project of dhan mandi

A

Project Reporton

Current and Futureanalysis of “Kota Grain

Mandi”

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Preface

Indian economy has been dependent on agricultural products for many centuries. Either

directly or indirectly it is one of the aspects of the economy which is a vital force for the

growth of the nation.

By the time there has been various changes in this particular field, new products as well

as new trading patterns has been introduced in the market, market places has been

replaced by the market space. Technology has started playing a vital role in trading a lot

of other aspect of the agricultural products, in simple words we can say that most of

aspect of agriculture in India has changed.

But still there is one thing which has not changed by the time is “Mandi” a market place

where buyers and sellers trade physically in various commodities. These mandis are the

places which might not be working on the state of the art technology but still one of the

places which generates huge amount of employment and facilitates trades with the help

of mediators working in the field.



Acknowledgement

We all express our sincere thanks to our project guides Ms. Parul Agrawal, faculty

Proseed Business School and Sandeep Mehta, faculty Proseed Business School for

guiding us right from the inception till the successful completion of the project. We

sincerely acknowledge them for extending their valuable guidance, support for literature,

critical reviews of the project and the report and above all the moral support they have

provided is with all the stages of the project.

Ms. Parul Agrawal

Mr. Sandeep Mehta and Group



Executive summary

Every product in this world needs a market where it can be sold and purchased and

agricultural products are not an exception of it. In a nation like India which is largely

dependent on agriculture either directly or indirectly we need these places to be

properly organized.

“Seth Bhamshah Krishi Upaj Mandi,Kota” is another marketplace for agricultural

products to be traded, the only thing which makes it different from others is the size and

variety of trade happening here.

For years this place has been serving a number of farmers in the process of price

discovery for their crops and for sure has a huge local, national and international

importance which is discussed in the report.

In this report title “Importance of Seth Bhamashah Krishi Upaj Mandi,kota” we will

discuss various aspect of the Mandi and its importance on national and international

aspect, here we have also identified some of the products traded in the mandi which

have a huge national and international importance.



Contents

Chapter page no.

1. Introduction 11.1 History 2

2. Types of business 4

2.1 Broking 5

2.2 Agency Model 6

2.3 stocks by the traders 7

2.4 Financing for traders and farmers 8

3. Source of finance 9

4. Major crops 10

5. Trading 11

5.1 schedule of trade 11

6. Local and national importance 13

6.1 variety of crops 14

6.2 revenues 15

7. International aspects 16

7.1 Important products 17

7.2 Indian production of coriander 18

7.3 Production of coriander in Rajasthan 19

7.4 demand 22

7.5 Importance of organic spices 22

7.6 benefits of exports 23



7.7 Some other important crops 24

7.8 role of government and various agencies 25

8. Future Development of Kota mandi 28

8.1 development of Agri export Zone 29

8.2 Technology 30

8.3 The business in future 31

9. Conclusion 32

10. Bibliography 33



Chapter 1- Introduction

It was in May of 1994 when the grain market of Kota was shifted from “new dhan mandi”

to “SETH BHAMASHAH MANDI”, anantpura, Kota. The new place was better than the

older one in terms of various aspects like the size of the auction yards, basic amenities,

technology, size of shops and godowns and many more.

The journey started and till date it has established several milestones in terms of trade

and various other aspects. The turnover of the mandi has grown by leaps and bounds;

traders are now more technology savvy than they used to be. The farmers is now not

that trodden community which was extorted by landholder and moneylenders due to

healthy competition available in the market.

The mandi has now stared getting international recognition when it comes to crops like

Mustard, Soybean and Coriander. The association of traders is considered to be of the

richest among mandis of the whole nation.



Chapter 1.1- History

It was established at Gandhi chowk rampura, since Kota was established.

Then it was shifted to ranio ka bagh nayapura. It was moved to the place where

currently the sarovar picture hall is placed; later the hall got constructed over there itself.

Then in 1948, another market was developed at Sindhi colony gumanpura, but the

shopkeepers refused to move there because, there were no residents in that area and

there was no opportunity of growth so they didn’t moved there. Then in 1964, they

moved near the area of aerodrome circle and they named it as nai dhanmandi. There

only the first union of mandi shopkeepers was formed named as grain merchant

association. Later they moved to Anatpura circle in 1998 and are still conducting

business from there only.



Chapter 2- Types of business

The business style and the product offering of all of the mandis in various parts of a

state is more or less same due to the legal restrictions put by the state governments.

These grain markets directly work under the control of state government and the traders

and the brokers have to get a license from the state government to conduct the

business and grain trading activities.

It’s not only about buying and selling of grains rather it is a place where a huge amount

of financing takes place, this financing is driven by a good chunk of liquidity available

with the traders and various other people Associated with mandi.

Besides direct trading of grains, a lot of ancillary services are available there which

facilitates the trade in the mandi.

Under the various heads of this particular chapter we will discuss different types of

trading and related activities conducted in Kota mandi



2.1Broking

2.1.1Procedure

The more famous name for this type of business is “Kacchi Aadhat”. The farmer or theproducer come to the mandi with their crops, and then search for a broker who can selltheir crops to the buyer at the best price.

2.1.2 Brokerage

The broker charges 2% each from both the parties, on the traded commodity.

2.1.3 Brokers working as financiers

Due to the long procedure of transaction, sometimes the buyer is unable to makeimmediate payments to the seller, at that time the broker funds to the seller and chargesthe interest on that particular amount. The rate of interest if generally 2 % per month ifthe cash is kept for more than 3 days, but this rate can be reduced to the level of 1.30%if the amount is repaid by the buyer within 3 days.



2.2 Agency model

Another type of work done in this particular place is based on agency model. In this typeof business any buyers like exporters, oil mill owners and food processing industriesappoints their agents and purchases the grains and other thing through them.

These agents are selected from the bunch of brokers available in the markets; theseagents purchase grains from either farmers or any other trader and than supplies it tothe buyer.

Following is the process adopted by the agent while doing business according to the

agency model.

The agent takes order from the buyer over telephone or internet.

Then they purchase raw material from Farmer.

Afterwards the grain is processed in grading plants to get it finished.

Packaging of grains is done.

At last the grains are transported to the purchaser.

It is notable that this type of purchasing is done majorly by exporters, oil mills and food

processing industries because the need of raw material for them is always there. After

making the transaction happen, the agent can receive the payment from the purchaser

in following manner.

A) From RTGS



B) Demand draft in INR

2.3 Stock by the traders

Another important type of business is done in terms of keeping a stock of the grains and

other type of products. This stock is done to take advantage of price fluctuation in Agri

products. In simple words we can say that it is purely speculation. The process of this

business is very simple. The stockist purchases the product from the market and keeps

it with itself until the prices goes upwards.

Getting engaged in this type of business is not always easy, there are a lot of factors

associated to this particular type of business, some of the most important are as follows:

1) Stocking of grain and other agri products is very capital intensive business.

2) The fluctuation in prices of products is very frequent and full of volatility.

3) State government used to keep a check on the volume of stock on a regular

basis.

4) Some time some commodity enters in long term bear market and in this case it is

not easy to sell it and recover the amount which has been invested.



2.4 Financing for traders and farmers

One of the most important types of business is related to financing for traders and thefarmers. As we know that most of the types of business done in these markets are verycapital intensive and there is always a never ending need of capital, to satisfy this needof capital a lot of indigenous bankers are available in the market place. Indigenousbankers are those people who makes finance available with the help of an instrumentcalled “Hundi” it nothing but a type of negotiable instrument used by these traders andbankers.

Following are some of the most important aspect of this part of the business:

1) Trust- most of the finance is made available on the basis of trust only, theindigenous banker provides finance of huge sum even without any security.

2) Rate of interest- the rate of interest is different for traders and the farmers, therate for farmers is 2% per month and for traders it is 1-1.5% per month. Theinterest is compounded after every two months

3) Brokers- The financing business is also done through some brokers, the brokerremains in contact with both of the parties i.e. the borrowers and the financiers



Chapter 3- Sources of finance for business

“Finance is the life blood of business”

In previous chapters we could understand various types of business done in Kota mandi

and we know that every business needs some source of finance which provides them

working capital and capital for investment purpose. Following are some of the major

sources of finance available for the traders of Kota mandi.

3.1 Bank Limits

Bank limit or CC limits is formed on the basis of turnover, goodwill and against the

documents of any asset. Bank provides financial assistance up to the 60% value of that

asset, and charges interest on monthly basis at very nominal interest rates.

3.2 Personal Finance

It includes the capital invested by the merchant while commencement of business. It

also includes the transfer of capital from some other business of that same person to

the business of mandi.

3.3 Third Party Finance

Here the businessman of mandi purchases the commodities on behalf of some outsider.

The physical ownership of commodity is not necessary to exist in such kind of

transactions. It is a part of current as well as future trade.



Chapter 4- Major crops at Bhamashah Mandi, Kota

As we know that the “SETH BHAMASHAH KRISHI UPAJ MANDI” is one of largest

market place of agricultural products in India that is why almost every type of

agricultural production is traded at this place. Following are various crops covered under

the Rabi and Kharif crops.

1) Wheat

2) Gram

3) Jowar

4) Maize

5) Barley

6) Linseed

7) Gur

8) Dhaniya

9) Paddy

10) Mustard

11) Soybean

12) Urd

13) Methi

Major supply areas of commodities-

Madhya Pradesh, Sultanpur, Digod, Itawa, Baran, Anta, Khatoli and various suburban

areas in the vicinity of 50 K.M. kota



Chapter 5- Trading of commodities

“SETH BHMASHAH KRISHI UPAJ MANDI” is very systematic when it comes to the

style of working and the trading timings. All of the trading activities happen through an

open outcry system, the traders and the farmers gather at the place called “mandi yard”

where auction of commodities is done.

Phase -1

The procedure adopted is very simple. First of all the farmer contact to a broker in the

market and then the broker tries to find out a buyer who will pay the higher amount for

the commodity. Afterwards the trade happen in an open outcry manner, where the

brokers can be seen chasing the buyer to sell the commodities of the concerned farmer.

Phase-2

Once the trade is completed the time of payment comes. Due to most of the trade

happening on credit basis, the buyer does not pay the amount of transaction

immediately; rather it takes time of almost seven days. But the farmer may be in need of

money to pay off various amounts related to the crops. At this stage the broker works as

the financier also. He pays a part of the amount and charges some interest on it, which

may vary from 1 to 2 percent per month

5.1 Schedule of trade

The trading time for every commodity is fixed for the whole year, which is very rarely

changed.

The trading starts when the crop is kept for bidding, after the placing a name plate of

shopkeeper on it.

10 am - wheat and soya bean bidding is done.

12 pm – corn bidding is done.



1 pm - mustard bidding is done.

2 pm – coriander.

5.2 Let’s play with numbers

The total amount of trade in terms of Rs. – 1800-2000 crore p.a.

The total amount of trade in terms of bags per year.5000000+

The total amount of sales tax collected from grain mandi. 40+ crore



Chapter 6-Local and National importance of kota mandi

As we all know that Kota mandi is one of the largest trading platforms available in for

the whole nation with more than 1800-2000 crore of trade happening per annum. In

national aspect Kota mandi plays a vital role in terms of both revenue generation and

grain availability. Following are various heads which describes the importance of Kota

mandi in national aspect.



6.1 Variety of crops

Kota mandi is not restricted to a few crops only in terms of availability and trade rather it

has a variety of commodities are available here. The traders facilitate the supply of

these crops to every part of the nation wherever it is needed. Soybean is from Kota is

sent to almost every part of the nation to be consumed by the oil mills and others.

Following is the list of commodities and the quantity traded in Kota mandi within a year

Months Wheat Gram Jowar maize Barley Linsee

d

Gur Dhaniya Paddy Mustard Soybe

an

Urd Methi Sugar Others Total

Apr 504000 105000 769 1275 2890 2857 0 86000 16688 195000 33260 957 130000 14895 9416 1103007

May 385500 121865 1055 1320 3880 3335 18 216530 8400 172770 34960 623 180700 9952 140908 1140908

Jun 175000 40950 2590 1860 2770 2050 0 35600 1846 62675 35500 505 55150 14100 8810 439406

Jul 47415 13023 1436 843 983 316 0 8326 263 16140 15180 388 10725 13172 2989 131199

Aug 51875 7437 1516 730 585 228 1900 9704 332 20800 30500 621 8952 15046 4559 154785

Sep 59870 3557 329 1449 517 160 0 16386 332 15647 8601 1779 9145 12889 3209 133870

Oct 60710 6940 1205 7255 345 203 3230 20562 9170 21266 85220 9945 14686 14757 3521 259015

Nov 60125 9430 2325 12250 398 215 3660 15856 73052 14923 150000 8305 16645 17275 4763 389222

Dec 75340 11545 4500 13299 305 300 4418 18482 70740 19852 62500 5395 13495 16262 4672 321105

Jan 78475 10500 5780 10325 265 305 1375 20812 28447 14000 23647 3400 5400 17304 4091 224126

Feb 69225 7215 4960 7425 204 132 2084 19605 6713 32144 16260 1848 4760 15385 1501 189461

Mar 84150 16185 2820 5160 1355 235 2175 80828 3794 183982 16105 3794 15785 19198 3509 439075

Total 1651685 353647 29285 63191 14497 10336 18860 548691 219777 769199 511733 37560 465443 170283 60992 4925179

NOTE- the data is related to the year 2002-03, in past few years the trade in Kota mandi

has taken a huge shape and almost triple.

With the help of this particular table we can say that Kota mandi has a variety of

commodities to be traded in it and that too in a large quantity.



6.2 Government revenues

VAT- State government charge VAT on every transaction happening in mandi which

varies from 4 to 16 % on various crops. It provides a huge amount of revenues to the

government. Every year around 1800-2000 crores of trade takes place in Kota grain

mandi which provides around 40 crore of VAT to the state government, which is a large

sum.

MANDI TAX- mandi tax is also charged on every transaction, which is at a rate of 1.6

percent on the quantum of trade, on a base of 1800-2000 crore it amounts to around 18

crores revenue to the government.

These particular taxes are charged to the buyer of the commodities



Chapter 7- International aspects of Kota mandi

Rajasthan is considered to be a state which is most of the time full of drought and does

not have any sort of importance when it comes to the national and international

importance of agricultural products. But in all case this is not a truth and if we look at

some of the data and the facts available with us we can clearly sees that Rajasthan is

one of the largest producers of a lot of products and net exporters also. According to

past data and the facts we can see that Rajasthan and in particular Kota, can work a lot

in terms of export of a some of the products outside the nation. The annual turnover of

Kota mandi is around 1800-2000 crore per annum and a huge amount of this particular

part comes from export demand.

Taking kota mandi on the international map is not a tough task if the state government

can come forward to help the system. With a turnover of around 1800-2000 crore it is

the largest mandi of Rajasthan and one of the largest in the nation.

In the following chapters we will discuss the international aspect of Kota mandi and its

future prospects in the international markets we will study it under the following heads:

1) Products important for international markets.

2) Role of government and various agencies in facilitation of trade and other areas



7.1 Important products for export from Kota mandi

Coriander

This particular product is one of the main strength of Kota mandi in terms of national

and international markets, most of the trading in the mandi happens of Coriander only.

The global demand for this particular product is very high because of a simple region

that crops like wheat and other are cultivated in most of the part of the nation but

Rajasthan is the largest producer of this crop in the whole nation with around 62% share

of total production.

Rajasthan is a leading producer of coriander accounting for about 62% of all India’s

output. The districts of Kota, Bundi, Baran and Jhalawar account for the entire

production in Rajasthan. There is scope for enhancing the value addition and export

potential for coriander from Rajasthan implementation of an Agri Export Zone in these

districts.

The global market for spices is valued at USD 2.3 billion. A number of derivatives such

as powder, paste, etc. are prepared from coriander. There is huge demand for

organically grown products and coriander grown in Rajasthan could fetch premium

prices.

India, known as “THE HOME OF SPICES”, is the largest producer consumer and

exporter of coriander in the world. The total world trade of coriander is about 52000 MT.

Coriander is used for many preparations in India as well as in other parts of the world.

Fresh leaves and fruits of coriander have pleasant aromatic odor and are used in

preparing chutneys and sauces as also for flavoring curries and soups and various food

preparations including bakery products.

Coriander also has medicinal value, the seeds are considered to be carminative,

diuretic, tonic, stomachic, ant bilious, refrigerant and aphrodisiac. Moreover, oil

extracted from coriander seeds is a valuable ingredient in perfumes. Good quality

oleoresin can be extracted from coriander seeds, which is used for flavoring beverages,

pickles and sweets.



India has 27 % share in terms of volume and value in global market. Other major

coriander exporting countries are Bulgaria, Russian Federation, Morocco, Egypt and

Romania.

Sri Lanka is the major importing country, with about 27% of the total world trade. Other

importing countries are Indonesia, Malaysia, and Singapore etc.

7.2 Indian production of corianderIndia is not only the main producer and consumer but also the major exporter of the

coriander in the world market, having 27 % share in terms of volume and value in global

market. The export of coriander from the country is around 11.7 MT in terms of volume.

Considering the total volume of the trade and export potential, there is lot of scope for

enhancing the level of exports.

The production of coriander is about 3 lakhs MT and occupying 5.5 lakhs ha area. The

state wise area, productivity and yield of coriander are given in table:



State wise production of coriander in India in 2007-08

State Area

(Ha)

Yield (MT/Ha)

Andhra Pradesh 1,07,100 0.21

Bihar 2,800 0.46

Karnataka 17,300 0.17

Madhya Pradesh 1,75,900 0.37

Orissa 8,100 0.48

Rajasthan 1,98,200 0.91

Tamil Nadu 30,600 0.21

Uttar Pradesh 6,500 0.68

Total 5,46,500 0.53

7.3 Production of coriander in Rajasthan

Rajasthan is the major producer of coriander in the country. About 62% of the total

coriander output is from Rajasthan with 36% of the area under cultivation. The state has

the highest productivity of coriander in the country. Thus the state has a relative cost

advantage as compared to other states. Moreover, the quality is also superior as well as

internationally acceptable. The total production of coriander in Rajasthan is 166

thousand MT. Strengths of Rajasthan in coriander are:

-Highest area, production and productivity in the country

-Internationally acceptable quality

-Climatic conditions suitable for quality production as coriander requires arid

conditions



District wise Area, Production and Productivity of coriander in Rajasthan

(2007-08)

Districts Area

(ha)

Productivity

(MT/Ha)

Ajmer 198 0.95

Jaipur 110 0.30

Dausa 7 1.00

Sikar 40 0.50

Jhunjhunu 6 0.50

JAIPUR REGION 361 0.70

Alwar 86 0.79

Bharatpur 5 1.40

Dholpur 0 -

S. Madhopur 44 0.32

Karoli 35 0.23

BHARATPUR REGION 170 0.57

Bikaner 6 2.00

Churu 4 3.50

Ganganagar 4 0.50

Hanumangarh 0 -

GANGANAGAR REGION 14 2.00

Jodhpur 49 0.59

Jaisalmer 1 00

Jalore 1 1.0

Barmer 4 0.75

Nagaur 718 0.10

Pali 24 0.50

Sirohi 2 0.50

JODHPUR REGION 799 0.15



Kota 31091 1.14

Baran 61900 1.42

Bundi 2925 0.79

Jhalawar 46980 0.84

Tonk 183 0.33

KOTA REGION 143079 1.15

Banswara 0 -

Dungarpur 3 -

Udaipur 63 0.35

UDAIPUR REGION 66 0.33

Bhilwara 20 0.45

Chittore 699 1.08

Rajsamand 31 0.23

BHILWARA REGION 750 1.03

STATE 145239 1.15

From the above mentioned data we can clearly Say that Kota region has the largest

share in the production of coriander and there is a huge scope of export and trading

activities for this particular product.



7.4 Demand

Annual world imports of spices over the past five years averaged 52,000 Mt, valued at

USD 2.3 billion. Imports have recorded strong growth averaging 8.5% a year over the

past five years. About one-third of this supply is from India. The export demand for

coriander is expected to grow because of increase in popularity of Indian culinary

preparations in major overseas markets and increased use of coriander in medicines

and ayurvedic treatment. Therefore, this growth rate is a good indicator of the growth in

consumption of spices. The main causes of the growth in consumption of spices has

been increasing trend towards eating ethnic or oriental foods in the developed countries

and the increasing affluence of consumers in Asian, Latin American and Middle eastern

developing countries Moreover, usage of spices and herbs by consumers is increasing

also because they are appreciated as completely natural, rather than artificial, additives.

7.5 Demand and importance of Organic spices

The consumers all over the world are quite concerned about the detrimental effect of

pesticide residuals in food and are ready to pay a premium price on agricultural

products grown without the use of chemicals. Thus, organic agriculture is gaining

momentum and demand for organic commodities like spices is increasing particularly in

developed countries.

This had led to the development of international trade for organic spices. Spices grown

organically fetch premium prices. Europe, the USA and Japan are by far the largest

markets. There are smaller but unexplored markets in many other countries, including a

few developing countries.

In Rajasthan, most of the farmers are cultivating spices on marginal land without use of

any chemical inputs like fertilizers, pesticides, herbicides, insecticides, growth regulators

etc. Therefore, the farming by default is organic. However, gaining certification from

recognized international agencies is a costly affair. The Spices Board meets up to 50

per cent of this cost to enable groups of growers to obtain certification for their produce



7.6 Benefits of export of coriander

-A large number of farmers would be benefited due to increase in productivity and better

price realization

-Training of large number farmers for adoption of scientific methods of farming

-Opportunities for processors for value added derivatives like oleoresin, curry powder

-Creation of employment through additional investment in the state

-Increased export earnings for the state and country

-Incremental exports in value term expected to exceed Rs. 10 crore per annum from 5th

year onwards.

-Additional profits to exporters and traders

-Increment in quality of products marketed in domestic market

-The incremental economic benefit in the form of additional coriander production,

increased exports, creation of employment and better price realization by the farmer

would justify the additional investments envisaged.



7.7 Some other important crops for Kota mandi

Besides coriander, there are some other crops also available in the market of kota

mandi which can provide it world level exposure. Following are some of the important

one.

Wheat

With around 40 to 45 lacs sacks of wheat trading happening on an annualized basis,

kota mandi is one of the hubs for wheat trading. In past few years a lot of international

groups have started purchasing wheat from kota mandi through their agents. Some of

the largest players in the field are ITC, CARGIL, AWB (Australian wheat board) and

some others.

Major areas of production in kota region are the suburban areas of kota namely Digod

and Sultanpur.

Major threats to wheat exports

In past few years there has been a lot of hue and cry over the export of agricultural

products form the nation. One of the major reasons for this spat is considered the rate

of food inflation in past few years. This is perhaps one of the major risks of export

activities from the whole nation or sometime we may have to import some products due

to rising consumption in the nation.



7.8 Role of government and various agencies

State government

One of the major factors affecting any type of trade happening in grain markets is the

state government; following are the major areas where the state government can play a

vital role in the export promotion of crops.

Major areas of concern and agencies involved

Item Agency Remarks

Production and quality enhancement Ministry Of

Agriculture, GoI

Quality seeds

production,

contract farming,

improved package

and practices

Area expansion State govt. Farmer

awareness, offer

minimum support

prices, introducing

drip and sprinkler

irrigation facilities

Setting up Laboratory facilities MOA/Spices

Boards

For testing the

quality of coriander

and value added

products

Agri Disease State govt. Cultivation, market

information

Demonstration and

Training

State govt. Improved

agronomical

practices and



training of new

technologies

Drying and curing

centres

NHB/Spices

Boards

Scientific drying

and storage

Organic certification Spices board Certification from

international

agency

Storage facility NHB Cold storage for

retention of the

color and aroma of

coriander

Export promotion Spices Board Export market

survey, attending

international trade

fares

Establishment of

processing units

MFPI Making of curry

paste, oil,

oleoresin,

coriander powder

Quality system

implementation,

Spices board Quality standards

according to the

need of importing

countries

Developing varieties for local conditions Rajasthan

Agriculture

university, Bikaner

High yielding and

disease and pest

resistant Varieties

Future trading FMC,

Spices board

Stability of prices,

risk mitigation for

exporters/processo

rs, increase of the

volume of trade 4-5



times more than

the actual trading



Chapter 8- Future development of Kota mandi

“The only thing which is constant is change”

In last so many years the mandi is changed a lot and it’s still changing, new ways of

business has been included and the mandi has more importance on national and

international front rather than being of local importance only. Technology has started

knocking on the doors of mandi and now it’s in reach of many more people.

Big boys of the nation like ITC and BHARTI group have started taking deep interest in

the business of mandi because of being so lucrative. Most of the part of the purchase by

these companies is done on direct basis through agents and used in in-house

consumption.

Money is probably the last thing about which the traders have to worry now; most of the

commercial banks are now at the doorstep of the traders. All of this is possible only

because of the nature of the business in mandi. This is something which is related to

the basic of any economy.

In following few pages we will discuss about various aspects of future developments for

Kota mandi



8.1 Development of Agri export zone

As we all know that Kota mandi is the largest mandi of Rajasthan and probably one of

the best built of all, crops like coriander and wheat are traded in abundance here. A

huge amount of export has also been started in recent years. To facilitate the trade of

crops like coriander, the government may start working towards establishment of Agri

export zone in Kota, which will work for export facilitation.

The objective of AEZ should be to provide remunerative returns to farmers on a

sustained basis by improved access to exports. As per the policy, this objective is to be

achieved by encouraging the state governments to identify product specific Agri Export

Zones for “end-to-end” development, for export of products.

The emphasis of AEZ should be market orientation. It starts with identification of

products, which have good export potential, devising strategies for market penetration

and niche marketing, and then taking necessary steps to exploit the market potential.

This new approach recognizes the fact that sporadic and disjointed efforts by various

organizations are not enough for export promotion, and hence the entire approach has

o be taken up in a project mode, at the state government level.

The overall aim of the project should be to develop kota as an exporting city of various

crops and majorly of coriander, which is a strength of kota mandi in terms of production

and the quantum of trade.



8.2 Technology

Kota mandi is for sure one of the largest trading place of agricultural products in India,

but it is still not working on a good base of technology. For most of things like trading old

methods are being used. Use of technology like internet is still restricted only to a few

players in the market.

Followings are some of the suggestions to improve this particular part of Kota mandi.

1) Satellite office can be established in various areas like Digod, Sultanpur,Baran

and other suburban areas which are major sources of crops for the mandi. It will

facilitate the trading activity and post trade formalities, these offices will also work

as knowledge centers for farmers.

2) On a gradual basis the trading process can be changed to complete electronic

rather than open outcry, in this case the trade will be almost hassle free and the

seller will come to know about each and every buyer for every price.

3) An information portal of Kota mandi can be developed which will allow farmers

and importers to be informed about various aspects of mandi on current basis.



8.3 The business in future

The commodity business is on very uncertain and now a day’s volatile also , one of the

basic reason of this condition of the business is that this business is related to the basic

need of humanity which id “food”, this need will never go down rather tend to increase

as the world population is increasing.

Another part of the business is it unpredictability, on every front. In which we can

include policy of government related to various aspects like “minimum support price”,

“export-imports”, “licensing” and some other.

At last we can say that to predict the future of Kota mandi is a tough task, but for sure a

lot of things like use of technology, global market linkages will surely be there.



Chapter 9- Conclusion

At last we can we can conclude by saying that, this Kota mandi has a potential to grow

internationally in every aspect. Due to the advancement of technology the buyers and

the sellers can transact frequently with each other and fulfill the demands.

But still there are a lot of aspects on which the government and various agencies need

to pay a lot of attention, what all we need is to reduce the quantum of control and let

them trade freely but this seems to be very unlikely because this place trade is related

to the basic need of the nation which is food and free trading can take the prices to any

level.

What all we can say the Kota mandi has taken various shapes and seen various ups

and downs but it is still working as a pillar of economy of kota.



Chapter- 10 Bibliography

1. www.google.com

2. Publications of The grain merchant association,Kota

3. Record books of Mandi Tax.


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