New visions and role of APMCs

1
New visions and role of APMCs

• In the present era of liberalisation to boost the
  agricultural economy

B.K. PATY Deputy Director NIAM
2
New role of APMCs- outline of the presentation

• Shift from salesmanship to marketing
• Dealing with Service product-intangibility,simult
  aneity
• Marketing extension
• Promotion of direct marketing, contract farming,
  processing- leading to export, better returns to
  farmers, reduction of transaction costs etc.
• Promotion of grading and standardisation
• Making the traders association responsible
• GAP,HACCP,GHP,traceability etc. especially from
  export point of view
• Professionalisation of management
• Transparency in dealing/ auctioning
• Providing infrastructure and efficient services (
  Promotion of PPP mode)

3
dealing with a service product

• Marketers of services face a bigger challenge due
  to unique nature of services-intangibility,
  heterogeneity, inseparability, perishability
• Go beyond 4 Ps- product, price,promotion and
  distribution (Place) .Also
• people,
• process and
• physical evidence

4
Key Marketing issues

• The unique characteristics of services present
  some key marketing issues
• Managing differentiation amongst services (
  offer, delivery, image, service premises,
  packaging, personnel, tools and equipment used,
  customer, convenience, name of the organisation)
• Managing productivity (Commitment, High standards
  , Monitoring system, Customers complaint )
• Managing service quality(technology,selection
  training, standardisation of services, customers
  involvement, employees skill utilisation)

5
Organization
Internal Marketing
External marketing
Front Line Employees
Customers
Internal marketing
6
MARKETING EXTENSION

• Marketing extension is the order of the day in
  the post-WTO regime
• The incidence of huge post harvest losses can be
  attributed to poor marketing extension to a large
  extent.

7
Role of APMC

• Advice on production planning- careful selection
  of the crop from marketability viewpoint-internal
  or export
• Marketing information- price and arrivals,
  forecasting of market trends, demand of other
  markets, facilities available in the target
  markets, quality requirements, market fees etc.
• Securing markets for the farmers-Awareness about
  regulated market laws and reforms, Information
  regarding procurement by Govt. agencies, contract
  farming arrangement for cash crops with
  wholesalers, processors etc.
• Advice on improved marketing practices-
  packaging, appropriate storing methods,
  standardization and grading and other post
  harvest management practices such as maintenance
  of quality, awareness about post-harvest losses
  etc.

8
Role of APMC

• Advice on establishing and operating
  markets-Farmers groups to set up and run their
  own markets within framework of rules
• Processing and value addition- Farmers to be
  educated about value addition through primary
  processing
• Group action- Promotion of informal groups and
  Self Help Groups(SHGs)
• Marketing Credit- Educating farmers about
  different schemes of marketing credits, Advice on
  warehousing with pledge finance scheme
• Problem solving methods micro-level
• Marketing extension for export market WTO
  implications, Codex, HACCP, Euro gap standards,
  Awareness on ill effects of pesticide/insecticides
  residue etc.

9
Promotion of Direct Marketing, contract farming,
processing

• Less than 2 of f v processed in India, as
  against 65 in USA, Brazil, Phillipines, South
  Africa and 83 in Malaysia
• Similarly the extent of value addition is 7 in
  India as against 23 in China and 88 in UK

10
Area production of agri products
11
(No Transcript)
12
15 major food items of export (INR billion Rs)
13
APMC role in contract farming

• Provisions of a model agreement- sensitisation
• Awareness about dispute redressal mechanism.
• Collection of market intelligence data about
  contract farming
• Registration of contracts, whre authised

14
Promotion of grading and standardisation

• Bureau for grades and standards- feeding
  information and working in close coordination
  with the Bureau
• Awareness about existing grades and standards.
• Identification of commodities and preparation of
  proposals for preparation of grades and standards.

15
Making the traders association responsible

• Feedback about policy issues
• Involvement in waste disposal and management.
• role in maintenance of food safety and quality
• Role in ensuring transparency in the business
• Role in training of the farmers

16
GAP,HACCP,GHP,traceability etc. especially from
export point of view

• Testing facility in the premises of APMC
• Awareness about the quality management tools
  amongst the stakeholders.
• Big APMCs can set up training centres with an
  attached laboratories

17
Professionalisation of management

• Appointing professional managers as CEOs from the
  panel prepared by the Board
• Computerisation
• Computerised linkage of fees with the arrivals
  through automation
• Service orientation

18
Transparency

• Auctioning
• Allocation of shops etc.
• Computerised linkage of market fees with arrivals

19
Providing infrastructure and efficient services (
Promotion of PPP mode

• Outsourcing
• Infrastructure in the premises in PPP mode.
• Collection centres in PPP mode.
• Transportation, grading and packing units etc. in
  PPP mode.

20

• THANK YOU