COSAMB-Dr.-B.K.Paty_1

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Agricultural Marketing
Management System
-Improving the Quality-
By
Dr. B. K. Paty
Director (OSPM), MANAGE
Outline of the Presentation
• Reforms – No ‘one size fits all
approach’
• Service consciousness –
• Linking Production with Marketing
• Collective responsibilities
• Removing the constraints
Reforms – No ‘one size fits all’
• Model Act provisions
• To be calibrated as per the State
needs
• Amendments in forms – Not in
substance
Service Consciousness
• Mandies deal with service products
• Characteristics – Intangibility,
Simultaneity, Perishability
• Service Consciousness of Mandi
Functionaries – Competitiveness
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
Organization
Internal Marketing
Front Line
Employees
External marketing
Customers
Internal marketing
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)
Linking Production with Marketing
• Integrated District Plan – Strategic Research and
Extension Plan (SREP)
• Marketing Extension – Responsibility of all line
departments
• The SREP document will be a perspective plan for
next 10-15 years
• Ensure optimum utilization of resources
• Help in deciding precise marketing intervention
Collective Responsibilities – All line Departments
• 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.
(Contd.,)
Collective Responsibilities – All line Departments
• 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:- Promotion of informal groups and Self Help
Groups(SHGs)
• 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, Awareness on ill effects
of pesticide/insecticides residue etc.
New Role of APMCs
• Shift from salesmanship to marketing
• Dealing with Service product-intangibility,simultaneity
• Marketing extension
• Promotion of direct marketing, contract farming, processingleading to export, better returns to farmers, reduction of
transaction costs etc.
• Promotion of grading and standardization
• 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)
Reviewing the Existing Constraints
Issues
Action Needed
• Predominantly marginal
or small farmers
• Small quantities of
marketable surplus &
limited bargaining power
Aggregation of produce needed for value addition
& bargaining power
Farmers to have better market access through
SHGs, Cooperatives, Farmers’ Companies, etc.
Aggregation/ Collection/ Value Addition Centres to
be set up near farm gate.
• Poor availability of
markets (predominance of
APMCs)
Amendments in State APMR Acts to allow &
facilitate alternate channels of marketing with an
open choice to farmers
Direct marketing, farmers’ markets, contract
farming, private markets, modern terminal markets,
e-trading, etc.
Reviewing the Existing Constraint
Issues
Action Needed
• Inadequate infrastructure in • Modernization of existing markets
wholesale markets/ rural
with public investment or through PPP
primary markets
& facilitating setting up of modern
private markets
• Lack of fair price discovery • Providing facilities for electronic
mechanism
auction in wholesale markets
• Setting up of e-trading platforms
(both futures & spot) and
• Mitigating price risk through contract
farming
Reviewing the Existing Constraint
Issues
• Multiple and exploitative
intermediaries – low
returns
Fragmented supply chain,
poor cold chain & high
post-harvest losses
• Lack of cleaning, grading,
packaging & quality
certification facilities
Action Needed
Encouragement to shortening of supply
chain/ vertical integration through direct
marketing, organized retail chain
 Incentives to integrated cold chain
infrastructure with an end to end approach
(Terminal Market Complexes).
Promotion of aggregation/ consolidation
in various ways
Incentive for grading &
quality assurance
infrastructure
Creation of awareness
about quality & food
safety standards.
Reviewing the Existing Constraint
Issues
Action Needed
• Multiple agencies involved in
Creation of single window quality
quality confirmation & regulation confirmation (Food Safety &
of exports
Standards Law already in place)
Single window export clearance
systems (APEDA Law amended).
• Limited access to market
information and marketing
opportunities available
Enriching Marketing Information
Network, strengthen market
intelligence delivery under PPP
Activation of Common Service
Centres (CSCs) in villages for easy
access to information.
Conclusions
• Utilize ATMA as a collective forum
• Strength lies in Unity
• Key to success lies in holistic approach
Thank You
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