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Welcome

TO

SECOND SEMINAR

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SEMINAR TOPIC

MARKET-LED EXTENSION TO ENHANCE

PRODUCER SHARE

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INTRODUCTION

During last 50 years emphasis was given on PRODUCTION-LED EXTENSION (PLE)

India become self reliant on food production.

But the farmers at individual level are not realizing remunerative prices for their produce

They prone to sell their produce “AS IS WHERE” basis.

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Globalization of the market demanded for paradigm shift i.e. from production to market led production.

There are different changes took place at global level which stress the need for opting market-led extension in a large scale Globalization/Economic liberalizationChanged consumer preferenceRevolution in ICTNew trade opportunities within and outside the country Export opportunities

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To meet these challenges........ Farmers need to transform themselves from mere

producers-sellers in the domestic market to producers cum sellers in a wider market.

To achieve this, The questions confronting the farmers are

What to produce ? When to produce ?

How much to produce? When and where to sell ?

At what price to sell? In what form to sell?

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NEED FOR EXTENSION

Conversion of P-L-E into M-L-EOrientation of extension system with knowledge and skills

related to the market.Minimization of production cost.Introduction of export oriented product.Modernization of wholesale markets or new markets with

new Agricultural policy.

Need of market led extension in India

90% of effort is Production orientedOnly 10% on Marketing/Post harvest phasesSingle intervention that can enhance income

by 20-30%Farmer share in consumer price is 25-30%

source : Ministry of Agriculture, Government of India, 2001 ( Draft )

OBJECTIVES OF SEMINAR

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1• To understand the concept of

Market-Led extension

2 • To understand the objectives of Market-Led extension.

3 • To study the evolution of Market-Led extension

4 • To review the case studies related to Market-Led extension.

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Market-led Extension

Kaleel, 2007

Market led Extension is the market ward orientation of agriculture through extension includes agriculture & economics is the perfect blend for reaching at the door steps of farming community with the help of appropriate technology.

Market-led

Identification of customer needs and wants before offering a service

(Text book )Market-Led Extension-Dimensions and Tools

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Need of crisis in extension1. Knowledge input crisis

2. Efficacy crisis

3. Credibility crisis

4. Reorganization crisis

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Superiority of latter over the former

ASPECTS PLE MLE1. Purpose Transfer of Technology Optimum returns out of the

Investment

2. Expected results Adoption of POP High returns to investment

3. Famer viewed Producer Agripreneur

4. Focus Seed to Seed Rupee to Rupee

5. Linkages R-E-F R-E-F extended by market linkages

6. Importance of maintaining record

Not important Important

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Dimensions of market-led extension

Marketing mixMarketing plan Market oriented productionMarket IntelligenceUse of Technology

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MARKETING MIX

PRODUCT PLACE

PRICE

MARKETING MIX FOR AGRICULTURE

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MARKETING PLAN

MARKETING PLAN FOR AGRICULTURE

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OBJECTIVES OF MARKET LED EXTENSION.

Conversion of Agriculture sector into profit oriented business

Strengthening R-E-F linkages – between various departments at various levels.

Strengthening market linkages to farmers – IT application in Agricultural marketing.

Wider use of electronic mass media for Agricultural Extension.

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Conversion of Agriculture sector into profit oriented business

Private trade is 80% marketed surplus

Direct marketing “farmer – consumer “ is negligible

Due to lack of proper handling at farm gate lead to 30 %

F&V, 7% grains, 10% spices loss before reaching market

Rs 50,000 crores /year lost due to poor marketing chain

source : Ministry of Agriculture, Government of India, 2001 ( Draft )

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PRODUCER SHARE IN AGRICULTURE

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Funct ion of MLE for converting Agriculture sector into profit oriented business

Market intelligenceFinancingFacilitating Functions

GradingStandardizationProcessingStorage of farm produce

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Market intelligence The process of collecting, interpreting, and

disseminating information relevant to marketing decisions is known as market intelligence

Why we need MI in agricultureReduce the level of risk in decision-makingSeller finds out what the customer needs and wantsWhat products are right for the marketWhat will be the price

Need of IT application in Extension

Over 50% of farmers do not have access to extension information. 44% have some access.

22% has access through media

(Radio 13% and TV 9%). Lack of information hinders transfer of technology. Only 40% of the Indian farmers are reached by extension service

providers.

Source: National Sample Survey Organization (NSSO) , 2005/7 20

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Sources of marketing information

Notice boards of APMCs News paper Magazine Periodicals Special bulletins Post Radio Television Telephone Telegram Fax Email Website

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Websites for market information

1. Agrisurf

2. NETVET

3. Agriwatch

4. Commodity India

5. Agfind

6. Agmarknet

7. Hortiindia

8. APEDA

9. NCDEX

10. e- CHOUPAL

11. Commodity Board

Market informati

on

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Required information to extension system and farmers

Suitability of land to various crops/enterprises

Crops in demand in near future

Market prices of crops

Availability of inputs

Credit facilities

Desired qualities of the products by consumers

Market price differences

Production technologies

WTO regulations

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Role of Electronic mass media in MLE

Capacity building through programs

Telecast of success stories of farmers

Capacity building program for professionals of private

TV channels and print media organize

Community radio stations in villages linking KVKs

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Role of extension personnel in light of MLE

1. Doing SWOT analysis.

2. Organization of Farmer Interest Group(FIG).

3. Enhancing the Capabilities of local established groups.

4. Enhancing the communication skills of farmers.

5. Establishing market linkages between farmers groups,

markets and processors.

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6. Helping in production and marketing plan.

7. Educating farmers to establish agriculture as enterprise

8. Educating farmers about direct marketing

9. Capacity building of FIGs

10. Expose the farmers to acquire complete market

intelligence.

Role of extension personnel in light of MLE

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EVOLUTION OF CONCEPT OF MARKET LED EXTENSION

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EVOLUTION OF CONCEPT OF MARKET LED EXTENSION

The transition from Legiitimizer-led extension to

Market-Led extension is quiet eventful in the country

Legitimiser–led extension

State-led extension

Farmer/Group-Led extension

Market-led extension

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Legitimiser–led extension (before independence)

Focussed mainly on rural development Some of the attempts include

Scheme of Rural reconstruction- Daniel Hamilton - 1903

Sevagram attempt – Mahatma Gandhiji - 1920

Shriniketan - Rabindranath Tagore -1921

Marthandam project - Spencer Hatch -1921

Etawah pilot project - Albert Mayor -1947Nilokheri Experiment - S.K Dey -1948

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State-led extension (after independence)

Central and State governments took responsibility

Grow more food campaign................................... 1947Community Development Programme.............. 1952National Extension Service................................... 1953 Intensive Agriculture Development Programme....1965 Intensive Agriculture Area Programme............... 1965High Yielding Varieties Programme....................... 1967Drought Prone Area Programme......................... 1971Broad based extension programme...................... 1991Agriculture Technology Management Agency..... 2000

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Farmer /Group-led extension

Reasons for emergence of location specific Group-led extension Disenchantment with government officials dominance Executive led institutional set up Unsustainability of public fund Executive led extension programme

Examples. Cooperative farming Self Help Group Mahila Mandal Farmer Field Schools

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Market-led extension

Started in Kerala in the year 1993 As an experiment by combining SHGs and market oriented

production. The GOI in collaboration with MANAGE Hyderabad as

successfully pilot tested MLE with ATMA in 7 states and 28 districts

Some of the developments are FIACs AEZ, FIGS Collective marketing AGMARKNET Rythu Bazaars (Rythara Santhe) RKVY

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CASE STUDIES RELATED TO

MARKET-LED EXTENSION

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Case study I. Market-led Extension, anExperience with Rubber board in India

The companies were importing rubber from other

countries due to high quality and low price

Local producers were in trouble

Factories was operating at low capacity utilization

Capacity was 40 tonnes/day

Were operating at 10 tonnes/day

KRISHNA KUMAR, A.K., 2004, Market-Led Extension-An experience with Rubber Board, Paper Presented in work shop on Market-Led extension, MANAGE, Hyderabad, 1-21 December.2004

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To tackle this situation,,,,,,,,,,,,,,

Established Rubber Producer Societies (RPS)

Linking gross root level organization like SHGs to

processing factories

Trained the producers on producing high quality rubber

Created infrastructure facility.

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Result....................

Productivity increased Upto 40%

70% of rubber is processing now

20-30% increase in farmer income

Farmers realizing 90% of terminal market price

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Case study 2. Market-led extension strategies for promoting vegetable

cultivation in Uttarkhand

PROBLEM Low price for produce Marketing was uncertain

STRATEGY The local government modified the extension strategy. Provided information regarding marketing. Trained farmers regarding marketing.

SHAILESH KUMAR., AND SHARMA, G., 2007, Market-Led Extension strategies for Promoting

Vegetable cultivation in Uttarkhand, Agricultural Extension Review 3(1&2):137-139

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OUTCOME

1992-93

1993-94

1994-95

199-96

199-97

199-98

1998-99

% CHANGE

AREA 79.59 84.00 86.50 88.09 88.90 91.03 91.50 60.36

PRODUCTION 687.0 717.6 774.4 790.5 807.8 792.2 840.2 36.12

PRODUCTIVI--TY 10.82 8.63 8.55 8.95 8.97 9.00 9.19 -15.15

Area (000 ha), Production(000 mt), Productivity (t/ha) of vegetables

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Case study 3.Market-led partnership -FIGs and Chitoor Poultry

Association.

Groundnut is the main crop in ChitoorATMA made diversification of the farmers into maize

cultivation.Poultry association and FIGs were linked with buyback

arrangements.ATMA conducted 22 awareness camps and 6 exposure

visits to Karnataka.Poultry association provided 2 MT of poultry manure to

networked farmers free of cost.

CHARYULU, A.S., 2007, Private-Public relation in Market-Led extension: Case studies. Academic

Publication, National Institute of Agricultural Extension Management, Hyderabad

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Result................

Crop diversification.Area expanded to 1150 hectares from 60 hectares.The average income from maize was raised to 20000 rupees

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CONCLUSION

The focus of the extension functionaries need to be extended beyond production. Farmers should be sensitized on various aspects on quality, consumer’s preference, market intelligence, processing and value addition and other marketing information. This would certainly promote and motivates farming community towards profitable agriculture.

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THANK YOU

The world has changed.. So as We.. Then Why not .. agriculture..??

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FIGA group of small and marginal farmers combined

together as a producer group in order to reduce the production cost, better adoption of technology, marketing of the produce

ExamplesNasik for GrapesNagpur for MandarinsKullu for Apple

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MARKETED SURPLUS

Marketed surplus =Marketable Surplus - Household Consumption

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SWOT of marketing

Strengths = Demand of products, High Marketability, Good priced

markets

Weakness = Low demand products. Less marketability areas,

less priced markets.

Opportunities = Export opportunities, Appropriate time of selling

Threats = imports, Perishability of products

Home

Increasing Farmers Income

90% of effort is Production oriented

Only 10% on Marketing/Post harvest phases

Single intervention that can enhance income by 20-30%

source : Ministry of Agriculture, Government of India, 2001 ( Draft )

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Efficacy