AICyberLex Nexus

Key Words: Agricultural Commodity Wholesale Market, Farmers, Market Authority, Market Area, Market Region, Agricultural Produce

1.1 INTRODUCTION

India is an agricultural economy and more than 50 per cent of its people depend on agriculture and subsistence activities for agriculture. Agricultural Commodity Wholesale Market is one of the latest updates from various agencies sponsored by the Government of Kerala. Another important aspect of the history of agricultural marketing in the state of Kerala is the establishment of six Agricultural Commodity Wholesale Markets (ACWMs) by the Government of Kerala to address the marketing problems facing farmers. These markets were established under the Kerala Agricultural Markets Project (KAMP) to support farmers in marketing their agricultural products through straightforward platforms without interference from intermediaries. Of the six ACWMs, three are located in cities, and the rest of the three markets are located in rural areas. ACWM urban centers are located in Anayara in Thiruvananthapuram, Maradu in Ernakulam, and Vengiri in Kozhikode districts. Rural markets operate in Nedumangad (Thiruvananthapuram), Muvattupuzha (Ernakulam), and Sultan Bathery (Wayanad). The present study is limited to the problems encountered by the beneficairy in ACWMs while dealing the marketing of agricultural produce in Thiruvananthapuram district in the state of Kerala concerning its effectiveness from the perspective of its direct beneficiary namely the farmers.

1.2 REVIEW OF LITERATURE

Giri, A. 20231 in his study delves into the intricate challenges and dynamics characterizing the wholesale vegetable markets in Kathmandu Valley, Nepal. It sheds light on the pervasive issues confronting local producers, ranging from the absence of robust market structures to the frequent price fluctuations that erode profit margins. The study underscores the profound influence of intermediaries, hindering farmers from reaping expected profits while driving up distribution costs, ultimately impacting consumers. It emphasizes that Nepal's agricultural landscape is predominantly rooted in subsistence farming, hampered by inadequate infrastructure and a lack of support for modernization and supply chain development. Inadequate market access and the absence of storage and processing facilities contribute to significant post-harvest losses, exacerbating the challenges faced by farmers. The study also highlights the substantial profit margins enjoyed by middlemen and the competitive pressures imposed by Indian vegetable imports. In response to these multifaceted challenges, the research aims to discern strategies to enhance market conditions and bolster local farmers. However, the study acknowledges certain limitations, including its exclusive focus on wholesale markets within Kathmandu Valley and potential data gaps stemming from inadequate record-keeping. Nonetheless, it offers invaluable insights into the complexities of Nepal's vegetable supply chain, providing actionable recommendations to improve market efficiency, reduce losses, and ensure equitable profits for domestic producers, ultimately fostering the growth of the agricultural sector in the region.

According to Ec & Kp (2021)2, Kerala is one of the leading agricultural provinces in the country and is also one of the major producers of rubber, coconut, pepper and coir. The geography of the world extends beyond the Western Ghats, is patented by biodiversity and is known as ‘Biodiversity Paradise’.

Babu (2020)3 explored the challenges facing organic farming and marketing in India. This study aims to study the problems of marketing organic products, the challenges of organic vegetable farming and to develop appropriate strategies to promote organic farming in Kerala in India. The study found that farmers face a wide range of seed problems, lack of agricultural inputs, rising labour costs, low mechanical interventions, weather, lack of certificates and no funding for organic products. After understanding all the challenges, the study proposed the EVM Model.

Deepak Varshney (2020)4 analyzed the effect on wholesale prices and quantities exchanged in agricultural markets of the spread of COVID-19 and the lockdown. They compared the effects between non-perishable (wheat) and perishable (tomato and onion) goods. By using a granular data set consisting of 3 months of daily observations from approximately 1000 markets across five states.

Maurya et.al (2019)5 argued that the best way to get to the doorsteps of horticulture and vegetable farmers could be the market-led extension strategy. Any initiative to improve rural areas places great focus on the concept of empowerment. To improve the quality of life of the Indian population, they need to empower both at the personal and social level and market-led extension initiatives undertaken by the public and private extension approach to empower rural citizens. Framers should be sensitized to aspects of manufacturing, such as what to manufacture, how much to produce, what to produce, when and where to sell.

1.3 SIGNIFICANCE OF THE STUDY

Agriculture is the only way of life for more than half of the working class in India. However, in recent years the people of Kerala have shown reluctance to engage in agricultural activities due to rising labour costs, fertilizer and lack of adequate technical services, etc. to meet their modern needs for use. Marketing agricultural products became one of the major problems near natural disasters. Farmers need to rely on the big local markets to sell their large quantity of naturally perishable products. Most farmers need to travel long distances to reach local markets by incurring high travel costs. They could also afford to pay the price if they could sell their product at a reasonable price. But mediators' interventions in local markets exploit farmers by charging additional costs such as commissions, viewing salaries, and more. Since 1999, ACWMs have been working under the support of the government to overcome the marketing problems of farmers. Given the importance of agricultural marketing, it is appropriate to review the role of ACWM and to evaluate the performance of these markets in line with their proven objectives. It is hoped that the results of the research work will be useful to policy makers, market authorities, and market shareholders.

1.4 SCOPE OF THE STUDY

The scope of the present study is limited to the marketing of agricultural produce of ACWMs running in both urban and rural market regions in Thiruvananthapuram district in the state of Kerala concerning its effectiveness from the perspective of its direct beneficiary namely the farmers. The research ascertains the problems encountered by the beneficiaries of ACWMs specifically the farmers comes under the purview of the present work.

1.5 STATEMENT OF THE PROBLEM

In the state of Kerala, the government recently took many steps to overcome agricultural issues. However, the current report shows that farmers are still not free from the problems in the market for their agricultural produce. The government of Kerala has established ACWMs to overwhelm the marketing problems of farmers in the province and to inspire direct marketing by farmers and avoid misuse by the middle class. These markets have been working in the state with a sequence of initiatives and activities to support the farmers in the state. Now we have moved from unorganized to organized sector. The farmers are still not entirely free from the previous dilemma. At this juncture, an investigation on the marketing concerns confronted by farmers in dealing with agricultural produce in Kerala becomes very significant and useful. So far no effort has been made to conduct a comprehensive and complete study to estimate the marketing of agricultural produce in terms of the effectiveness of ACWMs by covering all of its nook and corners. Thus, at this juncture, the current study helps to identify any problems encountered ny the benefiary farmers in ACWM.

1.6 RESEARCH QUESTION

Therefore, the present research efforts to examine the following major issues:

What are the problems come across by the beneficiary farmers in ACWMs?

1.7 OBJECTIVE OF THE STUDY

To identify the problems, if any, encountered by the beneficiary farmers in ACWM

1.8 HYPOTHESES

The subsequent hypotheses based on the objectives of the study are:

H0: There is no significant difference in the problems encountered by beneficiary farmers in ACWM.

VARIABLES

The detailed list of dependent and independent variables are quoted in Table 1.9

Table 1.9

List of Dependent and Independent Variables

1.10 METHODOLOGY

Research methodology is a way to thoroughly show the research problem. It may be agreed as a science of studying how research is done systematically. The research methodology adopted for the study is given below.

1.10.1 Research Design

In this research, both descriptive and analytical design in the form of a survey method based on both primary and secondary data are used to carry out the research work.

1.10.2 Research Approach

In this study survey method is used as a research approach. Throughout the research work researcher, herself accumulates data from respondents by using an interview schedule.

1.10.3 Research Instrument

The instrument used for this study is an interview schedule. It was organized in a sequence. It was kept crisp as possible to make it easier for the respondents to answer. The schedule comprises close-ended questions and Likert scale questions.

1.11 SAMPLE DESIGN

In the state of Kerala currently, six Agricultural Commodity Wholesale Markets are working under Kerala Agricultural Markets Projects (KAMP) for the enlargement of agricultural markets in the state. Among the six markets, three of them are located in the urban region, and the rest of the three are positioned in the rural regions. The present study was conceded out among beneficiary farmers functioning in both urban and rural market regions in Thiruvananthapuram. The method for selecting the sample size and other details of the sample is given below:

1.11.1Population

The population considered for the study is registered farmers of ACWMs in Thiruvananthapuram. There are 250 farmers registered with ACWM as on 30th June 2024.

1.11.2 Sample Unit

Beneficiary farmers who are registered in both urban and rural market regions of ACWM in Thiruvananthapuram are the sample units intended for the study.

1.11.3 Sample Size

The sample size for the study is 151 beneficiary farmers who are listed with urban and rural ACWMs regions in Thiruvananthapuram.

1.11.4 Sampling Procedure

Population of the beneficiary farmers who are registered in ACWM is finite in nature. The sample size of the beneficiary farmers will be obtained by using the sample calculation formula. Sample covers 60.4 per cent (ie.151/250) of the total population. Samples from each market in urban and rural regions are selected by using proportionate random sampling technique. The details of population of beneficiary farmers in each market region and the sample size selected are revealed in Table 1.11.4

Table 1.11.4

Selection of Sample Beneficiary Farmers in ACWMs

Source: Primary Data

1.12 METHOD OF DATA COLLECTION

Data has been collected in two ways. They are;

1.12.1Primary Data

The primary data were collected from registered farmers of the selected area, by using a structured, self-administered interview schedule.

1.12.2 Secondary Data

Secondary data will be used to create a theoretical background in the area of ACWM. The data are grouped from various sources such as annual reports and other records of ACWMs, data offered on the internet through websites, monthly progress reports of ACWMs, periodicals, journals, and magazines, etc.

1.13 TOOLS AND TECHNIQUES OF ANALYSIS

A structured interview schedule is used for collecting the required data from the respondents. For data analysis; IBM Statistics 25.0 has been used. Parametric tests are used for analysis as the data is normal. Inferential statistics is carried out using Friedman’s test

1.14 ANALYSIS AND INTERPRETATIONS

Problems Encountered by Beneficiary Farmers In ACWM

In this section beneficiary farmer’s problems with ACWMs are analyzed by applying Friedman’s Test

1.14.1Farmers Problems with ACWMs

The Friedman’s test was used here to find any significant difference in the problems encountered by farmers with ACWMs. The opinion of the beneficiary farmers of ACWMs are the basis for analysis.

The hypotheses may be stated as:

H0: There is no significant difference in the problems encountered by beneficiary farmers in ACWM.

H1: There is significant difference in the problems encountered by beneficiary farmers in ACWM.

As per the Friedman’s test lower the mean rank higher will be the preference. With regard to the mean rank Table 1.14.1, highest preference is given to “Dispute between HORTICORP taff” with lowest mean rank (6.13) followed by “Opinion of farmers are not considered while fixing auction price” (6.44), “Lack of sufficient market staff to conduct auctions” (6.56), “Lack of delivery van facility to transport agriculture product from pooling centre to auction platform” (7.38).The least preference is given to the “Lack of convener’s meeting to discuss upon the improvement of auctions” with highest mean rank (20.04).The results obtained from the test is presented in Table 1.14.1

Table 1.14.1

Farmers Problems with ACWM

Source: Primary Data

To test whether their problems are statistically significant or not, Friedman’s test has been administered and the result is given in Table 1.14.1.1

Table 1.14.1.1

Friedman’s Test statistics

Table 1.14.1.1 shows the result of Friedman’s test, the chi-square value of 1481.051 was found statistically significant at 5% level. Thus, the difference in preference among various problems encountered by beneficiary farmers with ACWM is found statistically significant and hence the researcher rejected the null hypothesis that there is no significant difference in the problems encountered by beneficiary farmers in ACWM.

1.15 FINDINGS

The major findings emerged out of the study are:

Problems encountered by the beneficiary farmers in ACWM such as “Dispute between HORTICORP staff”, “Opinion of farmers are not considered while fixing auction price”, “Lack of sufficient market staff to conduct auctions”, “Lack of delivery van facility to transport agriculture product from pooling centre to auction platform” are significantly different.

1.16 CONCLUSION

ACWM is one of the latest updates from various agencies sponsored by the Government of Kerala. The history of agricultural marketing in the state of Kerala is the establishment of six Agricultural Commodity Wholesale Market (ACWMs) by the Government of Kerala to address the marketing problems fronting farmers. These markets were recognized under the Kerala Agricultural Markets Project (KAMP) with the aim of supportive farmers in marketing their agricultural products on specific platforms deprived of interference from mediators. Farmers can avail of more prices by selling their agriculture produce in the wholesale market, rather than in the local market. Thus, the difference in preference among various problems encountered by beneficiary farmers with ACWM is found statistically significant. With respect to problems, farmers in ACWMs have to experience a lot of problems, but the nature of gravity of the problem differs.

1.17 SUGGESTIONS

Based on the above findings and conclusion of the study, the following are the suggestions presented for improving the current situation.

ACWMs in Kerala are basically established with a motto to assist the traders and farmers. For the reason it is very essential for them to provide both general and additional facilities to the beneficiaries for their enhancement. The markets have to utilize their market fund for such purposes. If the market fund is found insufficient, Government by creating provisions in the budget can allocate necessary funds for such schemes.

Market authorities have to take up initiatives to implement modernized auction facilities as well as improved by way of exhibiting the produce.

ACWMs in urban and rural market regions must be cautious enough to manage and settle the dispute that arises between the HORTICORP staff and farmers.

Market authority can insist the vegetables traders within the market authority to participate during the auctions and induces them to purchase the organic produces rather than purchasing the poisonous vegetable produces arriving from other states.

Even though markets in ACWM is in a better position in handling more quantities of produce , participation of HORTICORP could make the market as an outstanding one based on performance . Department can take up initiatives to implement sales centers of HORTICORP in markets itself, so that difficulties in respect to transporting of agriculture produce can be avoided.

REFERENCES

Babu, C. (2020). Challenges of Organic Produce Cultivation and Marketing: A Study in Mananthavady Block, Wayanad District of Kerala, India. January.

Ec, S., & Kp, A. G. (2021). Agrarians Perception towards Growth of agriculture investment in Northern Region of Kerala – an age wise Analysis. 9(2), 26–31.

Giri, A. (2023). Insights into Fresh Vegetable Supply: Perspectives of Kathmandu Valley's Wholesale Suppliers. Journal of Applied Agricultural Economics and Policy Analysis, 6(1), 1-12.

Maurya, K., Rai, J., Yadav, S., Yadav, R. S., & Rajbhar, A. K. (2019). An economic Study the Resource Structure and Levels of Investment on the Sample Farms in District of Mau Nath Bhanjan (UP), India. Int. J. Curr. Microbiol. App. Sci, 8(8), 1234-1244.

Paul, J. (2019). Local Government Intervention in the Agricultural Initiatives of Kudumbasree in Kerala : A Review. 3085(06), 1647–1649.

Purohit, P., Imai, K. S., & Sen, K. (2017). Do Agricultural Marketing Laws Matter for Rural Growth? Evidence from the Indian States. 62 pages.

Varshney, D., Roy, D., & Meenakshi, J. V. (2020). Impact of COVID-19 on agricultural markets: assessing the roles of commodity characteristics, disease caseload and market reforms. Indian economic review, 55(1), 83-103.