Agricultural Marketing in Kerala DEPARTMENT OF AGRICULTURE KERALA STATE

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Agricultural Marketing in KeralaDEPARTMENT OF AGRICULTURE

KERALA STATE

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Located on the Malabar cost of south- west India at the extreme southern tip of Indian Sub continent Geographical area of 38863 Sq.Km.

Humid equatorial tropic climate.

Coast length of 590KM

Kerala at a Glance

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3 climatically distinct regions

• The eastern high lands with cool mountainous terrain

• The central mid land with rolling hills

• The western coastal plains which is relatively flat and is criss-crossed by a network of interconnected brackish canals, lakes and backwaters.

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Population(2011Census)

• Total Population =333.88 lakhs • Rural Population = 174.56 lakhs • Urban Population =159.32 lakhs • Average density of population = 859 per

Sq.Km. • Nearly half of Kerala’s population are

dependent on agriculture alone for income.

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44 Rivers

• 41 west flowing rivers

• 3 east flowing rivers.

Climate• 120-140 rainy days per year

• Average rainfall of 3107 mm annually

JGT/ADAM/DOA/TVM 6

Area

• Total Geographical Area =3886287 ha.

• Total Cropped Area =2668678 ha.

• Average size per holding = 0.27 ha.

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Major Crops In Kerala(2009-10)

Area in ha.

Production(MT)

Productivity(Kgs/

Ha)

1 Paddy 234013 598339 2557

2 Tapioca 74925 2525384 33705

3Banana and other Plantain 99077 744788 7515

4 Coconut 7786185667

(Million Nuts)7278

Nuts / ha5 Arecanut 99188 116763 11776 Pepper 171489 42459 2487 Rubber 525408 745510 14198 Ginger 5408 28603(Dry) 5288

9 Cardamom 415937800

(Processed) 18810 Tea 36845 57810 156911 Coffee 84796 59250 69912 Cashew 48972 35818 731

Area , Production,Productivity

Crop S.No.

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Other crops

• Vegetables = 43412 Ha

• Nutmeg = 15931 Ha

• Clove = 1206 Ha

• Cinnamon = 321 Ha

• Mango = 63751 Ha

• Jack = 78148 Ha

• Pineapple = 9627 Ha

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Market Scenario

• The APMC Act has not been enacted in Kerala till date.

• Markets in Kerala are only governed by Panchayats/ Municipalities/ Corporations and not regulated by them.

• No adequate infrastructure available in the markets for efficient marketing

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Market Scenario continued

• 348 wholesale assembly markets • 1014 rural primary markets • Rural primary markets are either in the

Private/Co-operative/LSG Sector. • The exploitation of farmers by the middlemen

have been prevented to a great extent and the farmers are equipped for organized direct marketing of farm produce through programmes organized by Department of Agriculture and other allied agencies like VFPCK, Horticorp etc.

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Organizational Set UpDirector of Agriculture

Additional Director of

Agriculture (Marketing)

Deputy Direcrtor of Agriculture(Marketing)

14 Assistant Directors of Agriculture(M)

One each in all 14 districts

14 AGMARK Labs

3 Urban Wholesale Markets & 3 Rural Wholesale Market

secretaries

Assistant Secretaries

Technical Assistant (Marketing)

Additional Directors

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Organizational Setup

1 State Level(Directorate of Agriculture)

Addl Director(M)-1

Deputy Director(M)-1

Technical Assistant(M)-1

2 District Level Asst.Director(M)-14

One in each 14 districts

3 14 Agmark Labs Staff pattern in AGMARK Labs

Chemist(AO)-1

Lab Assistant-1

Class IV Employee-1

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Organizational Setup (continued)

4 Urban Wholesale Markets

Joint Director of Agriculture is the Market Secretary supported by an Assistant Secretary (Assistant Director of Agriculture) and supporting ministerial staff.

5 Rural Wholesale Markets

Deputy Director of Agriculture is Market Secretary supported by an Assistant Secretary (Assistant Director of Agriculture) and supporting ministerial staff.

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Wholesale Markets under

Department of Agriculture • 6 Wholesale Agricultural Markets have

been established with fund from European Union

• Objective:-improve the agricultural marketing in the state and promoting direct marketing by the farmers to avoid exploitation by the middlemen.

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Whole sale markets (Continued)

• 3-Agricultural Urban Wholesale Markets

• Anayara, Thiruvananthapuram

• Maradu, Ernakulam

• Vengeri, Kozhikode

• 3-Agricultural Rural Wholesale Markets

• Nedumangad, Thiruvananthapuram

• Muvattupuzha, Ernakulam

• Sulthanbatheri, Wayanad

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Infrastructure available

• Auction hall • Shops to be rented out to the

farmers & Traders

• Electronic weigh bridge, • Dormitory facilities

• Canteen

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State Government Organizations associated

with Agricultural Marketing • A) Vegetable and Fruit Promotion Council

Keralam• Farmers group in villages • 175-Farmers Markets Managed by Farmers:-

The agricultural produce from the farmers are pooled and auctioned through the Swasraya Vipani (Farmers Markets)

• Farmers Markets ensured remunerative price to Farmers

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State Government Organizations associated with Agricultural Marketing (Continued)

• b) Horticorp (Kerala State Horticultural Products Development Corporation)

• Involved in the procurement and marketing of horticultural products (including honey)

throughout the state • 150 Outlets throughout the state• Mobile sales units in 4 districts (Kollam,

Trivandrum, Kottayam and Ernakulam)

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State Government Organizations associated with Agricultural Marketing (Continued)

• Horticorp(Continued)

• Horticorp participate in the direct auctions being conducted by farmers in the Agricultural Wholesale Markets and procure the commodities which are not purchased by the traders.

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c. Kerafed • Apex co-operative federation under

Government of Kerala formed in 1987 assisted by the European Union, National Co-operative Development Corporation and Government of Kerala

• largest procurer of coconut/copra produced in Kerala.

• Procure copra at MSP rates.• Copra procured is processed and Marketed

as coconut Oil under the brand name “KERA”

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d. Rubbermark (The Kerala State Co-operative Rubber Marketing Federation

Ltd.) • Apex institution of the 38 primary

rubber marketing co-operatives in Kerala.

• Functions with active Participation of Government of Kerala & Rubber Board

• largest supplier of natural rubber and the biggest stockist of all grades of natural rubber in the country

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e. Marketfed

• Marketfed is an apex body for primary marketing co-operative societies in Kerala

• Deals with traditional agricultural commodities like Pepper,dry Ginger,Cardamaom,turmeric,copra,arecanut,Rubber and cashew

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F. Infrastructure facilities

available • cold storage facilitiesA)Markets under Department AUWM-Anayara- cold storage capacity-

15 MTB)RAWM-Muvattupuzha & RAWM- Sulthan

Bathery Cold storage facilty will be established

during current year.

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Cold storage facility available under other institutions

• Air cargo complex Thiruvananthapuram

• State Horticulture Mission & APEDA :-Temperature and humidity controlled storage facility at Angamaly,Ernakulam-storage capacity-25400MT at CIAL,NEDUMBASSERY

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G. Market Intelligence A) AGMARK NET• 92 Agmark net nodes –collect data

and information on important commodities such as minimum, maximum and modal prices of varieties and arrivals in the selected markets and then uploaded to the site AGMARKNET Portal

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Other Market Intelligence Programmes

• Kerala Agricultural University :–Deals with the market intelligence activities of cardamom,pepper and Coconut

• Vegetable and Fruit Promotion Council Keralam:-

Deals with the market intelligence activities of Fruits and Vegetables

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H. Market Intervention Support

for Price Stabilization.Objective • Launch procurement operations through

designated agencies on selected agricultural commodities during harvesting season with a view to guarantee remunerative price to the growers.

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I. Grading and Quality Control

of Agricultural Commodities • 14 State Agmark Grading Laboratories one in

each district. • Assessing quality of farm produce marketed,

fixing grades of commodities and provide “Agmark” certification to processed Agri products

• The main produce being graded in these laboratories are coconut oil, gingelly oil, curry powders, ground spices, honey, ghee etc.

• On an average agricultural produce worth Rs. 15 crores/annum are being graded through these labs.

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 J.OTHER PROGRAMMES 1.Paddy Procurement• The procurement programme of paddy

will assure the farmers a remunerative price of paddy produced.

• Kerala State civil supplies Corporation procures paddy from farmers as per the procurement price announced by Government of Kerala .

• The difference in price between procurement price fixed by Government of Kerala and MSP declared by Government of India is paid by the State Government as subsidy

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Price Difference between MSP & Procurement Price

0

200

400

600

800

1000

1200

1400

1600

2009 2011

MSP

Procurementprice

• 2009 MSP =900/QtlProcurement price =1100/Qtl• 2010 MSP =1000/QtlProcurement price =1200/Qtl• 2011MSP =1000/QtlProcurement price =1300/Qtl2012 MSP =1080/QtlProcurement price =1500/QtlNote:-MSP is declared by G.O.I &

Procurement Price is declared by G.O.K

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2. Copra Procurement

• NAFED central nodal agency of Government of India undertakes procurement through the State Level Designated Agencies – Kerafed and Marketfed.

• Procure Milling copra,Ball Copra and dehusked coconut with water at MSP declared by Government of India.

• Procurement of green coconut is also carried out on a parity price of MSP for copra.

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MSP of Copra

0

1000

2000

3000

4000

5000

6000

2009 2011

MillingCopraBallcopra

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

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K. Innovations in Agricultural Marketing in Kerala

a. E-trading in cardamom Spices Board has established a Spices Park for

a common e- auction centre * Replaced the traditional auction of cardamom in

Kerala. * The stakeholders of the cardamom auction are

traders, planters auctioneers, dealers, dealer exporters.

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b. Auction in Agricultural Wholesale Markets under Department of Agriculture

 • From 2010 onwards, direct auction of farmer’s produce has been started in Agrl wholesale markets of the department

• Farmer clusters have been formed within a radius of 25 Km from each market and produce from these clusters are auctioned through Agrl Wholesale Markets.

• Transport of agricultural produce from the farmer clusters to these markets has been arranged by the markets themselves.

• To prevent occlusion of traders towards reducing price of commodities, the Government of Kerala enterprise, ‘Horticorp’ participates in all the auctions

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C.Establishing district level Procurement cum Marketing centre

• Objective:-Enable the farmer to get a remunerative price for their produce by avoiding the intermediaries.

• A pilot project in the five districts – Idukki, Alappuzha, Kollam, Thrissur and Kottayam

• The procurement of vegetables shall be undertaken through farmers groups

• District Level Procurement cum marketing committee.

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district level Procurement cum Marketing centre(Continued)

• The groups will be given necessary financial support for the procurement of vegetables, from among the farmers and to give the price at the time of procurement itself.

• Seed money will be provided to the farmer’s clusters as one time grant

• Produce pooled from the members of the clusters will be auctioned at the District Level Procurement cum Auction centre

• The activities of the district level centre will be carried out by a committee consisting of farmers and officials of the department.

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