

the employment opportunities. Many Bee – keepers are keeping more

colonies and are earning an income between Rs. 30000 to 100000

annually. Bee – keeping provides an ideal self - employment opportunity

to women, and raises their status and esteem in society and improves in

general the quality of life.

(II) BENEFICIAL TO THE TRADERS

Honey is sold by many private dealers, institutions and co –

operative societies. It is processed packed and the Agmark seal is

attached. The Traders sell different varieties of honey and earn profit.

Some traders own Bee colonies. Some Bee – keepers sell honey directly to

the customers. Most of the Bee – keepers sell their honey through traders

or co – operative societies. Hence Bee – keeping provides profit and

employment opportunities to the Bee- keepers.

(III) BENEFICIAL TO THE GOVERNMENT:

The Government earn tax from the production and sale of

honey. Moreover the unemployment burden is reduced to a certain

extent due to the Bee-keeping industry. It is always a good trend from the

point of view of the Government that honey is sold through societies at

reasonable prices.

9

(IV) BENEFICIAL TO THE CUSTOMERS:

Honey is consumed because of its nutritional value. It is also

used as medicine. It is good for Diabetics, controls blood sugar, and

reduces cholesterol. It retains energy without doing any damage to

appetite. A spoon of fresh honey with the juice of half a lemon in a glass

of lukewarm water in empty stomach can reduce constipation. Honey can

be taken in any form at any time. It can be applied on slices of bread or

chapattis instead of Jam. It can also be consumed with other dishes like

Dosai, idlis etc. Honey can be mixed with slices of all kinds of fruits, “A

table spoon of Honey is equal in calorific value of a large sized egg”

1.1.7 ECONOMICS OF BEE – KEEPING:

Honey production is a natural phenomenon and could be

collected from wild honey bee colonies without incurring any expenses

but for its adoption as a subsidiary enterprise, the farmer has to incur some

fixed as well as variable expense including expenditure on sugar, Sulphur,

cost of packing material, cost of boxes, labour, wax and hives, extractor

etc.4

Bee-keeping is a Profitable enterprise offering quick return

from a small investment. After the initial year of establishment it becomes

a self perpetuating unit.5

4 J.S. Sidhu and G.S. Mander, “Honey The Untapped Potential”, Yojana vol. 34 No. 17,

1990 P.31. 5 Neelima R.Kumar, “Bee - keeping for Self Employment”, Kissan World, Vol. 3.

No.1995, P.53.

10

1.2. PROBLEMS RELATED TO BEE – KEEPING

In India, honey extracted during May – June may contain

quantities of Hydro Methyl Fururaldehyde (HMF) higher than the

international specifications. Storing honey at room temperature also

increases the HMF content.

Quality testing facilities are also not easily available to bee –

keepers and packers. Honey is packed in undesirable and inappropriate

containers which deteriorates its quality.6

Eighty percent of the honey produced in Kanyakumari District

fails to get the special grade quality. The reason for this is that it contains

more than twenty two percent moisture. Some of the bee- keepers are

using camphor in smokers. This affects honey production, because it

reduces the livestock in the hive. The individual bee keepers must get a

honey grading licence. The licensce can be obtained from the marketing

Directorate of the Government of India. But small bee – keepers are

unaware of the subsidies given by the Government under its different

schemes. The prevailing market rate for honey is not at all a fair price to

the bee – keepers. Lack of transport facilities for migrating bee colonies

and taking back extracted honey to the market is a serious problem faced

by the bee – keepers in Kanyakumari District. They suffer much due to

the non availability of expertise in the marketing of their product.

6 R.C. Mishra, “Waiting to be fully tapped”, The Hindu Survey of Indian Agriculture,

1999, P.163

11

1.2.1 PRODUCTION PROBLEMS:

Eighty percent of the honey produced, fails to get special grade

quality. The reason for this is that it contains more than 22 percent

moisture. Some of the bee – keepers are using camphor in smokers. This

affects the honey production because of the lower number of livestock in

the hive.

1.2.2 ORGANIZATIONAL PROBLEMS:

Inadequate supply of nectar fails to meet the requirements of

all the colonies. Lack of transport facilities is a serious problem for

migrating bee colonies and taking back extracted honey to the markets.

The staff of TNKVIB, working in a sub – station unit have no job-

security. There is a wide gap between the industry and the bee keepers

due to non availability of expertise in Bee – keeping. Possibility of fraud

is a major threat to the development of the industry.

1.2.3. PROBLEMS OF MARKETING:

The Price of honey prevailing in the market is not at all

favorable to the bee – keepers. The agencies are enforcing strict quality

control measures and unfair trade practices against non – members. The

grants and subsidies given by the Government under its different schemes

are not given much publicity. The individual Bee – keeper must get a

honey grading licence. The licence can be obtained from the Marketing

Directorate of the Government of India. But the small bee – keepers

cannot even think of it.7

7 Dr. Raja Justus, “Beekeeping a Profitable venture”, Kisan World, NO.7, 1999, P.21.22.

12

1.3. REVIEW OF RELATED STUDIES:

The review of related studies are stated as follows.

Neelima R. Kumar in her article, “Bee – keeping for Self

Employment” points out that Bee – keeping is one of the low cost

technologies with high potentials for economic returns. The new

innovations in the field of equipments and methods are used for easy

obtaining of honey.8

Mrs. N. Gnana Rajan in her Research “A Study About

Production and Marketing of Honey in Kanyakumari District” points out

that in Kanyakumari with its evergreen forest, Bee – keeping is a main

occupation, and it is a low cost technology with high potentials for

economic returns, Bee – keeping is done also at the household and

commercial level to generate additional income and employment.9

T.L Raghavan in his article, “Honey Road And its Bounty”

points out that Honey is the optimum utilization of available resources for

improving the profitability of the sugar industry. He deserves accolades

for his right perspective of human problems in industry and success was

due to his own individual personality and leadership qualities.10

K. Muniandi in his article, “Honey the Life Giver” points out

that honey is both an item of food as well as medicine. Its glucose content

8 Neelima R.Kumar, “Bee - keeping for Employment”, Kissan World, Vol. 22. No.1995,

P.53 9

Mrs. N.Gnana Rajam, “Study about Production and Marketing of Honey in

KanyakumariDistrict”, 1998 – 99, P.2 10

T.L.Raghavan “Honey Road And its Bounty, Kissan World. Vol 20, No.8,1993 P.55

13

easily digestible and mixes with our blood directly on consumption. Such

is versality of the uses of honey in our everyday life.11

M. Palanichamy in his article, “Bee – keeping as a Business”

points out that, Bee – keeping is important to increase crop yield and cross

pollination. It gives pure and natural source of honey. Besides it is one of

the remunerative subsidiary occupations for most of the farmers. Bee-

keeping as a sole occupation helps one to earn sizeable money.12

B.R. Sharma and Ramesh Chand in their article

“Diversification and Employment Through Apiculture” point out that the

bee – keeping activity is tenable, when one looks at the present level of

per capita consumption of honey in our country. It appears that the

increased production will easily be absorbed by the domestic demand.13

R.C. Mishra in his article, “High Returns with Social Benefits"

points out that honey bees give honey and other hive products which are

of great economic value. The social returns would be much more than

that from honey and other hive products.14

E. Raja Justus in his article, “Bee – Keeping Industry in

Tamilnadu” points out that Bee – keeping is a profitable industry when

compared with other village industries. The Bee – keeping industry in

11

K.Muniandi, “Honey the Life Giver”, Kisan World Vo.27 No.1 2000 P.63 12

M. Palanichamy. “Bee – keeping as a Business “, Kissan World Vol. 5, No. 3, 1978,

P.32 13

B.R.Sharma and Ramesh Chand, “Diversification and Employment Through

Apiculture”. Agriculture Situated India, Vol.m XLVII, No. 10. 1992, P. 596. 14

R.C. Mishra, High retuned with Social Benefits”, The Hindu Survey of Indian

Agriculture, 2000, P.153

14

Tamilnadu is showing an increasing trend as far as employment is

concerned.15

Dinanath Dube in his article, “Money from Honey” points out

that, India could be a land flowing with milk and honey. Our aim of

development is raising the standard of living of the people and with the

minimum expenditure of resources to a high standard of consumption. The

energy value of one kg. of Honey is estimated to be equal to 13 liters of

milk.16

J. Ethen Malar in her Research “A Study about Khadi and

village Industries with Special Reference to the Financial Performance of

Marthadam Bee - keepers Co – Operative Society Ltd,” points out that

honey producing bee – keepers store it in godowns. Then this honey is

processed, purified and filled in bottles and tins with Agmark certificate

and sold in different parts of the country .17

Jameskutty Kuriakose in his article, “Diffusion of Bee-Keeping

Technology in Kerala” points out that, Bee keeping is mainly carried out

by farmers and other workers who generally take part in agricultural

operation. It is a low cost technology with high, potential for economic

returns. Bee-keeping can be taken up both at household and commercial

level to generate additional income to the marginal farmers, landless

15 Dr. E. Raja Justus, “Bee keeping Industry in Tamil Nadu”, Kisan World, Vol. 21, No.

1, 1998, P.26, 27. 16

Dinanath Dube, “Money from Honey”, Yojana , vol. XXIV/9 No. 5 1980, P.23 17

Miss J.Ethan Malar, “A Study about Khadi and Village Indus tries with Special

Reference to the Financial Performance of marthandam Bee – keepers Co – operative

Society Ltd. “, 2000 – 2001, P.51

Jameskutty Kuriakose , “Diffusion of Bee-Keeping Technology in Kerala” An Economic

Analysis 2000-2001,P.5.

15

labourers and other weaker sections of the society. Hive products such as

honey,royal- jelly, bee-wax,pollen etc, provide both nutritious food and

cash income18

.

R.C. Mishra in his article, “High Returns with Social benefits”

points out that, Honey bees give honey and other hive products which are

of great economic value. To increase profits from the apiary units the bee

keepers are also required to exploit bees for the production of royal jelly

bee pollen and propolis. The income from honey bee pollination of crops

is taken into account for economic returns19

.

A. Annie Bright, M. Chandrasekaran and M. Muthuswami in

their article, “Bee pollinators – Importance and Preservation” point out

that cross pollination of plants takes place by wind, water, insects and

other animals. Insect pollination results in higher yields as well as higher

quality crops. The insect pollinated crops have coloured and scented

flowers with well developed showy petals of conspicuous size. Their

pollen grains are sticky and are produced in small numbers.

Approximately 80% of the flowering plants in temperate zones are

pollinated by insects20

.

Dr. A.N.Sarkar in his article, “ Apiculture in North Eastern

Region” points out that the North Eastern Region , with rich natural

endowment of forests, orchards and wide ranging field crops and other

18

Miss J.Ethan Malar, “A Study about Khadi and Village Industries with Special

Reference to the Financial Performance of marthandam Bee – keepers Co – operative

Society Ltd. “, 2000 – 2001, P.51 19

R.C. Mishra, " 20

A.Annic Bright ,M.Chandrasekaran and M.Muthuswami, “Bee pollinators-Importance

and preservation .” Kisan world Vol 25 No 4 April 1998,P 61.

16

flora, offers immense potentialities. Honey is regarded as a highly

nutritional and medicinally important food21

.

AGRICULTURAL MARKETING

Acharya S.S. and Agarwal N.L. define Agricultural

marketing as the study of all the activities, agencies and policies involved

in the procurement of farm inputs by the farmers and the movement of

agricultural products from the farms to the consumers. 22

FEATURES OF AGRICULTURAL MARKETING IN INDIA

Ahamed R. in his article „Agricultural Marketing Challenges‟

says that in India a considerable part of the total produce is sold by the

farmers to the village traders and moneylenders. Most of the farmers are

under heavy burden of debts and moneylenders compel them to sell their

produce at prices considerably lower than the market price. Often the

moneylender acts as a commission agent of the wholesale trader.

He further says that the farm products are collected in large

quantity and brought to the local or regional markets. The commission

agent or middlemen purchase the agricultural commodities in bulk and

store them for sometime. Then these goods are sold to the retailers. At the

district level markets huge quantity of agricultural commodities are bought

21

Dr.A.N. Sarkar, “Apiculture in north Eastern Region” , Vol.37, No.12, July 15, 1993, P

21.

22

Acharya, S.S., and Agarwal, N.L., Agricultural Marketing in India. Oxford and IBH

Publishing Co., New Delhi, 1987, p.2.

17

from local markets. After processing, these products are transported to

central or regional markets or directly sold to the consumer markets23

.

Acharya S.S. in his article „Agricultural Marketing in India

Some Facts and Emerging Issues‟ discusses the issues in the agricultural

marketing in India relating to the structure, conduct and performance of

agricultural produce markets in India. The paper has been divided into five

sections. In the first section, a brief review of the current policy

environment within which agricultural markets operate has been

presented. Some broad features of the structure of the market for major

agricultural products are discussed in the second section. Some concerns

relating to the current stage of agricultural development are identified in

the third section. In the last section, some issues in agricultural marketing

which need consideration for making Indian agriculture more vibrant and

competitive have been identified. 24

Sikka B.K. and Vaidya C.S. in their article „Honey A study of

Production and Marketing‟ reveal the production and utilization pattern of

Honey in different types of farms. They also studied the marketing system

of Honey produced by the farmers. The study revealed that before the

Honey is marketed in different consuming areas, it has to be prepared for

marketing. This involves various functions like cleaning, grading,

packing, certification etc. It also involves the local as well as the long

distance transportation of the produce. Honey is perishable in nature and

therefore require speedy and efficient marketing. This gives rise to several

23

Ahmed, R., “Agricultural Marketing Challenges” Kuruksheta, December, 1998, p. 4.

24

Acharya, S.S., “Agricultural Marketing in India: Some Facts and Emerging Issues”,

Indian journal of Agricultural Economics, July-September, 1998, pp311-313.

18

problems to the Honey growers, for the production and marketing of

Honey. 25

Patil H.K., Mahadik R.P., Raorane G.P. and Modak S.I. in their

article „ Marketing of Minor Fruit Crops and Constraints Analysis‟

discussed the economic importance of minor fruit crops. They said that the

minor fruits were used for fresh consumption as well as for processing.

There is a tremendous demand for processed products within the country

and abroad. Products such as squash, syrup, jam etc are also prepared

from these fruits. Until now, no systematic and scientific attempts have

been made to study the existing marketing systems of these minor fruit

crops in Maharashtra26

.

COMPUTERS IN AGRICULTURAL MARKETING

One of the recent developments in agricultural marketing in

India is the installation of computers.. In January 2000, computers were

installed in twenty-one information centers of the villages in Dhar district,

Madhya Pradesh. The computers made it possible for a farmer to check

the big city rates and prices for his produce in the mandis. Armed with

accurate information on the current market rate for the produce, he can

now demand the correct price and also choose the best day to go to town

and the most profitable mandi to go27

.

25

Sikka, B.K., and Vaidya, C.S. Hondy A study of production and Marketing ,”

Agricultureal Situation in India, May, 1992, pp.121-123.

26

Patil H.K., Mahadik R.P., Raorane G.P. and Modak S.I., “Marketing of Minor Fruit

Crops and Constrains Analysis‟‟ Indian Journal of marketing , Augustst- October, 200,

p.28. 27

Rinku Ghosh, “Farmers on the Net”, The Sunday Pioneer, February, 2000,, p.22.

19

Barbara Harris-Whites in, “ A Political Economy of

Agricultural Markets in South India ” (1996) presents an altogether new

approach to the study of market. The new holistic approach is grounded in

institutional economies and political economy28

.

AGRICULTURAL MARKETING IN TAMIL NADU

Srinivasan T.S. in his article „Agricultural Marketing‟

discussed agricultural prices and marketing in Tamil Nadu. He says

discussion of agricultural prices and marketing in relation to Tamil Nadu

will be more valuable for the following reasons: The State has all the

plantation crops. Kanyakumari has the best rubber plantations in the

country. Tamil Nadu has the largest number of irrigation pump sets, about

a million, a number of marketing centers have developed in Tamil Nadu

like Virudhunagar, Coimbatore, Erode, Trichy, Vellore, Madurai.

The State Government has established an Oil Seeds

Department to publicise the diverse types of oil seeds. As far as marketing

of the products are concerned, the state links itself to the Agriculture

Prices Commission‟s recommendations and the Union Governments

recommended prices for paddy. Coffee and tea have been subject to the

vagaries of the international market29

.

In Tamil Nadu as far as marketing of paddy is concerned, the

project for setting up a paddy cum flower market complex at Mattuthavani

on the outskirts of Madurai city is coming up fast. The complex will have

28

Barbara Harriss- Whites, A political Economy of Agricultural Markets in India, 1996,

p.51.

29

Srinivasan, T.S., “Agricultural Marketing”, Kisan World, February, 1986, pp. 23-26.

20

314 shops, mainly for paddy sellers and flower merchants. More than 300

tons of vegetables arrive in this market. The Rs.12.6 crore rproject is

aimed at shifting the paddy, fruit and flower markets functioning in the

heart of the city to Mattithavani30

.

A field study of vegetable growing and marketing patterns in

Chengalpet district in Tamil Nadu reveals that vegetable growers in the

plains, mostly small and marginal farmers are up against certain

bottlenecks in production, credit as well as in marketing. Chengalpet

provides a clear case of all these problems of vegetable farmers as the area

is the chief vegetable growing tract feeding the metropolis of Madras31

AGRICULTURAL MARKETING IN KANYAKUMARY

DISTRICT

Rafi Ahmed in his article „ Farmers‟ Markets, A Boon to

Consumers and Cultivators,‟ explains the concept behind setting up of

Farmers Market. He reveals that Mylaudy Uzhavar Sandhai in

Kanyakumary district caters to the need of about 58958 people in and

around Mylaudy, Anjugramam, Azhagappapuram, Marungoor, Eravipudur

and Theroor. The second Farmers Market in the district had been

constructed at Vadasery. It caters to the need of people in and around

Nagercoil town32

.

30

Staff Reporter, The Hindu. Madurai. April 9, 2001.

31

Special Correspondent, “ Vegetable Marketing- A Tricky Business, why the growers

are always the Losers”, Kisan world, March, 1986, pp.23& 24. 32

Rafi Ahmed, M., “Inauguration of Vadasery Ushavar Sandhai- Farmers Markets, A

Boon to consumers and cultivators”, The New Indian Express, Tuesday 22nd

August,

2000.

21

PROBLEMS OF THE FARMERS IN MARKETING THEIR

PRODUCE

Archna Sood in her article in Kurukshetra illustrates the

problems faced by the farmers. She opines that even though the farmer

may reap a bumper harvest, he is doomed if there is a glut in the market

and his produce being highly perishable and he must sell immediately

whatever the price. If the middlemen could be removed the growers would

get a return of at least 30 percent more for their produce. The practice of

marketing through societies should be developed among the growers.

Further, a system of marketing intelligence has to be evolved for the

farmers to enable them plant crops better and obtain a good price for their

produce in the market33

.

An article in Kisan World describes the problem faced by a 30-

year-old woman vegetable grower. She is an expert grower of tomatoes.

She always prefers to sell her vegetables in town as it gives her chance to

sell to the highest bidder. Firstly, she has to neatly arrange the fruits in the

baskets; otherwise, she loses on the pretext of her produce not being of the

first quality. She has to wake-up early to reach the bus-stand. She pays

luggage of sixty pause per basket for the bus transport. She has to allow

the bus conductor and the driver to pick and choose the good fruits for

their own use. Once in the town the Kalassis take over the unloading work

charging fifty paise per basket. If she does not shout and use foul

language she will be the loser. As all the buses arrive at the same time,

33

Archna Sood. “Fruit and Vegetable marketing; A Welcome Change‟ Kurukshetra, May,

1989.

22

there is always an over supply of goods at one place. So this puts her at a

disadvantage34

.

Subbanarasaiah N. and Mohan B. in their article „Marketing

Problems and Prospects of Citrus Fruits Growers in a Backward Region‟

attempted to study the marketing practices and problems of citrus growers

in a backward region. The main objectives of this paper was to examine

the existing marketing practices of citrus fruit growers in a backward

region, to ascertain the reasons for selling to pre harvest contractors and to

offer suggestions. According to them, after the harvest of the fruits, the

growers have to face the marketing problem such as storage and

warehousing, transportation, absence of co operative and regulated

markets, high fluctuations in prices, role of commission agents and lack of

institutional frame work facilities etc. It is said that due to lack of proper

cold storage facilities the growers are losing nearly 4-5 % of the produce.

The citrus fruits growers of Cuddapah are having inadequate transport

facilities to transport their produce to various places like Bombay,

Calcutta, Delhi, Madurai, Nagpur35

.

“Farmers and farm labourers should stand united to get more

resources to the village”- An article in Kissan World describes the

problems faced by the farm labourers specially the Harijan labourers. The

Harijan labourers who still comprise the bulk of farm labourers are quite

an oppressed lot. This age old oppression is used by city- bred politicians

34

Correspondent. “ Auctioning, Billing and Finally cheating,” kisan world, March, 1986

p.24

35

Subbanarasaiah, N., and Mohan, B., “ Marketing Problems and prospects of Citus Fruits

Growers in a Backward Region- A Case study of Cuddapah District in Andhra

Pradesh”, Indian Journal of Marketing, June, 1987, pp.23-26.

23

to their advantage. The Harijans have been converted into vote banks by

politicians.

The author gives a clear statement about the exploitation of

poor farmers by the land owners. He says there is an artificial division

between the so-called landowners and the less fortunate landless poor. He

finds that there is a strong bias in all the policies designed to help the poor.

More over farmers organizations have failed to give representation to

small and marginal farmers36

.

Vijayakumar Patil in his article „Need for Farmers to Control

Produce Prices‟ indicates the problems faced by Indian farmers. He says

that more than 30 small farmers have reportedly committed suicide in

different parts of the State in the current financial year. The unscrupulous

moneylenders, licenced or illegal liquor outlets and petty gambling dens

have hastened the ruin of small farmers. Under the shadow of the WTO,

farmers have inadequate agricultural subsidies for their produce as against

the heavily subsidized imports. Their income levels have not grown in

proportion to the increase in the cost of living. When the farmer tries to

sell his produce in the market, the price offered is invariably low37

.

GOVERNMENT MEASURES

Ramachandra Bhatta in his article “Agricultural Market

Development and Role of Co operative Marketing” in Indian Journal of

Marketing says that the processes of commercialisation of agriculture

36

Correspondent, “ Farmers Support Farm Labour”, Kisan World, September, 1986. 37

Vijayakumar Patil, “need for farmers to Control Produce Prices”, The Hindu, Friday,

March 23,2001

24

requires the development of agricultural markets. He identifies certain

general programes to improve market efficiency.

According to Bhatta, among the organizational means for

improving marketing system, co operatives were identified as the most

potential set up to provide marketing facilities to farmers, particularly

smaller size groups. He puts three economic arguments in favour of co

operative marketing as a means for improving their economic well being.

Firstly, the farmers are likely to get the advantages of economies of sale.

Secondly, the co operatives would increase the bargaining power of

farmers. Thirdly, co-operative marketing offers vertical integration. In

addition to economic benefits, co-operatives serve as a base for farmer

movements 38

Singh H.P in his article, „Co-operative Marketing of Farm

Produce‟ explains the organizational structure and progress of co-

operatives in India. He further explains the constraints faced by co-

operatives in the marketing of farm produce 39 .

Singh H.P in his article, „Existing Status Of Marketing

Information System for Agricultural Produce in India and Need for

Modernisation‟ describes the strategic role played by the government in

the marketing of fruits and vegetables in India. Since the marketing

information service rendered by the Directorate of Economics and

Statistics was found to be quite effective, the Government of India has set

up the National Horticultural Board. In addition, the National Agricultural

38

Ramachandra Bhatta, “Agriculral Market Developmetn and Role of Co-operative

Marketin”, Indian Jornal of Marketing, 1987, pp.29-31. 39

Singh, H.P., “Co-operative Marketing of Farm produce”, Kizan World, July, 1997,

pp.53 & 54.

25

Co-operative Marketing Federation of India Ltd (NAFED) which is one of

the largest co-operative marketing organizations in Asia, also plays a

pivotal role in marketing of fruits and vegetables40

.

Subbarao examines the organizational characteristics of the rice

marketing system in the State of Andhra Pradesh. His study reveals the

importance of regulated market in augmenting the pecuniary prospects of

rice producers 41 .

According to Dilip Kumar, the problem of agricultural

marketing stunted the growth of agricultural production for a long time.

The farmers were faced with problems such as short-weights, excessive

brokerage, inadequate storage facilities, outmoded and wasteful

processing facilities, exploitable trading forces, and discouraging and

unfavorable price levels. These problems put the country into very severe

difficulty in bringing about an equilibrium between production and

consumption. The outcome was the birth of regulated markets in various

parts of the country to protect the interest of the producers and consumers

and thereby prove itself to be the back bone of agricultural development 42

K.Bhaskar in his article „Streamlining the Regulated Market

System‟ says that most of the farmers are not aware of regulated markets

and even those who are aware of them are ignorant of the benefits through

regulated markets. Further, he says that the commission agents continue to

flourish in regulated markets. To avoid this type of unnecessary market

40

Singh, H.P., “Existing Status of Marketing information System for Agricultal Produce

in India and Need fpr Modernisation,” Kissan World, March, 1998, pp.56-59. 41

Subbarao. Rice Marketing Syatem and Compusory Levies in Andra Pradesh, Allied

Publications Pvt. Ltd., 1978, 1978, p.7. 42

Dilip Kumar Mund, “Agricultural Marketing Prospects,‟ Kurukshetra, Vol. XXXIII,

No9 June, 1985, p.36.

26

charges, the Agricultural Market Committees should get rid of

commission agents. Farmers feel that the officials in the market yard are

not keen on transactions in the yard; as a result, their faith in regulated

markets is not so firm. It is therefore necessary that the officials should

take keen interest in the transactions 43 .

Acharya S.S in his study “Agricultural Marketing: Issues and

Challenges” mentions the government measures taken for marketing

system improvement. These include marketing margins and costs,

establishment of regulated markets and yards, marketing infrastructure,

grading and quality control, marketing research and new role of marketing

organizations. He says that given the overall demand and supply situation,

the prices received by the farmers and paid by the consumers depends on

the gross marketing margins. Maintenance of quality is becoming

increasingly important owing to the growing consumer awareness in both

domestic and international markets44

.

Mamoria C.B in his book “Agricultural Problems of India”

describes the role of Government in agricultural marketing. He

summarizes the work done by the Central Government in the sphere of

agricultural marketing as follows:45

commodity surveys, regulation and

control of market charges, standard weight and measures, grading, market

intelligence and training facilities.

43

Bhaskar, K “Streamlining the Regulated market system”, kurushetra, August, 1987,

pp.7 & 8. 44

Achrya S.S., op.cit., pp. 313-329. 45

Mamoria, C.B., “Agricultural Marketing in India”, Agricultural Problems of India,

Kitab Mahal, Allahabad, 1973, p.771.

27

The regulated markets try to usher in conditions of orderly

marketing and ensure fair prices to the farmers. Moreover regulated

markets can act as powerful agents in bringing about reforms benefiting

cultivators and people who are engaged in trade and commerce in India.

Further they introduce a system of competitive buying and

ensure the use of standard weights and measures. As a result, farmers will

be able to get remunerative prices for their products 46.

FARMERS MARKET

A new scheme known as Farmers Market Scheme has been

introduced for the benefit of the farmers. The first has been established in

Madurai on November 14, 1999. The main feature of this scheme is that

perishable goods like vegetables and fruits are sold directly to the

consumers by farmers themselves without the interference of middlemen

and commission agents.

Muthusamy in his article in Tamil Arasu explains about the

functioning of Farmers Market in Tamil Nadu with reference to

Thiruthuraipoondi, Thanjavur, Tiruchy, Amma pettai, Atoor, Dindigul and

Theni Farmers Market. He points out the variation between the farmers

market and open market prices of selected vegetables and fruits such as

brinjal, onion, ladies finger, papaya, lemon and banana. He also points out

the benefits enjoyed by both farmers and consumers in Farmers Market. 47

46

Dilip kumar Mund, op.cit., p.36.

47

Muthusamy, “Uzhavar Uyara Nugrvor Makizha Uzhavar Santhaigal”, Tamil Areasu,

December 1-31, 1999.

28

Ponnambalam, Kanyakumari Market Committee and Kannan,

Ramanathapuram Market Committee in their paper submitted to 14th

National Conference on Agricultural Marketing at Andhra University,

Visakhapatnam mention about the objectives of Farmers Market, the

facilities to be provided at the Farmers Market and suggestions for

improvement 48 .

Shamugasundaram and Nantarajan in their study on Uzhavar

Sandhai with special reference to beneficiaries attitude towards

Suramanglam Uzhavar Sandhai, Salem found that more than 60 per cent

of the respondents were satisfied about the price, quality and variety of

produces marketed in Uzhavar Sandhai. Inadequate facilities and restricted

working hours were the problems of the consumers towards the Uzhavar

Sadhai. Moreover the farmers expect the government to support them

with additional facilities such as extension of working hours and provision

of special buses to bring their produce to Ushavar Sandhai.

They suggested that more facilities should be provided to the

consumers such as telephone, canteen, drinking water, parking, toilet

etc49

.

48

Ponnambalam. R., and Kannan, G., “Farmers Market- A Success Story in Tamil Nadu,”

paper Submitted to 14th National Conference on Agricultural Marketing at Andhra

Unversity, from 3rd

to 5th February, 2001.

49 Shanmugsundaram, S., and Natarajan, C., “A Study on Uzhavar Sandhai (With Special

Reference to Bneficiaries Attitude Towards Suramangalam Uzhavar Sandhai, Salem”,

Indian Journal of Marketing, pp.13-16

29

1.4. OBJECTIVES OF THE STUDY

The Specific objectives of the study are

1. To study the relationship between investment and sales of

honey by the bee – keepers.

2. To study the profitability in honey production in Kanyakumari

District.

3. To find out the problems of honey production in Kanyakumari

District.

4. To find out the problems in marketing of honey in Kanyakumari

District.

1.5 HYPOTHESES

Following hypotheses were Formulated and Tested

1. There exists relationship between investment and sales.

2. There is no relationship between capital invested and the Bee –

keeper‟s profit.

3. There is no relationship between the capital invested and

savings.

4. There is no relationship between the Bee-keeper‟s income and

expenditure.

1.6 SCOPE OF THE STUDY

The current study attempts to evaluate the production and

marketing problems of Bee – keepers in Kanyakumary District and to

suggest remedial measures to overcome the problems.

30

1.7 OPERATIONAL DEFINITIONS OF CONCEPTS

MARKETING

According to American Marketing Association “Marketing is

concerned with the people and activities involved in the flow of goods and

services from the producer to the consumer.”

In the words of Philip Kotler, Marketing is a human activity

directed to satisfy human needs and wants through exchange process”.

HONEY

It is the sweetest substance produced by bees from the nectar

of blossoms or from the secretion of living substance and stored in honey

combs.

BEE WAX

It is an important by product of the bee – keeping industry. It is

produced from honeycombs, capping old combs and irregular combs built

by bees. Pure bee – wax is secreted as scales from the wax glands. The

pure wax is white in colour.

POLLEN

It is the male germplasm of plants. It is the chief source of

protein, fat and minerals in the honey bee diet.

31

NECTAR

It is a sweet secretion from the floral and extra floral parts of

flowers 50

.

QUALITY CONTROL

Quality control, as per the standards of I.S.I is still not available

for honey and hence at the village level, collection of honey has to be

done in stainless steel vessels or containers, otherwise honey will be easily

spoiled.51

PERIOD OF STUDY

The present study covers ten years from 1996-2006

FOOD AND MEDICINE

Honey is both an item of food and medicine. Its glucose

content is easily digestible and mixes with blood directly on consumption.

CERTAIN IMPORTANT BEE – PASTURE

1. Sunflower

2. Cambodia Cotton

3. Niger

4. Kapak

5. Drumstick

50

Prof. J. John son, Apiculture Book”, 1998, P.52 51

Punitha. K. “Marketing of Honey in Kanyakumary District ”, 2001 – 2002, Page. 111

32

6. Margosa

7. Raintree

8. Wood Apple

9. Tamarind

10. Gingerly

11. Cuter bits

12. Soap nut

13. Daincha

14. Sandal wood

SOURCE OF SUPPLY OF EQUIPMENTS:

ICAR, New Delhi, has already prepared structural schemes to

suit specific areas and hence based on their recommendations and further

field study. Indian Standard Institute has designed specific equipment

with I.S.I marks.52

EQUIPMENTS THAT ARE NECESSARY TO START BEE -

HIVES

1. Bee – boxes

2. Smoker

3. Uncapping knife

4. Feeders

52

Mrs. N. Gnana Rajan, “A Study about Production and Marketing of Honey in

Kanyakumary District”, 1998 – 1999, P.2

33

5. Veil or Mask

6. Honey Extractor

7. Stainless Steel Containers.53

ROYAL JELLY

It is secreted by the hypophryngeal glands of worker bees.

Royal jelly is a creamy, acidic, milky white highly protein rich substance

with a bitter taste.

TRADE MARK

Trade mark has been defined as any sign, symbol, word or

words which indicates the origin or ownership of a product as

distinguished .

1.9 METHODOLOGY: -

1.9.1 SAMPLING:-

The investigator has selected the random sampling method to

collect data from the respondents. There are four honey co-operative

societies all over Kanyakumari district. They are Thiruvattar Co-operative

Society, Marthandom Co-operative Society, Yung Men Christian

Association (YMCA), Tamilnadu Khadi Village Industries Board

(TNKVIB). From the 107000 honey producers of the Kanyakumari

District 110 Bee- keepers were selected at random for the purpose of this

study. The 27 Beekeepers are chosen at Thiruvattar Co-operative

53

B.R. Sharma and Ramesh Chand, “Diversification and Employment Through

Apiculture”. Agriculture Situated India, Vol.m XLVII, No. 10. 1992, P. 596.

34

Society, 27 Beekeepers are chosen at Marthandom Co-operative Society,

27 Beekeepers are chosen at Men Christian Association(YMCA) and 29

Beekeepers are chosen at Tamilnadu Khadi Village Industries Board

(TNKVIB). The mentioned 110 Bee Keepers were selected at random for

the purpose of study.

1.9.2 COLLECTION OF DATA :-

The primary data were collected from the Bee – keepers in

Vilavancode and Kalkulam Taluk of Kanyakumari District. Informal

discussions were also held with these honey producers to extract the real

problems in the marketing of Honey.

The secondary data required for this study have been collected

from various books and journals related to the marketing of honey and

also from the honey producers co - operative societies and YMCA.

1.10 TOOLS FOR ANALYSIS:-

The data collected were analyzed and interpreted with the help

of tables. Statistical tools like simple bar chart, pie charts, and cone chart

were also used to express the relationship between variables. Statistical

techniques followed in the computation of final summary include chi –

square test and correlation analysis.

Chi – square test is applied to ascertain whether the capital

investment by Bee – keepers is related to their savings and whether the

capital invested by Bee – keepers is related to profit.

The chi – square value is calculated using the following

formula.

X2 = E (O – E)2/E

35

O = Observed Frequency

E = Expected Frequency

The relationship between investment and sales is calculated by

the method of correlation with the help of the formula.

Ed x dy - (Edx)(Edy)/N

Edx 2 – (Edx)2 / N Edy 2 – (Edy)2 / N

The relationship between annual income and expenditure is

calculated by the method of correlation with the help of the formula.

NEfd x dy – Efdx)(Efdy)

NEfdx2 – (Efdx)2 NEfdy2 – (Efdy)2

1.11 LIMITATIONS OF THE STUDY :-

1. All the secondary data are collected only from the published

source.

2. Some of the respondents may furnish incorrect information due

to psychological fear.

1.12 CHAPTER SCHEME :-

The first chapter deals with the introduction,

statement of the problem, review of related studies, scope of the study,

objectives of the study, method of data collection, tools for analysis and

limitations of the study.

The second chapter gives a profile of Kanyakumari District.

36

The third chapter examines the role and importance of Honey

rates both inside and outside the state.

The Fourth chapter deals with the production process and their

contribution to the national economy.

The fifth chapter will analyses the role and function of various

Honey agencies functioning in and around Kanyakumari District.

The Sixth chapter aims at analyzing the marketing of Honey in

Kanyakumary District in detail and the various strategies followed by the

different institutions dealing with honey as a produce of their trading

activity.

The seventh chapter gives the Summary of conclusions and

suggestions for future development.