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TYPES OF RESEARCH
Descriptive research (Statistical research)
Descriptive research, also known as statistical research, describes data
and characteristics about the population or phenomenon being
studied.
But it can only describe the "who, what, when, where and how" of a
situation
Although the data description is factual, accurate and systematic, the
research cannot describe what caused a situation. Thus, Descriptive
research cannot be used to create a causal relationship, where one
variable affects another.
It provides the number of times something occurs, or frequency, lends
itself to statistical calculations such as determining the average
number of occurrences or central tendencies.
There are three main types of descriptive methods: observational
methods (With the observational method (sometimes referred to as
field observation) animal and human behavior is closely observed.
There are two main categories of the observational method
naturalistic observation and laboratory observation), case-study
methods (Case study research involves an in-depth study of an
individual or group of individuals. Case studies often lead to testable
hypotheses and allow us to study rare phenomena) and survey
methods (In survey method research, participants answer questions
administered through interviews or questionnaires. After participants
answer the questions, researchers describe the responses given)
For example, what age group is buying a particular brand, a products
market share within a certain industry, how many competitors a
company faces, etc
Exploratory research
Exploratory research is a form of research conducted for a problem
that has not been clearly defined. It allows the researcher to familiarize
him/herself with the problem or concept to be studied, and perhaps
generate hypotheses (definition of hypothesis) to be tested.
Exploratory research helps determine the best research design, data
collection method and selection of subjects.
Exploratory research often relies on secondary research such as
reviewing available literature and/or data, or qualitative approaches
such as informal discussions with consumers, employees, management
or competitors, and more formal approaches through in-depth

interviews, focus groups, projective methods, case studies or pilot

studies
The results of exploratory research are not usually useful for decisionmaking by themselves, but they can provide significant insight into a
given situation. Although the results of qualitative research can give
some indication as to the "why", "how" and "when" something occurs,
it cannot tell us "how often" or "how many". In other words, the results
can neither be generalized; they are not representative of the whole
population being studied.
For instance, a marketer has heard news reports about a new Internet
technology that is helping competitors but the marketer is not familiar
with the technology and needs to do research to learn more. When
gaining insight (i.e., discovery) on an issue is the primary goal,
exploratory research is used.
Causal Research:
In this form of research the marketer tries to determine if the
manipulation of one variable, called the independent variable, affects
another variable, called the dependent variable. i.e. whether there is a
cause and effect relationship between variables, causal research must
be undertaken. In essence, the marketer is conducting an experiment.
This type of research is very complex and the researcher can never be
completely certain that there are not other factors influencing the
causal relationship, especially when dealing with peoples attitudes
and motivations. There are often much deeper psychological
considerations that even the respondent may not be aware of.
There are two research methods for exploring the cause and effect
relationship between variables: Experimentation (highly controlled
method allows the researcher to manipulate a specific independent
variable in order to determine what effect this manipulation would
have on other dependent variables. Experimentation also calls for a
control group as well as an experimentation group, and subjects would
be assigned randomly to either group)and Simulation (A sophisticated
set of mathematical formula are used to simulate or imitate a real life
situation. By changing one variable in the equation, it is possible to
determine the effect on the other variables in the equation)
For example, if a clothing company currently sells blue denim jeans,
causal research can measure the impact of the company changing the
product design to the colour white.
To summarize, causal research is a way of seeing how actions now will
affect a business in the future.

Analytical research

 Analytical research attempts to explain why and how. It usually

concerns itself with causeeffect relationships among variables. The
researcher has to use facts or information that is already available and
attempts to analyze the situation and make critical evaluation.
Basic Research
Basic (aka fundamental or pure) research is driven by a scientist's
curiosity or interest in a scientific question. The main motivation is to
expand man's knowledge, not to create or invent something. There is
no obvious commercial value to the discoveries that result from basic
research.
Many scientists believe that basic research lays the foundation for the
applied research that follows.
For example, much basic research has been conducted with animals to
determine principles of reinforcement and their effect on learning.
Applied Research has tested these principles to determine their
effectiveness in improving learning.
Applied Research:
Applied research is designed to solve practical problems of the modern
world, rather than to acquire knowledge for knowledge's sake. One
might say that the goal of the applied scientist is to improve the
human condition.
An example of applied research could be a study to find out how the
school feeding programme has affected school enrolment rates in
drought-prone districts.
Action implies that the practitioner is involved in the collection of data,
analysis, and the interpretation of results. He or she is also involved in
implementing results of the research and is thus well placed to judge
the effectiveness of the interventions.
Conceptual Research
Conceptual research is that related to some abstract idea(s) or theory.
It is generally used by philosophers and thinkers to develop new
concepts or to reinterpret existing ones.
Conceptual analysis is the preferred method of analysis in social
sciences and philosophy. Here, a researcher breaks down a theorem or
concept into its constituent parts to gain a better understanding of the
deeper philosophical issue concerning the theorem.
This method of analysis has gained immense popularity; in spite of
that, there is a lot of criticism against it. Most researchers will agree
that conceptual analysis is a very accurate and useful method for
analysis, but should be used along with other analysis methods to get
results that are more accurate.

 For example, if you say "Computer games sharpen children's minds"

expresses a belief about a causal relationship at a conceptual level.
Empirical Research
Empirical Research can be defined as "research based on
experimentation or observation (evidence)". Such research is
conducted to test a hypothesis.
Empirical research relies on experience or involves observation alone,
often without due regard for system and theory. It is a data-based
research, with analyses coming up with conclusions, which are capable
of being verified by observation or experiment. We can also call it as
experimental type of research.
In such a research it is necessary to get at facts at the firsthand, at
their source, and actively to go about doing certain things to usually
stimulate the production of the desired information. In such a research,
the researcher must first provide himself with a working hypothesis or
guess as to the probable results. He then works to get enough facts
(data) to prove or disprove his hypothesis.
Empirical evidence (the record of one's direct observations or
experiences) can be analyzed quantitatively or qualitatively.
Examples of Empirical Research Questions: Do gun control laws reduce
violent crimes?, Are police officers compensated for working in higherrisk environments?
Cross-sectional study
Form a class of research methods that involve observation of all of a
population, or a representative subset, at one specific point in time.
Cross-sectional studies are descriptive studies (neither longitudinal nor
experimental) not causal. They may be used to describe some feature
of the population.
Researchers record information about their subjects without
manipulating the study environment. The defining feature of a crosssectional study is that it can compare different population groups at a
single point in time. Think of it in terms of taking a snapshot. Findings
are drawn from whatever fits into the frame.
In our study, we would simply measure the cholesterol levels of daily
walkers and non-walkers along with any other characteristics that
might be of interest to us. We would not influence non-walkers to take
up that activity, or advise daily walkers to modify their behaviour. In
short, wed try not to interfere.
The benefit of a cross-sectional study design is that it allows
researchers to compare many different variables at the same time. We
could, for example, look at age, gender, income and educational level

in relation to walking and cholesterol levels, with little or no additional

cost.
However, cross-sectional studies may not provide definite information
about cause-and-effect relationships. This is because such studies offer
a snapshot of a single moment in time; they do not consider what
happens before or after the snapshot is taken. Therefore, we cant
know for sure if our daily walkers had low cholesterol levels before
taking up their exercise regimes, or if the behaviour of daily walking
helped to reduce cholesterol levels that previously were high.
Longitudinal study
A longitudinal study, like a cross-sectional one, is observational. So,
once again, researchers do not interfere with their subjects. However,
in a longitudinal study, researchers conduct several observations of the
same subjects over a period of time, sometimes lasting many years.
The benefit of a longitudinal study is that researchers are able to
detect developments or changes in the characteristics of the target
population at both the group and the individual level. The key here is
that longitudinal studies extend beyond a single moment in time. As a
result, they can establish sequences of events.
To return to our example, we might choose to look at the change in
cholesterol levels among women over 40 who walk daily for a period of
20 years. The longitudinal study design would account for cholesterol
levels at the onset of a walking regime and as the walking behaviour
continued over time. Therefore, a longitudinal study is more likely to
suggest cause-and-effect relationships than a cross-sectional study by
virtue of its scope.
Qualitative & Quantitative Research
Qualitative
"All research ultimately has
a
qualitative
grounding"
- Donald Campbell
The aim is a complete, detailed
description.
Researcher may only know roughly
in advance what he/she is looking
for.

Quantitative
"There's
no
such
thing
as
qualitative
data.
Everything is either 1 or 0"
- Fred Kerlinger
The aim is to classify features,
count
them,
and
construct
statistical models in an attempt to
explain what is observed.
Researcher
knows
clearly
in
advance what he/she is looking for.

Recommended
during
earlier
phases of research projects.
The design emerges as the study
unfolds.
Researcher is the data gathering
instrument.
Data is in the form of words,
pictures or objects.
Subjective
individuals
interpretation
of
events
is
important ,e.g., uses participant
observation, in-depth interviews
etc.
Qualitative data is more 'rich', time
consuming, and less able to be
generalized.
Researcher
tends
to
become
subjectively immersed in the
subject matter.

Farmers Markets
Introduction

Recommended during latter phases

of research projects.
All aspects of the study are
carefully designed before data is
collected.
Researcher uses tools, such as
questionnaires or equipment to
collect numerical data.
Data is in the form of numbers and
statistics.
Objective

seeks
precise
measurement & analysis of target
concepts, e.g., uses surveys,
questionnaires etc.
Quantitative data is more efficient,
able to test hypotheses, but may
miss contextual detail.
Researcher
tends
to
remain
objectively separated from the
subject matter.

Uzhavar Santhai

Agriculture occupies a very important role in the growth of economy

of our country, which is also the backbone of the economic
system. India is primarily an agricultural country. The prosperity
of the Indian economy is dependent on the course of agricultural
production. Of course, agriculture contributes a major share of
the national income of India. In India, agriculture meets almost
the entire food requirements of the people. Agriculture also
provides fodder to sustain livestock whose number runs to
several crores.
In the field of agriculture, marketing determines the value of the
agricultural product in terms of money and delivers them to the

final customer. Most of the farmers sell their produce through

village level markets, fairs, Mandies, Co-operative Societies etc.
In the above process of agricultural marketing, the middlemen
exploit farmers as well as consumers. In order to eliminate the
middlemen between farmers and consumers, the Government of
Tamilnadu introduced the new concept, namely UZHAVAR
SANTHAI in 1999.
Generally, the middlemen and wholesale businessmen purchase the
Agricultural products from the farmers at a lower price. They
also get the commission from the farmers for the transactions
made. In turn, fresh vegetables and fruits purchased at the lower
price from the farmers are sold out to retail businessmen at
higher price and the retail businessmen sell those Agricultural
Products further at higher price to the consumers. As a result,
the farmers get only the lower price for their produce whereas
the consumers have to pay higher price for the same produce.
Hence, the Government of Tamilnadu has introduced an alternate
scheme of marketing, which is known as UZHAVAR SANTHAI in
order to derive more benefits to the farmers as well as
consumers.
Aim:
To facilitate direct contact between the farmers and public.
To provide fresh vegetables and fruits at reasonable price daily
without any interference of middlemen.
To provide correct measurement to the consumers.
To give full satisfaction to the farmers and public.
To aim for providing higher price than that of wholesale price to the
farmers for their vegetables and fruits.
To provide the fresh fruits and vegetables at the lesser price than
that of retail price to consumers.
The Uzhavar Santhai also functions as a Technical Information
Centre to the farmers
It also acts as a Technical Training Centre to the farmers.
Seeds and Other Inputs are also provided in some Uzhavar Sandhais
Salient features
The prices of the vegetables and fruits are daily fixed at the average
of 20 % higher than the wholesale prices and 15% less than retail
prices by the Committee consisting of the representatives of
farmers and officials.
The prices of vegetables and fruits are daily displayed in front of
each shop as well as exhibited in big signboards of the market
and it is ensured by the Department staff that the fruits and
vegetables are sold at the fixed rates.
Horticultural Department officials identify vegetable growing
farmers in the villages and photo identification cards are issued
to those farmers.

Shops are allotted at free of cost to the farmers who bring their
produce on first come first served basis and shops are not
permanently allotted to farmers.
Aavin, Tan tea stalls are also set up in some places.
The farmers are permitted to bring their produce without any fair
for their luggage in special trips from the villages to Uzhavar
Santhais
Hill vegetables are sold in Uzhavar Santhais through women self
help groups, Cooperative Societies.
Weighing scales are provided at free of cost for the use of farmers
and they are retrieved after the sale proceedings are over.
Sanitation is being maintained. In some places vermicomposting of
vegetable wastes is also done.
Ex-Servicemen /Private security agencies have also been used for
the security of the market.
Telephone facilities, Vehicle stand, Canteen, Toilet facilities have
also been provided.
The Uzhavar Santhais are functioning on all the days of the week.
Water supply is available in the Uzhavar Santhai.
To sell unsold items on the next day, storage facilities are available.
Organisation
The location of the Uzhavar Santhai is of utmost importance. The
Uzhavar Santhais are located in a consumer area, where the
consumers can approach to the market easily. In fact, the main
intention is to ensure the urban character of the location, so that
adequate number of consumers will benefit from the market. The
first Uzhavar Sandhai of the state was inaugurated on
14.11.1999 at Madurai and 100th Uzhavar Sandhai on 14.11.2000
at Pallavaram. 103 Uzhavar Santhais were established between
14.11.1999 and 30.4.2001. 28 Uzhavar Santhais, which were
closed between 2001 and 2005, were reopened during June 2006
and an amount of Rs.42.00 lakhs was spent for the renovation of
103 Uzhavar Santhais. At Present 103 Uzhavar Santhais are
functioning with full vigor. The new concept of Uzhavar Santhai is
implemented in Tamilnadu in massive scale. All Uzhavar Santhai
are maintained by Agricultural Marketing Department and
manned by the staff of the Department of Agricultural Marketing,
Agriculture, and Horticulture. The District Collector is the
coordinator for running the Uzhavar Santhai successfully in the
Districts whereas in State as a whole, the scheme is
implemented by the Director of Agricultural Marketing and
Agribusiness, Chennai-32.
Staff pattern of Uzhavar Sandai
Sl.NoName of the staff
Grade
Nos
1 Uzhavar Sandai Administrative Officer Agricultural Officer 1
2 Uzhavar Sandai Assistant Administrative Officer Assistant
Agricultural Officer
3

Uzhavar Sandai Assistant Administrative Officer Assistant

Agricultural Officer (Horticulture) 1
4 Watchman Employed thro private security agencies with
consolidated pay of not more than Rs 1500/ per month.
3
5 Scavenger On consolidated basis @ Rs 1500/ per month
1
6 Sandai Paniyalargal
On redeployment from Makkal Nala
Paniyalargal 2
Total 11
The duties assigned to the staff are as follows
Sl.NoName of the staff
Duties
1 Uzhavar Sandai Administrative Officer
Price fixation and declare the price after collecting wholesale and
retail market price, discussion with farmers group
Supervision of allotment of shops
Supervision of sales procedures
Collection of charges for vehicles
Checking farmers Identity cards.
To monitor and ensure the sale of vegetables and fruits at the price
fixed by the administration
Administration of Uzhavar Sandai and all works related to it.
2 Uzhavar Sandai Assistant Administrative Officer (1)
Allotment of shops to farmers after checking Identity cards
Uzhavar Sandai Assistant Administrative Officer (2)
Issue of weighing balances, weights etc to farmers and to collect it
back
Maintenance of registers.
Uzhavar Sandai Assistant AdministrativeOfficer(3)
To record item wise arrivals of vegetables and preparation of daily
reports.
3 Uzhavar Sandai Assistant Administrative Officer (Horticulture)
Dissemination of crop production technologies thereby increasing
the production of vegetables
4 Watchman (1)
Guarding the Uzhavar Sandai at night
Watchman (2)
Watchman (3)
Guarding the Uzhavar Sandai during day time
Regulating vehicles and guards vehicles
Regulating farmers.
5 Scavenger
To ensure cleanliness in Uzhavar Sandai
Cleaning of toilets
6 Sandai Paniyalargal
To assist in checking of ID cards and during registration
To write the fixed prices on display boards
To carry balances to the shops and back from the shops
The Uzhavar Sandais are maintained by the Market Committees of
the Department of Agricultural Marketing and Agribusiness. The
concerned Market Committee Secretary will be the coordinator

for the Uzhavar Sandai as additional charge to his duties. For the
Uzhavar Sandai that is not established at the committee head
quarters the Assistant Director of Agriculture/ Assistant Director
of Horticulture in the jurisdiction will hold the additional charge
of Coordinator of Uzhavar Sandai. The Coordinators of Uzhavar
Sandai must look after the daily functioning of Uzhavar Sandai,
price fixation etc .In addition to the Agricultural officers and
Assistant Agricultural Officers in the post harvest technology
centers of the Department of Agricultural Marketing and
Agribusiness, Agricultural officers and Assistant Agricultural
Officers of the Department of Agriculture and Horticulture in the
districts are also utilised.
Facilities to be provided at Farmer's Market
Photo Identity Card
Based on the recommendations made by the team, identity cards
are to be issued to the farmers, in which photo of the land owner
and his nominee with the particulars of the village name to which
the farmer belongs, survey number, extent of the land owned by
him, and the vegetables grown are mentioned. The identity cards
are to be renewed every six months with reference to the
vegetables grown in their fields.
Transport Facility
Transport facility for pick up and dropping down of the registered
farmers to the Farmers market are arranged by the market
functionaries through tie-up with state transport department.
Allotment of stalls
Stalls are to be allotted to the farmers by following lot method or
first come first basis. The farmers are not allowed to occupy the
stalls permanently. No fee is to be collected from the farmers.
Prices Fixation
The market committee will every day communicate the moderate
wholesale prices of vegetables through fax between 7.30 AM and
8.00 AM . Based on the same, the prices of vegetable are fixed in
consultation with the farmers committee, which may be 20%
-25%
higher than the whole sale price and lower than the local
retail market prices in the area.
Public Address System
Prices of vegetables are frequently announced through public
address system to create awareness of the rates of the
vegetables among the consumers as well as farmers.
Supply of weighing scales
When the farmers enter into a Farmers market their names along
with the particulars such as name of the village and the quantity

of vegetables brought by them are entered in a register and they

are issued a token. On the basis of the token issued to them, all
the farmers are provided with weighing scales without collecting
any fee. The farmers will return back the scales after completing
their sales.
Other facilities:
Drinking water facilities
Toilet facilities
Canteen facilities for food and tea
Drainage facilities
Plastic boxes to collect rotten fruits and vegetables.
Additional facilities like Computers for effective communication,
new hybrid seeds, seedlings, organic farming methodology,
vermicomposting demonstration and post harvest management
training to farmers will also be offered to those farmers visiting
Uzhavar Sandhai. 25 Uzhavar Sandhais have been supplied with
computers.

MODEL PROJECT ON DEVELOPMENT OF DIRECT MARKETING INFRASTRUCTURE

RYTHU BAZAR / FARMERS' MARKET

1.

INTRODUCTION

Direct marketing is a long felt need of the farmers and consumers of the country as
it goes a long way in ensuring higher remuneration to the farmers and meeting the
satisfaction level of the consumers through direct sale of the agricultural commodity
by the farmers to the consumer at affordable prices. Direct marketing of agricultural
produce helps in complete elimination of middle men and commission agents who
charge high level of commission fee from the agriculturists/farmers coming to the
market yards for selling their produce and then artificially inflate the retail prices.
The efficacy of direct agricultural marketing infrastructure facility can be increased
by providing market user common facilities for proper weighing, cleaning, grading
and packaging of agricultural produce being brought to the market yard by the
farmers for sale. In order to give a big boost to the development of direct

agricultural marketing infrastructure facilities in the country, the Govt. Of India, Min.
Of Agriculture has announced the Scheme for Development/ Strengthening of
Agricultural Marketing Infrastructure, Grading and Standardization. The scheme is
reform linked, i.e. Desires the states to amend their state specific APMC acts for
enabling development of direct agricultural marketing infrastructure facilities,
contract farming and participation of private and cooperative sector in creation of
market yards. Under the scheme credit linked back ended subsidy to the tune of
25% of the total project cost (33.33% of the total project cost for projects in NE
states, hilly and tribal areas, SC/ST entrepreneurs or their cooperatives) is available.
The implementation period of the scheme is from 20.10.2004 to 31.3.2007.
Development of direct marketing infrastructure forms one of the component of the
scheme.

The Rythu Bazar (Farmers' Market) is one of the farmers' friendly direct marketing
systems in operation in the country. In order to create awareness about
development of agricultural marketing infrastructure among bankers, financial
institutions, potential entrepreneurs in private and cooperative sectors, farmer
groups, govt. functionaries etc. a model bankable project for a Rythu Bazar has
been developed.

2.

CONCEPT

Rythu Bazars were introduced with a view to eliminate the middlemen and arrange
facilities for the farmers to sell their produce directly to the consumers at
reasonable rates fixed every day. On account of the scheme both the farmers and
the consumers are benefited.

Regulated market yards for fruits and vegetables are functioning only at a few
centres. The marketing system for fruits and vegetables is now in the hands of
middlemen. Middlemen exists at various levels between the farmers and the
consumers and exploit through malpractice in weighment, handling and payments.
Large number of small farmers are unable to effectively bargain for better price in
the wholesale market. Inefficiencies in the wholesale markets results in a long chain
of intermediaries, multiple handling, loss of quality and increase the gap between
the producer and consumer prices. Large number of small retailers, each handling
small quantities, create high overheads leading to high margin on produces.

It is, therefore, felt necessary to evolve an alternate marketing strategy where both
growers and consumers are benefited through Rythu Bazar. Rythu Bazar are thus

planned for direct interface between the farmers and the consumers eliminating
middlemen. Rythu Bazars, if function effectively, can act as price stabilization
centers. Rythu Bazars will operate outside the purview of the Agriculture Market
Committees and are to be managed by Estate Officers under the control of Revenue
Department of the State Government.

The producers/farmers are supplied properly calibrated weighing scales with

weights for selling their produce. All these facilities are provided to the farmers and
customers free of cost. The Estate Office is equipped with all the latest facilities like
telephone, fax, computer with Internet facility etc.

3.

OBJECTIVES

The objectives of Rythu Bazar are mainly:

1.
To ensure remunerative prices to the farmers and provide fresh vegetables to
the consumers at reasonable rates fixed every day.

2.
Facilitate prompt realization of sale proceeds to the farmers without any
deductions.

3.

Curb malpractice in weighment

4.
Provide direct interface between farmers and consumers- eliminating
intermediaries in trade.

4.

FACTORS OF SUCCESS

Successful operation of direct agricultural marketing infrastructure facilities viz.

Rythu Bazars depend upon location of the bazars, number of customers visiting the
bazar per day, nature, type, quantity and quality of agricultural produce being

brought by the farmers for sale, systematization of the retail price fixation
mechanism, allotment of stalls to the farmers on farmers group/ mandal basis,
design of the stalls based on the nature, type and quantity of salable items brought
by the farmers, availability of functional infrastructure facilities viz. cleaning,
grading, weighing, packaging, short term storage etc., price display mechanism,
loud speakers and broadcasting system, availability of utilities viz. electricity, water,
garbage disposal/ cleaning facilities and last but not the least services/ facilities for
the convenience of the consumers viz. parking, coin changing machines, grievance
redressel mechanism etc. The facilities should, therefore, match to the requirement
of the farmers and the consumers/ customers. Considering all these aspects the
requirements of a Rythu Bazar/ Farmers' Market for direct sale of agricultural
commodities are elaborated in the following paragraphs.

4.1

Location :

i)
The Rythu Bazar/ Farmers' Market for direct sale of agricultural commodities
should be located at a convenient location for enabling maximum number of
consumers to visit the bazar . Locations near transport head/ main road/ railway
stations, bus stops/ depots/ community centers are considered ideal for establishing
such bazaars. The site must be on a raised land, have facilities for safe drainage of
storm water and sewage, should be safe from damage by surface or seepage water
and not subject to floods or inundation.

ii)
It should be away from the factories and other industrial establishments,
dairy and poultry farms, kilns, sources of fire, garbage dumping grounds, slaughter
houses, hide curing centers etc.. The structure shall be 150 m away from factories
and other sources of fire, 300 m away from kilns, slaughter houses etc.

iii)
Sufficient parking and maneuvering space for vehicles should be available.
There should be scope for future expansion and adequate land available in the
adjacent areas. It should also have scope to access adequate dependable source of
water, electricity and the site should be free from all legal hurdles to take up
proposed constructions and marketing.

4.2

Facilities to be provided in Rythu Bazar/ Farmer's Market

The layout of a market yard should be to facilitate easy movement of people

(consumers and farmers bringing in their commodities for sale) and vehicles. The

layout should be such that there is efficient use of the available space. Congestion
should be avoided. Each stall should face the internal walkways for proper display of
commodities and have equal opportunity for the business development. The stalls
should have sloping roofs with a minimum slope of 1:4 towards the internal walk
way for proper drainage of rain water. The display floor of the stall should have
sufficient height from the ground level to prevent inundation. The Rythu Bazar/
Farmers' Market should have a wide approach road and adequate parking space for
vehicles of consumers. Drainage arrangements for rain water, waste and sewerage
water should be made by means of covered surface or underground drains
according to site conditions. Provision for trash arresters may be provided for
preventing clogging of drains. Minimum provision for: (a) cleaning (b) grading and
sorting (c) weighing (d) packaging (e) small storage godowns for short duration
storage (f) market office (g) gate check post (h) parking space (i) fire fighting
arrangements will have to be made. The estimates provided should be examined to
see whether they are reasonable and whether all the items of development are
covered.

4.3

Identification of farmers

A team is to be constituted with Mandal Revenue Officer, Horticulture Officer and

Agriculture Officer which should visit the villages, inspect the fields and identify the
farmers.

4.4

Issue of Photo Identity Card

Based on the recommendations made by the team, identity cards are to be issued
to the farmers, in which photo of the land owner and his nominee with the
particulars of the village name to which the farmer belongs, survey number, extent
of the land owned by him, and the vegetables grown are mentioned. The identity
cards are to be renewed every six months with reference to the vegetables grown in
their fields.

4.5

Transport Facility

Transport facility for pick up and dropping down of the registered farmers to the
Rythu Bazar are to be arranged by the market functionaries through tie-up with
state transport department.

4.6

Allotment of stalls

Stalls are to be allotted to the farmers on first come first serve basis daily. The
farmers are not allowed to occupy the stalls permanently. No fee is to be collected
from the farmers.

4.7

Prices Fixation

The market committee will every day communicate the moderate wholesale prices
of vegetables through fax between 7.30 AM and 8.00 AM . Based on the same, the
prices of vegetable are fixed in consultation with the farmers committee, which may
be 20% -25% higher than the whole sale price and lower than the local retail market
prices in the area.

4.8

Sale of vegetables to residential schools/hostels

The Rythu Bazar can undertake bulk supply of vegetables to the social welfare
hostels, major residential areas and hostels as per their requirements to encourage
the farmers to bring more and better quality vegetables to the market.

4.9

Public Address System

Prices of vegetables are frequently announced through public address system to

create awareness of the rates of the vegetables among the consumers as well as
farmers.

4.10

Providing of coins

The farmers and consumers face a lot of problem due to lack of change especially of
50 paise and one rupee coins. To avoid such problems, the market functionaries

may install coin exchangers at a suitable location in Rythu Bazar through tie up with
banks.

4.11

Supply of weighing scales

When the farmers enter into a Rythu Bazar their names along with the particulars
such as name of the village and the quantity of vegetables brought by them are
entered in a register and they are issued a token. On the basis of the token issued
to them, all the farmers are provided with weighing scales without collecting any
fee. The farmers will return back the scales after completing their sales.

5. BRIEF CONSTRUCTION SPECIFICATIONS FOR FUNCTIONAL INFRASTRUCTURE

FACILITIES IN RYTHU BAZAR / FARMERS' MARKET

5.1

Road

The Rythu Bazar/ Farmers' Market should have wide approach road of minimum 6m
width for customers to drive in and out of the bazar compound. The roads should
be hard-surfaced and should have minimum standards necessary to withstand the
wear and tear due to the projected traffic. The roads should be all-weather roads
permitting transportation throughout the year. If possible separate entry and exit
gates may be provided for decongestion. The internal walkways should have a
minimum width of 1.8m for easy movement of consumers. The surface of the
internal walkways may be hard surfaced, tiled with interlocking tiles or surfaced
with granite slabs for preventing seepage of rain water, minimising the cleaning and
maintenance cost, avoidance of dust in the dry seasons and accumulation of mud
and water in the rainy season.

5.2

Compound Wall

The compound wall should have a foundation depth of 1.0 m below ground level.
Normally PCC of mix ratio (1: 5: 10) is put below the foundation wall. The material to
be used for foundation construction may be stone masonry in cement mortar or
concrete. The superstructure of the compound wall may be made up of brick
masonry in cement mortar in 1: 6 ratio mix. The compound wall should be plastered
on both the faces. The height of the compound wall should be 2 m from the ground

level. Over the superstructure, a barbed wire fencing upto a height of 0.9m should
be provided.

5.3

Stalls

The total number of stalls in each Rythu Bazar / Farmers' Market will depend upon
the number of stalls to be allotted by the Department of Agricultural Marketing to
each Farmers Group/ Mandal, SHG , DWACRA groups, NAFED, Khadi and Village
Industries Board, Dist. Coop. Marketing Societies etc. In this particular model,
construction of 250 number of stalls has been considered. The floor area of each
stall has been considered to be 4.66 sq.m. It has been assumed that 70% of the
stalls are along the compound wall and 30% of the stalls are on independent walls.
Of the total stalls, it is assumed that 200 stalls are allotted to farmer groups/
mandals and the remaining 50 stalls are allotted to SHG/ DWACRA/ BPL groups etc.
for selling other commodities to the farmers and consumers so that the farmers
donot have to move to far off places to buy their consumer items.

The foundation depth of the stall should be 1 meter from the ground level. The
foundation should be layered with PCC in 1:5:10 ratio. The plinth should be kept 60
cm above the finished ground level and should be filled with good and selected
earth and properly consolidated in layers. The plinth should be provided with Damp
Proof Course (DPC ) of well graded concrete of 40 to 50 mm thickness with water
proofing compound. The floor area of each stall should be 4.66 sq.m . The flooring of
the stalls should be damp proof, rigid and durable. Normally flooring provided will
be 50 mm thick cement concrete 1: 2: 4 mix ratio over a base course layer. A layer
of bitumen asphalt 80/100 or equivalent should be spread uniformly @ 1.67 kg/
sq.m between the two layers of concrete to make the flooring damp proof. . Where
stone slabs are available at cheaper rates, the flooring may be of that material. The
display floor should be sloping gently towards the internal walkways for easy
cleaning and washing. The roof height of each stall should be atleast 1.8m from the
floor level to the base of the truss. The roof truss should be placed atop columns
made of 40 mm dia. hollow iron tubes. Hollow iron channels or angle iron may also
be used as per requirement and availability. The roofing of the stalls may be made
up of corrugated asbestos sheets hooked to the truss with J hooks. A slope of 1:4
may be maintained while constructing the roofing of the stalls. Nearly 70% of the
stalls should be constructed in such a manner that they are lined across the
compound wall (outer stalls). The remaining 30% of the stalls (inner stalls) needs to
have a back wall to make the construction cheaper. Provision may be made for
construction of iron grills and iron rolling shutters for the stalls to be allotted to the
SHG/ DWACRA groups. Further modifications/ renovations of the stalls as per
requirement may be left to the SHG/ DWACRA groups. Facilities for lighting of the
stalls may also be provided.

5.4

Farmers rest room cum training center

A room of size 3.6m x 6 m may be constructed to act as rest rooms for the farmers.
The rooms may also be used as a training center for imparting training on nursery
development/ vermicomposting/ biofertilizer preparation/ integrated pest
management, nutrition management etc.

5.5

Small Sized Godown

Provision may be made by the Market Functionaries/ Department of Agriculture

Marketing for construction of a small 50/ 100 MT capacity godown for the sellers/
SHGs/DWACRA group members to store their non perishable goods and other
commodities for short durations. In Rythu Bazar/ Farmers' Market where farmers sell
onions, provision for construction of small sized onion godown for safe storage of
onion may also be explored.

5.6

Cold Storage

Depending on movement of perishable produce in the market yard, construction of

a cold storage may be considered.

5.7

Market User Common Facilities

Provision should be made to provide market user common facilities such as (a)
cleaning
(b) grading and sorting (c) weighing and packaging of the produce being
brought by the farmers for sale in the Rythu Bazar/ Farmers' Market. Suitable
cleaner cum grader, mechanical and electronic weighing machines along with
stitching / sealing machines with capacities commensurate to the nature, type and
quantity of daily market arrivals of agricultural produce may be provided. Provision
should also be made for displaying the rates of the commodities. There should be
provision for fire fighting, refuse bins, urinals, latrines, drinking water, common
lighting, first aid etc. in the market yard and the properties should be properly
insured.

5.8

Market Office

An area of 15 sq.m may be provided for the office to house the staff and equipment
like computer, printer, typewriter, telephone fax machine etc.

5.9

Watch and Ward Room

Provision may be made for construction of a watch and ward room near the
entrance gate of the Rythu Bazar/ Farmers' Market.

6.

ELECTRICITY

Closeness of the electricity supply line to the site is advantageous. Electricity is

necessary for illumination of Rythu Bazar/ Farmers' Market, powering fans, motors,
water pumps and other uses. Adequate supply of power should be ensured from
the state electric supply agency in the area. The total power requirement for various
purposes such as lighting, electrical equipment, fans, pumps etc. have to be
calculated. The power requirement may be in the order of 25 KVA.

7.

WATER SUPPLY

The market yard should have a dependable source of potable water. When the
market yard is located close to a town where municipal water supply is available the
same may be availed; otherwise suitable tubewell arrangements should be made
for the provision of water. An overhead storage tank which can provide water, at
desired pressures in the distribution pipes should be constructed. The pipeline
should be underground to avoid damage.

8.

SEWAGE SYSTEM/ GARBAGE DISPOSAL

Arrangements should be made for the market yard for collection of garbage and
disposal of sewage.

9.

EQUIPMENT

Efficient functioning of the Rythu Bazar/ Farmers' Market depends very much on the
communication facilities in the market area. This should include telephone and fax,
computer with printer, calculator, furniture, filing cabinets, ventilation fans,
equipment necessary for primary quality assessment of the commodities, Cleaning,
Drying and Grading Equipment, Weighing Scales and Electronic Weighing Machines,
Plastic Crates/ Baskets and Fire Fighting Equipment.

10.

PHASING

The construction and developmental activities should be properly phased, taking

into consideration the time required for the acquisition of land, availability of
technical staff, availability of construction materials like cement and steel,
availability of skilled and unskilled labourers in the area etc.. The phasing should be
as realistic as possible. Arrangements should be made for supervision. Construction
and implementation schedule of the scheme should be indicated in the project.

11.

MARKET INCOME/ REVENUE TO THE MARKET

The sources of income for ensuring self sustenance of the Rythu Bazar may be as
follows:

1.

Auction of parking space

2.

Auction of canteen

3.

Auction of toilets

4.

Other income (lease rentals of private nurseries, vermicomposting units etc.)

5.

Rentals of stalls allotted to farmers

6.

Rentals collected from regular shops

For ensuing viability of the market yard and for sparing the farmers from paying any
fee, the scope of revenue generation through advertisement in the market place
may also be explored. However, in case of cash crunch / poor viability of the
market, a nominal fee can be charged from the farmers and while fixing the price
for the commodities , the administrator should make such a provision in the unit
cost.

12.

PHYSICAL AND FINANCIAL OUTLAY

With all the provisions indicated above, the average cost of a Rythu Bazar/ Farmers'
Market having 250 stalls, with average total market arrivals of vegetables per day of
300 MT, average number of consumers visiting per day of 30,000 persons and
average sales transaction per day of Rs. 30 Lakh ( which is the cumulative value
arrived at based on the average daily sales figure of farmers' groups, SHG/ DWACRA
/ KVIC etc. groups as well as retail traders) comes to about Rs 77.15 Lakh as given
in Annexure -III. Accordingly, the economics of the investment have been worked
out. However, the project cost and economics will change as per the site conditions
and the nature of market operations.

13.

FINANCIAL ANALYSIS

The economics of a Rythu Bazar/ Farmers' Market having 250 stalls and other
parameters as given under serial 12 have been worked out and given at Annexure
-IV. Respective profitability statements for 15 years and cash flow for financial
viability analysis for this size of Rythu Bazar/ Farmers' Market is given in annexure V
and VI respectively. The repayment schedule with and without subsidy adjustment
has been worked out and are given in Annexure -VII (A) and VII (B) respectively.

The financial indicators for the investment are as under:

Net Present Worth at 15% discounting factor

Rs. 24.47 Lakh

Benefit Cost Ratio at 15% discounting factor

1.17 :1

Internal Rate of Return

24.00 %

Average Debt Service Coverage Ratio

(with subsidy adjustment)

2.39 : 1

Average Debt Service Coverage Ratio

(without subsidy adjustment)

1.54 : 1

As per the repayment schedule given at Annexure VII, the term loan can be
recovered in 11 years (with graded installments linked to income generation)
including a grace period of two years.

14.

INSURANCE

The physical infrastructure facilities and along with ancillary structures etc. should
be insured. The traders in the market yard may also be advised to insure their
commodities.

15.

DOS AND DONTS

In order to safeguard the interest of bankers and borrowers, it is necessary to take

certain precautionary measures. As a ready reckoner, some of the important
aspects are shown in the form of Dos and Donts in Annexure I and II respectively.

16.

ROLE OF NABARD

NABARD is the apex financial institution of the country for agriculture and rural
development and plays a vital role in coordinating all financial banks, state
agencies etc. to develop the countryside. As a pro active role, it formulates broad
strategies and fixes technical specifications, disseminates information and extend
financial assistance to the agencies for development of agricultural marketing
infrastructure facilities to tap the potential and protect the interest of the rural
community in general and farming community in particular. As direct agricultural
marketing infrastructure facilities like Rythu Bazars/ Farmers' Markets play an
important role in the economic developmental process of the farming community,
this bulletin is prepared as a reference document for bankers, farmers and other
developmental agencies. NABARD provides refinance and co-finanace support to
various eligible financing banks for financing development of direct agricultural
marketing infrastructure under its normal refinance programme. This bulletin can be
utilised in identifying the potential Rythu Bazars/ Farmers' Markets and formulating
schemes for the development of the infrastructure with NABARD refinance support.

DOS AND DONTS

DOS

1.

Locate the Rythu Bazar/ Farmers' Market on a well raised drained site.

2.

Locate it near to a transport head.

3.
Locate it away from pollution sources such as dairy, poultry, slaughter
houses etc.

4.

Locate it away from sources of fire such as kilns, factories etc.

5.
Provide suitable access, approach, internal roads and maneuvering and
parking spaces for vehicles.

6.
Take necessary permission for construction of the Rythu Bazar/ Farmers'
Market from the local bodies.

7.
Take permission for the use of land for the nonagricultural purpose from the
competent authority.

8.
Provide ancillary structures such as office, chaukidars quarters, water
supply, sanitary facilities, electricity etc..

9.
Provide sufficient plinth height for the stalls and other ancillary structures to
avoid flooding.

10.

Provide adequate fire fighting equipment.

11.

Maintain the buildings, roads and equipment properly.

12.

Maintain cleanliness and arrange for waste disposal to prevent pollution.

13.

Avoid unauthorized constructions.

14.

Ensure proper weighing cleaning and grading facilities.

15.

Ensure proper display of prices.

ANNEXURE

- II

DOS AND DONTS

DONTS

1.

Do not allow poor specification for constructions.

2.
Do not allow the vegetable waste to accumulate or rot in and around the
Rythu Bazar/ Farmers' Market.

3.
Do not allow the unauthorized persons to operate in the Rythu Bazar/
Farmers' Market for dilution of efficacy of the direct agricultural marketing
infrastructure system.