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SEMINAR ON

MARKET LED EXTENTION

Presented By:Mahesh Kumar Kansotiya (MABM)

Dept. of Agricultural EconomicsInst. of Agricultural Sciences

B.H.U. 2

AdvisorProf. H P Singh

Head of the departmentDept. of Agricultural Economics

Inst. of Agricultural Sciences

B.H.U.

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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Why Need Conversion of P-L-E into M-L-E?

• 90% of effort is Production oriented.

• Only 10% on Marketing/Post harvest phases.

• Farmer share in consumer price is low about 25-30%

4source : Ministry of Agriculture, Government of India, 2001 ( Draft )

M-L-E INTERVENTION

M-L-E intervention that can enhance farm income by 20-30%.

Commercialization of agriculture.Minimization of production cost.Introduction of export oriented product.Modernization of agricultural markets with

new Agricultural policy.

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To meet these challenges........

• Farmers need to transform themselves from more 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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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 FIGS Collective marketing AGMARKNET Rythu Bazaars (Rythara Santhe)

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Information exchange between extension and farmers in India

Farmers

Other farmers

NGOs

Input dealers

Output Buyers

Rural retailers

Mobile application ,

Media

E-choupal

SHG

KVKs

Extension workers

Agri-clinics

ATMA

DoA

ICAR,SAU

FFS

8Source: adepted from glendning et al.(2010)

Paradigm Shift from Production-led Extension to Market Led Extension

Aspects Production-led extension Market-led extension

objective Transfer of production technologies Enabling farmers to get optimum returnsout of the enterprise

Expected end results Delivery of messages Adoption of package of practices by most of thefarmers

High returns

Farmers seen as Progressive farmer High producer Farmer as an entrepreneur “Agripreneur”

Focus Production / yield” Seed to seed” Whole process as an enterprise / High Returns ”Rupee to Rupee”

Technology Fixed package recommended for an agro-climatic zone covering very huge area irrespective of differentfarming situations

Diverse baskets of package of practices suitable to local situations/ farming systems

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Dimensions of market-led extension

• Marketing mix• Marketing plan • Market oriented production• Use of Technology

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OBJECTIVES OF MARKET LED EXTENSION

• Conversion of Agriculture sector into profit oriented business.

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

• Wider use of electronic mass media for Agricultural Extension.

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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%).• Only 40% of the Indian farmers are reached by

extension service providers.

Source: National Sample Survey Organization (NSSO) , 2005/712

Function of M-L-E for converting Agriculture sector into profit oriented

Business

• Market intelligence• Financing• Facilitating Functions

GradingStandardizationProcessingStorage of farm produce

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processingGrading

standerizationStorage

transportation

financing

CASE STUDY ON MARKET-LED EXTENSION

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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 Up to 40%

• 70% of rubber is processing now.

• 20-30% increase in farmer income.

• Farmers realizing 90% of terminal market

price .

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