INTRODUCTION

It is said that “ Production, Processing and Marketing ” are the 3 pillars of the agricultural economy. In India, basically, agricultural production is scattered and is a small-scale production, which creates problems of marketing. In addition, the infrastructure facilities like roads, means of transport, storage facilities, etc. are scarce in our rural areas.

In India, there are large numbers of markets which are not regulated under the Marketing Acts. The regulated markets are very few in numbers. The unregulated markets are in the hands of commission agents or Dalals. There are many defects in these markets, they charge high commission, no open auction `(hatta’ system), no proper weighment, number of deductions, no prompt payment, etc.

Importance of Marketing and Peculiarities of Agricultural Produce

With the developments that are taking place in recent years, agriculture in India is becoming more and more market oriented. With the onset of Green Revolution and subsequent White Revolution, the problems of marketing are becoming more serious. Before dealing with the marketing policies, it is necessary to throw some light on the peculiarities of the agricultural produce.

In the first place, the volume of agricultural produce is larger in relation to its price. Another important characteristic is the perishable nature of agricultural produce. Milk, Vegetables, Fruits, etc. are more perishable and are required to reach to the Consumers as quickly as possible. Even the grains, if not dried and stored properly are attacked by the store grain pests in a few days. Infrastructure facilities such as roads, transport, storage, etc are very much inadequate in our rural areas. Small holdings and large number of producers scattered over a wider area, is another feature. All these peculiarities create problems in marketing of agricultural produce.

Defects in the Marketing of Agricultural Produce

They are many problems in the unregulated markets such as,

Small holdings resulting in small quantities of marketable surplus Lack of infrastructure facilities. Lack of grading the produce.

As a result, they do not get remunerative price. At present, majority of the markets are unregulated. The price is fixed by the Commission agent and the retailers (Purchaser) under the cover of cloth by making signs on the palm, popularly called as the “Hatta System”. Thus, even though the farmer is present there, he cannot know the real price at which his produce is sold. The Commission agents exploit the farmers by using many fraudulent means. They charge heavy commission, use faulty weights and measures and have number of deductions. Farmers also lack in information about other markets and prices prevailing there.

Measures adopted by Government to improve the Marketing

Government has taken various steps to improve the conditions of agricultural marketing in the country. A few of the attempts made by the government in this segment are,

Improvement of the roads and communication facilities in the rural areas through the development programmes under Five year Plans,

Establishment of Central and State Warehousing Corporations which encourage construction of warehouses and godowns,

Village Co-operative societies are given necessary technical and financial help for construction of godowns. Farmers can store their produce in these warehouses and can get loans on that security.

Declaring the Minimum Support Prices for the selected commodities, before the sowing season stabilizes food grains prices.

Apart from these, The Department of Marketing, Government of India, had undertaken `Marketing Surveys’ for various commodities. These surveys brought out the problems of marketing and suggested the remedial measures. These Surveys served as the basis for the policies in the subsequent period. In the field of grading and standardization under the `Agricultural Produce (Grading and Marketing) Act’, grades and standards are fixed for many goods like ghee, flour, eggs, etc. The Agricultural Marketing Department gives a seal “AGMARK” the graded goods. For testing purpose, quality control laboratories are also established.

But the two main significant remedies for many ills in the marketing of agricultural produce, are the introduction of Regulated Markets and the Co-operative Marketing.

Co-operative Marketing in brief…..

Prior to 1954, separate co-operative marketing societies were established as distinct from the co-operative credit societies. However, since 1957, policy was adopted to have `Multipurpose Co-operative Societies" undertaking both functions of supply of credit as well as marketing of agricultural produce. The co-operative marketing societies can link credit, farming, marketing and processing to the best advantage of the farmers. It can have its own storage and warehousing facilities.

The most important advantage of the co-operative marketing is that it can eliminate many of the middleman and their profit margins. The co-operative marketing society can also undertake supply of inputs such as seeds, fertilizers, implements, etc required by the farmers. Thus, co-operative marketing is the best method to reorganize rural marketing and to promote planned growth of our rural areas.

At present, there are over 60,000 primary co-operative marketing societies in India, of which 3500 are special commodity marketing societies. At the district level, there are 160 Central Marketing Societies. At the State level, there are 29 general purpose State Level Co-operative Marketing Federation. (NAFED). In additions, there are 8 State Level Trade Co-operative Development Corporations/Federations.

“ In 1990-91, the co-operative marketing societies marketed agricultural produce worth Rs.6300 crores. Punjab, Maharashtra, Uttar Pradesh and Gujarat States accounted for 75 per cent of the total value of the agricultural produce marketed by co-operatives. The three major

commodities which accounted for about 75 percent of the total sales are food grains, sugarcane and cotton. ”

The co-operatives have made a good progress in recent years in the field of agricultural processing. Similar, is the case of co-operative dairy development.The National Co-operative Development Corporation (NCDC) was established in 1963 under the Act of Parliament, with the object of planning and promoting programmes for the production, processing, storage and marketing of agricultural produce and notified commodities through co-operative societies.

Regulated Markets

Evolution of Regulated Markets

The regulated markets are established as per the provisions of the `Marketing of Agricultural Produce Acts’ of the State Government. The first attempt at regulation of markets in India dates back to 1897 when the Berar Cotton and Grain Markets Law was passed to purge marketing of many of its abuses. Subsequent Market Acts, wherever passed, have virtually been passed on the principles embodied in it. Though regarded as a model for adoption in the country, it suffered from limitations like excessive bureaucratic control and lack of independent machinery for settlement of disputes.

Consequently The Indian Cotton Committee was set up in 1917 which recomended the setting up of markets for cotton on Berar system. Further attempt at the regulation of market was made in Bombay by passing the Bombay Cotton Markets Act in 1927. The defects and mal-practices of unregulated markets can be recovered by the establishment of regulated markets was suggested first in 1928 by the Royal commission on Agriculture.

The Bombay Provincial Banking Enquiry Committee 1929-30, also pointed put the glaring defects in the working of the traditional markets and had recommended the immediate application of the Bombay Cotton Act to important centers in the Presidency and the establishment of regulated markets for agricultural commodities other than cotton also. The movement of regulation of market gained momentum only after 1930. The Bombay Agricultural Produce Market Act of 1939 was passed in respect all agriculture produce Viz., cereals, fibres and fruits etc.

As a result at the outset of second world war there were in all 122 regulated markets. At the end of 1983 the number of regulated markets in India increased to 5430. The total number of regulated markets in the country was found to be 6,809 at the end of March 1994. They were supported by the central assistance for infrastructure development in terms of setting up of rural godowns. Grading centers have also been laid down for different agricultural commodities. Likewise special commodity boards are functioning for rubber, tea, coffee, tobacco, spices, vegetable oils and horticulture.

Regulated Markets : Meaning & Features

Regulated market is a wholesale market where buying and selling is regulated and controlled by the state government through the market committee. It aims at the elimination of unhealthy and unscrupulous practices, reducing marketing charges and providing facilities to producers and sellers in the market. It also aims at implementing measures to remove defects such as, the poor standards of primary and secondary markets where producer convert their produce into cash, the prevalence of various malpractice's such as short-weights, excessive market charges, unauthorized deduction, adulteration of produce and the absence of machinery to settle disputes between sellers and buyers.

Regulated markets aim at the development of marketing structures to ensure remunerative prices to the producers and to narrow down the price spread between the producer and the consumer. A fair price is assured for the producers to get the largest share in the final sale price of the produce. It also aims at reducing the non-functional margins of the commission agents. It provides an ethical environment for proper trade practices by prohibiting mal-practices in the market. It also avoids the pitfalls of wide fluctuations in prices by providing stable prices for the agricultural producer.

Main features of regulated markets

MARKET COMMITTEE: Market committee is comprised of representatives from different sectors of society that is farmers, traders, government local bodies and co-operative. In general it is observed that market committee consists of 15 members 10 from farmers 3 from traders and 1 each from the government and local bodies.

AREA OF OPERATION: The concerned state government notifies that its intention to regulate trade practices in specified area such an area of operation is laid down either as a municipal limit or district or even it may be a region. In Maharashtra area of operation of each regulated market restricted to one taluka.

METHODS OF SALES: In regulated market the sale of agricultural produce is undertaken either by open auction or by close tender method these sales method ensure a fair and competitive price for the produce and prevent the cheating of farmers by market functionaries. By these methods, the sale is carried out under the supervision of an official of the market committee.

LICENSING OF MARKET FUNCTIONARIES: All the market functionaries including traders working in the regulated market have to obtain a licence from the market committee after paying the prescribed fee to carry on their business, the licensed traders have to keep proper record and maintain accounts in accordance with the buy-laws of the market committee.

MARKET LEVIES OR FEES: Growers and traders have to pay market fees which are calculated on the basis of value of volume of a commodity bought and sold in the markets. Sometimes it may be based on cartload or truckload.

Organization of regulated markets

The primary object of regulating the markets is to safeguard the interests of the producers-sellers and raise the standard of local markets where the first exchange of goods takes place. With a view to achieve this object in each of the regulated market committees are established consisting of the representatives of the growers, traders, local bodies, sellers’ co-operative shops and the state government nominees. Producers are generally in the majority in such committees. These committees are responsible for utilizing the funds for,

Maintenance and improvement of the markets and its buildings. Maintenance of standards of weights and measures. Pay and pension of the staff Payment of interests of loans. Collection and dissemination of market information. Propaganda for agricultural improvement.

Constitution of the committees

The strength of the committee should be such as to accommodate various interests in proper proportion - the committee should be neither too small nor too unwieldy. The committee should ideally consist of 12 to 18 members depending on the size of the market and other considerations. The growers should constitute at least 50% of the seats in the committee. All business transactions are conducted within the market area under the rules and law framed and administered by the market committee. The charges, allowances and deductions that can be levied are fixed and prescribed by the market committee and anyone charging more is likely to have his license cancelled.

The market committees look after the weights and measures and prohibit any use of unauthorised weights and measures and all weighing is done by licensed weighmen. Dealers in regulated markets are required to fix prices in public and keep accounts or returns in such a way that their submission to the market committee at regular intervals is facilitated. Any disputes arising between the sellers and the traders within the market are submitted to arbitration by the “Disputes Committee”.

Meeting The Financial Requirements

To meet its administrative expenditure and in order to create infrastructure facilities in the market area the market committees gets funds from the following two main sources:

Market fees on the produce brought for the sales in the market yard.

License fee, renewal fee of market middlemen functioning in the area.

The finances of the market committee also consist of borrowed funds (government funds), government subsidies and grants and other sources including fines, market fees, and others such as property income in the form of rent on godowns, stalls, canteens, interests on surplus invested in government and/or other securities, sale of forms and other material prescribed by it, sale of grass grown on the yards, sale of manures and cowdung collected on the yards, and miscellaneous fees like the registration fees, license, transfer fees etc.

These funds are utilised for maintenance and improvement of the market and its buildings and maintenance of standard weights and measures. It is also used for collection and dissemination of market information, and also for spreading propaganda for agricultural improvement.

Procedure for sale

In the regulated markets, the produce is brought by different means of transport, particularly bullock carts and trucks or trailers. The business hours are usually between 10.00 a.m to 4.00 p.m and no transactions take place on week-ends or other public holidays. Market hours are prescribed with a view to bring about orderliness in purchase and sale of the produce and to ensure competitive prices.

In some markets, there are common platforms where all daily arrivals are arranged for sale. The common practice for the producers/sellers to take the produce to the shops of their commission agents where it is unloaded and arranged for sale. Usually sale takes place in on of the three ways:

Open Heap System: In this system the produce is heaped into lots in front of the commission agent’s shops if already graded, it is arranged gradewise.

Open Cart System: In this system the produce is not unloaded but kept in the cart itself and the cart is exposed.

Sample System : In this system the commission agent draws a representative sample, indicates details of the quantity, name the seller by putting a slip in the sample exhibit the same as the representative of the bulk. All produce is auctioned and the highest bidder gets it, the produce then is delivered by licensed weighmen and put into gunny bags, stitched and delivered to the buyer. The settlement of account and payment has to be made on the same day. The sale slips are prepared by the commission agent in triplicate- one for the seller, one for the market committee and one for his own record. The market fee is levied on the ad volerem basis and is collected from the sellers through commission agents on the basis of the sales slip (known as Sale-Patties).

NUMBER OF WHOLESALE ASSEMBLING AND REGULATED MARKETS

S.No. States.WholeSale Market

Regulated Principal Markets

Markets Sub-markets

Total

(1) (2) (3) (4) (5) (6)

1.Andhra Pradesh

823 244 579(1) 823

2.Assam

172 16 19 35

3.Bihar

443 122 706 828

4.Gujarat

380 156 224 380

5.Haryana

275 100 175 275

6.Karnataka

444 124 320 44

7.Madhya Pradesh

633 292 292 584

8.Maharashtra

838 257 570 827

9.Manipur

20 - - -

10.Meghalaya

111 - - -

11.Nagaland

16 - - -

12.Orissa*

163 46 87 133

13.Punjab*

667 143 524 667

14.Rajasthan

384 134 250 384

15.Tamil Nadu

300 270 - 270

16.Tripura

84 21 - 21

17.U.P.

645 262 383 645

18.West Bengal*

214 41 415 456

19.Delhi

25 7 10 17

Importance of Regulated Markets

The economic and social benefits accruing to the cultivators, as a result of regulation of markets, may be briefly enumerated as below:

Rationalisation of Market Charges: As a result of the rationalisation of market charges alone, the producer seller is benefited to the tune of 3 to 5 rupees for every hundred rupees worth of produce marketed by him in regulated markets. This is very beneficial to the tiller of the soil.

Change in the Social Behaviour: A change has also been brought about in the social behaviour of the influential, powerful and economically well-off trading sections towards the illeterate, ignorant, indebted and economically backward cultivators by constant diversion of their attention to the canons of fair trading and responsibilities that devolve on the licensed traders and commmission agents of the market committies.

Market charges are clearly defined and specified. Excessive charges are reduced and unwarranted ones are prohibited. Before regulation, market charges against the farmer-seller in 3 markets averaged 8.65 percent of the value of the produce. After regulation they averaged 2.14 percent for an average reduction of 6.51 percent point. The reduction was nearly 80 percent of the original charge.

Fair Dealing: Market practices are regulated, and the undesirable activities of the market functionaries are brought under control so that a fair dealing is assured. No market functionary or no other person shall make, allow, receive or recover any deduction in weight or payment or any other allowance in respect of any other transaction relating to notified agricultural produce.

Correct Weighment: Correct Weighment is ensured by periodical inspections and verifications of scales and weights. Weighment is done only by the licensed weighman.

Settlement of Disputes: Disputes arising between producer seller and traders by reason of the quality of the producer, accounts and deductions of unauthorized charges are solved by the sub-committee of the market committee this avoid the legal complications and unnecessary expenditure. It safeguards the interests of the seller and smoothens business by creating good relations between sellers and buyers.

Reliable Statistics: Reliable and up to date market news are available to the sellers for this purpose, not only the notice boards for daily bulletins and newspapers are maintained but also the radio set, along with the loudspeakers are arranged in the yard for decimating market news. At the same time these markets are a source of most reliable statistics and have been rendering a valuable service in planning market programmes.

Provision of Facilities: Proper market yards with full facilities like sheds for the sale of produce, cart parking place, water troughs and cisterns for cattle, better grading and warehousing facilities for the accommodation of agricultural produce are duly provided by the Market Committees.

Grading facilities: For helping to promote orderly marketing, regulated markets provide facilities for grading. For eradicating marketing evils, grading is the only weapon. Some commodities are being graded under AGMARK specifications to provide pre-tested quality produce to the consumer and to ensure competitive prices to producers.

Thus, regulation of markets has been a boon to the agriculturists. It has not only introduced a system of competitive buying, helped to eradicate undesirable malpractice’s, rationalised market charges, standardised weights and measures, protected cultivators from unauthorized deductions, and unduly low quotations, but has also developed a machinery for securing impartial settlement of disputes between the parties taking the overall picture, regulated markets have produced a wholesome effect on marketing structure and have raised the efficiency of marketing at the primary level.

Linkages in Agricultural Marketing

Agricultural marketing is closely linked with the network of Primary Agricultural Credit Societies (PACS) as it provides credit-marketing linkages to the members. They are linked onwards to the state and national level organizations. However, there exists a parallel institutional set-up of regulated markets in commercial towns under the control of State Agricultural Marketing Boards. The following diagram exhibits the network of agricultural marketing in the country,

DMI – Directorate of Marketing and Inspection

SAMB – State Agricultural Marketing Board

PMY – Principal Market Yard

SMY – Sub-Market Yard

RM – Rural Market

NAFED – National Agricultural Cooperative Marketing Federation

Statefed – State Cooperative Marketing Federations

Weights, Measures & Certification

DMI, GOI

SAMBs

PMY

SMY

RMs

Policy Guidance

NAFED (apex body)

Statefed

Unions

Primaries

Informal Groups

Private Traders

Wholesaler

Retailer

Consumer

Processor

Exporter

NAFED

National Agricultural Cooperative Marketing Federation (NAFED) has been entrusted with the task of coordinating and promoting the trading and marketing activities of its members in agricultural and other commodities. Nafed was set up in 1958 as the apex body of marketing cooperatives of the national level. It has the registered office at Delhi and operates over the entire country.

Objectives of Nafed:

To facilitate the working of its affiliated cooperative institutions. To coordinate and promote the marketing and trading activities of its

members in agricultural commodities, articles and goods. To undertake or promote either on its own or on behalf of its member

institutions or government, inter state, intra state and international trade and commerce in and other commodities, articles and goods and,

To undertake supply of agricultural requisites like seed, manure, agricultural implements, consumer goods, etc.

Present membership of Nafed consists of 16 state level cooperative marketing federations, 5 marketing federations of union territories and one regional marketing federation. The National Co-operative Development Corporation (NCDC), a Government of India undertaking, is also a share holder of Nafed. Nafed has established branches in important terminal markets such as Chennai, Mumbai, Kolkata, and Delhi. Sub offices have also been opened at Cochin, Nasik, Guwahati and Hyderabad. Regional offices are being opened in Uttar Pradesh, Madhya Pradesh and Rajasthan to establish effective liaison.

Functions of nafed:

Marketing of food grains: The food corporation of India has agreed to give a positive preference to co-operatives and also extend financial assistance. Guarantee cooperatives are being assigned larger role in procurement of wheat in the state of Uttar Pradesh, Punjab, Haryana, etc.

Foreign trade: For regulated exports of commodities grown in the different states, the agency of Nafed has been found suitable for no artificial increase in the price takes place due to purchases not being made in terminal markets and exports are effective only if the internal conditions so demand.

Canalized exports: The government of India has canalized the exports of sensitive items like onions, sesamessed, HPS groundnuts and pulses through Nafed. Once growers of large cardamom were assured by remunerative prices and its exports were decanalised. Simultaneously per unit value realization in export earnings are increased. Substantially, due to the increasing role played by Nafed in helping capacity utilization of cooperative, oilseed producing and other types of processing units, cotton extraction, etc were able to increase their exports.

Coordination with commodity operations: A number of commodity corporations like Food Corporation, Jute Corporation, and Cotton Corporation have been set up. The business relationship between them is being strengthened so that these organizations work to their mutual advantage for the benefit of the farmer.

Inter state trade: this involves purchase from the growers at the harvest time at various levels either by themselves or through primary credit societies and selling such purchase at terminal consuming centers by expanding inter state trade.

Development of managerial efficiency: Realizing the importance of trained managerial staff and with a view to reduce the dependency of marketing cooperatives on the personnel borrowed from state cooperatives department a scheme for building up a key person for marketing and processing societies was implemented during the fourth period plan

NAFED thus plays an important role in developing cooperative marketing of agricultural produce.

Problems & Measures

Though the regulated markets are a boon to the agriculturists, there are a number of problems in the functioning of regulated markets. Some of the core problem areas are as follows:

Problems of location and publicity : Most of the farmers are ignorant of the benefits of regulated markets.the present regulated markets are confined to taluka headquarters and are not accessible to all the farmers living in far villages of the taluka .due publicity is also not given regarding the presence of regulated markets .hence the farmers are unable to approach such markets.

Presence of commission agents: commission agents have become indispensible to the farmers to market their products .the commission agents continue to flourish in the regulated markets .they charge a hefty commission.

Payment and auction system : farmers are denied prompt payment by the traders .due to thisthey find it very difficult to meet their working capital needs .the auction system has a number of defects for which the farmer has to bear the loss.

Vigilance and supervision: the officials in the market yard are not keen on the transactions and as a result the faith of the farmer is not firm.it is also found that often the traders violet the rules and regulations in the market transactions .there are various loopholes in the constitution of the market committees .there is also a lot of political interference in maaaany committees .due representation is not given to all the categories of farmers in the committee.

Lack of incentives : the incentive provided are not sufficient .higher market charges are levied on small and marginal farmers whose produce constitute a major portion of the total produce .due to illiteracy and ignorance the farmers are unaware of the subsidy ,concessions and incentives provided to them by the government .

Defective transactions : the buisness of the regulated market is confined only to a few fixed hours on the working days and consequently the farmers coming from far off places find it difficult in reaching the market yard in time .as most of the farmers are illiterate and ignorant .they find it difficult to find exact dates,days and hours of the transactions .even the daily

price reports are not despatched to all the important villages in their jurisdiction.

MEASURES TO REMOVE THE DEFECTS OF REGULATED MARKET:

Due publicity: the officials should give a vidal publicity to the regulated markets and their usefulness to the farmers .they must also create a favourable image and positive outlook among the farmers .it is also necessary to open more regulaated markets and sub-markets.

Abolition of commission agents : the agricultural market committees should get rid of the commisssion agents who claim a major chunk of the farmers income .it is also necessary to bring about changes in the by-laws of the agricultural marketing yards .it is inevitable to protect the interest of the farmers in order to safeguard their survival.

Regularity in payments: in order to assure prompt payment in the regional markets ,the agricultural market committees should insist the license traders who transact buisness in the yard to deposit a fixed amount for the quick payment to the farmers in case of failure of prompt payment.

Proper supervision and vigilance : it is necessary that the officials should take keen interest in the transactions .this step will encourage the farmers in getting their farm produce to the market yards and also their faith and confidence in the functioning of the market would be strengthen. The agricultural market committees should taken stern actionscharges ,loading-unloading charges, etc.are borne by farmer producers in some others by the buyer and in others equally.

Information : market intelligence has been strengthened.licensed functionaries are required to submit complete details of all transactions taking place everyday.this enables the committee to know the exact quantity of arrivals ,sale,stocks and prices of different commodities which are published on notice boards everyday.this information is further disseminated to hinterland villages of market which are helpful to farmers in judging the best time to go to the market when he can obtain best possible prices.

Physical facilities:facilities like rest house,canteen,drinking ,water,cattle shed, etc. are provided in regulated market for the benefit of farmers and their cattle.

Grading and standardisation: facilities for grading and standardisation of the produce brought for sale by the farmer producers are provided .Sizes of packing for various commodities are also stipulated by the market committee eg.180 kg bales for cotton,etc.

Establishment of godowns:central and state warehousing corporations are expected to establish godowns near the market for benefit of farmer –producers.in the eventuality of prices being low or if the produce cannot be sold on the day of arrival for any reason ,they can store it in these godowns at the charges fixed by warehouses.

In short ,’regulation of markets’ has really helped the farmers in cutting down the marketing charges and also exploitation to an extent .studies conducted on the impact of regulated markets revealed that ,number of farmers selling the produce in such markets has increased in addition to realisation of better prices .thus,the establishment of regulated markets has conferred tangible and intangible benefits on the faarmers in terms oof avoidance of mal-practices and better price realisation.

Corporatisation of Agricultural Markets

For well over 50 yrs now, Indian agriculture has been stuck in a rut. At one end, farmers lack access to quality inputs, credit and knowledge that will help them improve quality and productivity. At the other end, the output side is characterized by middlemen like consolidators and commission agents who gnaw away at the margins. The result- farmers end up with just 30-40 % of the price one pays.

Over the last three years, an interesting development is quietly taking place on the fringes of India’s Farm Sector. Some of India’s Inc.’s biggest names have begun experimenting with ways to tap the lagre opportunity across the agri value chain. These players are spawning innovative business models which will leverage their knowledge of agribusiness into new areas. Some of the examples are given in the following tables :

One-Stop Shops

Agri-Initiative

Objective Business Scope Roadmap

Tata Kisan Kendra

Disintermediate distribution of fertilizers; enhance brand

Retail agri inputs, rent out agri-implements

800 agricentres in UP, Haryana & Punjab

Mahindra Krishi Vihar

Create a business that helps the group keep growing

Retail inputs, rent out implements, advisory services, drying of crop

200 agricentres in 200 districts; each hub can have a number of spokes

Rallis Kisan Kendra

Tap business opportunity by addressing farmers’ concerns

Commission on output sold, retail of inputs, advisory services

Validating results by experimenting in different crops, across regions.

The Mixed Bag

ITC’s Intl. Business Division

Create an e-sourcing model by working closely with customers

2-3% commission each for ITC and the Sanchalak/coordinator

Eventually cover 10 states with soya, wheat, maize, coffee.

Nagarjuna’s ikisan.com

Create an infomediary and e-marketplace in the agri space

Enrolling fee from farmers, input dealers, commission on output.

Farmers can access ikisan through 11 centres

EID Parry’s Indiagriline

Catalyse e-commerce in agricultural & non-farm products

Use partnerships to bring in savings from new economy

20 e-centres at Nellikuppam in Tamil Nadu.