Synopsis Gyan

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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