Agricultural Marketing Management System

-Improving the Quality-

By

Dr. B. K. Paty

Director (OSPM), MANAGE

Outline of the Presentation

• Reforms – No ‘one size fits all

approach’

• Service consciousness –

• Linking Production with Marketing

• Collective responsibilities

• Removing the constraints

Reforms – No ‘one size fits all’

• Model Act provisions

• To be calibrated as per the State needs

• Amendments in forms – Not in substance

Service Consciousness

• Mandies deal with service products

• Characteristics – Intangibility, Simultaneity, Perishability

• Service Consciousness of Mandi Functionaries – Competitiveness

dealing with a service product

• Marketers of services face a bigger challenge due to unique nature of services-intangibility, heterogeneity, inseparability, perishability

• Go beyond 4 Ps- product, price,promotion and distribution (Place) .Also – people,

– process and

– physical evidence

Internal marketing

External marketing

Organization

Internal Marketing

Front Line

EmployeesCustomers

Key Marketing issues

• The unique characteristics of services present some key marketing issues– Managing differentiation amongst services

(offer, delivery, image, service premises, packaging, personnel, tools and equipment used, customer, convenience, name of the organisation)

– Managing productivity (Commitment, High standards , Monitoring system, Customers’ complaint )

– Managing service quality(technology,selection & training, standardisation of services, customer’s involvement, employees’ skill utilisation)

Linking Production with Marketing

• Integrated District Plan – Strategic Research and Extension Plan (SREP)

• Marketing Extension – Responsibility of all line departments

• The SREP document will be a perspective plan for next 10-15 years

• Ensure optimum utilization of resources• Help in deciding precise marketing intervention

Collective Responsibilities – All line Departments

• Advice on production planning:- careful selection of the crop from marketability viewpoint-internal or export

• Marketing information:- price and arrivals, forecasting of market trends, demand of other markets, facilities available in the target markets, quality requirements, market fees etc.

• Securing markets for the farmers:-Awareness about regulated market laws and reforms, Information regarding procurement by Govt. agencies, contract farming arrangement for cash crops with wholesalers, processors etc.

• Advice on improved marketing practices:- packaging, appropriate storing methods, standardization and grading and other post harvest management practices such as maintenance of quality, awareness about post-harvest losses etc.

(Contd.,)

Collective Responsibilities – All line Departments

• Advice on establishing and operating markets:-Farmers groups to set up and run their own markets within framework of rules

• Processing and value addition:- Farmers to be educated about value addition through primary processing

• Group action:- Promotion of informal groups and Self Help Groups(SHGs)

• Marketing Credit:- Educating farmers about different schemes of marketing credits, Advice on warehousing with pledge finance scheme

• Problem solving methods: micro-level• Marketing extension for export market: WTO

implications, Codex, HACCP, Euro gap standards, Awareness on ill effects of pesticide/insecticides residue etc.

New Role of APMCs

• Shift from salesmanship to marketing • Dealing with Service product-intangibility,simultaneity• Marketing extension• Promotion of direct marketing, contract farming, processing-

leading to export, better returns to farmers, reduction of transaction costs etc.

• Promotion of grading and standardization• Making the traders association responsible• GAP,HACCP,GHP,traceability etc. especially from export

point of view• Professionalisation of management• Transparency in dealing/ auctioning• Providing infrastructure and efficient services ( Promotion of

PPP mode)

Issues Action Needed

• Predominantly marginal or small farmers

• Small quantities of marketable surplus & limited bargaining power

Aggregation of produce needed for value addition & bargaining power Farmers to have better market access through SHGs, Cooperatives, Farmers’ Companies, etc. Aggregation/ Collection/ Value Addition Centres to be set up near farm gate.

• Poor availability of markets (predominance of APMCs)

Amendments in State APMR Acts to allow & facilitate alternate channels of marketing with an open choice to farmers Direct marketing, farmers’ markets, contract farming, private markets, modern terminal markets, e-trading, etc.

Reviewing the Existing Constraints

Issues Action Needed

• Inadequate infrastructure in wholesale markets/ rural primary markets

• Modernization of existing markets with public investment or through PPP & facilitating setting up of modern private markets

• Lack of fair price discovery mechanism

• Providing facilities for electronic auction in wholesale markets

• Setting up of e-trading platforms (both futures & spot) and

• Mitigating price risk through contract farming

Reviewing the Existing Constraint

Issues Action Needed

• Multiple and exploitative intermediaries – low returns

Fragmented supply chain, poor cold chain & high post-harvest losses

Encouragement to shortening of supply chain/ vertical integration through direct marketing, organized retail chain Incentives to integrated cold chain infrastructure with an end to end approach (Terminal Market Complexes).

• Lack of cleaning, grading, packaging & quality certification facilities

Promotion of aggregation/ consolidation in various waysIncentive for grading &

quality assurance

infrastructure Creation of awareness

about quality & food

safety standards.

Reviewing the Existing Constraint

Reviewing the Existing Constraint

Issues Action Needed• Multiple agencies involved in quality confirmation & regulation of exports

Creation of single window quality confirmation (Food Safety & Standards Law already in place)

Single window export clearance systems (APEDA Law amended).

• Limited access to market information and marketing opportunities available

Enriching Marketing Information Network, strengthen market intelligence delivery under PPP Activation of Common Service Centres (CSCs) in villages for easy access to information.

Conclusions

• Utilize ATMA as a collective forum

• Strength lies in Unity

• Key to success lies in holistic approach

Thank You