role of rythu bazars in urbanisation - s.p. krishna veni

25
ROLE OF RYTHUBAZAR IN URBANISATION A CASE STUDY OF HYDERABAD S.P. Krishna Veni Introduction: It is a long felt need to have a ready-made platform for those aspiring to have a big shopping, modern yet simple and accessible to all people of all income groups. On the basis of this the idea of ‘Apna Bazar‘ came about more than a decade back before the Govt. of Andhra Pradesh initiated the “Rythu Bazar“ and “Gruha Mitra Schemes“. Rythu Bazar or Farmers market is the market where the marketing between the farmers and consumers is done directly by eliminating the middle men and commission agents. These middle men or commission agents charge high level of commission fee from the farmers who come to market yards to sell their agricultural produce. This leads to rise in prices of these products to benefit the middle men at the cost of the farmers and consumers. Direct marketing helps in complete elimination of middle men and ensures higher remuneration to the farmers and greater satisfaction to the consumers in obtaining agricultural commodities at affordable prices. Therefore, Rythu Bazar is one of the farmer’s friendly direct marketing systems in operation in Andhra Pradesh. A ‘model

Upload: appan-kandala-vasudevachary

Post on 01-Dec-2015

697 views

Category:

Documents


2 download

DESCRIPTION

vc

TRANSCRIPT

Page 1: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

ROLE OF RYTHUBAZAR IN URBANISATION

– A CASE STUDY OF HYDERABAD

S.P. Krishna Veni

Introduction:

It is a long felt need to have a ready-made platform for those aspiring

to have a big shopping, modern yet simple and accessible to all people of all

income groups. On the basis of this the idea of ‘Apna Bazar‘ came about

more than a decade back before the Govt. of Andhra Pradesh initiated the

“Rythu Bazar“ and “Gruha Mitra Schemes“.

Rythu Bazar or Farmers market is the market where the marketing

between the farmers and consumers is done directly by eliminating the

middle men and commission agents. These middle men or commission

agents charge high level of commission fee from the farmers who come to

market yards to sell their agricultural produce. This leads to rise in prices of

these products to benefit the middle men at the cost of the farmers and

consumers. Direct marketing helps in complete elimination of middle men

and ensures higher remuneration to the farmers and greater satisfaction to

the consumers in obtaining agricultural commodities at affordable prices.

Therefore, Rythu Bazar is one of the farmer’s friendly direct marketing

systems in operation in Andhra Pradesh. A ‘model bankable project‘ for Rythu

Bazar has been developed to create awareness about the development of

agricultural marketing among bankers, financial institutions, potential

entrepreneurs in private and co-operative sectors, farmers groups, Govt.

functionaries etc.

In view of the above, we made a modest attempt to study the role of Rythu

Bazars in Urban areas. Hyderabad choosen for our anysis.

Page 2: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

Objectives

1. To examine remunerative prices to the farmers and provide fresh

vegetables and other

products to consumers at reasonable rates everyday.

2. To facilitate prompt realization of sale produces to farmer without any

deductions.

3. To enable and facilitate proper weighments and to curb malpractices in

weighments in

providing vegetables and farm produce.

4. To examine direct interface between farmers and consumers –

eliminating intermediaries

in trade.

Paper is submitted at Two Day National Seminar on Urbanisation in India:

Problems & Prospects “ held at Dept of Economics, University college for

women, Koti On 24-25th Jan 09

*Research Scholor, Dept of Economics, Osmania University, Hyderabad-7.

I am grateful to Prof. A K Vasudevachary for his academic support in

Preparing this paper.

Methodology

Page 3: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

The study covers both the primary and secondary data. Descriptive

research is most suitable. The primary data was collected by interview

method by using structured questionnaire. For the purpose of study, the data

has been collected from nine Rythu Bazars of Hyderabad district or GHMC

[The Greater Hyderabad Municipal Corporation].

Sources of data

The secondary data was collected from the published records, journals,

magazines, web portals, news papers, and through general discussions with

government officials of Rythu Bazar.

Sample technique

Universe: Farmer vendors marketing their produce at Rythu Bazars.

Sample Area: All the nine Rythu Bazars working at Hyderabad [GHMC]

Sample size: A sample of ten to twelve farmers vendors and consumers from

all the nine Rythu Bazars of Hyderabad district totaling to a sample of

hundred each.

Techniqes used: For the present study important statistical tools are used

to derive the inferences are averages, percentages etc

Establishment of Rythu Bazars:

Initially about 49 Rythu Bazar or ‘Kisan Ki Mandi’ are initiated by the

government of Andhra Pradesh on January 6th, 1999. Within a span of nine

months, number of Rythu Bazars has increased from 49 to 102 by covering

nearly 40,000 farmers from 2,800 villages in all the district head quarters and

important cities in Andhra Pradesh.

Rythu Bazars are located on Government lands identified by the

District Collectors. The location shall have to be convenient both for the

farmers and consumers. The criteria for opening of new Rythu Bazars is the

Page 4: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

availability of at least one acre of land in strategic locations and identification

of 250 vegetable growing farmers including 10 self help groups.

Functional infrastructure facilities in Rythu Bazar / farmers’ market:

(i)Road : The Rythu Bazar / Farmers’ Market should have wide approach

road of Minimum 6m width for customers to drive in and out of the Bazar

compound. The roads should be hard – surfaced and should have minimum

standards necessary to withstand the wear and tear due to the projected

traffic. (ii) compound Wall: The compound wall should have a foundation

depth of 1.0 m below ground level. Normally PCC of mix ratio (1: 5: 10) is put

below the foundation wall. The material to be used for foundation

construction may be stone masonry in cement mortar of concrete. (iii) Stall:

The total number of stall in each Rythu Bazar / Farmers Market will depend

upon the number of stalls to be allotted by the Department of Agricultural

Marketing to each Farmers Group / Mandal, SHG, DWACRA groups, NAFED,

Khadi and Village Industries Board, Dist. Co-op. Marketing Societies etc. In

this particular model, construction of 250 number of stall has been

considered. It is assumed that 200 stalls are allotted to farmer groups /

mandals and the remaining 50 stalls are allotted to SHG / DWACRA / BPL

groups etc. for selling other commodities to the farmers and consumers so

that the farmers do not have to move far off places to buy their consumer

items. (iv) Farmers rest room cum training center: A room of size 3.6m x

6m may be constructed to act as restrooms for the farmers. The rooms may

also be used as a training center for imparting training on nursery

development/vermicomposting/biofertilizer preparation/ integrated pest

management, nutrition management etc. (v) Small Sized Godown :

Provision may be made by the Market Functionaries/Department of

Agriculture Marketing for construction of a small 50/100 MT capacity godown

for the sellers/SHGs/DWACRA group members to store their non perishable

goods and other commodities for short durations. Depending on movement

of perishable produce in the market yard, construction of a cold storage may

be considered. (vi) Market User Common Facilities : Provision should be

made to provide market user common facilities such as (a) cleaning (b)

Page 5: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

grading and sorting (c) weighing and packaging of the produce being brought

by the farmers for sale in the Rythu Bazar/Farmers Market. An area of 15

square meters may be provided for the office to house staff and equipment

like Computer, Printer, Typewriter, Telephone fax machine etc.

Rythu Bazars in Hyderabad District

There are 9 Rythu Bazars in Greater Hyderabad district. They are situated at

Alwal, Mehdipatnam, Kukatpally ,Kothapet , Vanasthali Puram , Erragadda,

Quthbullapur, Falaknuma, Ramakrishnapuram

(i)Alwal Rythu Bazar is in the major residential suburb of secunderabad the

twin cities of Hyderabad city. It has a population of 1, 06,424 (2001 census)

and forms part of the Greater Hyderabad agglomeration.(ii) Mehdipatnam

Rythu Bazar is in the major suburb in Hyderabad. It is a part of the old city

of Hyderabad. It is the centre for shopping for many suburbs and villages

(iii)Kukatpally Rythu Bazar is in a major residential and commercial suburb

in India. It is located on the northwest fringe of Hyderabad city. (iv)Kothapet

Rythu Bazar (Saroor Nagar) is in a major suburb of Hyderabad, Andhra

Pradesh. This is predominantly a middle class suburb. (v)Vanathalipuram

Rythu Bazar is in a residential suburb of Hyderabad. It is considered to be

the second largest residential colonies in Asia. Every third Friday of the

month is holiday for this Rythu Bazar. (vi)Erragadda Rythu Bazar is in a

developing commercial and residential area in the west zone of Hyderabad.

This Rythu Bazar is the model Rythu Bazar for Hyderabad district. Every

Friday is a holiday for this Rythu Bazar. (vii)Quthbullapur Rythu Bazar is in

a town and a municipality in Greater Hyderabad District in Andhra Pradesh.

Every third Friday of the month is a holiday for this Rythu Bazar.

(viii)Falaknuma Rythu Bazar is situated in old city area which comes under

Greater Hyderabad. Falaknuma as historical importance. It is a thickly

populated area, with majority of Muslim population. Every Friday is a holiday

for this Rythu Bazar. (ix)Ramakrishnapuram Rythu Bazarcovers a military

cantonment area. Ramakrishnapuram well known as R.K. Puram is with low

Page 6: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

density of population. Every third Wednesday is a holiday for this Rythu

Bazar. The details of all nine Rythu Bazars are given table 1

Source: http://en.wikipedia.org/wiki/rythu_bazar

Table – 1 Details of Rythu Bazars in Hyderabad District

S.

N

o

Name of

the Rythu

Bazar

Extent

area

covered

in acres

Average

distance

of farm

land

Covered

Avg. No.

of

farmers

visits

No. of

Self

helpgrou

ps

No. of Stalls

No. of

Register

ed

farmers

Average

No. of

consumer

s visiting

For

Framer

s

For

Self

help

group

s

1 Alwal 1.17 40 km 220 15 118 05 2300 4,200

2Mehdipatn

am2 50 km 450 15 350 15 5000 4,500

3 Kukatpally 1.20 72 km 360 12 280 12 4200 5,500

4 Kothapet 2 60 km 200 08 144 06 3200 4,000

5Vanathalip

uram2.2 70 km 160 08 108 08 2600 2,800

6 Erragadda 2.5 60 km 350 16 230 18 7500 6,000

7Quthbullap

ur1 80 km 120 05 46 05 1800 1,200

8 Falaknuma 1 56 km 180 09 111 09 2200 1,800

9Ramakrish

napur1 60 km 130 06 42 06 2000 1,500

TOTAL 14.07 ( 60.9 )270

( 241 )

94

( 10 )

1429

( 158 )

84

( 9 )

30800

( 3422 )

31500

( 3500 )

Page 7: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

Note: Figures in parenthesis indicate averages.

Chief Executive Officer, Rythu Bazar, O/o Comr. & Director of Agril. Marketing,

Govt. of A.P., Hyderabad

S.

No

Name of the

Rythu Bazar

Expendi

ture to

run

Rythu

Bazar

Income / Per month

Rent from

Self Help

groups

Parking ToiletCantee

nTotal

1 AlwalBorn by

Got45,000 18,000 2,700 2,000 67,700

2Mehdipatna

m“ 45,000 50,000 3,200 4,000

1,02,20

0

3 Kukatpally “ 32,000 42,000 3,500 5,000 82,500

4 Kothapet “ 21,000 40,000 2,800 2,000 65,800

5Vanathalipur

am“ 20,000 30,000 2,900 3,000 55,900

6 Erragadda “ 36,000 80,000 4,400 5,5001,25,90

0

7 Quthbullapur “ 45,000 55,000 3,100 2,8001,05,90

0

8Falaknuma

“ 20,000 28,000 2,100 3,500 53,600

9

Ramakrishna

-puram “ 18,000 22,000 2,000 2,500 44,500

Page 8: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

TOTAL2,82,000

3,65,000 26,700 30,3007,04,00

0

Table – 2 Expenditure and Income of Rythu Bazars at Hyderabad

District

Rythu Bazars are Govt. organizations and the whole expenditure incurred to

run, Rythu

Bazar is borne by the state Govt. of A.P. The salaries to official are paid

through Govt. Fund. The Govt. has made arrangements to raise funds for

Rythu Bazars from themselves to certain extent. These funds are raised

through rents of stalls/ sheds to self help groups, rents from canteen, toilet

usage fee and through auction of parking of space to private agencies. The

average estimated income to Rythu Bazar is estimated as Rs. 78,200. The

details are given in table 2

There is a proposal from the state government to increase the rent for

stalls allotted to self help groups by rupees 1000 each to meet the increasing

expenditure of the Rythu Bazars.

The fund raised is credited to Rythu Bazar funds and used for the

purpose of providing sanitation, drinking water facility, purchase and repair of

weighing instruments at Rythu Bazar. We can observe such an income of

different Rythu Bazars in the above table no. 2 Important vegetables

marketed through Rythu Bazars during the survey in the month August -

2008

During the survey, in the month of August 2008 in all the nine Rythu

Bazars, the data regarding the arrival of different vegetables in quintals and

their prices fixed in Rythu Bazars in comparison with the rates in open market

Page 9: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

were collected. Accordingly the most commonly available 10 vegetables were

sorted out and analyzed the data is given in the Table

The most commonly available vegetables in nine Rythu Bazars were

found as tomato, brinjal, lady’s finger, green chilli, cauliflower, cabbage,

carrot, potato, onions, ribbed gourd and the data of their weight at entry level

were collected. To compare the prices of local market, prices were also

collected. It is significantly found that the prices at Rythu Bazar are lower

than the open market rates.

Monitoring of Rythu Bazar

Monitoring in Rythu Bazars is done every day through out the

marketing period by the Estate Officer with the supervisors. These officials

see whether the weighing scales are properly used and the farm vendors are

selling their produce at the prices fixed by them. They also check that there

are no disputes between the farmers and consumers. If they receive any

complaint from the consumer regarding the calibration of weighing scales or

price. Immediately the enquiry is made and the problem is solved. If

necessary the produce of the complained farmer is immediately seized and

suspended for sale at Rythu Bazar. Even the dispute among the farmer

vendors are also resolved by the Estate Officer. Therefore, it is observed that,

the Estate Officer and the Supervisors help in smooth running of the Rythu

Bazars.

Thus the idea of Rythu Bazars / Farmers market was an innovation to

promote the idea of direct sale by farmers to consumers without involving the

middlemen. Such innovations to remove any obstacles in marketing by

farmers could help in the removal of middlemen and money lenders.

The Rythu Bazar week is being celebrated all over the state from January 2nd

to 8th to review and improve the functioning of these Rythu Bazars. It is

generally agreed that the Rythu Bazars have stabilized the prices in the local

market, specially that of vegetables and the consumers have opined that

Page 10: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

they get fresh vegetable at cheaper rates at least by Rs. 2 /- or Rs. 3 /- per

Kg. The vegetable consumer’s satisfaction is found to be a boon to farmer

vendors who market there farm produce at these Rythu Bazars.

ANALYSIS

Farmers Vendors at Rythu Bazar:

The socio economic characteristics of vegetables farmer vendors

selling their produce at Rythu Bazars are collected through a questionnaire

which consisted of important variables regarding their personal information

like age, sex, caste, education qualification, land holding, the different

vegetables they grow and market them at Rythu Bazars. Their economic

status and their marketing activities at Rythu Bazar were collected and

analyzed. The important factors such as the working of Rythu Bazar and the

infrastructural facilities provided for the purpose of marketing for the farmer

vendors and the customers who come to buy vegetables were also collected

and analyzed. The pertinent questions which cover to test weather the

objectives of the concept of Rythu Bazar is achieved from the farmer vendors

view point were also carefully collected and analyzed to draw the inferences.

Socio – Economic Characteristics of farmer vendors

Age:

From the sample it is found that the farmer vendors who come to

Rythu Bazars are mostly in their prime age that is 25 to 35 year, followed by

36 -50 and above 50. The details are given in the table 4

Table 4 Age and Sex of the farmer vendors who come to Rythu

Bazar in Hyderabad [GHMC]

S. No Category Male Female Percentage

Page 11: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

- Age

1 20 - 35 55 7 62

2 36 – 50 15 10 25

3 50 above 7 6 15

Total 77 23 100

Sex:

The majority of the sample farmer vendors are male. The considerable

proportion of female farmer vendors also involve in marketing the vegetable.

While coming to Rythu Bazars at least in some cases both husband and wife

together market their farm produce. Therefore, in certain stalls, SHGs female

members and individual female members are taking part in marketing at

Rythu Bazars [table 4]

Education

Table 5 The Educational level of the farmer vendors

S.

N

o

Category No.Percenta

ge

1 Illiterates 35 35 %

2 Upto Primary 25 25 %

3Upto

Secondary30 30 %

4Above

Secondary10 10 %

Total 100 100

From the above table 5 it is found that most of the farmer vendors are

literate i.e. 65 % and only 35 % are illiterate. Majority of the literate farm

vendors have studied upto secondary followed by primary and above

secondary levels. It is also found that the youth ranging from 15-25 years of

Page 12: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

age are literates who had education upto S.S.C. and above and the elder

farmers are mostly illiterates.

Caste wise distributions of the farmer vendors are given below

Table – 6 Caste wise distributions of the farmer vendors at Rythu

Bazars

S.

N

o

Caste No.Percenta

ge

1 ST 03 3 %

2 SC 35 35 %

3 BC 41 41 %

4Others ( F.C. &

Muslim )21 42 %

Total 100

It is found that the farmer vendors who sell their produce at Rythu

Bazars mostly belong to schedule caste i.e 41 percent followed by backward

caste 35 percent other caste which comprises of forward caste like Reddys,

Chowdarioes and Muslims 21 percent and farmers belonging to schedule tribe

03 percent. Thus most of the sample of vendors belongs to either SC or BC

caste. Therefore the Rythu Bazars are found to be very helpful to SC and BC.

However the farmers belonging to other castes like forward castes & Muslims

who mostly belong to marginal and small farmers are found to be patronizing

the Rythu Bazars [table 6]

Sources of Irrigation to Grow Vegetables

Table – 7 Sources of Irrigation for growing vegetables by the farmer

vendors to supply to Rythu Bazar

S. Sources of Total Percentag No. of Percenta

Page 13: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

No Irrigationwet land

in acrese farmers ge

1Dry ( Rain

Fed ) land220 59.5 100 100

2Bore wells /

Wells137 37.0 64 64

3 Canals 13 3.50 6 6

Total wet land 150 40.5 70 70

Grand Total 370 100.0 100 100

In the sample of 370 acres of land only, 150Acres of land is under

irrigation facility like bore well / canals which is considered to be wet land. It

is used for growing vegetables and other produces. It is also found that about

220 Acres of dry is land also used for growing vegetables. Of the total

farmers 70 percent have wet land also. In other wards 30 percent of farmers

have only dry land, while 70 percent farmers have both dry and wet lands

[table 7]

vegetables grown by farmer vendors

Table – 8 commonly grown vegetables by farmer vendors of Rythu

Bazars

S. No.Vegetables

grown

No. of farmers grown

there vegetables

1 Tomato 62

2 Brinjal 31

3 Lady’s Finger 25

4 Potato 23

5 Leafy Vegetables 23

6 Green Chilies 22

7 Cabbage 20

8 French Beans 19

Page 14: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

9 Cauliflower 19

10 Beet Root 14

11 Cucumber 12

12 Bitter Gourd 11

13 Ridge Gourd 10

14 Collocasion 09

15 Cluster Beans 08

16 Snake Gourd 08

17 Drum stick 08

18 Pumpkin 07

19 Raddish 06

20 Yam 06

21 Carrot 06

22 Onion 05

23 Donda 05

24 Capsicum 04

25 Green plantam 04

26 Sweet Potato 03

27 Spring Onions 03

28 Filed Beans 02

29 Green Mango 01

30 Others -

More than 30 different varieties of vegetables are supplied and sold at

Rythu Bazars besides leafy vegetables, fruit and flowers. Mostly these

varieties are grown locally. Farmers generally grow more than two or three

varieties of vegetables. The cultivation or growing of these vegetables

depends upon the season and demand.

The most commonly grown vegetables by farmer vendors to supply to

Rythu Bazar are analyzed and presented in table. Accordingly the vegetables

like tomato, lady’s finger, brinjal, green chilies are mostly grown by majority

of farmers followed by Potatoes, Cauliflower, French beans, cabbages are

Page 15: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

some of the important vegetables grown by the farmers. Other vegetables

are grown by less number of farmers and in less quantity.

Leafy vegetables like coriander, spinach etc. are also in regular

demand, lime, drum sticks, Papaya, Mangoes etc., are also in extreme

demand and more shortage according to the farmer vendors. However it is

found that tomato is most popularity grown and demanded vegetable with 62

percent followed by brinjal, lady’s finger, leafy vegetables, capsicum etc., it is

also found that at least with 2 percent. Locally not grown vegetables are

supplied from other states and marketed by SHGs. [Table 8]

I

Income and expenditure pattern of farmer vendors at Rythu Bazars

Expenditure pattern:

Income and expenditure pattern of farmer vendors has been

analyzed. Accordingly majority of the farmer vendors ( 56 percent ) spend or

invest on an average monthly a sent Rs. 2,270 /- followed by 26 percent

spend about Rs. 4,560 /- and just 10 percent spend about Rs. 8,750 /- and

only 8 percent spend about Rs. 850 /- per month. In other words on an

average the farmer vendor spend about Rs. 3,400/- per month. The details

are presented in table 9

Table – 9 Monthly average Expenditure/Investment of farmer vendors who

come to Rythu Bazars.

S.

N

o

Investment No.Total

Investment Average

1 Upto – 1000 8 6,800 850

2 1000 – 2500 56 1,27,120 2270

3 2500 – 5000 26 1,18,560 4560

45000 -

1000010 83,500 8750

Page 16: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

Total 100 3,39,980 3400

Average = 3,400.

Gross Sale:

In the same way average month gross sale proceeds are

estimated. Accordingly the average monthly gross sale proceeds is about Rs.

6,852/-. Almost half of the farmer vendors get Rs. 8,700/- to as high as Rs.

15,700/- while half of them get about Rs. 1,560/- to Rs. 3,765/- [table 10]

Table –10 Monthly sales proceeds of farmer vendors at Rythu Bazars.

S. No Gross Sales No.Total

InvestmentAverage

1 Upto – 2000 20 31,200 1560

2 2000 – 5000 30 1,12,950 3765

3 5000 – 10000 35 3,05,200 8720

4 10000 - 20000 15 2,35,875 15275

Total 100 6,85,225 6852

Average = 6,852.

Table 11 Problems of Formers at Rythu Bazar

S.N

o Problem

Respons

e

( N=100)

Percetag

e

1 Lack of cold storage ( infra structure) facility 98 98

2

Absence of periodical cleaning and spraying of

anti insecticides in the premises of Rythu bazar

leading to accumulation of heaps of garbage and

breeding of flies and mosquitoes 92 92

3 Lack of proper facility to dispose the spoiled 85 85

Page 17: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

produce

4 Insufficient number of stalls 80 80

5

preference given to self help groups for

allotment of stalls 75 75

6

Existence of corporate bazaars like Reliance,

Fresh, Subhiksha, Spencers, etc., discourage

pretty formers to sell their produce at

Rythubazar 72 72

7

Walking pathways are occupied by small

vendors at the entrance 64 64

8 Stalls space is not sufficient 60 60

9

Bargaining and sorting of vegetables by

consumers 34 34

10

Fixing of Prices by Rythu Bazaar officials is

Arbitrary and some times less than the actual

market rates 30 30

11 Political influence 12 12

12

Indulging in mall practices by Rythubazar

Contract Officials 10 10

Table 12 Problems of Faced by the consumers at Rythu Bazaar

S.N

o Problem

Respons

e

( N=100)

Percentag

e

1

Prevalence of unhygienic condition emitting

foul smell and infected with flies and

mosquitoes 90 90

Page 18: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

2 High Prizes during weekend 88 88

3

problem of parking vehicles especially

weekends 84 84

4 Location of Rythu bazars are not convenient 77 77

5 Formers do not allow sorting out vegetables 70 70

6

First grade vegetables are auctioned to

corporate bazaars only second grade produce

is for sale at rythu bazars 66 66

7

Walking pathways are congested and occupied

by small vendors 58 58

8

No much difference in the rate of commodities

compare to open market 50 50

9

Stale and fresh vegetables are mixed to cheat

the consumers 42 42

10

Some former ignored price list and charge

more 40 40

11 Currency change hinders the transaction 38 38

12 Formers refusal to sell small quantities 36 36

13

locating and identification of rythu bazar official

is difficult 20 20

Source : The Study Survey

Net Income:

Average monthly profit or net income has been estimated for

the sample farmer vendors who visit to Rythu Bazars. To estimate monthly

profit are net income, the average gross sales is taken as gross profit and

average expenditure or investment which includes labour, inputs and

transport and other over head expenditure of farm vendors are considered.

Care has been taken while estimating different variables includes cost of

seeds, fertilizer pesticides, electricity charges and labor charges including

transport charges according to the farmer vendors. Thus monthly average

Page 19: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

profit or net income has been estimated as gross sales minus expenditure.

Accordingly the average monthly profit to an average farmer vendor has

been estimated as Rs. about Rs. 3,452 /-. Majority of the farmer vendors get

net income or profit less than Rs. 2,275 /- per month. These farmer vendors

are mostly marginal and small farmers. About 48 percent of farmer vendors

get monthly net income to the tune of Rs. 4,500 /- to Rs. 7,400 /-.

Summary:

Initially about 49 Rythu Bazar or ‘Kisan Ki Mandi’ are initiated by the

government of Andhra Pradesh on January 6th, 1999. Within a span of nine

months, number of Rythu Bazars has increased from 49 to 102 by covering

nearly 40,000 farmers from 2,800 villages in all the district head quarters and

important cities in Andhra Pradesh.

The average estimated income to Rythu Bazar is estimated as Rs.

78,200. The most commonly available vegetables in nine Rythu Bazars were

found as tomato, brinjal, lady’s finger, green chilli, cauliflower, cabbage,

carrot, potato, onions, ribbed gourd and the data of their weight at entry level

were collected. To compare the prices of local market, prices were also

collected. It is significantly found that the prices at Rythu Bazar are lower

than the open market rates.

The Rythu Bazar week is being celebrated all over the state from January 2nd

to 8th to review and improve the functioning of these Rythu Bazars. It is

generally agreed that the Rythu Bazars have stabilized the prices in the local

market, specially that of vegetables and the consumers have opined that

they get fresh vegetable at cheaper rates at least by Rs. 2 /- or Rs. 3 /- per

Kg. The vegetable consumer’s satisfaction is found to be a boon to farmer

vendors who market there farm produce at these Rythu Bazars.

Income and expenditure pattern of farmer vendors has been analyzed.

Accordingly majority of the farmer vendors ( 56 percent ) spend or invest on

Page 20: Role of Rythu Bazars in Urbanisation  -  S.P. Krishna Veni

an average monthly a sent Rs. 2,270 /- followed by 26 percent spend about

Rs. 4,560 /- and just 10 percent spend about Rs. 8,750 /- and only 8 percent

spend about Rs. 850 /- per month. In other words on an average the farmer

vendor spend about Rs. 3,400/- per month and the average monthly gross

sale proceeds is about Rs. 6,852/-. Almost half of the farmer vendors get Rs.

8,700/- to as high as Rs. 15,700/- while half of them get about Rs. 1,560/- to

Rs. 3,765/- the average monthly profit to an average farmer vendor has been

estimated as Rs. about Rs. 3,452 /-.

Majority of the farmer vendors get net income or profit less than Rs. 2,275 /-

per month. These farmer vendors are mostly marginal and small farmers.

About 48 percent of farmer vendors get monthly net income to the tune of

Rs. 4,500 /- to Rs. 7,400 /-. At the outset, Rythu bazaars are very much useful

for the customers as well as farmers, therefore, continous support from the

government is necessary condition.