Rural markets and marketing

Field visit

Vegetable Mandi, Shadnagar

Group members:
(1) Amit Goswami
(2) Anish Rawat
(3) Bhadvat Srilatha
(4) M. Shoaib Shaikh
(5) Shrawan Kumar
(6) Sania Asleemat
(7) Vishal Mishra
Farmer’s case study 1/2 acre
Couliflower
Name- Shiva Kumar 1/4 acre
Age-24 summer
Tomato
Occupation- Farmer & sole retailer
Village- Madurapur 1/4 acre
Education- MBA (marketing) Fodder
Family members-3 5 acre land
1/2 acre
Total land holding- 5 acre
Fodder
Siva kumar sells directly into the mandi, he does not give commission to the
agent. From the 2 years he is coming in the mandi to retail his produce. rainy 2 acre
Income Amount ₹ expenditure Amount ₹ season Cotton
Cauliflower 30,000 Seed 10,000 2.5 acre
Fertilizers 3,750 Maize
Transportation 6,000 Income Amoun expenditure Amount
Total 30000 19,750 t
For summer season Cotton 40,000 Cotton 25,000
Profit from cauliflower: ₹10,250 Maize 10,000 Maize 20,000

Income Amount ₹ expenditure Amount ₹

Total 50,000 45,000
Tomato 10,000 Seed 4000
Fertilizers 900
Transportation 2000
Profit from Cotton & Maize: ₹5000
Total 10000 6900
Profit from tomato: ₹3100
 Farmer’s case study 1 acre Tomato

1/2 acre
Name- Vasan Anna Ladyfinger
Age-33
1/2 acre Snake-
Occupation- Farmer gourd
Village- Rasmalla guda summer
1/2 acre
Education- Intermediate Cucumber
Family members-5
Total land holding- 5 acre 1/2 acre Chilli
5 acre

1/2 acre Fodder

rainy 5 acre
season Maize

Last time during rainy season he sold Maize for ₹1,00,000. The input cost was ₹50,000 including the seed cost,
fertilizer cost, transportation cost etc. The gross profit he got was ₹50,000 approximately.
When Vasan approaches to the commission agent, the commission agent does the auction of the farmers commodity
and takes 4% of the selling amount
 Farmer’s case study 1 acre Tomato

Name- Ramalinga
Age-33 1 acre Brinjal
Occupation- Farmer summer
Village- Madhurapur 1/2 acre Chilli
Education- Graduate
Family members-4 10 acre
Total land holding- 10 acre 2.5 acre Cotton

5 acre
rainy season
Paddy

He came here to sold his 12 bags of brinjal each of it was of 30 kgs, but since due to hastening of demand he was
unable to sell , therefore he was compulsed to wait till evening .He told us that shelf-life of brinjal is 2 days so he has
to sell it today only.He said that low quality seeds are responsible for lowshelf-life of vegetables.
Commission agent’s case study
Agent 1

• Name : Nawab Khan

• Age :25
• Working along with his brother and father ( who has 40 years of
experience)
• Total transactions daily : 80,000 (approx.)
• Income from commission is 4% of the sale of the produce of the
farmers .
• He has to pay 1% market fee.
• He has to deposit Rs1,00,000 as caution fee.
Commission agent’s case study
Agent 2

• Name : Bal Reddy

• Age : 35
• Started working in place of his father.
• Total transactions daily : 20,000 (approx.)
• Income from commission is 6% of the sale of the produce of the
farmers .
• He has to pay 1% market fee.
• He has to deposit Rs1,00,000 as caution fee.
Commission agent’s case study
Agent 3

• Name : venu gopalrao

• Age : 28
• Started working in the family business
• Total transactions daily : 2 lack or above(approx.)
• Income from commission is 8% of the sale of the produce of the
farmers .
• He has to pay 1% market fee.
• He has to deposit Rs1,00,000 as caution fee.
• He has both commission and trader licence
Trader’s case study
Trader 1
• Name: Sanjay Yousuf
• Trader of Onion, Buys onion at ₹13/kg and sells at ₹15/kg.
• Income:
Total sale= sell 1500 kg onion per month
Total selling price of 50 kg onion = ₹2250 per day
Total cost of 50 kg onion = ₹1950 per day
Profit = ₹300 per day x 30 x 12 = ₹1,08,000
• Expenses:
Rent = ₹5000/year
Secretary = 1% of total sale = 3 x 30 x 12 = ₹1,080
• Net income: = 108000-(5000+1080) = ₹1,01,920
Trader 2
• Name: Raghvendra Reddy
• Trader of Tomato, Buys Tomato at ₹1/kg and sells at ₹2/kg.
• Income:
Total sale = sell 4000 kg Tomato per month
Total selling price of 100 kg Tomato = ₹ 200 per day
Profit=₹200 per day x 30 x 12 = ₹72,000
• Expenses:
Rent = ₹5000/year
Secretary = 1% of total sale = 720
• Net income: = 72,000-(5000+720) = ₹66,280
Market functionary
• Market functionaries nominated by the state government.
• Functions in the market include-
• To ensure documentation of the transactions happened.
• To exercise discretion of all the issues related to transaction
• To supervise weekly fee collection from commission agents.
• To ensure basic amenities & support mechanisms in the market to
facilitate trade.
Observations
• Traders & commission agents are same at many instances
• Lack of Proper storage facilities
• Heavy transport cost bounds farmer to either dump it in the market
or to be satisfy with low prices.
• Excess supply leads to dramatic reduction in prices of a particular
commodity, Thus leads to low prices offered
• Low quality seeds which hinders the shelf–life of the vegetable. Need
of high
Thank you 