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,simultaneity  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, customer’s involvement, employees’ skill utilisation)

5. Internal marketing External marketing Organization Internal Marketing Front Line Employees Customers

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

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