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BASIX-IGS To Study the Market Potential of vegetables And Market linkage For Unnat Kisan Producer Company Ltd. FANDA BLOCK, BHOPAL DISTRICT ( MADHYA PRADESH) SUBMITTED BY Monika (2719) 1

A study on market linkage of vegetables in M.P. for an FPO

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BASIX-IGS

To Study the Market Potential of vegetables And Market linkage For Unnat Kisan Producer Company Ltd. FANDA BLOCK, BHOPAL DISTRICT ( MADHYA PRADESH) SUBMITTED BY Monika (2719)

FACULTY GUIDE:- CORPORATE GUIDEProf. Neha Saini Mr. Rakesh Roushan

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ORGANISATION PROFILE• IGS( INDIAN GRAMEEN SERVICES)

1. It is a peer group of BASIX, Non profit Organization registered under the Section 25 of Companies Act, 1956.

2. IGS focused its attention on two parallel streams of work, first, strengthening the implementation capabilities of various institutions/agencies second, continuing knowledge building on livelihood promotion by studying and documenting the livelihood promotion efforts of others, and constantly analyzing its own pilot action research with its experience over the years

VISION:

“Kayam Rojgar, Khushal Parivar”- Sustainable Livelihoods, Prosperous Households.

MISSION:

“To incubate pro-poor innovations to promote sustainable livelihoods ”

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Concept of FPO1. Farmer Producer Organization (FPO) is a private entity

which is run by farmers. It is a central government project with Small Farmers Agribusiness Consortium (SFAC) acting as a nodal agency on behalf of the Ministry of Agriculture, Govt. of India.

2. In an FPO the Shareholders are farmers who are having land and the Board of Directors (BoD) of FPO is a farmer, elected by shareholders of the Company.

3. The main motive of FPO is to provide a sustainable business sense to the farmer and provide them with the market linkage.

4. All the government schemes for FPO are implemented only by SFAC.

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UNNAT KISAN PRODUCER COMPANY

LIMITED(UKPCL)

1. Unnat Kisan Producer Company Limited is a FPO promoted by Indian Grameen Services(IGS) -An affiliate of BASIX Group of Company.

2. Currently UKPCL is working with 1000 farmers in Fanda Block, Bhopal District.

3. UKPCL was incorporated on 20th Dec 2012 and registered under Indian Companies Act,1956.

4. UKPCL has divided is working area in 3 clusters. Each cluster has 5 - 6 villages in Fanda block.

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Profile of UKPCL

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OBJECTIVE OF STUDY

1. To identify market opportunities in vegetable sector for UKPCL in Bhopal.

2. To study existing market of vegetables in Bhopal.

3. To provide a market linkage to the farmers regarding vegetables through UKPCL.

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RESEARCH DESIGN

RESEARCH TYPE

EXPLORATORY

DATA SOURCE

PRIMARY DATA

AND

SECONDARY DATA

SAMPLE DESIGNSAMPLE AREA Fanda Block

UNIVERSE

Farmers = 1000Mandi

Traders=60 SAMPLE SIZE

Farmers = 150Mandi

Traders=20

STATISTICAL TOOL- PERCENTAGE ANALYSIS

REPRESENTATION TOOLS-

PIE CHART AND BAR GRAPH

SAMPLING

METHODConvenience

Sampling

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DATA COLLECTION

PRIMARY DATA

QuestionnaireFarmer Ques..docxMandi Ques.docx

Structured Interview

SECONDARY DATA

Journals

SFAC

Horticulture Department

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LIMITATIONS OF STUDY

1. Vegetable producers does not keep any record of their practices so the information provided is based on their recall/memory.

2. It does not include market arrivals from outside Bhopal.

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FARMER ANALYSIS

Shareholder of UKPCL

81%

19%

Yes

No

Yes No

121 29

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Land holding of farmers(in hectares)

Less than 1

1 - 2 2 - 3 3 - 4 4 - 5 5 - 6

47 81 9 5 6 1

32%

54%

6% 3%4% 1%

Less than 1 hec1 -2 hec2 -3 hec3 - 4 hec4 - 5 hec5 - 6 hec

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Vegetables grown

24%

49%

1%

16%1%

2% 7%

Tomato

Okra

Cabbage

Brinjal

Gourd

Onion

Others

36%

10%

10%3%

21%

5%

13% 3%

Others... Barvati

Gilkhi

Spinach

Potato

Cor-riander

Chilly

Cucumber

Kakri

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Area of Production of Vegetables(in acres)

Less than 1 1 - 2 2 - 3

121 28 1

80%

19%1%

Less than1 acre1 - 2 acre2 - 3 acre

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Purchase of Seeds, Fertilizers & Pesticides

53%

13%

27%

6%

Known dealer

UKPCL

Horticulture Department

Others

Known dealer

UKPCL Horticulture

Department

Others

80 20 41 9

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To whom do you sell Vegetables?

87%

6%4% 1% 2%

Mandi

Local vendors/shops

Bulk purchasers

Supermarkets

Others

Mandi Local vendors/shops

Bulk purchasers

Supermarkets

130 9 6 2

20

Means of Transportation

6%4%

71%

19% Self-purchased

Community/group owned

rent based

Community/group hire on rent

Self-purchased

Community/ group owned

Rent based

Community/ group hire on rent

9 6 107 28

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Awareness about market price

11%

89%

Yes

No

Yes No

13 137

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Means of storing vegetables

No proper storage

Hand-made basket

Other storage means

122 13 15

81%

9%10%

No proper storage

Hand-made baskets/sacks

other storage means

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Marketable surplus of Vegetables

Less than 25%

25 – 50 % 50 – 75% 75 – 100%

1 8 17 124

1% 5%11%

83%

Less than 25 %25 - 50 %50 - 75 %75 - 100 %

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Problems while selling Vegetables

produce

28%

25%

47% StorageQuality Transportation

Storage Quality Transportation

42 37 71

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Acceptance of market surplus of

vegetables

13%

87%

YesNo

Yes No

20 130

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MANDI ANALYSIS

Criteria of purchasing vegetables

40%

5%

45%

10%Quality

Quantity

As per demand

both quality & quantity

Quality Quantity As per demand

Both quality & quantity

8 1 9 2

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Vegetables purchased by Traders

65%

35%Farmers

middleman

Farmers Middleman

13 7

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Criteria for setting market price

10%

40%35%

15%Quality of vegetabless

Demand in mandi

season based

availability of vegetables

Quality of vegetables

Demand in market

Season-based

Availability of vegetables

2 8 7 3

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Purchasing price of Vegetables

Tom

atoOkr

a

Cabba

ge

Brinjal

Gourd

Oni

on

Barva

ti

Gilkhi

Spin

ach

Pota

to

Coria

nder

Chilli

Cucum

ber

Kakri

0

10

20

30

40

50

60

Traders

Local vendors

Consumers

Pri

ce/K

g

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Commission charged

Less than 2%

2 – 4% 4 – 6% 6 – 8%

2 5 7 6

10%

25%

35%

30%

Less than 2%2 - 4%4 - 6%6 - 8%

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Supply of Vegetables

Local vendors Other mandis Industry/ supermarkets

7 12 1

35%

60%

5%

Local vendors

Other mandis

Industry/Su-permarkets

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Supermarkets

1. Structured Interview was carried out with Best Price, Bhopal regarding vegetables .

2. Brief of Interview Visits\Wal mart.docx

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FINDINGS

1. Farmers were shareholder of UKPCL but was unaware with the purpose of its existence.

2. Okra was mostly grown followed by Tomato in cluster of UKPCL.

3. Less no. of farmers were purchasing seeds & fertilizers from UKPCL.

4. Lack of storage facility, cheap transportation at farmer’s/village level.

5. Unfair deductions by middleman.

6. Non-availability of market related information.

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Contd..

7. Farmers were not happy with quality of seed of Vegetables.

8. No proper storage system was there for keeping vegetables at village and mandi level.

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SUGGESTIONS

1. UKPCL can start procuring vegetables and sell them on the same day to nearby restaurants, institutes by hiring or purchasing refrigerated van.

2. UKPCL can liaison with Walmart so that farmers could directly sell their produce to them on initial basis.

3. UKPCL can purchase some vehicles and provide them in each cluster on less rent.

4. Farmers should be made aware about the concept of FPO through nukad- nataks, audio-visual aids etc.

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Contd….

5. UKPCL can provide okra & tomato seeds to the farmers at the best possible price as both are mostly grown vegetable in its cluster.

6. UKPCL can enter into the market as trader so that profit from the local vendors who are in need of vegetables of good quality.

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