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SYNOPSIS ON
A STUDY ON VEGETABLE MARKET CHAIN
Organization- OFAI
GOA
Guided by: - Prepared by:-Dr. Himadri Sinha Gyanendra Dutta Verma
Professor Rural Development
XISS Roll No. - 26
XAVIER INSTITUTE OF SOCIAL SERVICEP.B. No. 7, Purulia Road, Ranchi
JHARKHAND
2008-10
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Marketing channel/chain-
A marketing channel is a set of independent organization involved in the
process of making a product or service available for use or consumption.
Market channel is not just one firm doing its best in the market, whether
that firm is a manufacturer, whole seller or retailer, rather, many entities are
typically involved in the business of channel marketing. Each channel
member depends on the other to do their jobs. Distribution frequently takes
time to accomplish and event when a sell is finally made, the relationship
with individual is usually not over. The purpose of channel marketing is to
satisfy the individual in the market. Their goal is the use or consumption of
the product or service being sold. It is of critical important that all channelmember focus their attention on the end user.
Market chain for vegetable marketing-
Vegetable are highly seasonal and different vegetable comes to market in
different period. In case of vegetable the adjustment of production i.e. areaplanted is much easier to price chain, as they are field crop with a growing
period of hardly 3 to 4 months. In vegetable trade, the commission agents
play an important role and the most important marketing channel in
vegetable trade.
Producer commission agent retailer consumer
The horticulture products generally call for a complex marketing system
because of their variety, perishability and grading for quality. The market for
fruits and vegetable has two segments of buyers: local or domestic buyersand exporters this strategic function of a marketing system offer a grower a
convenient outlet for his produce. The channel through which fruits and
vegetable moves from grower to consumer varies widely as the marketing
pattern is governed by the local tradition. The channel along which the
largest volume of the produce moves is pre-harvest contractor, commission
agents and distributors. The distributors are the merchant dealing with whole
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sales trade in hinterland. The forwarding agent supports the whole-seller and
exporter in supplying the produce from the growers. Some co-operative likes
Hopcoms( Horticultural Produce Co-operative Marketing Society) have a
corporate link with the processing unit of the own and in private sector
which ensures the procurement of supply made in the market to a large
extent.
The marketing channel for fruits and vegetable are given below:-
Primary Pre-harvest Processor Cooperatives
wholesaler contractor
Hawker Commission agents/
Wholesaler Wholesaler
The studies conducted on marketing of different vegetable in different states
have revealed that majority of cultivators i.e. more then 60% have sold their
crops through their commission agents. Selling to pre-harvest contractor was
observed on a small scale in case of only a few vegetables like cabbage,
cauliflower and carrot and in case of vegetable it was found that selling to
pre-harvest contractor was most undesirable. The analysis of cost associated
with the sale through commission agents has shown that major portion of
marketing costs was accounted by the commission charges. This clearly
shown that selling through commission agents is also that not much
desirable.
PRODUCER
CONSUMER
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Marketing of fruits and vegetable-
The diversity of physiographic, climatic and soil characteristics enables
India to grow a large variety of horticultural crops- fruits, vegetable, flower,
spices, aromatic and medicinal plans, plantation crops etc. India is thelargest producer of fruits in the world and second largest producer of
vegetable. In India more then 100 million tonnes of fruits and vegetable are
produce and marketed through a number of rural, wholesale and terminal
markets every year. The market reforms in agricultural commodities have so
far been limited mainly to food grains only. The marketing of fruits and
vegetable has so for received little attention of the government. At present,
there are a large number of intermediaries in this trade between the producer
and consumers which has resulted in a wide gap in the producer and
consumer price of these commodities which need to be reduced to enable
farmer receives remunerative prices for their produce and boost theirproduction and consumption in the country.
The union government has not made any regulation for the marketing of
fruits and vegetable applicable all over the country; however, some of the
states governments have enacted laws and acts. The marketing of fruits and
vegetable in under regulation in Rajasthan, Maharashtra, Bihar, Delhi, Utter
Pradesh and Karnataka and outside any regulatory purview in Tamil Nadu,
West Bengal and Jammu and Kashmir. At present the wholesale markets for
fruits and vegetable on a country wide basis are concentrated in 10 largecities viz. Delhi, Calcutta, Bangalore, Chennai, Mumbai, Jaipur, Nagpur,
Vijayawada, Lucknow and Varanasi. These cities account for arrival of 75%
of vegetable marketed in major urban area in India. Delhi, Calcutta,
Mumbai, and Pune alone account for the arrival of 55% of vegetable. Delhi
and Calcutta account for transit trade in 40% fruit and 13% vegetable, Delhi,
Calcutta and Mumbai received 59% of total fruits and 46% of vegetable.
In a study, carried out in 1998, it was found that cities with more then 20
lakh population account for transited in 66% of fruits and vegetable. In 48
cities with a population of more the five lakh(as per 1981 census). Their
work 102 fruits and vegetable market of which 54 were regulated. Thewholesale trade in fruits takes place in 65 markets and in vegetables in 81
markets. Each market on an average serves a population of about seven
lakhs. The prices in this market however are governed by demand and
supply principles with the regulating market committee not playing any role
in price correction or arresting wide price fluctuation.
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Indias agro exports in 1997-98 are expected to have fallen to rupees 23690
crores from rupees 24241 crores in 1996-97. in 1997-98 the exports
comprised of sereals and pulses rupees 7520 crores, oil seeds, oil and oil
meals rupees for 4315 crores, plantation crops(tea,coffee, cashew, tobacco
and spices) rupees 7292 crores, sugar, molasses, jaggery and alcoholic
drinks rupee 1695 crores and fruits, vegetables and other processed foods
rupees 4020 crores.
Purpose:-
The purpose of this research is to understand about various modes of
distribution and intermediaries involved in market chain of vegetable
marketing, their role and contribution and also various issue in vegetablemarket chain.
Objectives:-
Based on the purpose of the study following objectives can be enumerated
for research activity-
Main objectives-
1. To collect information about various mode of distribution through
which vegetable are marketed.
2. To know about the role and contribution of various agents involved in
market chain.
3. To generate information about problems faced by various agents
involved in vegetable marketing.
4. To get information about the share of different agent involved in
vegetable marketing.
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Reference:-
1. Marketing Channel by Coughlan-Anderson-Stern&
Ansary.
2. Rural marketing in India by K.S. Habeeb-ur-Rahman3. Vegetable Production in India by D.V.S.Chauhan.
4. Co-operative Marketing of Fruits and Vegetable in India by
Subrahmanyam and Gajanana.
5. Problem of Small and Marginal Farmer in Marketing of
Fruits and Vegetable by Ajit Singh