PARADIGM SHIFT IN AGRICULTURAL

MARKETING AND ITS IMPLICATIONS

Student Name – Katkam Vamshi Krishna

Student Id - 77121656102

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ACKNOWLEDGEMENT

I am indebted to my instructor/mentor for providing me with consistent direction and a great

deal of support while I was working on my fantastic project, which was titled “PARADIGM
SHIFT IN AGRICULTURAL MARKETING AND ITS IMPLICATIONS” This project
not only enabled me to conduct a great deal of research, but it also enabled me to acquire
additional knowledge on specific subjects. I've been able to complete the project more
quickly thanks to his or her constant advice, thorough direction, and encouragement. I have
gained a lot of knowledge about various research methods and their application. It is
important to acquire information and augment the area of study.

I am extremely grateful to the professors for providing me with lecture-related knowledge,

which I was able to apply to the completion of my project.

In addition, I would like to express my gratitude to my parents and friends, who greatly
assisted me in completing this project within the allotted time.

Last however not the least; I'd like to thank everyone who helped me with this project.

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TABLE OF CONTENT:

SR. PARTICULAR PAGE

NO. NO.

01 INTRODUCTION 04

02 REVIEW OF LITERATURE 07

03 RESEARCH METHOLOGY 34

04 CONCLUSION 46

05 REFERENCES 56

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INTRODUCTION:

In any farming economy, horticulture acts as a synergist specialist for monetary growth. The
initial stages of agricultural development served as the foundation for subsequent expansion,
as numerous developed nations, including Israel, Australia, and the United States of America,
have discovered. Horticulture can add to monetary development in various ways, including
expanding the stock of food, moving work assets to optional enterprises, expanding capital
arrangement in different ventures, and expanding buying power.

Agribusiness is the backbone of India's economy. North of 70 million individuals are reliant
upon it for their business, and it contributes almost 21% of Gross domestic product. Through
the foundation of agro-based and food handling businesses, it has added to industrialization.
By sending out more than Rs, horticulture contributes almost 18% of India's absolute
unfamiliar trade profit. 35,000 crores worth of various cultivating and agribusiness based
things.

From customary means cultivating to advertise situated business cultivating, Indian

horticulture has advanced. Considering what is happening it is the exhibiting of result, which
expects a basic part in the improvement of cultivation. Unless it is used or consumed, any
produced goods will be pointless. Subsequently, the development of the horticultural area is
dependent upon the foundation of a successful rural advertising framework.

An efficient agricultural marketing system can be described as one in which every

agricultural product produced is consumed with the least amount of waste and marketing
expense possible, a farmer receives the highest possible share of the rupee from consumers,
and the consumer receives the highest quality product of his choice at a reasonable price. In
ideal economic situations, tasks and valuing effectiveness can be accomplished to 100
percent level. Nonetheless, basically most of the times it becomes major for the State run
organizations to interfere in the provincial displaying system in without a doubt to get

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somewhat near perfect monetary circumstances. This is where the policies and programs of
the government come into play.

"An effective marketing strategy has the potential to be an effective change agent, a
significant means of increasing the farmers' incomes, and a significant means of increasing
customer satisfaction," Chipping away at the individual fulfilment of the majority can be
outfitted. Subsequently, promoting productivity strategies require cautious thought.

Due to shifts in the social and conservative climate, the landscape of Indian horticultural
advertising is undergoing significant transformation. Changes in the country's finances are
the result of advancement and globalization policies implemented by progressive State-run
administrations in the 1990s in relation to changes elsewhere in the world. Changes in food
habits and ways of life as a result of improved daily environments, rising per capita incomes,
improvements in health and education, and other factors are known as social changes.

Marketing and production of agricultural goods have been affected by economic shifts. The
output marketing pattern, strategy, and style has changed as a result of attitudes toward
agricultural production as a business, the introduction of new production technologies, and
shifts in cropping and farming practices. The shifts in society have increased the demand for
products of high quality with added value. The way agricultural products are sold has
changed thanks to direct marketing at consumer doors, which can be found in places like food
markets and other places. Market changes ought to be a fundamental piece of any procedure
for green new development. Ranchers can benefit from conventional financial incentives to
increase their productivity only if the promoting framework expands the market for their
produce and offers them a reasonable price for it.

Under these circumstances the whole activities of agricultural promoting, for instance,
selling, buying, squeezing, transportation, limit, taking care of, market structure, market
headway, market information, etc., are required in order to improve the agricultural
marketing system's efficiency. It is common knowledge that governments support agricultural

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marketing enhancements and reforms through a variety of policies and programs. The
ranchers, particularly the small and marginal ranchers, require every ounce of support from
the government for endurance and development, particularly during the transition period
when we are transitioning to total economic development. The fundamental essential changes
taking exceptional consideration of the necessities of the clients and buyers are to be
impacted. It is necessary to periodically examine and modify policies in light of how they
have performed in the past and how domestic and international developments have changed.
However, if an update is necessary, it shouldn't be done under the pressure of a sense of
emergency. 1.5 The government will continue to play a significant role in agriculture despite
the fact that economic policy gives the private sector more power and allows market forces to
play a larger role. Government intervention through structure hypothesis and consistent
methodology evaluations will be significant for staying aware of the mood of creation. One
of the suggested measures is a suitable agricultural pricing and marketing policy with
sufficient storage and processing infrastructure.

The ever-evolving landscape of agricultural marketing requires the integration of the local
market with that of the national and international markets in order to reap the benefits of
liberalized global trade. However, unless and until the fundamentals are solid, an unexpected
economic opening could be detrimental to the ranchers' and rural creation development's
overall interests. Consequently, the nation's development of a robust and dynamic agricultural
marketing system ought to prioritize agricultural product marketing to farmers.

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REVIEW OF LITERATURE:

Changes in rural promoting, the effect of agrarian advertising strategies and projects, and the
activity of directed markets have all been the subject of various examinations. The studies
that are related to the subject of the current research are summarized in the paragraphs that
follow. The study focuses on the themes of the literature review, which include market
structure, policies and programs, market infrastructure and institutional support, trade
regulation and its effects, altered cropping and marketing patterns, and market structure.

The Studies Related to Policies and Programs: A number of studies on agricultural marketing
policies and programs are examined in this section.

As indicated by the Unified Countries' distribution on horticultural promoting strategy by

F.A.O. (2005), "getting the right approach is basic to the progress of farming promoting
changes." The ability of the private sector to develop and take over previously government-
run activities is frequently limited by poor policy that is frequently contradictory or by good
policy that is not effectively implemented. Subsequently, proper arrangements for upgrading
the promoting framework for horticultural items are created and executed by and large by
legislatures.

Nagaraja Setty (2000) says that the state of Karnataka is going through a new marketing
pattern. A course of decentralization that spreads exchange all through the state is the primary
element of this example. The creator recommends that the Focal and State Legislatures ought
to execute a Coordinated Rural Creation and Showcasing Strategy to expand the advantages
to both farming makers and shoppers.

Ramaswamy, C and Elangovan (1996) feel that W.T.O. has also opened up new entryways
for product of country things, both unrefined and dealt with. Agriculture will gain value from
this, and the environment will become more conducive to investment. However, this
necessitates adjustments to policy in order to encourage the formation of agricultural capital.
As a result, they argue that decentralized agricultural commodity production and large
exports should be encouraged. The authors of this paper are in favour of involving the private
sector in a variety of marketing activities.

Shrijay Devaraj Urs D (1996) claims that businesses, farmers, and the state have all benefited
from the gherkin cultivation in and around Bangalore that began following the GATT
agreement. Contract cultivating is best for little ranchers in light of the fact that the

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organizations give not just the info materials, capital, and creation innovation, yet in addition
a guaranteed cost. As a result, these farmers' production and price risk have decreased
significantly. As a result, the state should encourage contract farming among marginal and
small farmers as a marketing strategy.

"The farmer's access to irrigation, modern inputs, credit, and extension has improved," notes
Rao, V.M. (1994). Progression is expected to give a strong push to development and
modernization of the economy, including farming. By changing to coordinated markets and
establishments, he has gained a few headways in diminishing his dependence on town dealers
and moneylenders. The point is that the farmer now has opportunities to increase not only his
output but also his contacts with markets and the world beyond his village. However, he
wouldn't be able to easily transition from the traditional ways of thinking and acting that
focus on survival and are still common among many farmers to the modern markets, which
are dominated by powerful organized groups and are brutally competitive. Evidently, until
the farmer learns to adapt to the demands of the new environment, he will remain vulnerable.

Rao continues by stating that farmers would gain two benefits from liberalization: a) the
increase in output they would achieve, which would be influenced by their efficiency,
availability of resources, and production abilities; and (b) the market returns they would
receive, which would be dominated by their capacity to comprehend market signals, act on
them, and negotiate a fair price.

Until Indian farmers develop the strength to compete, the author emphasizes the significance
of the government's appropriate policy during the transition from a protected to a liberalized
era.

According to Dantwala, M.L. (1993), the policies do need to be reviewed and revised on a
regular basis in light of how they have performed in the past and how domestic and
international circumstances are changing. He claims that the changes to the policy won't have
to be considered only in a crisis; As usual, they will be completed.

The connections between price reform, deregulation of internal markets, and agricultural
trade are crucial to the reform process, according to Schiff, M., and Valdis, A.'s (1992)
analysis of 18 countries in Asia, Sub-Saharan Africa, North Africa, the Middle East, and
Latin America. Implementing the first option is unlikely to have a significant impact on
investment and productivity without internal market deregulation. Policy reform efforts in
Sub-Saharan Africa are severely hampered by internal regulations, which frequently prevent

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competitors from entering domestic input and output markets and allowing for competition.
Therefore, any policy that aims to alter international trade in agricultural commodities ought
to begin the reform process at the primary marketing level.

According to Sidhu, D.S., "an efficient marketing system can be an effective agent of change
and an important means for raising the income levels of farmers and the levels of satisfaction
of consumers." It can be used to raise the standard of living for the general public.
Accordingly, advertising effectiveness arrangements require serious thought."

As per Gowtham Surapaneni's (1989) research on the creation and promoting of leafy foods
in the Bangalore locale, the relapse coefficient of land demonstrates that there is potential for
extending the region under vegetables, which is additionally upheld by ranchers' viewpoints.
The review shows the bearing in which the trimming design is creating, requiring new
approach headings for ware showcasing.

"An efficient marketing system encourages increased production by lowering prices for
consumers and reducing marketing costs for producers," states Prasad, Jagadish (1989). This
widens the market and, accordingly, helps makers' benefits. " Promoting being a muddled
peculiarity, improvement of a couple of parts of showcasing alone won't bring the ideal
outcomes except if a thorough arrangement, for example, "Coordinated Market Advancement
Strategy" enveloping all the head and subordinate showcasing administrations referenced in
the review is placed into activity," he adds. The study's author suggests the need for a
comprehensive agricultural marketing policy to address the emerging issues.

Sanjib Bhuyan and Karl Weber "It is the ideal opportunity for a cross country assessment of
the reason and working of the Directed Business sectors so their concerns and prospects can
be judged and some better strategy be planned for the successful working of these business
sectors in order to guarantee that they assume a significant part in the improvement of their
provincial hinterland," says E. (1988), while examining the job of directed markets. The
authors of this paper propose a novel purpose for the nation's regulated markets.

"A simple but workable strategy can be conceptualized as a two-pronged approach to develop
regulated markets and major periodic markets as foci of development activities for their rural
hinterland," the authors further state. At the area level, a few market communities can be
gathered, and afterward; A region for the implementation of development plans can be
formed by combining several of these districts in a spatial sense. This strategy will conform
to the existing hierarchical structure and meet all administrative and organizational

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requirements. The authors emphasize the significance of vertical integration for the
development of agricultural markets in the nation and their organization.

One of the reasons for the decline in international trade, according to Nikos Alexandrates
(1988), is that national agricultural policies in many surplus-producing nations have, for the
most part, failed to adapt sufficiently to provide producers with appropriate signals in the face
of significant changes in market requirements. In many developing nations, structural
adjustments have been made with the intention of increasing production and decreasing
imports. In order to take advantage of the advantages of liberalized international trade, policy
reforms need to begin at the fundamental level of marketing. Mittendorf, H.J. (1987) says that
many marketing functions need to be seen as part of a system that includes agricultural
production and the supply of production inputs. The frameworks way to deal with promoting
takes a gander at what every movement means for how well the framework fills in overall.
The creator proposes a couple of strategies for reinforcing horticultural showcasing
administrations, for example, fortifying vertical and even coordination of the promoting
framework and brief arrangement of little rancher improvement related advertising
administrations at the most reduced conceivable expense and in helpful areas.

Lele Uma J. (1973) asserts that "the scarce governmental resources should be allocated to
areas where private resources are not likely to flow abundantly" rather than taking over the
private trade because "private trade in rice, wheat, and jowar operates efficiently within the
technological and policy confines." The author goes on to say that "the available evidence
overwhelmingly shows that trade operates efficiently within the technological and policy
constraints." As a result, there is no reason to believe that the traditional market structure will
not be able to accommodate increases in agricultural production so long as government
policies facilitate rather than discourage investment in the new storage and transportation
facilities required to accommodate increases in marketing and encourage technological
advancement in the traditional market structure. There is a lot of native entrepreneurial talent
in the trading industry, which could be used to alter the marketing system. This study
demonstrates that market structure improvement and facilitative regulations are required. The
restricted assets of the public authority should be given to regions where confidential assets
are more averse to stream plentifully."

In highlighting the policy gap in the agro-processing industries, Kamala, G.V., and Khot,
S.M. (1972) write, "Processing of agricultural produce at the primary level and with modern

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methods offers immense benefits both to agriculture and industry." However, our Five Year
Plans' policies and program do not adequately recognize these primary processing activities.
In addition, the authors assert that the modernization of primary processing industries will
greatly benefit the region's development and modernization of agriculture. The majority of
primary processing industries cannot be separated from their raw material source without
causing harm to processors and growers due to the perishable nature of the materials and the
need for immediate processing in nearby areas.

In addition, the authors note that both parties have benefited from these industries' rural
orientation and their intertwining of grower and processor interests. This has permitted the
business to: (a) grow in size and effectiveness; b) add to the modernization of horticulture;
also (c) expect the attributes of a modern complex.

Citing the cooperative tomato processing plant, Hindustan Lever's peas processing plant in
West Uttar Pradesh, and the Amul Diary Cooperative Anand, the authors conclude that
"Agro-Industrial activities in primary processing have the capacity to transform and
modernize the agricultural sector and become the nuclei for more widespread development."

Ponduval, R.N., looked into how agricultural commodity marketing reforms affected India in
1959. He asserts that among the reforms, state trading in food grains, regulation of forward
markets, grading and standardization, promotion of integrated cooperative marketing,
provision of warehousing facilities, dissemination of market intelligence, and establishment
of regulated markets were deemed to be of the utmost importance. These measures also
relieved consumers and cultivators alike by narrowing the gap between the prices paid by
consumers and the prices received by cultivators.

Market infrastructure and institutional support will cause changes:

The horticultural promoting framework will change because of the arrangement of market
foundation and institutional help, as per various examinations. Some studies include the
following:

"Encouraging appropriate institutional arrangements for better markets through co-operative

companies or contract farming would go a long way in strengthening farm-firm linkages,"
writes Yerram Raju, B. (2005). According to the article, "assured markets and a good road
network could stimulate commodities diversification in favour of high value crops, which
help maximize profits and minimize output price uncertainty." Therefore, the shift in

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cropping pattern must be followed by appropriate adjustments to marketing patterns in order
to reap the benefits of diversification.

As per Landes, Maurice R. (2004), India's traditional and inadequate rural showcasing
framework is adjusting. Inefficiency is caused by a number of factors, including inadequate
infrastructure for transportation and handling, domestic taxes, and fragmented, unintegrated
marketing chains dominated by small businesses. Policies are now encouraging private
investment in a more efficient agricultural processing and marketing system, both
domestically and internationally. Jay Fabiosa and others, Investigate how the multilateral
elimination of all farm programs and border taxes has distorted global agricultural markets by
employing a partial equilibrium model of global agriculture (2003). As per the creators,
"following the evacuation of all contortions influencing farming, significant however
heterogeneous terms of exchange impacts" With the exception of oilseed dinners, worldwide
costs rise. The costs of dairy items have expanded the most, trailed by those of meat, cotton,
and different harvests. Trade flows are significantly affected by distortions. When trade
changes significantly in highly protected markets, such as the oilseed and oil markets in India
and the meat markets in the Philippines, consumers greatly benefit. Net trade for all dairy
products increases. Trades expansion in Argentina, Australia, and New Zealand.
Commodities of all dairy items from the European Association drop emphatically. Because of
expanded request and diminished milk creation, Canada turns into a net shipper of all dairy
items. The European Association, Canada, and, less significantly, the US endure. Natural
exporters like Brazil, Argentina, and Australia, as well as other countries that compete with
the United States on global markets, see significant production growth. Traditional meat
exporters are increasing their use of feed and switching from feed-grain trade to feed-
intensive, value-added product trade. The US, Thailand, Argentina, Brazil, and Canada all
essentially increment their meat or potentially poultry trades.

Rameshchand (1998) says that special marketing yards for vegetables, fruits, and flowers
need to be built in order to have the right infrastructure and auctioning facilities there. He
likewise says that horticultural promoting is a powerful interaction that gets more significant
and more convoluted as financial improvement goes up. As urbanization, way of life, taste,
innovation, foundation, exchange, and creation conditions shift, so do farming business
sectors' assumptions, jobs, and difficulties. This suggests that in order to keep up with
changing requirements, policies should be reviewed frequently.

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Subrahmanyam, K. V., and Sudha, M. (1997) came to the conclusion, among other things,
that small-scale cultivators are aware of the potential for horticultural crop enhancement to
increase their income based on information gathered from interviews with sample farmers in
Chikkaballapur and Malur taluks of Kolar District between 1992 and 1993. Also, the creators
express that little ranchers should be safeguarded from cost risk to profit from the new
innovations produced for green yields. Establishing price support programs and connecting
processing to production and marketing are two ways to accomplish this.

The following infrastructure facilities are required to transform the Srinivaspur region into a
mango export zone, as stated by Govinda Reddy, D.M. (1996): further developed mango
unites, water system, expansion exercises, further developed collecting, foundation of
evaluating and pressing focuses, foundation of pre-cooling and cold stockpiles, refrigerated
transport trucks, and foundation of promoting framework, for example, controlled markets
and godowns are only a couple of the upgrades that have been made. Despite the fact that the
review is centred around a particular yield, its discoveries feature the requirement for
strategies in the review region to make framework offices on the grounds that these offices
are not accessible for practically every one of the harvests developed there.

Sukhpal Singh (1996) claims that Gujarat's agro-processing industry has benefited from both
its location advantage due to its proximity to terminal markets like Mumbai and the
availability of good marketing infrastructure through regulated markets and cooperative
marketing.

According to Coulter, J., and Shepherd, A. (1995), private traders have taken over
government and parastatal agencies' marketing responsibilities since agricultural marketing
systems were liberalized, but they frequently lack ready access to financing for purchasing
and storing produce. Inventory credit is one way to solve this problem. In view of an
investigation of creation and appearances in the territory of Andhra Pradesh from 1970-1971
to 1987-1988, Jayashree Anand (1995) reasons that market appearances become quicker than
creation. The elasticity of arrivals to output is still greater than unity and appears to be rising,
so market infrastructure needs to be improved.

In view of meetings with ranchers, Shyama Separate, M.S. (1993) arrives at the
accompanying resolution, in addition to other things: In onion marketing, major issues
included violent price fluctuations, high transportation costs, increased waste, a lack of

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market price information, inadequately priced storage facilities, and the absence of a price
support program. This is valid for most of horticultural items, which require restorative
activity.

As per Sujatha, M. (1988), there is an extended chain of mediators, especially on account of

business crops. Fruit marketing was dominated by pre-harvest contracts, which handled more
than half of the produce. It was normal for town dealers or commission specialists to sell
business crops, with cooperatives assuming a minor part. The majority of consumer prices for
their services are borne by intermediaries, particularly for perishable goods like fruits and
vegetables. It was found that business crops offered makers more prominent returns.
Consequently, cooperative marketing and a marketing strategy that benefits consumers and
farmers alike while reducing the number of intermediaries must be promoted.

Subba Rao K's (1987) investigation of regulated markets in Bihar led him to the conclusion
that the findings all seem to support the idea that small-scale buyers operating in villages who
buy grains at the doorsteps of farmers seem to serve small farmers better than wholesale
dealers in the market, regardless of whether it is regulated. This supports the notion that a
market or facility centre between the farm and the markets that are currently regulated is
necessary to meet the requirements of a particular group of farmers and traders. ` .

Estimates of losses at various stages of marketing have shown, according to Subrahmanyam,

K.V. (1986), that approximately 15% of losses occurred in the Bangalore market, with 3
percent occurring during loading and unloading, 3 percent during transportation, 2 percent
due to poor packing, 4 percent due to poor quality, and 3 percent due to other factors. The
author suggests that new post-harvest treatments, improved packaging practices, a change in
the design of containers, and other more efficient methods for handling horticultural crops,
should be developed to minimize harvest losses. The current marketing system has flaws,
such as a lack of professionalism in commodity post-harvest handling and market charges
that exceed services rendered, according to the study.

Gopal Rao, H.S., and Asha Maheshwari examined state-level trends in agricultural
production and market arrivals in Karnataka in their 1983 paper. They found that the
appearances of significant wares in directed markets have lingered behind the creation of
cereals and business crops, not to mention that they are drawing in a bigger portion of the
result that is sold. This was the case even though infrastructure had improved between 1971–
72 and 1981–82. Furthermore, they observed that business sectors with advanced yards

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couldn't draw in an expansion in appearances when they thought about region level creation
and market appearances of chosen markets. It didn't likewise exhibit that the business sectors
without yards saw an expansion in guests after some time. As a result, examining the
connections between production and market arrivals in relation to the operation of regulated
markets is fascinating. In Punjab, a 1983 study by Harbans Singh found that the increased
volume of post-harvest market arrivals resulted in severe bottlenecks in handling, storage,
transportation, and, most importantly, market yard facilities due to a lack of basic market
infrastructure and market technology. Subsequently, a drawn out procedure that consolidates
state of the art taking care of strategies and present day foundation offices from the essential
market level to the terminal market level is required.

Mohandas and others' study of fruit and vegetable cold store units of various agencies
analysed the relative performance of Government (1%), Cooperative (5%), and Private
Agencies (94%) in running the cold store in terms of capacity utilization, profitability,
commitment to serving primary producers, and planning and administration. The study was
based on data collected from six fruit and vegetable cold stores in Bangalore city for the years
1975-76 to 1977-78. The confidential area performed better compared to the next two areas
concerning limit usage, benefit, and the board. The helpful unit performed well with regards
to meeting the cool stockpiling prerequisites of essential makers and, somewhat,
agriculturists. To ensure that cooperative and government cold stores function effectively,
management needs to be improved. In order to provide cold chain infrastructure, policy
initiatives must take into account the roles of the public, private, and cooperative sectors.

In a 1978 study on the issues and marketing of vegetables in Bangalore, Gopal, K.N., and
Prasad, B.G.R. found that retailers suffered losses ranging from 6% to 9%, depending on the
vegetable. It's implied that legitimate and logical dealing with techniques ought to be utilized
to limit the misfortunes of vegetables after gather.

In her investigation of some rural product markets, Jasdanwalla, Z.Y. (1977) presumed that
the current market structures required revolutionary change. She emphasized the extensive
adoption of standardized grading, the regulation of an increasing number of markets, the
dissemination of increased market information, the expansion of storage and warehousing
facilities, and the adoption of improved technology at the packing and processing stages in
order to improve the performance of the existing markets.

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The authors of a study that was conducted in Nepal, Satya, M.R., and Gill, K.S. (1977), assert
that the establishment of rice mills in each assembling market and the provision of adequate
infrastructure facilities would result in improved prices for paddy producers and increased
buyer competition. This study emphasizes the necessity of processing facilities at primary
market centres or farms.

In their review, Hanumantha Rao, C.H., and Subba Rao, K. (1976) reached the resolution that
the examination of rice promoting proposes that the misfortunes, most importantly, caused by
little ranchers because of different defects in the advertising framework are not close to as
huge as is usually accepted, especially when the misfortunes are connected with their all-out
pay. Second, infrastructure underdevelopment, which affects all classes of farmers, is one of
the most significant causes of these losses. Thirdly, and this is connected with the subsequent
point, the handicaps that are shared by enormous and little homesteads are more critical than
those that are novel to little ranches. Fourthly, economies of scale and credit ties have an
impact on both producers and consumers of produce for small farmers. This implies that
actions to support returns on produce promoting are interwoven with institutional changes
pointed toward expanding venture and result on little ranches. Consequently, the agricultural
marketing improvement policy will incorporate the institutional reforms.

Ramasivan et al. say that's (1968) concentrate on the protection of food grains in country
capacity, ranchers just sold 14.3% of their produce and kept the leftover 76.6 percent away
designs. Storage structures included mud, pots, jute bags, tins, drums, thekkas, and kuthlas.
The quantitative misfortune in food esteem went from 2.03 to 9.58 percent. Through the
production of logical stockpiling frameworks, a viable food strategy ought to decrease
capacity misfortunes. Through the conveyance of distribution centre receipts, this will
likewise make it more straightforward to get a vow credit from the banks.

Sarid, J.N., Lallan Rai, Krishnamurthy, K., and Pingale, S.V. (1965) discovered that the
storability of a commodity is influenced by the location of the warehouses in their study of
the large-scale storage of food grains in India. The well-planned construction of warehouses
will benefit the farming community as a whole. Regulation has an effect on agricultural trade:
The accompanying examination has zeroed in on what farming exchange is meant for by
guideline.

"Regulated Market Yards and the Marketing of Produce of Farmers in Karim Nagar District
of Andhra Pradesh" by K. Upender in 1995 found that large cultivators sold significantly

16
more in the Huzurabad market yard than in the village. Shringi, K. C., (1991), following an
investigation of two market yards in the Kota locale of Rajasthan state, to be specific Kota
Market (between 1964-65 (when there was no market) and 1979-80) and Baran Market
(between 1964-65 and 1982-83) reaches the decision that there was a huge change for
business crops (proportion expanded from 33.06 to 43.28) contrasted with food grains, which
showed a decrease in proportion from 60.43 to The creator guarantees that this has expanded
the overall gain from all yields, that peripheral and little ranchers have helped more than
enormous ranchers, and that work has expanded by 83.87% in Kota and 47.05% in Baran
market between the pre-and post-project periods. As a result, market yards with sufficient
infrastructure to accommodate shifts in cropping patterns are advantageous to farmers,
particularly small and marginal farmers.

"In India, the State is assigned a decisive role in the mobilization and redistribution of social
resources, in the changing relations of production and exchange, and in progressive and
planned economic change," writes Barbara Harriss Harriss (1984). The entire market and the
state-owned means of production that simultaneously control the economy." Managed
Showcasing, which started for the purpose of controlling provincial exchange send out crops,
has formed into a board of the new populism and is seen by public and worldwide rustic
improvement organizers as a method for empowering exchanging entrepreneurs to serve little
ranchers," the creator proceeds. We have seen that regulated markets plan strategies for
raising producer prices, teach farmers how to sell their products, increase the number of
dealers competing to buy produce (to maintain or create competitive markets), control the
activities of monopolists and monopsonists, serve as facilitating assembly points for
monopolistic State Trading Institutions, and retail consumer goods and agricultural inputs
wherever it is appropriate. These ideas are not only contradictory but also far removed from
actual experience. Even though the author of this study acknowledges the significance of
regulated markets in maintaining farmers' interests and fostering a competitive market, he
also emphasizes the flaws in these markets. The Response of Markets to Changes in Demand:
According to Priya Deshingkar and others (2003), there is a growing domestic market for
horticultural produce, including traditional and exotic vegetables, but changes in the global
food system are causing changes in food production and marketing in India at a slower rate
than in other developing countries. The shifting demand brought on by diet changes and
urbanization is prompting adjustments in production and marketing arrangements.

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We examined changes in cropping patterns at the All India Semi-Arid Tropics (SAT) level as
well as at the level of crop zones by constructing a crop typology based on district level data
from 1970 to 1994. We arrived at the resolution that even in the SAT locale, ranchers are
generally spurred by benefit in the designation of region to different elective yields. The
concentrate likewise shows that rural exchange progression is probably not going to
adversely affect the unfortunate's cost for most everyday items, giving expect a more
consistent change to an open economy than expected. While agro-climatic elements decide
the circumstances under which harvests are developed, the creators guarantee that
adjustments of monetary variables (like info and result costs), mechanical elements (like
superior seeds and water system), and institutional elements, (for example, market, street
thickness, admittance to credit, and so on.) are increasingly influencing the patterns of
cropping. and policy-induced factors (such as irrigation and fertilizer subsidies, procurement
costs, etc.).

According to Narasimha Murthy, G., and Raji Reddy, K., the agricultural marketing system
in India is influenced by both micro and macro environmental factors (1996). They say that
the different constituents of the microenvironmental factors that perform different
showcasing capabilities incorporate the purchaser and his attributes, market middle people,
working with organizations, government organizations, and at last shoppers. Monetary
elements, sociocultural variables, politico-legitimate elements, mechanical variables, and
climatic variables are all macroenvironmental factors.

Modifications to the Cropping Pattern, Marketing, and Market Structure: As indicated by

Kaul, G. L. (1997), "Patterns for expanding crop creation are clearing the country." The
steady rise in the proportion of green harvests in the total net and gross cultivable region
demonstrates this. Between 1984 and 1985, these crops covered 5.9% of the gross cropped
area and 7% of the net cropped area. Coverage increased to 8.6 and 6.7 percent in 1991-92
and 9.7 and 7.2% in 1994-95, respectively, in Karnataka, where coarse grains and pulses have
yielded area to horticultural crops like fruits, vegetables, and garden crops in the range of 15
to 42%. This change in cropping pattern may also have an impact on marketing pattern,
making it an intriguing study.

Praduman Kumar and Mathur, V.C. (1996) assert that rapid structural change also has a
significant impact on food demand, in addition to income and food prices, which have a
significant impact on the pattern of food consumption. These patterns of food demand

18
initially shift in urban areas, but eventually structural change also occurs in rural areas. As
per the creators, a change popular will urge makers to broaden their creation. The authors add
that rising export market demand, particularly for fruits, vegetables, and marine products, as a
result of globalization and new economic policies will exacerbate the extent of diversification
brought about by structural shifts in consumption.

Buyer and seller concentration is the cause of market fragmentation and market sharing
among commission agents, according to a 1993 study by Asha Maheshwari. The personal
connections that exist between producers and commission agents make the market structure
flawed. In shifting degrees, every one of these variables is available in the business sectors of
Mysore, Hubli, and Davanagere. Consequently, it is necessary to investigate the operation of
regulated markets and put the necessary reforms into action through appropriate policy
measures.

Ranganatha Shastry's (1983) factor analysis resulted in the following conclusion: As well as
turning out a higher revenue, commercialization of farming had the option to create extra
work for horticultural workers and furthermore higher promoting exercises."

Nadakarni, M.V.'s (1982) findings regarding the development of agricultural prices in

Karnataka included the following: Ranchers, the common laborers, political pioneers, and
social researchers should consider on the choices to introduce promoting situation (inclined to
control and instability)....In doing as such, they may...find that an adjustment of the farming
business sector framework can't be disconnected from the issue of changing the idea of
market and creation relations (in horticulture as well as in made merchandise)" In this part,
the creator underscores the need of fostering a strategy for rural creation and showcasing that
is in accordance with more extensive public strategy and considers different ventures like
assembling and administrations.

George, P.S. (1980), in his investigation of the shifting pattern of consumer demand for food
grains in India, reached the following conclusion:

(a) From 1961-1962 to 1973-1974, the country and metropolitan grain utilization per capita
diminished by 13.9% and 9.2%, separately.

b) The consumer price of cereals increased more quickly than general prices between 1961
and 1972 and 1973 and 1974. However, prices continued to rise at a slower rate in urban
areas than in rural ones.

19
(c) When price increases were taken into account, per capita spending decreased by 13.3% in
rural areas and 9.7% in urban areas, despite consumer spending increasing in both urban and
rural areas at current prices.

d) In rural areas, quality elasticity of cereals increased while expenditure elasticity and
quantity elasticity decreased between 1973 and 1974. In urban areas, all of the
aforementioned types of elasticities increased.

e) From 1961-1962 to 1973-1974, shifts in income and price levels are to blame for the
decline in cereal consumption per capita that occurred in urban areas (about half) and rural
areas (about three-quarters). As per the discoveries of this review, interest for cereals was
ascending couple with individuals' salaries even before financial changes were carried out in
India. Be that as it may, even after the changes period, this pattern continued.

There is a strong correlation between shifts in the relative prices and the acreage of
competing crops, according to George, M.V.'s (1968) investigation of the acreage responses
to price shifts in Kerala from 1952-1953 to 1961-1962. The policy conclusion states, "it is
necessary to stabilize the relative prices of food crops in relation to other agricultural
commodities produced in the state."

A technique for deciding the previously mentioned quality sorts of versatilities was created
by Iyengar, N.S., in 1960. With an expansion in pay in a measured way, purchasers' interest
for better food increments too. Iyengar determines the quality elasticity measure by using the
price that various groups pay for the same food grains as a quality measure.

Ghatge, M.B., and Rao, R.V.S. assert that "change presupposes trend in operation technique
and organization." Marketing is susceptible to change at the most insignificant shift in
circumstances due to its central role in satisfying human desires. The weakness of our
horticultural creation was low for however long it was independent. This change constrained
Indian ranchers to contend on worldwide business sectors. The authors add that, despite the
fact that there have been some changes, there is still a gap in agricultural marketing despite
economic shifts.

(a) Farmers are now gradually realizing that they can increase their share of the rupee paid by
customers by taking over some of the tasks performed by middlemen.

b) The terms of the contract between buyers and sellers have been altered. For specific wares,
concurred together upon standard agreement terms that integrate F.A.Q. guidelines have been

20
created. The way goods are produced has changed to be of higher quality as a result of the
standardization of contract terms and their implementation.

c) In terms of the physical movement of goods, it has been observed that goods move more
frequently by road than by rail.

d) Firm sales are gradually replacing consignment sales in terms of sales. This is because
products are now of a higher standard of quality.

e) Fruits and vegetables are now stored differently.

(f) Changes have been made to the distribution of news.

g) The promoting finance has changed to incline toward non-credit cooperatives.

(h) Cost and cost spread changes achieved by authoritative construction, institutional
development, and functional techniques.

(I) The public authority and cooperatives' parts in promoting have developed.

j) Changes in the advertising associations, monetary foundations, ware trades, and different
establishments.

General Findings of the Review of Literature:

The appropriate policies of the government are required for agricultural marketing reform.
The rural showcasing framework can't turn out to be more effective with prohibitive
exchange arrangements. At the global, public, and state levels, changes in farming creation
and promoting are being provoked by shifts in the example of food utilization. Horticulture
can develop all the more actually with the right offices and promoting foundation as well as
institutional help. Reform measures hinder India's agricultural expansion due to a lack of
appropriate policy initiatives and infrastructure. India has put a lot of emphasis over the years
on marketing in regulated markets with the intention of improving the agricultural marketing
system in primary markets. This is additionally obvious in the territory of Karnataka. The
shifting circumstances call for the formulation of an appropriate policy to reenergize
Karnataka's regulated markets and provide trading opportunities outside of regulated markets.
This will help farmers get a larger share of the rupee paid by customers and make the
agricultural marketing system more effective. The quantity of commodities sold through

21
regulated markets is ultimately a major indicator of its performance, despite the fact that a
variety of factors influence its performance. The supposition that will be that there will be an
expansion in the quantity of individuals entering the managed markets because of changes.
On the other hand, if reforms are taking place outside of regulated markets, the number of
commodities sold outside of those markets may increase. As a consequence of this, it is
necessary to investigate the possibility of alterations in marketing practices brought about by
reforms. Additionally, the production pattern of reforms may alter the marketing pattern. As a
result, it is necessary to investigate whether or not the pattern of cropping and production has
changed, as well as how this change has affected how regulated markets perform in terms of
arrivals. This subject must be fully comprehended 25 before suggesting the appropriate
marketing policies needed to alter the agricultural marketing system.

Hole in Exploration and Issue Explanation:

Numerous studies have been conducted on a variety of topics, including the function of
regulated markets, market structure, conduct, and performance, commodity marketing, the
effect of reforms on agricultural production, and shifts in agricultural trade. at a global level.
Be that as it may, there has been no far reaching assessment of the example of movements in
horticultural ware promoting at the essential level in contrast with directed markets,
contrasting their exhibition earlier with and following change. As a consequence of this, the
objective of this study is to ascertain whether there has been a shift in the microlevel
marketing of agricultural products so that appropriate suggestions for improvement in policy
can be made. The ongoing arrangements and projects executed by legislatures may not be
proper considering the moving examples of editing, creation, and showcasing, as well as
utilization. In this regard, the policies implemented by the government sector to establish and
expand organized markets at the primary market level need to be reviewed, and the
government's priorities might need to be rescheduled. There may be a void that under- or
over-utilizes productive resources and discourages agricultural productive activity if the
altered pattern of agricultural commodity production is not accompanied by an appropriate
marketing arrangement for the commodity in question.

Agriculture requires a marketing strategy:

The majority of people believe that the laissez-faire policy is a system that improves the
efficiency of free market operations. Nonetheless, experience has shown that this isn't
generally the situation. If the conditions of a perfect market are not met, government

22
intervention becomes necessary. This is especially true when it comes to agricultural trade,
which is significantly skewed by inherent flaws. Moreover, on the grounds that farming items
are vital for day to day existence, an absence of supply or creation could adversely affect
individuals' everyday environments. If market forces are allowed to interact, it is obvious that
product price fluctuations are significantly larger than output fluctuations if the fundamental
characteristics of the agricultural production process and the nature of farm product demand
are taken into account. The standard of living of farmers and consumers is impacted by the
price of farm products.2.1 In nations like India, where the majority of people depend on
agriculture for their livelihood, a lack of agricultural production will harm the economy as a
whole. Governments are now responsible for safeguarding farmers' interests by paying fair
prices for their produce and protecting consumers' interests by making food grain and other
commodities accessible to them at reasonable prices. Only prompt government intervention
through appropriate programs and policies can mitigate this problem. Thus, rural showcasing
projects and approaches are expected to: - - Set a reasonable price for the farmer's produce to
encourage him to produce more. -- Give people access to food security -- Watch out for the
trading, development, stock, import and product, and different exercises. - - Export,
marketing, packaging, quality improvement, and processing should all be encouraged. --
Provide facilities for trade, market data, marketing extension, education, training, and
research, marketing finance, lowering marketing risks, and other activities related to
marketing. -- Lay out establishments to empower rural item creation, exchange, and
dispersion. - - Establish guidelines for market procedures and practices to, among other
things, maintain trade organization. A policy or program may not always solve a problem
once it is created. Alterations in time or location may result in new problems. Subsequently,
arrangements and projects should be changed in accordance with meet the circumstance's
necessities. Another arrangement should be created at whatever point the bygone one
becomes insufficient or excess. Positive change agents sometimes emerge from policies.

Approaches for Rural Advertising in A few Nations:

As agricultural marketing policies evolved over time, there was no exclusivity. However,
they have been incorporated into the production policy for agricultural products. Because of
the development and meaning of agrarian exchange, autonomous horticultural advertising
strategies have as of late been endeavoured. However, these marketing policies must conform
to the agricultural production policy in order to be practical and effective. 47 The mention of
England's agricultural past suggests that the government interfered with the agricultural

23
marketing system as early as the 17th and 18th centuries. Both the central and local
governments maintained some interest in agricultural marketing by enforcing fair rules and
middlemen's duties. While regulated markets remained the official focus of trade, fairs
remained significant as livestock markets. The purpose of the laws that were in place at the
end of the 17th century and the beginning of the 18th century was to prevent retail fraud and
abuse as well as the packaging and marketing of products like butter, leather, and fruit.
Additional policy measures that were implemented in England during this time included the
establishment of quarantine arrangements in livestock markets, the prohibition of domestic
tobacco cultivation, and the granting of grain export bounties. Adam Smith was interested in
the extent of government intervention during the latter half of the 18th century through
bounties, navigation laws, export prohibitions, and other similar measures.2.2 It is important
to mention a number of agricultural marketing-related laws that were enacted in Great Britain
in the 20th century. In 1921, cost ensures were made conceivable by the Demonstrations of
1917 and 1920's cancelation of monetary arrangements. The Farming Produce (Evaluating
and Advertising) Demonstration of 1928 advanced normalization and reviewing of rural
items. Ranchers were given dealing power in light of the fact that the Rural Advertising
Demonstration of 1931 upheld agreeable showcasing and denied untouchables from joining
the helpful unit. Amount limitations and obligations on brings into the nation were forced by
the Import Obligations Demonstration of 1932. The 1933 Agricultural Marketing Act laid out
strategies to foster and implement cooperation. During the 1930s, the public authority quit
playing the inactive eyewitness job of free enterprise and begun doing whatever it may take
to urge ranchers to sort out all alone. At the point when makers neglected to consent, the
public authority made a move by declaring security, laying out a rearrangement commission,
a product commission, and different measures. On the eve of the Second World War, 17
producer boards or bodies were established to promote the production and marketing of a
variety of products, including hops, potatoes, pigs and bacon, milk, wheat, sugar, and so on.
The 1947 Agriculture Act provided guaranteed prices and assured markets. After the 1950s,
the Promoting Sheets got extra help.

The Normal Items Promoting Act, which empowers ware sheets to be laid out, manages
various horticultural products in English Columbia. The common legislature of English
Columbia has completed various drives related to the English Columbia Ranch Industry
Audit Board to propel sound board administration and independent direction, with the all-
encompassing objective of helping these enterprises' in general financial exhibition. The

24
intention of the Ministry of Agriculture, Food, and Fisheries' publication of the Regulated
Marketing Economic Policy in July 2004 was to provide clear policy guidance to further
enhance the economic growth, development, and long-term viability of these significant
agricultural sectors. In 2005, the Ministry announced a policy framework for the
establishment of specialty markets within supply managed agriculture sectors. There were a
number of state and federal government programs to (1) regulate the business structure and
practices of processors and handlers of farm products, according to the literature on
agricultural marketing in the United States; ( 2) authorize and support farmer cooperatives,
through which farmers hope to obtain cheaper inputs or sell their products at a higher profit;
furthermore (3) increment ranch costs and earnings through different promoting and creation
control programs.2.3 The horticultural issue was one of cost flimsiness during the 1920s and
mid-1930s. At the end of the 1930s, the price stabilizing program was replaced by the price
supporting program. The Commodity Credit Corporation was established in 1933 to provide
credit against pledges of produce and undertake storage activities in order to prevent price
fluctuations throughout the year. Farmers had a choice between two programs in 1958: I) the
current program, which has a lot of supports but only a limited amount of land, or ii) a
program with fewer supports but no limits on land.

Marketing quotas and input restrictions are two methods by which the United States
Department of Agriculture can restrict output directly and indirectly. Some of the programs
that the government of the United States of America took to promote agricultural products
included the direct payment of farmers who produced wool in 1963, efforts to increase
foreign demand for goods by selling goods on international markets at prices lower than
domestic prices and paying farmers at domestic prices, and a farmer adjustment program that
encouraged farmers who wanted to work in cities.

In Latin America, the foundation of state channels for the controlled acquirement,
stockpiling, and conveyance of essential grains, cost help for specific products, the
underlying control and ensuing progression of the espresso and grain advertises, the offer of
stockpiling focuses worked by the IRA (Instituto Regulador de Abastecimientos in El
Salvador) and INCAFE (Instituto Nacional del Cafe), and other comparative practices. are a
few examples of agricultural marketing programs run by the government.2.4 From 1979 to
1987, state intervention dominated and shaped agricultural markets in Nicaragua, particularly
those for grains and traditional exports like cotton and coffee. Since 1988, the process of

25
institutional change has been dominated by the state's withdrawal from multiple social and
economic spheres.

In some of the Central Asian states, which were once part of the Soviet Union, the
privatization and market liberalization processes, as well as the agrarian transition, were
made possible by the government's efforts.

There have been occurrences of a state syndication on rural exchange, for example, in
Romania, which was subsequently destroyed and supplanted by a blended economy in which
both the confidential area and the state participated in farming showcasing related exercises.
This is the situation in Russia, where marketing channels significantly increased immediately
following the implementation of liberalization policies.

Exchange freedom and the abrogation of agrarian product sheets, which recently held
restraining infrastructure command over commodities and promoting of produce, are two
ongoing horticultural cordial approaches carried out by the Nigerian government. Similar
types of changes were also acquired in other African nations with the intention of reducing or
eliminating bends in the horticulture sector.

Policies for India's agricultural marketing:

Using the time period as the basis, it is possible to examine India's agricultural marketing
policies. They exist; Approaches before autonomy, strategies after freedom and up until the
centre of the 1960s, arrangements after the centre of the 1960s and up until the start of
financial changes in 1990 and 1991, and approaches after changes started up until the current
day.

Policies before Independence:

Prior to the turn of the twentieth century, the majority of the nation was self-sufficient.
During British rule, agricultural production increased and communication improved, resulting
in surpluses. Village bazaars and fairs emerged as significant trading hubs for agricultural
goods. Despite the fact that they were the ones who were harmed, farming makers were
avoided with regards to the dynamic cycle, and each market was allowed to begin and foster
its own exchange rehearses. Ranchers and the proprietors of the land where markets were laid
out battled about the unhindered foundation of fairs and markets. Thus, the Bombay

26
government sanctioned the Business sectors and Fairs Act in 1862, which specified that the
Region Justice's endorsement was expected before a market could be laid out. The primary
market at Karanja was then administered by the Hyderabad Residency's Structure in 1886 to
manage the stock of cotton to Manchester's material plants. After that, in 1897, a special law
known as the Cotton and Grains Markets Law was enacted in the Berar region, which was
then known as the Hyderabad Assigned District. The British Residency was given the
authority by this law to declare any area in the Assigned District a market for trade and to
appoint a committee to oversee it. The Bombay Cotton Markets Act of 1927 was passed to
protect millers' and traders' interests and regulate the cotton industry in accordance with the
Central Cotton Committee's 1918 recommendations.

The Royal Commission on Agriculture recommended regulating market practices and

establishing regulated markets in its 1928 report to address issues with the sale of agricultural
products in primary markets and protect farmers' interests from being exploited by
middlemen. The Imperial Commission recognized various defects, including non-reception of
standard loads and measures, over the top market charges, double-dealing in the instalment of
offer returns to ranchers, non-cutthroat cost disclosure, and an absence of exchange offices,
among others. In 1931, the Central Banking Enquiry Committee approved this. As an
immediate outcome of this, the Indian government laid out the Directorate of Showcasing and
Review (DMI), previously known as the Workplace of the Horticultural Promoting
Consultant (Focal Showcasing Division). This encouraged agricultural marketing legislation
to be passed by states and provinces, which led to the establishment of regulated markets all
over the country. Hyderabad's Agricultural Markets Act of 1930; the 1932 Demonstration
Concerning the Focal Areas Cotton Markets; The 1933 Demonstration Concerning Madras
Business Harvests Markets; The Agricultural Produce Markets Acts became directly involved
in the grain trade as a result of the disastrous Bengal Famine of 1943, in which more people
died and suffered as a result of market failures than a lack of food. As a result, the strategy
consisted of maintaining price control and providing the populace with sufficient food grains.
Right after Bengal's starvation in 1943, the government provided its most memorable rural
arrangement proclamation with the objectives of expanding food grain creation, utilizing
more effective strategies for creation, improving showcasing, offering makers better costs,
guaranteeing fair wages for horticultural work, disseminating food genuinely, expanding
unrefined substance creation, and growing examination and schooling. These served as the
foundation for agricultural marketing policies during the first and second five-year plan

27
periods. The government's top priorities prior to independence were maintaining low farm
prices and establishing regulated markets. At this point, there were 432 managed markets in
the country.

Strategies up until the centre of the sixties:

From 1947, when India acquired autonomy, until the centre of the 1960s, the public
authority's strategy was value control to monitor living expenses. Because industrialization
also required cheaper raw materials, the government adopted the same policy. To keep
products from being adjusted, the Avoidance of Food Corruption Demonstration of 1955 was
passed. To direct the dispersion, costs, and supply of fundamental items, the Fundamental
Wares Act was sanctioned in 1955. A policy of importation of food grains was implemented
under P.L.480 of the United States of America, with distribution to intended consumers at a
price lower than the market price. Since independence, the primary objective of the
government's efforts to control 53 prices and other aspects of the food supply has been to
reduce food costs in an effort to contain inflation. Self-sufficiency and immediate elimination
of imports have also been stated as the stated goals of our national food policy. Thusly, in
spite of creation nearly deteriorating for the decade somewhere in the range of 1950 and
1961, ranchers didn't see an expansion in costs.

In 1950, Prof. Dantwala was appointed as the head of an expert committee by the Bombay
government to investigate how the Bombay Agricultural Produce Markets Act of 1939 was
implemented and how producers benefited from it. In 1951, the committee presented its
report. In its report, the committee offered a few suggestions for modifying the Act to make it
better. After that, in 1955, the Government of Bombay appointed Dr. T.G. Sharname as
chairman of a second expert committee to examine the previous Agricultural Produce
Markets Act of 1939 and recommend modifications. The Committee released its report in
1955, which made a few suggestions. The main goal is to regulate all kinds of transactions for
all commodities, strengthen the government's supervision, direction, and support of market
committees, and make them more representative, strong, and alert.

Similar to this, in 1954, an ad hoc committee headed by N.Farid Uddi was set up by the
Government of Hyderabad and recommended a number of changes to the Hyderabad Markets
Act. In 1957, the Madras state appointed an expert committee to examine how the Madras
Commercial Crops Markets Act of 1933 was implemented. W.S. Krishnaswamy Naidu, a
former high court judge, served as its chairman. The council likewise suggested various

28
changes, including rural, agricultural, ranger service, and creature cultivation in the
Demonstration's arrangements. Between 1950 and 1964, 580 additional regulated markets
were established as a result of an acceleration in market regulation.

The development of a scientific warehousing system and the encouragement of cooperative

agricultural product marketing were two additional significant government policies during
this time. As a direct consequence of this, primary marketing co-operative societies, the
National Cooperative Development Corporation, and various state-level co-operative
marketing federations were established during this time period. The Horticultural Produce
(Advancement and Warehousing Enterprise) Demonstration of 1956 likewise settled Focal
and State Warehousing Organizations to deal with logical capacity and proposition ranchers
promise credit offices. The Standard Weights and Measures Act of 1958 established the
Department of Weights and Measures to oversee and control the implementation of standard
weights and measures. Rural god owns, cooperative sugar factories, and other processing
units received a lot of attention during the second five-year plan. An integrated strategy for
market intelligence was launched with the intention of gathering and disseminating market
information.

Policies from the middle of the 1960s to 1990-91:

The government's strategy was to provide consumers with cheap food grains about halfway
through the 1960s. However, farmers' interests began to gain importance as well in order to
increase agricultural production. The green unrest was the result. In 1965, the Commission
for Agricultural Costs and Prices, which is now known as the Agricultural Prices
Commission, was established with the responsibility of providing the Government with
recommendations regarding the most effective price policies. Subsequently, support costs for
different agrarian items are reported to help ranchers. The support price policy was used to
alter the cropping pattern at this time. Along these lines, around the same time, the Food
Organization of India was laid out to deal with the procurement, stockpiling, transportation,
and circulation of food grains at a fair cost to buyers. The motivation behind food
apportioning was to guarantee that the expected shoppers could buy fundamental products at
sensible costs. During this time, the government also started a policy of making buffer stock
to meet unexpected situations. A levy system was put in place to pay farmers, merchants, or
millers for food grains. Food grains were sold to specific customers at prices that were lower

29
than those on the open market and at prices that were offered under levy as part of a dual
pricing system. Zones for the offer of food grains were laid out and development limitations
were carried out.

When the states were reorganized in 1951, existing marketing laws were overturned and new
ones were enacted. During this time, the foundation of managed markets kept on acquiring
significance. The provision of fundamental infrastructure facilities also sped up the expansion
of primary wholesale markets during this time period. For some of the states, assistance from
external sources, like the World Bank, was used to develop the primary wholesale
agricultural markets. By 1990-91, nearly 6752 wholesale markets across the nation were
regulated. The Product (Quality Control and Assessment) Demonstration of 1963, whose
design was to ensure the nature of farming commodities before they were made, put an
accentuation on agrarian item sends out.

During this time, additional developments included: The Meat Food Products Order of 1973
was approved; Cold Storage Order of 1980; the establishment of commodity boards and
corporations like the National Council of State Agricultural Marketing Boards The expert
group that was established in 1981 under the chairmanship of M.S. Swaminathan to
investigate the promotion of farmers' organizations for the purchase and marketing of
perishable commodities recommended that an immediate development of an institutional
framework be developed that will enable production, processing, and marketing of perishable
commodities to be organized in such a way that the interests of both producers and
consumers are well served. Consequently, the National Horticulture Board was established in
1984 and the 56 Agricultural and Processed Food Products Export Development Authority
was established during the 7th plan period.

Policies after the Commencement of Economic Reforms in 1990-91 up to the Present

Day:

From 1991 to 1993, India implemented significant industrial, trade, and exchange rate policy
reforms that sped up economic expansion. The agrarian area has been affected in somewhere
around two critical ways by these macroeconomic changes. Industry deregulation, more open
trade, and devaluation have all contributed to an increase in economic growth and
diversification of food demand. Second, in spite of the way that the changes did exclude
homegrown and line strategies that straightforwardly influence horticulture, lower levels of

30
modern assurance have worked on the homegrown terms of exchange for the area, which has
further developed impetuses for interest in agribusiness. Different arrangement changes in the
rural showcasing area were achieved by these changes, which were trailed by India's
consenting to of the WTO arrangement on January 1, 1995. (a) temporarily lifting restrictions
on the movement, stocking, and licensing of certain commodities. b) most of food handling
ventures will as of now not be expected to have licenses or limitations on plant scales. c) 54
commodities' futures trading restrictions have been lifted. Support prices have taken the place
of announcing procurement prices for cereals. d) Allowing large-scale investments in new
processing capacity for milk and milk products, among other things. e) f) Wiping out the toll
framework for obtaining food grains. g) Public organizations currently purchase items at
market costs through open offering, which assists ranchers with profiting from higher open
market costs. h) Public agencies intervening in the market to assist farmers during potato,
tomato, and other distressed sales Promoting exports and expanding scientific research were
two additional programs that were implemented during this plan period. During the Eighth
Five Year Plan (from 1992 to 1996), plans to maintain food production self-sufficiency and
produce surpluses of certain agricultural commodities for export were the primary focuses of
the agricultural policy. Also, as part of the 8th Five-Year Plan, the Indian government set up
a High Power Committee on Agricultural Marketing in 1992 to look into the current
agricultural marketing system and suggest ways to improve it.

Some of the programs that were started at this time that affect the wholesale marketing of
agricultural goods are as follows: launching the Agmarknet portal for the distribution and
collection of market data; incentive program to construct scientific sheds in rural areas to
provide farmers with a loan facility and encourage scientific storage; plan for enhancing and
expanding the agricultural marketing infrastructure; changes to the Rural Produce Promoting
Acts to empower direct showcasing and contract cultivating, the development of private and
helpful horticultural business sectors, the foundation of ranchers' and shoppers' business
sectors, a public-private organization to give post-collect framework offices, and so on.; the
inclusion of all agricultural goods in future trade; utilizing technology to provide farmers
with market-oriented extension services; scheme to provide venture capital and a project
development facility to agribusiness projects in order to assist producer groups and
organizations in developing economically viable agribusiness projects; transitioning away
from quantitative limitations and bringing down import levies in stages, in addition to other
things

31
Other government drives that were executed during the 10th five-year plan incorporated the
production of provincial business sectors through the Rustic Framework Improvement Asset,
trade advancement, market mediation to shield ranchers' inclinations, and consolation of
private and helpful support in farming advertising advancement. 58 During the 10th five-year
plan period (2002-2007), the agricultural marketing policy emphasized export promotion,
value addition, quality improvement, the provision of market and storage infrastructures,
including cold chains, and encouraging private participation in the development of market
infrastructures.

Policies and programs for agricultural marketing have an effect:

The agricultural marketing system has been improved in some positive ways by agricultural
marketing policies and programs, despite some failures. The policies of Great Britain
contributed to the prevention of fraud and abuse in retail trade as well as the packaging and
marketing of goods like butter, leather, and fruits during the latter part of the 17th century and
the beginning of the 18th. Grain and different products had the option to enter new
commodity markets thanks to more refined market structures, which additionally helped
England's significant distance droving exchanges. The majority of agricultural products were
affected by improved transportation, more active middlemen, and more efficient markets.
Commodity grading and standardization were pushed forward by the Agricultural Produce
(Grading and Marking) Act of 1928. The 1931 Agricultural Marketing Act gave farmers
bargaining power.

The American policy on agricultural marketing assisted farmers in increasing agricultural

exports and production by providing export subsidies and input subsidies.

India has accomplished food independence and food security because of agrarian showcasing
projects and arrangements executed by different legislatures. A variety of previously scarce
goods saw their production rise as a result of the price support programs. As a result of
procurement and buffer stock operation, market prices remained stable. The creation of
commodity marketing boards and corporations facilitated the production and export of
various commodities.

There were 7062 regulated markets in the country in January 2002. In 1999-2000, the overall
surplus-output ratios of various agricultural products reached 64.1%. During the years 1990

32
and 1991, the worth of ranch items dealt with by the advertising framework was Rs. 1069
billion, or generally 64% of the result's absolute worth.

The proof proposes that ranchers' market deals have expanded, that actual misfortunes
during taking care of, stockpiling, and transportation have diminished, that the cost revelation
process is obviously apparent in many business sectors, that market charges have been
supported, and that discount market in reverse and forward linkages have essentially
expanded.

As per the examination of rural promoting strategies and projects, these have consistently
assumed a significant part in expanding horticultural creation and shielding the interests of
ranchers and customers. The regulatory mechanism occasionally contributed to problem
resolution, but it does not last long. In the future, governments will need to alter their policies
in order to liberalize trade and boost growth in the agricultural sector. A particular policy or
program might not always work to solve a problem. Based on the kinds of problems that need
to be solved, the policies and programs will keep changing. At the primary wholesale market
level, India's policies since independence have significantly improved agricultural
production, marketing practices, and facilities. The country's plan to establish regulated
markets has been the subject of long-term attention from governments. However, it is
necessary to determine the relevance of these organizations' activities in the altered contexts
and scenarios. The additional functions of these regulated markets must be defined, and
programs must be initiated in this regard, in the event that these activities are not required.
The contextual investigation examines these and other related viewpoints.

33
RESEARCH METHOLOGY:

Agricultural Marketing Changes in the World

In the wake of encountering slow financial development because of administrative and shut
entryway strategies executed years and years after their freedom, the monetary arrangements
of most of nations on the planet went through huge changes. The World Exchange
Association (WTO) was laid out in 1995, which gave financial changes in numerous
countries extra force. Different new strategy measures were executed in the space of farming
creation and showcasing because of the rural area's abrupt ascent in significance, which had
recently been ignored considering quick financial development. Both the expansion of the
agricultural sector and the economy as a whole have been significantly affected by this.
However, different nations' experiences in this regard vary. Some people found it beneficial
to agricultural expansion, while others found it detrimental to agriculture. In such manner, the
encounters of a couple of countries are examined in the sections that follow.

"Three transforming events occurred in the second half of the twentieth century." The first
was the creation of the European Union and its Common Agricultural Policy (CAP). The
European Community (EC) went from importing 20 million tonnes of grain annually in the
1960s to exporting 20 million tonnes annually by the 1980s thanks to the generous farm
subsidies provided by the CAP. The fall of halfway arranged economies, especially those of
the previous Soviet Association, was the second ground-breaking occasion. At their peak, the
USSR and PRC imported 40-50 million tonnes of grain annually. Grain is now net exported
by these nations. The third pivotal event was the emergence of developing nations as
commercial grain importers. Over 80 million tonnes of grain imports that were stopped by the
other two things have been taken in. Despite the fact that global grain trade has grown
relatively little over the past two decades, these events have significantly altered grain trade
patterns. Basically, the pace of development in food interest in emerging countries decides
the fate of worldwide grain exchange.

‘In the half century that has passed since World War II, the population, per capita income,
and agricultural production have all increased at rates that were previously unheard of. The

34
total populace developed from 2.5 million out of 1950 to around 6 billion in the last part of
the 1990s. At the same time, the production of cereal crops more than tripled. Despite rapid
population growth, the average amount of food available to each person on the planet
increased from less than 2400 calories to more than 2700 calories.

Income growth has altered the global demand for food, particularly in developing nations.
Recent shifts in trade patterns indicate that global food demand is undergoing significant
shifts that are likely to last for some time. Changes happening in both creating and created
countries, especially pay development, are driving these movements. The world's average real
per capita income doubled between 1960 and 1998, increasing most consumers' food
purchasing power.

Throughout the beyond twenty years, a great deal has switched in the synthesis of rural
exchange up the world. Bulk commodities, primarily grains and oilseeds, now account for
less than 26% of global agricultural trade value, down from 41% in 1985. The global
agricultural trade has increased at the same rate as the trade in semi processed bulk
commodities like vegetable oils, meals, and flours—also known as intermediate processed
products. 3.1 Site, 2001; 3.2 Ibid; 3.3 World Agribusiness and Exchange Report, 2001;
processed and geared toward the consumer Meat, beverages, bakery products, snack foods,
and other food items account for an increasing share of global food trade. This represents
35% of global agriculture trade today, up from 18% in 1980. Soon, it will double. Fresh
horticultural products continue to account for a small portion of trade despite technological
advancements that extend shelf life and preserve quality during transportation.

The following table provides a summary of the current trends in the World Agricultural
Trade.

Table 1: The Arrangement of the World Rural Exchange, communicated as rates. Over the
past two decades, the percentage of fresh and semi-processed horticultural products has
almost remained constant, while the percentage of bulk commodities has decreased from 43%
to 26% and the percentage of processed foods has nearly doubled.

When people live in more urban areas, their food preferences change. The effects of
urbanization on diet differ from country to country. For poorer nations, urbanization may

35
initially lead to the substitution of basic rural staples like rice for processed foods and
packaged staple cereals. As per FAO information from the 1970s and 1980s, wheat utilization
expanded fundamentally while coarse grain and rice utilization diminished in metropolitan
China and India. In addition, consumption of wheat slightly increased in rural areas while rice
consumption remained stable. Food spending might increment as livelihoods rise, moving
away from staples like oats made at home and toward additional costly wellsprings of
supplements like meat, fish, and products of the soil.

Grain utilization and creation designs: Worldwide grain creation and utilization designs have
gone through huge movements. World wheat production increased by 1.2% annually over the
past two decades, while coarse grain production increased by 0.9% annually. Grain
production grew at the fastest rate (2.5 percent per year) in developing nations over the
previous two decades in response to shifts in domestic and international policy as well as the
collapse of grain production in Eastern Europe and the former USSR. Then again,
development in the created nations was essentially level because of supply control measures.

"During the past two decades, the developing countries experienced the fastest growth in
grain consumption (2.8 percent annually), similar to production trends." In developing
nations, grain consumption increased by 2.2% annually, compared to 1.7% worldwide,
resulting in an increase of approximately 5 kilograms per person.

The shifting pattern of international trade in rice: With 83% of the world's rice sends out and
85% of the world's rice imports coming from non-industrial countries, these countries are the
principal players in worldwide rice exchange. The concentration is particularly high on the
export side because five nations—Thailand, Vietnam, China, the United States, and India—
provide approximately three-quarters of the trade.

During the 1970s, government-to-government exchanges were assessed to represent under

10% of worldwide exchange, down from about half. However, as low international prices
have compelled governments to play a more active role in trade in order to gain bargaining

36
power or as an indirect means of maintaining producer prices, they have regained some
popularity over the past few years.

Pulses are traded: Except for dry pea, 70% of the significant heartbeats are delivered in
emerging countries. Throughout recent many years, world heartbeat creation developed at a
sluggish pace of 1.3%, to some extent since beat crops are less beneficial than different
harvests. Global pulse trade has increased at a rate of 7% annually since 1980. From 6-7
percent toward the start of the 1980s to roughly 15% right now, exchange beat creation has
expanded. Feed pulses are most popular in the European Union, while food pulses are most
popular in South Asia (primarily in Bangladesh, India, Pakistan, and Sri Lanka).

Oilseeds trade: Worldwide production of oil seeds has increased by more than 3% annually
for the past ten years. Oilseeds like soybean, cottonseed, rapeseed, groundnut, and sunflower
seed are exceptionally significant, however soybean is by a wide margin the most significant.
Created and emerging countries represent 58 and 42% of complete creation, separately.
Global production is led by Asia, particularly China and India, followed closely by North
America and South America. Europe and Africa play a smaller role. Seeds make up about
30% of the oilseeds complex's total trade value, while the shares of the two subproducts—oils
and meals—are 55 and 15 percent, respectively.

Over the past two decades, trade in oilseeds and their products has increased significantly,
largely as a result of global economic expansion. Oilseed product trade grew at an average
annual rate of 4 percent or higher in the 1990s, outpacing that of other industries. The
majority of this growth came from developing countries that imported goods, with Asia
playing a significant role in recent years. A number of importing nations have switched to
purchasing oilseeds in order to encourage domestic processing and value addition. Over the
course of the previous ten years, the amount of oils and fats consumed worldwide increased
by approximately 3.5% annually. Palm oil and soy oil are the most generally utilized oils.
Around 60% of global consumption occurs in developing nations as a result of steady
population growth and rising incomes, particularly in Asia.

37
The Experiences of Countries:

The following paragraphs discuss some nations' experiences with the effects of reforms on
the agricultural sector.

A long time back, the US was the biggest farming exporter, doing about $ 3 billion in deals
each year. Six of its main ten clients were in Western Europe; two more-Japan and Canada-
likewise were created nations; India, which received food aid, and Cuba before Castro were
the only major markets for developing nations. American agricultural exports currently
exceed $50 billion annually. Developing nations make up six of its top ten customers, and
Asia and the South Americas account for three-quarters of U.S. agricultural exports. 3.7
'Current U.S. ranch and rural exchange strategies depend on the flawed supposition that
American ranchers can contend in a worldwide unregulated economy. In point of fact,
American farmers are no longer competitive on a global scale. In other major agricultural
regions of the world, labour and land costs are significantly lower and likely will remain so.
The capital and production technology of agribusiness corporations are moving to those
regions. America's food security may be in jeopardy due to the combination of global free
trade policies and current farm policies. Fortunately, a new farming philosophy is developing
as a response to the growing economic, ecological, and social issues brought on by the
industrial agricultural paradigm. "The new American farm" is being created by thousands of
farmers who claim to be organic, holistic, practical, or simply family farmers.

The agricultural exports of the United States have undergone a paradigm shift over the past
two decades. The composition of agricultural exports from the United States has changed
significantly. Bulk exports represented nearly 70% of the value of all agricultural exports
from the United States in 1980, but by 1998, they represented less than 40%.

The formation of essential units of co-usable creation from the previous State ranches in
1993 and the launch of Farming Business sectors (Mercados Agropecuarios or Mama) in
1994 were critical stages in a course of change and change for the rural area in Cuba. Despite
the fact that food costs in the MAs remain high in comparison to general income levels, these
markets have played an important role in feeding the Cuban population because they supply
approximately one third of the country's calorie requirements. Thus, the Cuban government's
decision to open the MAs appears to be yet another successful and possibly even pivotal
policy shift.

38
According to the analysis of various policies and their effects on Kenya's agricultural sector,
a bipolar division of policies between full government control and free markets can hinder
agricultural development. During the period of controls, the public authority's mastery of
creation and promoting exercises smothered the improvement of the confidential area and its
failure to ceaselessly uphold farming exercises monetarily and in fact prompted a decrease in
rural development and advancement overall. However, there was a lack of harmony and
coordination in the implementation process when the government began to offload
agricultural activities to the private sector, allowing the free market to guide agricultural
production and marketing. Because of this, the agricultural sector's growth and development
were slowed down due to the inadequate capacity of the private sector to carry out the tasks.

Government conceded much more motivations to the modern and business areas, than to the
farming area. This brought about a crumbling of the terms of exchange against the rural area
and made speculation horticultural area less productive than in different areas of the
economy. The creator says that the principal strategy concern, which should be taken a
gander at for economical farming turn of events, ought to zero in on

, -Improving the functions of the unregulated economy by eliminating all immediate and
aberrant controls and impedance underway and showcasing of rural items.

-appropriate institutions and legal framework -infrastructure

An investigation of rural showcasing changes in Malawi shows that during the 1980s, by
decreasing the manure sponsorship, advancing products crop creation and dismissing the
fundamental food item makers' government assistance in Malawi declined. ' The example is
that sequencing is particularly significant for low-pay nations, where the poor typically
shoulder the majority of the short run expenses of change. … Except if cost change is joined
additionally by change in the institutional design of the farming area, for example, change in
property privileges over land, lawful change, advancement of market organizations, prepared
admittance to credit, ideal conveyance of data sources, reception of suitable innovation and
develop of sufficient framework, then, at that point, market change won't find success.'

‘Comparative results from counter-factual simulations based on the Zimbabwe CGE model
show that fiscal policy and sectoral reforms improve income equity among the five household
groups, while trade policy reform is more effective at promoting overall economic growth.
The central role that agriculture plays in achieving equitable growth in Zimbabwe is
demonstrated by the significant improvements in aggregate household income and its

39
distribution, which are also accompanied by substantial increases in agricultural GDP.
Finally, the findings suggest that trade policy reform combined with other complementary
policy measures is more effective than the land reform schemes specified in the model
simulations.

The freedom of traders to operate freely on the market in Mali, improved market information,
strengthened market infrastructure, and traders' investments in transport and storage all
contributed to a significant increase in the integration of coarse grain markets. Proof
additionally recommends that Malian business sectors turned out to be more incorporated
provincially and universally. … The greater integration of the regional market has opened up
lucrative new market opportunities for grain producers and traders in Mali and resulted in a
more efficient transmission of production incentives to farmers in the form of prices.

‘New Zealand's experience is that general economic reforms in 1990 and 1991 reduced
interest rates and the CPI, restoring earlier terms of exchange for farmers. Farmers have been
more susceptible to the whims of commodity markets since the agricultural policy reforms of
1984, which had previously attempted to shield them from these fluctuations. Since
deregulation, farm exports' composition has changed significantly, but export earnings have
remained stable as a result of changes in farm output. From 1988 to 1995 the volume record
of all commodities rose 39% however it has evened out off since. While the volume of sheep,
meat, and wool exports has decreased, exports of cheese, whole milk powder, and apples
have increased by more than 50%. The author comes to the conclusion that environmental
issues, product and factor markets, international trade negotiations, and environmental issues
can all benefit national welfare.

The Australian experience can be summarized as follows: Farming has, in any case, filled
essentially behind other major financial areas in accomplishing these additions from
exchange. … Simply put, major developed nations must practice what they preach in other
sectors in agriculture.

Asian nations additionally saw changes underway of rural products in the last three or forty
years and had the option to accomplish financial development in spite of higher pace of
development in populace. ' During the beyond twenty years, Asia has delighted in significant
additions in food creation and genuine salaries. From 1979 to 1999, food production outpaced
population growth by 43.1%, allowing absolute gains in cereal production and calorie
consumption per capita.

40
The typical yearly development in rice creation, the significant food staple in a lot of Asia,
considerably surpassed populace development during the 1980s however was not as much as
populace development during the 1990s. Development in complete grain creation surpassed
populace development in the twenty years. Net imports as a share of production decreased
from an average of 10.9 percent between 1988 and 1990 to only 8.9 percent between 1998
and 2000 due to this growth in cereal production outpacing total cereal demand. Furthermore,
from 8.7 million tonnes in 1988-1990 to 19 million tonnes in 1998-2000, Asia's rice exports
more than doubled. In general across Asia, per capita calories utilization expanded decisively,
from a normal of 2269 calories for every individual each day in 1978-80 to 2710 out of 1998-
2000.'

"The liberalization of the markets for agricultural inputs and rice trade helped Bangladesh
increase domestic cereal production and reduce supply variability." Between 1978 and 1990,
markets for modern agricultural inputs were gradually liberalized under the pressure of
foreign donors and the realization that a variety of direct interventions were in the long run
neither financially viable nor productive. The Bangladesh Agricultural Development
Corporation's role in marketing and distributing fertilizer, irrigation equipment, power tillers,
pesticides, and seeds was significantly diminished as a result of these reforms.

In the late 1990s, a significant increase in tube well irrigation and winter rice cultivation
occurred simultaneously with the liberalization and privatization of input markets.
Bangladesh successfully used private sector trade to stabilize rice and wheat prices following
significant production shortfalls following broad trade liberalization in the 1990s, reducing
the need for substantial government stocks.

'For quite a long time, Philippine horticulture has not exclusively been exposed to the 'fancies
of climate' yet additionally turned into an accidental survivor of the World Bank International
Money related Asset's underlying change programs which recommended private cooperation,
liberation and progression called for decreased government mediation in the economy which
implied less endowments for the as of now support starved rural workers and little ranchers
and less government spending for the arrangement of useful assets, agrarian change
innovative work, credit conveyance and arrangement of farming help administrations. On the
one hand, liberalization required the opening of the domestic farm economy to ensure a
steady increase in cheaper imports, which directly threatened the farmers' economic security
and viability.

41
A new era in Philippine agriculture began in the 1990s. However, this was only for a short
time because the government had to remove quantitative restrictions when it signed the WTO
agreement in 1996. Accordingly the deregulation drove once more to additional decrease in
agrarian creation. ' Among the bunch purposes behind this decline are wasteful ranches,
somewhat pitiful significance for agribusiness, meagre or low amounts of input, lack of
education, failure to adapt to present day innovation, drowsy pace of variable gathering, pay
disparity, slanted conveyance, the unreliability of program implementers, slow speed of
agrarian execution and deficient arrangement of help administrations.'

The introduction of a new foreign investment policy, extensive trade liberalization, and
exchange rate devaluation in 1977 marked the beginning of Sri Lanka's major economic
reforms. Independence in rice was almost accomplished in 1985 with just three percent of
utilization getting from imports that year.'

In Indonesia, macro-instability resulted in a brief reversal of long-standing policies that

encouraged private food trade. This eventually led to the liberalization of private imports and
the establishment of a food subsidy with a nationwide focus. From the late 1960s until 1997,
Indonesia made significant progress toward increasing food security, stabilizing food prices,
reducing poverty, and increasing domestic food production. Improvements in agricultural
productivity and structural trade and investment reforms that led to a shift from labour-
intensive inward-oriented activities to capital-intensive outward-oriented activities are two of
the factors that contributed to Indonesia's economy's rapid economic development. There has
been a shift in the way the government participates in production, marketing, inputs, and
support services. Concerning supplies, the public authority has bit by bit presented more
contest in showcasing and conveyance of creation inputs. Private manufacturing and
marketing of some farm equipment has been made easier.

"Liberalization of Vietnamese agriculture began with the introduction of the contract system
in 1981. Under this system, cooperatives contracted farm households to produce a
predetermined amount of crops on their own plots, with the option to sell any surplus on the
open market. Farm households were recognized as the fundamental unit of agricultural
production in 1988 as part of the doi moi (renovation) policy, which was first announced in
1986. Farmers were also permitted to purchase, own, and sell agricultural inputs, as well as to
sell 40% of production produced under contracts on co-operative-owned land. After a year,

42
the Public authority finished obligatory acquisition of homestead items and confidential
brokers were permitted to buy straightforwardly from ranchers.'

'Rice creation grew 57% during 1985-95 and per capita food creation expanded by 21% over
a similar period. Viet Nam began exporting rice in 1989 as a result of rice surpluses and a
significant currency depreciation in 1989. Viet Nam had overtaken Thailand as the world's
largest rice exporter by 1997. Exchange progression helped increment genuine salaries of
ranchers. According to the study, if internal marketing restrictions were also lifted, the rice
export quota would result in a 14-22% increase in domestic rice prices. However, farmers and
consumers would benefit from a net gain of $200 million, with three quarters of this gain
coming from a transfer from state-owned businesses to individuals.

"Increases in domestic food production have increased the availability of food at the national
level across many countries in Asia," regardless of whether liberalized trade regimes played a
significant role. Through more dependable import opportunities during years of domestic
production shortfalls, deeper global markets for rice and other grains, the availability of
foreign exchange from increased export earnings, and trade liberalization have also
contributed to the stabilization of the availability of food. Thus accessibility of food at public
level is as of now not a limiting requirement for food security in many nations in many years.'

The strategies of monetary progression and globalization and the foundation of World
Exchange Association have a blended reaction on the horticultural creation and exchange
numerous nations of the world. A few studies indicate that the new policies have benefited
Cuba, Zimbabwe, Mali, New Zealand, Bangladesh, Sri Lanka, Indonesia, and Vietnam,
whereas the liberalized policies have not benefited the United States, Australia, Kenya,
Malawi, or the Philippines. The substantial support given to this sector over the years could
account for the negative effects of liberalization on agricultural production and trade in
advanced nations, which could be properly managed by these nations due to their economic
strength and fewer people relying on agriculture. However, this is not the case in developing
nations, where farming is the primary occupation of the majority of people. As a result, many
governments continue to see the need for public interventions to deal with the risk of
variations in availability, chronic poverty, and food insecurity in households. According to a
paper, "3.27The existing distortions in agriculture suggest that there is an urgent need to find
an appropriate way to increase market access primarily from the perspective of developing
countries," Horticulture is of basic significance for agricultural nations; About 25% of the

43
country's GDP comes from it; nearly 30% of these nations' exports, and it employs 60% of
their total population. Concentrates on show that changing exchange farming would deliver
around 66% of the additions from full worldwide progression of all product exchange. Global
welfare gains of $400-900 billion will be realized by removing all barriers; agricultural
liberalization will benefit developing nations by up to 70%. Developing nations stand to gain
between $230 and $630 billion as a result of agricultural liberalization.

The aforementioned observations support the hypotheses: 1. that agricultural marketing

patterns change as a result of reforms.

Agricultural Marketing Changes in India:

India experienced numerous famines, droughts, and food shortages prior to independence.
India's food insecurity problem persisted throughout its independence and into the 1970s due
to a lack of food production. India was occasionally dependent on international food aid due
to the fact that its population grew at a faster rate than its grain production. One of India's
most critical drought years was 1966–67, when 11 million tons of food grains were imported.

A ferocious "grow more food" campaign was launched, and the goal of economic planning
shifted to becoming self-sufficient due to the realization of the disastrous effects of the
growing disparities between the rates of population growth and food production. Significance
was given under the Long term Plans for rural advancement with higher portions for water
system, agrarian exploration, augmentation, and so on. The presentation of high yielding
assortments of seeds, arrangement of substance manures, utilization of pesticides and
presentation of new innovation in farming carried higher efficiency and prompted the Green
Upset during late 1960s which was gone on for the following twenty years. The green upset
began at first with wheat spread to different wares like, rice, cotton, sugarcane, millets and
oilseeds. Self-sufficiency in agricultural production was achieved as a result of the famine
avoidance strategy.

Since the late 1960s, food production has generally grown at a faster rate than population
growth. This was essentially because of the approach of green upset in farming during this
period. The amount of food available to each individual rose from 157 kilograms per year in
1955 to 177 kilograms per year in 1995, despite the population's continued expansion. From
42 million tonnes in 1950-51 to 198 million tonnes in 1996-97, food production has roughly

44
quadrupled since independence. Simultaneously the populace expanded from 300 million to
900 million. As a result of maintaining a sufficient buffer stock of food grains, particularly
wheat and rice, in the late 1970s, India was able to avoid famine deaths thereafter thanks to a
sound food management system. Farming result development enlisted a sharp expansion in
the prompt post upset stage generally because of a development in yields. Be that as it may,
the development design has not been uniform with a propensity towards deceleration during
the 1990s, which is uncovered from the accompanying table. The nation abruptly began
encountering stagnation in rural development during 1980s. This is because of a variety of
factors, including price drops, drought, holdings fragmentation, and so on. Even though some
structural changes were made to agricultural planning following the beginning of economic
reforms in 1991, this trend continued almost throughout the 1990s.

45
CONCLUSION:

Profile of the State: The development of biotechnology and information technology is

making the Karnataka state, which is in the southern part of India, more globally significant.
The absolute topographical region of the state is 1,91,791 square kilometres. There are 27
regions in the state and within these locales a sum of 175 taluks structures the regulatory units
at the block level. The state has 25,683 inhabited villages, 5659 gram panchayats, and 254
towns.

The absolute populace of the state is 5,28,50,562 according to 2001 evaluation out of which
around 50.89 percent are male and around 49.11 percent are female. Absolute metropolitan
populace is around 34% and country populace is 66%. The proficiency rate is 67.04 percent
for the state all in all and it is 76.29 percent among guys and 57.45 percent among females.

Ordinary precipitation in the state is 1139 milli meters for each annum. The economy of
Karnataka state is primarily agricultural, and nearly 65% of the population depends on it for
their livelihood. From the total amount of Rs. 1,05,398 crores of the country's gross domestic
product at factor cost, or nearly 25.3%, or Rs. Agriculture contributes 26,678 crores. 2000-
01).

The absolute commitment of essential area to GSDP is Rs. 29,482 crores, i.e., 27.97 percent.
The secondary sector contributes 25.07 percent, while the manufacturing sector contributes
16.3%. The tertiary sector makes up 46.96 percent of GSDP. The GSDP per person was Rs.
8706 in the years 1993-94, which grew to Rs. 17,847 from 2000 to 2001. The appropriation
of land possessions is this way: There are 41.94 percent of marginal farmers, who own less
than one hectare and hold 10.31 percent of the land; 27.44% of the population are small
farmers with less than one hectare of land, holding 20.48 percent of the land; semi-medium
ranchers claiming 2-4 hectares of land comprise of 19.36 percent, having 27.24 percent of
land; medium ranchers claiming 4-10 hectares of land comprise of 9.56 percent and they have
28.82 percent of the area and enormous ranchers holding in excess of 10 hectares comprise of

46
1.70 percent of absolute ranchers and they have 13.15 percent of the complete developed
region. In Karnataka, rice, jowar, ragi, bajra, tur, horse gram, and green gram are the primary
food grains produced. Groundnut, sesamum, safflower, and sunflower are the most important
oilseeds. Mango, grapes, pomegranate, and banana are the major fruits. Onion, potato,
tomato, brinjal, and beans are the most commonly grown vegetables. Dry chillies, coriander,
and pepper are three of the most important crops for spices. Arecanut and coconut are two of
the state's most important plantation crops. Cotton and sugarcane are two additional major
crops. The typical development pace of food grain creation in Karnataka uncovers that it was
essentially stale during 1980-81 to1984-85, while it was 1.94 percent during1985-86 to 1989-
90. Karnataka's presentation in agribusiness during the period 1980-90 has not been
empowering. For the majority of crops, productivity increases have been the exception rather
than the norm. Productivity did not increase with the spread of irrigation or the use of
chemical fertilizers. Food production fluctuated greatly, and crop production as a whole did
not follow a consistent pattern.

Agricultural Marketing Practice in Karnataka:

Promoting of farming products in Karnataka is primarily through the confidential area.

However, the marketing efforts are also being carried out by a few cooperative marketing
organizations. In order to safeguard farmers' interests, the state government occasionally
intervenes in the system through marketing intervention efforts.

Marketing Channels:

There are four broad categories of agricultural commodity marketing channels:

1. Directly to Customers From Private

2. Wholesalers to Retailers in Step
3. Three through cooperatives or public agencies and
4. By means of Processors

47
Marketable Surplus:

The assessed surplus that is attractive differs from one rancher to another, ware to product,
and area to area. It ranges from fifty percent to eighty-five percent of the production when
significant food grains are present. For oilseeds, it ranges from 85 to 99 percent. The
proportion of plantation crops ranges from 95 to 100 percent. Vegetables and fruits account
for between 85 and 100 percent. It is close to 100 percent for other crops like cotton,
sugarcane, and others.

Regulated Markets:

The state has 350 sub-market yards and 145 regulated main market yards where agricultural
commodities are traded wholesale. each year, more than Rs. 8000 crores worth of different
rural products including domesticated animals are sold through the managed markets in the
state. About Rs. approximately Rs. 3000 crores worth of food grains 500 crores, or
approximately Rs. 400 crores of spices, or approximately Rs. 1300 crores worth of estate
crops, about Rs. 150 crores of fruits, or approximately Rs. Through the state's regulated
markets, approximately Rs 900 crore in other commodities and 350 crore in vegetables are
traded annually.

The training in the managed market is that the rancher carries his item to the commercial
centre called market yard where the commission age nets and merchants will have their shops
and God owns. The majority of farmers sell through commission agents because they are
primarily in debt to these individuals because they receive advances for production or social
or religious activities. Additionally, there is the practice of selling directly to traders.
Contingent on the technique for deal that is by and by the items are sold either through
delicate, closeout or shared arrangement. In the event that the rancher concurs for the rate
offered, he will take care of business for the commission specialist or the merchant, by and
large, subsequent to getting the record settlement slip and the deal continues from them.

The development of the market infrastructure in excess of Rs. So far, 600 crores have been
spent on basic amenities like a market, shops, godowns, auction platforms, water, sanitation,
and roads. have been given in the state. A total of 237 of the approximately 714 rural markets
have received basic trade facilities.

48
Co-operative marketing:

A Taluk Agricultural Produce Co-operative Marketing Society (TAPCMS) exists in each

state taluk to handle trade on behalf of farmers. There are 186 such social orders in the state.
The Karnataka State Agricultural Co-operative Marketing Federation oversees and directs the
TAPCMS's operations at the state level. Both agricultural products and their inputs are being
sold by these societies. These societies trade agricultural products annually for approximately
Rs. 36 crores. The amount amounts to approximately Rs when input and export trade are
included. 125 billion Arecanut, cotton, fruits and vegetables, oilseeds, sugarcane, and other
commodities have their own distinct commodity marketing societies. which the members use
to sell their products. There are a couple of co-usable handling social orders managing sugar,
cotton and materials, oil extraction, arecanut handling, rice and dal plants and so forth.,
through which the concerned wares are handled and advertised. approximately Rs. Oilseeds
worth 40 crores and approximately Rs. The cooperative sector processes 32 lakh worth of
oilseeds. Almost Rs. 40 crores worth foods grown from the ground are sold through the co-
usable area under government watch. Recently, the National Dairy Development Board, a
cooperative organization, established an integrated wholesale market yard for fruits and
vegetables in Bangalore and began acquiring, purchasing, trading, processing, and storing
these fruits and vegetables.

Storage:

The State Warehousing Company in the state takes up the logical stockpiling of products.
The state's warehouses have a total storage capacity of approximately 6.47 lakh metric
tonnes. The pledge loan is secured by the warehouse's receipt at these facilities. Additionally,
the KSCMF offers storage capacities of approximately 80,000 metric tons. The chilly
storerooms are for the most part given by the confidential area. However, KSCMF is adding a
cold store with a capacity of 2000 metric tons to this facility.

Changes in Arrivals in Selected Karnataka Markets An examination of the changes that have
occurred in the field of agricultural marketing over the past few years can provide us with an
indication of the changes that are taking place in the primary wholesale markets of

49
Karnataka. The state currently has 145 primary wholesale main markets. 47 markets spread
across 22 districts have been chosen for the study because complete data for all 145 markets
in 27 districts are unavailable during the study period. The government selected these 47
markets for development by providing basic infrastructure facilities as part of the World
Bank Project in the 1970s and 1980s. Consequently it is assumed that the examination of
changes in appearances in these 47 example markets will assist us with understanding the
progressions that have occurred in the state overall. The changes in average commodity
arrivals in 47 markets from 1983-1984 to 1986-1987 and 2000-2001 to 2004-2005 are shown
in Table 3 and Charts 1 (a) to 1 (v). According to the analysis, the average change across all
47 markets was found to be positive by 143.13%. 11 of the 47 markets experience negative
growth. The Soundatti market primarily sells cotton. Due to the large number of traders
participating in the Bailhongal market and its more competitive prices, trade has diverted
from this market in recent years. Subsequently the appearances in Soundatti market have
descended and in Bailhongal market have gone up. Kollegal market is essentially paddy
market. Due to outdated paddy processing technology and high processing costs, many rice
mills have closed in recent years, reducing paddy production and market entry. Kadur market
is basically coconut market. Due to a disease known as "fly," coconut production has suffered
recently.

sickness' which goes after the delicate coconut and annihilates. As a result, fewer people are
entering the market. Cotton dominates the markets in Dharwar, Hubli, and Gadag. The
purposes behind decrease in appearances are credited to the expansion in the yields from
cotton to oilseeds as well as products of the soil and that a few amount of cotton and oilseeds
are straightforwardly taken to plants for handling than going through the business sectors.
Additionally, the markets that regulate the fruits and vegetables are rarely used. The village
sales, which are typically not recorded, have increased in the arecanut-dominated Sirsi
market, indicating fewer market arrivals. The arrival statistics for the Mangalore market
indicate a downward trend. This is on the grounds that prior the whole region of South
Kanara (which is presently bifurca ted in to two locale called South Kanara and Udupi) was
constrained by a solitary APMC and hence the appearances in every one of the business
sectors of that area were recorded as appearances of the market. Presently with the production
of numerous APMCs in the area the appearances get conveyed among every one of these
APMCs. Thus the appearances in Mangalore market show a diminishing pattern. Madhugiri

50
market which is mostly groundnut market is seeing diminishing pattern in the appearances in
light of the fact that the creation of groundnut has descended from one perspective and this
being a boundary market to the adjoining territory of Andhra Pradesh, there is redirection in
exchange of groundnut to this state, on the other. The justification for decline in appearances
in Tumkur market is because of broadening of harvests from oilseeds for the most part
groundnut and food grains to that of vegetables.

Arrivals are showing a positive trend in nearly 76% of markets. On the other hand, the kinds
of products sold in these markets vary. In addition to an increase in the arrivals of traditional
crops like food grains and vegetables, potato and onion have also increased in the Bangalore
market, which is primarily a terminal market. However, because there is a separate market for
fruits and vegetables that has been established specifically for the purpose, which did not
exist in the 1980s, the arrivals of fruits and other vegetables are not taken into consideration
when analysing the arrivals. The production and marketing of oilseeds, particularly
soyabeans and 104 vegetables, has shifted from crops like cotton to the markets of the
Belgaum district. In the business sectors of Bellary locale there has been an expansion in the
appearances of food grains mostly paddy because of the development of this yield in a huge
flooded region. In the Bidar district, crop marketing has not changed much. The arrivals at
the markets in the Chamarajanagara district also show little variation. So additionally is the
situation with the business sectors of Chickmagalore and Chitradurga locale. As a major
commodity, pulses are the primary draw for the markets in the Gulbarga districts, and an
increase in their production has led to an increase in visitors. The arrival of vegetables,
primarily green chillies, as well as an increase in production and arrivals of traditional crops
like potato and copra in the latter period contributed to an increase in arrivals at the Hassan
district markets. During the previous periods the majority of the wares were taken to the far
off Bangalore market as opposed to selling at Hassan market. The increased demand for dry
chillies, a traditional commodity, has resulted in an increase in the number of arrivals at the
markets of the Haveri district. This is primarily attributable to the cold storage facilities that
were made available on the market during the latter period. Fruits and vegetables, which were
not grown and sold in such large quantities in earlier times, have contributed to the increased
number of arrivals in the markets of the Kolar district. Due to an increase in production and
the arrival of primarily traditional crops like paddy and pulses, the arrivals at the markets in
the Koppal district have increased in recent times. The Mandya market in Mandya locale

51
uncovers a significant expansion in appearances due to an expansion in the appearances of
jaggery to the market after the improvement of this market. Mysore market in Mysore locale
has not shown huge variety either concerning amount of appearances or regarding expansion
of products. So additionally, the case with Sirsi in North Canara Locale, which is principally
an arecanut market. Markets of Raichur area have kept expanded appearances in the last
period. This is the result, on the one hand, of an increase in paddy production and marketing
and, on the other, of a shift in crops from cotton to oilseeds. 105 showing an increase in
arrivals during the latter period are attributable to the increase in production and marketing of
arecanut in the markets of Shimoga district. Kunigal market in Tumkur region likewise has
shown an expansion in appearances during the last time frame in view of expanded creation
and promoting of groundnut and other customary harvests.

Value, Acreage, Production, and Arrivals: The study of the shift in agricultural marketing is
primarily based on the various marketing-influencing factors. The central point is, the real
estate under development of yields, the amount of creation, the appearances or the amount
sold in the business sectors and the worth of wares sold in the business sectors. As a result,
these factors are analysed for the time period under investigation.

Acreage, Production, Arrivals and Value for the year 1978-79:

The following is a description of the acreage, production, arrivals, and value of various crop
type groups of commodities. During 1978-79 food grains were filled in most noteworthy
region among every one of the harvests i.e., 74.94 lakh hectares followed by oilseeds with
13.29 lakh hectares, different items with 12.19 lakh hectares, manor 2.16 lakh hectares and
products of the soil with 0.56 and 0.54 hectares separately. Between 1978 and 1979, 72.43
million tonnes of food grains, 7.86 million tonnes of oilseeds, 89.35 million tonnes of
plantation, and the remaining 117.57 million tonnes were produced. As per grounds the
creation of flavours, products of the soil were small contrasted with different yields with 0.83
lakh tons, 0.89 lakh tons and 3.97 lakh tons separately, Taking everything into account during
1978-79 every one of the business sectors in the state together got 7.3 lakh lots of food

52
grains, 3.41 lakh lots of oilseeds, 0.53 lakh lots of flavours, 14.69 lakh lots of estate crops,
2.62 lakh lots of organic products, 2.48 lakh lots of vegetables and 4.54 lakh lots of different
items..

Creations and Appearance Investigation:

The amount of goods sold is one of the factors that helps determine a market's size. The
portion of amount that shows up to showcase out of complete creation will assist with
grasping the strength of the market. Higher the 112 rate portion of appearances to creation
more productive is the market to draw in the items as well as the other way around. In order
to comprehend their connection, arrivals to commodity production are analysed. Calculating
the percentage of arrivals to production that are aged is a more effective method of
comprehending this relationship. The following is a year-by-year breakdown of arrivals to
production.

Creation and Appearances Examination for 1978-79:

All of the products under investigation had arrivals to production rates of 12.14 percent
between 1978 and 1979. Fruits had more arrivals than production among the commodity
groups, with about 294%, indicating that a significant quantity of fruits were imported into
the state. Spices accounted for approximately 64% of the production, followed by vegetables
with approximately 62%, oilseeds with approximately 43%, plantation with approximately
16%, food grains with approximately 10%, and other items with approximately 4%.

Spices were imported from other states to meet state demand, as evidenced by the fact that
they accounted for approximately 155% of production in 1989 and 1990, when they had the
highest arrival rate ever recorded. In descending order, the following other commodity
groups' annual percentage of arrivals to production are: oil seeds around 31%, food grains
around 25%, natural products around 24%, manor around 18%, vegetables around 12% and

53
others around 4%. The level of appearances to creation of the relative multitude of wares set
up is around 12%.

Analysis of Production and Arrival for 1999-2000:

For the year 1999-2000 the percent time of appearances to creation of changed item bunches
in plunging request is flavours around 57%, vegetables around 55%, oilseeds around 35%,
manor around 24%, natural products around 14% and others around 1%. The total number of
arrivals of all commodities for the year was approximately 14%.

Analyses of Comparison for Three Periods:

A near examination of the percent of appearances to creation for the three time frames under
study uncovers that in the event of food grains it went up from 10% to 25 percent and
afterward to 34 percent. In the case of oilseeds, it decreased from 43% in the first period to
31% in the second, and it increased once more, reaching 35% in the third period. The percent
appearances to creation of flavours show a wide variety during the twenty-year time frame. In
the years 1978-1979, it was 64%, rose to 155% in the years 1989-1990, and then fell to 57%
in the years 1999-2000. The estate crops didn't show a lot of variety despite the fact that there
was a slight increment during 1999-2000. During the first, second, and third periods,
respectively, arrival rates were 16, 18, and 24%. Again, fruit arrivals to production vary
greatly, reaching 294, 24% in 1978-1979, 14% in 1989-1990, and 14% in 2000-2001,
respectively. The vegetables appearances to creation, which was 62% during 1978-79, boiled
down to 12 percent during 1989-90 and again went up to 55 percent during 1999-2000. The
exhibition of appearances to creation of different products has remained practically same i.e.,
4% for the first and second time frame however boiled down to right around one percent
during the year 1999-2000. The fact that the percentage of arrivals to production of all
commodities did not significantly change over the course of the three-year period, with
figures of 12, 12, and 14, is interesting. This shows that the general size of the market
contrasted with creation in the state has not developed a lot during the two-decade time frame
and the market has neglected to draw in extra amounts of creation to showcase during
concentrate on period.

54
Price, value, and Arrivals Analysis:

The value of a product in dollars is known as its price. Cost of the item is another significant
variable impacting the development of a market. In order to gauge a market's expansion, one
must therefore comprehend price behaviour. The average prices of various commodity types
were calculated in this analysis by dividing the total quantity sold for each commodity type
by its total market value. The year wise investigation of appearances, worth and cost will
assist with understanding the market structure. Subsequently it is made sense of underneath.

Analyses of Ratios:

A study of ratio analysis will be helpful in determining the changes in a market and the
relative importance of various commodity groups. Consequently, the proportion examination
is finished in the accompanying passages. In order to determine which crop type has the
greatest impact on these factors, a year-by-year ratio analysis of the acreage, production,
arrivals, and value of various commodity groups is performed.

Ratio Analysis for the Year 1999-2000:

According to the data for the years 1999-2000, the most cultivated crops are food grains
(65.62 acres), oilseeds (16.97 acres), and other crops (7.87 acres). Others, on the other hand,
made the most contribution to production (55.05), followed by plantation (24.28) and food
grains (14.20). Top level augmentation to appearances during this year was from estate
(41.74) trailed by food grains (34.83) and vegetables (10.32). Food grains contributed the
most to the value of commodities sold in the regulated market (44.82 percent), followed by
plantation (19.90 percent) and other commodities (13.79 percent). 121 The 1999-2000
percentage ratios to acreage, production, arrivals, and value

55
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