1. A
ROLL OF
AGRICULTURE MARKETING FOR DEVLOPING IN REMORT AREAS: WITH SPECIAL
REFERANCE TO ORISSA
Abstract
Agricultural Marketing is a process to starts with a decision to produce a saleable
farm product and it involves all aspects of market structure or system, which is
based on technical and economic consideration. Agricultural marketing are
assuming to improve the living standards of farm families, making India hunger
free and turning poverty into history in the shortest possible time. The aim of this
paper is to show the incomes and improve livelihood of rural poor. The farmer
produces different type of product but they are having no storage facilities for huge
quantity of product. So this paper reveals to improve the storage facilities for
which a small farmer can easily store at huge quantity of product. Agriculture
marketing is require a high infrastructure for which a small farmer can easily reach
in the market and sells his product directly to the consumer, because a farmer
cannot sell his product directly to the consumer for which he sells his product at a
minimum rate of return, that’s why the standard of living of a small farmer is very
low. Middleman or intermediateries are also another cause of low income of a
farmer because they are purchasing products at a minimum rate from the farmer
and sold in the market at a higher rate for which a primary producer like as a
farmer cannot get his best possible rate of returns which he deserves. This paper
also reveals to make available all products of farm origin to consumers at
reasonable price without impairing on the quality of the produce.
STATEMENT OF PROBLEM
In modern marketing the agricultural product has to transfers or exchanges from
one hand to another before it finally reaches the consumer. It is achieved through
three marketing functions such as assembling, preparation for consumption and
distribution. It is concerned with the assembly and transport from the field to a
common assembly field or market. The product may be taken direct to the market
or it may be stored on the farm or in the village for varying periods before its
transport. It may be sold as obtained from the field or may be cleaned, graded,
processed and packed either by the farmer or village merchant before it is taken to

2. the market. Some of the processing is not done because consumers desire it, and
also it is require for the conservation of quality. At the market the product cannot
be sold by the farmer directly to the consumer .It will only happen through a
commission agent or a broker. So this problem arising due to lack of infrastructure
facilities in rural areas. The rural poor people always trying to get more profit to
their cultivation but it cannot possible for them. Because they are not having
sufficient money to go and sell directly at the market it may also be purchased by
traders, wholesalers or retailers. So the transactions may be carried out by direct
negotiation or through middlemen, by barter, by open or under cover auction, on
the spot from the farmer. The transactions take place at one or more levels in the
primary, secondary or terminal markets or all three. Distribution (dispersion)
involves the operations of wholesaling and retailing at various points. so it is the
task of the distribution system to match the available supplies with the existing
demand. The farmer produces more product but he cannot store these product
because lack of storage facility for his production. That is the main problem when
he sells the product at minimum price due to lack of storage facilities. Most of the
farmer standard of living are very poor so that is the main factor for which they
trying to income more through their cultivation. Because the farmers are having
only one income source which is selling the different product through the
cultivation.
INTRODUCTION
In India Agriculture was practiced formerly on a subsistence basis; the villages
were self sufficient, people exchanged their goods, and services within the village
on a barter basis. With the development of means of transport and storage
facilities, agriculture has become commercial in character; the farmer grows those
crops that fetch a better price. Marketing of agricultural product is considered as an
integral part of agriculture, since an agriculturist is encouraged to make more
investment and to increase production. Thus there is an increasing awareness that it
is not enough to produce a crop or animal product; it must be marketed as well.
The term agricultural marketing is composed of two
words such as agriculture and marketing. In the broadest sense agriculture means
activities aimed at the use of natural resources for human welfare, and marketing
indicates a series of activities involved in moving the goods from the point of
production to the point of consumption. The subject of agricultural marketing
includes marketing functions, agencies, channels, efficiency and cost, price spread

3. and market integration, producer’s surplus etc. The agricultural marketing system
is a link between the farm and the non-farm sectors. Agricultural marketing
involves in its simplest form the buying and selling of agricultural product. This
definition of agricultural marketing may be accepted in olden days, when the
village economy was more or less self-sufficient, when the marketing of
agricultural product presented no difficulty, as the farmer sold his produce directly
to the consumer on a cash or barter basis. But, in modem times, marketing of
agricultural product is different from that of olden days. In modem marketing,
agricultural product has to undergo a series of transfers or exchanges from one
hand to another before it finally reaches the consumer.
The National Commission on Agriculture defined
agricultural marketing as a process which starts with a decision to produce a
saleable farm commodity and it involves all aspects of market structure of system,
both functional and institutional, based on technical and economic considerations
and includes pre and post- harvest operations, assembling, grading, storage,
transportation and distribution. The Indian council of Agricultural Research
defined involvement of three important functions, namely (a) assembling
(concentration) (b) preparation for consumption (processing) and (c) distribution.
Agricultural marketing covers the services involved in moving an agricultural
product from the farm to the consumer. Numerous interconnected activities are
involved in doing this, such as planning production, growing and harvesting,
grading, packing, transport, storage, agro- and food processing, distribution, and
sale. Such activities cannot take place without the exchange of information and are
often heavily dependent on the availability of suitable finance. Agricultural
marketing involves in its simplest form the buying and selling of agricultural
produce. In olden days when the village economy was more or less self-sufficient
the marketing of agricultural product presented no difficulty as the farmer sold his
product to the consumer on a cash or barter basis.
OBJECTIVES:
1. To rise incomes and improve livelihoods of the rural poor people
2. To improve the storage facilities to store all type of product
3. To develop the infrastructure of the rural area through the agrimark
4. To enable the primary producers to get the best possible returns

4. 5. To make available all origin products of farm to consumers at reasonable
price without impairing on the quality of the produce.
HYPOTHESIS OF THE STUDY
1. The primary producers can insure to get the best possible return.
2. It can be assured that all products of farm must reach origin to consumers at
reasonable price without impairing on the quality of the product.
3. A primary producer must raise his income and improve his livelihood
strongly.
4. Infrastructure of rural areas must be developed.
5. Storage facilities must be improved to store a huge quantity of product
Facilities Needed for Agricultural Marketing
Agriculture marketing has given various facilities to the farmer. Such as
1. He should have proper facilities for storing his goods.
2. He should have holding capacity, in the sense, that he should be able to wait for
times when he could get better prices for his produce and not dispose of his stocks
immediately after the harvest when the prices are very low.
3. He should have adequate and cheap transport facilities which could enable him
to take his surplus produce to the mandi rather than dispose it of in the village itself
to the village money-lender-cum-merchant at low prices.
4. He should have clear information regarding the market conditions as well as
about the ruling prices, otherwise may be cheated. There should be organized and
regulated markets where the farmer will not be cheated by the -dalals- and
-arhatiyas-.
5. The number of intermediaries should be as small as possible, so that the
middleman's profits are reduced. This increases! the returns to the farmers.

5. Improvement of Agricultural Marketing System
Government of India has adopted a number of measures to improve agricultural
marketing, namely - establishment of regulated markets, construction of
warehouses, provision for grading, and standardization of produce, standardization
of weight and measures, daily broadcasting of market prices of agricultural crops
on All India Radio, improvement of transport facilities, etc.
1. Marketing surveys
In the first place the government has undertaken marketing surveys of various
goods and has published these surveys. These surveys have brought out the various
problems connected with the marketing of goods and have made suggestions for
their removal.
2. Grading and standardization
The government has done much to grade and standardize many agricultural goods.
Under the Agricultural Produce (Grading and Marketing) Act the Government has
set up grading stations for commodities like ghee, flour, eggs, etc. The graded
goods are stamped with the seal of the Agricultural Marketing Department
-AGMARK The «Agmark" goods have a wider market and command better prices.
A Central Quality Control Laboratory has been set up at Nagpur and eight other
regional laboratories in different parts of the country with the purpose of testing the
quality and quality of agricultural products applying for the Government's
"Agmark" have been created The Government is further streamlining quality
control enforcement and inspection and improvement in grading.
3. Organization of regulated markets
Regulated markets have been organized with a view to protect the farmers from the
malpractices of sellers and brokers. The management of such markets is done by a
market committee which has nominees of the State Government, local bodies,
arhatiyas, brokers and farmers. Thus all interests are represented on the committee.
These committees are appointed by the Government for a specified period of time.
Important functions performed by the committees can be summarized as follows.
a. fixation of charges for weighing, brokerages etc., b. prevention of unauthorized
deductions, underhand dealings, and wrong practices by the arhatiyas, c. enforcing
the use of standardized weights, d. providing up to date and reliable market

6. information to the farmers, and e. settling of disputes among the parties arising out
of market operations.
The system of regulated markets has been found to be very useful in removing
fraudulent practices followed by brokers and commission agents and in
standardizing market practices. The committee is responsible for the licensing of
brokers and weightmen. It is nested with powers to punish anyone who is found
guilty of dishonest and fraudulent practices. 1t is the policy of the government to
convert all markets in the country into the regulated type.
Regulated markets aim at the development of the marketing structure to have the
following.
1) ensure remunerative price to the producer of agricultural commodities,
2) reduce non functional margins of the traders and commission agents, and
3) narrow down the price spread between the producer and the consumer.
4. Provision of warehousing facilities
To prevent distress sale by the farmers, particularly the small and marginal
farmers, due to prevailing low prices, rural go downs have been set up. The
government has done much to provide warehousing in towns and villages.The
Central Warehousing Corporation was set up in 1957 with the purpose of
constructing and running go downs and warehouses for the storage of agricultural
produce. The states has set-up the State Warehousing Corporations with the same
purpose. At present the Food Corporation is constructing its own network of go
downs in different parts of the country. The total storage capacity in the country
was 27 million tons at the end of the sixth plan.
5. Dissemination of market information
The government has been giving attention to the broadcasting of market
information to the farmers. Since most villages have radio sets, these broadcasts
are actually heard by farmers. The newspapers also publish agricultural prices
either daily or weekly accompanied by a short review of trends.
6. Directorate of marketing and inspection
The directorate was set up by the Government of India to co-ordinate the
agricultural marketing of various agencies and to advise the Central and State
Governments on the problems of agricultural marketing. Activities of this
directorate include the following.
a. promotion of grading and standardization of agricultural and allied commodities;
b. statutory regulation of markets and market practices; c. training of personnel; d.

7. market extension; e. market research, survey and planning and f. administration of
Old Storage Order, 1980 and Meat Food Products Order, 1973.
7. Government purchases and fixation of support prices
In addition to the measures mentioned above, the Government also announces
minimum support price for various agricultural commodities from time to time in a
bid to ensure fair returns to the farmers. These prices are fixed in accordance with
the recommendations of the Agricultural, Price Commission.If the prices start
falling below the declared level (say, as a result of glut in the market), the
Government agencies like the Food Corporation of India intervene in the market to
make direct purchase from the farmers at the support prices. These purchases are
sold off by the Government at reasonable price through the public distribution
system.
ANALYSIS OF THE STUDY:
Orissa State Agricultural Marketing Board (OSAM) :
The Orissa State Agricultural Marketing (OSAM) Board, as the apex body for the
agricultural marketing structure in the State, which was established in the year
1984 under the amended provisions of the Orissa Agricultural product Markets
Act, 1956. Under the provisions of the Orissa Agricultural Produce Market Act,
1956, 61 RMCs (Regulated Market Committees) have been established in the State
for regulation of buying and selling of agricultural produce. Out of these 61
RMCs, 57 RMCs are functional while the four RMCs at Narasinghpur, Bonai,
Nilagiri and Athmalik are not functioning. During the current year, 3 new RMCs –
one each at Pallahara, Hindol and Patnagarh – have been notified by the State Govt
and these will start functioning after constitution of the first nominated committee.
The government has been playing a vital role in developing the agriculture
marketing system in the country. Department of Agriculture and Cooperation has
two organizations namely, the Directorate of Marketing & Inspection (DMI) and
the National Institute of Agricultural Marketing (NIAM),which are dealing with
marketing under its administrative control, Agricultural Markets are regulated and
managed under the Agricultural Produce Market Act .it was enacted by the

8. respective State Governments. The Central Government provides a important
guidance and assistance in regulation and development of agricultural produce
markets. There are two important schemes which has analyzed under this paper
namely 1. KRUSHAK BAZAAR (Farmers' Market) 2. Agricultural Marketing
Information Network Scheme.
1. KRUSHAK BAZAAR (Farmers' Market):
The government of Orissa has taken an important role to help rural poor basically
those who are staying in remote areas .because the remote areas people are so poor
which are not having sufficient money to do something. So cultivation is one of
the part of source of income for which they can do something .the remote areas
people are always cultivating the different type of products at a huge quantity. But
they cannot sell directly to consumer in the market due to lack of transport
facilities or infrastructure facilities. Now the government of Orissa are going to
lunch a scheme which is called as KRUSHAK BAZAAR (Farmers' Market) and it
came into force on march, 2002.state government of Orissa had planned to set up
200 krusak bazaars within a period of five year in a phase manner @40/year. So
far, 42 krushak bazaars have been established in different part of the state. The
main aim of the krushak bazaar to maximize the price realization of agricultural
product of our krushak brethren and to make available nutritive and fresh product
at a reasonable price for the consumers. It provides free transportation to the small
and marginal farmers for which they can easily go to the market and sell their
product directly to the consumer. It provides infrastructure and other services such
as
• Open and closed pindis
• Cold storage
• Electricity
• Drinking water facility
• Cycle stand
• Parking places

9. • Septic latrine with urinal
• Cattle shed
• Rest shed
• Shed trees
krushak bazaar has given high infrastructure to all remote areas of Orissa .so this
krushak bazaar is playing an important role to developing the rural areas due to
high infrastructure and transportation facilities .
Methodology:
• By facilitating direct contact between the producers & the consumers.
• By eliminating the middlemen commission which is shared by the farmers
and the consumers.
• By establishing new Krushak Bazaars (Farmer Markets) so that it is easily
accessible to both the producers and the consumers.
Board activities at Krushak Bazaar:
• OSAMB monitor the transaction process to avoid unhealthy practices at the
Bazaar places.
• It provides free transportation to the small and marginal farmers.
• It has undertaken certain outstanding and attractive schemes to attract the
clientele at the Bazaar premises.
2. Agricultural Marketing Information Network Scheme
The new Agricultural Marketing Information Network is 10th Plan Scheme
which was approved during March 2000 with an outlay of Rs. 99478 thousand to
establish a nation-wide network for speedy collection and dissemination of market
information. Under the scheme 735 important agricultural produce markets and 48
State Agricultural Marketing Boards/Departments as well as 27 DMI offices (total

10. 810 nodes) have been provided with computer facilities and Internet connectivity.
The scheme is being implemented by DMI through NIC. V-SAT and SERVER
have been installed at Faridabad. Procurement, installation, maintenance, software
development and training to state personnel are being done by NIC. The data
received from markets is being displayed on the website www.agmarknet.nic.in.
Software packages are being developed in all regional languages for easy
understanding of the farmers.
The important commodities identified for daily monitoring of arrivals and
prices under the scheme, for the present are – Cereals (Wheat, Maize, Paddy, Rice
& Jowar), pulses (Bengal Gram, Red Gram, Green Gram, Black Gram), Spices
(Ginger, Garlic, Chillies (Red), Fruits (Mango, Apple, Orange, Banana, Pineapple
Grapes), Vegetables (Onion, Potato), Fibres (Cotton, Jute), and Oilseeds
(Groundnut, Mustard, Soyabean, Sunflower, Sesame).
In accordance with the rationalization of the Plan Schemes in the
Department, the Schemes of Estimation of Marketable Surplus and Post Harvest
Losses of Food grains, Research Grants and Agricultural Marketing Information
Network have been merged together with new nomenclature ‘Marketing Research
and Information Network’. In the 10th Plan, the scheme is proposed to cover 2000
more markets and utilizing the network for market –led extension.
The main objectives of the scheme include creation of scientific storage capacity
with allied facilities in rural areas to meet the requirements of farmers for storing
and processing of firm products, consumer articles , agricultural inputs, promotion
of grading, standardization and quality control of agricultural product to improve
their marketability; prevention of distress sale immediately after harvest by
providing the facility of pledge financing and marketing credit; to strengthen
agricultural marketing infrastructure in the country by paving way for the
introduction of national system of warehousing receipts in respect of agricultural
commodities stored in such godowns and to reverse the declining trend of
investment in agriculture sector by encouraging private and cooperative section to
invest in the creation of storage infrastructure in the country. The financial
assistance will not be routed through State Governments. Under this scheme, 25%
of the capital cost is to be provided as credit-linked, back-ended subsidy in the
same way as has been formulated for the cold storage scheme being implemented

11. by National Horticulture Board (NHB). For the north east and other hilly areas in
the country and entrepreneurs belonging to SC/ ST, the subsidy would be 33.33%.
The fund is provided in the budget of Directorate of Marketing & Inspection
(DMI), an attached office of DAC and placed at the disposal of NABARD/ NCDC.
The funds for awareness building and training programme will be placed at the
disposal of NIAM, Jaipur and other national/ State level implementing agencies.
The eligible promoters for construction of rural godowns can be individual
farmers, group of farmers/ growers, partnership/ proprietary firms, NGO,
companies, corporations, cooperatives, Agricultural Produce Marketing
Committees, Marketing Boards and Agro Processing Corporations. The scheme
has been approved on 26.2.2002. Under the scheme new storage capacity of 18.50
lakh MT and modernization of cooperative godowns of 1.50 lakh MT has been
envisaged. A sum of Rs.900000 thousand has been allotted for implementation of
the scheme by March 31st, 2003. Under this scheme a total of 2373 godowns with
a storage capacity of 36.62 lakh MT have been sanctioned by NABARD & NCDC
as on 31.12.2002. Out of these, 390 projects with a capacity of 28.75 lakh MT
have been sanctioned by NABARD and 1983 projects with a capacity of 7.87 lakh
MT have been sanctioned by NCDC. 973 projects have been sanctioned by NCDC
for renovation of about 95,600 MT storage capacity as on 31.12.2002.
RESEARCH DESIGN:-
The formulation of research design is one of the important steps of research. The
validity and reliability of a research depends upon the strategy undertaken to
conduct the research .a good research depends on to aspects it’s design specially
what ones wants to do. Research design is a strategy undertaken to face the
situation in which it carried out. The research design limits the research area and
enables to anticipate the potential problems. The present study is to raise incomes
and improve livelihoods of the rural poor people and also to improve the storage
facilities. The study basically aims to study the nature and magnitude of effects
agriculture marketing on rural people and various events involved on it. The data
are to be collected from single situation and in a single time period hence

12. evaluation descriptive study designed is preferred. The data will be collected only from
the secondary sources. These data has collected from OSAM website, published articles and
journals.
FINDINGS
Finding is the main chapter of this paper which is elaborated on the certain
objectives. So this paper has explained clearly about the two schemes namely,
krushak bazaar (farmers market) and agricultural marketing information network.
The krushuk bazaar has given the important facilities such as infrastructure and
transport facilities for which small farmers of remote areas can easily reach in the
market and sell his products directly to the ultimate consumers. It finds that there is
a directly transaction or dealings between primary producers with the
consumers .middleman commissioner or intermiditeries has eliminated due to the
share of profit in between the farmers and the consumers through this schemes.
The another important finding is to avoid the unhealthy practices or any
malpractices in the bazaar places.
CONCLUSION
This concluding chapter is needed a quintessence of the empirical and in-depth
analysis of the multifarious possibilities and potentialities of the globally
recognized and accepted concept of agricultural marketing with the objective of
finding put how far it accelerates the process of developing at the remote areas.it
include the observation and findings that have crystallized from the enquiry on the
topic of the study. It also contains certain recommendation and suggestion with a
view to providing necessary information to the government and other public
institution like as NGO.
The study led to a nutshell form of conclusion that the krushak bazaar and
agriculture marketing information system is the best scheme which help to rise
incomes and improve livelihoods of the remote areas people. The krushak bazaar
has played a key role to develop the infrastructure and free transport facilities for
which a small or marginal farmer can easily sell his product to the consumers in

13. the market .The krushak bazaar has avoided middleman or intermediateries due to
sharing of profit between the primary producers and consumers. So it is easily
possible to accessible to both the producers and consumers after eliminated of
middleman or commissioner agent or intermidiateries
This study clearly shows that the income level of farmers in remort areas people
must be raised and livelihood also be improved through the krushak bazaar (farm
markets) scheme. Now the primary producers can easily get the best possible
return and also can make all origin products of firm to consumers at reasonable
price without impairing on the quality of the product .The agricultural marketing
information system is another important scheme which is given the storage
facilities to store a huge quantity of products .So the hypothesis has been proved
on the basis of objectives.
REFERANCE :
http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM Originated by: Agriculture Department
http://indiabudget.nic.in
www.osamboard.org/pdf/OSAM-Board-for-RMC