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Summer Internship Project ARIAS Society

Market Analysis:
Category & Size:

Market Category Total Market Management


Area (Bigha)
Howly-Barpeta Dist. n Regulated Market 29 District Panchayat
Barpeta-Barpeta Dist. n 10 District Panchayat
Gandhi Maidan-Hojai Dist. s 5 District Panchayat
Bijni- Chirang Dist. n 8 District Panchayat
Doomdomia Bazar –Nagaon Dist. s 35 District Panchayat
Lokhra –Sonitpur Dist. n 16 District Panchayat
Sontoli-Kamrup Rural Dist. s 15 District Panchayat
Tupamari-Kamrup Rural Dist. s 22 District Panchayat
Lokhra –Kamrup Dist. s Rural Haat 10 Municipality
Bar-Dikarai weekly bazar-Sonitpur Dist. 20 P & RD
N
Sonapur-Kamrup Dist. s 14 District Panchayat

Management/Administration:

Regulated markets are governed by Regulated market committee which comprises of 15 Members:

 7 Agriculturists from District Panchayat.


 3 Licensed traders operating in the market.
 1
 1 member nominated by Assam cooperative Apex bank.
 1 member nominated by state government.

Rural Haats:

Project Report Submitted by IIPMB Interns 16-PGDM-ABPM


Summer Internship Project ARIAS Society

Introduction
A detailed cross section analytical study was conducted in selected agricultural markets to understand the
Operational history, Agri. Business contours, critical gaps, latent opportunities to help structure the way-
forward for market developmental strategies in proposed Assam Markets under APART.

The study was piloted in total of eleven Agri-Horti markets out of 75 proposed markets based on purposive
selection. In connection with 16 projected Districts under Project Implementation Plan, 6 Districts are being
covered (i.e. 37%) of the total proposed market. In the intended markets arrival of the commodities are
majorly from a radius of 20 km which acts as a primary centre of origin for the produce. In major of the
markets market functionaries are farmers, More than half of the markets are being run by farmers, the
contribution of middlemen is only 40% who are unlicensed and unregistered which makes the method of
exchange is non transparent. Large proportion of markets being studied deals with less to medium volume
of commodities. In a large proportion of markets approach roads are metalled and maintained properly
which facilitate effective supply chain management.
A majority of the studied markets are in the close proximity of 10 kms from the highway which help in
strong communication networks through roads. 54 % of the total markets are situated on the South Bank
of river Brahmaputra with two markets i.e. Sontoli Regulated Market and Tupamari Market are present
nearby Brahmaputra Valley having fertile land because of flood prone area so production is on higher side.
Majority of markets are present in the close vicinity of the production location that enables supply of local
commodities in bulk into the market. Majority of the market are present in rural area with an exception of
Lokhra Market, Kamrup being present in peri urban area.
Study duration of 11 days was dedicated for primary data collection and market survey which included
Data collection from Market Secretary, Wholesale Buyer and Wholesale seller.
Although the production of the commodities are relatively high due to lack of communication and
transportation farmers are forced to sell the produce to the nearest markets rather than to the better
market for their produce.

Project Report Submitted by IIPMB Interns 16-PGDM-ABPM


Summer Internship Project ARIAS Society

Market Analysis:
Category and Size:
Basically there are two types of Agricultural markets in Assam which are Regulated Market and Rural Haat
out of which 64 % of the total studied markets are Regulated Markets with the ownership of Regulated
Market committee and 36% are Rural Haat with ownership of Panchayat and Rural Development
Department. The average market size is ……….. The highest area is of Doomdomia Market, Nagaon with 35
Bigha and smallest market area is 5 Bigha of Gandhi Maidan Market, Hojai.
Management/Administration:
Regulated markets are governed by Regulated market committee which comprises of 15 Members:

 7 Agriculturists from District Panchayat.


 3 Licensed traders operating in the market.
 1 member elected by the member of Managing Committee or Board of Directors of the Cooperative
Marketing Society.
 1 member nominated by Assam cooperative Apex bank.
 1 member nominated by state government.
 1 member elected by member of the Municipal Board.
 1 member nominated by Warehousing Board.

Rural Haats are governed by Panchayat and Rural Development Department which comprises of Gram
Pradhan, Representative of gram Panchayat, Representative of Self Help Group/ Leader of Village
Federation and Gram Panchayat Officer or Gram Development Officer.

Scale of Operations:

Commodity Peak Cost/Kg Form Grade/Variety Source Channel


Season(Months
)
Vegetables
Cabbage Nov- March 4-10 Fresh No specified Farmers and
grade or middlemen
variety
Chilly Nov-May 10-15 China, Micro, Farmers and
Tepa, middlemen
Namdhari,
Bhoot
jholakia, Bird
eye

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Summer Internship Project ARIAS Society

Brinjal Throughout the 7-20 No specified Farmers


year grade or
variety
Tomato (Nov-March), 7-25 No specified Farmers and
(May-Sept) grade or middlemen
variety
Ridge Gourd April-June 15-20 No specified Farmers
grade or
variety
Potato Throughout the 6-10 Jyoti, Pukhraj Middlemen
year
Cereals
Maize June-Aug 9-12 Dried cobs No specified Farmers
grade or
variety
Fruits
Banana Throughout the 30-60 Fresh Chini champa, Farmers and
year Malbhog middlemen
Oil seed
Mustard Jan-March 25-38 Dried seed A, B Farmers
seeds
Fibre crop
Jute Aug-Oct 20-40 Dried fibre Bottom, C Farmers
bottom, D
bottom,
Mesta

Prevelant Trade/ Business Practices:


In majority of the markets licencing of markets done by the District Panchayat which accounts for 63% of
total markets covered. In most of the cases, market functionaries consist of licensed as well as unlicensed
traders moreover with the absence of entry fee requirement makes the market operation unorganised and
traditional. Licenced traders are allotted defined space for working but the non-licenced traders are not
allotted any definite space for functioning.

Market Infrastructure:

Trading: Out of the covered markets only 45 % of the markets were found to have permanent covered
space for working, other markets were found to have temporary covered space or no space. Bulk of the
trade happens through spot liquidation to buyers. Telephonic price sensitivity is the major marketing tool

Project Report Submitted by IIPMB Interns 16-PGDM-ABPM


Summer Internship Project ARIAS Society

being in practiced in this market. Most of the bulk purchase happens on forward contract basis depending
on the communicated market price. All the commodities in the market are mutually negotiated. In 54% of
the markets weighment is being done by digital weighment machines.

Handling Space: All operations are done manually, there is no technical tool for maintenance of quality and
safety standards in all of the markets. 36% of markets are having handling yard which is used for sorting,
grading, cleaning and packaging activities and however 27% of markets are having auction platform which
are raised RCC platform with protective GI cover and used for handling of the commodities as well as
trading.

Storage Facility: Warehouse and cold rooms play a crucial role in supply chain operations for agricultural
commodities, 27% of markets are having warehouse constructed by Assam State Agricultural Marketing
Board furthermore 9% of studied markets are having cold rooms for storage the perishable commodities.
The capacity utilization is generally full and space availability is lower compared to markets requirement.

Dumping Yard: Cleanliness and hygiene being a key part of market set-up which enhance the ambience of
market for which 18% of the market committees have appointed sweepers and in rest of the markets
waste is being carried out by municipality vehicle. Recycling of waste is not practiced in any of the markets.
There is no security facility present in the market which obstructs.

Basic Amenities: Most of the markets lack basic amenities like toilets and restrooms. Furthermore the
source of drinking water is either tube well or wells. Dedicated Parking facility is rarely seen to be present
in the market areas which hinders smooth vehicular traffic.

Government Interventions:
Most of the markets are under ASAMB which is the responsible monitoring body for different market
operations like licencing, developing, Registration of the traders, Assam State Agricultural Marketing Board
is responsible for setting up of godowns in 36 % of markets, 27 % of the markets is having the facility of
Auction platforms and one market is equipped with cold room (Gandhi Maidan market Hojai).
Commercial Terms and Condition of Trade:
Price of the commodities in the market is determined by demand, supply and seasonal variation. The price
of the commodities are relatively less in peak season due to excess supply of produce in the market.

Project Report Submitted by IIPMB Interns 16-PGDM-ABPM


Summer Internship Project ARIAS Society

Traders decide the selling price of the produce based on localised historical price trend and prevailing price
of the nearby major markets. In few markets credit facility is being provided by traders for a maximum of
30 days.
Non-development Operations:
It was observed that the revenue collected from the market is not utilized for the further development and
maintenance of the market. In Lokhra Market, Kamrup the Khazna collected from the traders are utilized
for celebration of cultural activities like Puja. In Doomdomia market, it was informed by few traders that
few unorganised collection prevailed with in market premises from the traders for provision of basic
amenities (electric power supply and water) still those facilities were not being provided.
Fees:
In 91% of the studied market Khazna is being collected per market day on the basis of 2 criteria’s,
transacted volume and type of commodity and in Hojai market rent is collected from the sellers for covered
space for vending.
Moreover in 18 % of the markets, 1 % of the bought value of the commodity is also collected from buyers.
In 80 % of the markets banking facility for financial transaction is in close proximity to the market.
Opportunities of Discounts and Financial Aids: Discounts are provided to different buyers on the basis of
their frequency of buying the produce.
3. Market Trends:
Demand-Supply Pattern: In 72% of the markets the demand supply pattern is loose that implies the local
production is dumped in the market area irrespective of the demand pattern where as in 18 % of the
markets the pattern is tight means supply is enough to meet the demands of consumers. In Doomdomia
market the pattern is exceptional, here the buyers in the market are more than the sellers and supply is
less than the demand.

Arrival Mechanism:
In most of the cases small pickup and auto is being used as the mode of the transportation as the size of
consignment is relatively small. In 27 % markets tanga and bullock carts are used because of poorly
maintained gravel roads, big trucks can’t be used for transportation
Entry Requirement:
In none of the markets there is any prerequisite for entering the markets and anybody can trade freely in
the market as far as he pays the required fees for trading.
Supply Arrangement:

Project Report Submitted by IIPMB Interns 16-PGDM-ABPM


Summer Internship Project ARIAS Society

The produce is packed in jute or plastic gunny bags after the trade and buyer has to take care of the
transportation. In most of the cases small pickup is used as the mode of transport.
Competition Analysis:
There is heavy competition between the same commodities in the same market. In Doomdomia market the
price of Arunachal Pradesh produce fetch more price and highly demanded than Local Assam produce. In
Sonapur Market the Shillong commodities are having higher price because of quality than the local
produce.
Also there is tough competition among different markets in close vicinity such as traders of Sontoli Market
and Tupamari Market prefer to trade in Barpeta Road Market because the prices of the commodities are
higher in Barpeta than in the same market as it acts as the primary centre of origin so the cost of
procurement is less.

Project Report Submitted by IIPMB Interns 16-PGDM-ABPM


Summer Internship Project ARIAS Society

Observations:
Advantages:-

Project Report Submitted by IIPMB Interns 16-PGDM-ABPM

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