Agricultural Market Scenario and Economic Condition of Farmers in Barpeta District, Assam

 

Wangshimenla Jamir, Md. Anjar Ali

Department of Geography, Nagaland University, Lumami, Nagaland

*Corresponding Author E-mail: wangshijamir@gmail.com; mdanjarali@gmail.com

 

ABSTRACT:

Agricultural marketing occupies an integral position for overall development of agriculture. It determines the cropping pattern from a selection of crops and economic condition of farmers. Agriculture is the main economic activity of Barpeta district and more than 70% of the population in the districts depends on agriculture for their livelihood. Agricultural marketing comprises activities like supply of farm inputs to the farmers and movement of agricultural products from the farmers to the consumers. In this way, farmers obtain capital to maintain agricultural practice and livelihood. Existence of efficient agricultural marketing system is one of the important factors for development of agricultural activities in any area. An efficient marketing system facilitate optimization of resource use, output management, enhance farmers income, widening of markets, growth of agro based industry, addition to National income through value addition and employment generation. Therefore, market reform and improvement of marketing system ought to be an integral part of policy and strategy for agriculture development. Despite playing an important role for agricultural development, agricultural marketing has not been given a proper place in agriculture policy formulation. The present study attempts to explore the scenario of agriculture market, seasonal fluctuation of market, importance of agri-market and price in Barpeta district.

 

 

 

 

Agricultural marketing plays an important role for stimulating production and consumption as well as accelerating the pace of economic development. Agricultural marketing is concerned with the marketing of farm products and farm inputs and services required by them in the production of farm products. Thus, the subject of agricultural marketing includes product marketing as well as input marketing. According to Thomson (1951), the study of agricultural marketing comprises all the operations and the agencies conducting them, involved in the movement of farm-produced foods, raw materials and their derivatives, such as textiles, from the farms to the final consumers, and the effects of such operations on farmers, middlemen and consumers.

 

The Vision of the Department of Agricultural Marketing and Agri Business, Tamil Nadu is to ensure fair price to the farming community, who are left behind the competitive marketing scenario. The mission is to achieve the existing acts and rules effectively- and also by devising, implementing new technologies which aimed at reducing pre and post harvest. An Agricultural Marketing infrastructure plays a pivotal role for fostering and sustaining the tempo of rural economic development. 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 the aspects relating to pre and post harvest operations including grading, value addition, packaging, processing and transportation. These operations add value to farm produce.

 

Agriculture is a primary form of economic activity of human being from the time immemorial. It is indispensible for getting food, without which survival is not possible. India is the second largest producer of agricultural products and accounts for 7.68 percent of total global agricultural output. According to CIA Fact book (2016) contribution of Agriculture sector in Indian GDP is 17.9% in 2014. In Assam as well as Barpeta District, more than 70% population depends on the agriculture and allied sector directly or indirectly.  Agriculture is the backbone of economy in Assam and is the highest employer of labour. It engages more than 65% working force. The share of this sector is 37.6% in the SDP of Assam. It was constant in 1980-81 and 1991-92, and it decreased to 35.3% in 1996-97 (ESA, 1997-98). In Barpeta district 62.424% of cultivable land to total surface area (computed from Statistical Hand Book of Assam, 1997). Most of the populations are engage in agriculture and allied sectors. The shares of main and marginal workers are cultivators 36.53% and agricultural labourers 17.61% in Barpeta district as per 2011 census.  But the agricultural marketing in Barpeta district has not been systematically organized. So, maximum portion of the consumer’s rupee goes to the pockets of intelligent middlemen working in between the producer and consumer.

 

IMPORTANCE OF AGRICULTURAL MARKET:

Agricultural marketing plays an important role not only in stimulating production, consumption and accelerating the pace of economic development. The importance of agricultural marketing in economic development are as follows:

1. To enable Maximum Price to Farmers: An efficient market enables maximum price to the farmer. Regulated markets monitor the price and make policy for the maximum benefits for the farmer. Regulated Markets provides facilities such as correct weighment, godown facility, loan facility, immediate payment, daily price information, rest sheds, drinking water facility, cattle sheds, free medical aid to farmers, input shops, phone and fax facilities etc.

 

2. To Optimum use of Resources and Output Management: An efficient marketing system contributes to an increase in the marketable surplus by scaling down the losses arising out of inefficient processing, storage and transportation. A well-designed system of marketing will effectively distribute the available stock of modern inputs, and thereby sustain a faster rate of growth in the agricultural sector.

 

3. To increase the Farm Income: An efficient marketing system ensures higher levels of income for the farmers reducing the number of middlemen or restricting the cost of marketing services and the malpractices in the marketing of farm products. An efficient market system guarantees the farmers better prices for farm products and induces them to invest their surpluses in the purchase of modern inputs. So that productivity and production may increase. This results in an increase in the marketed surplus and income to the farmers.

 

4. Growth of Agro-base Industries: An improved and efficient system of agricultural marketing helps in the growth of agro-based industries and stimulates the overall development process of the economy. Many industries like cotton, sugar, edible oils, food processing and jute depend on agriculture for the supply of raw materials.

 

OBJECTIVES:

1.    To understand the Agricultural Market Scenario in Barpeta district.

2.    To identify the Infrastructural Development of Agricultural Market.

3.    To study the seasonal variation of price and the importance of efficient Agricultural Market

4.    To find out the strategy for agricultural marketing.

 

STUDY AREA:

Barpeta district is lying on the north bank of the mighty Brahmaputra River and it is located in the mid-western part of lower Assam. It lies between 26º05´ to 26º49´ north latitude and between 90º39´ to 91º17´ East longitude. It is bounded by Bhutan and Baska district in the north, Nalbari district in the East, Kamrup and Goalpara districts in the south and Bongaigaon and Chirang district in the West. It is covering an area of about 2677.33 square km. with 835 villages, 11 development blocks, 9 revenue circles, 9 towns and 2 subdivisions. The total population of the district is 1693190 persons with a density of 632 person per. Sq. km. in 2011 with a decadal growth rate 21.40 during 2001-11. The literacy rate of the district is 65.03%, which is below the national average. The elevation of Barpeta district is 45-52 meters from mean sea level. The soil of the district is very fertile and most suitable for agricultural activities.

 

METHODOLOGY:

The present study is based on both primary and secondary sources of information. The secondary sources of information are collected from the Government publications, official documents, relevant literature, journals, internet etc. The primary data are collected from local group discussion and field observation.

 

TYPE OF AGRICULTURAL MARKET:

In the study area various type of market are existing. On the basis of nature and characteristic of markets i.e. - area coverage, time span, volume of sale, regulates of market etc. The Agricultural market can be classified as:

 

1.      Area coverage

On the basis of area coverage, i.e. buyers and sellers usually come for transactions to markets may be classified to the following classes:

i.       Local or Village Market: In a local market, buying and selling activities are confined among the buyers and sellers drawn from the same village or nearby villages. The village markets exist mostly for perishable commodities in small lots, e.g., local milk, fish, vegetable, fruits etc. These markets are daily or weekly market. In these markets, the prices of commodities are governed mainly by the extent of demand and supply of the commodity.

ii.      Regional Markets: In a regional market, buyers and sellers are drawn from a larger area than the local markets. Regional markets usually exist for food grains, less perusable goods, locale jute etc. These markets are famous for the livestock marketing, like cow, goat, buffalos etc. The main regional markets of Barpeta district are Baharihat, Howly, Mandia, Kukarpar, Baghbor, Dumarkur, Langal, Kalgachia, Pathsala etc.

ii.      National Market: In a national market, buyers and sellers spread at the national level. National markets existed for durable goods like jute, cotton, tea etc. But with the expansion of roads, transport and communication facilities, the markets for most of the products have taken the form of national markets. The main national level markets are Barpeta Road, Baharihat and Howly etc. in Barpeta district.

2.      Time Duration

        In the study area some markets are short time, weekly or long periodic market. On the basis of Time duration markets are classified as follows-

i.     Short periodic Markets: The markets which are held only for a day or few hours are called short-period markets. The products of these markets are of a highly perishable nature, such as fish, fresh vegetables and liquid milk. In these markets, the prices of commodities are governed by the extent of demand and supply of the commodity.

ii. Periodic Markets: The periodic markets are congregation of buyers and sellers at specified places either in villages, semi-urban areas or some parts of urban areas on specific days and time. Major commodities traded in these markets are the farm produce grown in the hinterlands. The periodic markets are held weekly, biweekly, fortnightly or monthly according to the local traditions. Periodic markets are more popular market and these markets are regional or national basis market. The main weekly or biweekly markets are Baharihat, Howly, Mandia, Kukarpar, Baghbor, Dumarkur, Langal, Kalgachia, Pathsala etc.

iii.   Long-period Markets: These markets are held for a longer period than the short-period markets. The commodities traded in these markets are less perishable and can be stored for some time; like food grains and oilseeds. The prices are governed both by the supply and demand forces.

 

3.       Market Regulation:

On the basis of market regulation market can be classify as follows-

i.       Regulated market: The main objective of regulated markets are regulation of buying and selling of agricultural produce by establishing an efficient marketing system, where growers may obtain reasonable and competitive price and traders obtain a fair deal in trading. In Assam these activities are initiated and executed by the Assam State Agricultural Marketing Board through market committees established in various market areas. Regulated Markets provides various facilities such as correct weighment, godown facilities, bank facility, immediate payment, daily price information, rest sheds, drinking water facility, cattle sheds, free medical aid to farmers, input shops, phone and fax facilities etc.

 

At present, there are 24 numbers of Regulated Market Committees all over the State except in Sixth Scheduled areas. There are Principal Market Yard (PMY) and Sub-Market Yard (SMY) under a Regulated Market Committee. Altogether there are 20 numbers of Principal Market Yards and 204 numbers of Sub-Market Yards in the State at present.

   

Table 1: Regulated Market Committees with Existing PMY and SMY in Barpeta district

Source: Assam State Agricultural Marketing Board, 2015

 

Barpeta district has two regulated market committee with 2 numbers of Principal Market Yard (PMY) and 4 numbers of Sub-Market Yard (SMY). The market committees are Baharihat Regulated Market Committee constituted with Baharihat PMY and Mandia SMY. And Howly Regulated Market Committee constituted with Howly PMY and Barpeta Road, Kalgachia, Sorbhog SMY. The Howly primary yard was established in 1977. The sub-yards, Sarbhog, Barpeta Road, Kayakuchi, Simla and Langla are 2 to 3 years old.

 

ii.    Non Regulated Market: Non regulated markets are not regulated by any policy. The price of goods depends on the demands and supply of goods. There will not have facilities such as correct weighment, godown facilities, bank facility, daily price information, rest sheds, drinking water facility, cattle sheds, free medical aid to farmers, input shops, phone and fax facilities etc.

 

AGRICULTURAL MARKET INFRASTRUCTURE

Agricultural Marketing infrastructure plays a vital role in fostering and sustaining the tempo of rural economic development. It includes godown, correct weighment, cold storages, drying yards, market sheds, price information centre, rest sheds, drinking water facility, cattle sheds, free medical aid to farmers, input shops, phone and fax facilities. The poor market infrastructure and facilities in the markets calls for addressing the problem of planning designs of the market.

 

 

Table 2: Market infrastructure in Barpeta District

Source: Agricultural Marketing Board, Assam

 

Barpeta district has cold storage (3 numbers), market godown (3 numbers), rural godown (1 number), drying platform (2 numbers) and some market yards distributed various places of the district among 2 PMY and 4 SMY. Thus, the infrastructural development is not satisfactory and post crop harvesting losses are very high in the district.

 

1. Cold storage: Cold storages are most important parameter for agricultural development.

 

Cold storage is prerequisite to minimize losses of post crop harvesting and sale of commodity in reasonable price. It can preserve perishable goods for a long time.

 

Table 3: Cold storage in Barpeta district, 2009-2010

Source: Agricultural Marketing Board, Assam

 

Barpeta district has three (3) numbers of cold storages out of fifty one (51) numbers of cold storages of Assam. These cold storages are concentrated in northern side of Barpeta district. This area is famous for the production of vegetables and fishes in Assam. The biggest cold storage of Barpeta district is Co-opeartive Cold Storage, with 3000 MT storage capacity. Sorbhog Cold Storage has 2500 MT storage capacity and Howly Cold Storage has not started for storing.

 

2.    Godown: Godown is most important to store the commodities which reduce the post harvest losses. Godown can be classified as Market Godown and Rural Godown. There are thirteen (13) numbers of Market Godown and one Rural Godown with storing capacity of 2000 MT and 500 MT in Barpeta district. Moreover, there are fifteen (15) numbers of Market Godown and twenty three (23) numbers of Rural Godown with storing capacity of 13495 MT and 15000 MT respectively in the state.

 

3.    Drying Yards: To avoid wastage losses, Construction of Drying Yards in the Villages is most essential. Marginal poor farmer cannot construct Drying Yards for lack of capital and place. Moreover, Barpeta district is chronically flood affected area and the facilities of Drying Yard is most essential. There are two (2) numbers of drying yards in Barpeta district.

 

 

 

SEASONAL VARIATION OF PRICE:

Seasonal variation of price has high influence on the economic condition of poor farmer. At the peak post harvesting season the price of crops decrease to a lowest level. At this time farmer comes to sale commodities due to poor economic condition and lack of storage facilities. And the price of commodity decreases by intelligent stoker and wholesaler. These commodities are stored by the wholesaler and the price of the commodity increases to double or more than double after the peak season in the district. Ultimately, the farmers economic conditions are badly affected and the stokers are highly benefited than the producer.

 

Table 4: Season wise price of commodities. (In Rs./ per quintal)

Sl. No.	Major Crops	Peak Season (In Rs./per quintal)	Offseason (In Rs./ per quintal)
1	Rice	875	1500
2	Wheat	1550	1750
4	Jute	1500	3000
5	Rape Mustard	3000	4500
6	Potato	700	2500
7	Onion	1000	2000

Source: Primary data collected from field, 2015-16

 

It is found that the price of rice is Rs. 875.00 during peak season where it increases to Rs. 1500.00 per quintal during the offseason. On the other hand price of wheat, jute, oilseed, mustard, potato and onion are Rs. 1550, 1500, 3000, 700 and 1000 per quintal respectively in peak season and in offseason prices are Rs. 1750, 3000, 4500, 2500 and 2000 per quintal respectively. The price of potato increased more than 3 times and the price of onion shifted to double between peak season and offseason. The prices of rape mustard, onion, jute etc. has increased to double during 2015-16.

 

DEVELOPMENT OF AGRICULTURAL MARKET:

The main strategies for the development of Agricultural market are discussed bellow-

Regulated Markets: The development of agricultural market depends on the well regulated market system.  Efficient regulated market is the most important factor for the development of agriculture and farmers’ economic condition. The regulated market helps in getting optimum price to the farmer, through effective marketing policy, proper infrastructural development, free grading facilities for agricultural commodities and issuing pledge loan during distress sale.

 

Undertaking Loan Facilities to Farmers: Most of the farmers are poor in economic condition and sale product during peak season is at minimum prices. To avoid distress sales, loan facilities is necessary to all the small and marginal farmers during the peak season.

 

AGMARK Grading: AGMARK grading is undertaken to protect the consumers from the ill effects of consuming adulterated food commodities and to ensure quality food products. It also helps to get optimum price for the commodities.

 

Construction of Drying Yards in the Villages: To avoid post wastage losses, construction of Drying Yards in the Villages is very essential. Marginal poor farmer cannot construct Drying Yards for lack of capita and space. Moreover, Barpeta district is chronically flood affected area.

 

Marketing Information Centre: Market intelligence plays a vital role in marketing of agricultural products. If the information of prices prevailing in various markets is made available, the farmers will be able to get better price to their produce by moving their products to the markets which pays higher price.

 

Construction of Cold Chain: In Barpeta district, perishable goods like fruits, vegetables etc. are wasted due to non availability of cold storage facility. And the farmers get very less price for their produce. To minimize post harvest losses of agricultural produce, especially fruits and vegetables, cereals, spices and plantation crops, cold storages are most essential.

 

Construction of Godown: Farmers are highly affected due to lack of proper storage facilities. And farmer get very less price of the commodity and the post harvest losses are very high. At the time of over flood many commodities damages due to lack of proper storage facilities. Thus Construction of Godown is most important in the district.

 

Construction of Food Processing Industries: Food processing industries ensure steady and better price to the farming community as well as availability of the commodities in processed form to the consumer throughout the year. By cultivation of good quality processable agricultural produce the farmers stand to gain better returns and employment opportunity. It also ensures to reduce the wastage of agricultural commodities. Perusable goods can be process and store for long time and export to the places through the food processing industries.  

 

Strengthening rural road connectivity: The condition of rural roads is poor and has posed a major challenge for the transportation of products in Barpeta district. Poor road connectivity is also one of the contributory factors for low realization of value. As a consequence of poor road condition, transportation costs are higher, loading and unloading creates difficulties and high produce losses occur.

FINDINGS:

(i)            An efficient marketing system can ensure higher levels of income to the farmers by reducing the number of middlemen. Therefore, expansion of efficient agricultural market is most important in the area.

(ii)          Good organization of market and an efficient Agricultural Market can reduce the post harvest losses of agricultural produces. The district post crop loss is very high due to extreme weather and lack of infrastructural development.

(iii)           Barpeta district has vast geographical area with high number of rural agricultural markets therefore the Regulated marketing committee with Principal Market Yard (PMY) and Sub-Market Yard (SMY) need to be increased.

(iv)            Limited number of cold storage infrastructure in the Study area leads to damage of large quantity of perishable goods during the peak season. 

(v) Insufficient storage Godown in both the Market and Rural sectors of Barpeta district results in heavy losses of post harvest production.

(vi)            The seasonal variation of prices is very high in the district. In the offseason season, price of potato, red paper, onion, garlic, jute etc. are increased to double or more than double in the district. To manage rational price of produces, efficient regulate market is more important for loan facilities, storage facilities and market intelligence.

(vii)          Agriculture Marketing, AGMARK, grading centre need to be increase for mobilization of agriculture in every agricultural market. It confirms the quality control and the best hygienic condition of the food.

(viii)        Loan facilities are necessary to avoid distress sales of farm produces. The farmers are poor and have no capital for distress sale, improve storages and modern technologies.

(ix)            Food processing industries eliminates wastage of agricultural produce to a greater extent and ensure better price to the farming community. But the numbers of food processing industries are very less in the district.

(x)          Development of marketing intelligence is important. Farmers are not aware of market prices and are not getting proper price out of their products. They are not aware about various facilities of regulated market. The regulated market should take more publication of price chart of agricultural products by using number of mass media, banner and board in various market places.

 

CONCLUSION:

Agricultural marketing comprises all activities like supply of farm inputs to the farmers and movement of agricultural products from farms to the consumers. It involves all the aspects relating to pre and post harvest operations including grading, value addition, packaging, processing and transportation. The markets are classified on the basis of nature and characteristic of markets like area coverage, time span, volume of sale, regulates of market etc. Agricultural Market infrastructure plays a vital role in fostering and sustaining the tempo of rural economic development. Market infrastructural development is not sufficient in the district. There are three numbers of cold storage, three numbers of godown, one number of rural godown, two numbers of drying platform and some market yards only. Seasonal price variation is very high between the peak season and offseason. In the offseason season, price of potato, red paper, onion, garlic, jute, mustard etc. are increased to double or more than double in the district. Due to lack of market intelligence, farmers are not getting rational prices for their produces. The food processing industries, loan, infrastructural development, proper store house etc., eliminates wastage of agricultural produce to a greater extent and ensure better price to the farming community. Hence, an efficient regulate marketing system facilitates to optimize use of resource, output management, enhance farmer incomes, widening of markets, growth of agro-based industry, value addition to national income and employment creation. Thus, efficient agricultural market is the most important to strengthen the agricultural development in the Barpeta district.

 

REFERENCES:

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Received on 10.08.2016       Modified on 11.09.2016

Accepted on 24.09.2016      © A&V Publication all right reserved