Agricultural Marketing in Kerala DEPARTMENT OF AGRICULTURE KERALA STATE 1

Kerala at a Glance Coast length of 590KM Located on the Malabar cost of south- west India at the extreme southern tip of Indian Sub continent Geographical area of 38863 Sq.Km. Humid equatorial tropic climate. Coast length of 590KM 1

3 climatically distinct regions The eastern high lands with cool mountainous terrain The central mid land with rolling hills The western coastal plains which is relatively flat and is criss-crossed by a network of interconnected brackish canals, lakes and backwaters. 1

Population(2011Census) Total Population =333.88 lakhs Rural Population = 174.56 lakhs Urban Population =159.32 lakhs Average density of population = 859 per Sq.Km. Nearly half of Kerala’s population are dependent on agriculture alone for income. 1

44 Rivers 41 west flowing rivers 3 east flowing rivers. Climate 120-140 rainy days per year Average rainfall of 3107 mm annually 1

Area Total Geographical Area =3886287 ha. Total Cropped Area =2668678 ha. Average size per holding = 0.27 ha. JGT/ADAM/DOA/TVM

Major Crops In Kerala(2009-10)

Other crops Vegetables = 43412 Ha Nutmeg = 15931 Ha Clove = 1206 Ha Cinnamon = 321 Ha Mango = 63751 Ha Jack = 78148 Ha Pineapple = 9627 Ha 1

Market Scenario The APMC Act has not been enacted in Kerala till date. Markets in Kerala are only governed by Panchayats/ Municipalities/ Corporations and not regulated by them. No adequate infrastructure available in the markets for efficient marketing 1

Market Scenario continued 348 wholesale assembly markets 1014 rural primary markets Rural primary markets are either in the Private/Co-operative/LSG Sector. The exploitation of farmers by the middlemen have been prevented to a great extent and the farmers are equipped for organized direct marketing of farm produce through programmes organized by Department of Agriculture and other allied agencies like VFPCK, Horticorp etc. 1

Organizational Set Up 1

Organizational Setup 1 State Level (Directorate of Agriculture) 2 Addl Director(M)-1 Deputy Director(M)-1 Technical Assistant(M)-1 2 District Level Asst.Director(M)-14 One in each 14 districts 3 14 Agmark Labs Staff pattern in AGMARK Labs Chemist(AO)-1 Lab Assistant-1 Class IV Employee-1 1

Organizational Setup (continued) 4 Urban Wholesale Markets Joint Director of Agriculture is the Market Secretary supported by an Assistant Secretary (Assistant Director of Agriculture) and supporting ministerial staff. 5 Rural Wholesale Markets Deputy Director of Agriculture is Market Secretary supported by an Assistant Secretary (Assistant Director of Agriculture) and supporting ministerial staff. 1

Wholesale Markets under Department of Agriculture 6 Wholesale Agricultural Markets have been established with fund from European Union Objective:-improve the agricultural marketing in the state and promoting direct marketing by the farmers to avoid exploitation by the middlemen. 1

Whole sale markets (Continued) 3-Agricultural Urban Wholesale Markets Anayara, Thiruvananthapuram Maradu, Ernakulam Vengeri, Kozhikode 3-Agricultural Rural Wholesale Markets Nedumangad, Thiruvananthapuram Muvattupuzha, Ernakulam Sulthanbatheri, Wayanad 1

Infrastructure available Auction hall Shops to be rented out to the farmers & Traders Electronic weigh bridge, Dormitory facilities Canteen 1

State Government Organizations associated with Agricultural Marketing A) Vegetable and Fruit Promotion Council Keralam Farmers group in villages 175-Farmers Markets Managed by Farmers:- The agricultural produce from the farmers are pooled and auctioned through the Swasraya Vipani (Farmers Markets) Farmers Markets ensured remunerative price to Farmers 1

State Government Organizations associated with Agricultural Marketing (Continued) b) Horticorp (Kerala State Horticultural Products Development Corporation) Involved in the procurement and marketing of horticultural products (including honey) throughout the state 150 Outlets throughout the state Mobile sales units in 4 districts (Kollam, Trivandrum, Kottayam and Ernakulam) 1

Horticorp(Continued) State Government Organizations associated with Agricultural Marketing (Continued) Horticorp(Continued) Horticorp participate in the direct auctions being conducted by farmers in the Agricultural Wholesale Markets and procure the commodities which are not purchased by the traders. 1

c. Kerafed Apex co-operative federation under Government of Kerala formed in 1987 assisted by the European Union, National Co-operative Development Corporation and Government of Kerala largest procurer of coconut/copra produced in Kerala. Procure copra at MSP rates. Copra procured is processed and Marketed as coconut Oil under the brand name “KERA” 1

d. Rubbermark (The Kerala State Co-operative Rubber Marketing Federation Ltd.) Apex institution of the 38 primary rubber marketing co-operatives in Kerala. Functions with active Participation of Government of Kerala & Rubber Board largest supplier of natural rubber and the biggest stockist of all grades of natural rubber in the country 1

e. Marketfed Marketfed is an apex body for primary marketing co-operative societies in Kerala Deals with traditional agricultural commodities like Pepper,dry Ginger,Cardamaom,turmeric,copra,arecanut,Rubber and cashew 1

F. Infrastructure facilities available cold storage facilities A)Markets under Department AUWM-Anayara- cold storage capacity-15 MT B)RAWM-Muvattupuzha & RAWM- Sulthan Bathery Cold storage facilty will be established during current year. 1

Cold storage facility available under other institutions Air cargo complex Thiruvananthapuram State Horticulture Mission & APEDA :-Temperature and humidity controlled storage facility at Angamaly,Ernakulam-storage capacity-25400MT at CIAL,NEDUMBASSERY 1

G. Market Intelligence A) AGMARK NET 92 Agmark net nodes –collect data and information on important commodities such as minimum, maximum and modal prices of varieties and arrivals in the selected markets and then uploaded to the site AGMARKNET Portal 1

Other Market Intelligence Programmes Kerala Agricultural University :–Deals with the market intelligence activities of cardamom,pepper and Coconut Vegetable and Fruit Promotion Council Keralam:- Deals with the market intelligence activities of Fruits and Vegetables 1

H. Market Intervention Support for Price Stabilization. Objective Launch procurement operations through designated agencies on selected agricultural commodities during harvesting season with a view to guarantee remunerative price to the growers. 1

I. Grading and Quality Control of Agricultural Commodities 14 State Agmark Grading Laboratories one in each district. Assessing quality of farm produce marketed, fixing grades of commodities and provide “Agmark” certification to processed Agri products The main produce being graded in these laboratories are coconut oil, gingelly oil, curry powders, ground spices, honey, ghee etc. On an average agricultural produce worth Rs. 15 crores/annum are being graded through these labs. 1

J.OTHER PROGRAMMES 1.Paddy Procurement The procurement programme of paddy will assure the farmers a remunerative price of paddy produced. Kerala State civil supplies Corporation procures paddy from farmers as per the procurement price announced by Government of Kerala . The difference in price between procurement price fixed by Government of Kerala and MSP declared by Government of India is paid by the State Government as subsidy 1

Price Difference between MSP & Procurement Price 2009 MSP =900/Qtl Procurement price =1100/Qtl 2010 MSP =1000/Qtl Procurement price =1200/Qtl 2011 Procurement price =1300/Qtl 2012 MSP =1080/Qtl Procurement price =1500/Qtl Note:-MSP is declared by G.O.I & Procurement Price is declared by G.O.K 1

2. Copra Procurement NAFED central nodal agency of Government of India undertakes procurement through the State Level Designated Agencies – Kerafed and Marketfed. Procure Milling copra,Ball Copra and dehusked coconut with water at MSP declared by Government of India. Procurement of green coconut is also carried out on a parity price of MSP for copra. 1

MSP of Copra 2009 Milling copra=4500/Qtl Ball Copra =4700/Qtl 2010 2011 Milling copra=4525/Qtl Ball Copra =4775/Qtl 2012 Milling copra=5100/Qtl Ball Copra =5350/Qtl 1

K. Innovations in Agricultural Marketing in Kerala E-trading in cardamom Spices Board has established a Spices Park for a common e- auction centre * Replaced the traditional auction of cardamom in Kerala. * The stakeholders of the cardamom auction are traders, planters auctioneers, dealers, dealer exporters. 1

b. Auction in Agricultural Wholesale Markets under Department of Agriculture   From 2010 onwards, direct auction of farmer’s produce has been started in Agrl wholesale markets of the department Farmer clusters have been formed within a radius of 25 Km from each market and produce from these clusters are auctioned through Agrl Wholesale Markets. Transport of agricultural produce from the farmer clusters to these markets has been arranged by the markets themselves. To prevent occlusion of traders towards reducing price of commodities, the Government of Kerala enterprise, ‘Horticorp’ participates in all the auctions 1

C.Establishing district level Procurement cum Marketing centre Objective:-Enable the farmer to get a remunerative price for their produce by avoiding the intermediaries. A pilot project in the five districts – Idukki, Alappuzha, Kollam, Thrissur and Kottayam The procurement of vegetables shall be undertaken through farmers groups District Level Procurement cum marketing committee. 1

district level Procurement cum Marketing centre(Continued) The groups will be given necessary financial support for the procurement of vegetables, from among the farmers and to give the price at the time of procurement itself. Seed money will be provided to the farmer’s clusters as one time grant Produce pooled from the members of the clusters will be auctioned at the District Level Procurement cum Auction centre The activities of the district level centre will be carried out by a committee consisting of farmers and officials of the department. 1

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