Need of Market Led Need of Market Led Extension for Linking Extension for Linking Farmers to MarketsFarmers to Markets

Dr. R. P. SinghDr. R. P. Singh

Associate Director ExtensionAssociate Director ExtensionDirectorate of Extension EducationDirectorate of Extension Education

Changing paradigm of Changing paradigm of Indian Indian AgricultureAgriculture

Transformation from Subsistence to marketTransformation from Subsistence to market

driven-LPG.driven-LPG. Technology, institution, policy and markets.Technology, institution, policy and markets. Linking producers to markets is a major Linking producers to markets is a major

challenge.challenge. Access to information, capital and Access to information, capital and

effective transfer of technology is crucial.effective transfer of technology is crucial. Farmers quite often loose due to lack of Farmers quite often loose due to lack of

market information and access to market market information and access to market

Questions confronting the Questions confronting the farmersfarmers

Globalization of market –How to adjust?Globalization of market –How to adjust? Farmers need answers to questions like:Farmers need answers to questions like:

- What to produce?- What to produce?

- When to produce?- When to produce?

- How much to produce?- How much to produce?

- When and where to sell?- When and where to sell?

- Where to sell?- Where to sell?

- In what form to sell?- In what form to sell?

- What channels to sell his produce?- What channels to sell his produce? Key answer to the above Empower farmers in Key answer to the above Empower farmers in

both Production Market Oriented knowledgeboth Production Market Oriented knowledge..

Access to Extension InformationAccess to Extension Information

Needs of farmers are diverse and complex.Needs of farmers are diverse and complex. NSSO 2005-Over 50% of farmers do not NSSO 2005-Over 50% of farmers do not

have access to extension information.have access to extension information. 44% have some access. Of this, 22% has 44% have some access. Of this, 22% has

access through media (Radio 13% and TV access through media (Radio 13% and TV 9%).9%).

Lack of information hinders transfer of Lack of information hinders transfer of technology.technology.

Efforts are on to organize Marketing Efforts are on to organize Marketing Information Services. Information Services.

Need for Market Led Need for Market Led ExtensionExtension

Globalization / Economic liberalization-Globalization / Economic liberalization-Expansion of Market-more of agribusiness Expansion of Market-more of agribusiness and trade.and trade.

Changing consumers preference-move Changing consumers preference-move towards HVCs.towards HVCs.

Revolution in Information Communication Revolution in Information Communication Technology (ICT).Technology (ICT).

New trade opportunities within and outside New trade opportunities within and outside the country.the country.

Under exploited export opportunities-WTO.Under exploited export opportunities-WTO. Multiple players in agricultural trade. Multiple players in agricultural trade.

Challenges to Market-Led Challenges to Market-Led ExtensionExtension

Gigantic size of Extension System.Gigantic size of Extension System. Adoptions of Information Adoptions of Information

Technology.Technology. Market Intelligence.Market Intelligence. Extension Cadre Development.Extension Cadre Development. Reorganization of Extension System.Reorganization of Extension System.

Conventional Extension and Conventional Extension and Market Led Extension-Market Led Extension-

Comparison Comparison Concentrate on production Concentrate on production

oriented activities.oriented activities.

Supply driven.Supply driven.

Confines to domestic and Confines to domestic and household needs.household needs.

Technological support to Technological support to the farmers.the farmers.

Use of conventional Use of conventional communication tools for communication tools for TOT.TOT.

Guides what is to be Guides what is to be produced.produced.

Services through public Services through public sector and co-operatives. sector and co-operatives.

Concentrate on production Concentrate on production and Market / trade and Market / trade oriented activities.oriented activities.

Demand driven-profit Demand driven-profit orientation.orientation.

Market forces extends Market forces extends towards international towards international trade.trade.

Technological support Technological support followed by trade support.followed by trade support.

Use of ICT for TOT.Use of ICT for TOT.

Guides what and how Guides what and how much market needs when much market needs when to produce.to produce.

Moving towards public Moving towards public private partnership.private partnership.

Paradigm shift from Production-Led Paradigm shift from Production-Led Extension to Market-Led Extension Extension to Market-Led Extension

AspectsAspects Production-Led Production-Led ExtensionExtension

Market-Led Market-Led ExtensionExtension

Purpose / Purpose / ObjectiveObjective

Transfer of production Transfer of production technologiestechnologies

Enabling farmers to Enabling farmers to get optimum get optimum returns out of the returns out of the enterprise.enterprise.

Expected end Expected end resultsresults

Adoption of package Adoption of package of practices by most of of practices by most of the farmers.the farmers.

Adoption of GAP to Adoption of GAP to secure High returns.secure High returns.

Farmers seen as Farmers seen as Progressive farmer.Progressive farmer. Farmer as an “Agri Farmer as an “Agri Entrepreneur”Entrepreneur”

FocusFocus Production / yields Production / yields “Seed to Seed”“Seed to Seed”

Whole process as an Whole process as an enterprise End to enterprise End to EndEnd

AspectsAspects Production-Led ExtensionProduction-Led Extension Market-Led ExtensionMarket-Led Extension

TechnologyTechnology Fixed package Fixed package recommended for an agro-recommended for an agro-climatic zone covering very climatic zone covering very huge area irrespective of huge area irrespective of different farming situations.different farming situations.

Diverse baskets of Diverse baskets of package of practices package of practices suitable to local suitable to local situations / farming situations / farming systems. systems.

Extensionists’ Extensionists’ interactions interactions

Messages Messages

TrainingTraining

MotivatingMotivating

RecommendationsRecommendations

Joint analysis of the Joint analysis of the issues issues

Varied choices for Varied choices for adoptionadoption

ConsultancyConsultancy

Linkages / liaison Linkages / liaison Research-Extension-Farmer Research-Extension-Farmer Research-Extension-Research-Extension-Farmer-MarketFarmer-Market

Extensionists’ roleExtensionists’ role Limited to delivery mode Limited to delivery mode and feedback to research and feedback to research system.system.

Enriched with market Enriched with market intelligence besides the intelligence besides the TOT function TOT function

Establishment of Establishment of marketing and agro-marketing and agro-processing linkages processing linkages between farmer groups, between farmer groups, markets, and markets, and processors. processors.

ICT In AgricultureICT In Agriculture National commission on farmers-Establishment of National commission on farmers-Establishment of

Rural Knowledge Centres.Rural Knowledge Centres. National Informatics Centre GOI-Agricultural National Informatics Centre GOI-Agricultural

Information Division-ARISNET.Information Division-ARISNET. VISTARNET-Agril. Extension Information System VISTARNET-Agril. Extension Information System

Network.Network. Private initiatives-ITCe choupal, Mahindra Sulabh, Private initiatives-ITCe choupal, Mahindra Sulabh,

Parry Corners, Rallis-Kisan Kendra, TATA Kisan Parry Corners, Rallis-Kisan Kendra, TATA Kisan Sansar, Hariali Bazar, etc.Sansar, Hariali Bazar, etc.

Agriwatch-Information and Analysis on Agriwatch-Information and Analysis on commodities.commodities.

AGRIMARKETNET of DMI, KRISHIMARATAVAHINI of AGRIMARKETNET of DMI, KRISHIMARATAVAHINI of Karnataka state deptt. of Agri Marketing . Karnataka state deptt. of Agri Marketing .

Required InformationRequired Information Market network of the local area and the price Market network of the local area and the price

difference in various markets.difference in various markets. Network of storage and warehouse facilities Network of storage and warehouse facilities

available.available. Transport facilities.Transport facilities. Regular updating of market intelligence.Regular updating of market intelligence. Production technologies like improved varieties, Production technologies like improved varieties,

organic farming, usage of bio-fertilizers and bio-organic farming, usage of bio-fertilizers and bio-pesticides, IPM, INH and right methods of pesticides, IPM, INH and right methods of harvesting etc.harvesting etc.

Post-harvest management like processing, Post-harvest management like processing, grading, standardization of produce, value grading, standardization of produce, value addition, packaging, storage, certification, etc. addition, packaging, storage, certification, etc. with reference to food grains, fruits and with reference to food grains, fruits and vegetables, eggs, poultry, fish etc. vegetables, eggs, poultry, fish etc.

Recent Extension MethodologiesRecent Extension Methodologies1.1. Use of farmers’ organization like Farmers Interest Groups, Use of farmers’ organization like Farmers Interest Groups,

Commodity Groups and Self Help Groups.Commodity Groups and Self Help Groups.

2.2. Use participatory mode of out reach activities which Use participatory mode of out reach activities which includes:includes:

Farmers Participatory Research (FPR).Farmers Participatory Research (FPR).

Participatory Technology Development (PTD).Participatory Technology Development (PTD).

Participatory Technology Evaluation (PTE).Participatory Technology Evaluation (PTE).

Farmer Field Schools (FFS).Farmer Field Schools (FFS).

Rapid Rural Appraisal (RRA).Rapid Rural Appraisal (RRA).

Participatory Rural Appraisal (PRA).Participatory Rural Appraisal (PRA).

Participatory Learning Appraisal (PLA).Participatory Learning Appraisal (PLA).

3.3. Establishment of satellite forms for large scale Establishment of satellite forms for large scale demonstrations to showcase the utility of the technologies.demonstrations to showcase the utility of the technologies.

4.4. Use of ICT tools. Use of ICT tools.

Audit of local resources and facilitiesAudit of local resources and facilities Investigation of the area to familiarize with Investigation of the area to familiarize with

problems as well as the opportunities.problems as well as the opportunities. The extension officer’s role is to listen and learn.The extension officer’s role is to listen and learn. He should try to understand how farmers might He should try to understand how farmers might

react to new ideas and which farmers are likely to react to new ideas and which farmers are likely to be most positive.be most positive.

He should have a clear idea of the crops, the He should have a clear idea of the crops, the marketing system, the individuals and the marketing system, the individuals and the problems of the area.problems of the area.

He should have some idea of the possible He should have some idea of the possible solutions, which are worth investigating at the solutions, which are worth investigating at the end.end.

Stages in Promoting marketing Stages in Promoting marketing extensionextensionReview Stage:Review Stage:

Implementation of the action.Implementation of the action. Decision making.Decision making. Audit of local Resources.Audit of local Resources. Determining.Determining. What market wants.What market wants. Marketing system. Marketing system.

Determining what the market wants in Determining what the market wants in terms of product at present and in terms of product at present and in

futurefuture Finding out from the market, what product or Finding out from the market, what product or

products and process are wanted and in what products and process are wanted and in what form the customer wants.form the customer wants.

Who are currently supplies to the market? At Who are currently supplies to the market? At what times? At what prices? What volumes are what times? At what prices? What volumes are sold? How the produce is packed & presented? sold? How the produce is packed & presented? What kind of network exists?What kind of network exists?

Opinions of knowledgeable individuals, who are Opinions of knowledgeable individuals, who are commercially involved with trading.commercially involved with trading.

Market information-price data, volume of produce Market information-price data, volume of produce delivered, major intermediaries. delivered, major intermediaries.

The Marketing SystemThe Marketing SystemInvolves determining what the customer wants in Involves determining what the customer wants in

terms terms of service.of service.One has to find out the best way to work within the One has to find out the best way to work within the existing marketing system as the evolution of viable existing marketing system as the evolution of viable alternative takes time.alternative takes time.Needs to understand the following:Needs to understand the following:1.1. Produce distribution system.Produce distribution system.2.2. Actions and interactions among and between Actions and interactions among and between

various participants.various participants.3.3. Marketing channels and margins at various levels.Marketing channels and margins at various levels.4.4. Whole sales & middlemen selection as trade Whole sales & middlemen selection as trade

partners.partners.5.5. Market Services Available.Market Services Available.

Decision making and agreeing on an Decision making and agreeing on an action planaction plan

Involves choosing the best course of Involves choosing the best course of

action from among the alternatives action from among the alternatives

Extension workers has to decide.Extension workers has to decide.How the marketing problems of the How the marketing problems of the

area can be solved.area can be solved.The best way to transfer his plans The best way to transfer his plans

across the maximum number of across the maximum number of farmers.farmers.

Implementation of action Implementation of action plansplans

Pre-production advice.Pre-production advice.

Production planning.Production planning.

Marketing of produce.Marketing of produce.

Review StageReview Stage

The progress will be compared with The progress will be compared with the action plan drawn.the action plan drawn.

The new action plan will be laid and The new action plan will be laid and analysed through SWOT analysis.analysed through SWOT analysis.

Lesser the deviations from action Lesser the deviations from action plan more will be the rate of success.plan more will be the rate of success.

ConclusionConclusion

Paradigm shift from production Paradigm shift from production (supply) led to market (demand) led (supply) led to market (demand) led system of agricultural extension is system of agricultural extension is inevitable due to changing inevitable due to changing production and marketing scenario.production and marketing scenario.

ICT application in agricultural ICT application in agricultural extension and networking has just extension and networking has just begun but it must ensure quality, begun but it must ensure quality, timeliness reliability and adequacy. timeliness reliability and adequacy.