Transcript New role of APMCs - Agricultural marketing

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 servicesintangibility, 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
Front Line
Employees
External marketing
Customers
Internal marketing
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:- packaging,
appropriate storing methods, standardization and grading and
other post harvest management practices such as maintenance of
quality, awareness about post-harvest losses etc.
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:-
Farmers to be
educated about value addition through primary processing
 Group action:-
Help Groups(SHGs)
Promotion of informal groups and Self
 Marketing Credit:-
Educating farmers about different
schemes of marketing credits, Advice on warehousing with
pledge finance scheme
 Problem solving methods: micro-level
 Marketing extension for export market: WTO
implications, Codex, HACCP, Euro gap standards,
on ill effects of pesticide/insecticides residue etc.
Awareness
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)
India
Arable Land (Million ha)
India’s Rank in
World Production
151
2
Irrigated Land (Million ha)
55
1
Wheat
72
2
124
2
Coarse grains (including maize)
29
3
Milk
91
1
Fruits
47
2
Vegetables
82
2
Edible Oilseeds
25
3
Pulses
15
1
Sugarcane
245
2
Tea
0.85
1
Cattle (million)
186
2
Rice, Paddy
15 major food items of export
(INR billion Rs)
70
60
50
40
30
20
10
0
APMC role in contract farming
 Provisions of a model agreementsensitisation
 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 standardsfeeding 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