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    CHAPTER NO.1

    INTRODUCTION

    Agriculture is the single largest sector of Pakistans economy. It is a dominant driving

    force for growth and the main source of livelihood for 62% of the countrys population. It

    accounts for 21% of the Gross Domestic Product (GDP) and employs 45% of the total work

    force. As such agriculture is the centre of the national economic policies and has been designed

    by the government as the engine of national economic growth and poverty reduction. The

    performance of agriculture sector has been weaker than target during 2009 as against the target

    of 3.8% and last years performance of 2%. Agriculture this year is estimated to grow by 4% on

    account of bumper wheat, rice and maize crops estimated as 23.42, 6.9 and 4.0 million tones

    respectively. Major crops accounting for 32.8% of agriculture added registered stellar growth of

    7.3% against 7.7% last year (GOP, 2010).

    Traditionally, the government establishes wholesale markets. There are stereotype designs

    for the wholesale market. Commission agents are allotted/sold space for shop, which are

    constructed at their own on almost standard pattern. No space is specifically allotted to sub

    wholesale or retail activity, which seems to an essential component of sale and purchase inside

    the wholesale markets (FAO, 1995).

    In Punjab there are 152 grain markets, 135 market committees. These wholesale grain

    markets are working satisfactorily, primarily for the benefit of growers. More grain markets are

    still needed to provide farmers with effective and profitable marketing outlets for their produce.

    The private sector plays an important role in the management, operation and control of

    wholesale markets. The wholesale marketing system in the private sector is comprised of number

    of institutions. However, for the growers, Commission Agent is the major institution because

    he is the person who is in direct contact with growers at market place. There are many instances

    in which commission agents have been reported to be charging higher marketing charges than is

    allowed under the law. These mainly include Chung, thalla, high rates of commission, high

    interest on advances etc. Although the government has established a system for support prices of

    selected agricultural crops but that too is manipulated by arhtis (Commission Agent) who are

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    involved in the procurement of major food crops from farmers and then selling the same to the

    procuring agencies. The situation is further aggravated by congested and poorly organized

    market places leading to higher marketing costs due to long waiting and delays (Mahmood, A. et

    al, 2002).

    Market committees are the statutory bodies, set-up by the government for day-to-day

    management of wholesale markets. A market committee is constituted by member drawn from

    amongst farmers (always in leading majority), traders, market operators, consumers and

    government nominees. The committee members are appointed by nomination while the chairman

    and vice-chairman are appointed through election from amongst the members. The Agricultural

    Produce Market Act; 1939 is the basic document that grants authority to the market committees

    to control and regulate various operations in the wholesale market. This act has been amended

    from time to time by the Provincial Governments to suit to their respective socio-economic and

    political conditions (GOP, 1988).

    It has been reported that wholesale marketing system of agricultural produce in general

    and horticultural produce in particular, is often inadequate in Pakistan. The existing system

    neither maximizes benefits to producers nor to consumers. Corrupt market intermediaries appear

    to fleece upon the small incomes of both the farmers and the consumers. It occurs due to the

    existence of the number of market imperfections viz., poor market management, poor market

    operation, poor market regulation etc. The wholesale markets are usually congested due to

    unsuitable location or an inappropriate mixture of wholesale and retail functions or as a result of

    mismanagement. The problem is further compounded by poor market organization as a result of

    defective planning, over-crowding, traffic jams, poor cleanliness and poor hygiene, lack of

    discipline, encroachments, unfair trade practices, poor and ineffective legislation etc. The reality

    of wholesale markets in country is the most of the basic principles of efficient wholesale

    marketing are not adhered to delays (Mahmood, A. et al, 2002).

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    The present study has been planned with the purpose to seek information on the working

    of wholesale grain markets in Punjab in the context of these allegations. In particular the research

    seeks to explain the status of Faisalabad wholesale grain market. The specific managerial and

    operational aspects, physical facilities in the market, trade practices, and performance of public

    and private sector institutions shall thoroughly be examined and the factors influencing

    efficiency of the wholesale market investigated.

    The study is planned with the following objectives:

    OBJECTIVES

    1. To study the operational performance of Faisalabad wholesale grain market.2. To identify the major constraints in the wholesale market management, operation and

    planning.

    3. To find out marketing margins of various market functionaries in the wholesalemarketing of major items.

    4. To suggest measure for improving the working of wholesale grain markets in Punjab ingeneral ant that of Faisalabad wholesale grain market in particular.

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    CHAPTER NO. 2

    REVIEW OF LITERATURE

    Review of literature means to look again (re-view) at the literature in the related areas

    (Leady, 1989). It highlights the findings of related studies and eliminates the possibilities of

    unnecessary duplication of efforts.

    Mushtaq (1971), in case study entitled An Economic Appraisal of Institutional Frame

    work in the Marketing of Agricultural Commodities concluded that marketing margin was an

    increasing function of a number of intermediaries. This should apparently suggest that a decrease

    in marketing margin could be achieved by eliminating some of the intermediaries from the

    existing marketing channels. But after the quantification of the various services rendered by all

    the intermediaries, it became clear that except for the village dealer, the profit of all other

    intermediaries was justifiable under the present marketing conditions.

    Siddiqi (1979) conducted a study on Marketing of Agricultural products in Sindh in order

    to assess the complexity of marketing organizations. The study examined the infrastructure of

    marketing system, estimated production cost and marketing margins, analyzed price trends and

    computed per unit marketing cost and the break down of consumer spreading on selected fruits,

    vegetables and pulses.

    Nigam (2000) conducted a study on the performance of Agricultural wholesale market in

    India. He observed that most of the agricultural commodities markets operate under the normal

    forces of demand and supply and disposal of produce in the wholesale market were through open

    auction. While studying the problems, it was found that the shortage of unloading and parking

    areas, weighing facilities, storage areas, places to stay overnight due to marketing delays were

    major problems.

    Jatiyanuvat (2000) studied the agricultural wholesale marketing system in Thailand. He

    found that middlemen mainly determined the marketing systems of agricultural products in

    Thailand. He observed that there was a tendency that farmer could not negotiate favorable price

    because the products of good and bad qualities were mixed. Auction system with product

    grading could solve this problem. He observed that the cooperatives hardly played and role.

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    CHAPTER NO. 3

    METHODOLOGY

    The present study should have been conducted at Punjab level. Keeping in view the

    limitation of a students researcher in terms of finances and time, the scope of the present study

    was, however, confined to Faisalabad district.

    The research was undertaken on the following aspects of wholesale grain market.

    1. Wholesale Market Management.2. Wholesale Market operations and Regulations.3. Wholesale Market Planning.

    A.WHOLESALE MARKET MANAGEMENTy MANAGEMENT

    The managerial control of wholesale markets normally vests in the hands of the market

    committee (members of which are elected from amongst the growers), market intermediaries and

    others nominated by the government. The present research investigated managerial aspects of the

    wholesale market. The research looked at various aspects such as constitution and composition

    of market committees and the role of the market committee in discharging various functions. The

    limitations faced by the market committee in discharging the assigned role were also noted.

    B.WHOLESALE MARKET OPERATIONS AND REGULATIONSy MARKET OPERATION

    Different activities are being carried out in the wholesale grain markets. As such, buying,

    selling and handling of produce, brought by the producers in the market are the major operations

    carried out in the market. Data on various market operations viz.; transaction methods, rentals,

    fees and charges, produce handling procedures, market information etc, is collected by

    interviewing a selected number of the growers, commission agents, pharias and retailers.

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    y MARKET REGULATIONSWholesale markets are regulated under agriculture produce market ordinance, 1978 &

    general rules, 1979. Several amendments in the ordinance (rule) have been made overtime. The

    research investigated the relevance of various provisions of the ordinance. Under the prevailingsocio-economics conditions of the market.

    C.WHOLESALE MARKET PLANNINGThe spectacular growth of population in Faisalabad District has generated the need for

    proper planning of wholesale markets. This aspect has received paramount importance in view of

    expansion of the city and migration of population to the district from rural areas. The research

    sought to investigate various steps for proper planning. Various managerial, operational and

    planning aspects of market were studied by collecting primary data.

    SELECTION OF RESEARCH AREA AND RESPONDENTS

    The research was conducted in the wholesale grain market of Faisalabad, which is a major

    international grain market.

    SELECTION OF RESPONDENTS

    Five growers of major grains producer wheat, rice maize, Bajra and gram, were selected

    from the district at random. Five commission agents and pharias operating within the premises of

    Faisalabad grain market were also taken at random. Five retailers purchasing grains. Three

    market committee employees i.e. Secretary Market committee, inspector and sub-inspector were

    interviewed for the collection of necessary data on management, operation, control and

    regulation of the wholesale grain market.

    COLLECTION OF DATA

    Separate questionnaires were developed for each group i.e. producer, commission agent,

    pharia, retailer and market committee employees. The questionnaires were filled in by the direct

    interview method with respondents.

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    DATA ANALYSIS

    Data collected were edited, tabulated and analyzed by employing appropriate statistical

    tools and the share of producer and different market intermediaries in the consumer rupee was

    calculated. In addition, marketing margins of commission agents, pharias and retailers wereworked out by employing relevant statistical tools.

    A. ARITHMETIC MEANAverage= X =

    X/ n

    Where:

    X = value of the variable

    N = Number of observations

    X = Total sum of variable

    B. DETERMINATION OF MARKETING MARGINS OF MIDDLEMENMarketing margins of a middleman involved in the marketing of grains is the difference

    between total payments (costs + purchase price) made by a marketing middleman and prices

    received by him (sale price of grains). This was calculated by using these methods.

    Absolute margin of a middleman (Am)

    Am = Pr (Pp +cm)

    Percentage margin of a middleman (Pm)

    Pm = {Pr (Pp + cm) x 100} / Pr

    Am = absolute margin

    Pp = purchase price of a middleman

    Pr= retail price of a middleman

    Cm = total cost of a middleman

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    C. DETERMINATION OF TOTAL COST OF MARKETINGTotal cost incurred on marketing by producer and market functionaries involved in sale

    and purchase of grains till it reaches to ultimate consumers were computed by using following

    simple expressions:

    Ct = c1 + c2 + c3 ++cn

    Ct = total cost

    C1 = cost of first item

    C2 = cost of second item

    Cn = cost of nth item

    D. PRODUCERS SHARE IN CONSUMERS PRICEIt is the price received by producer expressed as percentage of the retail price (i.e. the

    price paid by the consumer). It was calculated by using the following formula:

    Ps = Pf / Pr x 100

    Where

    Ps = producers share in consumers rupee

    Pf = producers price

    Pr = retail price

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    LIMITATIONS

    Following limitations were encountered during the course of research study:

    1. The respondents usually hesitated in providing the needed information and reservedespecially while answering questions about their incomes, profits and about their actual

    volume of business. They concealed information due to various fears, regarding increased

    taxation on income and/or government measures to be taken for an effective tax recovery

    system.

    2. Major restrictions encountered in data collection were lack of written records with almostall market functionaries involved in marketing process. There was a general tendency to

    inflate expenditure and deflate incomes by the market functionaries. However, every

    possible effort was made through cross-questioning in order to minimize the extent of

    errors.

    3. Commission agents were reluctant to tell their accounts, although they maintained it.Pharias and retailers did not keep record about their incomes and expenditure. The

    interviewer had to relay upon their verbal statements and personal assessment.

    An utmost effort was made to gain good degree of confidence and to elicit requested

    information during the process of data collection by introducing the respondents that the

    researcher was a university student and not a representative of any government department.

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    Chapter No. 4

    RESULTS AND DISCUSSION

    This chapter presents findings of research on the working of wholesale grain market

    Faisalabad. The managerial operational & planning aspects of the market are thoroughly

    thrashed & loopholes in this regard outlined.

    MARKET ORGANIZATION

    The organization of wholesale market largely depends on local socio-economic

    conditions and political situation of a given region. Market committee Faisalabad purchased

    the land for the establishment of new wholesale grain market in 1979-80. Commission agents

    were allotted space on property right basis for the construction of shops to build on standard

    design. The ownership of auction platforms, parking places etc. was, however, vested eighth

    the government.

    BRIEF PROFILE NEW GRAIN MARKET FAISALABAD

    A new grain market was established on Dajkot road near at the end of Jhang bazaar,

    on an area of 15 Acer, 1 Kanal and 14 Marla on the state land by the market committee

    Faisalabad, where plots were allotted through open auction to the commission agents on

    property right basis.

    Table 4.1:Salient Feature of New Grain Market Faisalabad.

    Market Location Regulated/non-

    regulated

    Operational

    area

    Date of

    operation(year)

    Managing

    authority

    New grain

    market

    Dajkot road

    Faisalabad

    Regulated

    (public)

    15 Acre, 1

    Kanal, 14

    Marla

    1980 Market

    committee

    Faisalabad

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    PHYSICAL FACILITIES IN THE MARKET

    New grain market has been established with the financial assistance of market

    committee Faisalabad. The construction work of the market started in 1979. The work was

    completed within one and half year. Physical facilities in the market are very good there is a

    proper approach road in the market, Mosque and Banks in the market.

    Table 4.2: Provision of Major Physical Facilities in the Market .

    Sr. # Infrastructure Number

    1. Shops 5312. Covered auction platforms Nil3.

    Open auction platforms 283

    4. Offices 015. Roads 056. Truck stand Nil7. Cycle stand 028. Animal shed Nil9. Guest-house Nil10. Dispensary Nil11. Mosque 0212. Weighing bridge Nil13. Water tank 0114. Toilets 0415. Bank 0516. Post office Nil17. Approach roads 03

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    AREA / SPACE ALLOTTED TO VARIOUS MARKET FUNCTIONARIES

    IN THE MARKET

    Commission agents, pharias and retailers were the main categories of middlemen

    operating in the market. The data on area allotted to these market functionaries by the market

    committee are presented in table 4.3.

    Table 4.3: Area / Space Allotted to Various Market Functionaries.

    Categories of market

    functionaries

    Business place in the market Business points allotted

    Commission agents Shops 248

    Retailers Shops 78

    Pharias Shops 22

    MARKET FUNCTIONARIES

    1. ARHTIS / COMMISSION AGENTSCommission agents are those individuals who sell products through auction in the

    market by charging their commission. The commission agents are licensed under the Punjab

    Agriculture Produce Markets Ordinance, 1978 and have their own business place in the

    market.

    2. PHARIASThe pharias (sub wholesalers) purchased commodities from commission agents in the

    market through open auction & subsequently sold that to retailers generally. Pharias have no

    business place in the market; they are station on, the roadside & in front of the coveredauction platforms. The commission agents charge rent from the pharias for providing space

    to them.

    3. RETAILERS

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    The retailers also operate within the wholesale market. They also purchased from

    wholesaler and than sell to ultimate consumer. Most of the operator enjoyed political backing

    for undertaking their business in the market.

    MARKET MANAGEMENT

    The management of the market is the sole responsibility of the market committee. The

    government by its notification establishes a market committee for every notified area. Market

    committees all over the country were dissolved and the management of the wholesale

    markets placed under the control of administrators appointed by government.

    CONSTITUTION OF MARKET COMMITTEE

    According to the Punjab Agricultural produce markets ordinance 1978, Faisalabad

    elected market committee consist of seventeen members as determined normally under law.

    Out of 17 members one member is appointed by government from amongst the employees of

    the Agricultural Department, Government of Punjab.

    Table 4.4: Constitution of the Market Committee.

    Members Number

    Growers 09

    Traders / commission agents 05

    Market operators 01

    Consumer 01

    Govt. Nominee 01

    Total 17

    The remaining members were appointed by the Govt. of a panel of name

    recommended by the Zila Council, equal to twice the number of vacancies in a manner

    provided under the act.

    SALIENT FEATURES OF MARKET MANAGEMENT

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    Respondents were inquired about the performance of erstwhile elected management

    structure i.e. the market committee, 13.33% of the respondents opined that constitution of

    market committee was non-transparent while 13.33% viewed that duties and function of the

    market committee were not clearly understandable to them.

    Table 4.5: Salient Features of Market Committees (Total no. of respondents 15).

    Sr. # Statement Strongly

    Agree

    Agree Disagree Not sure

    1.Constitution of market

    Committee was transparent

    And non-political

    10

    (66.67%)

    01

    (6.67%)

    02

    (13.33%)

    02

    (13.33%)

    2.The function of the market

    Committee were clearly

    Understandable to the

    Different market functionaries

    06

    (40%)

    05

    (33.33%)

    02

    (13.33%)

    02

    (13.33%)

    3.Market committee discharge

    There functions to the

    Satisfaction of market

    Functionaries

    04

    (26.67%)

    05

    (33.33%)

    04

    (26.67%)

    02

    (13.33%)

    4.The department of E&M

    Regularly monitored the

    Activities of market

    committee

    10

    (66.67%)

    02

    (13.33%)

    - 03

    (20%)

    5.Appropriate institutional link

    Existed b/w relevant nation

    Building departments

    06

    (40%)

    05

    (33.33)

    02

    (13.33%)

    02

    (13.33%)

    DUTIES OF MARKET COMMITTEE

    The market committees performed various viz. use of market facilities, good conduct

    of market parties, adjudication of disputes arising out of market transaction, collection of

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    charges and fees maintenance of the market premises and related facilities collection and

    dissemination of market information etc.

    Almost 33.33% of the respondents viewed that rules and the market committee did not

    implement regulation.

    Table 4.6: Duties of Market Committee (Total no. of respondents 15).

    MARKET OPERATION

    Different types of business activities were undertaken within the market. Amongst others,

    major business activities include selling, buying, and handling of the farm produce.

    The importance aspects of market operations are discussed below.

    1. MEANS OF TRANSPORTATION FOR BRINGING PRODUCE IN THE MARKETA good road system and means of transpiration are the basic prerequisites for an efficient

    marketing system. The growers for bringing their produce in the market adopted different means

    of transportation. About 70% of growers were using trucks, 15% Mazda van, 5% pickups, 5%

    trolley and remaining 5% used various other miscellaneous means of transport (rehra, cartload).

    Sr. # Major function/ duties of market

    Committee under the Act.

    Progress of performance

    Yes No Not sure

    1. Enforcement of provisions of theAct and the rule and laws made

    There under the notified market Area

    08

    (53.33%)

    05

    (33.33%)

    01

    (6.67%)

    2. Licensing of various market function,And to renew, suspend or cancel

    11

    (73.33%)

    03

    (20%)

    01

    (6.67%)

    3. Market development 06(40%)

    04

    (26.67%)

    05

    (33.33%)

    4. Collection of market fee & other charges 11(73.33%)

    02

    (13.33%)

    02

    (13.33%)

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    Table 4.7: Different Means of Transporting Produce in the Market.

    Sr. no. Mode of transportation Growers relying on transport

    (percent)

    1. Truck 702. Mazda van 153. Pickup 54. Trolley 55. Miscellaneous

    (Cart / Rehra, etc.) 5

    2. SALIENT FEATURES OF MARKET OPERATIONSThe produce is brought into the market at the risk of sellers and remains as such till it is sold.

    Though under the statutory provisions, market management and the commission agents are

    obliged to arrange for proper space, shelter and safety of the produce.

    Table 4.8: Market operation.

    Sr.# Statement Strongly

    Agree

    Agree Disagree Not sure

    1. Market committee, ensures

    Fair trade practices in the

    Market

    02

    (13.33%)

    08

    (53.33%)

    03

    (20%)

    02

    (13.33%)

    2. Trading hour in the market

    Are strictly followed by

    Various market functionaries

    - 08

    (53.33%)

    04

    (26.67%)

    03

    (20%)

    3. Damages or loss of produce 08

    (53.33%)

    06

    (40%)

    01

    (6.67%) -

    4. Sufficient market information

    Is provided to all the market 07 04 02 02

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    Functionaries by the market

    committee

    (46.67%) (26.67%) (13.33%) (13.33%)

    DATA ON EXPENDITURE BY EACH OF THE VARIOUS MARKET

    FUNCTIONARIES

    1. GROWERS EXPENDITUREi. Transportation, packing and

    loading.

    ii. Commission.

    iii. Other deduction.iv. Labor charges.

    2. COMMISSION AGENTS EXPENDITUREi. Shop rent

    ii. Electricity, telephone.iii. Entertainment.iv. Water charges.

    v. Management charges.vi. Taxes.

    vii. Bank interest if any.viii. Miscellaneous.

    3. PHARIAS EXPENDITUREi. Adda rent.

    ii. Labor charges.iii. Carriage & other handling

    charges.

    iv. Market association fee.v. Wastage.

    vi. Munshiana.

    4. RETAILERS / BUYERS EXPENDITURE (IN GRAIN MARKET)i. Cleaning.

    ii. Washing.iii. Grading.iv. Labor.

    v. Transportation.vi. Electricity.

    vii. Loss in wastage.

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    MARKET INSPECTION

    Market inspection is needed to ensure compliance with sanitary standards and regulation,

    weights and measures, grades and standards, and where appropriate price control. This is usually

    done through visits by sub-inspectors, and whom action is supplemented by inspector of market

    administration thus to make sure that market regulation and fair-trading practices are observed.

    MARKET REGULATION

    Almost 26.67% of the market functionaries recorded that market committee employees

    over charged the licensee fee and 53.33% did not agree with the statement that satisfactory

    inspection and quality control measure. About 16.7% respondents opined that market committee

    did not have suitable arrangement for the disposal of solid waste. And 33.33% of the

    unauthorized produce and encroachments.

    Table 4.9: Market Regulation.

    Sr.# Statement Strongly

    agree

    Agree Disagree Not sure

    1. Charging of license fee 07

    (46.67%)

    04

    (26.67%)

    02

    (13.3%)

    02

    (13.33%)

    2. Satisfactory arrangement 04

    (26.67%)

    08

    (53.33%)

    01

    (6.67%)

    02

    (13.33%)

    3. Disposal of solid waste 08

    (53.33%)

    07

    (46.67%) - -

    4. Kind of encroachments

    -

    07

    (46.67%)

    04

    (26.67%)

    04

    (26.67%)

    5. Unauthorized sale of

    produce

    04

    (26.67%)

    05

    (33.33%)

    02

    (13.33%)

    03

    (2%)

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    MARKET MARGIN

    A marketing margin is the percentage of the final weighted average selling price

    taken by each stage of the marketing chain. The margin must cover the costs

    involved in transferring produce from one stage to the next and provide a reasonable

    return to those doing the marketing.

    In this if a farmer receive 2250 rupee per quintal of wheat, then the artist get his 37.75 rupee

    commission, the processor gain 72.8 rupees and retailer get his profit 142 rupees and now the

    gross market margin is 250 rupees and net market margin is 214.8 rupees and the end consumer

    price is 2500 rupees of wheat / Q. in table 4.10.

    Table 4.10: Marketing Cost, Margin and Profit of wheat

    Reno. Item Rs./Q

    1. Selling price of farmer/ purchase of wholesaler 2250

    2. Commission paid by farmer @ rs.1.5% 37.75

    3. Farmer net price 2216.25

    4. Processor (cost)

    i. Wholesale price 2250

    ii. Broker share 0.20

    iii. Palledare @ 1.20% 27

    iv. Total cost of wholesaler 2277.20

    5. Wholesaler sale price/ retailer purchase price 2350

    6. Gross margin of wholesaler 100

    7. Net margin of wholesaler 72.8

    8. Retailer (cost)

    i. Retailer purchase price 2350

    ii. Transportation cost 02

    iii. Market fee / Q 01

    iv. Misc. 05v. Total cost of retailer 2358

    9. Retailer sale price / consumer purchase price 2500

    10. Gross margin of retailer 150

    11. Net margin of retailer 142

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    Gross market margin in the supply chain = 2500_

    2250 = 250

    Net market margin = 214.8

    %age share of the farmer in the consumer price = farmer net price/consumer price X 100

    = 250/2500 X 100 = 90%

    %age share of the wholesaler in the consumer price = profit of wholesaler/consumer price X 100

    = 72.8/2500 X 100 = 2.92%

    %age share of the retail in the consumer price = profit of retailer/consumer price X 100

    = 142/2500 X 100 = 5.68%

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    Chapter no. 5

    SUMMARY, CONCLUSION & SUGGESTIONS

    This chapter seeks to summarize important findings of research on the working of grain

    market Faisalabad. A comprehensive study on the subject may be conducted at the Punjab level

    so that market imperfections are thoroughly highlighted and understood at higher level. The

    present research has, however, identified some of the weaknesses in the managerial, operation

    and planning aspects of market.

    SUMMARY OF MAIN FINDINGS

    1. A new market was established with the financial assistance of the market committeeFaisalabad, where the shops are allotted to commission agents through auction. The

    physical infrastructure including street light, covered auction platform has not been

    provided but some other facilities like approach road, roads with in the market, water

    supply, telephone, shops and light have been provided in the market.

    2. At present, about 248 commission agents and 78 retailers do their businesses in themarket.

    3. About 70% of the respondents were happy with the physical facilities available in themarket.

    4. Market committee was setup in the provinces for managing day-to-day operation ofthe regulated wholesale market.

    5. The response of respondents about constitution of the elected market committee andtheir role in performing various duties assigned to them was very encouraging. About

    30% of the respondents opined that the constitution of the market committee was

    non-transparent. Some of the respondents believed that the market committee, did not

    discharge their functions properly according to law.6. Market committee performed many functions in the wholesale market starting from

    the provision of basic infrastructure to the collection of market fee and other charges.

    7. Different means of communication were adopted by the growers for bringing theproduce in the market. The produce from far flung areas brought by Trucks & Mazda

    vans. Etc.

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    8. Open auction is the prefer mod of sale but sale by negotiations through thecommission agents (under-cover bidding) was common.

    9. Commission agents and other market operators are not obliged to chargeremuneration higher than prescribed limits. Nevertheless commission agents in the

    market charged higher rates of commission.

    10.The produce is brought to the market at the risk of sellers and remains as such till it issold. The different market operations viz; storage, buying, and selling etc are not

    properly performed. Trade malpractice and higher rate of commission are quite

    common in the market.

    SUGGESTIONS

    1. The biggest problem is the absence of proper physical facilities in the market. These physical facilities like covered sheds and guesthouse for the growers should be

    provided.

    2. Pharias have no business place in the market. They are compelled to pay rent to thecommission agents, which is illegal. This practice should be stopped by the market

    committee.

    3. The market committee should improve its supervisory and monitoring role, as thereprevailed many mal-practices in the market due to the laxity shown by the committeein this regard. The market committee should protect the interest of growers so that

    they are able to get a fair price of their produce.

    4. Market committee should effectively and efficiently check the auction on road.5. Market committee should be invigorated to check the illegal compulsory deduction

    viz; Chung, munshiana and water charges etc. which are made from the sale proceeds

    of growers in the market. The committee should ensure that the commission agents do

    not charge illegal commission from the growers.

    6. In the present marketing system the retailers net margins were found relativelyhigher. Effective competition to retailers through weekly marketing system (itwar

    Bazaar) may be created to reduce their margin. Growers should be encouraged to

    organize their own marketing out-lets by setting up retail shops in different localities

    of the town/ cities for the sale of their produce.

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    REFERENCES

    1. Mushtaq, M. 1971. An economic appraisal of institutional framework in the marketing ofagriculture commodities. A case study of T.T. Singh Market. M.Sc. thesis, University of

    Agriculture Faisalabad.

    2. Siddiqi, S. A. 1979. Marketing of Agricultural Products in Sindh. Sindh AgricultureUniversity, Tando Jam, Pakistan.

    3. Anjum, I. M. 2000. Operations of Agricultural wholesale Market. A case study ofPakistan. Asian Productivity Organization, Tokyo, Japan.

    4. Haque, M. M. 2000. Operations of Agricultural wholesale Market. A case study ofBangladesh. Asian Productivity Organization, Tokyo, Japan.

    5. Nigam, A. 2000. Operations of Agricultural wholesale Market. A case study of India.Asian Productivity Organization, Tokyo, Japan.

    6. Iqbal, N. 2006. Wholesale Market Management and Operation. An Appraisal ofWholesale Fruits & Vegetable Market in Rahim Yar Khan.

    7. Agricultural statistics of Pakistan8. Pakissan.com9. Amis.pk