(Presentation by Dr Ajeeth , COSAMB).

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Agricultural Marketing in Kerala

DEPARTMENT OF AGRICULTURE

KERALA STATE

1 1

Kerala at a Glance

 Located on the Malabar cost of southwest India at the extreme southern tip of

Indian Sub continent

 Geographical area of 38863 Sq.Km.

 Humid equatorial tropic climate.

Coast length of 590KM

1 2

3 climatically distinct regions

• The eastern high lands with cool mountainous terrain

• The central mid land with rolling hills

• The western coastal plains which is relatively flat and is criss-crossed by a network of interconnected brackish canals, lakes and backwaters.

1 3

Population(2011Census)

• Total Population =333.88 lakhs

• Rural Population = 174.56 lakhs

• Urban Population =159.32 lakhs

• Average density of population = 859 per

Sq.Km.

Nearly half of Kerala’s population are dependent on agriculture alone for income.

1 4

44 Rivers

• 41 west flowing rivers

• 3 east flowing rivers.

Climate

• 120-140 rainy days per year

• Average rainfall of 3107 mm annually

1 5

Area

• Total Geographical Area =3886287 ha.

• Total Cropped Area =2668678 ha.

• Average size per holding = 0.27 ha.

JGT/ADAM/DOA/TVM 6

Major Crops In Kerala(2009-10)

S.No.

1

2

3

Crop

Paddy

Tapioca

Banana and other

Plantain

Area , Production,Productivity

Area in ha.

234013

Production(

MT)

598339

Producti vity(Kgs/

Ha)

2557

74925 2525384 33705

9

10

11

12

6

7

4

5

8

Coconut

Arecanut

Pepper

Rubber

Ginger

Cardamom

Tea

Coffee

Cashew

99077

778618

99188

171489

525408

5408

41593

36845

84796

48972

744788

5667

(Million Nuts)

116763

7515

7278

Nuts / ha

1177

42459

745510

28603(Dry)

7800

248

1419

5288

(Processed)

57810

59250

35818

188

1569

699

731

1 7

Other crops

• Vegetables = 43412 Ha

• Nutmeg = 15931 Ha

• Clove = 1206 Ha

• Cinnamon = 321 Ha

• Mango = 63751 Ha

• Jack = 78148 Ha

• Pineapple = 9627 Ha

1 8

Market Scenario

The APMC Act has not been enacted in

Kerala till date.

Markets in Kerala are only governed by

Panchayats/ Municipalities/ Corporations and not regulated by them.

No adequate infrastructure available in the markets for efficient marketing

1 9

Market Scenario continued

• 348 wholesale assembly markets

• 1014 rural primary markets

• Rural primary markets are either in the

Private/Co-operative/LSG Sector.

• The exploitation of farmers by the middlemen have been prevented to a great extent and the farmers are equipped for organized direct marketing of farm produce through programmes organized by Department of Agriculture and other allied agencies like VFPCK, Horticorp etc.

1 10

Organizational Set Up

Director of Agriculture

Additional Director of

Agriculture (Marketing )

Additional Directors

Deputy Direcrtor of

Agriculture(Marketing)

3 Urban Wholesale Markets &

3 Rural Wholesale Market secretaries

14 Assistant Directors of

Agriculture(M)

One each in all 14 districts

Assistant Secretaries

14 AGMARK Labs

Technical Assistant

(Marketing)

1 11

Organizational Setup

1 State Level

(

Directorate of Agriculture)

2 District Level

3 14 Agmark Labs

Addl Director(M)-1

Deputy Director(M)-1

Technical Assistant(M)-1

Asst.Director(M)-14

One in each 14 districts

Staff pattern in AGMARK Labs

Chemist(AO)-1

Lab Assistant-1

Class IV Employee-1

1 12

4

Organizational Setup (continued)

Urban Wholesale

Markets

5 Rural Wholesale

Markets

Joint Director of Agriculture is the Market Secretary supported by an Assistant

Secretary (Assistant

Director of Agriculture) and supporting ministerial staff.

Deputy Director of Agriculture is Market Secretary supported by an Assistant

Secretary (Assistant

Director of Agriculture) and supporting ministerial staff .

1 13

Wholesale Markets under Department of

Agriculture

• 6 Wholesale Agricultural Markets have been established with fund from

European Union

• Objective:improve the agricultural marketing in the state and promoting direct marketing by the farmers to avoid exploitation by the middlemen.

1 14

Whole sale markets (Continued)

• 3-Agricultural Urban

Wholesale Markets

• Anayara,

Thiruvananthapuram

• 3-Agricultural Rural

Wholesale Markets

• Nedumangad,

Thiruvananthapuram

• Muvattupuzha, Ernakulam

• Maradu, Ernakulam

• Sulthanbatheri, Wayanad

• Vengeri, Kozhikode

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Infrastructure available

• Auction hall

• Shops to be rented out to the farmers

& Traders

• Electronic weigh bridge,

• Dormitory facilities

• Canteen

1 16

State Government Organizations associated with Agricultural Marketing

• A) Vegetable and Fruit Promotion Council

Keralam

• Farmers group in villages

• 175-Farmers Markets Managed by Farmers:-

The agricultural produce from the farmers are pooled and auctioned through the Swasraya Vipani (Farmers

Markets

)

• Farmers Markets ensured remunerative price to Farmers

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State Government Organizations associated with

Agricultural Marketing (Continued)

• b) Horticorp (

Kerala State Horticultural

Products Development Corporation)

Involved in the procurement and marketing of horticultural products (including honey) throughout the state

150 Outlets throughout the state

Mobile sales units in 4 districts (Kollam,

Trivandrum, Kottayam and Ernakulam)

1 18

State Government Organizations associated with Agricultural

Marketing (Continued)

• Horticorp

(Continued)

• Horticorp participate in the direct auctions being conducted by farmers in the Agricultural Wholesale Markets and procure the commodities which are not purchased by the traders.

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c. Kerafed

• Apex co-operative federation under

Government of Kerala formed in 1987 assisted by the European Union, National

Co-operative Development Corporation and

Government of Kerala

• largest procurer of coconut/copra produced in Kerala.

• Procure copra at MSP rates.

• Copra procured is processed and Marketed as coconut Oil under the brand name

“KERA”

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d. Rubbermark ( The Kerala State Cooperative Rubber Marketing Federation Ltd

.

)

• Apex institution of the 38 primary rubber marketing co-operatives in

Kerala.

• Functions with active Participation of

Government of Kerala & Rubber Board

• largest supplier of natural rubber and the biggest stockist of all grades of natural rubber in the country

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e. Marketfed

• Marketfed is an apex body for primary marketing co-operative societies in Kerala

• Deals with traditional agricultural commodities like Pepper,dry

Ginger,Cardamaom,turmeric,copra, arecanut,Rubber and cashew

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F. Infrastructure facilities available

• cold storage facilities

A)Markets under Department

AUWM-Anayara- cold storage capacity-

15 MT

B)RAWM-Muvattupuzha & RAWM- Sulthan

Bathery

Cold storage facilty will be established during current year.

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Cold storage facility available under other institutions

• Air cargo complex Thiruvananthapuram

• State Horticulture Mission & APEDA :-

Temperature and humidity controlled storage facility at Angamaly,Ernakulamstorage capacity-25400MT at

CIAL,NEDUMBASSERY

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G.

Market Intelligence

A) AGMARK NET

• 92 Agmark net nodes –collect data and information on important commodities such as minimum, maximum and modal prices of varieties and arrivals in the selected markets and then uploaded to the site AGMARKNET Portal

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Other Market Intelligence

Programmes

• Kerala Agricultural University :–

Deals with the market intelligence activities of cardamom,pepper and

Coconut

• Vegetable and Fruit Promotion

Council Keralam:-

Deals with the market intelligence activities of Fruits and Vegetables

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H . Market Intervention Support for Price Stabilization

.

Objective

• Launch procurement operations through designated agencies on selected agricultural commodities during harvesting season with a view to guarantee remunerative price to the growers.

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I. Grading and Quality Control of

Agricultural Commodities

• 14 State Agmark Grading Laboratories one in each district.

• Assessing quality of farm produce marketed, fixing grades of commodities and provide

“Agmark” certification to processed Agri products

• The main produce being graded in these laboratories are coconut oil, gingelly oil, curry powders, ground spices, honey, ghee etc.

• On an average agricultural produce worth Rs. 15 crores/annum are being graded through these labs

.

1 28

J.

OTHER PROGRAMMES

1.Paddy Procurement

• The procurement programme of paddy will assure the farmers a remunerative price of paddy produced.

• Kerala State civil supplies Corporation procures paddy from farmers as per the procurement price announced by

Government of Kerala .

• The difference in price between procurement price fixed by Government of Kerala and MSP declared by Government of India is paid by the

State Government as subsidy

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Price Difference between MSP & Procurement Price

1600

1400

1200

1000

800

600

400

200

0

2009 2011

MSP

Procure ment price

1

2009

MSP =900/Qtl

Procurement price =1100/Qtl

2010

MSP =1000/Qtl

Procurement price =1200/Qtl

• 2011

MSP =1000/Qtl

Procurement price =1300/Qtl

2012

MSP =1080/Qtl

Procurement price =1500/Qtl

Note:-MSP is declared by G.O.I &

Procurement Price is declared by

G.O.K

30

2. Copra Procurement

• NAFED central nodal agency of Government of India undertakes procurement through the State Level

Designated Agencies

– Kerafed and Marketfed.

• Procure Milling copra,Ball Copra and dehusked coconut with water at MSP declared by Government of

India.

• Procurement of green coconut is also carried out on a parity price of MSP for copra

.

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6000

5000

4000

3000

2000

1000

0

2009 2011

MSP of Copra

2009

Milling

Copra

Milling copra=4500/Qtl

Ball Copra =4700/Qtl

2010

Milling copra=4500/Qtl

Ball Copra =4700/Qtl

• 2011

Milling copra=4525/Qtl

Ball copra Ball Copra =4775/Qtl

2012

Milling copra=5100/Qtl

Ball Copra =5350/Qtl

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K. Innovations in Agricultural

Marketing in Kerala

a. E-trading in cardamom

Spices Board has established a Spices Park for a common e- auction centre

*

Replaced the traditional auction of cardamom in

Kerala.

* The stakeholders of the cardamom auction are traders, planters auctioneers, dealers, dealer exporters.

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b. Auction in Agricultural Wholesale

Markets under Department of Agriculture

• From 2010 onwards, direct auction of farmer’s produce has been started in Agrl wholesale markets of the department

Farmer clusters have been formed within a radius of 25

Km from each market and produce from these clusters are auctioned through Agrl Wholesale Markets.

• Transport of agricultural produce from the farmer clusters to these markets has been arranged by the markets themselves

.

• To prevent occlusion of traders towards reducing price of commodities, the Government of Kerala enterprise,

‘Horticorp’ participates in all the auctions

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C.Establishing district level Procurement cum

Marketing centre

• Objective:-

Enable the farmer to get a remunerative price for their produce by avoiding the intermediaries.

• A pilot project in the five districts – Idukki,

Alappuzha, Kollam, Thrissur and Kottayam

• The procurement of vegetables shall be undertaken through farmers groups

• District Level Procurement cum marketing committee.

1 35

district level Procurement cum Marketing centre(Continued)

• The groups will be given necessary financial support for the procurement of vegetables, from among the farmers and to give the price at the time of procurement itself

.

• Seed money will be provided to the farmer’s clusters as one time grant

Produce pooled from the members of the clusters will be auctioned at the District Level

Procurement cum Auction centre

The activities of the district level centre will be carried out by a committee consisting of farmers and officials of the department.

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