N.S.Ranawat Deputy Director National Institute of Agricultural Marketing(NIAM) JAIPUR

1. Efficient Agricultural Marketing System andModern Infrastructure Required for Minimizing the losses While Handling the Agri. Produce N.S.Ranawat Deputy Director National Institute of Agricultural Marketing(NIAM) JAIPUR

2. Part-I Efficient Marketing System

3. Agricultural Scenario – Present Status • All major Climates of world. There are 20 agro-climatic regions and nearly 46 out of 60 soil types in the country. Potential to cultivate vast range of agricultural produce, a large and varied raw material base for food processing. • Increase in production from 50 million tonnes (1951) to 204 million tonnes (2004-05). • Significant increase in marketed surplus.(110.04 million tonnes, 2001-02). • Subsistence to commercial agriculture. • First in pulses, tea, jute & milk and second in rice, wheat, fruit & vegetables.

4. Agricultural Scenario – Present Status India’s annual food production stands at 550 million metric tonnes • Second highest fruit and vegetable producer in the world with a cold storage facility available only for 10 per cent of produce • Second Highest producer of milk • India has highest cattle population (185/1345 million (13.8%), Largest buffalo population 98/174 million(56%), second highest sheep and goat population(183/1839million)(9.95%) producing about 6million Mt of meat with a Cold storage capacity 184,000 tonnes. • Fifth largest producer of eggs. Projected requirement of investments in cold storage required to store 20 per cent of surplus of meat and poultry products. • Sixth largest producer of fish with harvesting of 5.2 million tonnes • The estimated area under flowers (2005-06) is 0.126 million hectors with a production of 0.694 million tonnes loose flowers and 2762 million cut flowers.

5. Agricultural Production-2007-08(Ministry of Agriculture, GOI)

6. Production status change over last fifty year- (2001-02)

7. Market Regulation in India – An Overview It goes without saying that marketing and production of agricultural produce are inextricably intertwined with each other. In the post WTO regime, an effective agricultural marketing system is the key driver of the agricultural economy of a country. An effective marketing system aims at ensuring remunerative prices to the producers at cost effective marketing costs and smooth supply of commodities to consumers at reasonable prices. In order to protect the interests of the various stakeholders of the agricultural marketing system of the country a number of governmental interventions have been taken from time to time. However, the present agricultural marketing system of the country leaves much to be desired. Some reform measures by the government have already been initiated to address these issues and some are in pipeline.

8. Agricultural Markets • Apani Mandi / Farmers market / Raythu Bazars • Rural Primary Hats/ Periodic Rural Markets • Market Sub yards • Primary Market Yards/ Agri. Produce Market Committee (APMC)/ Mandi, • Secondary Market Yards/ Secondary Markets • Modern Market yards • Wholesale markets-Perishables • Terminal Market yards-Perishables • Future Markets

9. CHARACTERISTICS OF TRADITIONAL AGRICULTURAL MARKETING SYSTEM Heavy Village Sales of Agricultural Commodities Farmers were hard pressed for money to meet their social and other: obligations, and are often forced to sell their produce right in the villages. Most of the perishable products need to be marketed in the villages because of their low “keeping” quality and the non-availability of quick transport means. Many farmers disliked city markets mainly because of their lack of knowledge about prevailing market practices, the possibility of theft or robbery in transit and problems faced by them for selling their produce in city markets. The information on the prices obtaining in the nearby primary and secondary wholesale markets was not readily available to the farmers.

10. CHARACTERISTICS OF TRADITIONAL AGRICULTURAL MARKETING SYSTEM Inadequacy of Institutional Marketing Infrastructure and Lack of Producers’ Organizations Multiplicity of Market Charges Existence of Malpractices Lack of Reliable and up-to-date Market Information Low Marketable surplus of a Large Variety of Products Absence of grading and Standardization of Produce Absence of Quick Transport Means Strong Associations of Traders and Market Functionaries Post-Harvest Immediate Sales by Farmers A majority of the cultivators tend to sell their produce immediately after the harvest at the low prices prevailing at that time. Because of substantial supplies, Indian markets are glutted in the post-harvest season. Traders often take advantage of this situation. About 60 to 80 percent of the food grains are still marketed in the first quarter of the harvest season

11. Farmers have to travel for markets beyond 5 Kms for sale of their agricultural produce. • Fledgling Rural Primary Markets. • Absence of common trade language and multiple Food Laws. • Variation in market fees and other market charges. • Controls under Essential Commodities Act, 1955. • Poor Pledge Financing and Marketing Credit. Farmers dependent on money lenders for their credit need.

12. CHARACTERISTICS OF TRADITIONAL AGRICULTURAL MARKETING SYSTEM • Long and multiple marketing channels. • Farmers share in consumer’s Rupee - Fruit and vegetables – 32 to 68% - Paddy – 56 to 89% - Wheat – 72 to 88% - Coarse grains – 72 to 86% - Pulses – 79 to 86% • Hidden marketing cost and margins are also common – Rs. 15/- for 20 Kg. box of apple and Rs. 12/- for 50 cabbage bag from Shimla to Delhi by road – a study reveals. Contd…..

13. Regulation of Agricultural Marketing :- The features like high marketing cost, unauthorized deductions, false payment and prevalence of various malpractices prompted to regulate agricultural marketing by the state. Establishment of regulated markets has been able to overcome the problems of traditional marketing system to greater extent. However, these problems still persists in the case of village sales. Definition of Regulated Market:- Regulated market is one which aims at the elimination of the unhealthy and unscrupulous practices, reducing marketing charges, and providing facilities to the producer seller in the market. Any legislative measures design to regulate marketing of agriculture produce may be termed as one which aims at the establishment of regulated markets. Establishment of regulated markets is not intended at creating alternate marketing system. The basic objective is to improve the efficiency in the marketing system.

14. Basic Amenities available at APMCs • Auction platforms only in 2/3rds markets • Drying platforms in 1/4th markets • Traders modules in 63% • Cold storage only in 9% • Grading facilities in 1/3rd markets • Internal roads in 80% • Farmers amenities in 50% of markets

15. Objectives of Regulated Market To prevent the exploitation of farmers by overcoming the handicaps in the marketing of their products. To make the marketing system most effective and efficient so that, farmers may get better prices for their produce and the goods are made available to consumers at reasonable prices. To provide incentive prices to farmers for inducing them to increase the production both in terms of quantity and quality. To promote an orderly marketing of agricultural produce by improving the infrastructural facilities.

16. AGMAKRNET http://agmarknet.nic.in • Crops Directorates (8) [Wheat, Jute, Cotton, Rice, Sugarcane, Millets, Pulses, Tobacco] • Technology Mission on Horticulture • Coconut Development Board • Automatic Data Downloading • Data validation • Database updation • Trend Analysis • Monitoring Reports • Commodity profiles for production planning • Data Warehouse & Data Mining • GIS based National Atlas DMI Hqs. Public Access Local News papers CDB Markets Mobile Operators CDB Network DMI State Offices(27) Notice Board / Electronic Board IFFCO Network State Mkts./ Directorates (50) Regional Office Call Centres IFFCO Agri-clinics Regional Office Farmers Mobile users IFFCO Network Regional Office farmers Regional Portals (8 already approved) Farming Community Area Office Area Office Farmers Kiosk Area Office

17. Agri-Markets in India as on 31.03.2007 • 6261Wholesale Markets in India (majority are regulated markets) • 20870Rural Primary Markets (about 15% are regulated markets Total – 27131 • 2459Principal Regulated Markets • 5006Regulated Markets Sub-yards Total – 7465 (Only 286 regulated markets in 1950)

19. Part-II Modern Infrastructure Requirements & Minimization of PHM Losses

20. Post-harvest procedures Harvesting Selection, cleaning and disinfection Reception Pre-cooling Other treatments Grading Drying Transport Storage Packing and packaging

21. Post Harvest Management Farm Level- Harvesting Harvest maturity Indices Harvesting Methods- Manual/ Mechanized Harvesting tools/ kit Collection- sorting/grading at farm Harvesting Containers/Packing material Farm level Storage Other important factors Waxing, Drying Grading and sorting Packaging –CFB Pre-cooling Ripening / De-greening treatments Cold storage at low temperature Reefer transport Market level Mode of Transportation Road conditions Cleaning and grading at mandi Weighment -Digital/ Pan balance Storage at mandi Packaging material/Bagging etc Quality factors GAP certification, GHP, GMP & HACCP Vapour heat treatment Pesticide residue level Irradiation Packaging specifications Product Standardization Food safety at Farm, APMC, Storage, Distribution / transportation and at retail mkting

22. Agricultural Produce Agri Produce can be classified in a broad way in two categories • Non-perishables /Durables:- Cereals, Millets, Pulses, Oilseeds, and seed spices etc. They are subjected to some unit operations before marketing, some of them are as following i.e. Cleaned, Grading, Sorting, De-hulling, Decorticating, De-husking, Polishing, Bagging and ware-Housing. • Perishable / Non-Durables:- Fruits, vegetables, flowers, herbs, spices, Eggs, Poultry products, Meat and fish etc. They are also subjected to some unit operations before marketing, some of them are as following i.e. Curing, Washing, Grading, Sorting, Waxing, Drying, Pre-cooling and packing /Bagging and storage in Cold storage

23. Present level of production of different types of food commodity and their estimates of post-harvest losses * On Conservative Scale (Ref: Agro-processing Industries in India-Growth, Status and prospects- Kachru, R.P)

24. Different hurdles for direct marketing including infrastructure; • Traditional marketing-Long marketing channel, low share in consumer’s rupee, high costs and margins, irrational marketing fees etc. • Infrastructural Bottlenecks- Rs. 11172 crore investment requirement • low per capita infrastructure limits the access of small and marginal farmers to the market • Small & marginal farmers 80% • Need for reforms for congenial policy for private investment in infrastructure

25. Marketing infrastructure • A.O. Hirschman- four characteristics of infrastructure i) the services facilitate economic activity ii) the services are public goods because of economic externalities iii) the services cannot be imported; iv)investments tend to be indivisible or lumpy • In this context, marketing infrastructure consists of a combination of national assets, sustaining the addition of place, time and form utilities

26. Marketing infrastructure • Can be classified as physical facilities and institutional facilities; • physical facilities--roads, railways,transport, postal,telecommunication facilities, electrification,storage structure,market yard and processing facilities etc; • institutional infrastructure—cooperatives,banking institutions, extension agencies, marketing Organisations and marketing intelligence network

27. Infrastructure Development Exporti Cooling Vapur Heat Treatment plant at Vashi Pack house

28. Post Harvest Infrastructural requirements

29. Marketing infrastructure-Gaps • The expert committee, Government of India(June 2001) made an assessment of investment requirement of Rs.268742 crore for investment in agricultural marketing.Bulk of the funds to be mobilized through pvt.sector. • For a complete supply chain of perishable horticulture produce, from farm to market:- • small pre-cooling units or zero-energy cool chambers at production areas to remove field heat of the produce • collection centers near to the farms • Medium to small cold storages(multi-product & multi-chamber) as transit godowns • Specialized cold storages with facility of built in pre-cooling, high humidity and controlled atmosphere for storage of produce for a longer period • Other components like ripening chambers close to market places and display cabinets at retail outlets • Linkages for conversion of fresh produce into other marketable forms

30. Marketing infrastructure-Gaps • The integrated pack houses catering to farms in respect of regions around 5000-10,000 hectare for washing, sorting, grading , packing, cold storing etc. • E-trading for direct marketing through kiosks in the market yard • Telephones:- only 59% of villages covered(2001) , 3.5% tele-density against world average of 16, target is 15% by 2015. Examine WCL technology. • Rural connectivity:- Only 47.83% of villages covered till mid 90s. Av. road length is 4 km. To connect each village with main road. Investment requirement is Rs 74000 cr. • Physical facilities in regulated markets:- auction platforms, shops and godowns etc; Rs 6026 crore during next 10 years

31. Marketing infrastructure-Gaps • Specialised markets :- fruits and vegetables, 241 places in the country; 970 crore. • Farmers’ markets:- Apni Mandis in different states. Should be in every district at least. • Rural periodic market- 27294 RPMs; investment requirement is Rs. 2146 cr. • Storage/ warehousing:- 52 million tonnes storage capacity available , need for creating storages for additional 20 million tonnes now stored in the form of CAP( Covered and Plinth ), investment requirement of Rs.5400 crore • Cold storages:- 135 Million tonnes of fruits and vegetables, 30% post harvest losses, during next ten years cold storage capacity of 45 million tonnes for investment of Rs.27000 cr.

32. Marketing Infrastructure-Gaps • Reefer Vans/ Containers- During next ten years 3000 units with a capacity of 8 tonnes each; Investment requirement is Rs.600 crore • Cleaning,grading and packaging:- Grading facility available in only1321 markets out of the 7300 regulated markets. Rs.2000 crore investment during the next 10 years. • Export oriented Agri-zones and Food parks:- estimated public investment (common facilities)-Rs 200 crore and private investment is Rs.400 crore on 50 EOAZs. • Processing and value addition:- Now 7% value addition and 2% processing; Target 355 Va. Addi. and 10% processing; investment of Rs150000 cr.

33. Ideal market – Infrastructure Requirements Core FacilitiesSupport Infrastructure Platforms for Automatic weighing Water Supply Auction Platforms Power Packaging & Labeling Equipments Veterinary Services Drying Yards Sanitary Facilities Loading, Unloading & Dispatch Facilities Posts & Telephones Grading Facilities Banking Standardization Facilities Input supply and Necessity Outlets Price Display Mechanism POL Information Centres Repair/Maintenance Service Storage/Cold Rooms Office Ripening Chambers Computerized Systems Public Address System Rain Proofing Extension and Training to Farmers Service InfrastructureMaintenance Infrastructure Rest Rooms Cleaning and Sanitation Parking Garbage Collection & Disposal Sheds for Animals Waste Utilization Market Education Vermi-Composting Soil Testing Facilities Bio-gas Production Power Drainage

35. Grading

37. Grading of Onians

38. waxing fruits Wax layer restricts the gases interchange. Air in the internal Cavity

39. Waxing and Grading of fruits

40. Pallet pre-cooling and transition to CA rooms

41. Ripening Chambers

42. PACKINGHOUSE OPERATIONS Schematic of the typical unit operations in a mechanized packinghouse Bin dump presize Wash / scrub Receiving, inspection Initial cooling Cold storage Cull and byproduct Automatic Sorting & sizing Hand sort Wax fungicide Dry Special operations labeling palletize Box Fill Cooling & storage Hand sort Box Fill Hand sort

45. harvesting Pre-cooling Cold chain To protect the product from direct sun light. Quick transport to the packaging. Minimize delays before pre-cooling. Uniform product’s cooling. Store the product at optimum temperature conditions . Practice first in first out rotation. Ship to market as soon as possible. Temporal storage Use refrigerated loading area. Cool truck before loading. Load pallets towards the center of the truck. Avoid delays during transport. Monitor product temperature during transport. Transport

47. High Humidity Air Handlers • Maintains up to 95% RH in the Cold Store. • Advantage is to increase shelf life of the fresh harvested produce. • Because 1 hour lost in pre-cooling may result in 8 to 24 hour loss in shelf life

48. Cooling Objective: to remove the field heat. Movement of the caloric energy from the product to the cooling substance.

49. Pre-Cooling Chamber