COA1EA1S

CHAP1ER DESCRIP1IOA PACE AO.

1. IA1RODUC1IOA

3-7
2. RESEARCH
ME1HODOLOCY

8-12
3. DESCRIP1IOA OF
1HE MARKE1

13-1
4. RESUL1 OF
FIADIACS

17-21
5. DISCUSSIOA

22
. COACLUSIOA AAD
RECOMMEADA1IOA


23-27

7. REFEREACE 28
CHAPTER-I

INTRUDUCTIUN
Agriculture in our country provides livelihood to about 70 oI the
population employs about 65-70 oI work Iorce and contributes about 17.5 to
GDP and nearly 16 to export earnings. Indian agriculture has made enormous
strides in the past 50 years, raising Iood grains production Irom 50 million tones to
over 217.2 million tones. In the process the country has progressed Irom a situation
oI Iood shortage and imports to one oI surpluses and exports. Having achieved
Iood suIIiciency, the aim now is to achieve
The increase in agriculture production, however, has brought in its wake
uneven development, across regions crops and also across diIIerent sections oI
Iarming community. In the decade oI nineties, a marked slackening in the pace oI
growth has occurred, pointing to the need Ior inIusing a new vitality in the
agricultural sector. Marketing activates arise primarily because oI Iorm place and
time variables. Require the Iood toe processed stored and transported. Thus, the
Iunction oI agricultural marketing system is to provide Iood to the consumer at the
proper place, at proper time in proper Iorm and at acceptable price.
In any planned economic development program, the exchange oI goods
assumes a very important role in maintaining equilibrium between the production
and consumption. Agricultural marketing wad still recently not Iully accepted as an
essential element in agricultural development in the countries oI Asia and Far East.
A rectiIication oI these deIiciencies was sought to be achieved by randomizing
various activated and standardizing various practices in diIIerent markets through
legislation. The improvement oI the system oI agricultural marketing was not only
to remove the handicaps Irom producer sellers and buIIering but also to increase
his income by ensuring him a Iair price. It has been rightly emphasized that the
marketing structure should keep in pace with development in production pattern
and cost structure. The role oI producer`s surplus in understanding the problem oI
disposal at the Iarm level has been rightly emphasized. The limitations in its use
have not been due importance markets arrival or perhaps a better and more
dependable criterion Ior analysis oI the quantum handled in the market. Markets
are important where supply and demand are balanced and where price Iormation
takes place. The eIIiciency oI pricing process inIluences the incentive provided to
the Iarmers and the stability oI agricultural markets. The planner oI a new market
should have clear understanding oI the likely charges, the marketing systems will
undergo during the course oI 10-20 years.
The layout oI market their location type oI building, their ownership management
and Iinancing policies to be worked out keeping in view the local trading practices
and also the economics oI alternative trading operations, The marketing oI
agricultural product is a business which doesn`t attract any reIraction such as social
or government Ior entry as a market middleman. ThereIore there are a number oI
middlemen between the producers and consumers. As a result the length oI the
marketing channel increases and the cost oI marketing and market margins go up.
IMPORTANCE OF RICE
Rice, wheat, and maize are the three leading Iood crops in the world; together they
directly supply more than 50 oI all calories consumed by the entire human
population. Wheat is the leader in area harvested each year with 214 million ha,
Iollowed by rice with 154 million ha and maize with 140 million ha. Human
consumption accounts Ior 85 oI total production Ior rice, compared with 72 Ior
wheat and 19 Ior maize.
Rice provides 21 oI global human per capita energy and 15 oI
per capita protein. rice protein ranks high in nutritional quality among cereals,
protein content is modest. Rice also provides minerals, vitamins, and Iiber,
although all constituents except carbohydrates are reduced by milling.
The world average consumption oI rice in 1999 was 58 kg, with the
highest intake in some Asian countries; Myanmar has the highest annual
consumption at 211 kg/person. Rice eaters and growers constitute the bulk oI the
world`s poor: according to the UNDP Human Development Report Ior 1997,
approximately 70 oI the world`s 1.3 billion poor people live in Asia.
Agricultural population densities on Asia`s rice producing lands are among the
highest in the world and continue to increase at a remarkable rate. Rapid
population growth puts increasing pressure on the already strained Iood-producing
resources. The aggregate population oI the less developed countries grew Irom 2.3
billion in 1965 to 4.4 billion in 1995. Asia accounted Ior 60 oI the global
population, about 92 oI the world`s rice production, and 90 oI global rice
consumption. Even with rice providing 3580 oI the total calories consumed in
Asia and with a slowing oI growth in total rice area, rice production more than kept
up with demand in 2000.
Largest producing countries of Rice 2009-2010
Country Rice Production
China Mt: 166,417,000(32.7)
India Mt: 132,013,000(26.0)
Indonesia Mt: 52,078,832(10.2)
Bangladesh Mt: 38,060,000(7.5)
Vietnam Mt: 34,518,600(6.8)
Thailand Mt: 27,000,000(5.3)

$TATEMENT OF THE PROBLEM
There are lots oI drawbacks in marketing system oI our country . The
cost involved in marketing oI produce is also very high due to involvement oI a
number oI middlemen in the marketing process. Due to improper marketing, the
commodities are not distributed evenly and the price oI the commodities varies
Irom region to region. The producer share in consumer`s rupee is also very low so
there is a great need to analyze the present marketing situation and improve it in
every possible way so that producer Iarmer get a good share in consumer`s rupee
and doesn`t Iace any problem in marketing their commodities.
1U$TIFICATION
This study will help in Iinding out various channels involved in
marketing oI Iood grain as well as producer`s share in consumer`s rupee. The
marketing oI Iood grains has to carry out the Iunction oI storage, transportation and
selling to the consumer spread throughout the country. The study will help us to
Iind out the loop holes existing in the marketing system, With the help oI this
study, various correction can be implemented to improve the marketing system so
that producer`s commodities will be evenly distributed.
OB1ECTIVE$

1. To identiIy the marketing channel involved in marketing oI Rice
2. To Iind out the marketing cost and margins oI various middlemen in
marketing oI Rice.
3. To Iind out the producer`s share in consumer`s rupee
4. To Iind out the problem involved in marketing oI produce and scope oI
improvement in the marketing process.

CHAPTER-II
METHODOLOGY
A.$ELECTION OF MARKET
The primary and secondary market was selected which was
nearest to our town and which deals in these commodities. It is selected due to
convenience in getting inIormation.
1. Primary Market
Regulated market Jari is one oI the most important primary markets oI
Allahabad district, where producer themselves bring their products direct to
this market and sell it, to either Kaccha arahatiya or wholesaler or direct
to the consumer.
2.$econdary Market
Mutthiganj is one oI the important secondary markets oI the Allahabad
district. Whole seller bring their produce in the market and sell it either
through commission agent or direct to the retailer .
$ELECTION OF PRODUCER$
In the jari market, there were lots oI producers who brought rice. Ten
Iarmers were randomly selected Ior rice, considering the amount oI produce
they were bringing to the market. As large Iarmers are more aware oI market
inIormation and maintain record oI their investment and returns, so they are
able to provide all latest and detailed inIormation about the market which was
important Ior our study.
$ELECTION OF COMMODITIE$
Rice was selected as it is a major Iood crop consumed in Allahabad district and
they have a big market as a Iood crop. Rice is a major khariI crop. The rice variety
taken under study is T-4 and T-6.
B. METHOD OF $TUDY
Direct interview method was selected Ior collecting data as it is convenient
to carry out and we get Iirst hand data. The inIormation obtained by using
this method is very genuine and there is very less chance oI any biasness in
the data. In this method, ten Iarmers were randomly who owns the
concerned crop and produces the crop in considerable amount. It is very
easy to collect the data about the Iarmers producing rice by simply asking
direct questions to them.
CHANNEL$ OF MARKETING
There are a number oI marketing channels involved in marketing oI Iood
grains. These are as Iollows:
1. Farmer-----Consumer
2. Farmer-------Wholesaler------Retailer--------Consumer
I. Producers
There were a number oI producer Iarmers in the Jari market who brought
their produce Irom the neighboring villages. There were all kind oI
producer like marginal, small and large Iarmer.

II. Kuccha Arhatiyas
In Jari market, there were 12 Kuccha Arhatiyas as a whole. But among
them, only 5 deals in the crop under my study viz. rice. So the required
inIormation was collected Irom these 5 persons only.
III. Wholesalers
The wholesalers act as Pucca Arhatiyas as they buy the produce Irom
Kuccha Arhatiyas and supply it to the Mutthiganj market which is one oI
the most important secondary markets oI Allahabad district.
IV. Retailers
There were lots oI retailers out there in Mutthiganj market. Two retailers
were randomly selected, one each Ior two crop, who are dealing with these
two commodities. The required inIormation was collected Irom the retailers
simply by direct interview method.
Time of Data Collection
The survey carried out during the month oI September to November,
2011. During the survey, we visited Jari market once and Mutthiganj
market once. The Iive visits helped us a lot in collecting market
inIormation Ior the research.




METHOD OF DATA COLLECTION
The current data were collected Irom the market during the month oI
study. Survey method was used Ior collecting the data. The Iarmers were
personally interviewed and relevant data was collected.
The data were collected Ior the Iollowing items:
Market Iunctionaries
Market Charges
Charges paid by produce, Arhatiyas, Wholesellers and retailers
Transportation Charges
Marketing channels involved in marketing oI the concerned
commodities
Margins oI various middlemen involved in marketing oI commodities







$tatistical tools
1. Tabulation method have been used to work out the marketing cost
involved, middlemen`s margin, and producer`s share in consumers
rupees etc.
2. Producer`s share in consumer`s rupee was calculated by using
Iollowing Iormula.
P (C M) x 100/ C
Where, P--- Producer`s share in consumers rupee

C---- Consumers prices

M---- Total marketing cost and middlemen`s margin

CHAPTER-III

DE$CRIPTION OF MARKET$
1. 1ARI MARKET (Primary Market)
Jari Market is one oI the signiIicant primary market located in
Allahabad district. Jari market is located on the Allahabad-Rewa road at a distance
oI 32 km. Irom AAIDU.This market belongs to the Karchana tehsil and having
good road, electricity, banks, telephones, cooperative societies and other Iacilities.
LAYOUT OF THE MARKET
The layout is not well planned and systematic. The area is covered by the
market is about 6000 sq.yards.The market is having a pucca walled compounds
and all producer keep their produce, their sanitation oI the market was not so good.
TRAN$ACTION$
The market deals in all kinds oI agricultural commodities, mainly those
which are non-perishable in nature. The market deals mostly in cereals and pulses.
These include Rice, wheat, Arhar, Gram, Urd, Moong etc.
TRAN$PORTATION FACILITIE$
There are various modes oI transportation to and Irom the market. The most
common means oI transport are cycles, bullock carts, tempo, tractors and trucks.
BU$INE$$ HOUR$
The market is held on everyday Irom 10 A.M. onwards. But the peak
business hours are Irom 10 A.M. to 5 P.M.

$TORAGE FACILITIE$
There are two godowns in the market constructed with brick walls and tin
rooI. These are used Ior temporary storage oI the produce. The total capacity oI the
storage is about 3000quintals.
MARKET ARRIVAL$
Most oI the commodities arrive during the post harvest period oI the crops.
But commodities are supplied throughout the year to the market as producers and
middlemen's use to store a considerable amount oI its produce.
RICE
Harvesting oI rice is done during the month oI sept. and oct. So market
arrivals oI rice at Jari market starts Irom sept.
WEIGHT$ AND MEA$URE$
In the market, it was observed that the sellers used standard weighing
measure and weights. The produce was mostly measured in tones and price was
also Iixed on this measure only.
MARKET CHARGE$
DiIIerent taxes and commission paid by the producer and sellers are
palledari charges, taulai charges, nikasi or octari chages and mandi samiti charges.
GRADING AND $TANDARDIZATION
There were no scientiIic grading and standardization observed in the Jari
market.


2. MUTTHIGAN1 MARKET ($ECONDARY MARKET)
Mutthiganj Market was one oI the most Iamous and signiIicant
secondary market in Allahabad district. Whole seller brings their produce in the
market and sells it either through commission agent or direct to the retailer.
LOCALITY
Mutthiganj is a big and signiIicant secondary market. It is spread over an
area oI 2 sq. K.M. There are large number oI retailers at Mutthiganj Market. They
are having pucca shops and godowns at the back oI their shop where they use to
store the commodities. The market has good communication Iacilities. The market
is governed by Nagar Mahapalika Allahabad city.
LAYOUT
The market is spread on both side oI the road which consists oI pucca stores.
The total area oI the market was around 2.5 sq. K.M. Most oI the retailers had their
godowns just behind their shops. The shops are made oI pucca building on both the
sides oI the road the market is well served by communication Iacilities like
telephone and telegram.
BU$INE$$ HOUR$
The market remains open all days oI a week except on Sunday. And the peak
business hour is 10 A.M. to 5 P.M.
$TORAGE FACILITIE$
It was observed that the retailers had good Iacilities Ior storing the
comm odities. Most oI the retailers had their godowns just behind their retail shops.


WEIGHT$ AND MEA$URE$
All the merchants used standard weighing equipments and weights to
measure the commodities. Open sale method is Iollowed in the market.
GRADING AND $TANDARDIZATION
In the market, it was observed there are no scientiIic grading in the market
but the commodities were categories according to their quality. DiIIerent prices
were also Iixed Ior commodities according to their quality.

CHAPTER-IV
RE$ULT$ AND DI$CU$$ION
The data Ior concerned verity oI Rice were collected and analyzed and the results
are discussed as presented in the Iollowing table.
Table-1
SL.
No.
Particulars Rice
Qty.
(in
qtls)
Rate
(Rs/qtls)
Amount
(Rs.)
1.A. Marketing charges paid by producer
(i) Transportation
(ii) Palledari changes
(iii) Taulai charges
10
10
2
1

100
20
10
Total marketing charges Paid by
producer
130
B. Sale price oI producer
or purchase price oI wholesaler
10 1600

16000

C. Net amount received by Producer (B-
A)
15870
2.A. Marketing charges paid by
wholesaler
(i) Palledari charges
(ii) Taulai charges
(iii) Cost oI gunny bags
(iv) Octari charges (nikasi)
10





2
1
13
2.5
oI total

20
10
130

396.75
or commission

(v) Transportation
commodity



150
Total
706.75
B. Total amount paid by
wholesaler (2A1B)
10
16706.25

C. Sale price oI wholesaler or purchase
price oI Retailer
10 2000 20000
D. Margin oI wholesaler
(2C-2B)

3293.25
3.A. Total charges paid by Retailer
(i) Palledari charges
(ii) Cleaning charges
(iii) Mandi samiti charges
or market Iees
(iv) Miscellaneous
Charges
10


2
20
2



20
200
20

25
Total marketing charges Paid by
retailer
265
B. Total amount paid by
Retailer (2C3A)
10 20265
C. Sale price or retailer or Purchase
price oI Consumer
10 2500 25000
D. Total margin oI Retailer (3C-3B) 10 4735

MARKETING MARGIN$ (Price spread)
Produces share in consumer's rupees
P C-M 100
C
P 25000-9000
25000
16000 O
2500


I. Marketing margins in rice
A. Percentage oI middlemen's margin Total middlemen's margin
C
8028.25
25000
32.113
B. Percentage oI marketing charges paid by wholesaler and retailer
Total marketing charges
C
971.75
25000
O
O
O
O
O
O
3.887


C. Percentage oI producers marketing charges
Marketing charges paid by producer
C
130
25000
0.52
D.Percentage oI Wholesaler margin
Total margin oI Wholesalers
C
3293.25
25000
13.173
E. Percentage oI Retailers margin
Total margin oI Retailers

4735
25000
18.94

O
O
O
O
O
O
Details oI the marketing margins in rice is given in table no.2 below:

Table-2
Sl
No.
Particulars Amount
(in Rs)
Percentage oI
Consumers rupee ()
1. Producers share 15870 64
2. Wholesaler margin 3293 13.173
3. Retailers margin 4735 18.94
4. Total marketing charges paid
wholesaler and retailer
971.75 3.887
5. Consumers price 25000 100

From the table, it is observed that among all the middlemen's retailers gets the
highest margin. The wholesaler pays the maximum share oI cost oI marketing.
They bear the cost oI bagging and transporting while bringing the produce Irom
various distant markets which are very scattered.
The cost oI marketing involves all the cost involved in moving the produce
Irom producer Iarmer to the ultimate consumer oI the produce. In the survey, it is
observed that marketing cost incurred by wholesaler is highest. The main cause oI
this high cost involvement is that they have to pay tax market to take out the
procured produce Irom market and also cost oI bagging is beared by the wholesaler
Ior convenience in transporting the produce. Retailers don't pay may extra cost Ior
bagging oI produce.
CHAPTER-V
CON$LU$ION/$UMMARY
The present study covers the marketing oI Rice. The primary market is
situated at Jari.Secondary market at Mutthiganj. Both the markets were selected
purposively Ior the study, in view oI their importance and also the proximity to
Allahabad Agricultural Deemed University. The producers were selected randomly
in the Jari market.





DEFECT$ Of MARKET
1. LAYOUT
There was no proper layout in the primary market. The ground was
uneven with very little provision Ior shelter Irom sun and rains. The inIrastructure
Iacilities like storage, shelter, water Iacilities etc. Ior animal etc. were not properly
arranged. There was lack oI sanitation in primary market. The secondary market
Mutthiganj good in this sense, with good Iacilities like communication transport,
storage Iacilities.


2. LACK OF ORGANI$ATION AMONG PRODUCER$
It was observed in the market that there was no co-operation among
the producer Iarmers. So, the middlemen's and brokers were taking advantage oI
this Iact in Iilling their pockets.
3. LACK OF GRADING AND $TANDARDIZATION
The Iarmers simply use to bring the produce oI the market. They
never use to do grading and standardizing oI their produce. Most oI the Iarmers in
Jari Market were ignoring grading and standardizing oI their produce.
4.LACK OF TRAN$PORTATION FACILITIE$
The village roads were well connected to the Jari Market. But the
condition oI the village road was very worse. Rainy season adds to the woes oI the
Iarmer as the roads gets very muddy and it becomes impossible to bring the
produce to the market. So they preIer to sell the produce in the village itselI at a
very low rate.
5. FINANCING
In the market, it was observed that there were no proper institutional
agencies to Iinance the producers. The producers were Iinanced by the local money
lenders and big Iarmers at a much higher rate oI interest against the security oI
their standing crops.
6.LACK OF $TORAGE FACILITIE$
The Iarmer doesn't have any proper storage Iacility at the Iarm level.
So they are bound to sell their produce, as soon as possible, aIter harvesting
irrespective oI the price prevailing on the market.

. LACK OF MARKET INFORMATION
The Iarmer is unaware oI the market inIormation and hence, unable to
Iix price Ior the produce judiciously. This is the main reason behind the price
Iluctuation among diIIerent producers Ior same commodity oI same quality.
8. INTERMEDIARIE$
There were a large number oI middlemen's involved in marketing oI
produce. This increases the price spread oI the commodity Irom producer to
consumer and also reduces producers share in consumer`s rupees.
9. MALPRACTICE$ IN THE MARKET
The Iarmers are supposed to pay a good amount in the name oI various
unauthorized tax. Since these taxes are paid Irom long time, the Iarmers cannot
deny Irom paying these tax. Some are also asking Ior shares in the name oI
religious practices etc.







$UGGE$TION$
1. INFRA$TRUCTURE DEVELOPMENT OF THE MARKET
The inIrastructure oI the market should be improved, so that is can
accommodate a large number oI Iarmers and their produce. It should also provide
Ior proper storage Iacility to the Iarmer produce.
A. LAYOUT OF THE MARKET
The location Ior various Iarm structures in the Jari should be scientiIically
assigned in a systematic way, so that it provides all the Iacilities oI a market.
Sanitation in the market should be given maximum priority.
B. CO-OPERATIVE MARKETING $OCIETIE$
Co-operative marketing societies should be Iormed in the market, so that the
producers can avail credit against their produce.
C. IMPROVEMENT OF COMMUNICATION FACILITY
There roads connecting village to the market should be improved, so that the
Iarmer doesn't have my inconvenience in bringing their produce to the market.
2. $TANDARD WEIGHT AND MEA$URE$
Use oI local weights and measures in the market should be restricted. The
metric system oI measurement should be used Ior weighing oI the produce in the
market Ior convenience oI both the producer seller and buyers as it is universally
recognized.

3. GRADING AND $TANDARDIZATION
The Iarm produce should be graded and standardized according to the
quality oI the produce. This will help the producer to Ietch a good price Ior his
produce.
4. MARKET INTELLIGENCE
The market authority should make the Iarmer aware oI the price prevailing
in the market Ior diIIerent commodities. This can be done by arranging a big
display at the entrance oI the market showing various prices oI the commodities
prevailing in the market.
5. LICEN$ED MIDDLEMEN
Only licensed middlemen's should be allowed to Iacilitate the marketing oI
the produce. This will reduce the number oI middlemen's in the market and hence,
low chances oI exploiting the Iarmers.

CHAPTER-VI

REFERENCE$

1. www.google.comand www.wikipedia.com
2. Research Report on Marketing OI Rice
3. Department Library and Central Library
4. Research methodology Book by S.R.Vajpayi
5. Marketing Management Book by Phillip Kottler