New visions and role of APMCs

In the present era of liberalisation to boost the agricultural economy

B.K. PATY Deputy Director NIAM

New role of APMCs- outline of the presentation

          Shift from salesmanship to marketing Dealing with Service product-intangibility,simultaneity Marketing extension Promotion of direct marketing, contract farming, processing- leading to export, better returns to farmers, reduction of transaction costs etc.

Promotion of grading and standardisation Making the traders association responsible GAP,HACCP,GHP,traceability etc. especially from export point of view Professionalisation of management Transparency in dealing/ auctioning Providing infrastructure and efficient services ( Promotion of PPP mode)

dealing with a service product

  Marketers of services face a bigger challenge due to unique nature of services intangibility, heterogeneity, inseparability, perishability Go beyond 4 Ps- product, price,promotion and distribution (Place) .Also    people, process and physical evidence

Key Marketing issues

 The unique characteristics of services present some key marketing issues  Managing differentiation amongst services ( offer, delivery, image, service premises, packaging, personnel, tools and equipment used, customer, convenience, name of the organisation)   Managing productivity (Commitment, High standards , Monitoring system, Customers’ complaint ) Managing service quality(technology,selection & training, standardisation of services, customer’s involvement, employees’ skill utilisation)

Organization Internal Marketing External marketing Front Line Employees Internal marketing Customers

MARKETING EXTENSION

  Marketing extension is the order of the day in the post-WTO regime The incidence of huge post harvest losses can be attributed to poor marketing extension to a large extent.

Role of APMC

    Advice on production planning : careful selection of the crop from marketability viewpoint-internal or export Marketing information : price and arrivals, forecasting of market trends, demand of other markets, facilities available in the target markets, quality requirements, market fees etc .

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

Advice on improved marketing practices: quality, awareness about post-harvest losses etc.

packaging, appropriate storing methods, standardization and grading and other post harvest management practices such as maintenance of

Role of APMC

      Advice on establishing and operating markets: Farmers groups to set up and run their own markets within framework of rules Processing and value addition: Group action: Farmers to be educated about value addition through primary processing Promotion of informal groups and Self Help Groups(SHGs) Marketing Credit: schemes of marketing credits,

pledge finance scheme

Educating farmers about different

Advice on warehousing with

Problem solving methods: micro-level Marketing extension for export market : WTO implications, Codex, HACCP, Euro gap standards,

Awareness on ill effects of pesticide/insecticides residue

etc.

Promotion of Direct Marketing, contract farming, processing

  Less than 2% of f & v processed in India, as against 65% in USA, Brazil, Phillipines, South Africa and 83% in Malaysia Similarly the extent of value addition is 7 % in India as against 23% in China and 88 % in UK

Area & production of agri products

Area and production of Agricultural products ( Production in million tonnes)

Arable Land

(Million ha)

Irrigated Land

(Million ha)

Wheat Rice, Paddy Coarse grains (including maize) Milk Fruits Vegetables Edible Oilseeds Pulses Sugarcane Tea Cattle (million) India

151 55 72 124 29 91 47 82 25 15 245 0.85

186

India ’ s Rank in World Production

2 1 2 1 2 1 2 2 3 1 2 2 3

30 20 10 0 70 60 50 40 15 major food items of export (INR billion Rs)

APMC role in contract farming

    Provisions of a model agreement sensitisation Awareness about dispute redressal mechanism.

Collection of market intelligence data about contract farming Registration of contracts, whre authised

Promotion of grading and standardisation    Bureau for grades and standards feeding information and working in close coordination with the Bureau Awareness about existing grades and standards.

Identification of commodities and preparation of proposals for preparation of grades and standards.

Making the traders association responsible      Feedback about policy issues Involvement in waste disposal and management.

role in maintenance of food safety and quality Role in ensuring transparency in the business Role in training of the farmers

GAP,HACCP,GHP,traceability etc. especially from export point of view    Testing facility in the premises of APMC Awareness about the quality management tools amongst the stakeholders.

Big APMCs can set up training centres with an attached laboratories

Professionalisation of management     Appointing professional managers as CEOs from the panel prepared by the Board Computerisation Computerised linkage of fees with the arrivals through automation Service orientation

Transparency

   Auctioning Allocation of shops etc.

Computerised linkage of market fees with arrivals

Providing infrastructure and efficient services ( Promotion of PPP mode     Outsourcing Infrastructure in the premises in PPP mode.

Collection centres in PPP mode.

Transportation, grading and packing units etc. in PPP mode.

THANK YOU