Directorate of Marketing and Inspection

Gaurav Keshari
(M.Sc.,B.Ed.; MBA-Agribusiness )

Marketing Officer

DEFINITION :-

Agriculture
Means activities aimed at the use of natural resources

for human welfare

i.e., it includes all the primary activities of production. But, generally, it is used to mean growing and / or raising crops and livestock.
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

DEFINITION :-

Marketing:connotes a series of activities involved in moving the goods from the point of production to the point of consumption.

It includes all activities involved in the creation of time, place, form and possession utility

Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

DEFINITION :National Commission on Agriculture (XII Report, 1976)

Agricultural Marketing is a process starts with a decision to produce a saleable farm commodity, and it involved all the aspects of market structure or system, both functional and institutional, based on technical and economic considerations, and includes pre and post-harvest operations, assembling, grading, storage, transportation and distribution
Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

Marketing infrastructure
A.O. Hirschman- four characteristics of infrastructure
i) the services facilitate economic activity ii) the services are public goods because of economic externalities iii) the services cannot be imported; iv)investments tend to be indivisible or lumpy

In this context, marketing infrastructure consists of a combination of national assets, sustaining the addition of place, time and form utilities

 Functional Infrastructure Market user common facilities Shortening the Value Chain
Direct Marketing Contract Farming E-Trading Infrastructure

Components of Marketing Infrastructure

Market extension and market oriented production planning Input Supply

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Indian Agriculture has made rapid strides since independence

From food shortages and import

to self-sufficiency and exports.

From subsistence farming

to intensive and technology led cultivation.

Today , India is the front ranking

producer of many crops in the world.

Ushered in through the

green, white, blue and yellow revolutions

Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

India has huge supply advantages due to diverse agro-climatic conditions and wide ranging raw material base

52% cultivable land compared to 11% world average

Largest livestock population

All 15 major climates in the world exist in India

Largest producer of milk

46 out of 60 soil types exist in India

Largest producer cereals

Significant Opportunity India as a global sourcing hub

20 agri-climatic regions

Second-largest fruit and vegetable producer

Sunshine hours and day length are ideally suited for round the year cultivation

Among the top five producers worldwide of rice, wheat, groundnuts, tea, coffee, tobacco, spices, sugar and oilseeds.

Food is the largest consumption category in India...

Significant Opportunity India as a huge Consumer Market

Huge wastage across the supply chain leads to lower level of processing and hence low value addition

Producer

Field Losses (Pest, Diseases, Rodents etc))

Pre-Processing (e.g. inefficient harvesting, drying, milling)

Developing Countries Relatively high losses in the initial parts of the value chain

Level of Processing across Segments Segment Fruits and Vegetables Marine India Other Countries

Transport (e.g. spillage, leakage)

Storage (e.g. technical deficiencies)

US A (65 %), 2.2% Philippines (78%) China (23)%;

26%

Processing & Packaging (e.g. excessive peeling, washing)

Marketing (e.g. spoilage, rotting in stores)

Rich Countries High losses at a later stage in the food chain

Poultry
Buffalo Meat Milk

6%
20%

60-70% in developed countries

Consumer

Wastage by Consumer (e.g. overeating, food wastage)

35%

60-75% in developed countries

Field

For k

Britt-Louise Andersson, SIWI

Faults.. Inadequacy of
Agricultural Marketing infrastructure

Dr. R. R. K, Dy. A.M.A., MSTC, Hyderabad

The First Ever National Agriculture Policy was announced in July 2000 has indicated a nine-fold package of policy initiatives to achieve the objectives Development of Sustainable agriculture Food and Nutritional security Generation and Transfer of Technology Improvement of input efficiency Provision of incentives for agriculture Promotion of Investments in agriculture

Strengthening of institutional infrastructure

Better risk management Introduction of Management Reforms

The expert committee, Government of India (June 2001) made an assessment of investment requirement of Rs.268742 crore for investment in agricultural marketing Infrastructure.

Recommendations
The integrated pack houses catering to farms in respect of regions around 5000-10,000 hectare for washing, sorting, grading , packing, cold storing etc. E-trading for direct marketing through kiosks in the market yard Telephones:- only 59% of villages covered(2001) , 3.5% tele-density against world average of 16, target is 15% by 2015. Examine WCL technology. Rural connectivity:- Only 47.83% of villages covered till mid 90s. Av. road length is 4 km. To connect each village with main road. Investment requirement is Rs 74000 cr. Physical facilities in regulated markets:- auction platforms, shops and godowns etc; Rs 6026 crore during next 10 years

Recommendations.
Specialised markets :- fruits and vegetables, 241 places in the country; 970 crore. Farmers markets:- Apni Mandis in different states. Should be in every district at least. Rural periodic market- 27294 RPMs; investment requirement is Rs. 2146 cr. Storage/ warehousing:- 52 million tonnes storage capacity available , need for creating storages for additional 20 million tonnes now stored in the form of CAP( Covered and Plinth ), investment requirement of Rs.5400 crore Cold storages:- 135 Million tonnes of fruits and vegetables, 30% post harvest losses, during next ten years cold storage capacity of 45 million tonnes for investment of Rs.27000 cr.

Strategies & Initiatives:

Enhancing Value Addition

Draft National Policy on Food Processing prepared. Draft Processed Food Development Act formulated.

Package of promotional schemes available for Agriculture infrastructure development and quality improvement.

schemes

Post Harvest Infrastructure

Farm LevelHarvesting Harvest maturity Indices Harvesting Methods- Manual/ Mechanized Harvesting tools/ kit Collection- sorting/grading at farm Harvesting Containers/Packing material Farm level Storage

Other important factors

Waxing, Drying Grading and sorting Packaging CFB Pre-cooling Ripening / De-greening treatments Cold storage at low temperature Reefer transport

Market level
Mode of Transportation Road conditions Cleaning and grading at mandi Weighment -Digital/ Pan balance Storage at mandi Packaging material/Bagging etc

Quality factors
GAP certification, GHP, GMP & HACCP Vapour heat treatment Pesticide residue level Irradiation Packaging specifications Product Standardization Food safety at Farm, APMC, Storage, Distribution / transportation and at retail mkting

Agrilculutural Marketing Infrastructure, Grading & Standardization Scheme

Coverage of the Scheme

Agriculture/Horticulture Fisheries Meat & Poultry Minor Forest Produce Dairy Medicinal plants Apiculture

Components of the Scheme

Functional Infrastructure Market user common facilities Shortening the Value Chain
Direct Marketing Contract Farming E-Trading Infrastructure

Market extension and market oriented production planning Input Supply

Components of the Scheme

Shortening the Value Chain
Infrastructure for Direct marketing from

producers to consumers/ processing units/ bulk buyers etc

Infrastructure for supporting Contract

farming arrangements between processing/ trading units and farm producers

Infrastructure for E-Trading, market

extension and market oriented production planning.

Infrastructure then & now

REDEFINING THE SUPPLY CHAIN