PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the...
Transcript of PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the...
i
UNIVERSITY GRANTS COMMISSION
BAHADUR SHAH ZAFAR MARG NEW DELHI-110 002
Final Report of the work done on the Minor Research Project
PERFORMANCE EVALUATION OF APMC IN KARNATAKA A CASE STUDY OF GULBARGA DIVISION
(File No MRP(H)-178411-12KAGU058UGC-SWRO dated 24092013)
By DrSANGAPPA SRAMPURE
Principal Investigator Department of Commerce amp Management
Government First Grade College Shorapur District Yadgir
Submitted to UNIVERSITY GRANTS COMMISSION
SOUTH-WESTERN REGIONAL OFFICE PK BLOCK PALACE ROAD
BANGALORE
AUGUST 2015
ii
iii
iv
ACKNOWLEDGEMENT
With great sense of gratitude I extend my special thanks to the UGC SWRO
Bangalore for funding me to undertake the Minor Research Project
I extend my sincere thanks to all the staff of Government First Grade College
Shorapur for their kind cooperation
I am very much grateful to DrSantosh Singh Associate Professor
Government First Grade College Sedam for his help and cooperation during the
course of my research
I would also like to thanks to Micro Computers Gulbarga for their excellent
job of compiling this Minor Research Project in time
SANGAPPA RAMPURE
v
CONTENTS
Sl No Chapter Page
No
1 INTRODUCTION AND RESEARCH DESIGN 01
2 FUNCTIONS AND TRADE PRACTICES ON APMCs 11
3 CUSTOMER PERCEPTION ABOUT MARKETING MANAGEMENT OF APMC IN GULBARGA DIVISION
42
4 PERFORMANCE EVALUATION OF APMCs 89
5 FINDINGS SUGGESTIONS AND CONCLUSION 122
6 BIBLIOGRAPHY 126
7 APPENDICES 131
1
CHAPTER-I INTRODUCTION AND RESEARCH DESIGN
11 INTRODUCTION
India is such a vast country which derives fifty percent of its national income
from agriculture The marketing methods in agricultural produce different from
country to country state to state and also within state This gives considerable scope
for the study of marketing of agricultural produce in the various states of the country
Agricultural marketing practices need to be uniform in the interest of developing
wider markets for better prices For this reason only many states have passed acts
regulating the marketing of agricultural produce in the state to reduce them to a
common practice and to avoid the exploitation of the primary producers and also to
give better prices for his produce
Organized marketing of agricultural commodities has been promoted in the
country through a network of regulated markets Most of the State governments and
Union Territories have enacted legislations (APMC Act) to provide for regulation of
agricultural produce markets While by the end of 1950 there were 286 regulated
markets in the country today the number stands at 7921 (3132014) Besides the
country has 29191 rural periodical markets about 15 per cent of which function
under the ambit of regulation The advent of regulated markets has helped in
mitigating the market handicaps of producerssellers at the wholesale assembling
level But the rural periodic markets in general and the tribal markets in particular
remained out of its developmental ambit
The central government has advised states and union territories to amend their
respective APMC laws in order to avail assistance for developing and strengthening
agricultural marketing infrastructure In the present scenario with the changing
picture in world trade system there has been growing demand for de-regulating the
agricultural markets and establishment of private markets some initiatives have
already been taken in this direction The central government has proposed
amendments in state Agricultural Produce Marketing (Regulation) Act The same is
expected to take place in the near future The said amendments have been proposed
2
with the aim of helping the farmers and hence market committees are obliged to
implement these amendments The Karnataka State Agricultural Marketing Board was
established on 1st September 1972 as per section 100 of the Karnataka Agricultural
Produce Marketing (Regulation) Act 1966 and Rules 1968 The Board acts as a
liaison agency between the market committees and the government of Karnataka for
all-round development of agricultural marketing in the state
12 NEED FOR THE STUDY
The marketing services available in the regulated markets have been very
useful in overcoming various problems of sellers of farm produce like the middle
menrsquos malpractices distress and forced sales at village level under weighing and
other malpractices by the middlemen and also the village money lenders etc
Majority of the agricultural produce is being sold at the village itself by
farmers immediately after harvesting due to urgent financial requirements and lack of
transport facilities Besides a large number of small holders of agricultural land
Hence the quantity of produce is too small for brining it to urban market place for the
purpose of selling at better prices
Establishment of regulated markets in various urban centers has facilitated
marketing of surplus agricultural produce at fair and reasonable prices In evaluating
the government marketing intervention programmes a distinction has to be made
between (a) the nature and degree of marketing intervention to achieve a defined
policy objectives and (b) the most cost effective way of implementing the marketing
intervention scheme However the centers of regulated markets are inadequate in
relation to the number of villages and vast farm sector Hence there is scope for
increasing of number of APMCs and submarket yards in addition to improving the
functioning of existing APMCs to ensure better services and adequate infrastructural
facilities at the premises of these markets A majority of these regulated markets
suffers from certain deficiencies in their functioning
In view of this the present study is undertaken to analyze the extent to which
the inadequacy of marketing of services are encountered by the farmers and other
functionaries in the APMC at Gulbarga division as a whole The research confines
3
itself to the management of APMCs in Karnataka in general and Gulbarga Bidar
Raichur Koppal and Bellary district APMCs in particular The total APMCs consist
for the present study is five APMCs from each district of study area
13 REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related
areas of the subject to find out and to fill up the research gaps Literature on
agricultural marketing can generally be found in a number of books that are available
on agricultural economics rural marketing and regulated markets Only very few
studies were undertaken on APMC and its performance in both agricultural marketing
and development The important studies relating to the present investigation are
referred below
Gopal Rao (1974) has undertaken the study on APMCs and has analyzed their
working in detail The author has confined his study to the four districts of Bombay
Karnataka region through a survey of the markets in the region
Ravirsquos (1975) work analyses the marketing problems of coconut and copra in
Tipatur and Arasikere regulated markets of Karnataka In this area coconut marketing
is dominated by village sales (66) followed by sales through commission agents
(16) and through wholesalers (about 11) and the rest directly by the farmers
(about 7)
Bhogappa (1982) has undertaken the study on ldquoMarketing of agricultural
produce in Gulbarga division of Karnatakardquo which covers only the APMCs of
Gulbarga Revenue Division He has made a special study of the effects of draught and
draught prone areas He has analyzed the special problems of the markets in ldquoAyacutrdquo
areas
Ramaswamy (1984) has submitted the thesis on ldquoA Critical Study of the
Working of Regulated Markets in Tamil Nadu with special reference to Coimbatore
and Periyar districtsrdquo This was the first attempt to assess the applicability of the Act
in Tamil Nadu which has thrown a light on cropping pattern
4
Rayudu (1985) highlighted the five aspects of cardamom marketing designed
by Cardomon Board The Board collects data on global requirements position of
supply conducting market survey for planning implementing and evaluation The
findings in this study could be useful in suitable applications for the finer aspects in
the marketing of similar products
Biradar (1989) observed that there was no incentive scheme for farmers It is
therefore necessary to start the incentive programmes like providing higher prices for
their commodities agricultural inputs at concessional rates and charging lower market
make regulated markets more attractive to the farmers These suggestions have a good
deal of subsidy components on the part of the Government
Selvamurugan and Mohan Sundaram (1990) in their study on the Coimbatore
district concluded that the crossandra in Coimbatore district concluded that the
corrssandra farmers share had been reduced from 3256 percent to 2423 percent
during the lean season Though the street vendors margin had also been reduced from
2328 to 1460 percent the share of commission agents and wholesalers had increased
to large extent ie from 4416 to 6107 per cent
Reddy (1991) conducted a study on marketing channels and marketing
margins of maize in Andhra Pradesh The study revealed that the producers share was
significantly high (8664 to 8687) in the case of Producer to Retailer to Consumer
channel as compared to corresponding share of producer (6314 to 7067) in case of
second channel ie Producer to Wholesaler to Retailer to Consumer
Nagraj and Chandrakant (1992) conducted a study on market performance of
perishables In the study the major marketing channel for vegetables was as below
Producer to Commission agent to Retailer to Consumer
The study could be of much relevance for researches in similar areas of agricultural
marketing
Biswas and Karpate (1994) observed the importance of Maharashtra State
Tribal Development Corporation (MSTDC) in marketing of minor forest produce
The tribal of the area were assured of basic minimum price for their produce notified
5
by the collector of the district The payments in normal course were made
immediately and saved them from exploitation by the middlemen
Mundinamani and Naik (1994) concluded that the per marketing cost of potato
was Rs 2074 as compared to Rs 2261 for brinjal Rs 2325 for onion Rs 2147 for
tomato Rs 5692 for dry chilly Rs 2975 for cotton and Rs 1936 for groundnut
The factors for differences in marketing cost of such agricultural produce need to be
probed by further studies
Atibudhi and Prusty (1995) have studied the marketing margins of Niger in
Rayagada district of Orissa The study concluded that the presence of co-operative
societies in marketing channel reduces the marketing margins and increases the
producers share in consumers rupee Marketing costs were the lowest in the co-
operative channel But marketing costs for storage procurement and transport were
higher for the same
Pawar (1996) has conducted a study on marketing surplus and price spread of
groundnut in Marathwada region of Maharashtra which is the most important
groundnut growing zone where 49 percent of the land is used to grow groundnut The
study concluded that distress sale of ground nut was found in small farmers but
medium and large farmers kept their surplus for future sale to get maximum price
Krishnaih (1998) has conducted a study to identify the marketing channels of
cotton and to analyze the price spread in these channels where he has suggested 7
different channels on distribution of cotton His effort is quite appreciable and it offers
for further research work on the topic However he found that while marketing of
cotton (kapas) majority of the farmers chose the channel in which the role of
commission agent was prominent
Paty (2000) applied the techniques of marketing information system the
agricultural marketing He has explained the concept with flow diagram of the
Integrated Agricultural Marketing Information System which is quite useful for its
practical applications
6
Basavaraj et al (2001) have made it very clear in their article that Karnataka
ranks fifth among the oil seed producing states in the country with an area of
1200135 hectares and a production of 945501 tones during 1994-95 Groundnut
sunflower safflower sesamum and castor were the major oil seeds produced in the
state They have made good policy implications in their study
Jayarathnam (2002) in her study on farmers market (Uzhavar Sandhai) in
Tamil Nadu pointed out the problems in cultivation transportation marketing and
pricing of vegetables Even she has given strengths weaknesses opportunities and
threats of vegetable marketing in Uzhavar Sandais of Tamil Nadu
Von Oppen and Gabadambi (2002) in their research paper have observed
market access impact on agricultural productivity lessons from thirteen chapters in
which they have concluded by stating market access and infrastructure are powerful
tools to commercialize agriculture in developing countries They increase aggregate
productivity initially via specialization and at a later stage via intensification
Sherman Roger (2007) undertook a study on market regulation gives readers
the economic intuition to analyze the history of antitrust and regulation diagnose
current corporate strategy and evaluate possible policy recommendations Roger
Sherman grounds modern examples in historical context and develops thought
provoking discussions to motivate readers from many different backgrounds
Introduction to market regulation competition as a market regulator problems for
competition as regulator
14 STATEMENT OF THE PROBLEM
The farming is largely dependent on the efficient marketing of the products
So the governments have to be very particular and watch all the market operations to
remain self-sufficient in food and to produce the goods for export to other countries
In the process of planning though the agriculture was given high priority for its
development but much attention was not given for the improvement of marketing
But in various states the agricultural marketing boards were established with the
objective to remove all the problems of markets and to regulate the markets for
increasing the efficiency in marketing It is found from various previous studies that
7
the regulated markets donrsquot have adequate and scientific grading facilities resulting in
substantial loss to the farmers excess charging of deductions in the form of
weighment commission etc are still prevailing at present in the regulated markets by
the commission agents or traders while making the payments to the farmers Hence
there is a need to undertake a study of the working of regulated markets in relation to
the responses of producer seller and other market functionaries regarding various
aspects of management of regulated markets The present research work attempted to
examine how the organized markets are working and to assess their role in
facilitating an orderly marketing of agricultural produce in the selected APMCs in
Gulbarga division
On the top of it the Gulbarga division is highly backward with all the
indicators of the backwardness which leaves considerable scope for exploitation by
the money lenders-cum-merchants These contrasts in the division call for different
approaches to marketing management and hence the study reveals interesting results
valuable for policy decisions This study of the division of Gulbarga is of immense
benefit for the economic strategy in the marketing of agricultural produce The study
is also aimed at pointing out various malpractices prevailing in the marketing
management lack of infrastructure storage facilities credit availability and effective
central markets this has resulted lack of innovations in agricultural production and
operations Many studies have been carried out to assess the impact of various
malpractices prevailing in marketing management on production of agricultural
produce However no study has been made to assess the role played by the APMCs in
the agricultural marketing in Gulbarga division highlighting whether these have
succeeded in achieving its objective if not what were the causes and what corrective
measures would have helped it in over coming the problems The present study is a
contribution in this direction
15 OBJECTIVES OF THE STUDY
The following are the objectives set for the study
1) To study the role of APMCs in filling the gaps and deficiencies regarding
agricultural marketing in Karnataka
2) To understand the amenities and facilities at the APMCs and to find out
inadequacies prevalent in APMCs in Gulbarga division
8
3) To know the trade practices in the area under consideration and the extent of
benefits to sellers through organized markets
4) To analyze the farmers responses towards regulated markets as well as market
participants
5) To critically examine the over all performance of APMCs and to identify the
area of improvement in the efficiency and also to offer suggestions to develop
an effective marketing system in Gulbarga division
16 RESEARCH METHODOLOGY
The study is mainly based on both primary data and secondary data The study
covers one broad division of the Karnataka state a survey method is adopted ie
through the pre-tested interview schedules addressed to the sample size of farmers and
market functionaries An unscheduled interview is also conducted to the regional
officials of KSAMB project officer and agricultural departments as well as APMCs
officials
Separate schedules were drawn tested and addressed to market committees
agricultural producers and market functionaries The questionnaires administered to
farmers were 250 in total at the rate of approximately 20 from each district market
All the farmers were representative producers for each market categorized on the
basis of the land holding and also marketable surplus brought to the market for sale
The questionnaire administered to the market participants were 150 in total
covering 20 market functionaries from each district in total sample size market
functionaries includes traders (wholesaler and retailer) commission agents exporters
importers processors and hamalies etc
17 SAMPLE DESIGN
A stratified random sampling method was adopted to drawn the final sample
The Gulbarga division consist of Bidar Gulbarga Raichur Koppal and Bellary
district from each district approximately 50 farmers were selected along with this 30
market functionaries from each district were selected
9
18 DATA ANALYSIS
The data collected from both primary and secondary was processed and
reduced to simple tables in order to present the matter clearly The suitable financial
statement analysis techniques were used to draw the correct conclusion Ratio
analysis which is most powerful and universally used technique for the analysis of
financial performance of APMCs in Gulbarga division
Analysis of variance technique is employed to test whether there is any
statistical significance in sales in different markets Apart from this averages and
percentages are used Graphs maps chart and diagrammatic representation of data
was suitably employed to highlight the significance of the data
19 PERIOD OF THE STUDY
The present study covers the period of five years commencing from 2009-10
to 2013-14 The performance of various items such as sales amenities infrastructure
and facilities of APMCs in Gulbarga division was studies for five years
Due to the wide operational activities of APMCs for agricultural marketing the
study period limited to five years to analyze its role in Karnataka with reference to
Gulbarga division
110 LIMITATIONS OF THE STUDY
The study is not completely free from limitations
1) The study is restricted only Gulbarga Division
2) Only five years period is taken for the purpose of the study because of time
constraints
3) The study is depending on the primary data also some of the respondents give
the poor response however every care has been taken to ensure that
authenticity of the data gathered
4) Some of the markets and the sub markets are so small and irresponsible that no
data is available nor any records of arrivals and disposals The records
maintained at the submarkets in the division are probably not available and
non reliable
10
111 CHAPTERISATION OF THE RESEARCH WORK
The whole research study has been presented in seven chapters
The First chapter deals with the introduction need of the study review of
some of important previous literatures statement of the problem
objectives of the study research methodology employed period of the
study limitations of the study techniques used for data analysis as well as
the chaptarisation of the study
The Second chapter deals with the various functions of the APMCs their
activities And also contains in brief about the trade practices preventing at
present in Gulbarga division as well as the data collected from the market
participants through questionnaire were analyzed to know the level of
satisfaction towards the preventing trade practices in selected APMCs in
Gulbarga division
Chapter Third deals with the opinion collected from the farmers towards
the marketing of their produce as well as their attitude towards regulated
market
Chapter Fourth deals with the financial performance and position during
five years of study period
The Fifth chapter deals with the findings suggestion and conclusions
11
CHAPTER-II FUNCTIONS AND TRADE PRACTICES ON APMCs
INTRODUCTION
The functionaries have their own set up They may be individuals partners or
cooperatives who may buy and sell on ready and future basis at a price determined by
forces of supply and demand Each functionary renders some services in the process
of marketing and also earns a varying margin of profit for himself This procedure
makes marketing rather complicated and inflates the price of the produce The nature
of some of the agricultural products eg their bulk form and perishability and their
seasonal availability further add to the complexity of agricultural marketing
Farmers and the various functionaries working in market face numerous
problems in orange fruit trading Farmers either sell their produce to the pre-harvest
contractor before harvest or they sell it in the nearby Agricultural Produce Market
Committee
When the farmers sell their produce in the Agricultural Produce Market
Committee they face following problems
High commission charges
High transportation and loading and unloading charges
No guarantee of remunerative prices
Delayed payment by commission agents
Functionaries working in the market also face various problems The pre-
harvest contractors who purchase the fruits from the farmers face the problems while
dealing with the farmers These problems arise mainly due to
Lapses on the part of farmers in the management of garden resulting in
deterioration of quality of fruits
Problems of natural calamities (theft of fruits losses due to rains pest etc)
Problems of storage facilities (lack of cold storage at local place)
Packing problem (costly packing material and non-availability of skilled
labour)
12
Transport problems (high transportation cost and non-availability of transport
means in time)
Grading problems (non-availability of suitable mechanical graders)
The success or failure of any market depends upon the functionaries existing
in the market Hence the role of functionaries is very important in smooth conduct of
market functions
It is compulsory according to KAPM (R) Act 1966 for every functionary
functioning in the APMCs to take a valid license from the respective APMC where it
is established by paying the necessary fees to the APMCs
Description of Market Functionaries
Following is the list of important functionaries existing in different APMCs of
the study area
i) Commission agents ii) Traders
iii) Retail traders iv) Weighmen
v) Hamals vi) Lady hamals
vii) Transporters viii) Cartmen
ix) Brokers x) Exporters
xi) Importers xii) Processors
xiii) Ginners xiv) Pressors
xv) Crushers xvi) Stockiest
xvii) Warehousemen
It is very essential to understand each of these functionaries and their activities
in detail
i) Commission Agents
Commission agent means a person who in the ordinary course of business
makes or offers to make a purchase or sale of agricultural produce on behalf of the
owner or seller or purchaser of such agricultural produce for commission
13
Commission agents are called so because of the commission they take from
the traders on the total sales as fixed by the government They facilitate farmers to
sell the agricultural produce brought into market yard for a good price at an
appropriate time However as per the bye-laws of market committees some person
cannot act both as commission agent and trader
Commission agents are the connecting link between the farmers and the
buyers When the crop grown by the farmer enters the market it goes to the
systematically channalised commission agents
The agents help the market committee to classify the goods brought by the
farmers and getting them weighed by the specified weighmenThese agents sell the
goods in the market on behalf of farmers and if a farmer does not want to sell his
goods for the time being at the prevailing market price the agents stores the goods in
their godowns and takes the responsibility of preserving the goods These agents not
only help the buyers to get a variety of goods at a place but also help the farmers to
sell their goods effortlessly In the form of market fee the buyer has to pay 1 percent
of the sale price of goods which is collected by the agents and credited to the market
committee Agents also have the responsibility of crediting the total amount of the
sales to the farmers The agents enjoy the right to extract the full amount of the
produce from the buyers
ii) Traders
Trader means the person who buys notified agricultural produce either for
himself or as agent of one or more persons for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of domestic
consumption
The trader will fix a reasonable price for the farmers produce in consolation
with the commission agents and with the consent of the farmers they purchase the
produce and the full amount will be paid to the commission agents Sometimes the
traders buy the produce for their own business purposes or on behalf of big companies
or businessmen Under these circumstances the goods will be sent to the respective
people
14
iii) Retail Traders
Retail trader mean the person who holds in stock at a time not exceeding
fifteen quintals of two or more kinds of agricultural produce together or not
exceeding six quintals of a single agricultural produce
The major function of a retail trader is to undertake retail salesRetail sale
means the sale of notified agricultural produce to a consumer for domestic
consumption not exceeding such quantity as the market committee may by bye laws
or standing orders determine
Usually they buy agricultural produce from the market yard and sell it in retail
market established in cities They assist the small buyers in procuring the agricultural
produce in small quantities for the purpose of domestic use
iv) Weighmen
As their name itself suggests the weighmen supervise the weighment of the
agricultural produce entering into the APMC yard
Certain produce such as cotton get weighted as soon as they enter the market
yard while the rest of the produce are weighted after sales Under these
circumstances it becomes the duty of the weighmen to safeguard the interest of the
farmers and to see that there is no discrepancy in weighing their goods Day to day
report of the produce weighed along with their weighment slip has to be filed with the
market committee by the weighmen It is the duty of these weighmen to visit the
various shops in the market yard and to supervise the weighing of different goods
v) Hamals
In order to facilitate the smooth functioning of the various activities of the
marketing committee hamals perform a very special duty As these people perform a
strenuous physical work they are called hamals
The work of the hamals start with the produce entering into the market yard
and ends with the produce going out of the yard When the farmer brings his produce
15
into the market yard either by a cart tractor or by lorry the hamals unload the
produce at the commission agents shops If the produce is cotton the hamals get it
weighted immediately after unloading and if the produce are other than cotton they
are stored in the godowns of the commission agents On the day of the tender or
auction the samples of the various produce are kept aside by the hamals who help the
traders to fix a reasonable price for the produce After the completion of business
deals except cotton all other produce are weighed and loaded into the vehicles of the
traders To perform these various tasks the hamals charge the amount fixed by the
APMC and get it from the concerned parties
vi) Lady Hamals
The female hamals who are working in APMCs by procuring a valid license
are known as lady hamals Along with the male hamals lady hamals are also found
in some of the APMCs like Hubli Gadag and Ranebennur They perform activities
like screening cleaning assisting males hamals in weighment keeping samples for
tender etc
vii) Transporters
In the preview of market committee the people who help to transport the
goods from one place to another are called transporters The tractors and truckers are
performing the duties of transporters Transporters are considered to be the important
market functionaries working in APMC yard These peoples are helping the farmers
to bring the agricultural produce from the place of production or agricultural yard to
market yard Existence of large number of transporters in the market yard helps for
the smooth functioning of marketing activities
viii) Cartmen
Along with the modern transportation facilities such as trucks and autos still
cartmens are playing greater role for the smooth functioning of market activities
Loading and unloading of bags from trucks to godown and vice-versa are performing
by cartmens When the agricultural produce need to transfer from one place to another
place within the market yard is done by cartmen
16
ix) Brokers
Brokers are the agents middle menrsquos in the market working as link between
farmers and buyers In many ways brokers are assisting the farmers by giving
valuable advises with regard to financing of selling to get better prices At the same
time they also help by supplying bulk agriculture produce to buyer
x) Exporters
Exporter means the person other than a producer who exports goods or cause
goods to be exported on onesrsquo own account or as agent of another person from the
market area outside such area for the purpose of selling processing manufacturing or
for any other purpose except for the purpose of onersquos own domestic consumption
The meaning of exporter shall not include a public carrier
At times when there is a bumper crop the poor farmer has to incur heavy
losses During such moments of crisis the exporters come into the scene and purchase
the crops from the farmers and export the same to some other markets for sale or
processing This brings about a balance between the demand and supply and saves the
farmers from the crisis
xi) Importers
Importer means the person other than a producer who imports goods or causes
goods to be imported one onersquos own account or as agent of another person from the
outside market area with in the such area for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of onersquos own domestic
consumption The definition of importer shall not include a public carrier
Function of Importers
As and when there is scarcity of any goods in the market and there is a lot of
demand for the same and considering the overall demand and supply of the market
the importers import the goods from different markets and sell them in the local
market
17
xii) Processors
The goods purchased at the market yard have to undergo different stages and
processes to finally reach the customer In order to facilitate this work different people
perform their duties These people are called processors viz gins press
decorticators oil mills flour mills and dal mills etc these different industries perform
their own essential duties
These industrialists perform their duties to see that the goods available in the
market in their crude form are made ready for use After having purchased the goods
they make them ready for use with the help of these processors On certain occasions
the processors themselves purchase the goods process them and self them when they
are ready for use These processors also should have the license from the market
committee
xiii) Ginners
They are the licensed functionaries who are performing ginning activities of
cotton by procuring valid license from APMCs The purchasers of cotton want to
convert their unginned cotton into ginned cotton In such case ginners will help them
to gin their cotton and separate pure cotton from cotton seeds
xiv) Pressors
Once the cotton is ginned it will come to pressors for conversion into cotton
bales where licensed pressors undertake the work of pressing In order to transport
the cotton from the place of growing and marketing to textile mills at different places
they have to be systematically packed in compact form of cotton bails The ginned
cotton will come to press of the pressors where they press and pack it properly into
cotton bales
xv) Crushers
There are certain licensed crushers who perform the activity of crushing oils
seeds into oil The traders who buy oil seeds from the market wants to convert it into
oil for further marketing and transportation In such case crushers situated near the
various market yards will help them to get pure oil by getting their seeds crushed and
screened at their crushing units
18
xvi) Stockiest
The people who purchase the produce at the market yard and store it for some
time and then sell it are called stockiest The stockiest also should have license
When all the farmers bring their produce to the market yard there will be glut in the
market supply and deficiency of the purchasers which cause the prices to come down
Under these circumstances to protect the farmer from the loss the stockiest purchases
the goods at the market yard and stock it in their storehouse to sell them when there is
a demand for that commodity
xvii) Warehousemen
The farmers are provided with the warehouses to store the produce which
come under the jurisdiction of the market committee ldquoWarehouserdquo means any
building structure or other protected enclosure which is or may be used for the
purpose of storing agricultural produce being goods on behalf of the depositors but
does not include cloak rooms attached to hotels railway stations the premises of
other public carriers and the life The person who supervises the warehouse activities
is called warehouseman
A farmer may not want to sell his produce because of the fall in the prices or
may want to store the goods for the purpose of sowing but does not have enough
space to store Having realized this problem of the farmers the government has
provided the warehouses in all the important market yards so that the farmers can
store their goods as long as they want to
The main task of the warehousemen is to stock the goods of the farmers
properly by sprinkling pesticides and protecting them from the insects and pests and
to return the goods of the farmers to them when they ask for it While performing this
task the warehousemen charges certain amount which is specified by the
government The farmer has to pay the amount towards stocking of his goods
In this way for the smooth sailing of the market committees activities each
and every market functionary has to perform his duties systemically
19
Market Functionaries in Selected Market An Overview
In all the selected APMC for the present research work ie 15 APMC there
were 26194 market functionaries operating in various markets of this division The
district wise and sample wise break up of the same is revealed in the tables from 21
to 25
As on the 2007-98 the total of local market participant in three APMC taken
for the present research is Gulbarga-5099 Bidar-2790 Koppal-5234 Raichur-7182
and Bellary-5889 There are 2046 lsquoArsquo class traders 1786 lsquoBrsquo class traders 1410 lsquoCrsquo
class traders 6920 lsquoDrsquo class traders 2794 commission agents 1496 exporters 1526
importers 676 stockiest 358 processors 172 crushers 203 ginners 28 pressers 29
warehousemen and 10775 hamals operating in the various markets in the Gulbarga
division The highest number of traders commission agents and other functionaries
are in Raichur district Bellary district followed by Gulbarga district being nearly 13
of the total number in the division
Market Functionaries at Selected APMC in Gulbarga District
Gulbarga APMC is a very big APMC in the Gulbarga district as compared
with other APMC in the same district Table 41 explains the total market
functionaries working in the not only Gulbarga APMC but also APMC Shorapur and
APMC Shahapur It is far as size is considered APMC Shahapur is a small APMC in
the Gulbarga district
The below Table 21 reveals that the total number of market functionaries
which was 3536 in 2009-10 in Gulbarga APMC has increased by around 124 percent
in 2013-14 It is evident from the same that coolies traders exporters importers and
processors holding maximum share in total market functionaries in the total
participants in the market
In case of the APMC Shorapur the total position of market participant was
gradually increased during first three years ie from 576 in 2009-10 to 845 in 2010-
11 and 910 in 2011-12 but it decreased to 845 in 2012-13 Again coolies and traders
were become the major portion in total market participants followed by commission
agents and retailers
20
Table-21
Licensed Market Participants in Selected APMCs of Gulbarga District
Sl No Market Participant
APMC Gulbarga APMC Shorapur APMC Shahapur
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 407 419 418 405 426 60 203 254 178 180 37 60 51 46 128
2 Commission agents 227 235 234 213 218 45 58 64 58 69 17 17 17 17 22
3 Exporters 419 424 424 411 416 10 32 11 03 03 28 35 32 25 130
4 Importers 405 411 409 391 396 08 24 09 02 02 25 30 38 25 126
5 Retailers 105 108 108 94 106 25 76 26 02 02 20 32 30 23 51
6 Processors 350 358 356 341 348 01 02 02 01 01 01 01 01 01 10
7 Ginners 14 15 15 15 16 01 02 01 01 01 01 01 01 01 05
8 Pressers 04 04 04 04 04 03 04 02 01 01 02 02 02 02 05
9 Stockiest 28 30 30 25 28 14 42 16 01 01 10 15 12 10 15
10 Weighmen 75 78 77 75 75 13 14 14 14 14 02 02 02 02 05
11 Crushers 15 18 18 18 18 03 05 04 01 01 02 02 02 02 06
12 Warehousemen 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01
13 Coolies 1444 1545 1540 1476 1485 378 373 496 571 560 75 92 99 99 110
14 Transporters 42 54 52 41 43 08 09 10 11 11 28 33 33 18 58
Total 3536 3700 3686 3510 3580 576 845 910 845 847 249 323 321 272 672 Source Annual reports of APMC for 2009-10 to 2013-14
21
The situation in APMC Shahapur was not much different when it compared to
APMC Gulbarga and APMC Shorapur A steady growth in total market participants
was registered in 2013-14 ie 672 with annual aggregate growth of 3398 percent
during the period under research Traders commission agents and coolies were
acquired majority position in total market functionaries
The below Table 22 depicts the total licensed market participants operating in
the selected APMCs of Bidar district A keen observation of year wise growth in the
various categories of market participants shows that coolies are steadily increased in
APMC Bidar from 68 in 2009-10 to 140 in 2013-14 In APMC Bhalki it was from 49
in 2009-10 to 56 and in APMC Aurad from 19 to 34 during the same period
It is interesting to note in Bidar APMC that stockiest were the dominant
portion in total market functionaries followed by experts commission agents and
importers The same situation was also found in other five APMCs ie Bhalki and
Aurad which are taken as sample from the Bidar district The percentage of stockiest
as on 2013-14 in total market participant was in Bidar APMC 1694 Bhalki APMC
ndash 1850 and 1859 in APMC Aurad
22
Table-22
Licensed Market Participants in Selected APMCs of Bidar District
Sl No
Market Participant
APMC Bidar APMC Bhalki APMC Aurad
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 171 182 195 186 196 151 153 146 156 160 110 115 128 138 142
2 Commission agents
145 151 180 175 190 136 139 145 150 156 102 112 115 128 132
3 Exporters 150 162 175 12 172 139 141 148 151 155 89 95 98 108 112
4 Importers 141 145 161 152 162 120 122 126 120 122 85 92 95 98 104
5 Retailers 10 15 28 25 35 05 06 09 10 10 03 04 06 08 08
6 Processors 03 04 04 03 04 02 02 02 02 02 01 01 01 01 01
7 Ginners 02 02 02 02 02 01 01 01 01 01 01 01 01 01 01
8 Pressers 01 01 01 01 01 01 01 01 02 01 01 01 01 01 01
9 Stockiest 193 198 220 205 215 150 151 154 155 161 106 112 115 119 123
10 Weighmen 33 42 55 52 65 23 24 26 28 30 13 15 21 28 30
11 Crushers 02 02 03 02 03 01 01 01 01 01 01 01 01 01 01
12 Warehousemen 01 01 01 01 02 01 01 01 01 01 01 01 01 01 01
13 Coolies 68 70 110 110 140 49 50 52 57 56 19 24 30 35 37
14 Transporters 10 05 15 24 23 08 08 09 13 13 04 06 08 12 17
Total 930 980 1150 1100 1210 787 800 821 846 870 536 580 621 687 710 Source Annual reports of APMC for 2009-10 to 2013-14
23
The overall growth in the market participants in Bidar district from the same
table reveals that the annual aggregate growth in APMC Bidar was highest ie 602
percent over the previous year it was 210 percent in APMC Bhalki and 649 percent
in APMC Aurad This clearly indicates that APMC Aurad is fast growing APMC in
terms of market functionaries followed by APMC Bidar and APMC Bhalki
A cursory look at the below Table 43 reveals that coolies traders
commission agents and importers are the major category of market functionaries
operating in the selected APMCs in the Koppal district during five years study period
ie 2009-10 to 2013-14 are presented in Table 23 The total number of market
functionaries in APMC Koppal which was 1054 in 2009-10 increased to 1186 in
2013-14 with percentage growth of 1188 during period under study In case of
APMC Gangavati it was 1034 percent negative and in APMC Kustagi positive
growth of 1752 percent during the same period The number of traders increased
marginally during the study period but the number of commission agents was
marginally decreased in all the three APMC selected from the Koppal district as
sample the other market functionaries increased in large numbers thus making the
proportion at commission agents to drop A broad view of licensed market
functionaries in selected APMC in Koppal depicts that APMC Gangavati was leading
APMC in terms of total market participants followed by APMC Koppal and APMC
Kustagi during five years plan period
24
Table-23
Licensed Market Participants in Selected APMCs of Koppal District
Sl No Market Participant
APMC Koppal APMC Gangavati APMC Kustagi
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 115 108 127 116 144 518 480 456 479 497 106 95 103 63 88
2 Commission agents 102 107 90 98 107 468 417 360 380 387 141 139 142 124 153
3 Exporters 95 123 92 115 105 511 480 455 489 495 90 77 80 46 65
4 Importers 123 146 120 122 103 598 479 455 488 496 17 12 13 08 64
5 Retailers 15 22 14 15 14 124 98 72 90 87 11 11 14 11 -
6 Processors 04 05 04 05 06 95 91 87 90 97 02 02 02 02 02
7 Ginners 02 02 02 02 02 - 02 - - - - - - - -
8 Pressers 02 02 02 02 02 - - - - - - - - - -
9 Stockiest 60 179 58 70 65 518 480 453 488 495 52 52 63 - -
10 Weighmen 10 15 09 08 10 03 03 04 04 03 06 06 06 06 06
11 Crushers 05 11 05 06 08 04 01 02 02 02 03 03 02 02 -
12 Warehousemen 02 04 02 03 04 02 02 02 02 02 01 01 01 01 01
13 Coolies 452 502 450 544 535 553 370 324 393 417 372 363 345 273 468
14 Transporters 067 118 59 33 36 26 13 16 15 14 04 05 03 02 02
15 Temporary purchasers - - - - - - - - - - 45 41 - - 150
Total 1054 1344 1034 1139 1186 3423 3001 2784 2995 3069 850 807 774 538 999 Source Annual reports of APMC for 2009-10 to 2013-14
25
Table 24 shows the year wise actual market participants who were licensed to
operate in the market yard during 2009-10 to 2013-14 in the selected APMC for the
sample in the Raichur district The total market functionaries in the APMC Raichur
decreased during the second year ie 2010-11 from 3622 to 3407 The average
decrease during the research period was 228 percent This was due to decrease in the
traders as well as coolies
When we observed market functionaries cooperation in the APMC Sindnoor
if was little different situation when it compared to APMC Raichur The total market
participants were shown an increasing trend except in the year 2010-11 it was
decreased from 2193 in 2009-10 to 1852 The overall growth in the market
functionaries during five years research period was 2782 percent which was a good
sign compared to APMC Raichur This growth indicates the growth of agriculture
marketing in APMC Sindnoor yard From the same table it can also be seen that
during 2010-11 and 2011-12 the total licensed market participants in APMC
Lingasugur were decreased but again during last two years of study period it shown
upward trend From these above analysis it can be said that APMC Sindnoor and
APMC Lingasugur were performed better during the plan period as compared to
APMC Raichur
26
Table-24
Licensed Market Participants in Selected APMCs of Raichur District
Sl No Market Participant
APMC Raichur APMC Sindnoor APMC Lingasuguar
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 409 422 431 403 415 312 260 304 305 304 104 99 88 106 115
2 Commission agents 216 214 222 224 218 317 265 280 288 279 83 92 81 101 100
3 Exporters 382 381 401 416 401 288 256 301 308 307 97 77 71 103 105
4 Importers 377 392 420 400 410 288 256 273 276 269 77 79 71 103 110
5 Retailers 22 23 206 - - NA NA NA NA NA 20 18 18 16 16
6 Processors 57 55 63 65 401 14 17 20 19 17 05 06 06 04 04
7 Ginners 10 16 16 15 16 01 01 01 01 - - - - - -
8 Pressers 05 05 04 03 04 01 01 01 01 01 05 04 04 04 04
9 Stockiest 388 377 398 409 19 289 257 300 308 293 75 94 81 106 110
10 Weighmen 89 89 87 87 87 16 16 16 15 14 14 14 14 14 14
11 Crushers 18 26 24 20 19 02 02 01 01 - - - - - -
12 Warehousemen 02 02 02 02 02 07 05 06 07 06 01 01 01 01 01
13 Coolies 1591 1357 1354 1434 1478 634 516 856 1286 1313 40 02 08 Nil 79
14 Transporters 46 48 44 42 50 24 - - - - 10 08 08 04 Nil
Total 3622 3407 3672 3520 3520 2193 1852 2359 2815 2803 531 494 451 562 859 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
27
Table 25 indicates the trends in the growth of total licensed market
functionaries who were operating during the period under consideration in the
selected APMCs in the Bellary district A comparative study of three APMCs selected
in Bellary district shown in the table 25 indicates that APMC Bellary has the largest
market functionary followed by APMC Hospet and APMC Siraguppa The total
market participants in APMC Bellary was ranged in between 3235 to 3865 in APMC
Hospet it was between 738 to 1481 and in APMC Siraguppa between 659 to 1007
The study of individual market participants in total market participants in selected
APMCs in Bellary district was also clearly shown that coolies were occupied the
major percentage in total followed by exporters importers and traders during the plan
period From the above analysis it was clear to conclude that district APMC ie
Bellary APMC was fully developing in terms of increase in market functionaries but
effort is needed from the officials of APMC in Hospet and Siraguppa to take some
measures to increase the market functionaries for the smooth running of marketing
activities in the yard
28
Table-25
Licensed Market Participants in Selected APMCs of Bellary District
Sl No Market Participant
APMC Bellary APMC Hospet APMC Siraguppa
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 435 441 538 462 485 121 123 136 150 141 115 120 146 176 198
2 Commission agents 352 368 448 382 371 75 77 84 103 88 10 10 12 09 08
3 Exporters 412 437 531 452 484 121 123 136 150 141 120 120 147 177 198
4 Importers 415 430 527 442 473 121 123 136 150 141 120 120 147 177 198
5 Retailers 102 115 101 120 95 76 74 93 95 95 - - - - -
6 Processors 45 45 47 45 55 26 24 24 23 24 42 43 46 45 59
7 Ginners 26 27 29 25 17 - - 27 24 24 - - - - -
8 Pressers 20 20 22 20 09 NA NA NA NA NA - - - - -
9 Stockiest 420 430 518 421 463 120 123 136 150 141 130 134 159 178 198
10 Weighmen 16 16 16 16 16 03 03 04 04 04 - - - - -
11 Crushers 26 26 26 25 18 04 02 02 02 02 - - - - -
12 Warehousemen 01 01 01 01 01 02 02 02 02 02 02 02 03 03 03
13 Coolies 920 902 1018 1213 910 262 173 373 429 668 120 128 237 145 145
14 Transporters 45 48 43 02 04 14 14 12 14 10 0 0 0 0 0
Total 3235 3306 3865 3626 3401 945 738 1165 1193 1481 659 677 897 910 1007 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
29
Sample size
The main refrain of this part of research study is the detailed analysis of the
primary data collected from the respondents ie market participants from APMC
about marketing services provided by the APMCs in five districts of Gulbarga
division Three APMCs from each district on the basis their performance ie best
performer average performer and low performer taken for the study The details of
the responses obtained on various services offered at APMCs yard and their level of
satisfaction towards it in the light of the statistical data obtained through the
questionnaires addressed to market participants such as commission agents hamals
traders graders etc are shown in the following part
The deep analysis of the responses from the sample size of market participants
has provided good insight into the dimensions of the marketing services and the
quality of those services rendered to the farmers seller of agriculture produce The
analysis has been done with necessary theoretical backs drops of each of the services
related to the marketing activities in the APMC yard
Table-26
District Wise Sample Size of Market Participants
Name of District Frequency Percentage Cumulative Percentage
Bidar 25 2000 2000
Gulbarga 25 2000 4000
Koppal 25 2000 6000
Raichur 25 2000 8000
Bellary 25 2000 10000
Total 125 10000 -
Source Field survey
Table 26 provides the information about the district wise frequency of sample
chosen for the present study The total sample for the study was 125 market
participants Gulbarga division constitutes of five districts from each districts 25
respondents were selected
30
Profile of Market Participant
An attempt has also been made in this part to study the socio-economic and
demographic factors of the market participants in order to examine the significant
relationship if any exist in between their profile and performance
Age Group
The age composition of the various market participants covered in the study
areas reveals some significant trends The details of the age of respondents of district
wise are provided in the following table
Table-27
Age Wise Classification of Market Participant
Sl No Name of APMC
Age of Respondent (in years) Total Below
20 21 ndash 40 41 ndash 60 60 and
above 1 Gulbarga - 18
(720) 6
(240) 01
(40) 25
(200) 2 Bidar - 18
(720) 6
(240) 01
(40) 25
(200) 3 Koppal - 18
(720) 5
(200) 01
(40) 25
(200) 4 Raichur - 18
(720) 6
(240) 02
(40) 25
(200) 5 Bellary - 18
(720) 7
(280) 01
(40) 25
(200) Total 000
(000) 90
(720) 29
(232) 06
(46) 125
(100) Source Field study Note Figures in brackets indicates percentage to total It is evident from the Table 27 that more than 34th of the total respondents
from market participants ie 90 belonged to the age group of 21- 40 years 232
of respondents belonged to the age group of 4160 years while smaller number of ie
of respondents which constitutes 48 of total respondents are in the age group of 61
years and above It is revealing to note that no number respondents Out of total 125
respondents belonged to below 20 years of age group
31
Status of Educational Qualification
The data collected through personal interview with regarding education
qualification of all market participants operating in the APMC in Gulbarga division
has provided Some useful details about their educational status which is considered
to be most significant factor in discharging their duties and responsibilities more
efficiently and effectively The detail of educational qualifications of sample group of
market participants is shown in below Table 28
Table-28
Qualification Wise Classification of Market Participant
Sl No Name of APMC
Educational Qualification Total Below
Primary Secondary Degree PG and
others
1 Gulbarga 01 (40)
11 (440)
03 (120)
10 (400)
25 (200)
2 Bidar 01 (40)
09 (360)
03 (120)
12 (480)
25 (200)
3 Koppal 01 (40)
10 (400)
03 (120)
11 (440)
25 (200)
4 Raichur 01 (40)
09 (360)
02 (80)
13 (520)
25 (200)
5 Bellary 02 (80)
11 (440)
04 (160)
08 (320)
25 (200)
Total 06 (48)
50 (400)
15 (120)
54 (432)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total It is learnt from the above Table 28 that 432 of respondents were post
graduates and other technical qualifications such ITI and other diploma qualifications
40 of the sample respondents were qualified upto higher secondary followed 12 of
respondents were graduates Only 6 were belonged to the primary category It is
however significant to note that higher secondary education and other technical
education qualification holders were majority in total sample size ie 40 to 432
as compared to degree holders ie only 12 of sample size
32
Religious Composition of Sample
Religion of respondents is more dominating factor in occupation for their
livelihood Researcher has also tried to accumulate the data about the religion of
respondents through interview schedule In the present study respondents religion was
broadly classified in 4 category ie Hindu Muslim Christian and others
Table-29
Religion Wise Classification of Marketing Participant
Sl No Name of APMC
Religion Total
Hindu Muslim Christian Others
1 Gulbarga 22 (880)
02 (80)
01 (40)
- 25 (200)
2 Bidar 22 (880)
03 (120)
- - 25 (200)
3 Koppal 21 (840)
04 (160)
- - 25 (200)
4 Raichur 21 (840)
04 (160)
- - 25 (200)
5 Bellary 23 (920)
01 (40)
01 (40)
- 25 (200)
Total 109 (872)
14 (172)
02 (060)
00 (000)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total
From the above Table 29 it is clear that majority ie 872 of total sample
size operating in study area of Gulbarga division belonged to Hindu religion followed
by Muslim religion ie 112 of sample group This is in conformity with the pre
dominantly Hindu dominant population composition of the area as compared to
Muslim religion If can be interpreted from the above that sample size comprised of
minor number ie 160 of respondents belonged to the Christian religion
33
NATURE OF PARTICIPANTS
The success or failure of any market depends upon the functionaries existing
in the market Hence the active participation of all types of functionaries is very
important in smooth conduct of market functions In order to facilitate for smooth
marketing of agriculture commodities each and every market is provided with
different market functionaries It is compulsory according to KAPM (R) Act 1966 for
every functionary functioning in the APMCs to take a valid licence from respective
APMC by paying necessary fees An analytical account of the market functionaries
operating in different selected markets are given in Table 210
Table-210
Nature of Participant
Sl No
Name of participant
Name of APMC Total
Gulbarga Bidar Koppal Raichur Bellary
1 Commission Agent
11
09
08
10
12
50 (400)
2 Hamalas 04
03
04 05 04 20 (160)
3 Trader 07 08 08 06 06 35 (2800)
4 Grader 01 01 01 01 01 5 (400)
5 Processor - 01 01 01 - 3 (240)
6 Broker 01 03 03 02 01 10 (80)
7 Others 01 - - - 01 02 (160)
Total 25 (200)
25 (200)
25 (200)
25 (200)
25 (200)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
A cursory look at the Table 210 reveals that commission agents traders and
hamals are the major market functionaries in the market Out of total 125 participants
34
respondents 40 percent were playing the role of commission agents 28 percent of
them were acting as traders and hamals constitute 16 percent The percentage of
broker grader and processor in selected sample size was 8 4 percent and 24
percent respectively The above figures shows whose role very important in market
place
Experience in Market Yard
Market participants experience in the market yard will helps to understand the
level of their satisfaction with regard to the economic benefit from the job and their
attitude towards it Satisfied market participant in APMC will strict to a single job for
a long period The details of their years of experience in market yard in the area
under study of sample size is given in the below table
Table-211
Years of Experience in Market Yard
Sl No Particulars
Experience in Market Yard
Below 10 11 ndash 20 21 ndash 30 30 and above Total
1 Gulbarga 02 18 03 02 25 (200)
2 Bidar 01 17 04 02 25 (200)
3 Koppal 01 21 03 - 25 (200)
4 Raichur 02 18 04 01 25 (200)
5 Bellary 02 22 01 01 25 (200)
Total 8 (64)
96 (768)
15 (120)
6 (48)
125 (10000)
Source Field survey Note Figures in brackets indicates percentage to total
Table 211 exhibits the experience of the respondents in the market yard of
125 market yard of 125 market participant respondents Out of total sample size
768 are laying in between 11-20 years of experience in the market yard 15
35
respondents which constitute 12 of sample group had an experience of 21-30 years
in the market yard Below 10 years and above 30 years of experience in market yard
of respondents were 64 and 48 of sample respondents Finally to conclude about
the market yard experience old market participant were high in number as compared
to the new market participants ie less than 10 years of experience in market yard
Motivational Factors ndash Sample Study
The word lsquomotivationrsquo comes from the Latin meaning ldquoTo moverdquo it generally
means an inner or outer drive to meet a need or a good This is the impelling force
which draws the human from his house and inspires her to start something on his own
The variables comprise of heredity more profitable uncertain induced
unemployment and others Accordingly by incorporating the above the researcher
has asked the respondents to rank the motives of their present profession Their
responses were presented in the following table
Table-212
Motivated Factors of Profession
Sl No Particulars
Motivated Factors Total
Heredity More Profitable
Uncertain Induced
Un Employment Others
1 Gulbarga 22 - 02 01 - 25 (200)
2 Bidar 16 03 06 - - 25 (200)
3 Koppal 18 03 03 01 - 25 (200)
4 Raichur 22 01 02 - - 25 (200)
5 Bellary 23 01 01 - - 25 (200)
Total 101 (808)
8 (64)
14 (112)
2 (16)
00 (00)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total It is evident from the Table 212 that heredity was the most dominant motive
with 8080 of sample size This group distinctively falls under ldquopushrdquo category of
profession who resorted to this profession because of same compulsions This
compulsion cited were death of Kartha to supplement meager income at home etc
36
This way followed by uncertain induced with a percentage of 1120 of
sample size The respondents quoted few reasons for choosing their profession such
as poverty no alternative jobs to do and lower education etc 64 of total
respondents opinioned that they were chosen this profession because of more
profitable
Satisfaction with Marketing Practices
In the process of marketing there are three dimensions these are time space
and form The marketing function is having a one or the combination of these three
dimensions While performing these functions the different functionaries are rewarded
for their services at every level The marketing cost the market margins and the
competition in the market is different to product to product Similarly the market
functions very from product to product for example the marketing of grains are
having different functions than that of the marketing of vegetables Respondentrsquos
satisfaction level towards these marketing practices are shown in below table
Table-213
Satisfaction of Marketing Practices
Sl No Particulars Level of Satisfaction
Total Satisfied Unsatisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 24 (960)
01 (40)
25 (200)
4 Raichur 24 (960)
01 (40)
25 (200)
5 Bellary 23 (920)
02 (80)
25 (200)
Total 118 (944)
7 (56)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
37
Table 213 shows the district wise market participant respondents level of
satisfaction towards marketing practices It could be seen from the above table that
more than 94 of respondents are of the opinion that the quality of marketing
practices practiced in the APMC yard is fully satisfied and rest of respondents ie 56
percent were fully expressed that the marketing practices are unsatisfied
The level of satisfaction in Gulbarga district APMC Koppal district APMC
and Raichur district APMC was above 96 but it was 9200 in Bidar and Bellary
From the above opinion and analysis of responses it can be concluded that few steps
are necessary to take by APMCs to make 100 satisfaction in for marketing
practices
Farmerrsquos Activeness
Market participants were interviewed with an intension to extract their level of
satisfaction in the farmerrsquos activeness in the APMC yard in selected units
Respondents are given two option regarding farmers active involvement in marketing
of their produce ie satisfied or unsatisfied The results of the investigation are
presented in Table 214
Table-214
Satisfaction with Farmers Activeness in APMC
Sl No Particulars Satisfaction with Farmers
Total Satisfied Unsatisfied
1 Bidar 13 (520)
12 (480)
25 (200)
2 Gulbarga 18 (720)
07 (280)
25 (200)
3 Koppal 10 (400)
15 (600)
25 (200)
4 Bellary 21 (840)
04 (160)
25 (200)
5 Raichur 15 (600)
10 (400)
25 (200)
Total 77 (616)
48 (384)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
38
Table 214 gives the respondents level of satisfaction with the farmerrsquos
activeness in marketing activities in APMC yard More than 61 of market
participant respondents fully satisfied with farmers activeness but 38 of them are
fully unsatisfied and suggested to participate actively in marketing activities Few
number of farmers physically visiting and actively involved during the sale of their
produce An awareness programme from APMC is very necessary to help farmers and
to motivate them to involve in marketing activities
Facilities at APMC
Basic infrastructure at APMC yard is very much essential for smooth
functioning of marketing activities The selected APMC for present study has
provided necessary facilities such as water canteen communication transport and
banking and finance etc to the market participants But all the participants
respondents are unable to get those facilities The percentage of functionary
respondents who have availed these facilities and those who have deprived of the
facilities are given in the Table 215
Table-215
Facilities at the APMC Yard
Sl No
Facilities at APMC
Name of District Total Gulbarga Bidar Koppal Raichur Bellary 1 Water 20
(1886) 19
(1792) 22
(2075) 23
(2169) 22
(2075) 106
(848) 2 Canteen 14
(2121) 13
(1969) 12
(1818) 11
(1667) 16
(2424) 66
(528) 3 Communication 24
(2264) 21
(1981) 20
(1886) 22
(2075) 19
(1792) 106
(848) 4 Market
information 22
(2075) 20
(1886) 19
(1792) 24
(2264) 21
(1981) 106
(848) 5 Transport - - - - - - 6 Health and
sanitation 11
(2291) 09
(1875) 08
(1667) 10
(2083) 10
(2083) 48
(384) 7 Banking and
Finance - - - - - -
8 Others - - - - - - Total 125
(1000) Source Field survey Note Figures in brackets indicates percentage to total
39
A glance over the above Table 215 reveals the various facilities provided at
APMC yard in selected sample size More than 84 of functionary respondents
opinioned positively about water facility 52 of them about canteen 38 about
health and sanitation etc It is to be noted here that no single APMC has provided
transportation facilities and banking and finance which is very vital in marketing
Satisfaction about Facilities
APMCs have provided several infrastructure facilities to market participants
These facilities provided by APMC to market functionaries helps them to provide
good services to farmers efficiently
Table-216
Level of Satisfaction about the Facilities
Sl No Name of the District
Level of Satisfaction Total
Fully Satisfied Not Satisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 23 (920)
02 (80)
25 (200)
4 Raichur 21 (840)
04 (160)
25 (200)
5 Bellary 21 (840)
04 (160)
25 (200)
Total 112 (896)
13 (104)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
It is observed from the Table 216 that a large number of market participants
(ie 896) were fully satisfied with the infrastructure facilities available inside the
market yard Nearly 104 percent expressed their dissatisfaction over the facilities
provided by APMCs Gulbarga APMC was considered to be better (9600) in
facilities as compared with other four districts selected for the present study Raichur
40
and Bellary districts APMCs had needed more important in terms of facility to satisfy
market functionaries Market participants are directed to fallow the specified
techniques These techniques are prescribed by the Indian standards institute The
techniques suggests to use proper ingredients in specified proportions The graded
processed goods bear ISI label indicating that it contained the graded and good quality
if the product The selected market participants were also asked about the quality of
marketing functions The analysis of Table 217 revel that more than 76 of
respondents had satisfied the quality of marketing function in five districts whereas
more than 20 of them not satisfied with quality of services in the market yard
41
Table-217
Level of Satisfaction with Quality of Marketing Services
Quality of Services
Gulbarga Bidar Koppal Racihur Bellary Total Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Assembling 19 06 19 6 21 4 19 06 19 06 125
(100) Processing 22 03 22 03 23 02 22 03 22 03 125
(100) Grading 15 10 16 09 14 11 15 10 15 10 125
(100) Storing - 25 - 25 - 25 - 25 - 25 125
(100) Weighment 12 14 10 13 11 12 14 14 13 15 125
(100) Banking and finance
04 21 03 22 02 23 04 21 04 21 125 (100)
Rest house 02 23 01 24 02 23 02 23 03 22 125 (100)
Insurance - 25 - 25 - 25 - 25 - 25 125 (100)
Source Field survey Note Figures in brackets indicates percentage to total
42
CHAPTER-III CUSTOMER PERCEPTION ABOUT MARKETING
MANAGEMENT OF APMC IN GULBARGA DIVISION
INTRODUCTION
In keeping with very little of the research the survey is conducted to
supplement the evaluation through the primary data These attempts bring out the
basic problems and difficulties if any in the implementation of the APMCs Act
through state agricultural marketing board Different types of schedules are used for
evaluating the working of the APMC act However the agricultural marketing is
clearing a midwife between agricultural production and agricultural marketing on the
one hand and the former beneficiaries on the other hand But the farmers might have
direct link what so ever with marketing agencies therefore a schedule for the farmers
which has been different from what we have used for market participants As such the
marketing participant of the agriculture market are the main pillars for
implementation of the schedule The questionnaire has been personally given to
farmers of the sample groups and the researcher had a detailed personal discussion
with the market participants with regard to working or agriculture marketing The
main focus of the study was evaluation of management of agricultural produce
marketing committees in Karnataka from the point of farmers therefore our survey
schedule covers the background of farmers and market functionaries such as age
education religion family background source of incomes land holdings of both
farmers and market participant were collected Some of these aspects have been
discussed in the following paragraphs
43
Table-31
District Wise Selection of Farmers Sample Size
Name of the District Frequency Percentage Cumulative
Percentage
Gulbarga 50 200 200
Bidar 47 188 388
Koppal 49 196 584
Raichur 52 208 792
Bellary 52 208 1000
Total 250 1000 -
Source Field survey
Table 35 provides the information about the district wise selection of member
farmers which have been chosen for the present study The total sample size for the
study was 250 farmers Raichur and Bellary district form 2080 percent each and
Gulbarga district form 2000 percent and Bidar and Koppal district 188 percent and
196 respectively The member of farmers selected for the purpose of was equally
distributed to all five districts with little change in percentage The reason for that is to
identify the district among the five districts where APMCs are working upto the
aspirants of farmers
44
Table-32
Age Wise Classification of Agriculturist
APMCs District
Age in Years Total
Below 20 20 ndash 40 41 ndash 60 61 and above
Bidar 01 22 21 03 47 (186)
Gulbarga 01 23 23 03 50 (200)
Koppal 01 23 22 03 49 (196)
Raichur 01 24 24 03 52 (208)
Bellary 02 24 24 02 52 (208)
Total 06 (240)
116 (4640)
114 (4560)
14 (56)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It could be found from the Table 32 that 4640 percent of farmer respondents
were aged between 20-40 years 45-60 percent in between 41-60 years and 5-6
percent above 61 years Only 240 percent of total sample size were aged below 20
years The above figures about the age of agriculturists cleared that young and middle
aged formers are more actively participated in the APMC yard when compared to old
age farmers
Educational Qualification of Farmers
The level of the education of the farmers is one of the most important factor
which governs many more factors such as deciding the cropping pattern crop
rotation use of different inputs in farming optimum time of cultural practices and
where to sell the agricultural produce The following table shows the educational
qualifications of the farmer respondents
45
Table-33
Education Wise Classification of Respondents
Name of the APMCs
Educational Qualification
Total Literate Illiterate
Primary Secondary Degree PG and Others
Gulbarga 25 (500)
15 (300)
4 (80)
02 (40)
4 (80)
50 (200)
Bidar 23 (4894)
15 (3191)
03 (638)
02 (425)
4 (852)
47 (188)
Koppal 25 (5102)
16 (3265)
03 (612)
- (00)
5 (1021)
49 (196)
Raichur 26 (500)
16 (3076)
03 (576)
03 (576)
4 (772)
52 (206)
Bellary 28 (5385)
16 (3076)
03 (576)
- (00)
5 (963)
52 (208)
Total 127 (5080)
78 (3120)
16 (640)
07 (280)
22 (880)
250 (100)
Source Field study
Note Figures in bracket indicates percentage to total
From the above Table 33 it could be seen that out of the total 250 farmers
respondents selected for the present study 5080 percent of them are having primary
level of education 3120 percent of them have studied upto secondary Only 640
percent of total sample size possessed graduate level education followed by 280
percent post graduate and other qualification The illiterate percentage of respondents
total sample size is 880
Sources of Incomes
There are different sources of incomes available to farmers such as agriculture
income business self employment and employment in other organizations
Agriculture income is considered as major source of income to them and other
sources of incomes are secondary importance The details of their sources of incomes
along with agriculture incomes is shown in the table below
46
Table-34
Sources of Income of Respondents
Sl No
Name of the Market
Source of Income Total
Agriculture Business Employment Others
1 Gulbarga 40 (800)
6 (120)
2 (40)
2 (40)
50 (200)
2 Bidar 38 (8085)
5 (1063)
2 (1425)
2 (427)
47 (188)
3 Koppal 39 (7959)
5 (1020)
2 (408)
3 (613)
49 (196)
4 Raichur 42 (8076)
6 (1154)
3 (576)
1 (194)
52 (208)
5 Bellary 42 (8076)
6 (1154)
2 (385)
2 (385)
52 (208)
Total 201 (8040)
28 (1120)
11 (440)
10 (40)
250 (1000)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 34 that 8040 of respondents were having
agriculture income and 1120 percent had business income followed by 440 percent
and 40 percent of respondents from employment and other sources respectively This
will clearly indicates the much dependency of farmer respondents on agriculture for
income to meet the cost of livelihood This fact was same in five districts selected for
the study
Annual Gross Income
The farmers are getting incomes not only from agriculture but also from the
other sources discussed in previous table The gross annual income of the farmers
itself indicates the standard of living and their life style As far as in other farmers are
concerned they fully depend on agriculture for their livelihood Due to uncertainty in
agricultural production their annual income is getting fluctuation which results suicide
of many farmers in Karnataka
47
One side no guaranteed regular income and the other side rise in prices of
consumable goods forced them for borrowing money from outside to meet cost of
living and agricultural expense The researcher collected information about annual
gross income of respondents and shown in below table
Table-35
Annual Gross Income of Respondents
Sl No Annual income (Rs) Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 50000 to 150000 8 (160)
8 (1702)
8 (1632)
9 (1731)
9 (1730)
42 (166)
2 150001 to 250000 18 (360)
17 (3617)
17 (3469)
19 (3654)
18 (3462)
89 (356)
3 250001 to 350000 14 (280)
13 (2766)
14 (2857)
15 (2885)
15 (2885)
71 (289)
4 350001 to 45000 5 (100)
5 (1063)
5 (1022)
5 (962)
6 (1154)
26 (104)
5 450001 and above 5 (100)
4 (852)
4 (1020)
4 (768)
5 (769)
22 (88)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 35 that 166 percent of the respondents
were having the income of Rs 50000 ndash 150000 per annum income category and
356 percent had an income between Rs 150001 to Rs 250000 The percentage of
respondents in the Rs 250001 to 350000 range was found to be 289 percent
whereas those with an income less than Rs 450000 but above Rs 350001
accounted for 104 percent of the respondents The respondents with an annual
income greater than Rs 450000 made up the remaining 88 percent of the total
sample size It is learnt from the study that the farmers were from different types of
age groups education qualification and income range
48
Type of Family
Type of the family also determines the income of farmers When the partition
of agriculture land take place it badly affects on the quantity of agriculture
production If agriculture activities are carried out in joint family leads bulk
production and minimization of agriculture cost The data regarding the type of family
was also collected through schedule of questionnaire prepared for the farmers is
shown in below table along with their percentage to total sample size
Table-36
Type of Family of Farmer Respondents
Sl No Particulars Type of Family
Total Nuclear Family Joint Family Individual
1 Gulbarga 36 (1988)
14 (2029)
- 50 (2000)
2 Bidar 34 (1878)
13 (1884)
- 47 (1880)
3 Koppal 35 (1933)
14 (2028)
- 49 (1960)
4 Raichur 37 (2044)
15 (2173)
- 52 (2080)
5 Bellary 39 (2157)
13 (1886)
- 52 (2080)
Total 181 (7240)
69 (2760)
- 250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table depicts the classification of respondents on the basis of type
of family ie nuclear family or joint family 7240 percent of sample size are
belonged to nuclear family and remaining 2760 percent are living still in joint family
This clearly indicated that majority of preferred not to stay with joint family but want
to be in nuclear family
49
Family Size
Family size means the number of family members staying together in a single
family The farmers were also asked about the number of members living together
which helps to know their tendency towards big family or small family Big family
with small agriculture land holding found to be different to manage economic needs
and vice versa Keeping this point in mind data was collected about the size of family
members and is shown in Table 37
Table-37
Family Size of Respondents
Sl No Name of the Market Family Members
Total Below 4 4 ndash 8 8 ndash 12 Above 12
1 Gulbarga 15 (2027)
27 (2000)
05 (2083)
03 (1764)
50 (2000)
2 Bidar 14 (1891)
25 (1851)
05 (2083)
03 (1764)
47 (1880)
3 Koppal 15 (2027)
24 (1777)
06 (2500)
04 (2353)
49 (1960)
4 Raichur 15 (2027)
31 (2296)
04 (1667)
02 (1176)
52 (2080)
5 Bellary 15 (2028)
28 (2076)
04 (1667)
05 (2943)
52 (2080)
Total 74 (2960)
135 (5400)
24 (960)
17 (680)
250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table presents the classification of the respondents on the basis of
the size of the family members The category is done family below four members 4
members to 8 farmers respondents which constitute 54 percent of the sample group
had members between 4-8 and 2960 percent of sample size had family members
below 4 followed by 960 percent and 680 percent had 8-12 members and above 12
members respectively
50
Agriculture Land Holdings
The annual gross income of the respondents largely depends on the agriculture
land holdings by the farmers an attempt has been made to collect the details of the
agriculture land holding by the farmer respondents The size of the land holdings and
socio economic conditions of the farmers play an important role in farming as well as
marketing activities The size of the land holdings by sample size selected for the
present study is shown in the below table
Table-38
Total Agriculture Land Holdings
Sl No
Name of the Market
Total Agriculture Land Holding Total Below 5
Acres 5 ndash 10 Acres
11 ndash 15 Acres
Above 16 Acres
1 Gulbarga 3 (60)
20 (400)
9 (180)
18 (360)
50 (2000)
2 Bidar 3 (638)
19 (4042)
9 (1915)
16 (3405)
47 (188)
3 Koppal 3 (0612)
20 (4082)
9 (1837)
17 (3569)
49 (1960)
4 Raichur 4 (769)
21 (4038)
10 (1923)
17 (327)
52 (2080)
5 Bellary 4 (769)
21 (4038)
9 (1730)
18 (3463)
52 (208)
Total 17 (68)
101 (404)
46 (184)
86 (3440)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above Table 38 revels that 404 percent of the total respondents are small
farmers (ie 5 acres or more but less than 10 acres) 3440 percent of sample groups
are large farmers ie 16 acres or more than 16 acres and only 68 percent of
respondents are having less than 5 acres of cultivating land (marginal farmers)
Major Crops Grown
Generally agriculture crops are grown on basis and depending on the agro
climatic conditions as well as the socio-economic conditions of the farmers The study
51
was conducted to know the major crops grown by the farmer respondents selected for
the present study
Table-39
Annual Crop Grown in Land
Crop Quantity in Quintals
Total 1-25 26-50 51-75 76-100 100 and
above
Red gram 10 50 22 06 10 98
Green gram 96 16 04 - - 116
Black gram 22 38 04 64 - 128
Jawar 99 36 04 02 - 141
Maize 11 33 19 - 02 65
Bajra 07 02 05 07 04 25
Bengal gram 09 35 12 - 36 92
Sugarcane 21 08 04 08 - 41
Others 06 08 12 06 - 32 Source Field study
The quantity of crop grown by the farmers annually is given in the above
Table 39 The data about the different crop grown by the sample size of farmers are
shown in quantity along with the percentage of each crop to total crop grown by the
sample farmers
The table reveals that 5640 percent of the farmers respondents cultivate jowar
followed by 4640 percent farmers ever growing green gram red gram (3920)
maize (26) Black gram (2560) percent Bengal gram (368) and sugarcane
(1640) other crops grown constitute 5120 to total which included onions
groundnuts pulses chillies wheat and paddy etc
It can be seen clearly from the same table that red gram jowar green gram
and black gram are cultivated by the farmer respondents partially for self consumption
purpose and partially for selling It could also be noted from the same those
commercial crops like sugarcane bajra maize chillies sunflower paddy and onions
52
find a major portion in the cropping pattern of the farmer respondents This clearly
indicates the higher degree of commercialization of agricultural production by the
farmers in the Gulbarga division
Preference of Sale of Agriculture Produce
Marketing today is becoming more complicated with the advancement of the
civilization The commodity to be marketed must be of value It shouldnrsquot be a free
gift of the nature easily available for mere picking The farmer wish to have the
maximum share in the price of the products and on other side he wish to purchase the
inputs at the minimum price As he is interested to maximize his profits on sale of his
agriculture produce he will always in search for the market place where he can get
good price An attempt has been made in schedule to acquire information about the
preference of sale of agriculture produce by the sample respondents is shown in the
Table 310 and 311
Sale of Agriculture Produces
Table-310
Sale of Agriculture Produces
Sl No
Name of Market
Sale of Agriculture Produces Total
Sample Open Market APMC Confirmation Other
1 Gulbarga 21 (200)
46 (200)
080 (200)
01 (2500)
50 (2000)
2 Bidar 20 (1905)
43 (1870)
078 (1950)
-- 47 (188)
3 Koppal 21 (200)
45 (1956)
078 (1950)
01 (2500)
49 (196)
4 Raichur 22 (2095)
48 (2086)
083 (2075)
01 (2500)
52 (208)
5 Bellary 21 (200)
48 (2088)
081 (2025)
01 (2500)
52 (208)
Total 105 (420)
230 (920)
04 (16)
04 (16)
250 (100)
Source Field survey Note Figure in bracket indicates percentage to total
53
After the development of regulated markets farmers preferred to sell their
agriculture produce in the APMC yard this was clear in the Table 310 The response
of sample size was collected about sale of the agriculture produce 92 percent of
sample size preferred to sold only in the APMC market as to overcome from the
problems and malpractices in the open markets and 42 percent in open market 16
percent of sample each in confirmation market and other type of sale
Table-311
Preference of Sale of Agriculture Produces by Respondents
Sl No
Name of the Market
Preference of Sale Total Sample Local
Market Taluks Market
District Market
Other State
1 Gulbarga 23 (200)
23 (2035)
25 (2016)
01 (250)
50 (200)
2 Bidar 22 (1913)
21 (1858)
23 (1855)
01 (2500)
47 (188)
3 Koppal 23 (200)
22 (1946)
24 (1935)
-- 49 (196)
4 Raichur 24 (2086)
24 (2124)
26 (2096)
01 (2500)
52 (208)
5 Bellary 23 (2001)
23 (2037)
26 (2098)
01 (2500)
52 (208)
Total 115 (460)
113 (452)
124 (496)
04 (160)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The above table gives the preference of sale of agriculture produce by the
farmer respondents Researcher has discussed with the respondents and mobilized the
data whether they prefer to sell their agricultural produce in local market taluka or
district market
Higher percentage of farmers ie 4960 is sold their agricultural produce in
the district to get better price compared to local market 46 percent of them opinioned
that they are selling their produce in local markets due to infrequency of
transportation facilities and to save the expenditure from bringing produce to district
or taluk market Some farmer respondents ie 4520 percent are sold near to taluka
market and rest of them (160 percent) through direct sale to whole seller retailer or
brokers etc
54
Mode of Transportation
Most of the agricultural goods are not consumed at the places of their
production They are required to be transported in the various stages of the market
Right from lifting of the produce from the threshing floor to its ultimate consumer the
transportation is required to the farmer to bring the agricultural produce to the market
The various means of transport are used These are bullock carts horse tanga tractor
trolleys trucks etc Transport being the most important function of marketing In case
of transport in the rural India though in modern days its importance is declining now
the power operated means like tractors trolley trucks are being used but still bullock
cart and horse tonga is an important means of transport in agricultural marketing The
study had been conducted to know the mode of transport means used by the farmer
respondents to transport the agricultural produce from farm place to market place
same is presented in the table
Table-312
Mode of Transportation of Agriculture Produce by Respondents
Sl No
Name of the Market
Mode of Transportation Total Sample Bullock
Cart Tractor and
Trucks Hired
Vehicles Own
Vehicle 1 Gulbarga 18
(200) 16
(1928) 21
(1963) 01
(2500) 50
(200) 2 Bidar 17
(188) 15
(1807) 20
(1869) - 47
(188) 3 Koppal 18
(200) 16
(1928) 21
(1963) 01
(2500) 49
(196) 4 Raichur 19
(2111) 17
(2048) 22
(2056) 1
(2500) 52
(208) 5 Bellary 18
(2009) 19
(2289) 23
(2149) 01
(2500) 52
(208) Total 90
(360) 83
(322) 107
(428) 04
(160) 250
(100) Source Field study Note Figures in bracket indicates percentage to total It can be seen from the above table that maximum ie more than 42 percent
of our farmer respondents were transported their agriculture produce through hired
vehicle followed by 360 percent of them through bullock cart owned by themselves
Modern means of transportation such as tractors and trucks are used by 322 percent
of sample size The above figure in table indicates that dependency on traditional
55
mode of transportation was decreasing when it compared to modern mean to
transportation
Market Charges
As per the bye laws approved by the chief marketing officer according to the
Act market charges are levied by the market committees In all selected market
committees for the present study in the Gulbarga division only three types of market
charges are levied to the farmers for sale of his agricultural produce in the regulated
markets One commission to commission agent which is fixed at 2 in all the markets
but other market charges different from one market to another market depending upon
the decisions to this effect by the respective market committees A part from
commission all APMCs in the sample size charges hamali and weighment charges In
some APMCs cleaning charges are also levied for cleaning the produce which is
included in other markets in hamali Thus no unauthorized deductions are made now
in any of the markets in the division Few secretaries of the APMCs during the field
study opined that the charges are quite nominal and the services rendered are more
valuable than the charges and they cannot be quantified
Table-313
Market Charges by APMC
Sl No Name of Market Market Charges Total Sample Very Low Very High Fair Average
1 Gulbarga 03 (60)
15 (300)
10 (200)
22 (440)
50 (200)
2 Bidar 02 (425)
15 (3191)
11 (2340)
19 (4044)
47 (188)
3 Koppal 02 (408)
14 (2857)
11 (2245)
22 (4490)
49 (196)
4 Raichur 03 (576)
16 (3076)
10 (1923)
23 (4423)
52 (208)
5 Bellary 02 (384)
17 (3269)
10 (1923)
23 (4424)
52 (208)
Total 12 (480)
77 (3080)
52 (2080)
109 (4360)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total From the above table it could be seen that 4360 percent of farmer respondents
are of the opinion that APMC is charging average ie neither too high nor too low
market charges on the sale of agricultural produce by the farmers On the other hand
56
3080 percent of farmer respondents dissatisfied with the market charges by the
APMC as they expressed that market charges are very high in APMC yard as
compared with open market Though 480 percent of them are fully satisfied and
2080 percent of respondents were reacted positively about the market charges
Carrying Costs
In case of agricultural marketing the transport cost is to be paid by the farmer
if he is selling the produce in the market but if he is selling to the village trader the
cost is to be paid by the trader Carrying cost is the most important cost in the process
of agricultural marketing The carrying cost is more important in context of place
utility of product The efficiency of the marketing is dependent on reducing the cost
of carrying Generally the cost of carrying of bullock cart is higher as compared to
the power operated means A survey was conducted to ascertain the opinion of the
farmer respondents towards the carrying cost paid by them in study area and the data
so collected was shown in the table below
Table-314
Carrying Cost Paid by Respondents
Sl No Name of Market Carrying Cost Total Sample Very Low Very High Fair Average
1 Gulbarga 06 (1200)
10 (2000)
03 (600)
31 (6200)
50 (200)
2 Bidar 05 (1063)
09 (1915)
03 (638)
30 (6384)
47 (188)
3 Koppal 06 (1224)
09 (1836)
02 (408)
32 (6532)
49 (196)
4 Raichur 07 (1346)
11 (2115)
03 (576)
31 (5963)
52 (208)
5 Bellary 06 (1153)
11 (2115)
04 (769)
31 (5963)
52 (208)
Total 30 (1186)
50 (2000)
15 (580)
155 (6234)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above table shows the carrying costs paid by the farmer respondents to
carry the goods from one place to another place with in the market yard One thing is
clear from the above table that more than 60 of respondents are satisfied with
carrying costs paid by them But minor percentage ie 20 percent of respondents not
57
satisfied saying transporters were charging heavy cost and 580 percent were
opinioned that transportation cost paid by them was neither high or nor low but it was
fair From these data analysis maximum number of farmers respondents were fully
and partially satisfied with carrying cost paid in the market yard
Facilities Provided at APMC
Table-315
Facility Provided at APMC
Particulars
Districts Grand Total
Gulbarga Bidar Koppal Raichur Bellary
Yes No Yes No Yes No Yes No Yes No Yes No Total
Water 26 23 27 24 26 24 27 23 27 23 133 (5320)
117 (4680)
250 (100)
Toilet 4 46 4 43 4 45 5 47 5 47 22 (5320)
228 (9120)
250 (100)
Canteen 13 37 12 35 12 37 13 39 12 39 62 (2480)
188 (7520)
250 (100)
Communication 27 23 26 23 27 22 26 24 27 25 135 (5400)
115 (4600)
250 (100)
Shopping property
21 29 20 27 20 29 20 32 20 32 101 (4040)
149 (5960)
250 (100)
Market information
28 22 27 20 27 22 29 23 29 23 140 (5600)
110 (4400)
250 (100)
Other facilities (if any)
29 21 28 19 28 21 30 22 30 22 145 (5800)
105 (4200)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Table-316
Coefficient Correlation between Varieties with in Facilities Provided by APMC
Sl No
Facilities by APMC
Facilities by APMC
Water Toilet Canteen Commu-nication
Shopping Property
Market Information
Other Facilities
1 Water 1000 235() 535() 984() 749() 428() (a)
2 Toilet 235() 1000 474() 230() 376() 218() (a)
3 Canteen 535() 474() 1000 526() 693() 505() (a)
4 Communication 984() 230() 526() 1000 749() 411() (a)
5 Shopping property
749() 376() 693() 749() 1000 705() (a)
6 Market information
428() 218() 505() 411() 705() 1000 (a)
7 Other facilities (if any)
(a) (a) (a) (a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
58
The coefficient correlation calculated between the variables (one variable with
the another variable) within the facilities provided by APMC is shown in the above
table Each variable is positively correlated with other variable
Table-317
lsquotrsquo - Test Values
One-Sample Statistics
Facilities by APMC N Mean Std Deviation
Std Error Mean
Water 250 14680 5000 3162E-02
Toilet 250 19120 2839 1795E-02
Canteen 246 17480 4351 2774E-02
Communication 250 14600 4994 3158E-02
Shopping Property 246 15894 4929 3143E-02
Marketing Information 250 14400 4974 3146E-02
Other Facilities 145 20000 0000(a) 00000 Note a) Cannot be computed because the standard deviation is 0
One-Sample Test
Facilities by APMC
Test Value = 0
t Df Sig
(2-tailed) Mean
Difference
95 Confidence Interval of the
Difference
Lower Upper
Water 46424 249 000 14680 14057 15303
Toilet 106500 249 000 19120 18766 19474
Canteen 63015 245 000 17480 16933 18026
Communication 46225 249 000 14600 13978 15222
Shopping Property 50573 245 000 15894 15275 16513
Marketing Information
45776 249 000 14400 13780 15020
59
Dissemination of Market Information
The dissemination of market information is most important so to make the best
use of this information There is no use of collection of data if it is not disseminated
well in time There are different sources for dissemination of market information such
as news papers radio and television department of government post and telephone
etc
The different news papers published in English Hindi and regional languages
are publishing the information about piracy of various commodities in different
markets There are periodical magazines and journals published weekly fortnightly or
monthly Radio and television is depicting the news about markets and broadcast and
televise the information about prices daily in its programmes The various department
of the government publish various reports concerned with agricultural marketing The
traders exchange the information about prices and arrivals in different markets
through telephone or through letters Price bulletins are published by directorate of
marketing and inspection providing information about prices and personal contact
between farmer to farmers farmer to trader etc is also a source of information The
following table provides the details of responses of source of market information
Table-318
Sources of Market Information
Sl No Particulars Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 Newspaper 32 (2013)
30 (1886)
31 (1950)
33 (2075)
33 (2015)
159 (636)
2 Radio and TV 42 (1981)
40 (1886)
42 (1981)
44 (2075)
44 (2075)
212 (848)
3 Dept of government 05 (2083)
05 (2083)
05 (2083)
05 (2083)
04 (1667)
24 (96)
4 Post and telephone - - - 01 (5000)
01 (5000)
02 (08)
5 Personal contact - - - 01 (5000)
01 (5000)
02 (08)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
60
A comparative analysis of sources of market information reveals that 848
percent of farmer respondents obtained the market information through radio and
television followed 6360 percent from newspapers and 372 from price bulletins
about the market 96 of total sample size depended on the various departments of
the governments such as directorate of economics and statistics of the central
government directorate of economics and statistics of the sates the agricultural
marketing departments of states etc about the prices in different regulated markets
Personal contact and post and telephone sources of market information is considered
to be a least sources from respondents
Table-319
Defects in Market Information
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Ignore retail prices 11 (2200)
10 (2553)
10 (2041)
11 (2115)
11 (2115)
53 (212)
2 Delay in news 13 (2600)
12 (2553)
13 (2653)
14 (2692)
14 (2692)
66 (2640)
3 Wide range of prices 05 (1000)
06 (1277)
06 (1224)
06 (1154)
07 (1346)
30 (1200)
4 Incomplete information
08 (1600)
08 (1702)
08 (1632)
09 (1730)
08 (1538)
41 (1640)
5 Illiteracy 07 (1400)
07 (1489)
07 (1428)
08 (1538)
08 (1538)
37 (148)
6 Others 06 (1200)
04 (851)
05 (1020)
04 (769)
04 (769)
23 (920)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
From the above table it can be seen that farmers are getting different
advantages for grading the products Their response is not homogenous ie 38
percent of the farmers are supported grading in easy marketing of the agriculture
produce 9680 percent are favoured grading in establishing to face competition and
61
128 percent of sample group opinioned about the grading that it will helps in
obtaining higher prices Only 6 of them favoured to reduction of cost of marketing
and 64 to easy to get finance facilities
Table-320
Ranking of Defects in APMC
Defects in APMC Ranking of Defects
Total First Second Third Fourth
No advance fund 32 (120)
216 (864)
02 (08)
02 (08)
250 (100)
Difficulty of storage 230 (920)
14 (560)
4 (160)
04 (160)
250 (100)
Lack of transportation 10 (40)
20 (80)
218 (872)
02 (080)
250 (100)
Lack of grading 10 (40)
179 (716)
02 (080)
59 (236)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The survey of APMC defects to rank on the basis of the respondents
preferences is shown in the above table 92 of the total respondents were opinioned
that the major defect in the APMC yard is difficulty of storage facilities followed by
no advance fund to farmers to meet the pre harvest expenses which constitute 864
of sample group
Table-321
Coefficient Correlation between Variables within Defects in Regulated Markets
Sl No
Defects in Regulated Markets
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 No Advance Money 1000 -354() 763()
2 Difficulty of Storage -354() 1000 044
3 Lack of Transport 763() 044 1000 Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
62
The details of the coefficient correlation calculated between all the variable of
defects in regulated markets are given in the above table Some variables within the
defects in regulated markets are found positive and negative correlated with each
other
Table-322
Correlation between Facilities Provided by APMC with Effects in Regulated
Markets
Sl No Facilities by APMC
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 Water - 269 () 058 - 218 ()
2 Toilet - 114 074 - 057
3 Canteen - 059 - 097 - 116
4 Communication - 276 () - 0062 - 222 ()
5 Shopping property - 173 () - 008 - 166 ()
6 Market information - 293 () - 141 () - 232 ()
7 Other facilities (if any)
(a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant The above table shows the computed result of correlation between the
facilities provided by the APMC to the farmers in the APMC with the defects
prevailing in the market yard The correlation was found significant between water
facilities communication facility shopping property and market information with no
advance money with a value -0269 -0276 -0173 and -0293 respectively The
correlation was insignificant between toilet and canteen facility in the market yard
with the no advance money
Difficulty of storage in the market yard is one of the most severe problem
found in the selected APMC yard The correlation between difficulty of storage with
the facilities by APMC were found insignificant in all cases except with market
information ie - 0141 But with lack of transport defect in the market yard the
63
correlation was insignificant between toilet and canteen with the transport defect with
a value of -0057 and -0116 respectively
Table-323
Facilities to Improve Market Efficiency
Facilities Ranking of Facilities
Total First Second Third Fourth Fifth
Trade more commodities 24 (96)
173 (692)
49 (196)
02 (08)
02 (08)
250 (100)
Increase in facilities 221 (884)
22 (880)
03 (12)
02 (08)
02 (08)
250 (100)
Role of government 34 (136)
29 (116)
175 (700)
06 (240)
06 (240)
250 (100)
Representative from farmers 04 (160)
20 (80)
10 (40)
212 (848)
04 (160)
250 (100)
Reduction in market fee 04 (16)
100 (400)
55 (220)
41 (1640)
50 (200)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-324
Coefficient Correlation between Variables of Facilities to
Improve Market Efficiency
Sl No
Facilities to Improve Market
Efficiency
Facilities to Improve Market Efficiency More
Commodities to Trade
Increase in
Facilities
More Role of Government
Representation From Framers
1 More commodities to trade
1000 419() -316() 355()
2 Increase in facilities
419() 1000 -619() 048
3 More Role of Government
-316() -619() 1000 336()
4 Representation from Framers
355() 048 336() 1000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
64
The above table depicts the values of the coefficient correlation calculated
between the variables of facilities suggested by the farmer to improve market
efficiency in the APMC yard
Table-325
Correlation between Facilities Provided with Facilities to Improve Market
Efficiency
Sl No
Facilities Provided by
APMC
Facilities to Improve Market Efficiency More
Commodity to Trade
Increase in
Facilities
More Role of Government
Representation from Farmers
1 Water -221() 098 -212() -167() 2 Toilet -100 -300() 220() 181() 3 Canteen -028 -076 -129() -089 4 Communication -218() 103 -222() -167() 5 Shopping
property 057 019 -249() 008
6 Market information
-073 116 -353() -176()
7 Other facilities (if any)
(a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The data collected about the opinion of the farmer respondents towards the
facilities provided by APMC is correlated with the suggestions obtained from them to
improve market efficiency further was given in the above table The result of
correlation is shown significant between water and communication facilities with
more commodities need to be allowed to trade under notified agriculture crops in the
APMC yard the correlation value is -0221 and -0218 respectively
A negative correlation between toilet and increase in market facilities ie -03
clearly indicates that APMC should concentrate on other facilities to improve market
efficiency other than toilet facility The government is required to play a vital role in
the APMC yard to improve the market efficiency by providing financial assistance to
APMC officials enabling them to provide essential facilities to the farmers and market
functionaries The correlation was negatively correlated between the facilities
provided by APMC listed in the above table except in toilet facility ie positive
correlation 0220 The highest negative correlation was computed between market
65
information with government role ie -0353 followed by -0249 (between shopping
property with government role) The farmersrsquo representation in the market committee
is also one of the important aspect in availing market facilities The correlation
between farmers representation with market facilities shows negative except in toilet
facility it is positive correlation ie 0181
Table-326
Correlation between Defects in Regulated Markets with Facilities to Improve
Market Efficiency
Sl No
Defects in Regulated Markets
Facilities to Improve Market Efficiency
More Commodities to
Trade
Increase in Facilities
Role of Government
Reduction in Market Fees
1 No advance money
611 () 039 343 () 439 ()
2 Difficulty of storage
-118 043 139 () 019
3 Lack of transport facility
500 () 059 445 () 895 ()
4 Lack of Gradation facility
-0115 0410 135 () 117
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The defects in the regulated markets were ranked by the farmers on their
preferences were also attempted to correlate with the additional facilities to be
provided to improve the market efficiency The correlation was positively correlated
between no advance money and lack of transport facility with the more commodities
to be permitted to trade in the market yard with value 0611 and 0500 respectively
No negative correlation was found between any of variables between defects in
regulated markets with the farmers opinions to improve market efficiency ie
increase in facilities Reduction in the market fees and charges is the another way for
the APMC officials to improve the market efficiency the correlation result is positive
with the market defects ie highest positive correlation with lack of transport facility
66
with reduction in market fees (0895) followed by no advance money with reduction
in market fees (0439) and (0117) between lack of gradation and reduction in market
fees Government role was also positively correlated to over come from all the defects
prevailing in the regulated market in the direction to improve market efficiency (the
correlation result was ranged between 0135 to 0445) Few defects were highly
correlated and others defects were less correlated with role of government variable
67
Table-327
Pearson Correlations
Correlations 18a 18b 18c 18d 19a 19b 19c 19d 19e
Pearson Correlation 18a 1000 -354() 763() 735() 611() 039 343() 439() 469() 18b -354() 1000 044 131 -118 043 139() 019 072 18c 763() 044 1000 911() 500() 059 445() 895() 898() 18d 735() 131 911() 1000 987() (a) 987() 948() 947() 19a 611() -118 500() 987() 1000 419() -316() 355() 1000() 19b 039 043 059 (a) 419() 1000 -619() 048 (a) 19c 343() 139() 445() 987() -316() -619() 1000 336() 1000() 19d 439() 019 895() 948() 355() 048 336() 1000 1000() 19e 469() 072 898() 947() 1000() (a) 1000() 1000() 1000
Sig (2-tailed) 18a 000 000 000 000 546 000 000 000 18b 000 510 276 065 508 033 781 611 18c 000 510 000 000 377 000 000 000 18d 000 276 000 000 000 000 000 19a 000 065 000 000 000 000 000 000 19b 546 508 377 000 000 491 19c 000 033 000 000 000 000 000 000 19d 000 781 000 000 000 491 000 000 19e 000 611 000 000 000 000 000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
68
Infrastructure Facilities in the APMC Yard
Efficient marketing infrastructure such as wholesale retail and assembly
markets and storage facilities is essential for costndasheffective marketing to minimize
post harvest losses and to reduce health risks Markets play an important role in rural
development income generation food security developing rural market linkages and
gender issues Planners need to be aware of how to design markets that meet a
communityrsquos social and economic needs and how to choose a suitable site for a new
market In many cases sites are chosen that are inappropriate and result in under use
or even no use of the infrastructure constructed It is also not sufficient just to build a
market attention needs to be paid to how that market will be managed operated and
maintained In most cases where market improvements were only aimed at
infrastructure upgrading and did not guarantee maintenance and management most
failed within a few years The details of the availability of infrastructure and farmers
opinion is shown in the following tables
69
Table-328
Infrastructure Facilities in the APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
Available Not Available Available Not
Available Available Not Available Available Not
Available Available Not Available Available Not
available Total
Transport 32 18 35 12 36 13 39 13 42 10 184 (7360)
66 (2640)
250 (100)
Cold storage 02 48 02 45 01 48 03 49 06 46 14 (560)
236 (9440)
250 (100)
Storage 35 15 38 09 36 13 37 15 40 12 186 (7440)
64 (2560)
250 (100)
Processing 30 20 35 12 38 11 41 11 38 14 182 (7280)
68 (2720)
250 (100)
Grading 28 22 40 07 41 08 40 12 37 15 186 (7440)
64 (2560)
250 (100)
Weighment 45 05 42 05 41 08 45 07 44 08 217 (8680)
33 (1320)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
70
Table-329
Satisfaction of Infrastructure Facilities in APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
S NS T S NS T S NS T S NS T S NS T S NS T
Transport 30 20 50 31 16 49 35 14 42 34 18 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Cold storage 01 49 50 - 47 47 - 49 49 01 51 52 02 50 52 04 (160)
246 (9840)
250 (100)
Storage 32 18 50 29 18 47 27 22 49 33 19 52 38 14 52 159 (6360)
91 (3640)
250 (100)
Processing 25 25 50 28 19 47 31 18 49 38 14 52 35 17 52 157 (6280)
93 (3720)
250 (100)
Grading 22 28 50 35 12 47 36 13 49 37 15 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Weighment 41 09 50 36 11 47 40 09 49 42 10 52 42 10 52 201 (8040)
49 (1960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total S ndash Satisfied NS ndash Not Satisfied T ndash Total
71
Defects in Weighing
As a rule when produce enters the market every agricultural produce has to
be weighed in the presence of the licensed weighmen and the receipt for weighment
has to be given to the farmer But even this system has certain defects as follows
Meager number of weighmen
Time of weighment of the produce
Old weighment equipments
The details of weighing practices in the APMC yard and the farmer
respondents opinion is shown in the following table
Table-330
Causes of Defects in Weighing
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Absence of licenced weigh man
20 19 19 18 19 95 (3800)
2 Under weighting 25 22 24 26 25 122 (4880)
3 Favouring for buyer
05 03 02 03 03 16 (640)
4 Faulty weights 00 02 01 02 02 07 280)
5 Faulty weight machineries
00 02 03 03 02 10 (400)
6 Others 00 00 00 00 01 01 (040)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Farmer respondents were identified under weighing was followed by the
absence of licensed weigh men and faulty weigh machines
72
Table-331
Importance of Grading of Produce
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Easy marketing 18 (3600)
17 (3617)
19 (3877)
20 (3846)
21 (4038)
95 (3800)
2 Reduction of cost 05 (1000)
03 (638)
02 (408)
02 (384)
03 (576)
15 (600)
3 Higher prices 05 (1000)
02 (425)
08 (1632)
10 (1923)
07 (1346)
32 (128)
4 Encourage competition
20 (4000)
18 (3829)
15 (3061)
19 (3653)
20 (3846)
92 (3680)
5 Easy to get finance 02 (400)
07 (1489)
05 (1020)
01 (192)
01 (192)
16 (640)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Processing of Produce
In agriculture marketing process was not an important function The most of
the commodities were selling in their original form But in modern age with change
in the tastes and preferences of the people and with the introduction of new
technology like refrigerator milling and banking of food grains the consumers
demand for processed goods has increased So in the modern system of marketing the
processing has become a most important function of the marketing
By processing we mean the change of the form of the product before its
consumption The processing of the agricultural products is having the advantages
such as add the value in the product converts into edible form preservation for longer
period use of surplus food less cost of production wide extent of the market and
generation of employment The study about the opinion of farmer respondents
towards the importance of processing in agriculture marketing was conducted and the
result is shown in the below Table 332
73
Table-332
Importance of Processing of Produce
Sl No
Particulars Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Add the value 45 (9000)
43 (9149)
45 (9184)
47 (9038)
47 (9038)
227 (9080)
2 Preservation for longer period
38 (7600)
36 (7660)
37 (7551)
40 (7692)
39 (7500)
190 (760)
3 Less cost of production
10 (1000)
09 (1915)
09 (1837)
10 (1923)
10 (1923)
48 (1920)
4 Wide extent of the marketing
03 (600)
03 (638)
03 (612)
03 (576)
04 (769)
16 (640)
5 Use of surplus food 01 (200)
- 01 (204)
01 (192)
01 (192)
04 (160)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The Table 332 reveals that the importance of processing of agriculture
producing in marketing more than 90 percent of farmer respondents are fully agreed
that processing definitely going to add the value to the agriculture producing in
marketing At the same time 76 percent of sample group are favoured that processing
helps in preservation of agriculture produce for longer period and 1920 percent and
640 percent of farmer respondents are opined that processing of agriculture produce
is important for less cost of production and wide extent of the marketing respectively
Only a minor percent ie 160 supported the processing helps to use of surplus food
From the above analysis it can be said that processing not only helps to farmers but
also to buyer of agriculture produce in many ways
74
Satisfaction towards Insurance Facilities
Table-333
Level of Satisfaction of Insurance Facilities
Sl No Satisfaction Level Agriculture Insurance
Total Insured Non-Insured
1 Satisfied 238 (9917)
02 (083)
240 (9600)
2 Unsatisfied 10 (10000)
- 10 (400)
Total 248 (9920)
02 (080)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Finance Requirements
According to Pyle ldquoMoney or credit is the lubricant that facilitates the
marketing machinerdquo there can be obstacles in performing various activities in case
there are inadequate funds to meet the expenditure involved in these functions The
biggest need of finance is to purchase the stock of agriculture produce and to meet the
agriculture expenses for farmers In the agricultural marketing the finance is having
more importance because of the nature of agricultural marketing The production is
seasonal and there is rush in the market at the time of harvest Huge amount is
required to farmers to meet fertilizers and pesticides expenses and to buyer for the
purchase of stock to get it stored and for its processing So the finance is required to
be arranged either by the owned fund or by taking loan Though the rate of interest
adds in the price of the commodity and the persons who is making this expenditure
realizes it as the reward of the function performed by him The researcher has
undertaken the study of finance facilities at the APMC yard other sources of credit
other than banking the factors affects the requirements of finance by agricultural
marketing firm as well as farmers and the interest paid on the credit the results of the
farmers opinion was collected and shown in the Table 334 335 336 and 337
75
Table-334
Satisfaction of Banking Facilities at APMC
Sl No Level of Satisfaction Availability of Banking Facilities
Total Available Not Available
1 Satisfied - 15 (602)
15 (600)
2 Unsatisfied 01 (10000)
234 (9398)
235 (9400)
Total 01 (040)
249 (9960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total The Table 334 depicts the farmerrsquos responses towards the availability of
banking facilities in the APMC yard and their satisfaction towards such services in the
market yard In all the APMCs of Gulbarga division which covers five districts only
6 of the respondents were satisfied and rest of 940 percent of farmers respondents
were unsatisfied for the non-availability of banking facilities in the yard
Table-335
Other Sources of Credit Facilities
Sl No Particulars Districts Total Gulbarga Bidar Koppal Raichur Bellary 1 Whole seller 09
(1800) 08
(1702) 08
(1632) 10
(1923) 10
(1923) 45
(1800) 2 Retail seller 05
(1000) 04
(851) 05
(1020) 05
(961) 04
(769) 23
(920) 3 Commission agents 32
(6400) 31
(6595) 32
(6531) 34
(6538) 33
(6346) 162
(6480) 4 Broker 03
(600) 03
(638) 03
(612) 03
(576) 03
(576) 15
(600) 5 Others 01
(200) 01
(212) 01
(204) 00
(000) 02
(385) 05
(200) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total The researcher has also attempted to collect the opinion from the farmers
about the availability of other sources of credit facilities to the buyer of agriculture
produce and to farmers The other sources of credit to farmers other than bank
includes wholesaler retailer commission agents and brokers Majority of farmer
76
respondents ie 6480 percent of sample size said that commission agents are most
easy source of credit followed by whole seller ie 18 percent and retailer seller ie
920 and brokers only 6 percent
Ranking the Factors of Finance Requirements
As the financial requirements in the agricultural marketing can play a big role
as stimulation of agricultural production and to promote the interest of agricultural
community There are two types of finance requirements one fixed capital which is
required for the building furniture office instruments etc to carry on the business of
agricultural market Second requirement variable capital this is required to purchase
of stocks to make the payment of transportation labourers bills and refreshments
etc The researcher during his field study has attempted to point out and tried to rank
the main factors for finance requirements The data so collected is shown in the Table
336
Table-336
Ranking the factors of finance requirements
Sl No
Finance Requirements
Ranking Finance Requirements Total
First Second Third Fourth Fifth
1 Nature of crop 123 (4920)
50 (2000)
35 (1400)
23 (920)
19 (760)
250 (100)
2 Terms of payments 84 (3360)
16 (640)
31 (1240)
105 (4200)
14 (560)
250 (100)
3 Economic conditions 09 (360)
132 (5280)
63 (2520)
25 (1000)
21 (840)
250 (100)
4 Fluctuations of prices 15 (600)
26 (1040)
104 (4160)
47 (1880)
58 (2320)
250 (100)
5 Volume of crop 19 (760)
26 (1040)
17 (680)
50 (2000)
138 (5520)
250 (100)
Total 250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
77
The above Table 336 shows that the ranking of finance requirements by the
farmer respondents Out of 250 sample respondents 123 farmers respondents ranked
first the nature of crop which determines the quantum of finance requirements
followed by 5280 percent towards economic conditions as ranked second and
fluctuation of prices ie 41 percent as third and terms of payment as fourth position
followed by volume of crop as fifth
Interest Paid on Bank Credit
Table-337
Interest Paid on Bank Credit
Sl No Particulars Interest Paid on Bank Credit
Total Very low Very high Average
1 Gulbarga 30 (6000)
12 (2400)
08 (1600)
50 (2000)
2 Bidar 27 (5745)
11 (2340)
07 (1915)
47 (1800)
3 Koppal 29 (5918)
12 (2449)
07 (1428)
49 (1920)
4 Raichur 32 (6154)
12 (2307)
08 (1538)
52 (2080)
5 Bellary 32 (6154)
13 (2500)
10 (1923)
52 (2080)
Total 150 (6000)
60 (2400)
40 (1600)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Services of Commission Agents
Commission agents are the main marketing functionaries operating in the
APMC yard among the other market participants They provide the necessary link in
the marketing of agricultural produce to the farmers They supply the necessary data
and useful assistance in the marketing of agricultural produce of the farmers They
help farmers in availing the services like assembling storing grading and finance etc
Hence the farmers are provided with channel of distribution by the APMC by
78
licensing these intermediaries and regulating their services The farmer respondents
were approached for obtaining their views about the quality of services covering
defects with commission agents commission paid to commission agents and their
satisfaction with commission agents The following Tables ie 338 339 and 340
gives the results of the survey data
During the field work by the researcher investigated to identify the defects
with commission agents from the farmers The data so collected are compiled and
shown in the Table 338 The major defect with the commission agent was they are
more favourable to the buyer which constitutes 68 percent of sample size 20 percent
of farmers respondents were pointed out the misguide by the commission agent to
farmers at the time of sale is the second major defects followed by high commission 8
percent lack of knowledge 320 and other defects constitutes 080 percent More than
70 percent of farmer respondents are taken the help of commission agents in selling
their agricultural produce out of that 5960 percent of farmers only satisfied with
services given by commission agents The 74 farmer respondents which constitutes
2960 percent of total sample group neither obtaining any form assistance in
marketing their produce and nor satisfied with services given by them
Table-338
Satisfaction towards Commission Agents
Sl No Level of Satisfaction Service from Commission Agents
Total Yes No
1 Satisfied 104 (5910)
45 (6081)
149 (5960)
2 Unsatisfied 72 (4090)
29 (3919)
101 (4040)
Total 176 (7040)
74 (2960)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
79
Table-339
Defects with Commission Agents
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Favoruable
to buyer 34
(6800) 32
(6808) 33
(6735) 35
(6730) 36
(6923) 170
(6800) 2 High
commission 04
(800) 04
(851) 04
(816) 05
(962) 03
(576) 20
(800) 3 Misguide 10
(1000) 09
(1915) 10
(2041) 10
(1923) 11
(2115) 50
(2000) 4 Lack of
knowledge 02
(400) 02
(425) 02
(408) 02
(385) 00
(000) 08
(320) 5 Others 00
(000) 00
(000) 00
(000) 01
(192) 01
(192) 02
(080) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
Table-340
Commission Paid to Agents
Sl No Particulars Commission Paid to Agents
Total Very Low Very High Average
1 Gulbarga 06 (1200)
18 (3600)
26 (5200)
50 (2000)
2 Bidar 08 (1702)
17 (3617)
22 (4680)
47 (1800)
3 Koppal 06 (1224)
17 (3469)
25 (5102)
49 (1920)
4 Raichur 06 (1153)
19 (3654)
27 (5192)
52 (2080)
5 Bellary 04 (769)
19 (3654)
30 (5769)
52 (2080)
Total 30 (1200)
90 (3600)
130 (5200)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
The responses of the farmers regarding the charges of the commission by the
commission agents clearly indicates that the commission agents charges excess
80
amount well above prescribed rate this can be found from the dissatisfaction of
farmers ie 36 percent of sample size Changing more than the prescribed by the act
by the commission agent is one of the marketing malpractices prevalent in the APMC
In general strict vigilance over such marketing malpractice is needed to safeguard the
interest of the farmers It is unfortunate to learn that a very small number of ie 12
percent of the sample group farmers have complained against the high commission
charged by the commission agents At the same time 52 percent ie more than one
half of the total sample size positively favoured towards the commission charges by
the commission agents saying that commission paid is average neither to high or too
low
Table-341
Cost of Cooli to Hamals
Sl No Particulars
Cooli to Hamals Total
Very High Very Low Average 1 Gulbarga 07
(200) 09
(1800) 40
(8000) 50
(2000) 2 Bidar 02
(425) 08
(1702) 37
(7872) 47
(1800) 3 Koppal 02
(408) 08
(1633) 39
(7959) 49
(1920) 4 Raichur 02
(385) 09
(1730) 41
(7885) 52
(2080) 5 Bellary 01
(192) 09
(1730) 42
(8076) 52
(2080) Total 08
(320) 43
(1720) 199
(7960) 250
(10000) Source Field survey Note Figures in bracket indicates percentage to total Table 341 depicts the cost of cooli paid to hamal in the market yard Hamals
are working in the APMC for loading and unloading of agriculture produce Farmer
respondents were satisfied with the cost of cooli to hamal it constitute 7960 percent
of total sample size only 320 percent of total told that hamals are charged high cooli
and 1720 percent of them totally satisfied with the charges paid to hamals Table 341
gives the level of satisfaction towards the services given by hamals Large number of
farmers are partly satisfied which constitute 6080 percent 376 percent fully satisfied
81
and 240 percent not at satisfied It is suggestible to the APMC to take measures to
control the hamals and their services to farmers
Level of Satisfaction with Hamals Services
Table-342
Level of Satisfaction with Hamals Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (3800)
30 (6000)
01 (200)
50 (2000)
2 Bidar 17 (3617)
29 (6170)
01 (213)
47 (1800)
3 Koppal 18 (3673)
28 (5714)
03 (612)
49 (1920)
4 Raichur 19 (3654)
32 (6153)
01 (192)
52 (2080)
5 Bellary 21 (4038)
33 (5962)
00 (000)
52 (2080)
Total 94 (376)
150 (6080)
06 (240)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Cooperation from APMC Officials
Along with the services from different market functionaries to farmers
cooperation from the APMC officials is also very important to farmers to boost their
psychological factors to bring their agricultural produce to APMC yard for sale A
good cooperation definitely creates belongingness in the minds of farmers The data
was collected through questionnaire about the level of satisfaction with the
cooperation from APMC officials and defects with them The information gathered is
shown in Table 343 and 344
82
Table-343
Level of Satisfaction with APMC Officials Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (2021)
08 (2105)
23 (1949)
50 (2000)
2 Bidar 17 (1809)
06 (1579)
24 (2033)
47 (1880)
3 Koppal 16 (2021)
05 (1315)
28 (2373)
49 (1960)
4 Raichur 20 (2127)
10 (2632)
22 (1864)
52 (2080)
5 Bellary 22 (2340)
09 (2368)
21 (1780)
52 (2080)
Total 94 (3760)
38 (1520)
118 (4720)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-344
Defects with APMC Officials
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Non-
cooperative 36
(200) 40
(2222) 40
(2222) 45
(250) 19
(1055) 180
(7200) 2 Favourable to
buyer 42
(1953) 43
(2000) 32
(1488) 41
(1907) 57
(2651) 215
(8600) 3 Laziness 18
(200) 17
(1888) 15
(1667) 20
(2222) 20
(2222) 90
(3600) 4 Expect money 08
(200) 06
(150) 05
(1250) 09
(2250) 12
(300) 40
(1600) 5 Improper
market data 14
(200) 13
(1857) 12
(1714) 14
(200) 17
(2429) 70
(2800) 6 Others - - 03
(300) 04
(400) 03
(300) 10
(400) Total 50
(2000) 47
(1880) 49
(1960) 52
(2080) 52
(2080) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
83
Malpractice Experience at APMC Yard
The major malpractices faced by the farmer respondents in the selected
APMCs while selling their agricultural produce in the study area is presented in the
Table 345
Table-345
Farmers Malpractice Experience at APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Inadequate grading
38 40 39 32 46 195
2 Inadequate packing
32 28 17 31 46 137
3 Unfavourable weightment
44 43 41 47 46 221
4 Excess samples 18 15 20 14 15 82
5 Inadequate supervision
21 23 28 22 25 119
6 Excess market charges
36 32 38 28 36 170
7 More favourable to buyer
41 42 43 48 49 223
8 Others 05 14 13 09 17 56
Total 50 (200)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The highest percentage of farmer respondents (221) are of the opinion that
unfavourable weighment in the sale is the major malpractice experienced by them
The second highest percentage of farmer respondents who are of the opinion that in
adequate grading by the buyer while selling their produce The third major
malpractice being taking excess market charges by commission agents as arbitrary
deduction in the sale amount of produce The next major malpractice (137) opined by
farmer respondents is regarding inadequate packaging to sale produce The other most
84
dominating and prevailing malpractice was found by the researcher is more
favourable to the buyer and improper weighment of their produce (223) in the market
yard For of respondents specified other malpractices as high wastages and non
payment of amount etc Inspite of all these malpractices affecting of the farmers it is
quite essential for all the APMCs in the study area should take some connective
measures to eliminate such malpractice Since the main purpose of the APMCs is to
regulate all marketing activities In the field study the steps taken by the APMC to
eliminate malpractice as expressed their views by the farmer respondents were
recorded very few percent of farmer respondents are of the opinion that APMC is
excising supervision over the malpractice regarding to selling and pricing the
commodity They also satisfied with the intervention of APMC officials to eliminate
malpractices in weighment grading activities but the farmer respondents were not at
satisfied with the APMC for not taking any steps to eliminate malpractices in payment
of sale price by the buyer to farmers
Disputes in APMC
So many disputes can arise among the farmers traders and middlemen over
the quality the grade the deductions and payment settlement etc The market
committees settles such disputes so the farmers as well as middlemen may not waste
their time and marketing in the court
During the field study the researcher has investigated to find out the opinion
of the farmers for main causes of disputes in the APMC yard The compiled
information is presented in the following Table 346
85
Table-346
Causes for Disputes in APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Price of produce
23 (2054)
20 (1786)
21 (1875)
24 (2143)
24 (2143)
112 (4480)
2 Quality of produce
10 (1786)
08 (1429)
05 (892)
11 (1964)
22 (3928)
56 (2240)
3 Weightment 30 (1974)
31 (2039)
32 (2105)
28 (1842)
31 (2039
52 (6080)
4 Timing of payment
37 (1989)
38 (2043)
40 (2150)
32 (1720)
39 (2096)
186 (7440)
5 Grading of produce
08 (1509)
10 (1887)
07 (1320)
11 (2075)
17 (3207)
53 (2120)
6 Warehousing 05 (1250)
08 (200)
07 (1750)
06 (1500)
14 (350)
40 (1600)
7 Others 18 (200)
15 (1667)
24 (2667)
25 (2777)
08 (888)
90 (3600)
Total 50 (2000)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Majority of respondents have disputes with commission agents as well as the
traders and few of them have disputes with hamals From the Table 346 it could be
seen that one of the major reasons for dispute being untimely payment (Delay in
payment) to farmer ie seller of agricultural produce Nearly more than half of the
respondents (7440) have opined that they are not being paid as per the provisions of
Act ie immediately after the sale of produce The next major causes of dispute being
weighment of produce Marketing three fifth of the respondents are not happy with
the weighment system prevailing in the market The third major causes of disputes is
being price of the produce About one third of the respondents (4480) have opined as
determination of the price of produce is also one of the major factor for the disputes
The other reasons of the disputes in the APMC yard in the Gulbarga division was
86
found are regarding quality of produce (2240) warehousing (1600) as determined by
farmers Very few of respondents feel that there is no reasons for disputes in the
APMC yards
As far as settlement of disputes are concerned farmer respondents are
preferred for settlement of disputes with traders at the level of secretary of the APMC
A part from that they also some time preferred to solve disputes through the dispute
committee where disputes are settled by arbitration Only 5 percent of the farmer
respondents from the sample size are of the opinion that disputes are settled by the
court of law In Gulbarga division of APMC maximum disputes were settled at
secretary level it calls for efficient secretaries in APMCs
Farmers respondents were also asked about the level of satisfaction in
settlement of disputes Nearly more than 40 percent of respondents are satisfied with
settlement of disputes However 30 percent of respondents are not fully satisfied with
settlement of disputes rest of the sample group were not given any response in this
regard
Quality of Services in APMC Yard
The sale of the agricultural produces by the farmers in the APMC yard
depends on the various services and their quality provided by the APMCs to the
farmers It is the true that if the services provided by APMCs to farmers are very
good large number of farmers bring their produce to the APMC market for sale
instead of open markets This definitely attracts more number of traders and market
functionaries to the market This results an impetus in getting not only good price for
their produce but also a competitive cost to the traders The farmer respondents were
asked to assess the quality of market services provided by the APMCs the responses
of respondents who expressed their level of satisfaction and dissatisfaction to different
facilities provided is presented in the following table
87
Table-347
Quality of Services at APMC
Quality of Services Name of APMC
Total Gulbarga Bidar Koppal Raichur Bellary
Very good 04 (200)
04 (200)
04 (200)
03 (150)
05 (250)
20 (80)
Good 41 (2930)
38 (1881)
40 (1980)
42 (2079)
41 (2029)
202 (808)
Bad 02 (250)
01 (1250)
01 (1250)
02 (250)
02 (250)
08 (320)
Very bad 01 (200)
01 (200)
02 (200)
01 (200)
-
05 (20)
Either bad good 02 (1333)
03 (200)
02 (1333)
04 (2667)
04 (2667)
15 (600)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total It could be observed from the above Table 347 that 8080 percent of farmer
respondents are of the opinion that the quantity of services provided by the APMC is
good 320 percent of total sample size of farmer respondents are if the opinion that it
is bad and 80 percent of the respondents are of the opinion that it is very good It is
to say satisfy that 8880 percent of farmer respondents are of the opinion that the
service provided by APMC is good and above average Hardly 520 percent of the
respondents expressed that the service provided are bad or very bad and 60 percent of
them neither opinioned bad nor good ie they were neutral
88
Table-348
Customary Deduction
Name of the APMCs As per Bye Laws More than Bye Laws Total
Gulbarga 05 (100)
45 (900)
50 (200)
Bidar 04 (851)
43 (9149)
47 (188)
Koppal 05 (1020)
44 (8980)
49 (1960)
Raichur 05 (961)
47 (9039)
52 (2080)
Bellary 07 (1346)
45 (8654)
52 (2080)
Total 26 (1040)
224 (8960)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
The study was conducted to know the farmers responses towards the
customary deductions from the sale of agricultural produce Sample groups were
given option whether customary deductions were as per bye laws or more than bye
laws Large number of farmer ie more than 89 of sample size were strongly
opinioned that customary deductions were not according
89
CHAPTER-IV PERFORMANCE EVALUATION OF APMCs
All the regulated markets working in Karnataka are distinct organization
created under the special clause with the objective of bringing the socio-economic
changes not only in the agricultural marketing sector but also economy as a whole
The existence of regulated markets creates an environment that is more favourable to
the existence of competitive conditions and to bring about the harmonious relations
between the farmers and market functionaries These organizations have the special
features as compared with the other organizations so the service of funds of regulated
markets and uses of the regulated market would be different keeping this the
following para attempted to analyze their financial performance in terms of their
profit position and growth in profit income position expenditure position and other
relevant financial aspects
A) Sources of Income of Regulated Markets
As far as regulated market are concerned they are non-profit or non-trading
organizations established with the objective of providing marketing services facilities
and other amenities for the producer of agricultural products who is in need of these
services for the facilitation of the sale of their produce To ensure smooth and
efficient services to farmer seller APMCs are required to own their establishments
and staff such as commission agent trader hamal and others who are carrying out
various markets functions ie grading processing weighment etc Hence APMCs
need finance to meet their administrative and management expenses of a recurring
and non-recurring nature of expenses The basic infrastructures are needed in the
provision of amenities and other facilities requiring capital investment for creating
these facilities in the market yard Establishment of infrastructure facilities not only
enough but also they need to be maintained the SC maintenance expenses is of
recurring in nature APMCs also need to have the permanent staff to do all the
functions in the market yard involves the fixed expenditure in the form of salaries
wages etc This necessitates the APMCs to have the permanent and regular sources of
income to meet all these regular expenses of fixed in nature and some portion of
recurring expenditure
90
APMCs are also required to meet the recurring expenditure such as
maintenance of road expenditure building godowns market yard vehicles and
machinery After the initial investment in these facilities from the borrowed capital
APMCs need to make payment of interest on loans tax charges payment of salaries
printing and stationery etc are to be paid periodically The different sources of
incomes through which the APMCs are earning revenue are shown in the following
parts along with the various expenditures by the APMC in the market yard
I) Market Fees
The APMCs Act and other laws relating to the agricultural marketing has
authorized all the regulated markets to levy and collect the market fees on the
agricultural produce bought for sales in the market yard The collection of the market
fees is the major source of income to the market committee and also the major source
of finance which determines to a very great extent the pace of development of market
yards both in terms of facilities and infrastructure
In traditional agricultural marketing market fees were collected on the basis of
the quantity bought for sale but these days the Acts and rules have been amended
more suitably giving maximum power to market committee to collect market fees on
the advalorem basis The chief items of the marketing charges are the market fee that
should be paid to the market committee the weighment fee commission brokerage
hamali charges and grading charges etc
In Karnataka in the beginning the market fees imposed on the buyers at the
rate not exceeding 30 paise per Rs100- of produce bought The APMC Act was
amended in 1973 August by an ordinance and the market fee to be levied was raised
to one rupees and the ordinance was however replaced by an act The rate of market
fees on every arrivals of cattle is Rs5- for each animal and rupee one for every sheep
and goats
The act also given some provisions for cooperative society doing business
within the market yard market fees shall be imposed and collected at the rate of 80
paisa per Rs100- of produce bought whereas in case of any other traders it is at the
91
rate of one percent on their total purchases ie one rupees per 1000 rupees This may
be considered as the cause for slow growth of agricultural marketing in Karnataka in
general and Gulbarga division in particular
II) License Fees
The various market functionaries who are operating in the regulated markets
of the state are the commission agents trader broker store keeper grader stockiest
importer exporter and any other functionary are imposed licence fee by the market
committee The license fee is the second main source of income to regulated market
This fee is collected in lum-sum as specified in the APMC act annually from each
applicant The total sum of income from license fees depends on the number of
market functionaries and the rate of license fee for various categories of market
functionaries
APMCs are authorized by KAPM (I) Act 1966 to impose and collect the
license fees from each category of market functionaries The maximum license fee
that could be levied under the act by the market committee on different types of
functionaries are Rs200 from traders and commission agents Rs100- each from
broker processor exporter importer ginner and crusher Rs25- from retail trader
and a nominal amount of Rupees 5 from hamal or cart man
III) Penalty
Penalties for evasion of payment of fee are imposed by the market
committees Section 65 (A) or KAPM Act 1966 empowers the regulated market
committee to punish with fine of not less than 12 percent But this penalty should not
exceed 30 percent on the amount of market fee If the penalty is not paid within the
specified time under bye laws made under section 65 of the act in it desecration also
recover similarly and pay over to the market committee or the board such amount
IV) Other Income Sources
APMCs collect market fees license fees and penalty from defaulters the
market committees are also generating the incomes from the following sources
a) Income from own properties
b) Income from deposits
92
c) Sale of books and forms
d) Sale of grass and cow dung
e) Fire fighter rent
f) Transfer fees and registration fees
g) Sale of plots etc
1) Income Position of Selected Regulated Markets
The income information of 15 APMCs ie three APMCs from each districts
in Gulbarga division were collected by the researcher from their annual reports and
other financial statements The component of the various income sources and their
respective figures provide a good insight to their financial performance The trends in
the growth of total incomes and individual incomes over a five year study period ie
2009-10 to 2013-14 helps in understanding the performance of all the selected
APMCs
I) Income Position of Gulbarga APMC
The income position of selected APMCs in Gulbarga district over the five
years study period are shown in the Table 41 below
Table 41 reveals a steady growth in income to the Gulbarga APMC in all the
years of study Conspicuously the total income from all sources to APMC was
Rs21976lakhs in 2009-10 while it was increased to 87054 lakhs in 2013-14 with a
annual aggregate growth of 5922 percent over the previous years When we look at
the figures of market fees holds the lions share in contributing income which range
between 8605percent to 9294 percent The same fact was also found in the APMC
Shorapur and APMC Shahapur In APMC Shorapur the percentage of market fees in
total income was in between 8420 percent to 9745 percent In case of Shahapur
APMC it ranges between lowest 6422 percent to highest of 6610 percent The other
major sources from where the APMC generated income were license fees levy and
licence fee penalty and other incomes generated was in total percentage fall between
906 percentage to 1995 percent in Gulbarga APMC In Shahapur and Shorapur
APMC penalty income was negligible it was Rs 031 lakhs to Rs 891 lakhs in
Shorapur APMC and Rs 126 lakhs to Rs 563 lakhs in Shahapur APMC during the
period under study
93
Table-41
Statement of Income of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 25106
(8605) 27111 (8763)
39233 (9155)
68713 (9294)
79170 (9094)
2 License Fees 321 (110)
487 (157)
561 (130)
664 (089)
733 (084)
3 Levy and License Fee 2069 (709)
1822 (58)
1981 (462)
2055 (277)
2382 (273)
4 Penalty 1180 (404)
642 (207)
519 (121)
625 (084)
1177 (135)
5 Interest on Deposits and other Income
500 (172)
574 (293)
558 (132)
1575 (256)
3592 (414)
Total 21976 (100)
30936 (100)
42852 (100)
73932 (100)
87054 (100)
Sl No APMC Shorapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 6012
(9039) 5647
(9281) 9607
(9745) 11365 (9079)
18674 (8420)
2 License Fees 104 (156)
106 (174)
078 (079)
117 (093)
117 (052)
3 Levy and License Fee 128 (192)
120 (197)
054 (054)
338 (270)
486 (219)
4 Penalty 200 (300)
101 (166)
031 (031)
206 (164)
891 (401)
5 Interest on Deposits and other Income
207 (313)
110 (182)
088 (011)
491 (394)
2008 (908)
Total 6651 (100)
6084 (100)
9858 (100)
12517 (100)
22176 (100)
Sl No APMC Shahapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1436
(8422) 1563
(7854) 1722
(7163) 3888
(7793) 5812
(6610) 2 License Fees 080
(469) 114
(572) 219
(910) 250
(501) 679
(772) 3 Levy and License Fee 034
(199) 042
(211) 0158 (657)
269 (539)
1071 (1218)
4 Penalty 126 (739)
183 (919)
196 (815)
204 (408)
563 (640)
5 Interest on Deposits and other Income
029 (171)
088 (444)
109 (455)
378 (759)
667 (76)
Total 1705 (100)
1990 (100)
2404 (100)
4989 (100)
8792 (100)
Source Annual reports of APMC Gulbarga 2009-10 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
94
It can be concluded from the above three APMCs in Gulbarga district that
Gulbarga APMC leading first in generating income Shorapur APMC is in second
position followed by APMC Shahapur
II) Income Position of Bidar APMC
Three APMCs from the Bidar district were selected for the comparative study
The income level of these three APMCs for the five years research period is presented
in the Table 42
The income generated by the APMC Bidar was lower in the beginning years
of research period ie it was Rs 18275lakhs in 2009-10 Rs16443 lakhs in 2010-11
and Rs17575 lakhs in 2011-12 During end years of research period it increased to
Rs31805 lakhs in 2012-13 and Rs 30420 lakhs in 2013-14 A critical look of the
figures in all the years of selected APMCs in Bidar district indicates that market fees
was the major component of total income of APMC which comprises an approximate
of 7910 percent in lowest side and 9554 percent in highest side Lowest market
fees percentage was recorded in APMC Aurad during 2012-13 and the highest
percentage was registered in 2013-14 in AMPC Bidar
95
Table-42
Statement of Income of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 16744
(9162) 15043 (9148)
15593 (8870)
29256 (9198)
29065 (9554)
2 License Fees 486 (265)
363 (220)
436 (248)
688 (216)
577 (1089)
3 Levy and License Fee 320 (175)
239 (145)
334 (190)
477 (149)
338 (111)
4 Penalty 600 (328)
466 (283)
515 (293)
719 (226)
202 (066)
5 Interest on Deposits and other Income
125 (070)
332 (204)
697 (397)
665 (211)
238 (08)
Total 18275 (100)
16443 (100)
17575 (100)
31805 (100)
30420 (100)
Sl No APMC Bhalki 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1424
(8431) 1232
(8999) 2423
(8846) 3596
(8304) 5871
(8544) 2 License Fees 096
(568) 081
(591) 163
(595) 293
(676) 306
(445) 3 Levy and License Fee 123
(728) 021
(153) 043
(156) 189
(436) 214
(311) 4 Penalty 022
(130) 017
(124) 034
(124) 138
(318) 222
(323) 5 Interest on Deposits and other
Income 024
(143) 018
(133) 076
(279) 114
(266) 258
(377)
Total 1689 (100)
1369 (100)
2739 (100)
4330 (100)
6871 (100)
Sl No APMC Aurad 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 903
(8014) 886
(8478) 887
(8431) 1333
(7910) 1617
(7922) 2 License Fees 093
(825) 081
(775) 083
(788) 123
(729) 132
(646) 3 Levy and License Fee 055
(488) 054
(516) 052
(494) 118
(700) 181
(886) 4 Penalty 006
(053) 004
(038) 012
(114) 051
(302) 050
(241) 5 Interest on Deposits and other
Income 069
(615) 020
(193) 018
(173) 060
(359) 061
(302)
Total 1126 (100)
1045 (100)
1052 (100)
1685 (100)
2041 (100)
Sources Annual reports of APMCs Bidar for 2003- 04 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
96
The other major sources contributing to the income of the APMCs in Bidar
district were license fee which was 646 percent to 625 percent in Aurad APMC
445 percent to 676 percent in APMC Bhalki and 216 percent to 1089 percent in
Bidar district APMCs The total income of Bhalki APMC was not constantly
increased during the study period It was fell to Rs 1369 lakhs in 2010-11 but it
increased during last three years of research period reached to Rs 6871 lakhs in
2013-14 As far as APMC Aurad is concerned it was inceased only in 2012-13 and
2013-14 As far as APMC Aurad is concerned it was increased only in 2012-13 and
2013-14 It was fall in 2010-11 and 2011-12 ie Rs 1045 lakhs and Rs 1052 lakhs
respectively It can be seen in table 42
III) Income Position of Koppal APMC
The statement of income of selected APMCs in Koppal district for the five
years ie 2009-10 to 2013-14 are given in table 43 The income of Koppal APMC
Gangavati APMC and Kustagi APMC were collected and analyzed in the following
paragraphs
The income generation in each of the five years by the APMCs selected as
sample in Koppal district was in APMC Koppal it was between Rs 3709 lakhs in
2009-10 to Rs 11032 lakhs in 2013-14 In APMC Gangavati a recorded
performance was found in earning incomes ie Rs 51692 lakhs in 2009-10 increased
rapidly to Rs91123 lakhs in 2013-14 APMC Kustagi was found to be least
performance in generation of the income The highest income was colleted by it was
Rs 3346 lakhs in 2013-14 and lowest was found in 2009-10 ie Rs 1341 The
annual aggregate growth in income generation by Koppal APMC was 3948 percent
per year The overall growth in APMC Gangavati income was 7628 percent over the
beginning year of research period The overall growth of percentage in the income of
APMC Kustagi during the five years study period was 14952 percent
97
Table-43
Statement of Income of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3269
(8813) 4072
(6961) 5675
(9119) 5682
(8775) 10021 (9083)
2 License Fees 090 (242)
110 (188)
101 (162)
097 (149)
106 (096)
3 Levy and License Fee 062 (167)
193 (329)
133 (213)
187 (288)
207 (187)
4 Penalty 104 (280)
211 (360)
146 (234)
178 (271)
255 (231)
5 Interest on Deposits and other Income
184 (498)
1263 (2162)
168 (272)
331 (517)
443 (403)
Total 3709 (100)
5849 (100)
6223 (100)
6475 (100)
11032 (100)
Sl No APMC Gangavati 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 49044
(9487) 67016 (9724)
75834 (9692)
74674 (9363)
84042 (9223)
2 License Fees 236 (045)
287 (042)
311 (039)
303 (038)
569 (062)
3 Levy and License Fee 703 (135)
515 (074)
807 (103)
716 (089)
1038 (114)
4 Penalty 189 (036)
212 (030)
267 (034)
258 (032)
317 (034)
5 Interest on Deposits and other Income
1520 (297)
887 (130)
1020 (142)
3804 (478)
5157 (567)
Total 51692 (100)
68917 (100)
78239 (100)
79755 (100)
91123 (100)
Sl No APMC Kustagi 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1214
(9052) 1234
(9167) 1384
(8216) 2079
(8266) 2516
(7519) 2 License Fees 024
(178) 029
(215) 031
(184) 036
(143) 041
(122) 3 Levy and License Fee 014
(104) 016
(118) 026
(154) 055
(218) 063
(188) 4 Penalty 001
(007) 001
(007) 003
(017) 007
(027) 018
(054) 5 Interest on Deposits and other
Income 088
(659) 066
(493) 240
(1429) 338
(1346) 708
(2117)
Total 1341 (100)
1346 (100)
1684 (100)
2515 (100)
3346 (100)
Sources Annual reports of APMCs Koppal for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
98
The glance at the each income figures with respect to three APMC in Koppal
district reveals that market fees again dominant ie 6961 percent to 9724 percent to
total income of the APMC Other important heads from which the income was
derived were license fee 096 to 242 in Koppal APMC 038 to 062 in
APMC Gangavati and 122 to 215 in APMC Kustagi during the period under
consideration ie 2009-10 to 2013-14 The penalty fees collected by the APMC
Kustagi and APMC Gangavati were almost below one percent to total income and this
was above 2 percent in APMC Koppal A sizeable income ie 498 percent to 2117
percent has also been contributed under the head interest on deposits and other
income The trend in this income was more or less similar during all the years of
research period
IV) Income Position of Raichur APMC
The income position and growth in income position of selected APMCs in
Raichur district was presented in the Table 44 The income was shown for the study
period ie 2009-10 to 2013-14 Riachur is considered to be a commercial street the
volume of business is high as compared to the Lingasugur Sindnoor APMC has
acquired a good position in the Raichur district as compared to other APMC in the
district
Table 44 gives the various incomes acquired by the selected APMC in the
Raichur district Raichur as a commercial centre there would be large number of
market functionaries and large volume of transactions Hence the total income of the
market was obviously quite high (around Rs120202 lakhs annually) During 2009-10
the total income of APMC Raichur was Rs 48932 lakhs APMC Sindnoor was Rs
20629 lakhs and APMC Lingasugur was just Rs 2907 lakhs It was shown an
increasing trend in all the three APMC selected in Raichur district during all the five
years of research period Income was found in the year 2013-14 in the sample APMC
from Raichur district Income from the other sources ie penalty interest on deposits
sale of shops godowns and sale of books and forms were much higher as compared to
the corresponding incomes in the other years of study Such an increase in the total
income was noticed in the Table 44
99
Table-44
Statement of Income of Selected APMCs in Raichur District
(Rs In lakhs)
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 45972
(9395) 55687 (9542)
68293 (9491)
82847 (8275)
106917 (8894)
2 License Fees 314 (064)
326 (056)
335 (046)
336 (033)
347 (028)
3 Levy and License Fee 1218 (248)
1463 (250)
1525 (211)
1540 (153)
1617 (134)
4 Penalty 218 (044)
250 (040)
269 (037)
289 (028)
313 (026)
5 Interest on Deposits and other Income
1210 (249)
630 (110)
1528 (215)
15105 (1511)
11008 (918)
Total 48932 (100)
58356 (100)
71950 (100)
100117 (100)
120202 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 18106
(8776) 21418 (9410)
28650 (9523)
33937 (7914)
45905 (9281)
2 License Fees 212 (102)
209 (091)
238 (079)
226 (052)
258 (052)
3 Levy and License Fee 1029 (498)
658 (1289)
613 (203)
1569 (365)
1292 (261)
4 Penalty 819 (396)
309 (135)
386 (128)
2080 (485)
1108 (224)
5 Interest on Deposits and other Income
464 (228)
166 (075)
197 (067)
5069 (1184)
892 (182)
Total 20629 (100)
22760 (100)
30084 (100)
42881 (100)
49456 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 2016
(6934) 2361
(6367) 3457
(5687) 3702
(5632) 4221
(5582) 2 License Fees 084
(288) 161
(434) 219
(360) 379
(576) 397
(521) 3 Levy and License Fee 493
(1695) 552
(1488) 817
(1344) 871
(1325) 1017
(1344) 4 Penalty 032
(110) 064
(172) 186
(306) 213
(324) 286
(378) 5 Interest on Deposits and
other Income 282
(973) 570
(1539) 1399
(2303) 1408
(2143) 1641
(2172)
Total 2907 (100)
3708 (100)
6078 (100)
6573 (100)
7562 (100)
Sources Annual reports of APMCs Raichur for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
100
In order to see the composition of the total revenue of Raichur Sindnoor and
Lingasugur APMCs the income statement of 2009-10 to 2013-14 was considered A
detailed analysis at the figures in the table 44 indicates that a market fee was the
major contributor to the total income which contributed to the tune of 5582 percent
to 9542 percent The other major sources of revenue to the APMC are interest on
deposits (182 to 2172) Penalty income was contributed average in APMC
Sindnoor moderate in APMC Raichur and minor contribution in APMC Lingasugur
V) Income Position of Bellary APMC
In Bellary district development activities undertaken by the department of
agriculture are about increasing yield of kharif season and other seasons under
irrigation this has naturally increased the market turnover in the Bellary district
APMC The details of the income collected by the sample APMCs in Bellary district
is shown in the Table 45
Table 45 gives the details of an account of income of the APMCs selected
from the Bellary district for the analysis purpose A birdsrsquo eye view of the total
income figures during financial years indicate that the annual average income of the
APMC of Bellary was around Rs 33660 lakhs except during the first three years of
the study period The market fees collected during the study years was also ranged in
between the 8165 in 2009-10 to 8942 in 2013-14 Levy and license fees were
contributed to the extent of 306 to 806 to total income and penalty amount was
just only to 075 to 462 to total incomes
101
Table-45
Statement of Income of Selected APMCs in Bellary District
(Rs In lakhs)
Sl No APMC Bellary 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 13400
(8165) 19398 (8680)
24037 (8514)
35774 (8865)
54510 (8942)
2 License Fees 316 (192)
343 (153)
0392 (139)
399 (098)
346 (056)
3 Levy and License Fee 1323 (806)
1529 (684)
2001 (708)
1912 (473)
1870 (306)
4 Penalty 320 (194)
370 (165)
462 (163)
451 (111)
458 (075)
5 Interest on Deposits and other Income
1052 (643)
706 (318)
1338 (476)
1816 (453)
3775 (621)
Total 16411 (100)
22346 (100)
28230 (100)
40352 (100)
60959 (100)
Sl No APMC Hospet 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3458
(8051) 4335
(7629) 5075
(7924) 5561
(8158) 6811
(7884) 2 License Fees 089
(207) 086
(151) 097
(151) 108
(158) 132
(152) 3 Levy and License Fee 407
(948) 592
(1041) 636
(993) 663
(972) 892
(1032) 4 Penalty 041
(095) 166
(292) 215
(335) 217
(318) 289
(334) 5 Interest on Deposits and
other Income 300
(699) 503
(887) 381
(597) 267 (39)
515 (598)
Total 4295 (100)
5682 (100)
6404 (100)
6816 (100)
8639 (100)
Sl No APMC Siraguppa 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 9054
(9160) 11330 (9131)
25909 (9352)
31838 (9237)
45500 (8285)
2 License Fees 068 (068)
071 (057)
107 (038)
108 (031)
105 (019)
3 Levy and License Fee 363 (367)
341 (274)
491 (177)
492 (142)
535 (097)
4 Penalty 019 (019)
047 (037)
054 (019)
089 (026)
096 (017)
5 Interest on Deposits and other Income
381 (386)
619 (501)
1143 (414)
1939 (564)
8676 (1582)
Total 9885 (100)
12408 (100)
27704 (100)
34468 (100)
54912 (100)
Sources Annual reports of APMCs Bellary for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
102
As far as APMC Hospet and APMC Siraguppa are considered the market fees
collected by these APMCs were became major sources of income followed by levy
and license fees and penalty It is noticed from the same table that APMC Siraguppa
has made history in generation of income during 2012-13 and 2013-14 ie it earned
Rs 34468 lakhs and 54912 lakhs incomes respectively Almost the income was
jumped five times to beginning year income ie 9885 lakhs This clearly carries the
message that APMC Siraguppa was not performed consistency in financial
performance APMC Hospet has ensured stability in the performance but in terms of
amount of collection it was positioned third place in selected APMC in Bellary
district
B) Uses of Incomes by APMCs
1) Market Committee Fund
Incomes received by the market committees in the form of market fees
licence fees and other fees or incomes by way of penalty are used as per the Section
90 of KAPM (R) Act of 1966 All expenditure incurred by the committee under or for
the purposes of this Act shall be defrayed out of the market fund and any surplus
remaining at the close of each market year after such expenditure has been met shall
be credited to the permanent fund of the committee within the three months of the
close of the year and it shall be used only towards incurring the expenditure of
permanent nature such as construction of buildings acquisition of lands or such other
purposes as the Director of Agricultural Marketing may specify
After meeting all such expenditure excess shall be invested in state
cooperative Apex bank or other cooperative banks or government savings banks
account The KAPM (R) Act 1961 clearly defined the purposes for which the market
committee fund may be expanded beyond the above mentioned The fund so created
should be allowed to uses for the purpose laid down in this Act ie providing
facilities in the market areas payment of allowances arrangement of amenities such
as grading and standardization collection and dissemination of market information
settlement of disputes payment of interest on borrowed loans etc
103
II) Contribution to Consolidated Fund
All the marketing committees are bound to contribute some amount to
Karnataka State Agriculture Marketing Board The Director of Agricultural Marketing
estimates the approximate expenditure likely to be incurred by the state government
during a particular financial year an account of salary and other allowances and
election of the members of the market committees Taking all these estimated
expenditures under section 91 of the KAPM Act the Director of Agricultural
Marketing shall by order determine the percentage of gross receipts that every
market committee must and should contribute to the state consolidated fund of the
state
III) Contribution to KSAM Board
Agriculture section 92 of the Karnataka produce marketing Act has made a
provision to create ldquoMarketing Development Fundrdquo and it is managing by the KSAM
board Every market committee is required to contribute every month to the board 5
percent of the gross receipts during the previous calendar month
IV) Other Expenditures
A part from the contribution to market committee fund contribution to state
consolidated fund and contribution to KSAM Board market committees are also
necessary to meet the other expenses regularly such as administration expenses which
includes salary to staffs printing and stationary legal fee advertisement rent
electricity bill and maintenance charges Expenditure to provide amenities to market
functionaries and farmers and other miscellaneous
Expenditure Position of Selected APMCs in Gulbarga District
In this part an effort is made to analyze data relating to the total expenditures
incurred and components of expenditures with respective figures to get the depth of
knowledge about the trends in growth of expenditures over a period of 5 years
between 2009-10 to 2013-14
104
Table-46
Trends in Growth of Expenditure of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga
Years 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 I Contribution to state
consolidated fund 15732 (7016)
13575 (6562)
18231 (7200)
33150 (7215)
35676 (7225)
II Contribution to KSAM board
1933 (862)
1484 (750)
2216 (875)
4024 (876)
4197 (850)
III Administrative expenses 2708 (1208)
2396 (1211)
3076 (1215)
5514 (1200)
6004 (1216)
IV Expenditure on amenities
1713 (764)
1832 (926)
1327 (524)
2532 (551)
2696 (546)
V Miscellaneous 337 (150)
496 (251)
472 (186)
727 (158)
805 (163)
Total 22423 (100)
19783 (100)
25322 (100)
45947 (100)
49378 (100)
2 APMC Shorapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
1359 (4500)
4146 (4052)
4140 (4050)
3340 (3890)
2439 (5220)
II Contribution to KSAM board
473 (1565)
1751 (1711)
1750 (1712)
1556 (1812)
905 (1936)
III Administrative expenses 665 (2216)
2587 (2528)
2581 (2525)
2128 (2478)
1182 (2530)
IV Expenditure on amenities
440 (1458)
1586 (1550)
1534 (1501)
1285 (1496)
107 (228)
V Miscellaneous 079 (261)
070 (159)
005 (212)
277 (324)
040 (086)
Total 3020 (100)
10234 (100)
10223 (100)
8586 (100)
4673 (100)
3 APMC Shahapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
363 (4801)
703 (6701)
920 (5742)
2480 (6688)
2308 (6454)
II Contribution to KSAM Board
054 (714)
064 (610)
067 (418)
081 (218)
074 (206)
III Administrative expenses 154 (2037)
128 (1220)
252 (1573)
501 (1351)
489 (1367)
IV Expenditure on amenities
065 (860)
072 (686)
143 (892)
263 (709)
258 (721)
V Miscellaneous 120 (1580)
082 (783)
22 (1375)
383 (1034)
447 (1252)
Total 756 (100)
1049 (100)
1602 (100)
3708 (100)
3576 (100)
Source Annual reports of APMC Gulbarga for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
105
As that of the income position the analyses of the pattern of expenditure also
important as the functions of the regulated markets are constrained by the financial
limitations Here the study of expenditure dimension of regulated market was felt
necessary The pattern of the growth in expenditure has shown a steady pace during
2012-13 and 2013-14 in APMC Gulbarga It was very lowest in 2010-11 ie 19783
lakhs The major items of expenditures to which Gulbarga APMC Shorapur APMC
and Shahapur APMC were diverted include contribution to state consolidated fund
expenditure on amenities and contribution to KSAM board During the research
period the share contribution to state consolidated fund was ranged between 6562
to 7223 in Gulbarga APMC this percent of share in total expenditure was in
between 3590 to 5220 in APMC Shorapur and in APMC Shahapur it was
4801 to 6701 At the same time the contribution to KSAM board was almost
below 20 to total expenditure in all three APMCs selected in Gulbarga district
The administration expenses was found to be second major item of
expenditure in sample units of Gulbarga district It was all most stable in Gulbarga
APMC ie 12 and above 2216 to 25305 in Shorapur APMC and 1220 to
2037 in the Shahapur APMC The other expenses such as the security facilities
rent taxes electricity printing and stationary charges etc remained as minor
expenditure
II) Expenditure position of selected APMCs in Bidar District
The expenditure statement relating to the selected APMCs in Bidar district is
shown in the below Table 47 The percentage of individual expenditure to total
expenditure for the period of five years is also presented in the same table
A glance on the statement of trends in growth of expenditure in the selected
APMC in Bidar district reveals that the Bidar APMC had an annual expenditure
around Rs 145 lakhs In case of APMC Bhalki annual average expenditure was
around Rs 2118 lakhs and in APMC Aurad this amount was Rs 1701 lakhs
106
Table-47
Trends in Growth of Expenditure of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
6600 (7141)
10883 (7016)
8645 (6625)
10623 (6740)
13753 (7267)
II Contribution to KSAM board
1761 (823)
1260 (812)
1370 (1050)
1668 (1058)
1972 (1042)
III Administrative expenses
1382 (1496)
1945 (1254)
1249 (957)
1597 (1013)
2292 (1211)
IV Expenditure on amenities
275 (298)
462 (298)
1019 (781)
986 (568)
759 (401)
V Miscellaneous 225 (242)
961 (620)
766 (587)
888 (621)
149 (079)
Total 9243 (100)
15511 (100)
13049 (100)
15762 (100)
18925 (100)
2 APMC Bhalki 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
503 (5164)
619 (5213)
768 (4931)
1245 (4777)
2284 (5359)
II Contribution to KSAM board
069 (711)
076 (640)
184 (1183)
334 (1281)
889 (2085)
III Administrative expenses
380 (3902)
426 (3586)
547 (3510)
918 (3525)
858 (2013)
IV Expenditure on amenities
011 (112)
031 (265)
041 (260)
087 (335)
189 (444)
V Miscellaneous 012 (211)
036 (296)
018 (116)
023 (082)
042 (099)
Total 975 (100)
1188 (100)
1558 (100)
2607 (100)
4262 (100)
3 APMC Aurad 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
365 (5577)
188 (3067)
256 (3514)
486 (4065)
2185 (4113)
II Contribution to KSAM board
048 (740)
093 (1516)
089 (1219)
182 (1517)
782 (1471)
III Administrative expenses
211 (3210)
186 (3050)
243 (3341)
361 (3016)
1521 (2862)
IV Expenditure on amenities
014 (221)
105 (1725)
121 (1661)
150 (1255)
751 (1415)
V Miscellaneous 018 (252)
041 (642)
019 (265)
018 (147)
074 (139)
Total 656 (100)
613 (100)
728 (100)
1197 (100)
5313 (100)
Source Annual reports of APMC Bidar for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
107
From the table 47 it was clear that administrative expenses constitute 957
to 1496 in total expenses in APMC Bidar it was as high as compared to APMC
Bidar and APMC Aurad ie 2013 to 3902 during the research period In Aurad
the situation was completely different ie it ranged between 2862 to 3341
during the same period ie 2009-10 to 2013-14
The trends in the contribution to state consolidated fund also showed an
increasing and decreasing trend in all the three APMCs in Bidar district during the
plan period In Bidar APMC it was registered lowest contribution to state
consolidated fund in the year 2009-10 ie Rs 6600 lakhs and the highest in Rs
13753 lakhs in 2013-14 Similarly in case of APMC Bhalki lowest was recorded in
2009-10 ie Rs 975 lakhs and highest in the year 2013-14 ie Rs 4262 lakhs But
in APMC Aurad beginning year ie 2009-10 it was Rs 365lakhs decreased to Rs
188 lakhs in 2010-11 and again increased to maximum Rs 2185 lakhs in 2013-14
Apart from a sizeable proportion of expenditure (ie 116 to 961) was made
under the head miscellaneous
III) Expenditure position of selected APMCs in Koppal
The trends in the growth of total expenditure incurred by the sample APMCs
in the Koppal district is presented for the five years period ie 2009-10 to 2013-14 in
the below Table 48
Table 48 depicts the expenditure position of three APMCs selected for the
present study in the Koppal district A detailed analysis of this indicates that the total
expenditures incurred by APMC Koppal were increased through out the study period
from Rs 2217 lakhs in 2009-10 to Rs 6862 lakhs in 2013-14 The same situation
was also found in case of APMC Gangavati ie Rs 29714 lakhs in 2009-10
increased to Rs 54160 lakhs in 2013-14 and in APMC Kustagi total expenditure was
Rs 4015 lakhs in 2009-10 raised to Rs 6295 lakhs in 2013-14
108
Table-48
Trends in Growth of Expenditure of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
1157 (5217)
1522 (5071)
2205 (5316)
2261 (5555)
4023 (5862)
II Contribution to KSAM board
143 (646)
224 (748)
307 (741)
287 (705)
537 (782)
III Administrative expenses
668 (3014)
944 (3147)
1167 (2813)
1101 (2704)
1720 (2506)
IV Expenditure on amenities
226 (1019)
267 (891)
333 (805)
332 (815)
480 (700)
V Miscellaneous 023 (104)
044 (143)
137 (325)
091 (221)
102 (150)
Total 2217 (100)
3001 (100)
4149 (100)
4072 (100)
6862 (100)
2 APMC Gangavati 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
15819 (5324)
23396 (5410)
28621 (5450)
27388 (5470)
29896 (5520)
II Contribution to KSAM board
1902 (640)
2422 (560)
2757 (525)
2753 (550)
3629 (670)
III Administrative expenses
8338 (2806)
12541 (2900)
15807 (3010)
14821 (2960)
15381 (2840)
IV Expenditure on amenities
3310 (1114)
4329 (1001)
4989 (950)
4657 (930)
4604 (850)
V Miscellaneous 345 (116)
558 (129)
342 (065)
451 (090)
650 (120)
Total 29714 (100)
43246 (100)
52516 (100)
50070 (100)
54160 (100)
3 APMC Kustagi 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2168 (5400)
2357 (5610)
2498 (5520)
2647 (5620)
3607 (5730)
II Contribution to KSAM board
225 (560)
189 (450)
288 (660)
363 (770)
535 (850)
III Administrative expenses
1169 (2913)
1195 (2845)
1326 (2930)
1232 (2615)
1711 (2718)
IV Expenditure on amenities
422 (1050)
405 (965)
319 (705)
396 (840)
319 (507)
V Miscellaneous 031 (077)
056 (130)
094 (185)
072 (155)
123 (195)
Total 4015 (100)
4202 (100)
4525 (100)
4710 (100)
6295 (100)
Source Annual reports of APMC Koppal for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
109
When we look at the percentage of specific expenditure in the total
expenditure contribution to state consolidated fund was major component ie in
Koppal APMC 5071 to 5862 in APMC Gangavati 5324 to 5520 and in
APMC Kustagi 54 to 5730 during the plan period However contribution to
KSAM Board constitute an annual average around Rs 3 lakhs per year in APMC
Koppal Rs 2693 lakhs per year in APMC Koppal Rs 2693 lakhs per year in
APMC Gangavati and Rs 32 lakhs per year in APMC Kustagi Administration
expenses also got secondary importance in the expenditure position followed by the
expenditure on amenities in the market yard Miscellaneous expenditure constitutes a
negligible percentage in the total expenditure
IV) Expenditure position of selected APMCs in Raichur
Table 49 depicts the year wise total expenditure spent by the sample
APMCs in the Raichur district during the five years period of study ie 2009-10 to
2013-14 Table 49 reveals that the expenditure incurred by the APMC Raichur was
not constantly increased It was decreased in 2010-11 and 2011-12 indicating that it
was more efficient in control of expenditure but during last two years of plan period it
increased from Rs44965 lakhs in 2009-10 to Rs67431 lakhs in 2013-14 with annual
aggregate growth over pervious year Rs4493 lakhs
In case of Sindnoor APMC the annual growth during the study period was
Rs3835 lakhs over the previous year As far as APMC Linagsugur is concerned this
was Rs 564 lakhs A keen observation on the expenditure statement of selected
APMCs in Raichur district points out that the APMC Raichur has got first rank in
terms of the total expenditure incurred among the selected APMCs in the district
followed by the APMC Sindnoor and APMC Lingasugur respectively As use well
contribution to state consolidated fund remained the dominating expenditure in the
total expenditure followed by expenditure on amenities Administration expenses and
contribution to KASM Board The state consolidated fund which was eaten away the
major position of total expenses (6535) to 7238 in Raichur APMC 5518 to
5730 in APMC Sindnoor and 5518 to 5730 in APMC Sindnoor and 5566 to
600 in APMC miscellaneous expenses remained minor expenses in total expenses
110
Table-49
Trends in Growth of Expenditure of Selected APMC in Raichur District
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 31862 (7086)
24764 (6535)
30247 (7100)
39880 (7238)
21275 (3155)
2 Contribution to KSAM board
3795 (0844)
5135 (1355)
5197 (1220)
6391 (1160)
3539 (525)
3 Administration expenses 5216 (1160)
4036 (1065)
4090 (960)
4849 (880)
(1550)
4 Expenditure on Amenities 2905 (646)
2065 (545)
2185 (513)
3471 (630)
(4210)
5 Miscellaneous 1187 (264)
1894 (500)
882 (207)
508 (092)
(560)
Total 44965 (100)
37894 (100)
42601 (100)
55099 (100)
67431 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 6283
(5655) 7740
(5518) 11182 (5685)
14152 (5690)
17353 (5730)
2 Contribution to KSAM board
833 (750)
1000 (713)
1241 (631)
1644 (661)
1968 (650)
3 Administration expenses 589 (530)
588 (419)
1017 (517)
1300 (523)
1332 (440)
4 Expenditure on Amenities 3350 (3015)
4418 (3150)
5959 (3030)
7496 (3014)
9443 (3118)
5 Miscellaneous 0050 (050)
280 (200)
270 (137)
279 (112)
188 (062)
Total 11111 (100)
14026 (100)
19669 (100)
24871 (100)
30284 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 1102
(5566) 1364
(5818) 2193
(5910) 2674
(6130) 2879
(6000) 2 Contribution to KSAM
board 127
(640) 331
(1431) 382
(1030) 689
(1580) 773
(1612) 3 Administration expenses 159
(804) 144
(614) 394
(1061) 267
(611) 362
(755) 4 Expenditure on Amenities 500
(2530) 483
(2060) 673
(1814) 628
(1440) 710
(1480) 5 Miscellaneous 092
(460) 023
(095) 069
(185) 104
(239) 074
(153) Total 1980
(100) 2345 (100)
3711 (100)
4362 (100)
4798 (100)
Source Annual reports of APMC Raichur for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
111
V) Expenditure position of selected APMCs in Bellary
In the Table 410 the details of the various expenditure incurred by the three
APMCs which are taken for the research as sample in the Bellary district are shown
clearly along with individual expenditure percentage to total
The total expenditure for all the five years of the study and the details of
expenditure under each heads along with the percentage to total of Bellary APMC
indicates that a rapid growth was found in total expenditure ie Rs 8835 lakhs in
2009-10 increased to Rs 33116 lakhs in 2013-14 with compound annual growth
during study years 27482 This compound growth in the APMC Hospet was found
to be negative in 2010-11 and 2013-14 and positive in 2011-12 and 2012-13 In case
of Siraguppa APMC the compound growth was 47147 during research period
112
Table-410
Trends in Growth of Expenditure of Selected APMC in Bellary District
(Rs In lakhs)
Sl No APMC Bellray
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
4477 (5067)
3860 (2767)
4820 (2026)
6933 (2811)
10076 (3042)
II Contribution to KSAM board
746 (844)
643 (461)
1803 (758)
1155 (468)
1679 (507)
III Administrative expenses
3310 (3746)
4673 (3350)
15965 (6711)
16011 (6490)
20499 (6190)
IV Expenditure on amenities
276 (312)
159 (114)
1190 (500)
558 (226)
838 (253)
V Miscellaneous 026 (031)
011 (007)
008 (005)
011 (005)
024 (008)
Total 8835 (100)
13946 (100)
23766 (100)
24668 (100)
33116 (100)
2 APMC Hospet 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2406 (7014)
2210 (7161)
2852 (6562)
2961 (6860)
2460 (7176)
II Contribution to KSAM board
320 (932)
216 (700)
416 (957)
429 (993)
317 (924)
III Administrative expenses
481 (1402)
418 (1354)
425 (978)
402 (931)
418 (1219)
IV Expenditure on amenities
114 (332)
101 (327)
269 (618)
219 (507)
125 (365)
V Miscellaneous 109 (320)
141 (458)
384 (885)
305 (709)
108 (316)
Total 3430 (100)
3086 (100)
4346 (100)
4316 (100)
3428 (100)
3 APMC Siraguppa 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
4088 (5154)
4055 (5011)
7662 (4813)
9122 (4313)
28595 (6310)
II Contribution to KSAM board
564 (711)
544 (672)
1238 (778)
1581 (748)
2626 (579)
III Administrative expenses
3030 (3820)
2903 (3587)
5026 (3157)
6919 (3271)
9763 (2154)
IV Expenditure on amenities
167 (211)
293 (362)
883 (555)
1477 (698)
2888 (637)
V Miscellaneous 082 (104)
297 (368)
1111 (697)
2051 (970)
1452 (320)
Total 7931 (100)
8092 (100)
15920 (100)
21150 (100)
45324 (100)
Source Annual reports of APMC Bellary for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
113
C) Profit Position
Profit is the excess of income over expenditures by the organization Profit is
the best indicator of the performance of any organization Higher the profit higher is
the efficiency and vice-versa APMCs are established not for profit motive but profits
remain important for their survival for future An attempt here is made to know profit
position by taking income and expenditure of all the selected APMCs in the Gulbarga
division and conclusion is drawn about their performance by comparing in APMC
with other APMC and also level of performance during the period under study
Table 411 depicts the year wise income expenditure and profitloss position
of the selected APMCs in the Gulbarga district The income of the three sample
APMCs from the Gulbarga district was shown an upward trend during the research
period ie 2009-10 to 2013-14 expect in the year 2010-11 the APMC Shorapur
income was down to Rs 6084 lakhs from Rs 6651 lakhs in 2009-10 When we see
the expenditure position of all the APMCs in the same table neither it was constantly
increasing or decreasing over a period of time it was showing zigzag trend Expect
the Shahapur APMC remained increasing during the plan period from Rs 756 lakhs
in 2009-10 to Rs 3576 lakhs in 2013-14
114
Table-411
Profit Position of Selected APMC in Gulbarga District
(Rs In lakhs)
Year Gulbarga Shorapur Shahapur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 29176 22423 6753 6651 3020 3631 1705 756 949
2010-11 30936 19783 11153 6084 10234 - 4150 1990 1049 941
2011-12 42852 25322 17530 9859 10223 0364 2404 1602 802
2012-13 73932 45947 27984 12517 8586 3931 4989 3708 1281
2013-14 87054 49378 37676 22176 4673 17502 8792 3576 5216
Source Annual Reports of Gulbarga APMC for 2009-10 to 2013-14
115
The detailed study of profit position of the selected APMC in Gulbarga district
also indicates that Shahapur APMC has made average amount of the profit in research
period without incurring any loss in the same period But APMC Shorapur had made
huge loss in the year 2010-11 ie Rs 4150 lakhs during heavy expenditures As per
APMC Gulbarga is concern profit was increased steadily from Rs 6753 lakhs in
2009-10 to Rs 37676 lakhs in 2013-14 with an annual aggregate growth of Rs 6184
lakhs per year
The Table 412 reveals that the profit or loss position of the selected APMCs
in Bidar district The analysis of profit of above APMCs in the table indicates that
Bidar APMC has positioned first in earning profit among three APMCs followed by
Bhalki APMC and APMC Aurad During the research period APMC Aurad had
incurred to Rs 3271 lakhs in 2013-14 The profit of Bidar APMC was ranged in
between Rs 932 lakhs to Rs 16042 lakhs and APMC Bhalki it was lowest to Rs
181 lakhs to highest Rs 2608 lakhs Both income and expenditure of Bidar APMC
was increased rapidly over a period time But in case of Aurad APMC the degree of
growth of expenditure was greater than the degree of growth in income which
reported slow growth in the profit The situation was different in case of APMC
Bhalki it was opposite and was almost 4 times increased in APMC Bhalki ie from
Rs 714 lakhs to Rs 2608 lakhs profit remained stable in APMC Aurad ie in
between Rs 323 lakhs to Rs 16042 lakhs in APMC Bidar during the period under
consideration
116
Table ndash 412
Profit Position of Selected APMCS in Bidar District
(Rs In lakhs)
Year Bidar Bhalki Aurad
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 18275 9243 9031 1689 975 714 1126 656 469
2010-11 16443 15511 932 1369 1188 181 1045 613 432
2011-12 17575 13049 4526 2739 1558 1181 1052 728 323
2012-13 31805 15762 16042 4330 2607 1722 1685 1197 487
2013-14 30420 18925 11495 6871 4262 2608 2041 5313 - 3271
Source Annual Reports of Bidar APMC for 2009-10 to 2013-14
117
The Table 413 deals with the trends in growth of income expenditure and
profit position of sample group of APMCs from the Koppal district Koppal district
APMCs were considered to be minor APMCs in the Gulbarga division A micro study
of these three APMCs in Koppal district reveals that APMC Gangavati was a leading
APMC in the Koppal district as it made super profit during the research period as
compared to APMC Koppal and AMPC Kustagi APMC Koppal has made average
profit ie Rs 1492 lakhs to Rs 4170 lakhs and APMC Kustagi has made normal
profit ie from Rs 540 lakhs to Rs 3995 lakhs during the five years study period
ie 2009-10 to 2013-14 Increased expenditures in APMC Koppal and APMC
Kustagi was eaten the profit
Profit position of the three APMCs from the Raichur district for the period of
five years ie 2009-10 to 2013-14 is shown in the Table 414 The table clearly
shows the year wise income position and its growth expenditure position and its trend
and the profit trend Among these three APMCs selected in sample from the Raichur
district Raichur APMC has earned highest amount of income which resulted highest
profit during the study period as compared to the APMC Sindhnoor and APMC
Lingasugur The profit of APMC Raichur was Rs20629 lakhs in 2009-10 increased
to Rs 45018 lakhs in 2013-14 during the research period During the same period
the profit of APMC Sindhnoor was increased from Rs 9518 lakhs to Rs 19171
lakhs and APMC Lingasugur from Rs 1327 to Rs 2201 lakhs with percentage
growth of almost 100 and 9026 respectively
118
Table-413
Profit Position of Selected APMCs in Koppal District
(Rs In lakhs)
Year Koppal Gangavati Kustagi
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 3709 2217 1492 51692 29714 21977 1185 645 540
2010-11 5849 3001 2848 68917 43246 25671 1346 775 571
2011-12 6223 4149 2074 78239 52516 25722 1684 1005 679
2012-13 6475 4072 2403 79755 50070 29684 2514 1469 1045
2013-14 11032 6862 4170 91123 54160 36963 10291 6295 3995
Source Annual Reports of Koppal APMC for 2009-10 to 2013-14
119
Table-414
Profit Position of Selected APMCs in Raichur District
(Rs In lakhs)
Year Raichur Sindnoor Lingusugur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 40895 19035 21859 20629 111111 9518 3761 2434 1327
2010-11 48932 44965 3966 22760 14026 8734 2907 1980 926
2011-12 58356 37894 20462 30084 19669 10414 3708 2345 362
2012-13 71950 42601 29348 42881 24871 18009 6078 3711 2367
2013-14 100117 55099 45018 49455 30284 19171 7562 4362 2201
Source Annual Reports of Raichur APMC for 2009-10 to 2013-14
120
The Table 415 reveals the year wise profit made by the sample APMCs in the
Bellary district APMC Hospet has made least profit during all five years research
period but it increased from Rs 864 lakhs in 2009-10 to Rs 5211 lakhs in 2013-14
APMC Bellary had achieved significant progress in earning profit as compared to
APMC Siraguppa The profit of APMC Bellary steadily increased around 4 times
over the beginning year ie Rs 7576 lakhs in 2009-10 to Rs 27843 lakhs in 2013-
14 But the APMC Sirguppas profit was highest recorded in 2011-12 and 2012-13 ie
Rs 11784 lakhs and Rs 13315 lakhs respectively
121
Table-415
Profit Position of Selected APMCS in Bellary District
(Rs In lakhs)
Year Bellary Hospet Siragoppa
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 16411 8835 7576 4295 3430 864 9885 7931 1954
2010-11 22346 13946 8399 5682 3086 2596 12408 8092 4316
2011-12 28230 23786 4444 6404 4346 2058 27704 15920 11784
2012-13 40352 24682 15670 6816 4316 2499 34466 21150 13315
2013-14 60959 33116 27843 8639 3428 5211 59912 45324 9587
Source Annual Reports of Bellary APMC for 2009-10 to 2013-14
122
CHAPTER-V FINDINGS SUGGESTIONS AND CONCLUSION
FINDINGS
1 During field study the researcher found that all the APMCs working in
Gulbarga division are suffered storage facilities in general and cold storage
facilities in particular This calls for medium and big producers to take storage
facilities by paying heavy fees to private service provider
2 The field investigation resulted that the farmers have been experienced
difficulties in getting timely payment even after the sale of their produce
3 It is learnt from the field study of market participant that larger participant
were qualified upto secondary and the technical qualification such as ITI
Diploma etc Education among market participant is considered to be most
significant factor in discharging their duties and responsibilities more
efficiently and effectively
4 The analysis of nature of participant in the agricultural market revealed that
commission agents were dominant in the total market participant followed by
traders with 25 of sample group and Hamalas which constitute 16 of
sample size
5 Macro studies of facilities at the APMC yard in five districts of Gulbarga
division opinioned the lack of facilities ie Non-availability of drinking water
canteen transport and communication facilities etc One sample lsquoTrsquo test was
applied and the result shows that lsquotrsquo values ranged for above facilities between
46425 to107000 Mean difference was found between 14400 to 2000
6 The correlation between two variable ie advance money and number of
commodities was +0611 which is insignificant Similarly the correlation
between transport facility and role of government in market and graduation
facility with more representatives from farmers resulted 0445 and 0948 also
in significant but the only significant factor found between difficulty of
storage and increase in facilities with a value of 0508
7 There are different sources of incomes available to APMC These sources may
be classified like market fees licence fees penalty etc Among these sources
123
of income market fees collected by APMC were major but other incomes are
also envisaged in KAPM (R) Act 1966
8 The expenditure position of the selected APMCs in Gulbarga division which
covers five districtrsquos found that major use of expenditure by each APMCs
were contribution to state consolidated fund and contribution to KSAM Board
which was ranged between 3042 to 7210 and 564 to 2630
respectively
9 There are only three charges allowed for deduction from the sale produced of
farmers in Gulbarga APMC division they are commission to agents Hamali
and weighment Field investigation by researcher found that these charges are
nominal
SUGGESTIONS
1 To achieve its (APMC Act) objectives and for effective implementation of its
bye law and policies it is suggested that APMCs should open its branches at
Hobli level so that they may help and guide the formers in marketing of their
grown agricultural produce
2 It is recommended to all APMCs in Gulbarga division to take efforts to stop
rural marketing to get better price An inspection team has to be formed to
stop local sales The team member should visit all the villages coming under
the jurisdiction of the APMC during Post harvest
3 Lots of changes have to be brought into the marketing activities in the APMC
yard Scientific grading and enlightment for all commodities in the market
yard be made compulsory in a phased manner
4 Illiteracy of formers and lack of Medias for communication of information has
been a big problem in rural as well as semi-urban areas The information
obtained should be in a position to help them in decision making Hence it is
recommendable to each APMC for equipping the intelligence cell and branch
offices with highly qualified and trained staff to perform the job quicker to
help producers at right time
5 The existing facilities of processing and storage in all the APMC of Gulbarga
division are inadequate This gap need to be filled up The local government
administrative bodies financial agencies and APMCs should motivate the
124
processing units to be set up and also more godowns are to be encouraged for
construction in these areas
6 Proper co-ordination between the financial agencies established by APMCs or
any other organization to be set up for this purpose is necessary This
definitely prevent the exploitation of farmers by private financiers This
problem needs to be tackled on priority basis in Gulbarga division
7 To avoid the injustice at the time of weighment of farm produce on arrival
and sale APMCs needs to make it compulsory to install electronic weighting
machines The issue of weighment note to the agriculturist by agents is made it
compulsory
8 As far as Gulbarga division APMCs are concerned they have completely
neglected the importance of two marketing services ie assembling and
processing The absence of these two services in the study area is a reflection
on its lethargic and indifferent attitude in providing a comprehensive package
of marketing services to the rural farmers
9 Lots of changes have to be brought into the payment to the farmers after sales
The strong actions against the defaulting commission agent should be
exercised and also cautioned against such delays on their part when any
complaint from the farmers regarding the delay In this regard formulation of
rigid policy is recommended at all APMCs
10 Some of the APMCs in Gulbarga division are still practicing mutual
negotiation method of sale this leads unfavourable price for the agricultural
produce Auction system of sale is made compulsory for all commodities
arriving in the market yard and negotiation method is to be prohibited
11 It was noticed from the market yard during the field visit different types of
malpractices on the part of the unscrupulous market functionaries In order to
eliminate this harassment to farmers the marketing committee has to detect
such unethical practices from market participants and they be severely
punished with fine and imprisonment
12 To improve the overall quality of services (marketing services and
infrastructure facilities) it is strongly advisable to marketing committees to
implement all the provisions lay down in KAPM (R) Act 1966 and rules in
1968 along with suggestions made by Indian standards Institute (RSI) for the
benefit market functionaries in general and farmers in particular
125
13 A network of rural storage centres should be built on a priority basis in order
to prevent distress sales wastage and loss arising out of inadequate and
defective storage facilities
14 These storage centres may be constructed and managed by panchayats
cooperatives and other suitable agencies selected by the State Government
15 Farmers should be provided with receipts for the commodities stored by them
Each receipt should be a negotiable instrument to enable them to obtain credit
from banks
16 The banks should provide credit to the extent of 90 percent of the value of the
stocks stored by the farmers and the credit should be provided at concessional
rates of interest
17 Arrangements for the display of prices on notice boards at important public
places like hospitals schools panchayat ghars etc should be made
18 There must be proper coordination between market intelligence and policy
making departments so that the later may better understand the problem and
can make such adjustments in the information as may be called for
CONCLUSION
Indiarsquos long-neglected agriculture sector is all set to grow faster We have
improved a lot since independence In the last few years it has grown at an average
rate of 31 only and there is a need to step up the growth in this sector Then only
Indiarsquos GDP growth cross 9 and rural income and rural employment increases
It is time to APMCs to give concrete shape to the agro-industrial integration
by starting industrial units based on agricultural raw-materials This integration will
create a better economic atmosphere for the growth of the Karnataka region as well as
Gulbarga division
126
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4 Acharya S S M S Rathore and P R Sharma Agricultural Marketing - A
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1999
7 Amarchand D and B Vardharajan An Introduction to Marketing Vikas Pub-
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Ronald Press Company New York 1955
15 Campbell K O 1973 Agricultural Marketing and Prices Cheshire
Publishing Melbourne Australia
16 Carter S 1998 Global Agricultural Marketing Management (Marketing amp
Agribusiness Texts Series (Series 09005676 No 3)
127
17 Chakraborty and Krian Sankar 2009 Rural Markets and Agricultural
Marketing
18 Chandra Shekara P 2001 Private Extension in India Myths Realities
Apprehensions and Approaches
19 Chandrashekara P 2001 Private Extension Indian Experiences
20 Common Principles for Watershed Development 1999
21 Crawford I M 1997 Agricultural and Food Marketing Management
(Marketing and Agribusiness Texts 2)
22 Dennis Chiwele Pumulo Muyatwa-Sipula and Henrietta Kalinda (Paperback -
Jan 1998) Private Sector Response to Agricultural Marketing Liberalisation in
Zambia A Case Study of Eastern Province Maize Markets (Research Report
Nordiska Afrikainstitutet)
23 Desai G R and Arora S K 1999 Trainers Training manual for Participatory
Management on Watershed
24 Desmond ORourke A 1994 The World Apple Market (Fpp Agricultural
Commodity Economics Distribution amp Marketing)
25 Dieter Elz 1987 Agricultural Marketing Strategy and Pricing Policy (World
Bank Symposium)
26 Dixit R S 2006 Agricultural Marketing in India
27 Erdener Kaynak 1986 World Food Marketing Systems
28 Erdener Kaynak and Matthew Meulenberg 1995 Food and Agribusiness
Marketing in Europe
29 Euan Fleming and Hugh Coulter 1992 Agricultural Export Marketing South
Pacific The Future Role of Marketing Authorities (Pacific Policy Papers)
30 Farris P 1983 Future Frontiers in Agricultural Marketing Research
31 Fertilizer and product Guide 1997
32 Foxall G R1982 Co-Operative Marketing in European Agriculture
33 Geoffrey S Shepherd and Gene A Futnell 1982 Marketing Farm Products
Economic Analysis
34 George Angell 1986 Agricultural Options Trading Puts and Calls in the New
Grain and Livestock Futures Market
35 Giriappa S 2000 Institutions and agricultural marketing in a semi-commercial
system
128
36 Gupta A P Marketing of Agricultural Produce in India Vora and Co
Publishers Pvt Limited Mumbai 1975
37 Hughes D R HM Martin and MVan Nieuwkerk 1993 A Comparative
Study of Agricultural Marketing in the Netherlands and the United Kingdom
(Food Industry Perspectives Discussion Paper)
38 Inderjit Singh Lyn Squire and James Kirchner 1985 Agricultural Pricing and
Marketing Policies in an African Context A Framework for Analysis (World
Bank Staff Working Paper) (No 743)
39 Indian Society of Agricultural Marketing Vistas in Agricultural Marketing
1997
40 Jagdish Prasad Encyclopedia of Agricultural Marketing Vol I to VIII 2000
Mittal Publications Delhi-110035
41 Narain Dharam Distribution of the Marketed Surplus of Agricultural Produce
by Size-Level of Holdings in India 1950-51 Asia Publishing House New
Delhi
42 Nayyar H and P Ramaswamy Globalization amp Agricultural Marketing
Rawat Publications Jaipur 1995
43 Neelamegham S Marketing Management and the Indian Economy Vikas
Publishing House Pvt Ltd New Delhi 1978
44 Padberg D I C Ritson and L M Albisu 1997 Agro-Food Marketing
45 Polopolus LC and Jesus Alvarez 1991 Marketing Sugar and other
Sweeteners (Developments in Agricultural Economics)
46 Prabhakar Rao Marketing Efficiency in Agricultural Production Himalaya
Publishing House Mumbai 1985
47 Procurement guidelines under National Agricultural Technology Project
MANAGE-NATP series 4 2000
48 Raghavendran T 2001 Disbursement Procedure for World Funded Projects
(A Guide to Project Implementing Agencies) by MANAGE-NATP series 5
49 Rajagopal Development of Agricultural Marketing in India Print well Jaipur
1996
50 Ralph M Chite 2007 HTML Agricultural issues in the 109th Congress An
article from Congressional Research Service (CRS) Reports and Issue Briefs
129
51 Ramesh Chand and V P S Arora (Ed) Agricultural Input and Output
Market Reforms in India Advance Publishing Concept New Delhi-11 0064
2000
52 Ramesh Chand Agricultural Development Price Policy and Marketed Surplus
in India (Study of Green Revolution Region) Concept Publishing Company
New Delhi-11 0059 1991
53 Rao NGP Perumal N Ghosal SL 1997 Training for Agriculture
Development
54 Sarveshwara Rao and G Parthasarthy Regulated Markets and Public Policy
Book links Corporation Hyderabad
55 Secondo Tarditi Kenneth J Thomson Pierpaolo Pierani and Elisabetta Croci-
Angelini 1989 Agricultural Trade Liberalization and the European
Community
56 Seetharaman S P Agricultural Input Marketing Oxford and IBH Publishing
Co New Delhi
57 Singh J P and Kareem M A 2001 Economic Evaluation of Participatory
Adaptive Research Project
58 Singh J P 2000 Economic Evaluation of Manchal Watershed
59 Singh J P 2000 Socio Economic Dynamics and Development Strategy for
Participatory Adaptive Research Project (PAR)
60 Singh J P 2002 Evaluation of Participatory Adaptive Research Project K
H Vedini 2001 Agriculture Marketing Interventions amp Innovations
61 Singh Rajkumar Agricultural Price Policy in India Print well Publishers
Jaipur
62 Singh J P Chandrasekhar P Kumar TDS and Lakshmi Murthy
2000 Israelrsquos Agriculture (Achievement through innovation and
Technology)
63 Singhal A K 2009 Agricultural Marketing in India by publisher Anmol
Publications pages 246
64 Singhal AK 1989 Agricultural marketing in India
65 Singhal A K Agricultural Marketing in India Anmol Publications New
Delhi 1989
66 Southworth Herman Some Studies on Fresh Fruits and Vegetable Marketing
in Asia Agricultural Development Council Bangkok Thailand 1974
130
67 Subba Rao K Agricultural Marketing and Credit ICSSR New Delhi 1985
68 Tyagi D S Managing Indias Food Economy-Problems and Alternatives
Sage Publications India Pvt Ltd New Delhi 1990
69 Vedini K H 2000 Management Issues in Rainfed Agriculture in India
70 Venkateswarulu J 1999 Technical Manual on Watershed Management
(Series (II) Resource(III)Arable Cropping Systems (IV) Non-Arable
Cropping Systems (V) Non-farming Systems amp Watershed in Retrospect
Conservation)
71 Vijay Gaatha 2002 Agripreneurs Documents 24 success stories of
agripreneurs with 40 different types of projects
72 Vijender Agricultural Marketing in India The Mandi System
JOURNALSMAGAZINES
1 Indian Journal of Agricultural Economics - Quarterly The Indian Society of
Agricultural Economics 46-48 Esplanade Mansions MG Road Fort
Mumbai-400001
2 Agricultural Situation in India - Monthly Directorate of Economics and
Statistics Ministry of Agriculture Government of India New Delhi
3 Indian Agriculture in Brief - Annual Directorate of Economics and Statistics
Ministry of Agriculture Government of India New Delhi
4 Yojana - Monthly Ministry of Information and Broadcasting Government of
India New Delhi
5 Economic Survey - Annual Ministry of Finance Government of India New
Delhi
131
APPENDIX-I QUESTIONNAIRE
QUESTIONNAIRE FOR FARMERS
1) Name of the Farmerhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Name of the village and district helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3) Age (in years)
a) Below [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
4) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P G and others [ ]
5) Sources of income
a) Agriculture [ ] b) Business [ ]
c) Employment [ ] d) Others [ ]
6) Annual gross income (In Rs)
a) Agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Non agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
7) Type of family
a) Nuclear family [ ] b) Joint family [ ]
c) Individual (single) [ ]
8) Number of family members
a) lt 4 [ ] b) 4 ndash 8 [ ]
c) 8 ndash 12 [ ] d) 12 and above [ ]
9) Total agricultural land holding (In Acres)
a) Below 5 Acres [ ] b) 5 ndash 10 Acres [ ]
c) 11 ndash 15 Acres [ ] d) Above 16 Acres [ ]
10) Crops grown in land with quantity per annum
Qty (in Quintals)
a) Red gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Green gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) Black gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) Jowar helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
e) Maize helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
f) Bajra helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
132
g) Bengal gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
h) Sugarcane helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
i) Others helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
11) Sale of agricultural produces
a) Open market [ ] b) APMC [ ]
c) Confirmation Agriculture [ ] d) Others [ ]
12) Preference of sale of agricultural produce
a) Local market [ ] b) Taluka market [ ]
c) District market [ ] d) Other state [ ]
13) How you carry agricultural produce to APMC
a) Bullock cart [ ] b) Tractor and trucks [ ]
c) Hired vehicle [ ] d) Own vehicle [ ]
14) Market charges of the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
15) Carrying cost paid in the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
16) Facilities provided by the APMC
Yes No
a) Water [ ] [ ]
b) Toilet [ ] [ ]
c) Canteen [ ] [ ]
d) Communication [ ] [ ]
e) Shopping property [ ] [ ]
f) Marketing information [ ] [ ]
g) Other facilities (if any) [ ] [ ]
17) Sources for dissemination of marketing information
a) News paper [ ]
b) Radio and Television [ ]
c) Dept of the government [ ]
d) Post and Telephone [ ]
e) Price bulletins [ ]
f) Personal contact [ ]
133
18) Rank the defects in regulated markets
a) No advance money [ ]
b) Difficulty of storage [ ]
c) Lack of transport facility [ ]
d) Lack of gradation facility [ ]
19) Rank the facilities to improve market efficiency
a) More number of commodities [ ]
b) Increases in facilities [ ]
c) More role of government [ ]
d) More representation from farmers [ ]
e) Reduction in market fees [ ]
20) Weather APMC provides adequate transport services
a) Yes [ ] b) No [ ]
21) Weather APMC provides adequate storage facilities
a) Yes [ ] b) No [ ]
22) Does APMC has cold storage facilities at warehouse
a) Yes [ ] b) No [ ]
23) What is the monthly storage cost of your produce at APMC
Rs helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
24) Whether APMC helps you for processing of your produce
a) Yes [ ] b) No [ ]
25) Do you satisfied with processing services provided by processors
a) Yes [ ] b) No [ ]
26) Processing fees paid to processors
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
27) Whether grading facilities are available at the APMC
a) Yes [ ] b) No [ ]
28) Do you satisfied with grading services provided by graders
a) Yes [ ] b) No [ ]
29) Are the graders trustworthy
a) Trustworthy [ ] b) Not trustworthy [ ]
30) Whether APMC provides efficient weighment of produce
a) Yes [ ] b) No [ ]
134
31) Do you satisfied with cost charged for weighment of produce
a) Yes [ ] b) No [ ]
32) Whether electronic weighing balancesmachine have been installed in
markets
a) Yes [ ] b) No [ ]
33) Causes of the defects in weighing
a) Absence of licensed weighman [ ]
b) Under weighing [ ]
c) Favouring for buyer [ ]
d) Faulty weights [ ]
e) Faculty weight machines [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
34) Grading of produce helps in the ways
a) Easy marketing [ ]
b) Reduction of cost [ ]
c) Higher prices [ ]
d) Encourage competition [ ]
e) Easy to get finance [ ]
35) Whether APMC provides market information on time to time
a) Yes [ ] b) No [ ]
36) If lsquoNorsquo what are the defects in market information
a) Ignore retail prices [ ]
b) Delay in news [ ]
c) Wide range of prices [ ]
d) Incomplete information [ ]
e) Illiteracy [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
37) Processing of produce helps to you in the ways
a) Add the value [ ]
b) Preservation for longer period [ ]
c) Less cost of production [ ]
d) Wide extent of the market [ ]
e) Use of surplus food [ ]
135
38) Do you insure your agricultural produce at APMC
a) Yes [ ] b) No [ ]
39) Whether you satisfied with the insurance facilities at the APMC
a) Yes [ ] b) No [ ]
40) Whether bank credit faculties available at the APMC
a) Yes [ ] b) No [ ]
41) Are you satisfied with present banking facilities
a) Yes [ ] b) No [ ]
42) What are the other sources of credit facilities other than bank credit
a) Whole sellers [ ] b) Retail seller [ ]
c) Commission agents [ ] d) Others (specify)helliphelliphelliphelliphellip
43) Ranking the factors determining the finance requirements
a) Nature of crop [ ] b) Terms of payment [ ]
c) Economic condition [ ] d) Fluctuations of prices [ ]
e) Volume of crop [ ]
44) Interest paid on bank credit
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
45) Are you obtaining services form the commission agents at APMC
a) Yes [ ] b) No [ ]
46) Are you satisfied with services provided by licensed commission agents
a) Yes [ ] b) No [ ]
47) If lsquoNorsquo what are the defects with commission agents
a) Favourable to buyer [ ]
b) High commission [ ]
c) Misguide [ ]
d) Lack of knowledge [ ]
e) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
48) Commission paid to commission agents
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
49) Do you have given any complaint against agent to the APMC about more
commission
a) Yes [ ] b) No [ ]
136
50) Whether sufficient number of Hamals are available at the APMC
a) Yes [ ] b) No [ ]
51) The cost of cooli to Hamals
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
52) Are you satisfied with hamals services
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
53) Do you have given any complaint against hamals to APMC for high cooli
a) Yes [ ] b) No [ ]
54) Cooperation of officials of the APMC
a) Fully cooperated [ ] b) Partly cooperated [ ]
c) Not cooperated [ ] d) Neither cooperatenor not [ ]
55) What are the defects you found with APMC officials
a) Non-cooperative [ ] b) Favourable to buyer [ ]
c) Laziness [ ] d) Expect money [ ]
e) Improper market data [ ] f) Others (Specify) helliphelliphellip
56) Do you have given ay complaint to higher officer against defaulting
APMC officer
a) Yes [ ] b) No [ ]
57) Do you have experienced following malpractices at the APMC
a) Inadequate grading [ ]
b) Inadequate packing [ ]
c) Unfavourable weighment [ ]
d) Excess samples [ ]
e) Inadequate supervision [ ]
f) Excess market charges [ ]
g) More favourable to buyer [ ]
h) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
58) Do you have any disputes with buyer
a) Yes [ ] b) No [ ]
59) What are the main causes for disputes in APMC
a) Price of produce [ ]
137
b) Quality of produce [ ]
c) Weighment [ ]
d) Timing of payment [ ]
e) Grading of produce [ ]
f) Warehousing [ ]
g) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
60) Which is the best way for settling of market disputes
a) Secretary level [ ] b) Dispute committee [ ]
c) Arbitration [ ] d) Court [ ]
61) Whether market committee officers supervises the services
a) Yes [ ] b) No [ ]
62) Do you find that APMC helped you in getting better prices for your
produce
a) Yes [ ] b) No [ ]
63) Your opinion about quality of service at APMC
a) Very good [ ] b) Good [ ]
c) Bad [ ] d) Very bad [ ]
e) Either good or bad [ ]
64) What is your opinion about customary deduction
a) As per bye laws [ ]
b) More than systems [ ]
65) Give your suggestions for making improvement in quality of services at the APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
138
APPENDIX-II QUESTIONNAIRE FOR RESPONDENTS
A) Personal Information
1) Name of respondents helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Age of respondents in years
a) Below ndash 20 [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
3) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P and G and others [ ]
4) Religion
a) Hindu [ ] b) Muslim [ ]
c) Christian [ ] d) Others (Specify) helliphelliphelliphelliphelliphellip
5) Nature of participant in APMC
a) Commission agents[ ] b) Hamals [ ]
c) Trader [ ] d) Grader [ ]
e) Processor [ ] f) Broker [ ]
g) Others (Specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6) How long you are in market yard
a) Below 10 years [ ] b) 11 ndash 20 [ ]
c) 21 to 30 [ ] d) 30 and above [ ]
7) Factors motivated for choosing this profession
a) Heredity [ ] b) More profitable [ ]
c) Uncertain induced [ ] d) Unemployment [ ]
e) Other specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
8) Are you satisfied with present marketing practices at APMC
a) Yes [ ] b) No [ ]
9) If lsquoNorsquo give the reasons for unsatisfaction
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
10) Are you satisfied with farmerrsquos activeness in APMC
a) Yes [ ] b) No [ ]
139
11) If lsquoNorsquo suggest to make them more active in market yard
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
12) Are you getting following facilities at the APMC yard
a) Water [ ]
b) Canteen [ ]
c) Communication [ ]
d) Marketing information [ ]
e) Transport [ ]
f) Health and sanitation [ ]
g) Banking and finance [ ]
h) Other (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13) Do you satisfied the above facilities at the APMC yard
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
14) Are you satisfied with quality of marketing of services at the APMC
Services Fully
satisfied
Partly
satisfied
Not
satisfied
No
response
a) Assembling
b) Processing
c) Grading
d) Storing
e) Weighment
f) Banking and finance
g) Rest house
h) Insurance
15) What suggestions do you want for efficient operations of APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
140
APPENDIX-III
PHOTOGRAPHS
ENTRY GATE OF APMC
ROAD FACILITY INSIDE APMC
141
WEIGHING GROUNDNUTS IN APMC
PROCESSING OF GROUNDNUTS
142
FILLED COTTON BAGS
WEIGHING TUR IN APMC
143
STORING GROUNDNUTS OUTSIDE
PROCESSING GRADING AND WEIGHING BAJRA
144
FILLING OF SUNFLOWER IN BAGS
LOADING OF COTTON BY LABOURS
- Table-317
- lsquotrsquo - Test Values
- Table-327
- Pearson Correlations
-
ii
iii
iv
ACKNOWLEDGEMENT
With great sense of gratitude I extend my special thanks to the UGC SWRO
Bangalore for funding me to undertake the Minor Research Project
I extend my sincere thanks to all the staff of Government First Grade College
Shorapur for their kind cooperation
I am very much grateful to DrSantosh Singh Associate Professor
Government First Grade College Sedam for his help and cooperation during the
course of my research
I would also like to thanks to Micro Computers Gulbarga for their excellent
job of compiling this Minor Research Project in time
SANGAPPA RAMPURE
v
CONTENTS
Sl No Chapter Page
No
1 INTRODUCTION AND RESEARCH DESIGN 01
2 FUNCTIONS AND TRADE PRACTICES ON APMCs 11
3 CUSTOMER PERCEPTION ABOUT MARKETING MANAGEMENT OF APMC IN GULBARGA DIVISION
42
4 PERFORMANCE EVALUATION OF APMCs 89
5 FINDINGS SUGGESTIONS AND CONCLUSION 122
6 BIBLIOGRAPHY 126
7 APPENDICES 131
1
CHAPTER-I INTRODUCTION AND RESEARCH DESIGN
11 INTRODUCTION
India is such a vast country which derives fifty percent of its national income
from agriculture The marketing methods in agricultural produce different from
country to country state to state and also within state This gives considerable scope
for the study of marketing of agricultural produce in the various states of the country
Agricultural marketing practices need to be uniform in the interest of developing
wider markets for better prices For this reason only many states have passed acts
regulating the marketing of agricultural produce in the state to reduce them to a
common practice and to avoid the exploitation of the primary producers and also to
give better prices for his produce
Organized marketing of agricultural commodities has been promoted in the
country through a network of regulated markets Most of the State governments and
Union Territories have enacted legislations (APMC Act) to provide for regulation of
agricultural produce markets While by the end of 1950 there were 286 regulated
markets in the country today the number stands at 7921 (3132014) Besides the
country has 29191 rural periodical markets about 15 per cent of which function
under the ambit of regulation The advent of regulated markets has helped in
mitigating the market handicaps of producerssellers at the wholesale assembling
level But the rural periodic markets in general and the tribal markets in particular
remained out of its developmental ambit
The central government has advised states and union territories to amend their
respective APMC laws in order to avail assistance for developing and strengthening
agricultural marketing infrastructure In the present scenario with the changing
picture in world trade system there has been growing demand for de-regulating the
agricultural markets and establishment of private markets some initiatives have
already been taken in this direction The central government has proposed
amendments in state Agricultural Produce Marketing (Regulation) Act The same is
expected to take place in the near future The said amendments have been proposed
2
with the aim of helping the farmers and hence market committees are obliged to
implement these amendments The Karnataka State Agricultural Marketing Board was
established on 1st September 1972 as per section 100 of the Karnataka Agricultural
Produce Marketing (Regulation) Act 1966 and Rules 1968 The Board acts as a
liaison agency between the market committees and the government of Karnataka for
all-round development of agricultural marketing in the state
12 NEED FOR THE STUDY
The marketing services available in the regulated markets have been very
useful in overcoming various problems of sellers of farm produce like the middle
menrsquos malpractices distress and forced sales at village level under weighing and
other malpractices by the middlemen and also the village money lenders etc
Majority of the agricultural produce is being sold at the village itself by
farmers immediately after harvesting due to urgent financial requirements and lack of
transport facilities Besides a large number of small holders of agricultural land
Hence the quantity of produce is too small for brining it to urban market place for the
purpose of selling at better prices
Establishment of regulated markets in various urban centers has facilitated
marketing of surplus agricultural produce at fair and reasonable prices In evaluating
the government marketing intervention programmes a distinction has to be made
between (a) the nature and degree of marketing intervention to achieve a defined
policy objectives and (b) the most cost effective way of implementing the marketing
intervention scheme However the centers of regulated markets are inadequate in
relation to the number of villages and vast farm sector Hence there is scope for
increasing of number of APMCs and submarket yards in addition to improving the
functioning of existing APMCs to ensure better services and adequate infrastructural
facilities at the premises of these markets A majority of these regulated markets
suffers from certain deficiencies in their functioning
In view of this the present study is undertaken to analyze the extent to which
the inadequacy of marketing of services are encountered by the farmers and other
functionaries in the APMC at Gulbarga division as a whole The research confines
3
itself to the management of APMCs in Karnataka in general and Gulbarga Bidar
Raichur Koppal and Bellary district APMCs in particular The total APMCs consist
for the present study is five APMCs from each district of study area
13 REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related
areas of the subject to find out and to fill up the research gaps Literature on
agricultural marketing can generally be found in a number of books that are available
on agricultural economics rural marketing and regulated markets Only very few
studies were undertaken on APMC and its performance in both agricultural marketing
and development The important studies relating to the present investigation are
referred below
Gopal Rao (1974) has undertaken the study on APMCs and has analyzed their
working in detail The author has confined his study to the four districts of Bombay
Karnataka region through a survey of the markets in the region
Ravirsquos (1975) work analyses the marketing problems of coconut and copra in
Tipatur and Arasikere regulated markets of Karnataka In this area coconut marketing
is dominated by village sales (66) followed by sales through commission agents
(16) and through wholesalers (about 11) and the rest directly by the farmers
(about 7)
Bhogappa (1982) has undertaken the study on ldquoMarketing of agricultural
produce in Gulbarga division of Karnatakardquo which covers only the APMCs of
Gulbarga Revenue Division He has made a special study of the effects of draught and
draught prone areas He has analyzed the special problems of the markets in ldquoAyacutrdquo
areas
Ramaswamy (1984) has submitted the thesis on ldquoA Critical Study of the
Working of Regulated Markets in Tamil Nadu with special reference to Coimbatore
and Periyar districtsrdquo This was the first attempt to assess the applicability of the Act
in Tamil Nadu which has thrown a light on cropping pattern
4
Rayudu (1985) highlighted the five aspects of cardamom marketing designed
by Cardomon Board The Board collects data on global requirements position of
supply conducting market survey for planning implementing and evaluation The
findings in this study could be useful in suitable applications for the finer aspects in
the marketing of similar products
Biradar (1989) observed that there was no incentive scheme for farmers It is
therefore necessary to start the incentive programmes like providing higher prices for
their commodities agricultural inputs at concessional rates and charging lower market
make regulated markets more attractive to the farmers These suggestions have a good
deal of subsidy components on the part of the Government
Selvamurugan and Mohan Sundaram (1990) in their study on the Coimbatore
district concluded that the crossandra in Coimbatore district concluded that the
corrssandra farmers share had been reduced from 3256 percent to 2423 percent
during the lean season Though the street vendors margin had also been reduced from
2328 to 1460 percent the share of commission agents and wholesalers had increased
to large extent ie from 4416 to 6107 per cent
Reddy (1991) conducted a study on marketing channels and marketing
margins of maize in Andhra Pradesh The study revealed that the producers share was
significantly high (8664 to 8687) in the case of Producer to Retailer to Consumer
channel as compared to corresponding share of producer (6314 to 7067) in case of
second channel ie Producer to Wholesaler to Retailer to Consumer
Nagraj and Chandrakant (1992) conducted a study on market performance of
perishables In the study the major marketing channel for vegetables was as below
Producer to Commission agent to Retailer to Consumer
The study could be of much relevance for researches in similar areas of agricultural
marketing
Biswas and Karpate (1994) observed the importance of Maharashtra State
Tribal Development Corporation (MSTDC) in marketing of minor forest produce
The tribal of the area were assured of basic minimum price for their produce notified
5
by the collector of the district The payments in normal course were made
immediately and saved them from exploitation by the middlemen
Mundinamani and Naik (1994) concluded that the per marketing cost of potato
was Rs 2074 as compared to Rs 2261 for brinjal Rs 2325 for onion Rs 2147 for
tomato Rs 5692 for dry chilly Rs 2975 for cotton and Rs 1936 for groundnut
The factors for differences in marketing cost of such agricultural produce need to be
probed by further studies
Atibudhi and Prusty (1995) have studied the marketing margins of Niger in
Rayagada district of Orissa The study concluded that the presence of co-operative
societies in marketing channel reduces the marketing margins and increases the
producers share in consumers rupee Marketing costs were the lowest in the co-
operative channel But marketing costs for storage procurement and transport were
higher for the same
Pawar (1996) has conducted a study on marketing surplus and price spread of
groundnut in Marathwada region of Maharashtra which is the most important
groundnut growing zone where 49 percent of the land is used to grow groundnut The
study concluded that distress sale of ground nut was found in small farmers but
medium and large farmers kept their surplus for future sale to get maximum price
Krishnaih (1998) has conducted a study to identify the marketing channels of
cotton and to analyze the price spread in these channels where he has suggested 7
different channels on distribution of cotton His effort is quite appreciable and it offers
for further research work on the topic However he found that while marketing of
cotton (kapas) majority of the farmers chose the channel in which the role of
commission agent was prominent
Paty (2000) applied the techniques of marketing information system the
agricultural marketing He has explained the concept with flow diagram of the
Integrated Agricultural Marketing Information System which is quite useful for its
practical applications
6
Basavaraj et al (2001) have made it very clear in their article that Karnataka
ranks fifth among the oil seed producing states in the country with an area of
1200135 hectares and a production of 945501 tones during 1994-95 Groundnut
sunflower safflower sesamum and castor were the major oil seeds produced in the
state They have made good policy implications in their study
Jayarathnam (2002) in her study on farmers market (Uzhavar Sandhai) in
Tamil Nadu pointed out the problems in cultivation transportation marketing and
pricing of vegetables Even she has given strengths weaknesses opportunities and
threats of vegetable marketing in Uzhavar Sandais of Tamil Nadu
Von Oppen and Gabadambi (2002) in their research paper have observed
market access impact on agricultural productivity lessons from thirteen chapters in
which they have concluded by stating market access and infrastructure are powerful
tools to commercialize agriculture in developing countries They increase aggregate
productivity initially via specialization and at a later stage via intensification
Sherman Roger (2007) undertook a study on market regulation gives readers
the economic intuition to analyze the history of antitrust and regulation diagnose
current corporate strategy and evaluate possible policy recommendations Roger
Sherman grounds modern examples in historical context and develops thought
provoking discussions to motivate readers from many different backgrounds
Introduction to market regulation competition as a market regulator problems for
competition as regulator
14 STATEMENT OF THE PROBLEM
The farming is largely dependent on the efficient marketing of the products
So the governments have to be very particular and watch all the market operations to
remain self-sufficient in food and to produce the goods for export to other countries
In the process of planning though the agriculture was given high priority for its
development but much attention was not given for the improvement of marketing
But in various states the agricultural marketing boards were established with the
objective to remove all the problems of markets and to regulate the markets for
increasing the efficiency in marketing It is found from various previous studies that
7
the regulated markets donrsquot have adequate and scientific grading facilities resulting in
substantial loss to the farmers excess charging of deductions in the form of
weighment commission etc are still prevailing at present in the regulated markets by
the commission agents or traders while making the payments to the farmers Hence
there is a need to undertake a study of the working of regulated markets in relation to
the responses of producer seller and other market functionaries regarding various
aspects of management of regulated markets The present research work attempted to
examine how the organized markets are working and to assess their role in
facilitating an orderly marketing of agricultural produce in the selected APMCs in
Gulbarga division
On the top of it the Gulbarga division is highly backward with all the
indicators of the backwardness which leaves considerable scope for exploitation by
the money lenders-cum-merchants These contrasts in the division call for different
approaches to marketing management and hence the study reveals interesting results
valuable for policy decisions This study of the division of Gulbarga is of immense
benefit for the economic strategy in the marketing of agricultural produce The study
is also aimed at pointing out various malpractices prevailing in the marketing
management lack of infrastructure storage facilities credit availability and effective
central markets this has resulted lack of innovations in agricultural production and
operations Many studies have been carried out to assess the impact of various
malpractices prevailing in marketing management on production of agricultural
produce However no study has been made to assess the role played by the APMCs in
the agricultural marketing in Gulbarga division highlighting whether these have
succeeded in achieving its objective if not what were the causes and what corrective
measures would have helped it in over coming the problems The present study is a
contribution in this direction
15 OBJECTIVES OF THE STUDY
The following are the objectives set for the study
1) To study the role of APMCs in filling the gaps and deficiencies regarding
agricultural marketing in Karnataka
2) To understand the amenities and facilities at the APMCs and to find out
inadequacies prevalent in APMCs in Gulbarga division
8
3) To know the trade practices in the area under consideration and the extent of
benefits to sellers through organized markets
4) To analyze the farmers responses towards regulated markets as well as market
participants
5) To critically examine the over all performance of APMCs and to identify the
area of improvement in the efficiency and also to offer suggestions to develop
an effective marketing system in Gulbarga division
16 RESEARCH METHODOLOGY
The study is mainly based on both primary data and secondary data The study
covers one broad division of the Karnataka state a survey method is adopted ie
through the pre-tested interview schedules addressed to the sample size of farmers and
market functionaries An unscheduled interview is also conducted to the regional
officials of KSAMB project officer and agricultural departments as well as APMCs
officials
Separate schedules were drawn tested and addressed to market committees
agricultural producers and market functionaries The questionnaires administered to
farmers were 250 in total at the rate of approximately 20 from each district market
All the farmers were representative producers for each market categorized on the
basis of the land holding and also marketable surplus brought to the market for sale
The questionnaire administered to the market participants were 150 in total
covering 20 market functionaries from each district in total sample size market
functionaries includes traders (wholesaler and retailer) commission agents exporters
importers processors and hamalies etc
17 SAMPLE DESIGN
A stratified random sampling method was adopted to drawn the final sample
The Gulbarga division consist of Bidar Gulbarga Raichur Koppal and Bellary
district from each district approximately 50 farmers were selected along with this 30
market functionaries from each district were selected
9
18 DATA ANALYSIS
The data collected from both primary and secondary was processed and
reduced to simple tables in order to present the matter clearly The suitable financial
statement analysis techniques were used to draw the correct conclusion Ratio
analysis which is most powerful and universally used technique for the analysis of
financial performance of APMCs in Gulbarga division
Analysis of variance technique is employed to test whether there is any
statistical significance in sales in different markets Apart from this averages and
percentages are used Graphs maps chart and diagrammatic representation of data
was suitably employed to highlight the significance of the data
19 PERIOD OF THE STUDY
The present study covers the period of five years commencing from 2009-10
to 2013-14 The performance of various items such as sales amenities infrastructure
and facilities of APMCs in Gulbarga division was studies for five years
Due to the wide operational activities of APMCs for agricultural marketing the
study period limited to five years to analyze its role in Karnataka with reference to
Gulbarga division
110 LIMITATIONS OF THE STUDY
The study is not completely free from limitations
1) The study is restricted only Gulbarga Division
2) Only five years period is taken for the purpose of the study because of time
constraints
3) The study is depending on the primary data also some of the respondents give
the poor response however every care has been taken to ensure that
authenticity of the data gathered
4) Some of the markets and the sub markets are so small and irresponsible that no
data is available nor any records of arrivals and disposals The records
maintained at the submarkets in the division are probably not available and
non reliable
10
111 CHAPTERISATION OF THE RESEARCH WORK
The whole research study has been presented in seven chapters
The First chapter deals with the introduction need of the study review of
some of important previous literatures statement of the problem
objectives of the study research methodology employed period of the
study limitations of the study techniques used for data analysis as well as
the chaptarisation of the study
The Second chapter deals with the various functions of the APMCs their
activities And also contains in brief about the trade practices preventing at
present in Gulbarga division as well as the data collected from the market
participants through questionnaire were analyzed to know the level of
satisfaction towards the preventing trade practices in selected APMCs in
Gulbarga division
Chapter Third deals with the opinion collected from the farmers towards
the marketing of their produce as well as their attitude towards regulated
market
Chapter Fourth deals with the financial performance and position during
five years of study period
The Fifth chapter deals with the findings suggestion and conclusions
11
CHAPTER-II FUNCTIONS AND TRADE PRACTICES ON APMCs
INTRODUCTION
The functionaries have their own set up They may be individuals partners or
cooperatives who may buy and sell on ready and future basis at a price determined by
forces of supply and demand Each functionary renders some services in the process
of marketing and also earns a varying margin of profit for himself This procedure
makes marketing rather complicated and inflates the price of the produce The nature
of some of the agricultural products eg their bulk form and perishability and their
seasonal availability further add to the complexity of agricultural marketing
Farmers and the various functionaries working in market face numerous
problems in orange fruit trading Farmers either sell their produce to the pre-harvest
contractor before harvest or they sell it in the nearby Agricultural Produce Market
Committee
When the farmers sell their produce in the Agricultural Produce Market
Committee they face following problems
High commission charges
High transportation and loading and unloading charges
No guarantee of remunerative prices
Delayed payment by commission agents
Functionaries working in the market also face various problems The pre-
harvest contractors who purchase the fruits from the farmers face the problems while
dealing with the farmers These problems arise mainly due to
Lapses on the part of farmers in the management of garden resulting in
deterioration of quality of fruits
Problems of natural calamities (theft of fruits losses due to rains pest etc)
Problems of storage facilities (lack of cold storage at local place)
Packing problem (costly packing material and non-availability of skilled
labour)
12
Transport problems (high transportation cost and non-availability of transport
means in time)
Grading problems (non-availability of suitable mechanical graders)
The success or failure of any market depends upon the functionaries existing
in the market Hence the role of functionaries is very important in smooth conduct of
market functions
It is compulsory according to KAPM (R) Act 1966 for every functionary
functioning in the APMCs to take a valid license from the respective APMC where it
is established by paying the necessary fees to the APMCs
Description of Market Functionaries
Following is the list of important functionaries existing in different APMCs of
the study area
i) Commission agents ii) Traders
iii) Retail traders iv) Weighmen
v) Hamals vi) Lady hamals
vii) Transporters viii) Cartmen
ix) Brokers x) Exporters
xi) Importers xii) Processors
xiii) Ginners xiv) Pressors
xv) Crushers xvi) Stockiest
xvii) Warehousemen
It is very essential to understand each of these functionaries and their activities
in detail
i) Commission Agents
Commission agent means a person who in the ordinary course of business
makes or offers to make a purchase or sale of agricultural produce on behalf of the
owner or seller or purchaser of such agricultural produce for commission
13
Commission agents are called so because of the commission they take from
the traders on the total sales as fixed by the government They facilitate farmers to
sell the agricultural produce brought into market yard for a good price at an
appropriate time However as per the bye-laws of market committees some person
cannot act both as commission agent and trader
Commission agents are the connecting link between the farmers and the
buyers When the crop grown by the farmer enters the market it goes to the
systematically channalised commission agents
The agents help the market committee to classify the goods brought by the
farmers and getting them weighed by the specified weighmenThese agents sell the
goods in the market on behalf of farmers and if a farmer does not want to sell his
goods for the time being at the prevailing market price the agents stores the goods in
their godowns and takes the responsibility of preserving the goods These agents not
only help the buyers to get a variety of goods at a place but also help the farmers to
sell their goods effortlessly In the form of market fee the buyer has to pay 1 percent
of the sale price of goods which is collected by the agents and credited to the market
committee Agents also have the responsibility of crediting the total amount of the
sales to the farmers The agents enjoy the right to extract the full amount of the
produce from the buyers
ii) Traders
Trader means the person who buys notified agricultural produce either for
himself or as agent of one or more persons for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of domestic
consumption
The trader will fix a reasonable price for the farmers produce in consolation
with the commission agents and with the consent of the farmers they purchase the
produce and the full amount will be paid to the commission agents Sometimes the
traders buy the produce for their own business purposes or on behalf of big companies
or businessmen Under these circumstances the goods will be sent to the respective
people
14
iii) Retail Traders
Retail trader mean the person who holds in stock at a time not exceeding
fifteen quintals of two or more kinds of agricultural produce together or not
exceeding six quintals of a single agricultural produce
The major function of a retail trader is to undertake retail salesRetail sale
means the sale of notified agricultural produce to a consumer for domestic
consumption not exceeding such quantity as the market committee may by bye laws
or standing orders determine
Usually they buy agricultural produce from the market yard and sell it in retail
market established in cities They assist the small buyers in procuring the agricultural
produce in small quantities for the purpose of domestic use
iv) Weighmen
As their name itself suggests the weighmen supervise the weighment of the
agricultural produce entering into the APMC yard
Certain produce such as cotton get weighted as soon as they enter the market
yard while the rest of the produce are weighted after sales Under these
circumstances it becomes the duty of the weighmen to safeguard the interest of the
farmers and to see that there is no discrepancy in weighing their goods Day to day
report of the produce weighed along with their weighment slip has to be filed with the
market committee by the weighmen It is the duty of these weighmen to visit the
various shops in the market yard and to supervise the weighing of different goods
v) Hamals
In order to facilitate the smooth functioning of the various activities of the
marketing committee hamals perform a very special duty As these people perform a
strenuous physical work they are called hamals
The work of the hamals start with the produce entering into the market yard
and ends with the produce going out of the yard When the farmer brings his produce
15
into the market yard either by a cart tractor or by lorry the hamals unload the
produce at the commission agents shops If the produce is cotton the hamals get it
weighted immediately after unloading and if the produce are other than cotton they
are stored in the godowns of the commission agents On the day of the tender or
auction the samples of the various produce are kept aside by the hamals who help the
traders to fix a reasonable price for the produce After the completion of business
deals except cotton all other produce are weighed and loaded into the vehicles of the
traders To perform these various tasks the hamals charge the amount fixed by the
APMC and get it from the concerned parties
vi) Lady Hamals
The female hamals who are working in APMCs by procuring a valid license
are known as lady hamals Along with the male hamals lady hamals are also found
in some of the APMCs like Hubli Gadag and Ranebennur They perform activities
like screening cleaning assisting males hamals in weighment keeping samples for
tender etc
vii) Transporters
In the preview of market committee the people who help to transport the
goods from one place to another are called transporters The tractors and truckers are
performing the duties of transporters Transporters are considered to be the important
market functionaries working in APMC yard These peoples are helping the farmers
to bring the agricultural produce from the place of production or agricultural yard to
market yard Existence of large number of transporters in the market yard helps for
the smooth functioning of marketing activities
viii) Cartmen
Along with the modern transportation facilities such as trucks and autos still
cartmens are playing greater role for the smooth functioning of market activities
Loading and unloading of bags from trucks to godown and vice-versa are performing
by cartmens When the agricultural produce need to transfer from one place to another
place within the market yard is done by cartmen
16
ix) Brokers
Brokers are the agents middle menrsquos in the market working as link between
farmers and buyers In many ways brokers are assisting the farmers by giving
valuable advises with regard to financing of selling to get better prices At the same
time they also help by supplying bulk agriculture produce to buyer
x) Exporters
Exporter means the person other than a producer who exports goods or cause
goods to be exported on onesrsquo own account or as agent of another person from the
market area outside such area for the purpose of selling processing manufacturing or
for any other purpose except for the purpose of onersquos own domestic consumption
The meaning of exporter shall not include a public carrier
At times when there is a bumper crop the poor farmer has to incur heavy
losses During such moments of crisis the exporters come into the scene and purchase
the crops from the farmers and export the same to some other markets for sale or
processing This brings about a balance between the demand and supply and saves the
farmers from the crisis
xi) Importers
Importer means the person other than a producer who imports goods or causes
goods to be imported one onersquos own account or as agent of another person from the
outside market area with in the such area for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of onersquos own domestic
consumption The definition of importer shall not include a public carrier
Function of Importers
As and when there is scarcity of any goods in the market and there is a lot of
demand for the same and considering the overall demand and supply of the market
the importers import the goods from different markets and sell them in the local
market
17
xii) Processors
The goods purchased at the market yard have to undergo different stages and
processes to finally reach the customer In order to facilitate this work different people
perform their duties These people are called processors viz gins press
decorticators oil mills flour mills and dal mills etc these different industries perform
their own essential duties
These industrialists perform their duties to see that the goods available in the
market in their crude form are made ready for use After having purchased the goods
they make them ready for use with the help of these processors On certain occasions
the processors themselves purchase the goods process them and self them when they
are ready for use These processors also should have the license from the market
committee
xiii) Ginners
They are the licensed functionaries who are performing ginning activities of
cotton by procuring valid license from APMCs The purchasers of cotton want to
convert their unginned cotton into ginned cotton In such case ginners will help them
to gin their cotton and separate pure cotton from cotton seeds
xiv) Pressors
Once the cotton is ginned it will come to pressors for conversion into cotton
bales where licensed pressors undertake the work of pressing In order to transport
the cotton from the place of growing and marketing to textile mills at different places
they have to be systematically packed in compact form of cotton bails The ginned
cotton will come to press of the pressors where they press and pack it properly into
cotton bales
xv) Crushers
There are certain licensed crushers who perform the activity of crushing oils
seeds into oil The traders who buy oil seeds from the market wants to convert it into
oil for further marketing and transportation In such case crushers situated near the
various market yards will help them to get pure oil by getting their seeds crushed and
screened at their crushing units
18
xvi) Stockiest
The people who purchase the produce at the market yard and store it for some
time and then sell it are called stockiest The stockiest also should have license
When all the farmers bring their produce to the market yard there will be glut in the
market supply and deficiency of the purchasers which cause the prices to come down
Under these circumstances to protect the farmer from the loss the stockiest purchases
the goods at the market yard and stock it in their storehouse to sell them when there is
a demand for that commodity
xvii) Warehousemen
The farmers are provided with the warehouses to store the produce which
come under the jurisdiction of the market committee ldquoWarehouserdquo means any
building structure or other protected enclosure which is or may be used for the
purpose of storing agricultural produce being goods on behalf of the depositors but
does not include cloak rooms attached to hotels railway stations the premises of
other public carriers and the life The person who supervises the warehouse activities
is called warehouseman
A farmer may not want to sell his produce because of the fall in the prices or
may want to store the goods for the purpose of sowing but does not have enough
space to store Having realized this problem of the farmers the government has
provided the warehouses in all the important market yards so that the farmers can
store their goods as long as they want to
The main task of the warehousemen is to stock the goods of the farmers
properly by sprinkling pesticides and protecting them from the insects and pests and
to return the goods of the farmers to them when they ask for it While performing this
task the warehousemen charges certain amount which is specified by the
government The farmer has to pay the amount towards stocking of his goods
In this way for the smooth sailing of the market committees activities each
and every market functionary has to perform his duties systemically
19
Market Functionaries in Selected Market An Overview
In all the selected APMC for the present research work ie 15 APMC there
were 26194 market functionaries operating in various markets of this division The
district wise and sample wise break up of the same is revealed in the tables from 21
to 25
As on the 2007-98 the total of local market participant in three APMC taken
for the present research is Gulbarga-5099 Bidar-2790 Koppal-5234 Raichur-7182
and Bellary-5889 There are 2046 lsquoArsquo class traders 1786 lsquoBrsquo class traders 1410 lsquoCrsquo
class traders 6920 lsquoDrsquo class traders 2794 commission agents 1496 exporters 1526
importers 676 stockiest 358 processors 172 crushers 203 ginners 28 pressers 29
warehousemen and 10775 hamals operating in the various markets in the Gulbarga
division The highest number of traders commission agents and other functionaries
are in Raichur district Bellary district followed by Gulbarga district being nearly 13
of the total number in the division
Market Functionaries at Selected APMC in Gulbarga District
Gulbarga APMC is a very big APMC in the Gulbarga district as compared
with other APMC in the same district Table 41 explains the total market
functionaries working in the not only Gulbarga APMC but also APMC Shorapur and
APMC Shahapur It is far as size is considered APMC Shahapur is a small APMC in
the Gulbarga district
The below Table 21 reveals that the total number of market functionaries
which was 3536 in 2009-10 in Gulbarga APMC has increased by around 124 percent
in 2013-14 It is evident from the same that coolies traders exporters importers and
processors holding maximum share in total market functionaries in the total
participants in the market
In case of the APMC Shorapur the total position of market participant was
gradually increased during first three years ie from 576 in 2009-10 to 845 in 2010-
11 and 910 in 2011-12 but it decreased to 845 in 2012-13 Again coolies and traders
were become the major portion in total market participants followed by commission
agents and retailers
20
Table-21
Licensed Market Participants in Selected APMCs of Gulbarga District
Sl No Market Participant
APMC Gulbarga APMC Shorapur APMC Shahapur
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 407 419 418 405 426 60 203 254 178 180 37 60 51 46 128
2 Commission agents 227 235 234 213 218 45 58 64 58 69 17 17 17 17 22
3 Exporters 419 424 424 411 416 10 32 11 03 03 28 35 32 25 130
4 Importers 405 411 409 391 396 08 24 09 02 02 25 30 38 25 126
5 Retailers 105 108 108 94 106 25 76 26 02 02 20 32 30 23 51
6 Processors 350 358 356 341 348 01 02 02 01 01 01 01 01 01 10
7 Ginners 14 15 15 15 16 01 02 01 01 01 01 01 01 01 05
8 Pressers 04 04 04 04 04 03 04 02 01 01 02 02 02 02 05
9 Stockiest 28 30 30 25 28 14 42 16 01 01 10 15 12 10 15
10 Weighmen 75 78 77 75 75 13 14 14 14 14 02 02 02 02 05
11 Crushers 15 18 18 18 18 03 05 04 01 01 02 02 02 02 06
12 Warehousemen 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01
13 Coolies 1444 1545 1540 1476 1485 378 373 496 571 560 75 92 99 99 110
14 Transporters 42 54 52 41 43 08 09 10 11 11 28 33 33 18 58
Total 3536 3700 3686 3510 3580 576 845 910 845 847 249 323 321 272 672 Source Annual reports of APMC for 2009-10 to 2013-14
21
The situation in APMC Shahapur was not much different when it compared to
APMC Gulbarga and APMC Shorapur A steady growth in total market participants
was registered in 2013-14 ie 672 with annual aggregate growth of 3398 percent
during the period under research Traders commission agents and coolies were
acquired majority position in total market functionaries
The below Table 22 depicts the total licensed market participants operating in
the selected APMCs of Bidar district A keen observation of year wise growth in the
various categories of market participants shows that coolies are steadily increased in
APMC Bidar from 68 in 2009-10 to 140 in 2013-14 In APMC Bhalki it was from 49
in 2009-10 to 56 and in APMC Aurad from 19 to 34 during the same period
It is interesting to note in Bidar APMC that stockiest were the dominant
portion in total market functionaries followed by experts commission agents and
importers The same situation was also found in other five APMCs ie Bhalki and
Aurad which are taken as sample from the Bidar district The percentage of stockiest
as on 2013-14 in total market participant was in Bidar APMC 1694 Bhalki APMC
ndash 1850 and 1859 in APMC Aurad
22
Table-22
Licensed Market Participants in Selected APMCs of Bidar District
Sl No
Market Participant
APMC Bidar APMC Bhalki APMC Aurad
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 171 182 195 186 196 151 153 146 156 160 110 115 128 138 142
2 Commission agents
145 151 180 175 190 136 139 145 150 156 102 112 115 128 132
3 Exporters 150 162 175 12 172 139 141 148 151 155 89 95 98 108 112
4 Importers 141 145 161 152 162 120 122 126 120 122 85 92 95 98 104
5 Retailers 10 15 28 25 35 05 06 09 10 10 03 04 06 08 08
6 Processors 03 04 04 03 04 02 02 02 02 02 01 01 01 01 01
7 Ginners 02 02 02 02 02 01 01 01 01 01 01 01 01 01 01
8 Pressers 01 01 01 01 01 01 01 01 02 01 01 01 01 01 01
9 Stockiest 193 198 220 205 215 150 151 154 155 161 106 112 115 119 123
10 Weighmen 33 42 55 52 65 23 24 26 28 30 13 15 21 28 30
11 Crushers 02 02 03 02 03 01 01 01 01 01 01 01 01 01 01
12 Warehousemen 01 01 01 01 02 01 01 01 01 01 01 01 01 01 01
13 Coolies 68 70 110 110 140 49 50 52 57 56 19 24 30 35 37
14 Transporters 10 05 15 24 23 08 08 09 13 13 04 06 08 12 17
Total 930 980 1150 1100 1210 787 800 821 846 870 536 580 621 687 710 Source Annual reports of APMC for 2009-10 to 2013-14
23
The overall growth in the market participants in Bidar district from the same
table reveals that the annual aggregate growth in APMC Bidar was highest ie 602
percent over the previous year it was 210 percent in APMC Bhalki and 649 percent
in APMC Aurad This clearly indicates that APMC Aurad is fast growing APMC in
terms of market functionaries followed by APMC Bidar and APMC Bhalki
A cursory look at the below Table 43 reveals that coolies traders
commission agents and importers are the major category of market functionaries
operating in the selected APMCs in the Koppal district during five years study period
ie 2009-10 to 2013-14 are presented in Table 23 The total number of market
functionaries in APMC Koppal which was 1054 in 2009-10 increased to 1186 in
2013-14 with percentage growth of 1188 during period under study In case of
APMC Gangavati it was 1034 percent negative and in APMC Kustagi positive
growth of 1752 percent during the same period The number of traders increased
marginally during the study period but the number of commission agents was
marginally decreased in all the three APMC selected from the Koppal district as
sample the other market functionaries increased in large numbers thus making the
proportion at commission agents to drop A broad view of licensed market
functionaries in selected APMC in Koppal depicts that APMC Gangavati was leading
APMC in terms of total market participants followed by APMC Koppal and APMC
Kustagi during five years plan period
24
Table-23
Licensed Market Participants in Selected APMCs of Koppal District
Sl No Market Participant
APMC Koppal APMC Gangavati APMC Kustagi
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 115 108 127 116 144 518 480 456 479 497 106 95 103 63 88
2 Commission agents 102 107 90 98 107 468 417 360 380 387 141 139 142 124 153
3 Exporters 95 123 92 115 105 511 480 455 489 495 90 77 80 46 65
4 Importers 123 146 120 122 103 598 479 455 488 496 17 12 13 08 64
5 Retailers 15 22 14 15 14 124 98 72 90 87 11 11 14 11 -
6 Processors 04 05 04 05 06 95 91 87 90 97 02 02 02 02 02
7 Ginners 02 02 02 02 02 - 02 - - - - - - - -
8 Pressers 02 02 02 02 02 - - - - - - - - - -
9 Stockiest 60 179 58 70 65 518 480 453 488 495 52 52 63 - -
10 Weighmen 10 15 09 08 10 03 03 04 04 03 06 06 06 06 06
11 Crushers 05 11 05 06 08 04 01 02 02 02 03 03 02 02 -
12 Warehousemen 02 04 02 03 04 02 02 02 02 02 01 01 01 01 01
13 Coolies 452 502 450 544 535 553 370 324 393 417 372 363 345 273 468
14 Transporters 067 118 59 33 36 26 13 16 15 14 04 05 03 02 02
15 Temporary purchasers - - - - - - - - - - 45 41 - - 150
Total 1054 1344 1034 1139 1186 3423 3001 2784 2995 3069 850 807 774 538 999 Source Annual reports of APMC for 2009-10 to 2013-14
25
Table 24 shows the year wise actual market participants who were licensed to
operate in the market yard during 2009-10 to 2013-14 in the selected APMC for the
sample in the Raichur district The total market functionaries in the APMC Raichur
decreased during the second year ie 2010-11 from 3622 to 3407 The average
decrease during the research period was 228 percent This was due to decrease in the
traders as well as coolies
When we observed market functionaries cooperation in the APMC Sindnoor
if was little different situation when it compared to APMC Raichur The total market
participants were shown an increasing trend except in the year 2010-11 it was
decreased from 2193 in 2009-10 to 1852 The overall growth in the market
functionaries during five years research period was 2782 percent which was a good
sign compared to APMC Raichur This growth indicates the growth of agriculture
marketing in APMC Sindnoor yard From the same table it can also be seen that
during 2010-11 and 2011-12 the total licensed market participants in APMC
Lingasugur were decreased but again during last two years of study period it shown
upward trend From these above analysis it can be said that APMC Sindnoor and
APMC Lingasugur were performed better during the plan period as compared to
APMC Raichur
26
Table-24
Licensed Market Participants in Selected APMCs of Raichur District
Sl No Market Participant
APMC Raichur APMC Sindnoor APMC Lingasuguar
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 409 422 431 403 415 312 260 304 305 304 104 99 88 106 115
2 Commission agents 216 214 222 224 218 317 265 280 288 279 83 92 81 101 100
3 Exporters 382 381 401 416 401 288 256 301 308 307 97 77 71 103 105
4 Importers 377 392 420 400 410 288 256 273 276 269 77 79 71 103 110
5 Retailers 22 23 206 - - NA NA NA NA NA 20 18 18 16 16
6 Processors 57 55 63 65 401 14 17 20 19 17 05 06 06 04 04
7 Ginners 10 16 16 15 16 01 01 01 01 - - - - - -
8 Pressers 05 05 04 03 04 01 01 01 01 01 05 04 04 04 04
9 Stockiest 388 377 398 409 19 289 257 300 308 293 75 94 81 106 110
10 Weighmen 89 89 87 87 87 16 16 16 15 14 14 14 14 14 14
11 Crushers 18 26 24 20 19 02 02 01 01 - - - - - -
12 Warehousemen 02 02 02 02 02 07 05 06 07 06 01 01 01 01 01
13 Coolies 1591 1357 1354 1434 1478 634 516 856 1286 1313 40 02 08 Nil 79
14 Transporters 46 48 44 42 50 24 - - - - 10 08 08 04 Nil
Total 3622 3407 3672 3520 3520 2193 1852 2359 2815 2803 531 494 451 562 859 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
27
Table 25 indicates the trends in the growth of total licensed market
functionaries who were operating during the period under consideration in the
selected APMCs in the Bellary district A comparative study of three APMCs selected
in Bellary district shown in the table 25 indicates that APMC Bellary has the largest
market functionary followed by APMC Hospet and APMC Siraguppa The total
market participants in APMC Bellary was ranged in between 3235 to 3865 in APMC
Hospet it was between 738 to 1481 and in APMC Siraguppa between 659 to 1007
The study of individual market participants in total market participants in selected
APMCs in Bellary district was also clearly shown that coolies were occupied the
major percentage in total followed by exporters importers and traders during the plan
period From the above analysis it was clear to conclude that district APMC ie
Bellary APMC was fully developing in terms of increase in market functionaries but
effort is needed from the officials of APMC in Hospet and Siraguppa to take some
measures to increase the market functionaries for the smooth running of marketing
activities in the yard
28
Table-25
Licensed Market Participants in Selected APMCs of Bellary District
Sl No Market Participant
APMC Bellary APMC Hospet APMC Siraguppa
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 435 441 538 462 485 121 123 136 150 141 115 120 146 176 198
2 Commission agents 352 368 448 382 371 75 77 84 103 88 10 10 12 09 08
3 Exporters 412 437 531 452 484 121 123 136 150 141 120 120 147 177 198
4 Importers 415 430 527 442 473 121 123 136 150 141 120 120 147 177 198
5 Retailers 102 115 101 120 95 76 74 93 95 95 - - - - -
6 Processors 45 45 47 45 55 26 24 24 23 24 42 43 46 45 59
7 Ginners 26 27 29 25 17 - - 27 24 24 - - - - -
8 Pressers 20 20 22 20 09 NA NA NA NA NA - - - - -
9 Stockiest 420 430 518 421 463 120 123 136 150 141 130 134 159 178 198
10 Weighmen 16 16 16 16 16 03 03 04 04 04 - - - - -
11 Crushers 26 26 26 25 18 04 02 02 02 02 - - - - -
12 Warehousemen 01 01 01 01 01 02 02 02 02 02 02 02 03 03 03
13 Coolies 920 902 1018 1213 910 262 173 373 429 668 120 128 237 145 145
14 Transporters 45 48 43 02 04 14 14 12 14 10 0 0 0 0 0
Total 3235 3306 3865 3626 3401 945 738 1165 1193 1481 659 677 897 910 1007 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
29
Sample size
The main refrain of this part of research study is the detailed analysis of the
primary data collected from the respondents ie market participants from APMC
about marketing services provided by the APMCs in five districts of Gulbarga
division Three APMCs from each district on the basis their performance ie best
performer average performer and low performer taken for the study The details of
the responses obtained on various services offered at APMCs yard and their level of
satisfaction towards it in the light of the statistical data obtained through the
questionnaires addressed to market participants such as commission agents hamals
traders graders etc are shown in the following part
The deep analysis of the responses from the sample size of market participants
has provided good insight into the dimensions of the marketing services and the
quality of those services rendered to the farmers seller of agriculture produce The
analysis has been done with necessary theoretical backs drops of each of the services
related to the marketing activities in the APMC yard
Table-26
District Wise Sample Size of Market Participants
Name of District Frequency Percentage Cumulative Percentage
Bidar 25 2000 2000
Gulbarga 25 2000 4000
Koppal 25 2000 6000
Raichur 25 2000 8000
Bellary 25 2000 10000
Total 125 10000 -
Source Field survey
Table 26 provides the information about the district wise frequency of sample
chosen for the present study The total sample for the study was 125 market
participants Gulbarga division constitutes of five districts from each districts 25
respondents were selected
30
Profile of Market Participant
An attempt has also been made in this part to study the socio-economic and
demographic factors of the market participants in order to examine the significant
relationship if any exist in between their profile and performance
Age Group
The age composition of the various market participants covered in the study
areas reveals some significant trends The details of the age of respondents of district
wise are provided in the following table
Table-27
Age Wise Classification of Market Participant
Sl No Name of APMC
Age of Respondent (in years) Total Below
20 21 ndash 40 41 ndash 60 60 and
above 1 Gulbarga - 18
(720) 6
(240) 01
(40) 25
(200) 2 Bidar - 18
(720) 6
(240) 01
(40) 25
(200) 3 Koppal - 18
(720) 5
(200) 01
(40) 25
(200) 4 Raichur - 18
(720) 6
(240) 02
(40) 25
(200) 5 Bellary - 18
(720) 7
(280) 01
(40) 25
(200) Total 000
(000) 90
(720) 29
(232) 06
(46) 125
(100) Source Field study Note Figures in brackets indicates percentage to total It is evident from the Table 27 that more than 34th of the total respondents
from market participants ie 90 belonged to the age group of 21- 40 years 232
of respondents belonged to the age group of 4160 years while smaller number of ie
of respondents which constitutes 48 of total respondents are in the age group of 61
years and above It is revealing to note that no number respondents Out of total 125
respondents belonged to below 20 years of age group
31
Status of Educational Qualification
The data collected through personal interview with regarding education
qualification of all market participants operating in the APMC in Gulbarga division
has provided Some useful details about their educational status which is considered
to be most significant factor in discharging their duties and responsibilities more
efficiently and effectively The detail of educational qualifications of sample group of
market participants is shown in below Table 28
Table-28
Qualification Wise Classification of Market Participant
Sl No Name of APMC
Educational Qualification Total Below
Primary Secondary Degree PG and
others
1 Gulbarga 01 (40)
11 (440)
03 (120)
10 (400)
25 (200)
2 Bidar 01 (40)
09 (360)
03 (120)
12 (480)
25 (200)
3 Koppal 01 (40)
10 (400)
03 (120)
11 (440)
25 (200)
4 Raichur 01 (40)
09 (360)
02 (80)
13 (520)
25 (200)
5 Bellary 02 (80)
11 (440)
04 (160)
08 (320)
25 (200)
Total 06 (48)
50 (400)
15 (120)
54 (432)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total It is learnt from the above Table 28 that 432 of respondents were post
graduates and other technical qualifications such ITI and other diploma qualifications
40 of the sample respondents were qualified upto higher secondary followed 12 of
respondents were graduates Only 6 were belonged to the primary category It is
however significant to note that higher secondary education and other technical
education qualification holders were majority in total sample size ie 40 to 432
as compared to degree holders ie only 12 of sample size
32
Religious Composition of Sample
Religion of respondents is more dominating factor in occupation for their
livelihood Researcher has also tried to accumulate the data about the religion of
respondents through interview schedule In the present study respondents religion was
broadly classified in 4 category ie Hindu Muslim Christian and others
Table-29
Religion Wise Classification of Marketing Participant
Sl No Name of APMC
Religion Total
Hindu Muslim Christian Others
1 Gulbarga 22 (880)
02 (80)
01 (40)
- 25 (200)
2 Bidar 22 (880)
03 (120)
- - 25 (200)
3 Koppal 21 (840)
04 (160)
- - 25 (200)
4 Raichur 21 (840)
04 (160)
- - 25 (200)
5 Bellary 23 (920)
01 (40)
01 (40)
- 25 (200)
Total 109 (872)
14 (172)
02 (060)
00 (000)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total
From the above Table 29 it is clear that majority ie 872 of total sample
size operating in study area of Gulbarga division belonged to Hindu religion followed
by Muslim religion ie 112 of sample group This is in conformity with the pre
dominantly Hindu dominant population composition of the area as compared to
Muslim religion If can be interpreted from the above that sample size comprised of
minor number ie 160 of respondents belonged to the Christian religion
33
NATURE OF PARTICIPANTS
The success or failure of any market depends upon the functionaries existing
in the market Hence the active participation of all types of functionaries is very
important in smooth conduct of market functions In order to facilitate for smooth
marketing of agriculture commodities each and every market is provided with
different market functionaries It is compulsory according to KAPM (R) Act 1966 for
every functionary functioning in the APMCs to take a valid licence from respective
APMC by paying necessary fees An analytical account of the market functionaries
operating in different selected markets are given in Table 210
Table-210
Nature of Participant
Sl No
Name of participant
Name of APMC Total
Gulbarga Bidar Koppal Raichur Bellary
1 Commission Agent
11
09
08
10
12
50 (400)
2 Hamalas 04
03
04 05 04 20 (160)
3 Trader 07 08 08 06 06 35 (2800)
4 Grader 01 01 01 01 01 5 (400)
5 Processor - 01 01 01 - 3 (240)
6 Broker 01 03 03 02 01 10 (80)
7 Others 01 - - - 01 02 (160)
Total 25 (200)
25 (200)
25 (200)
25 (200)
25 (200)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
A cursory look at the Table 210 reveals that commission agents traders and
hamals are the major market functionaries in the market Out of total 125 participants
34
respondents 40 percent were playing the role of commission agents 28 percent of
them were acting as traders and hamals constitute 16 percent The percentage of
broker grader and processor in selected sample size was 8 4 percent and 24
percent respectively The above figures shows whose role very important in market
place
Experience in Market Yard
Market participants experience in the market yard will helps to understand the
level of their satisfaction with regard to the economic benefit from the job and their
attitude towards it Satisfied market participant in APMC will strict to a single job for
a long period The details of their years of experience in market yard in the area
under study of sample size is given in the below table
Table-211
Years of Experience in Market Yard
Sl No Particulars
Experience in Market Yard
Below 10 11 ndash 20 21 ndash 30 30 and above Total
1 Gulbarga 02 18 03 02 25 (200)
2 Bidar 01 17 04 02 25 (200)
3 Koppal 01 21 03 - 25 (200)
4 Raichur 02 18 04 01 25 (200)
5 Bellary 02 22 01 01 25 (200)
Total 8 (64)
96 (768)
15 (120)
6 (48)
125 (10000)
Source Field survey Note Figures in brackets indicates percentage to total
Table 211 exhibits the experience of the respondents in the market yard of
125 market yard of 125 market participant respondents Out of total sample size
768 are laying in between 11-20 years of experience in the market yard 15
35
respondents which constitute 12 of sample group had an experience of 21-30 years
in the market yard Below 10 years and above 30 years of experience in market yard
of respondents were 64 and 48 of sample respondents Finally to conclude about
the market yard experience old market participant were high in number as compared
to the new market participants ie less than 10 years of experience in market yard
Motivational Factors ndash Sample Study
The word lsquomotivationrsquo comes from the Latin meaning ldquoTo moverdquo it generally
means an inner or outer drive to meet a need or a good This is the impelling force
which draws the human from his house and inspires her to start something on his own
The variables comprise of heredity more profitable uncertain induced
unemployment and others Accordingly by incorporating the above the researcher
has asked the respondents to rank the motives of their present profession Their
responses were presented in the following table
Table-212
Motivated Factors of Profession
Sl No Particulars
Motivated Factors Total
Heredity More Profitable
Uncertain Induced
Un Employment Others
1 Gulbarga 22 - 02 01 - 25 (200)
2 Bidar 16 03 06 - - 25 (200)
3 Koppal 18 03 03 01 - 25 (200)
4 Raichur 22 01 02 - - 25 (200)
5 Bellary 23 01 01 - - 25 (200)
Total 101 (808)
8 (64)
14 (112)
2 (16)
00 (00)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total It is evident from the Table 212 that heredity was the most dominant motive
with 8080 of sample size This group distinctively falls under ldquopushrdquo category of
profession who resorted to this profession because of same compulsions This
compulsion cited were death of Kartha to supplement meager income at home etc
36
This way followed by uncertain induced with a percentage of 1120 of
sample size The respondents quoted few reasons for choosing their profession such
as poverty no alternative jobs to do and lower education etc 64 of total
respondents opinioned that they were chosen this profession because of more
profitable
Satisfaction with Marketing Practices
In the process of marketing there are three dimensions these are time space
and form The marketing function is having a one or the combination of these three
dimensions While performing these functions the different functionaries are rewarded
for their services at every level The marketing cost the market margins and the
competition in the market is different to product to product Similarly the market
functions very from product to product for example the marketing of grains are
having different functions than that of the marketing of vegetables Respondentrsquos
satisfaction level towards these marketing practices are shown in below table
Table-213
Satisfaction of Marketing Practices
Sl No Particulars Level of Satisfaction
Total Satisfied Unsatisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 24 (960)
01 (40)
25 (200)
4 Raichur 24 (960)
01 (40)
25 (200)
5 Bellary 23 (920)
02 (80)
25 (200)
Total 118 (944)
7 (56)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
37
Table 213 shows the district wise market participant respondents level of
satisfaction towards marketing practices It could be seen from the above table that
more than 94 of respondents are of the opinion that the quality of marketing
practices practiced in the APMC yard is fully satisfied and rest of respondents ie 56
percent were fully expressed that the marketing practices are unsatisfied
The level of satisfaction in Gulbarga district APMC Koppal district APMC
and Raichur district APMC was above 96 but it was 9200 in Bidar and Bellary
From the above opinion and analysis of responses it can be concluded that few steps
are necessary to take by APMCs to make 100 satisfaction in for marketing
practices
Farmerrsquos Activeness
Market participants were interviewed with an intension to extract their level of
satisfaction in the farmerrsquos activeness in the APMC yard in selected units
Respondents are given two option regarding farmers active involvement in marketing
of their produce ie satisfied or unsatisfied The results of the investigation are
presented in Table 214
Table-214
Satisfaction with Farmers Activeness in APMC
Sl No Particulars Satisfaction with Farmers
Total Satisfied Unsatisfied
1 Bidar 13 (520)
12 (480)
25 (200)
2 Gulbarga 18 (720)
07 (280)
25 (200)
3 Koppal 10 (400)
15 (600)
25 (200)
4 Bellary 21 (840)
04 (160)
25 (200)
5 Raichur 15 (600)
10 (400)
25 (200)
Total 77 (616)
48 (384)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
38
Table 214 gives the respondents level of satisfaction with the farmerrsquos
activeness in marketing activities in APMC yard More than 61 of market
participant respondents fully satisfied with farmers activeness but 38 of them are
fully unsatisfied and suggested to participate actively in marketing activities Few
number of farmers physically visiting and actively involved during the sale of their
produce An awareness programme from APMC is very necessary to help farmers and
to motivate them to involve in marketing activities
Facilities at APMC
Basic infrastructure at APMC yard is very much essential for smooth
functioning of marketing activities The selected APMC for present study has
provided necessary facilities such as water canteen communication transport and
banking and finance etc to the market participants But all the participants
respondents are unable to get those facilities The percentage of functionary
respondents who have availed these facilities and those who have deprived of the
facilities are given in the Table 215
Table-215
Facilities at the APMC Yard
Sl No
Facilities at APMC
Name of District Total Gulbarga Bidar Koppal Raichur Bellary 1 Water 20
(1886) 19
(1792) 22
(2075) 23
(2169) 22
(2075) 106
(848) 2 Canteen 14
(2121) 13
(1969) 12
(1818) 11
(1667) 16
(2424) 66
(528) 3 Communication 24
(2264) 21
(1981) 20
(1886) 22
(2075) 19
(1792) 106
(848) 4 Market
information 22
(2075) 20
(1886) 19
(1792) 24
(2264) 21
(1981) 106
(848) 5 Transport - - - - - - 6 Health and
sanitation 11
(2291) 09
(1875) 08
(1667) 10
(2083) 10
(2083) 48
(384) 7 Banking and
Finance - - - - - -
8 Others - - - - - - Total 125
(1000) Source Field survey Note Figures in brackets indicates percentage to total
39
A glance over the above Table 215 reveals the various facilities provided at
APMC yard in selected sample size More than 84 of functionary respondents
opinioned positively about water facility 52 of them about canteen 38 about
health and sanitation etc It is to be noted here that no single APMC has provided
transportation facilities and banking and finance which is very vital in marketing
Satisfaction about Facilities
APMCs have provided several infrastructure facilities to market participants
These facilities provided by APMC to market functionaries helps them to provide
good services to farmers efficiently
Table-216
Level of Satisfaction about the Facilities
Sl No Name of the District
Level of Satisfaction Total
Fully Satisfied Not Satisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 23 (920)
02 (80)
25 (200)
4 Raichur 21 (840)
04 (160)
25 (200)
5 Bellary 21 (840)
04 (160)
25 (200)
Total 112 (896)
13 (104)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
It is observed from the Table 216 that a large number of market participants
(ie 896) were fully satisfied with the infrastructure facilities available inside the
market yard Nearly 104 percent expressed their dissatisfaction over the facilities
provided by APMCs Gulbarga APMC was considered to be better (9600) in
facilities as compared with other four districts selected for the present study Raichur
40
and Bellary districts APMCs had needed more important in terms of facility to satisfy
market functionaries Market participants are directed to fallow the specified
techniques These techniques are prescribed by the Indian standards institute The
techniques suggests to use proper ingredients in specified proportions The graded
processed goods bear ISI label indicating that it contained the graded and good quality
if the product The selected market participants were also asked about the quality of
marketing functions The analysis of Table 217 revel that more than 76 of
respondents had satisfied the quality of marketing function in five districts whereas
more than 20 of them not satisfied with quality of services in the market yard
41
Table-217
Level of Satisfaction with Quality of Marketing Services
Quality of Services
Gulbarga Bidar Koppal Racihur Bellary Total Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Assembling 19 06 19 6 21 4 19 06 19 06 125
(100) Processing 22 03 22 03 23 02 22 03 22 03 125
(100) Grading 15 10 16 09 14 11 15 10 15 10 125
(100) Storing - 25 - 25 - 25 - 25 - 25 125
(100) Weighment 12 14 10 13 11 12 14 14 13 15 125
(100) Banking and finance
04 21 03 22 02 23 04 21 04 21 125 (100)
Rest house 02 23 01 24 02 23 02 23 03 22 125 (100)
Insurance - 25 - 25 - 25 - 25 - 25 125 (100)
Source Field survey Note Figures in brackets indicates percentage to total
42
CHAPTER-III CUSTOMER PERCEPTION ABOUT MARKETING
MANAGEMENT OF APMC IN GULBARGA DIVISION
INTRODUCTION
In keeping with very little of the research the survey is conducted to
supplement the evaluation through the primary data These attempts bring out the
basic problems and difficulties if any in the implementation of the APMCs Act
through state agricultural marketing board Different types of schedules are used for
evaluating the working of the APMC act However the agricultural marketing is
clearing a midwife between agricultural production and agricultural marketing on the
one hand and the former beneficiaries on the other hand But the farmers might have
direct link what so ever with marketing agencies therefore a schedule for the farmers
which has been different from what we have used for market participants As such the
marketing participant of the agriculture market are the main pillars for
implementation of the schedule The questionnaire has been personally given to
farmers of the sample groups and the researcher had a detailed personal discussion
with the market participants with regard to working or agriculture marketing The
main focus of the study was evaluation of management of agricultural produce
marketing committees in Karnataka from the point of farmers therefore our survey
schedule covers the background of farmers and market functionaries such as age
education religion family background source of incomes land holdings of both
farmers and market participant were collected Some of these aspects have been
discussed in the following paragraphs
43
Table-31
District Wise Selection of Farmers Sample Size
Name of the District Frequency Percentage Cumulative
Percentage
Gulbarga 50 200 200
Bidar 47 188 388
Koppal 49 196 584
Raichur 52 208 792
Bellary 52 208 1000
Total 250 1000 -
Source Field survey
Table 35 provides the information about the district wise selection of member
farmers which have been chosen for the present study The total sample size for the
study was 250 farmers Raichur and Bellary district form 2080 percent each and
Gulbarga district form 2000 percent and Bidar and Koppal district 188 percent and
196 respectively The member of farmers selected for the purpose of was equally
distributed to all five districts with little change in percentage The reason for that is to
identify the district among the five districts where APMCs are working upto the
aspirants of farmers
44
Table-32
Age Wise Classification of Agriculturist
APMCs District
Age in Years Total
Below 20 20 ndash 40 41 ndash 60 61 and above
Bidar 01 22 21 03 47 (186)
Gulbarga 01 23 23 03 50 (200)
Koppal 01 23 22 03 49 (196)
Raichur 01 24 24 03 52 (208)
Bellary 02 24 24 02 52 (208)
Total 06 (240)
116 (4640)
114 (4560)
14 (56)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It could be found from the Table 32 that 4640 percent of farmer respondents
were aged between 20-40 years 45-60 percent in between 41-60 years and 5-6
percent above 61 years Only 240 percent of total sample size were aged below 20
years The above figures about the age of agriculturists cleared that young and middle
aged formers are more actively participated in the APMC yard when compared to old
age farmers
Educational Qualification of Farmers
The level of the education of the farmers is one of the most important factor
which governs many more factors such as deciding the cropping pattern crop
rotation use of different inputs in farming optimum time of cultural practices and
where to sell the agricultural produce The following table shows the educational
qualifications of the farmer respondents
45
Table-33
Education Wise Classification of Respondents
Name of the APMCs
Educational Qualification
Total Literate Illiterate
Primary Secondary Degree PG and Others
Gulbarga 25 (500)
15 (300)
4 (80)
02 (40)
4 (80)
50 (200)
Bidar 23 (4894)
15 (3191)
03 (638)
02 (425)
4 (852)
47 (188)
Koppal 25 (5102)
16 (3265)
03 (612)
- (00)
5 (1021)
49 (196)
Raichur 26 (500)
16 (3076)
03 (576)
03 (576)
4 (772)
52 (206)
Bellary 28 (5385)
16 (3076)
03 (576)
- (00)
5 (963)
52 (208)
Total 127 (5080)
78 (3120)
16 (640)
07 (280)
22 (880)
250 (100)
Source Field study
Note Figures in bracket indicates percentage to total
From the above Table 33 it could be seen that out of the total 250 farmers
respondents selected for the present study 5080 percent of them are having primary
level of education 3120 percent of them have studied upto secondary Only 640
percent of total sample size possessed graduate level education followed by 280
percent post graduate and other qualification The illiterate percentage of respondents
total sample size is 880
Sources of Incomes
There are different sources of incomes available to farmers such as agriculture
income business self employment and employment in other organizations
Agriculture income is considered as major source of income to them and other
sources of incomes are secondary importance The details of their sources of incomes
along with agriculture incomes is shown in the table below
46
Table-34
Sources of Income of Respondents
Sl No
Name of the Market
Source of Income Total
Agriculture Business Employment Others
1 Gulbarga 40 (800)
6 (120)
2 (40)
2 (40)
50 (200)
2 Bidar 38 (8085)
5 (1063)
2 (1425)
2 (427)
47 (188)
3 Koppal 39 (7959)
5 (1020)
2 (408)
3 (613)
49 (196)
4 Raichur 42 (8076)
6 (1154)
3 (576)
1 (194)
52 (208)
5 Bellary 42 (8076)
6 (1154)
2 (385)
2 (385)
52 (208)
Total 201 (8040)
28 (1120)
11 (440)
10 (40)
250 (1000)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 34 that 8040 of respondents were having
agriculture income and 1120 percent had business income followed by 440 percent
and 40 percent of respondents from employment and other sources respectively This
will clearly indicates the much dependency of farmer respondents on agriculture for
income to meet the cost of livelihood This fact was same in five districts selected for
the study
Annual Gross Income
The farmers are getting incomes not only from agriculture but also from the
other sources discussed in previous table The gross annual income of the farmers
itself indicates the standard of living and their life style As far as in other farmers are
concerned they fully depend on agriculture for their livelihood Due to uncertainty in
agricultural production their annual income is getting fluctuation which results suicide
of many farmers in Karnataka
47
One side no guaranteed regular income and the other side rise in prices of
consumable goods forced them for borrowing money from outside to meet cost of
living and agricultural expense The researcher collected information about annual
gross income of respondents and shown in below table
Table-35
Annual Gross Income of Respondents
Sl No Annual income (Rs) Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 50000 to 150000 8 (160)
8 (1702)
8 (1632)
9 (1731)
9 (1730)
42 (166)
2 150001 to 250000 18 (360)
17 (3617)
17 (3469)
19 (3654)
18 (3462)
89 (356)
3 250001 to 350000 14 (280)
13 (2766)
14 (2857)
15 (2885)
15 (2885)
71 (289)
4 350001 to 45000 5 (100)
5 (1063)
5 (1022)
5 (962)
6 (1154)
26 (104)
5 450001 and above 5 (100)
4 (852)
4 (1020)
4 (768)
5 (769)
22 (88)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 35 that 166 percent of the respondents
were having the income of Rs 50000 ndash 150000 per annum income category and
356 percent had an income between Rs 150001 to Rs 250000 The percentage of
respondents in the Rs 250001 to 350000 range was found to be 289 percent
whereas those with an income less than Rs 450000 but above Rs 350001
accounted for 104 percent of the respondents The respondents with an annual
income greater than Rs 450000 made up the remaining 88 percent of the total
sample size It is learnt from the study that the farmers were from different types of
age groups education qualification and income range
48
Type of Family
Type of the family also determines the income of farmers When the partition
of agriculture land take place it badly affects on the quantity of agriculture
production If agriculture activities are carried out in joint family leads bulk
production and minimization of agriculture cost The data regarding the type of family
was also collected through schedule of questionnaire prepared for the farmers is
shown in below table along with their percentage to total sample size
Table-36
Type of Family of Farmer Respondents
Sl No Particulars Type of Family
Total Nuclear Family Joint Family Individual
1 Gulbarga 36 (1988)
14 (2029)
- 50 (2000)
2 Bidar 34 (1878)
13 (1884)
- 47 (1880)
3 Koppal 35 (1933)
14 (2028)
- 49 (1960)
4 Raichur 37 (2044)
15 (2173)
- 52 (2080)
5 Bellary 39 (2157)
13 (1886)
- 52 (2080)
Total 181 (7240)
69 (2760)
- 250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table depicts the classification of respondents on the basis of type
of family ie nuclear family or joint family 7240 percent of sample size are
belonged to nuclear family and remaining 2760 percent are living still in joint family
This clearly indicated that majority of preferred not to stay with joint family but want
to be in nuclear family
49
Family Size
Family size means the number of family members staying together in a single
family The farmers were also asked about the number of members living together
which helps to know their tendency towards big family or small family Big family
with small agriculture land holding found to be different to manage economic needs
and vice versa Keeping this point in mind data was collected about the size of family
members and is shown in Table 37
Table-37
Family Size of Respondents
Sl No Name of the Market Family Members
Total Below 4 4 ndash 8 8 ndash 12 Above 12
1 Gulbarga 15 (2027)
27 (2000)
05 (2083)
03 (1764)
50 (2000)
2 Bidar 14 (1891)
25 (1851)
05 (2083)
03 (1764)
47 (1880)
3 Koppal 15 (2027)
24 (1777)
06 (2500)
04 (2353)
49 (1960)
4 Raichur 15 (2027)
31 (2296)
04 (1667)
02 (1176)
52 (2080)
5 Bellary 15 (2028)
28 (2076)
04 (1667)
05 (2943)
52 (2080)
Total 74 (2960)
135 (5400)
24 (960)
17 (680)
250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table presents the classification of the respondents on the basis of
the size of the family members The category is done family below four members 4
members to 8 farmers respondents which constitute 54 percent of the sample group
had members between 4-8 and 2960 percent of sample size had family members
below 4 followed by 960 percent and 680 percent had 8-12 members and above 12
members respectively
50
Agriculture Land Holdings
The annual gross income of the respondents largely depends on the agriculture
land holdings by the farmers an attempt has been made to collect the details of the
agriculture land holding by the farmer respondents The size of the land holdings and
socio economic conditions of the farmers play an important role in farming as well as
marketing activities The size of the land holdings by sample size selected for the
present study is shown in the below table
Table-38
Total Agriculture Land Holdings
Sl No
Name of the Market
Total Agriculture Land Holding Total Below 5
Acres 5 ndash 10 Acres
11 ndash 15 Acres
Above 16 Acres
1 Gulbarga 3 (60)
20 (400)
9 (180)
18 (360)
50 (2000)
2 Bidar 3 (638)
19 (4042)
9 (1915)
16 (3405)
47 (188)
3 Koppal 3 (0612)
20 (4082)
9 (1837)
17 (3569)
49 (1960)
4 Raichur 4 (769)
21 (4038)
10 (1923)
17 (327)
52 (2080)
5 Bellary 4 (769)
21 (4038)
9 (1730)
18 (3463)
52 (208)
Total 17 (68)
101 (404)
46 (184)
86 (3440)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above Table 38 revels that 404 percent of the total respondents are small
farmers (ie 5 acres or more but less than 10 acres) 3440 percent of sample groups
are large farmers ie 16 acres or more than 16 acres and only 68 percent of
respondents are having less than 5 acres of cultivating land (marginal farmers)
Major Crops Grown
Generally agriculture crops are grown on basis and depending on the agro
climatic conditions as well as the socio-economic conditions of the farmers The study
51
was conducted to know the major crops grown by the farmer respondents selected for
the present study
Table-39
Annual Crop Grown in Land
Crop Quantity in Quintals
Total 1-25 26-50 51-75 76-100 100 and
above
Red gram 10 50 22 06 10 98
Green gram 96 16 04 - - 116
Black gram 22 38 04 64 - 128
Jawar 99 36 04 02 - 141
Maize 11 33 19 - 02 65
Bajra 07 02 05 07 04 25
Bengal gram 09 35 12 - 36 92
Sugarcane 21 08 04 08 - 41
Others 06 08 12 06 - 32 Source Field study
The quantity of crop grown by the farmers annually is given in the above
Table 39 The data about the different crop grown by the sample size of farmers are
shown in quantity along with the percentage of each crop to total crop grown by the
sample farmers
The table reveals that 5640 percent of the farmers respondents cultivate jowar
followed by 4640 percent farmers ever growing green gram red gram (3920)
maize (26) Black gram (2560) percent Bengal gram (368) and sugarcane
(1640) other crops grown constitute 5120 to total which included onions
groundnuts pulses chillies wheat and paddy etc
It can be seen clearly from the same table that red gram jowar green gram
and black gram are cultivated by the farmer respondents partially for self consumption
purpose and partially for selling It could also be noted from the same those
commercial crops like sugarcane bajra maize chillies sunflower paddy and onions
52
find a major portion in the cropping pattern of the farmer respondents This clearly
indicates the higher degree of commercialization of agricultural production by the
farmers in the Gulbarga division
Preference of Sale of Agriculture Produce
Marketing today is becoming more complicated with the advancement of the
civilization The commodity to be marketed must be of value It shouldnrsquot be a free
gift of the nature easily available for mere picking The farmer wish to have the
maximum share in the price of the products and on other side he wish to purchase the
inputs at the minimum price As he is interested to maximize his profits on sale of his
agriculture produce he will always in search for the market place where he can get
good price An attempt has been made in schedule to acquire information about the
preference of sale of agriculture produce by the sample respondents is shown in the
Table 310 and 311
Sale of Agriculture Produces
Table-310
Sale of Agriculture Produces
Sl No
Name of Market
Sale of Agriculture Produces Total
Sample Open Market APMC Confirmation Other
1 Gulbarga 21 (200)
46 (200)
080 (200)
01 (2500)
50 (2000)
2 Bidar 20 (1905)
43 (1870)
078 (1950)
-- 47 (188)
3 Koppal 21 (200)
45 (1956)
078 (1950)
01 (2500)
49 (196)
4 Raichur 22 (2095)
48 (2086)
083 (2075)
01 (2500)
52 (208)
5 Bellary 21 (200)
48 (2088)
081 (2025)
01 (2500)
52 (208)
Total 105 (420)
230 (920)
04 (16)
04 (16)
250 (100)
Source Field survey Note Figure in bracket indicates percentage to total
53
After the development of regulated markets farmers preferred to sell their
agriculture produce in the APMC yard this was clear in the Table 310 The response
of sample size was collected about sale of the agriculture produce 92 percent of
sample size preferred to sold only in the APMC market as to overcome from the
problems and malpractices in the open markets and 42 percent in open market 16
percent of sample each in confirmation market and other type of sale
Table-311
Preference of Sale of Agriculture Produces by Respondents
Sl No
Name of the Market
Preference of Sale Total Sample Local
Market Taluks Market
District Market
Other State
1 Gulbarga 23 (200)
23 (2035)
25 (2016)
01 (250)
50 (200)
2 Bidar 22 (1913)
21 (1858)
23 (1855)
01 (2500)
47 (188)
3 Koppal 23 (200)
22 (1946)
24 (1935)
-- 49 (196)
4 Raichur 24 (2086)
24 (2124)
26 (2096)
01 (2500)
52 (208)
5 Bellary 23 (2001)
23 (2037)
26 (2098)
01 (2500)
52 (208)
Total 115 (460)
113 (452)
124 (496)
04 (160)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The above table gives the preference of sale of agriculture produce by the
farmer respondents Researcher has discussed with the respondents and mobilized the
data whether they prefer to sell their agricultural produce in local market taluka or
district market
Higher percentage of farmers ie 4960 is sold their agricultural produce in
the district to get better price compared to local market 46 percent of them opinioned
that they are selling their produce in local markets due to infrequency of
transportation facilities and to save the expenditure from bringing produce to district
or taluk market Some farmer respondents ie 4520 percent are sold near to taluka
market and rest of them (160 percent) through direct sale to whole seller retailer or
brokers etc
54
Mode of Transportation
Most of the agricultural goods are not consumed at the places of their
production They are required to be transported in the various stages of the market
Right from lifting of the produce from the threshing floor to its ultimate consumer the
transportation is required to the farmer to bring the agricultural produce to the market
The various means of transport are used These are bullock carts horse tanga tractor
trolleys trucks etc Transport being the most important function of marketing In case
of transport in the rural India though in modern days its importance is declining now
the power operated means like tractors trolley trucks are being used but still bullock
cart and horse tonga is an important means of transport in agricultural marketing The
study had been conducted to know the mode of transport means used by the farmer
respondents to transport the agricultural produce from farm place to market place
same is presented in the table
Table-312
Mode of Transportation of Agriculture Produce by Respondents
Sl No
Name of the Market
Mode of Transportation Total Sample Bullock
Cart Tractor and
Trucks Hired
Vehicles Own
Vehicle 1 Gulbarga 18
(200) 16
(1928) 21
(1963) 01
(2500) 50
(200) 2 Bidar 17
(188) 15
(1807) 20
(1869) - 47
(188) 3 Koppal 18
(200) 16
(1928) 21
(1963) 01
(2500) 49
(196) 4 Raichur 19
(2111) 17
(2048) 22
(2056) 1
(2500) 52
(208) 5 Bellary 18
(2009) 19
(2289) 23
(2149) 01
(2500) 52
(208) Total 90
(360) 83
(322) 107
(428) 04
(160) 250
(100) Source Field study Note Figures in bracket indicates percentage to total It can be seen from the above table that maximum ie more than 42 percent
of our farmer respondents were transported their agriculture produce through hired
vehicle followed by 360 percent of them through bullock cart owned by themselves
Modern means of transportation such as tractors and trucks are used by 322 percent
of sample size The above figure in table indicates that dependency on traditional
55
mode of transportation was decreasing when it compared to modern mean to
transportation
Market Charges
As per the bye laws approved by the chief marketing officer according to the
Act market charges are levied by the market committees In all selected market
committees for the present study in the Gulbarga division only three types of market
charges are levied to the farmers for sale of his agricultural produce in the regulated
markets One commission to commission agent which is fixed at 2 in all the markets
but other market charges different from one market to another market depending upon
the decisions to this effect by the respective market committees A part from
commission all APMCs in the sample size charges hamali and weighment charges In
some APMCs cleaning charges are also levied for cleaning the produce which is
included in other markets in hamali Thus no unauthorized deductions are made now
in any of the markets in the division Few secretaries of the APMCs during the field
study opined that the charges are quite nominal and the services rendered are more
valuable than the charges and they cannot be quantified
Table-313
Market Charges by APMC
Sl No Name of Market Market Charges Total Sample Very Low Very High Fair Average
1 Gulbarga 03 (60)
15 (300)
10 (200)
22 (440)
50 (200)
2 Bidar 02 (425)
15 (3191)
11 (2340)
19 (4044)
47 (188)
3 Koppal 02 (408)
14 (2857)
11 (2245)
22 (4490)
49 (196)
4 Raichur 03 (576)
16 (3076)
10 (1923)
23 (4423)
52 (208)
5 Bellary 02 (384)
17 (3269)
10 (1923)
23 (4424)
52 (208)
Total 12 (480)
77 (3080)
52 (2080)
109 (4360)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total From the above table it could be seen that 4360 percent of farmer respondents
are of the opinion that APMC is charging average ie neither too high nor too low
market charges on the sale of agricultural produce by the farmers On the other hand
56
3080 percent of farmer respondents dissatisfied with the market charges by the
APMC as they expressed that market charges are very high in APMC yard as
compared with open market Though 480 percent of them are fully satisfied and
2080 percent of respondents were reacted positively about the market charges
Carrying Costs
In case of agricultural marketing the transport cost is to be paid by the farmer
if he is selling the produce in the market but if he is selling to the village trader the
cost is to be paid by the trader Carrying cost is the most important cost in the process
of agricultural marketing The carrying cost is more important in context of place
utility of product The efficiency of the marketing is dependent on reducing the cost
of carrying Generally the cost of carrying of bullock cart is higher as compared to
the power operated means A survey was conducted to ascertain the opinion of the
farmer respondents towards the carrying cost paid by them in study area and the data
so collected was shown in the table below
Table-314
Carrying Cost Paid by Respondents
Sl No Name of Market Carrying Cost Total Sample Very Low Very High Fair Average
1 Gulbarga 06 (1200)
10 (2000)
03 (600)
31 (6200)
50 (200)
2 Bidar 05 (1063)
09 (1915)
03 (638)
30 (6384)
47 (188)
3 Koppal 06 (1224)
09 (1836)
02 (408)
32 (6532)
49 (196)
4 Raichur 07 (1346)
11 (2115)
03 (576)
31 (5963)
52 (208)
5 Bellary 06 (1153)
11 (2115)
04 (769)
31 (5963)
52 (208)
Total 30 (1186)
50 (2000)
15 (580)
155 (6234)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above table shows the carrying costs paid by the farmer respondents to
carry the goods from one place to another place with in the market yard One thing is
clear from the above table that more than 60 of respondents are satisfied with
carrying costs paid by them But minor percentage ie 20 percent of respondents not
57
satisfied saying transporters were charging heavy cost and 580 percent were
opinioned that transportation cost paid by them was neither high or nor low but it was
fair From these data analysis maximum number of farmers respondents were fully
and partially satisfied with carrying cost paid in the market yard
Facilities Provided at APMC
Table-315
Facility Provided at APMC
Particulars
Districts Grand Total
Gulbarga Bidar Koppal Raichur Bellary
Yes No Yes No Yes No Yes No Yes No Yes No Total
Water 26 23 27 24 26 24 27 23 27 23 133 (5320)
117 (4680)
250 (100)
Toilet 4 46 4 43 4 45 5 47 5 47 22 (5320)
228 (9120)
250 (100)
Canteen 13 37 12 35 12 37 13 39 12 39 62 (2480)
188 (7520)
250 (100)
Communication 27 23 26 23 27 22 26 24 27 25 135 (5400)
115 (4600)
250 (100)
Shopping property
21 29 20 27 20 29 20 32 20 32 101 (4040)
149 (5960)
250 (100)
Market information
28 22 27 20 27 22 29 23 29 23 140 (5600)
110 (4400)
250 (100)
Other facilities (if any)
29 21 28 19 28 21 30 22 30 22 145 (5800)
105 (4200)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Table-316
Coefficient Correlation between Varieties with in Facilities Provided by APMC
Sl No
Facilities by APMC
Facilities by APMC
Water Toilet Canteen Commu-nication
Shopping Property
Market Information
Other Facilities
1 Water 1000 235() 535() 984() 749() 428() (a)
2 Toilet 235() 1000 474() 230() 376() 218() (a)
3 Canteen 535() 474() 1000 526() 693() 505() (a)
4 Communication 984() 230() 526() 1000 749() 411() (a)
5 Shopping property
749() 376() 693() 749() 1000 705() (a)
6 Market information
428() 218() 505() 411() 705() 1000 (a)
7 Other facilities (if any)
(a) (a) (a) (a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
58
The coefficient correlation calculated between the variables (one variable with
the another variable) within the facilities provided by APMC is shown in the above
table Each variable is positively correlated with other variable
Table-317
lsquotrsquo - Test Values
One-Sample Statistics
Facilities by APMC N Mean Std Deviation
Std Error Mean
Water 250 14680 5000 3162E-02
Toilet 250 19120 2839 1795E-02
Canteen 246 17480 4351 2774E-02
Communication 250 14600 4994 3158E-02
Shopping Property 246 15894 4929 3143E-02
Marketing Information 250 14400 4974 3146E-02
Other Facilities 145 20000 0000(a) 00000 Note a) Cannot be computed because the standard deviation is 0
One-Sample Test
Facilities by APMC
Test Value = 0
t Df Sig
(2-tailed) Mean
Difference
95 Confidence Interval of the
Difference
Lower Upper
Water 46424 249 000 14680 14057 15303
Toilet 106500 249 000 19120 18766 19474
Canteen 63015 245 000 17480 16933 18026
Communication 46225 249 000 14600 13978 15222
Shopping Property 50573 245 000 15894 15275 16513
Marketing Information
45776 249 000 14400 13780 15020
59
Dissemination of Market Information
The dissemination of market information is most important so to make the best
use of this information There is no use of collection of data if it is not disseminated
well in time There are different sources for dissemination of market information such
as news papers radio and television department of government post and telephone
etc
The different news papers published in English Hindi and regional languages
are publishing the information about piracy of various commodities in different
markets There are periodical magazines and journals published weekly fortnightly or
monthly Radio and television is depicting the news about markets and broadcast and
televise the information about prices daily in its programmes The various department
of the government publish various reports concerned with agricultural marketing The
traders exchange the information about prices and arrivals in different markets
through telephone or through letters Price bulletins are published by directorate of
marketing and inspection providing information about prices and personal contact
between farmer to farmers farmer to trader etc is also a source of information The
following table provides the details of responses of source of market information
Table-318
Sources of Market Information
Sl No Particulars Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 Newspaper 32 (2013)
30 (1886)
31 (1950)
33 (2075)
33 (2015)
159 (636)
2 Radio and TV 42 (1981)
40 (1886)
42 (1981)
44 (2075)
44 (2075)
212 (848)
3 Dept of government 05 (2083)
05 (2083)
05 (2083)
05 (2083)
04 (1667)
24 (96)
4 Post and telephone - - - 01 (5000)
01 (5000)
02 (08)
5 Personal contact - - - 01 (5000)
01 (5000)
02 (08)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
60
A comparative analysis of sources of market information reveals that 848
percent of farmer respondents obtained the market information through radio and
television followed 6360 percent from newspapers and 372 from price bulletins
about the market 96 of total sample size depended on the various departments of
the governments such as directorate of economics and statistics of the central
government directorate of economics and statistics of the sates the agricultural
marketing departments of states etc about the prices in different regulated markets
Personal contact and post and telephone sources of market information is considered
to be a least sources from respondents
Table-319
Defects in Market Information
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Ignore retail prices 11 (2200)
10 (2553)
10 (2041)
11 (2115)
11 (2115)
53 (212)
2 Delay in news 13 (2600)
12 (2553)
13 (2653)
14 (2692)
14 (2692)
66 (2640)
3 Wide range of prices 05 (1000)
06 (1277)
06 (1224)
06 (1154)
07 (1346)
30 (1200)
4 Incomplete information
08 (1600)
08 (1702)
08 (1632)
09 (1730)
08 (1538)
41 (1640)
5 Illiteracy 07 (1400)
07 (1489)
07 (1428)
08 (1538)
08 (1538)
37 (148)
6 Others 06 (1200)
04 (851)
05 (1020)
04 (769)
04 (769)
23 (920)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
From the above table it can be seen that farmers are getting different
advantages for grading the products Their response is not homogenous ie 38
percent of the farmers are supported grading in easy marketing of the agriculture
produce 9680 percent are favoured grading in establishing to face competition and
61
128 percent of sample group opinioned about the grading that it will helps in
obtaining higher prices Only 6 of them favoured to reduction of cost of marketing
and 64 to easy to get finance facilities
Table-320
Ranking of Defects in APMC
Defects in APMC Ranking of Defects
Total First Second Third Fourth
No advance fund 32 (120)
216 (864)
02 (08)
02 (08)
250 (100)
Difficulty of storage 230 (920)
14 (560)
4 (160)
04 (160)
250 (100)
Lack of transportation 10 (40)
20 (80)
218 (872)
02 (080)
250 (100)
Lack of grading 10 (40)
179 (716)
02 (080)
59 (236)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The survey of APMC defects to rank on the basis of the respondents
preferences is shown in the above table 92 of the total respondents were opinioned
that the major defect in the APMC yard is difficulty of storage facilities followed by
no advance fund to farmers to meet the pre harvest expenses which constitute 864
of sample group
Table-321
Coefficient Correlation between Variables within Defects in Regulated Markets
Sl No
Defects in Regulated Markets
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 No Advance Money 1000 -354() 763()
2 Difficulty of Storage -354() 1000 044
3 Lack of Transport 763() 044 1000 Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
62
The details of the coefficient correlation calculated between all the variable of
defects in regulated markets are given in the above table Some variables within the
defects in regulated markets are found positive and negative correlated with each
other
Table-322
Correlation between Facilities Provided by APMC with Effects in Regulated
Markets
Sl No Facilities by APMC
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 Water - 269 () 058 - 218 ()
2 Toilet - 114 074 - 057
3 Canteen - 059 - 097 - 116
4 Communication - 276 () - 0062 - 222 ()
5 Shopping property - 173 () - 008 - 166 ()
6 Market information - 293 () - 141 () - 232 ()
7 Other facilities (if any)
(a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant The above table shows the computed result of correlation between the
facilities provided by the APMC to the farmers in the APMC with the defects
prevailing in the market yard The correlation was found significant between water
facilities communication facility shopping property and market information with no
advance money with a value -0269 -0276 -0173 and -0293 respectively The
correlation was insignificant between toilet and canteen facility in the market yard
with the no advance money
Difficulty of storage in the market yard is one of the most severe problem
found in the selected APMC yard The correlation between difficulty of storage with
the facilities by APMC were found insignificant in all cases except with market
information ie - 0141 But with lack of transport defect in the market yard the
63
correlation was insignificant between toilet and canteen with the transport defect with
a value of -0057 and -0116 respectively
Table-323
Facilities to Improve Market Efficiency
Facilities Ranking of Facilities
Total First Second Third Fourth Fifth
Trade more commodities 24 (96)
173 (692)
49 (196)
02 (08)
02 (08)
250 (100)
Increase in facilities 221 (884)
22 (880)
03 (12)
02 (08)
02 (08)
250 (100)
Role of government 34 (136)
29 (116)
175 (700)
06 (240)
06 (240)
250 (100)
Representative from farmers 04 (160)
20 (80)
10 (40)
212 (848)
04 (160)
250 (100)
Reduction in market fee 04 (16)
100 (400)
55 (220)
41 (1640)
50 (200)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-324
Coefficient Correlation between Variables of Facilities to
Improve Market Efficiency
Sl No
Facilities to Improve Market
Efficiency
Facilities to Improve Market Efficiency More
Commodities to Trade
Increase in
Facilities
More Role of Government
Representation From Framers
1 More commodities to trade
1000 419() -316() 355()
2 Increase in facilities
419() 1000 -619() 048
3 More Role of Government
-316() -619() 1000 336()
4 Representation from Framers
355() 048 336() 1000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
64
The above table depicts the values of the coefficient correlation calculated
between the variables of facilities suggested by the farmer to improve market
efficiency in the APMC yard
Table-325
Correlation between Facilities Provided with Facilities to Improve Market
Efficiency
Sl No
Facilities Provided by
APMC
Facilities to Improve Market Efficiency More
Commodity to Trade
Increase in
Facilities
More Role of Government
Representation from Farmers
1 Water -221() 098 -212() -167() 2 Toilet -100 -300() 220() 181() 3 Canteen -028 -076 -129() -089 4 Communication -218() 103 -222() -167() 5 Shopping
property 057 019 -249() 008
6 Market information
-073 116 -353() -176()
7 Other facilities (if any)
(a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The data collected about the opinion of the farmer respondents towards the
facilities provided by APMC is correlated with the suggestions obtained from them to
improve market efficiency further was given in the above table The result of
correlation is shown significant between water and communication facilities with
more commodities need to be allowed to trade under notified agriculture crops in the
APMC yard the correlation value is -0221 and -0218 respectively
A negative correlation between toilet and increase in market facilities ie -03
clearly indicates that APMC should concentrate on other facilities to improve market
efficiency other than toilet facility The government is required to play a vital role in
the APMC yard to improve the market efficiency by providing financial assistance to
APMC officials enabling them to provide essential facilities to the farmers and market
functionaries The correlation was negatively correlated between the facilities
provided by APMC listed in the above table except in toilet facility ie positive
correlation 0220 The highest negative correlation was computed between market
65
information with government role ie -0353 followed by -0249 (between shopping
property with government role) The farmersrsquo representation in the market committee
is also one of the important aspect in availing market facilities The correlation
between farmers representation with market facilities shows negative except in toilet
facility it is positive correlation ie 0181
Table-326
Correlation between Defects in Regulated Markets with Facilities to Improve
Market Efficiency
Sl No
Defects in Regulated Markets
Facilities to Improve Market Efficiency
More Commodities to
Trade
Increase in Facilities
Role of Government
Reduction in Market Fees
1 No advance money
611 () 039 343 () 439 ()
2 Difficulty of storage
-118 043 139 () 019
3 Lack of transport facility
500 () 059 445 () 895 ()
4 Lack of Gradation facility
-0115 0410 135 () 117
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The defects in the regulated markets were ranked by the farmers on their
preferences were also attempted to correlate with the additional facilities to be
provided to improve the market efficiency The correlation was positively correlated
between no advance money and lack of transport facility with the more commodities
to be permitted to trade in the market yard with value 0611 and 0500 respectively
No negative correlation was found between any of variables between defects in
regulated markets with the farmers opinions to improve market efficiency ie
increase in facilities Reduction in the market fees and charges is the another way for
the APMC officials to improve the market efficiency the correlation result is positive
with the market defects ie highest positive correlation with lack of transport facility
66
with reduction in market fees (0895) followed by no advance money with reduction
in market fees (0439) and (0117) between lack of gradation and reduction in market
fees Government role was also positively correlated to over come from all the defects
prevailing in the regulated market in the direction to improve market efficiency (the
correlation result was ranged between 0135 to 0445) Few defects were highly
correlated and others defects were less correlated with role of government variable
67
Table-327
Pearson Correlations
Correlations 18a 18b 18c 18d 19a 19b 19c 19d 19e
Pearson Correlation 18a 1000 -354() 763() 735() 611() 039 343() 439() 469() 18b -354() 1000 044 131 -118 043 139() 019 072 18c 763() 044 1000 911() 500() 059 445() 895() 898() 18d 735() 131 911() 1000 987() (a) 987() 948() 947() 19a 611() -118 500() 987() 1000 419() -316() 355() 1000() 19b 039 043 059 (a) 419() 1000 -619() 048 (a) 19c 343() 139() 445() 987() -316() -619() 1000 336() 1000() 19d 439() 019 895() 948() 355() 048 336() 1000 1000() 19e 469() 072 898() 947() 1000() (a) 1000() 1000() 1000
Sig (2-tailed) 18a 000 000 000 000 546 000 000 000 18b 000 510 276 065 508 033 781 611 18c 000 510 000 000 377 000 000 000 18d 000 276 000 000 000 000 000 19a 000 065 000 000 000 000 000 000 19b 546 508 377 000 000 491 19c 000 033 000 000 000 000 000 000 19d 000 781 000 000 000 491 000 000 19e 000 611 000 000 000 000 000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
68
Infrastructure Facilities in the APMC Yard
Efficient marketing infrastructure such as wholesale retail and assembly
markets and storage facilities is essential for costndasheffective marketing to minimize
post harvest losses and to reduce health risks Markets play an important role in rural
development income generation food security developing rural market linkages and
gender issues Planners need to be aware of how to design markets that meet a
communityrsquos social and economic needs and how to choose a suitable site for a new
market In many cases sites are chosen that are inappropriate and result in under use
or even no use of the infrastructure constructed It is also not sufficient just to build a
market attention needs to be paid to how that market will be managed operated and
maintained In most cases where market improvements were only aimed at
infrastructure upgrading and did not guarantee maintenance and management most
failed within a few years The details of the availability of infrastructure and farmers
opinion is shown in the following tables
69
Table-328
Infrastructure Facilities in the APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
Available Not Available Available Not
Available Available Not Available Available Not
Available Available Not Available Available Not
available Total
Transport 32 18 35 12 36 13 39 13 42 10 184 (7360)
66 (2640)
250 (100)
Cold storage 02 48 02 45 01 48 03 49 06 46 14 (560)
236 (9440)
250 (100)
Storage 35 15 38 09 36 13 37 15 40 12 186 (7440)
64 (2560)
250 (100)
Processing 30 20 35 12 38 11 41 11 38 14 182 (7280)
68 (2720)
250 (100)
Grading 28 22 40 07 41 08 40 12 37 15 186 (7440)
64 (2560)
250 (100)
Weighment 45 05 42 05 41 08 45 07 44 08 217 (8680)
33 (1320)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
70
Table-329
Satisfaction of Infrastructure Facilities in APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
S NS T S NS T S NS T S NS T S NS T S NS T
Transport 30 20 50 31 16 49 35 14 42 34 18 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Cold storage 01 49 50 - 47 47 - 49 49 01 51 52 02 50 52 04 (160)
246 (9840)
250 (100)
Storage 32 18 50 29 18 47 27 22 49 33 19 52 38 14 52 159 (6360)
91 (3640)
250 (100)
Processing 25 25 50 28 19 47 31 18 49 38 14 52 35 17 52 157 (6280)
93 (3720)
250 (100)
Grading 22 28 50 35 12 47 36 13 49 37 15 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Weighment 41 09 50 36 11 47 40 09 49 42 10 52 42 10 52 201 (8040)
49 (1960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total S ndash Satisfied NS ndash Not Satisfied T ndash Total
71
Defects in Weighing
As a rule when produce enters the market every agricultural produce has to
be weighed in the presence of the licensed weighmen and the receipt for weighment
has to be given to the farmer But even this system has certain defects as follows
Meager number of weighmen
Time of weighment of the produce
Old weighment equipments
The details of weighing practices in the APMC yard and the farmer
respondents opinion is shown in the following table
Table-330
Causes of Defects in Weighing
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Absence of licenced weigh man
20 19 19 18 19 95 (3800)
2 Under weighting 25 22 24 26 25 122 (4880)
3 Favouring for buyer
05 03 02 03 03 16 (640)
4 Faulty weights 00 02 01 02 02 07 280)
5 Faulty weight machineries
00 02 03 03 02 10 (400)
6 Others 00 00 00 00 01 01 (040)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Farmer respondents were identified under weighing was followed by the
absence of licensed weigh men and faulty weigh machines
72
Table-331
Importance of Grading of Produce
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Easy marketing 18 (3600)
17 (3617)
19 (3877)
20 (3846)
21 (4038)
95 (3800)
2 Reduction of cost 05 (1000)
03 (638)
02 (408)
02 (384)
03 (576)
15 (600)
3 Higher prices 05 (1000)
02 (425)
08 (1632)
10 (1923)
07 (1346)
32 (128)
4 Encourage competition
20 (4000)
18 (3829)
15 (3061)
19 (3653)
20 (3846)
92 (3680)
5 Easy to get finance 02 (400)
07 (1489)
05 (1020)
01 (192)
01 (192)
16 (640)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Processing of Produce
In agriculture marketing process was not an important function The most of
the commodities were selling in their original form But in modern age with change
in the tastes and preferences of the people and with the introduction of new
technology like refrigerator milling and banking of food grains the consumers
demand for processed goods has increased So in the modern system of marketing the
processing has become a most important function of the marketing
By processing we mean the change of the form of the product before its
consumption The processing of the agricultural products is having the advantages
such as add the value in the product converts into edible form preservation for longer
period use of surplus food less cost of production wide extent of the market and
generation of employment The study about the opinion of farmer respondents
towards the importance of processing in agriculture marketing was conducted and the
result is shown in the below Table 332
73
Table-332
Importance of Processing of Produce
Sl No
Particulars Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Add the value 45 (9000)
43 (9149)
45 (9184)
47 (9038)
47 (9038)
227 (9080)
2 Preservation for longer period
38 (7600)
36 (7660)
37 (7551)
40 (7692)
39 (7500)
190 (760)
3 Less cost of production
10 (1000)
09 (1915)
09 (1837)
10 (1923)
10 (1923)
48 (1920)
4 Wide extent of the marketing
03 (600)
03 (638)
03 (612)
03 (576)
04 (769)
16 (640)
5 Use of surplus food 01 (200)
- 01 (204)
01 (192)
01 (192)
04 (160)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The Table 332 reveals that the importance of processing of agriculture
producing in marketing more than 90 percent of farmer respondents are fully agreed
that processing definitely going to add the value to the agriculture producing in
marketing At the same time 76 percent of sample group are favoured that processing
helps in preservation of agriculture produce for longer period and 1920 percent and
640 percent of farmer respondents are opined that processing of agriculture produce
is important for less cost of production and wide extent of the marketing respectively
Only a minor percent ie 160 supported the processing helps to use of surplus food
From the above analysis it can be said that processing not only helps to farmers but
also to buyer of agriculture produce in many ways
74
Satisfaction towards Insurance Facilities
Table-333
Level of Satisfaction of Insurance Facilities
Sl No Satisfaction Level Agriculture Insurance
Total Insured Non-Insured
1 Satisfied 238 (9917)
02 (083)
240 (9600)
2 Unsatisfied 10 (10000)
- 10 (400)
Total 248 (9920)
02 (080)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Finance Requirements
According to Pyle ldquoMoney or credit is the lubricant that facilitates the
marketing machinerdquo there can be obstacles in performing various activities in case
there are inadequate funds to meet the expenditure involved in these functions The
biggest need of finance is to purchase the stock of agriculture produce and to meet the
agriculture expenses for farmers In the agricultural marketing the finance is having
more importance because of the nature of agricultural marketing The production is
seasonal and there is rush in the market at the time of harvest Huge amount is
required to farmers to meet fertilizers and pesticides expenses and to buyer for the
purchase of stock to get it stored and for its processing So the finance is required to
be arranged either by the owned fund or by taking loan Though the rate of interest
adds in the price of the commodity and the persons who is making this expenditure
realizes it as the reward of the function performed by him The researcher has
undertaken the study of finance facilities at the APMC yard other sources of credit
other than banking the factors affects the requirements of finance by agricultural
marketing firm as well as farmers and the interest paid on the credit the results of the
farmers opinion was collected and shown in the Table 334 335 336 and 337
75
Table-334
Satisfaction of Banking Facilities at APMC
Sl No Level of Satisfaction Availability of Banking Facilities
Total Available Not Available
1 Satisfied - 15 (602)
15 (600)
2 Unsatisfied 01 (10000)
234 (9398)
235 (9400)
Total 01 (040)
249 (9960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total The Table 334 depicts the farmerrsquos responses towards the availability of
banking facilities in the APMC yard and their satisfaction towards such services in the
market yard In all the APMCs of Gulbarga division which covers five districts only
6 of the respondents were satisfied and rest of 940 percent of farmers respondents
were unsatisfied for the non-availability of banking facilities in the yard
Table-335
Other Sources of Credit Facilities
Sl No Particulars Districts Total Gulbarga Bidar Koppal Raichur Bellary 1 Whole seller 09
(1800) 08
(1702) 08
(1632) 10
(1923) 10
(1923) 45
(1800) 2 Retail seller 05
(1000) 04
(851) 05
(1020) 05
(961) 04
(769) 23
(920) 3 Commission agents 32
(6400) 31
(6595) 32
(6531) 34
(6538) 33
(6346) 162
(6480) 4 Broker 03
(600) 03
(638) 03
(612) 03
(576) 03
(576) 15
(600) 5 Others 01
(200) 01
(212) 01
(204) 00
(000) 02
(385) 05
(200) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total The researcher has also attempted to collect the opinion from the farmers
about the availability of other sources of credit facilities to the buyer of agriculture
produce and to farmers The other sources of credit to farmers other than bank
includes wholesaler retailer commission agents and brokers Majority of farmer
76
respondents ie 6480 percent of sample size said that commission agents are most
easy source of credit followed by whole seller ie 18 percent and retailer seller ie
920 and brokers only 6 percent
Ranking the Factors of Finance Requirements
As the financial requirements in the agricultural marketing can play a big role
as stimulation of agricultural production and to promote the interest of agricultural
community There are two types of finance requirements one fixed capital which is
required for the building furniture office instruments etc to carry on the business of
agricultural market Second requirement variable capital this is required to purchase
of stocks to make the payment of transportation labourers bills and refreshments
etc The researcher during his field study has attempted to point out and tried to rank
the main factors for finance requirements The data so collected is shown in the Table
336
Table-336
Ranking the factors of finance requirements
Sl No
Finance Requirements
Ranking Finance Requirements Total
First Second Third Fourth Fifth
1 Nature of crop 123 (4920)
50 (2000)
35 (1400)
23 (920)
19 (760)
250 (100)
2 Terms of payments 84 (3360)
16 (640)
31 (1240)
105 (4200)
14 (560)
250 (100)
3 Economic conditions 09 (360)
132 (5280)
63 (2520)
25 (1000)
21 (840)
250 (100)
4 Fluctuations of prices 15 (600)
26 (1040)
104 (4160)
47 (1880)
58 (2320)
250 (100)
5 Volume of crop 19 (760)
26 (1040)
17 (680)
50 (2000)
138 (5520)
250 (100)
Total 250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
77
The above Table 336 shows that the ranking of finance requirements by the
farmer respondents Out of 250 sample respondents 123 farmers respondents ranked
first the nature of crop which determines the quantum of finance requirements
followed by 5280 percent towards economic conditions as ranked second and
fluctuation of prices ie 41 percent as third and terms of payment as fourth position
followed by volume of crop as fifth
Interest Paid on Bank Credit
Table-337
Interest Paid on Bank Credit
Sl No Particulars Interest Paid on Bank Credit
Total Very low Very high Average
1 Gulbarga 30 (6000)
12 (2400)
08 (1600)
50 (2000)
2 Bidar 27 (5745)
11 (2340)
07 (1915)
47 (1800)
3 Koppal 29 (5918)
12 (2449)
07 (1428)
49 (1920)
4 Raichur 32 (6154)
12 (2307)
08 (1538)
52 (2080)
5 Bellary 32 (6154)
13 (2500)
10 (1923)
52 (2080)
Total 150 (6000)
60 (2400)
40 (1600)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Services of Commission Agents
Commission agents are the main marketing functionaries operating in the
APMC yard among the other market participants They provide the necessary link in
the marketing of agricultural produce to the farmers They supply the necessary data
and useful assistance in the marketing of agricultural produce of the farmers They
help farmers in availing the services like assembling storing grading and finance etc
Hence the farmers are provided with channel of distribution by the APMC by
78
licensing these intermediaries and regulating their services The farmer respondents
were approached for obtaining their views about the quality of services covering
defects with commission agents commission paid to commission agents and their
satisfaction with commission agents The following Tables ie 338 339 and 340
gives the results of the survey data
During the field work by the researcher investigated to identify the defects
with commission agents from the farmers The data so collected are compiled and
shown in the Table 338 The major defect with the commission agent was they are
more favourable to the buyer which constitutes 68 percent of sample size 20 percent
of farmers respondents were pointed out the misguide by the commission agent to
farmers at the time of sale is the second major defects followed by high commission 8
percent lack of knowledge 320 and other defects constitutes 080 percent More than
70 percent of farmer respondents are taken the help of commission agents in selling
their agricultural produce out of that 5960 percent of farmers only satisfied with
services given by commission agents The 74 farmer respondents which constitutes
2960 percent of total sample group neither obtaining any form assistance in
marketing their produce and nor satisfied with services given by them
Table-338
Satisfaction towards Commission Agents
Sl No Level of Satisfaction Service from Commission Agents
Total Yes No
1 Satisfied 104 (5910)
45 (6081)
149 (5960)
2 Unsatisfied 72 (4090)
29 (3919)
101 (4040)
Total 176 (7040)
74 (2960)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
79
Table-339
Defects with Commission Agents
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Favoruable
to buyer 34
(6800) 32
(6808) 33
(6735) 35
(6730) 36
(6923) 170
(6800) 2 High
commission 04
(800) 04
(851) 04
(816) 05
(962) 03
(576) 20
(800) 3 Misguide 10
(1000) 09
(1915) 10
(2041) 10
(1923) 11
(2115) 50
(2000) 4 Lack of
knowledge 02
(400) 02
(425) 02
(408) 02
(385) 00
(000) 08
(320) 5 Others 00
(000) 00
(000) 00
(000) 01
(192) 01
(192) 02
(080) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
Table-340
Commission Paid to Agents
Sl No Particulars Commission Paid to Agents
Total Very Low Very High Average
1 Gulbarga 06 (1200)
18 (3600)
26 (5200)
50 (2000)
2 Bidar 08 (1702)
17 (3617)
22 (4680)
47 (1800)
3 Koppal 06 (1224)
17 (3469)
25 (5102)
49 (1920)
4 Raichur 06 (1153)
19 (3654)
27 (5192)
52 (2080)
5 Bellary 04 (769)
19 (3654)
30 (5769)
52 (2080)
Total 30 (1200)
90 (3600)
130 (5200)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
The responses of the farmers regarding the charges of the commission by the
commission agents clearly indicates that the commission agents charges excess
80
amount well above prescribed rate this can be found from the dissatisfaction of
farmers ie 36 percent of sample size Changing more than the prescribed by the act
by the commission agent is one of the marketing malpractices prevalent in the APMC
In general strict vigilance over such marketing malpractice is needed to safeguard the
interest of the farmers It is unfortunate to learn that a very small number of ie 12
percent of the sample group farmers have complained against the high commission
charged by the commission agents At the same time 52 percent ie more than one
half of the total sample size positively favoured towards the commission charges by
the commission agents saying that commission paid is average neither to high or too
low
Table-341
Cost of Cooli to Hamals
Sl No Particulars
Cooli to Hamals Total
Very High Very Low Average 1 Gulbarga 07
(200) 09
(1800) 40
(8000) 50
(2000) 2 Bidar 02
(425) 08
(1702) 37
(7872) 47
(1800) 3 Koppal 02
(408) 08
(1633) 39
(7959) 49
(1920) 4 Raichur 02
(385) 09
(1730) 41
(7885) 52
(2080) 5 Bellary 01
(192) 09
(1730) 42
(8076) 52
(2080) Total 08
(320) 43
(1720) 199
(7960) 250
(10000) Source Field survey Note Figures in bracket indicates percentage to total Table 341 depicts the cost of cooli paid to hamal in the market yard Hamals
are working in the APMC for loading and unloading of agriculture produce Farmer
respondents were satisfied with the cost of cooli to hamal it constitute 7960 percent
of total sample size only 320 percent of total told that hamals are charged high cooli
and 1720 percent of them totally satisfied with the charges paid to hamals Table 341
gives the level of satisfaction towards the services given by hamals Large number of
farmers are partly satisfied which constitute 6080 percent 376 percent fully satisfied
81
and 240 percent not at satisfied It is suggestible to the APMC to take measures to
control the hamals and their services to farmers
Level of Satisfaction with Hamals Services
Table-342
Level of Satisfaction with Hamals Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (3800)
30 (6000)
01 (200)
50 (2000)
2 Bidar 17 (3617)
29 (6170)
01 (213)
47 (1800)
3 Koppal 18 (3673)
28 (5714)
03 (612)
49 (1920)
4 Raichur 19 (3654)
32 (6153)
01 (192)
52 (2080)
5 Bellary 21 (4038)
33 (5962)
00 (000)
52 (2080)
Total 94 (376)
150 (6080)
06 (240)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Cooperation from APMC Officials
Along with the services from different market functionaries to farmers
cooperation from the APMC officials is also very important to farmers to boost their
psychological factors to bring their agricultural produce to APMC yard for sale A
good cooperation definitely creates belongingness in the minds of farmers The data
was collected through questionnaire about the level of satisfaction with the
cooperation from APMC officials and defects with them The information gathered is
shown in Table 343 and 344
82
Table-343
Level of Satisfaction with APMC Officials Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (2021)
08 (2105)
23 (1949)
50 (2000)
2 Bidar 17 (1809)
06 (1579)
24 (2033)
47 (1880)
3 Koppal 16 (2021)
05 (1315)
28 (2373)
49 (1960)
4 Raichur 20 (2127)
10 (2632)
22 (1864)
52 (2080)
5 Bellary 22 (2340)
09 (2368)
21 (1780)
52 (2080)
Total 94 (3760)
38 (1520)
118 (4720)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-344
Defects with APMC Officials
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Non-
cooperative 36
(200) 40
(2222) 40
(2222) 45
(250) 19
(1055) 180
(7200) 2 Favourable to
buyer 42
(1953) 43
(2000) 32
(1488) 41
(1907) 57
(2651) 215
(8600) 3 Laziness 18
(200) 17
(1888) 15
(1667) 20
(2222) 20
(2222) 90
(3600) 4 Expect money 08
(200) 06
(150) 05
(1250) 09
(2250) 12
(300) 40
(1600) 5 Improper
market data 14
(200) 13
(1857) 12
(1714) 14
(200) 17
(2429) 70
(2800) 6 Others - - 03
(300) 04
(400) 03
(300) 10
(400) Total 50
(2000) 47
(1880) 49
(1960) 52
(2080) 52
(2080) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
83
Malpractice Experience at APMC Yard
The major malpractices faced by the farmer respondents in the selected
APMCs while selling their agricultural produce in the study area is presented in the
Table 345
Table-345
Farmers Malpractice Experience at APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Inadequate grading
38 40 39 32 46 195
2 Inadequate packing
32 28 17 31 46 137
3 Unfavourable weightment
44 43 41 47 46 221
4 Excess samples 18 15 20 14 15 82
5 Inadequate supervision
21 23 28 22 25 119
6 Excess market charges
36 32 38 28 36 170
7 More favourable to buyer
41 42 43 48 49 223
8 Others 05 14 13 09 17 56
Total 50 (200)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The highest percentage of farmer respondents (221) are of the opinion that
unfavourable weighment in the sale is the major malpractice experienced by them
The second highest percentage of farmer respondents who are of the opinion that in
adequate grading by the buyer while selling their produce The third major
malpractice being taking excess market charges by commission agents as arbitrary
deduction in the sale amount of produce The next major malpractice (137) opined by
farmer respondents is regarding inadequate packaging to sale produce The other most
84
dominating and prevailing malpractice was found by the researcher is more
favourable to the buyer and improper weighment of their produce (223) in the market
yard For of respondents specified other malpractices as high wastages and non
payment of amount etc Inspite of all these malpractices affecting of the farmers it is
quite essential for all the APMCs in the study area should take some connective
measures to eliminate such malpractice Since the main purpose of the APMCs is to
regulate all marketing activities In the field study the steps taken by the APMC to
eliminate malpractice as expressed their views by the farmer respondents were
recorded very few percent of farmer respondents are of the opinion that APMC is
excising supervision over the malpractice regarding to selling and pricing the
commodity They also satisfied with the intervention of APMC officials to eliminate
malpractices in weighment grading activities but the farmer respondents were not at
satisfied with the APMC for not taking any steps to eliminate malpractices in payment
of sale price by the buyer to farmers
Disputes in APMC
So many disputes can arise among the farmers traders and middlemen over
the quality the grade the deductions and payment settlement etc The market
committees settles such disputes so the farmers as well as middlemen may not waste
their time and marketing in the court
During the field study the researcher has investigated to find out the opinion
of the farmers for main causes of disputes in the APMC yard The compiled
information is presented in the following Table 346
85
Table-346
Causes for Disputes in APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Price of produce
23 (2054)
20 (1786)
21 (1875)
24 (2143)
24 (2143)
112 (4480)
2 Quality of produce
10 (1786)
08 (1429)
05 (892)
11 (1964)
22 (3928)
56 (2240)
3 Weightment 30 (1974)
31 (2039)
32 (2105)
28 (1842)
31 (2039
52 (6080)
4 Timing of payment
37 (1989)
38 (2043)
40 (2150)
32 (1720)
39 (2096)
186 (7440)
5 Grading of produce
08 (1509)
10 (1887)
07 (1320)
11 (2075)
17 (3207)
53 (2120)
6 Warehousing 05 (1250)
08 (200)
07 (1750)
06 (1500)
14 (350)
40 (1600)
7 Others 18 (200)
15 (1667)
24 (2667)
25 (2777)
08 (888)
90 (3600)
Total 50 (2000)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Majority of respondents have disputes with commission agents as well as the
traders and few of them have disputes with hamals From the Table 346 it could be
seen that one of the major reasons for dispute being untimely payment (Delay in
payment) to farmer ie seller of agricultural produce Nearly more than half of the
respondents (7440) have opined that they are not being paid as per the provisions of
Act ie immediately after the sale of produce The next major causes of dispute being
weighment of produce Marketing three fifth of the respondents are not happy with
the weighment system prevailing in the market The third major causes of disputes is
being price of the produce About one third of the respondents (4480) have opined as
determination of the price of produce is also one of the major factor for the disputes
The other reasons of the disputes in the APMC yard in the Gulbarga division was
86
found are regarding quality of produce (2240) warehousing (1600) as determined by
farmers Very few of respondents feel that there is no reasons for disputes in the
APMC yards
As far as settlement of disputes are concerned farmer respondents are
preferred for settlement of disputes with traders at the level of secretary of the APMC
A part from that they also some time preferred to solve disputes through the dispute
committee where disputes are settled by arbitration Only 5 percent of the farmer
respondents from the sample size are of the opinion that disputes are settled by the
court of law In Gulbarga division of APMC maximum disputes were settled at
secretary level it calls for efficient secretaries in APMCs
Farmers respondents were also asked about the level of satisfaction in
settlement of disputes Nearly more than 40 percent of respondents are satisfied with
settlement of disputes However 30 percent of respondents are not fully satisfied with
settlement of disputes rest of the sample group were not given any response in this
regard
Quality of Services in APMC Yard
The sale of the agricultural produces by the farmers in the APMC yard
depends on the various services and their quality provided by the APMCs to the
farmers It is the true that if the services provided by APMCs to farmers are very
good large number of farmers bring their produce to the APMC market for sale
instead of open markets This definitely attracts more number of traders and market
functionaries to the market This results an impetus in getting not only good price for
their produce but also a competitive cost to the traders The farmer respondents were
asked to assess the quality of market services provided by the APMCs the responses
of respondents who expressed their level of satisfaction and dissatisfaction to different
facilities provided is presented in the following table
87
Table-347
Quality of Services at APMC
Quality of Services Name of APMC
Total Gulbarga Bidar Koppal Raichur Bellary
Very good 04 (200)
04 (200)
04 (200)
03 (150)
05 (250)
20 (80)
Good 41 (2930)
38 (1881)
40 (1980)
42 (2079)
41 (2029)
202 (808)
Bad 02 (250)
01 (1250)
01 (1250)
02 (250)
02 (250)
08 (320)
Very bad 01 (200)
01 (200)
02 (200)
01 (200)
-
05 (20)
Either bad good 02 (1333)
03 (200)
02 (1333)
04 (2667)
04 (2667)
15 (600)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total It could be observed from the above Table 347 that 8080 percent of farmer
respondents are of the opinion that the quantity of services provided by the APMC is
good 320 percent of total sample size of farmer respondents are if the opinion that it
is bad and 80 percent of the respondents are of the opinion that it is very good It is
to say satisfy that 8880 percent of farmer respondents are of the opinion that the
service provided by APMC is good and above average Hardly 520 percent of the
respondents expressed that the service provided are bad or very bad and 60 percent of
them neither opinioned bad nor good ie they were neutral
88
Table-348
Customary Deduction
Name of the APMCs As per Bye Laws More than Bye Laws Total
Gulbarga 05 (100)
45 (900)
50 (200)
Bidar 04 (851)
43 (9149)
47 (188)
Koppal 05 (1020)
44 (8980)
49 (1960)
Raichur 05 (961)
47 (9039)
52 (2080)
Bellary 07 (1346)
45 (8654)
52 (2080)
Total 26 (1040)
224 (8960)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
The study was conducted to know the farmers responses towards the
customary deductions from the sale of agricultural produce Sample groups were
given option whether customary deductions were as per bye laws or more than bye
laws Large number of farmer ie more than 89 of sample size were strongly
opinioned that customary deductions were not according
89
CHAPTER-IV PERFORMANCE EVALUATION OF APMCs
All the regulated markets working in Karnataka are distinct organization
created under the special clause with the objective of bringing the socio-economic
changes not only in the agricultural marketing sector but also economy as a whole
The existence of regulated markets creates an environment that is more favourable to
the existence of competitive conditions and to bring about the harmonious relations
between the farmers and market functionaries These organizations have the special
features as compared with the other organizations so the service of funds of regulated
markets and uses of the regulated market would be different keeping this the
following para attempted to analyze their financial performance in terms of their
profit position and growth in profit income position expenditure position and other
relevant financial aspects
A) Sources of Income of Regulated Markets
As far as regulated market are concerned they are non-profit or non-trading
organizations established with the objective of providing marketing services facilities
and other amenities for the producer of agricultural products who is in need of these
services for the facilitation of the sale of their produce To ensure smooth and
efficient services to farmer seller APMCs are required to own their establishments
and staff such as commission agent trader hamal and others who are carrying out
various markets functions ie grading processing weighment etc Hence APMCs
need finance to meet their administrative and management expenses of a recurring
and non-recurring nature of expenses The basic infrastructures are needed in the
provision of amenities and other facilities requiring capital investment for creating
these facilities in the market yard Establishment of infrastructure facilities not only
enough but also they need to be maintained the SC maintenance expenses is of
recurring in nature APMCs also need to have the permanent staff to do all the
functions in the market yard involves the fixed expenditure in the form of salaries
wages etc This necessitates the APMCs to have the permanent and regular sources of
income to meet all these regular expenses of fixed in nature and some portion of
recurring expenditure
90
APMCs are also required to meet the recurring expenditure such as
maintenance of road expenditure building godowns market yard vehicles and
machinery After the initial investment in these facilities from the borrowed capital
APMCs need to make payment of interest on loans tax charges payment of salaries
printing and stationery etc are to be paid periodically The different sources of
incomes through which the APMCs are earning revenue are shown in the following
parts along with the various expenditures by the APMC in the market yard
I) Market Fees
The APMCs Act and other laws relating to the agricultural marketing has
authorized all the regulated markets to levy and collect the market fees on the
agricultural produce bought for sales in the market yard The collection of the market
fees is the major source of income to the market committee and also the major source
of finance which determines to a very great extent the pace of development of market
yards both in terms of facilities and infrastructure
In traditional agricultural marketing market fees were collected on the basis of
the quantity bought for sale but these days the Acts and rules have been amended
more suitably giving maximum power to market committee to collect market fees on
the advalorem basis The chief items of the marketing charges are the market fee that
should be paid to the market committee the weighment fee commission brokerage
hamali charges and grading charges etc
In Karnataka in the beginning the market fees imposed on the buyers at the
rate not exceeding 30 paise per Rs100- of produce bought The APMC Act was
amended in 1973 August by an ordinance and the market fee to be levied was raised
to one rupees and the ordinance was however replaced by an act The rate of market
fees on every arrivals of cattle is Rs5- for each animal and rupee one for every sheep
and goats
The act also given some provisions for cooperative society doing business
within the market yard market fees shall be imposed and collected at the rate of 80
paisa per Rs100- of produce bought whereas in case of any other traders it is at the
91
rate of one percent on their total purchases ie one rupees per 1000 rupees This may
be considered as the cause for slow growth of agricultural marketing in Karnataka in
general and Gulbarga division in particular
II) License Fees
The various market functionaries who are operating in the regulated markets
of the state are the commission agents trader broker store keeper grader stockiest
importer exporter and any other functionary are imposed licence fee by the market
committee The license fee is the second main source of income to regulated market
This fee is collected in lum-sum as specified in the APMC act annually from each
applicant The total sum of income from license fees depends on the number of
market functionaries and the rate of license fee for various categories of market
functionaries
APMCs are authorized by KAPM (I) Act 1966 to impose and collect the
license fees from each category of market functionaries The maximum license fee
that could be levied under the act by the market committee on different types of
functionaries are Rs200 from traders and commission agents Rs100- each from
broker processor exporter importer ginner and crusher Rs25- from retail trader
and a nominal amount of Rupees 5 from hamal or cart man
III) Penalty
Penalties for evasion of payment of fee are imposed by the market
committees Section 65 (A) or KAPM Act 1966 empowers the regulated market
committee to punish with fine of not less than 12 percent But this penalty should not
exceed 30 percent on the amount of market fee If the penalty is not paid within the
specified time under bye laws made under section 65 of the act in it desecration also
recover similarly and pay over to the market committee or the board such amount
IV) Other Income Sources
APMCs collect market fees license fees and penalty from defaulters the
market committees are also generating the incomes from the following sources
a) Income from own properties
b) Income from deposits
92
c) Sale of books and forms
d) Sale of grass and cow dung
e) Fire fighter rent
f) Transfer fees and registration fees
g) Sale of plots etc
1) Income Position of Selected Regulated Markets
The income information of 15 APMCs ie three APMCs from each districts
in Gulbarga division were collected by the researcher from their annual reports and
other financial statements The component of the various income sources and their
respective figures provide a good insight to their financial performance The trends in
the growth of total incomes and individual incomes over a five year study period ie
2009-10 to 2013-14 helps in understanding the performance of all the selected
APMCs
I) Income Position of Gulbarga APMC
The income position of selected APMCs in Gulbarga district over the five
years study period are shown in the Table 41 below
Table 41 reveals a steady growth in income to the Gulbarga APMC in all the
years of study Conspicuously the total income from all sources to APMC was
Rs21976lakhs in 2009-10 while it was increased to 87054 lakhs in 2013-14 with a
annual aggregate growth of 5922 percent over the previous years When we look at
the figures of market fees holds the lions share in contributing income which range
between 8605percent to 9294 percent The same fact was also found in the APMC
Shorapur and APMC Shahapur In APMC Shorapur the percentage of market fees in
total income was in between 8420 percent to 9745 percent In case of Shahapur
APMC it ranges between lowest 6422 percent to highest of 6610 percent The other
major sources from where the APMC generated income were license fees levy and
licence fee penalty and other incomes generated was in total percentage fall between
906 percentage to 1995 percent in Gulbarga APMC In Shahapur and Shorapur
APMC penalty income was negligible it was Rs 031 lakhs to Rs 891 lakhs in
Shorapur APMC and Rs 126 lakhs to Rs 563 lakhs in Shahapur APMC during the
period under study
93
Table-41
Statement of Income of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 25106
(8605) 27111 (8763)
39233 (9155)
68713 (9294)
79170 (9094)
2 License Fees 321 (110)
487 (157)
561 (130)
664 (089)
733 (084)
3 Levy and License Fee 2069 (709)
1822 (58)
1981 (462)
2055 (277)
2382 (273)
4 Penalty 1180 (404)
642 (207)
519 (121)
625 (084)
1177 (135)
5 Interest on Deposits and other Income
500 (172)
574 (293)
558 (132)
1575 (256)
3592 (414)
Total 21976 (100)
30936 (100)
42852 (100)
73932 (100)
87054 (100)
Sl No APMC Shorapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 6012
(9039) 5647
(9281) 9607
(9745) 11365 (9079)
18674 (8420)
2 License Fees 104 (156)
106 (174)
078 (079)
117 (093)
117 (052)
3 Levy and License Fee 128 (192)
120 (197)
054 (054)
338 (270)
486 (219)
4 Penalty 200 (300)
101 (166)
031 (031)
206 (164)
891 (401)
5 Interest on Deposits and other Income
207 (313)
110 (182)
088 (011)
491 (394)
2008 (908)
Total 6651 (100)
6084 (100)
9858 (100)
12517 (100)
22176 (100)
Sl No APMC Shahapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1436
(8422) 1563
(7854) 1722
(7163) 3888
(7793) 5812
(6610) 2 License Fees 080
(469) 114
(572) 219
(910) 250
(501) 679
(772) 3 Levy and License Fee 034
(199) 042
(211) 0158 (657)
269 (539)
1071 (1218)
4 Penalty 126 (739)
183 (919)
196 (815)
204 (408)
563 (640)
5 Interest on Deposits and other Income
029 (171)
088 (444)
109 (455)
378 (759)
667 (76)
Total 1705 (100)
1990 (100)
2404 (100)
4989 (100)
8792 (100)
Source Annual reports of APMC Gulbarga 2009-10 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
94
It can be concluded from the above three APMCs in Gulbarga district that
Gulbarga APMC leading first in generating income Shorapur APMC is in second
position followed by APMC Shahapur
II) Income Position of Bidar APMC
Three APMCs from the Bidar district were selected for the comparative study
The income level of these three APMCs for the five years research period is presented
in the Table 42
The income generated by the APMC Bidar was lower in the beginning years
of research period ie it was Rs 18275lakhs in 2009-10 Rs16443 lakhs in 2010-11
and Rs17575 lakhs in 2011-12 During end years of research period it increased to
Rs31805 lakhs in 2012-13 and Rs 30420 lakhs in 2013-14 A critical look of the
figures in all the years of selected APMCs in Bidar district indicates that market fees
was the major component of total income of APMC which comprises an approximate
of 7910 percent in lowest side and 9554 percent in highest side Lowest market
fees percentage was recorded in APMC Aurad during 2012-13 and the highest
percentage was registered in 2013-14 in AMPC Bidar
95
Table-42
Statement of Income of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 16744
(9162) 15043 (9148)
15593 (8870)
29256 (9198)
29065 (9554)
2 License Fees 486 (265)
363 (220)
436 (248)
688 (216)
577 (1089)
3 Levy and License Fee 320 (175)
239 (145)
334 (190)
477 (149)
338 (111)
4 Penalty 600 (328)
466 (283)
515 (293)
719 (226)
202 (066)
5 Interest on Deposits and other Income
125 (070)
332 (204)
697 (397)
665 (211)
238 (08)
Total 18275 (100)
16443 (100)
17575 (100)
31805 (100)
30420 (100)
Sl No APMC Bhalki 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1424
(8431) 1232
(8999) 2423
(8846) 3596
(8304) 5871
(8544) 2 License Fees 096
(568) 081
(591) 163
(595) 293
(676) 306
(445) 3 Levy and License Fee 123
(728) 021
(153) 043
(156) 189
(436) 214
(311) 4 Penalty 022
(130) 017
(124) 034
(124) 138
(318) 222
(323) 5 Interest on Deposits and other
Income 024
(143) 018
(133) 076
(279) 114
(266) 258
(377)
Total 1689 (100)
1369 (100)
2739 (100)
4330 (100)
6871 (100)
Sl No APMC Aurad 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 903
(8014) 886
(8478) 887
(8431) 1333
(7910) 1617
(7922) 2 License Fees 093
(825) 081
(775) 083
(788) 123
(729) 132
(646) 3 Levy and License Fee 055
(488) 054
(516) 052
(494) 118
(700) 181
(886) 4 Penalty 006
(053) 004
(038) 012
(114) 051
(302) 050
(241) 5 Interest on Deposits and other
Income 069
(615) 020
(193) 018
(173) 060
(359) 061
(302)
Total 1126 (100)
1045 (100)
1052 (100)
1685 (100)
2041 (100)
Sources Annual reports of APMCs Bidar for 2003- 04 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
96
The other major sources contributing to the income of the APMCs in Bidar
district were license fee which was 646 percent to 625 percent in Aurad APMC
445 percent to 676 percent in APMC Bhalki and 216 percent to 1089 percent in
Bidar district APMCs The total income of Bhalki APMC was not constantly
increased during the study period It was fell to Rs 1369 lakhs in 2010-11 but it
increased during last three years of research period reached to Rs 6871 lakhs in
2013-14 As far as APMC Aurad is concerned it was inceased only in 2012-13 and
2013-14 As far as APMC Aurad is concerned it was increased only in 2012-13 and
2013-14 It was fall in 2010-11 and 2011-12 ie Rs 1045 lakhs and Rs 1052 lakhs
respectively It can be seen in table 42
III) Income Position of Koppal APMC
The statement of income of selected APMCs in Koppal district for the five
years ie 2009-10 to 2013-14 are given in table 43 The income of Koppal APMC
Gangavati APMC and Kustagi APMC were collected and analyzed in the following
paragraphs
The income generation in each of the five years by the APMCs selected as
sample in Koppal district was in APMC Koppal it was between Rs 3709 lakhs in
2009-10 to Rs 11032 lakhs in 2013-14 In APMC Gangavati a recorded
performance was found in earning incomes ie Rs 51692 lakhs in 2009-10 increased
rapidly to Rs91123 lakhs in 2013-14 APMC Kustagi was found to be least
performance in generation of the income The highest income was colleted by it was
Rs 3346 lakhs in 2013-14 and lowest was found in 2009-10 ie Rs 1341 The
annual aggregate growth in income generation by Koppal APMC was 3948 percent
per year The overall growth in APMC Gangavati income was 7628 percent over the
beginning year of research period The overall growth of percentage in the income of
APMC Kustagi during the five years study period was 14952 percent
97
Table-43
Statement of Income of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3269
(8813) 4072
(6961) 5675
(9119) 5682
(8775) 10021 (9083)
2 License Fees 090 (242)
110 (188)
101 (162)
097 (149)
106 (096)
3 Levy and License Fee 062 (167)
193 (329)
133 (213)
187 (288)
207 (187)
4 Penalty 104 (280)
211 (360)
146 (234)
178 (271)
255 (231)
5 Interest on Deposits and other Income
184 (498)
1263 (2162)
168 (272)
331 (517)
443 (403)
Total 3709 (100)
5849 (100)
6223 (100)
6475 (100)
11032 (100)
Sl No APMC Gangavati 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 49044
(9487) 67016 (9724)
75834 (9692)
74674 (9363)
84042 (9223)
2 License Fees 236 (045)
287 (042)
311 (039)
303 (038)
569 (062)
3 Levy and License Fee 703 (135)
515 (074)
807 (103)
716 (089)
1038 (114)
4 Penalty 189 (036)
212 (030)
267 (034)
258 (032)
317 (034)
5 Interest on Deposits and other Income
1520 (297)
887 (130)
1020 (142)
3804 (478)
5157 (567)
Total 51692 (100)
68917 (100)
78239 (100)
79755 (100)
91123 (100)
Sl No APMC Kustagi 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1214
(9052) 1234
(9167) 1384
(8216) 2079
(8266) 2516
(7519) 2 License Fees 024
(178) 029
(215) 031
(184) 036
(143) 041
(122) 3 Levy and License Fee 014
(104) 016
(118) 026
(154) 055
(218) 063
(188) 4 Penalty 001
(007) 001
(007) 003
(017) 007
(027) 018
(054) 5 Interest on Deposits and other
Income 088
(659) 066
(493) 240
(1429) 338
(1346) 708
(2117)
Total 1341 (100)
1346 (100)
1684 (100)
2515 (100)
3346 (100)
Sources Annual reports of APMCs Koppal for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
98
The glance at the each income figures with respect to three APMC in Koppal
district reveals that market fees again dominant ie 6961 percent to 9724 percent to
total income of the APMC Other important heads from which the income was
derived were license fee 096 to 242 in Koppal APMC 038 to 062 in
APMC Gangavati and 122 to 215 in APMC Kustagi during the period under
consideration ie 2009-10 to 2013-14 The penalty fees collected by the APMC
Kustagi and APMC Gangavati were almost below one percent to total income and this
was above 2 percent in APMC Koppal A sizeable income ie 498 percent to 2117
percent has also been contributed under the head interest on deposits and other
income The trend in this income was more or less similar during all the years of
research period
IV) Income Position of Raichur APMC
The income position and growth in income position of selected APMCs in
Raichur district was presented in the Table 44 The income was shown for the study
period ie 2009-10 to 2013-14 Riachur is considered to be a commercial street the
volume of business is high as compared to the Lingasugur Sindnoor APMC has
acquired a good position in the Raichur district as compared to other APMC in the
district
Table 44 gives the various incomes acquired by the selected APMC in the
Raichur district Raichur as a commercial centre there would be large number of
market functionaries and large volume of transactions Hence the total income of the
market was obviously quite high (around Rs120202 lakhs annually) During 2009-10
the total income of APMC Raichur was Rs 48932 lakhs APMC Sindnoor was Rs
20629 lakhs and APMC Lingasugur was just Rs 2907 lakhs It was shown an
increasing trend in all the three APMC selected in Raichur district during all the five
years of research period Income was found in the year 2013-14 in the sample APMC
from Raichur district Income from the other sources ie penalty interest on deposits
sale of shops godowns and sale of books and forms were much higher as compared to
the corresponding incomes in the other years of study Such an increase in the total
income was noticed in the Table 44
99
Table-44
Statement of Income of Selected APMCs in Raichur District
(Rs In lakhs)
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 45972
(9395) 55687 (9542)
68293 (9491)
82847 (8275)
106917 (8894)
2 License Fees 314 (064)
326 (056)
335 (046)
336 (033)
347 (028)
3 Levy and License Fee 1218 (248)
1463 (250)
1525 (211)
1540 (153)
1617 (134)
4 Penalty 218 (044)
250 (040)
269 (037)
289 (028)
313 (026)
5 Interest on Deposits and other Income
1210 (249)
630 (110)
1528 (215)
15105 (1511)
11008 (918)
Total 48932 (100)
58356 (100)
71950 (100)
100117 (100)
120202 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 18106
(8776) 21418 (9410)
28650 (9523)
33937 (7914)
45905 (9281)
2 License Fees 212 (102)
209 (091)
238 (079)
226 (052)
258 (052)
3 Levy and License Fee 1029 (498)
658 (1289)
613 (203)
1569 (365)
1292 (261)
4 Penalty 819 (396)
309 (135)
386 (128)
2080 (485)
1108 (224)
5 Interest on Deposits and other Income
464 (228)
166 (075)
197 (067)
5069 (1184)
892 (182)
Total 20629 (100)
22760 (100)
30084 (100)
42881 (100)
49456 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 2016
(6934) 2361
(6367) 3457
(5687) 3702
(5632) 4221
(5582) 2 License Fees 084
(288) 161
(434) 219
(360) 379
(576) 397
(521) 3 Levy and License Fee 493
(1695) 552
(1488) 817
(1344) 871
(1325) 1017
(1344) 4 Penalty 032
(110) 064
(172) 186
(306) 213
(324) 286
(378) 5 Interest on Deposits and
other Income 282
(973) 570
(1539) 1399
(2303) 1408
(2143) 1641
(2172)
Total 2907 (100)
3708 (100)
6078 (100)
6573 (100)
7562 (100)
Sources Annual reports of APMCs Raichur for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
100
In order to see the composition of the total revenue of Raichur Sindnoor and
Lingasugur APMCs the income statement of 2009-10 to 2013-14 was considered A
detailed analysis at the figures in the table 44 indicates that a market fee was the
major contributor to the total income which contributed to the tune of 5582 percent
to 9542 percent The other major sources of revenue to the APMC are interest on
deposits (182 to 2172) Penalty income was contributed average in APMC
Sindnoor moderate in APMC Raichur and minor contribution in APMC Lingasugur
V) Income Position of Bellary APMC
In Bellary district development activities undertaken by the department of
agriculture are about increasing yield of kharif season and other seasons under
irrigation this has naturally increased the market turnover in the Bellary district
APMC The details of the income collected by the sample APMCs in Bellary district
is shown in the Table 45
Table 45 gives the details of an account of income of the APMCs selected
from the Bellary district for the analysis purpose A birdsrsquo eye view of the total
income figures during financial years indicate that the annual average income of the
APMC of Bellary was around Rs 33660 lakhs except during the first three years of
the study period The market fees collected during the study years was also ranged in
between the 8165 in 2009-10 to 8942 in 2013-14 Levy and license fees were
contributed to the extent of 306 to 806 to total income and penalty amount was
just only to 075 to 462 to total incomes
101
Table-45
Statement of Income of Selected APMCs in Bellary District
(Rs In lakhs)
Sl No APMC Bellary 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 13400
(8165) 19398 (8680)
24037 (8514)
35774 (8865)
54510 (8942)
2 License Fees 316 (192)
343 (153)
0392 (139)
399 (098)
346 (056)
3 Levy and License Fee 1323 (806)
1529 (684)
2001 (708)
1912 (473)
1870 (306)
4 Penalty 320 (194)
370 (165)
462 (163)
451 (111)
458 (075)
5 Interest on Deposits and other Income
1052 (643)
706 (318)
1338 (476)
1816 (453)
3775 (621)
Total 16411 (100)
22346 (100)
28230 (100)
40352 (100)
60959 (100)
Sl No APMC Hospet 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3458
(8051) 4335
(7629) 5075
(7924) 5561
(8158) 6811
(7884) 2 License Fees 089
(207) 086
(151) 097
(151) 108
(158) 132
(152) 3 Levy and License Fee 407
(948) 592
(1041) 636
(993) 663
(972) 892
(1032) 4 Penalty 041
(095) 166
(292) 215
(335) 217
(318) 289
(334) 5 Interest on Deposits and
other Income 300
(699) 503
(887) 381
(597) 267 (39)
515 (598)
Total 4295 (100)
5682 (100)
6404 (100)
6816 (100)
8639 (100)
Sl No APMC Siraguppa 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 9054
(9160) 11330 (9131)
25909 (9352)
31838 (9237)
45500 (8285)
2 License Fees 068 (068)
071 (057)
107 (038)
108 (031)
105 (019)
3 Levy and License Fee 363 (367)
341 (274)
491 (177)
492 (142)
535 (097)
4 Penalty 019 (019)
047 (037)
054 (019)
089 (026)
096 (017)
5 Interest on Deposits and other Income
381 (386)
619 (501)
1143 (414)
1939 (564)
8676 (1582)
Total 9885 (100)
12408 (100)
27704 (100)
34468 (100)
54912 (100)
Sources Annual reports of APMCs Bellary for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
102
As far as APMC Hospet and APMC Siraguppa are considered the market fees
collected by these APMCs were became major sources of income followed by levy
and license fees and penalty It is noticed from the same table that APMC Siraguppa
has made history in generation of income during 2012-13 and 2013-14 ie it earned
Rs 34468 lakhs and 54912 lakhs incomes respectively Almost the income was
jumped five times to beginning year income ie 9885 lakhs This clearly carries the
message that APMC Siraguppa was not performed consistency in financial
performance APMC Hospet has ensured stability in the performance but in terms of
amount of collection it was positioned third place in selected APMC in Bellary
district
B) Uses of Incomes by APMCs
1) Market Committee Fund
Incomes received by the market committees in the form of market fees
licence fees and other fees or incomes by way of penalty are used as per the Section
90 of KAPM (R) Act of 1966 All expenditure incurred by the committee under or for
the purposes of this Act shall be defrayed out of the market fund and any surplus
remaining at the close of each market year after such expenditure has been met shall
be credited to the permanent fund of the committee within the three months of the
close of the year and it shall be used only towards incurring the expenditure of
permanent nature such as construction of buildings acquisition of lands or such other
purposes as the Director of Agricultural Marketing may specify
After meeting all such expenditure excess shall be invested in state
cooperative Apex bank or other cooperative banks or government savings banks
account The KAPM (R) Act 1961 clearly defined the purposes for which the market
committee fund may be expanded beyond the above mentioned The fund so created
should be allowed to uses for the purpose laid down in this Act ie providing
facilities in the market areas payment of allowances arrangement of amenities such
as grading and standardization collection and dissemination of market information
settlement of disputes payment of interest on borrowed loans etc
103
II) Contribution to Consolidated Fund
All the marketing committees are bound to contribute some amount to
Karnataka State Agriculture Marketing Board The Director of Agricultural Marketing
estimates the approximate expenditure likely to be incurred by the state government
during a particular financial year an account of salary and other allowances and
election of the members of the market committees Taking all these estimated
expenditures under section 91 of the KAPM Act the Director of Agricultural
Marketing shall by order determine the percentage of gross receipts that every
market committee must and should contribute to the state consolidated fund of the
state
III) Contribution to KSAM Board
Agriculture section 92 of the Karnataka produce marketing Act has made a
provision to create ldquoMarketing Development Fundrdquo and it is managing by the KSAM
board Every market committee is required to contribute every month to the board 5
percent of the gross receipts during the previous calendar month
IV) Other Expenditures
A part from the contribution to market committee fund contribution to state
consolidated fund and contribution to KSAM Board market committees are also
necessary to meet the other expenses regularly such as administration expenses which
includes salary to staffs printing and stationary legal fee advertisement rent
electricity bill and maintenance charges Expenditure to provide amenities to market
functionaries and farmers and other miscellaneous
Expenditure Position of Selected APMCs in Gulbarga District
In this part an effort is made to analyze data relating to the total expenditures
incurred and components of expenditures with respective figures to get the depth of
knowledge about the trends in growth of expenditures over a period of 5 years
between 2009-10 to 2013-14
104
Table-46
Trends in Growth of Expenditure of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga
Years 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 I Contribution to state
consolidated fund 15732 (7016)
13575 (6562)
18231 (7200)
33150 (7215)
35676 (7225)
II Contribution to KSAM board
1933 (862)
1484 (750)
2216 (875)
4024 (876)
4197 (850)
III Administrative expenses 2708 (1208)
2396 (1211)
3076 (1215)
5514 (1200)
6004 (1216)
IV Expenditure on amenities
1713 (764)
1832 (926)
1327 (524)
2532 (551)
2696 (546)
V Miscellaneous 337 (150)
496 (251)
472 (186)
727 (158)
805 (163)
Total 22423 (100)
19783 (100)
25322 (100)
45947 (100)
49378 (100)
2 APMC Shorapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
1359 (4500)
4146 (4052)
4140 (4050)
3340 (3890)
2439 (5220)
II Contribution to KSAM board
473 (1565)
1751 (1711)
1750 (1712)
1556 (1812)
905 (1936)
III Administrative expenses 665 (2216)
2587 (2528)
2581 (2525)
2128 (2478)
1182 (2530)
IV Expenditure on amenities
440 (1458)
1586 (1550)
1534 (1501)
1285 (1496)
107 (228)
V Miscellaneous 079 (261)
070 (159)
005 (212)
277 (324)
040 (086)
Total 3020 (100)
10234 (100)
10223 (100)
8586 (100)
4673 (100)
3 APMC Shahapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
363 (4801)
703 (6701)
920 (5742)
2480 (6688)
2308 (6454)
II Contribution to KSAM Board
054 (714)
064 (610)
067 (418)
081 (218)
074 (206)
III Administrative expenses 154 (2037)
128 (1220)
252 (1573)
501 (1351)
489 (1367)
IV Expenditure on amenities
065 (860)
072 (686)
143 (892)
263 (709)
258 (721)
V Miscellaneous 120 (1580)
082 (783)
22 (1375)
383 (1034)
447 (1252)
Total 756 (100)
1049 (100)
1602 (100)
3708 (100)
3576 (100)
Source Annual reports of APMC Gulbarga for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
105
As that of the income position the analyses of the pattern of expenditure also
important as the functions of the regulated markets are constrained by the financial
limitations Here the study of expenditure dimension of regulated market was felt
necessary The pattern of the growth in expenditure has shown a steady pace during
2012-13 and 2013-14 in APMC Gulbarga It was very lowest in 2010-11 ie 19783
lakhs The major items of expenditures to which Gulbarga APMC Shorapur APMC
and Shahapur APMC were diverted include contribution to state consolidated fund
expenditure on amenities and contribution to KSAM board During the research
period the share contribution to state consolidated fund was ranged between 6562
to 7223 in Gulbarga APMC this percent of share in total expenditure was in
between 3590 to 5220 in APMC Shorapur and in APMC Shahapur it was
4801 to 6701 At the same time the contribution to KSAM board was almost
below 20 to total expenditure in all three APMCs selected in Gulbarga district
The administration expenses was found to be second major item of
expenditure in sample units of Gulbarga district It was all most stable in Gulbarga
APMC ie 12 and above 2216 to 25305 in Shorapur APMC and 1220 to
2037 in the Shahapur APMC The other expenses such as the security facilities
rent taxes electricity printing and stationary charges etc remained as minor
expenditure
II) Expenditure position of selected APMCs in Bidar District
The expenditure statement relating to the selected APMCs in Bidar district is
shown in the below Table 47 The percentage of individual expenditure to total
expenditure for the period of five years is also presented in the same table
A glance on the statement of trends in growth of expenditure in the selected
APMC in Bidar district reveals that the Bidar APMC had an annual expenditure
around Rs 145 lakhs In case of APMC Bhalki annual average expenditure was
around Rs 2118 lakhs and in APMC Aurad this amount was Rs 1701 lakhs
106
Table-47
Trends in Growth of Expenditure of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
6600 (7141)
10883 (7016)
8645 (6625)
10623 (6740)
13753 (7267)
II Contribution to KSAM board
1761 (823)
1260 (812)
1370 (1050)
1668 (1058)
1972 (1042)
III Administrative expenses
1382 (1496)
1945 (1254)
1249 (957)
1597 (1013)
2292 (1211)
IV Expenditure on amenities
275 (298)
462 (298)
1019 (781)
986 (568)
759 (401)
V Miscellaneous 225 (242)
961 (620)
766 (587)
888 (621)
149 (079)
Total 9243 (100)
15511 (100)
13049 (100)
15762 (100)
18925 (100)
2 APMC Bhalki 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
503 (5164)
619 (5213)
768 (4931)
1245 (4777)
2284 (5359)
II Contribution to KSAM board
069 (711)
076 (640)
184 (1183)
334 (1281)
889 (2085)
III Administrative expenses
380 (3902)
426 (3586)
547 (3510)
918 (3525)
858 (2013)
IV Expenditure on amenities
011 (112)
031 (265)
041 (260)
087 (335)
189 (444)
V Miscellaneous 012 (211)
036 (296)
018 (116)
023 (082)
042 (099)
Total 975 (100)
1188 (100)
1558 (100)
2607 (100)
4262 (100)
3 APMC Aurad 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
365 (5577)
188 (3067)
256 (3514)
486 (4065)
2185 (4113)
II Contribution to KSAM board
048 (740)
093 (1516)
089 (1219)
182 (1517)
782 (1471)
III Administrative expenses
211 (3210)
186 (3050)
243 (3341)
361 (3016)
1521 (2862)
IV Expenditure on amenities
014 (221)
105 (1725)
121 (1661)
150 (1255)
751 (1415)
V Miscellaneous 018 (252)
041 (642)
019 (265)
018 (147)
074 (139)
Total 656 (100)
613 (100)
728 (100)
1197 (100)
5313 (100)
Source Annual reports of APMC Bidar for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
107
From the table 47 it was clear that administrative expenses constitute 957
to 1496 in total expenses in APMC Bidar it was as high as compared to APMC
Bidar and APMC Aurad ie 2013 to 3902 during the research period In Aurad
the situation was completely different ie it ranged between 2862 to 3341
during the same period ie 2009-10 to 2013-14
The trends in the contribution to state consolidated fund also showed an
increasing and decreasing trend in all the three APMCs in Bidar district during the
plan period In Bidar APMC it was registered lowest contribution to state
consolidated fund in the year 2009-10 ie Rs 6600 lakhs and the highest in Rs
13753 lakhs in 2013-14 Similarly in case of APMC Bhalki lowest was recorded in
2009-10 ie Rs 975 lakhs and highest in the year 2013-14 ie Rs 4262 lakhs But
in APMC Aurad beginning year ie 2009-10 it was Rs 365lakhs decreased to Rs
188 lakhs in 2010-11 and again increased to maximum Rs 2185 lakhs in 2013-14
Apart from a sizeable proportion of expenditure (ie 116 to 961) was made
under the head miscellaneous
III) Expenditure position of selected APMCs in Koppal
The trends in the growth of total expenditure incurred by the sample APMCs
in the Koppal district is presented for the five years period ie 2009-10 to 2013-14 in
the below Table 48
Table 48 depicts the expenditure position of three APMCs selected for the
present study in the Koppal district A detailed analysis of this indicates that the total
expenditures incurred by APMC Koppal were increased through out the study period
from Rs 2217 lakhs in 2009-10 to Rs 6862 lakhs in 2013-14 The same situation
was also found in case of APMC Gangavati ie Rs 29714 lakhs in 2009-10
increased to Rs 54160 lakhs in 2013-14 and in APMC Kustagi total expenditure was
Rs 4015 lakhs in 2009-10 raised to Rs 6295 lakhs in 2013-14
108
Table-48
Trends in Growth of Expenditure of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
1157 (5217)
1522 (5071)
2205 (5316)
2261 (5555)
4023 (5862)
II Contribution to KSAM board
143 (646)
224 (748)
307 (741)
287 (705)
537 (782)
III Administrative expenses
668 (3014)
944 (3147)
1167 (2813)
1101 (2704)
1720 (2506)
IV Expenditure on amenities
226 (1019)
267 (891)
333 (805)
332 (815)
480 (700)
V Miscellaneous 023 (104)
044 (143)
137 (325)
091 (221)
102 (150)
Total 2217 (100)
3001 (100)
4149 (100)
4072 (100)
6862 (100)
2 APMC Gangavati 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
15819 (5324)
23396 (5410)
28621 (5450)
27388 (5470)
29896 (5520)
II Contribution to KSAM board
1902 (640)
2422 (560)
2757 (525)
2753 (550)
3629 (670)
III Administrative expenses
8338 (2806)
12541 (2900)
15807 (3010)
14821 (2960)
15381 (2840)
IV Expenditure on amenities
3310 (1114)
4329 (1001)
4989 (950)
4657 (930)
4604 (850)
V Miscellaneous 345 (116)
558 (129)
342 (065)
451 (090)
650 (120)
Total 29714 (100)
43246 (100)
52516 (100)
50070 (100)
54160 (100)
3 APMC Kustagi 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2168 (5400)
2357 (5610)
2498 (5520)
2647 (5620)
3607 (5730)
II Contribution to KSAM board
225 (560)
189 (450)
288 (660)
363 (770)
535 (850)
III Administrative expenses
1169 (2913)
1195 (2845)
1326 (2930)
1232 (2615)
1711 (2718)
IV Expenditure on amenities
422 (1050)
405 (965)
319 (705)
396 (840)
319 (507)
V Miscellaneous 031 (077)
056 (130)
094 (185)
072 (155)
123 (195)
Total 4015 (100)
4202 (100)
4525 (100)
4710 (100)
6295 (100)
Source Annual reports of APMC Koppal for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
109
When we look at the percentage of specific expenditure in the total
expenditure contribution to state consolidated fund was major component ie in
Koppal APMC 5071 to 5862 in APMC Gangavati 5324 to 5520 and in
APMC Kustagi 54 to 5730 during the plan period However contribution to
KSAM Board constitute an annual average around Rs 3 lakhs per year in APMC
Koppal Rs 2693 lakhs per year in APMC Koppal Rs 2693 lakhs per year in
APMC Gangavati and Rs 32 lakhs per year in APMC Kustagi Administration
expenses also got secondary importance in the expenditure position followed by the
expenditure on amenities in the market yard Miscellaneous expenditure constitutes a
negligible percentage in the total expenditure
IV) Expenditure position of selected APMCs in Raichur
Table 49 depicts the year wise total expenditure spent by the sample
APMCs in the Raichur district during the five years period of study ie 2009-10 to
2013-14 Table 49 reveals that the expenditure incurred by the APMC Raichur was
not constantly increased It was decreased in 2010-11 and 2011-12 indicating that it
was more efficient in control of expenditure but during last two years of plan period it
increased from Rs44965 lakhs in 2009-10 to Rs67431 lakhs in 2013-14 with annual
aggregate growth over pervious year Rs4493 lakhs
In case of Sindnoor APMC the annual growth during the study period was
Rs3835 lakhs over the previous year As far as APMC Linagsugur is concerned this
was Rs 564 lakhs A keen observation on the expenditure statement of selected
APMCs in Raichur district points out that the APMC Raichur has got first rank in
terms of the total expenditure incurred among the selected APMCs in the district
followed by the APMC Sindnoor and APMC Lingasugur respectively As use well
contribution to state consolidated fund remained the dominating expenditure in the
total expenditure followed by expenditure on amenities Administration expenses and
contribution to KASM Board The state consolidated fund which was eaten away the
major position of total expenses (6535) to 7238 in Raichur APMC 5518 to
5730 in APMC Sindnoor and 5518 to 5730 in APMC Sindnoor and 5566 to
600 in APMC miscellaneous expenses remained minor expenses in total expenses
110
Table-49
Trends in Growth of Expenditure of Selected APMC in Raichur District
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 31862 (7086)
24764 (6535)
30247 (7100)
39880 (7238)
21275 (3155)
2 Contribution to KSAM board
3795 (0844)
5135 (1355)
5197 (1220)
6391 (1160)
3539 (525)
3 Administration expenses 5216 (1160)
4036 (1065)
4090 (960)
4849 (880)
(1550)
4 Expenditure on Amenities 2905 (646)
2065 (545)
2185 (513)
3471 (630)
(4210)
5 Miscellaneous 1187 (264)
1894 (500)
882 (207)
508 (092)
(560)
Total 44965 (100)
37894 (100)
42601 (100)
55099 (100)
67431 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 6283
(5655) 7740
(5518) 11182 (5685)
14152 (5690)
17353 (5730)
2 Contribution to KSAM board
833 (750)
1000 (713)
1241 (631)
1644 (661)
1968 (650)
3 Administration expenses 589 (530)
588 (419)
1017 (517)
1300 (523)
1332 (440)
4 Expenditure on Amenities 3350 (3015)
4418 (3150)
5959 (3030)
7496 (3014)
9443 (3118)
5 Miscellaneous 0050 (050)
280 (200)
270 (137)
279 (112)
188 (062)
Total 11111 (100)
14026 (100)
19669 (100)
24871 (100)
30284 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 1102
(5566) 1364
(5818) 2193
(5910) 2674
(6130) 2879
(6000) 2 Contribution to KSAM
board 127
(640) 331
(1431) 382
(1030) 689
(1580) 773
(1612) 3 Administration expenses 159
(804) 144
(614) 394
(1061) 267
(611) 362
(755) 4 Expenditure on Amenities 500
(2530) 483
(2060) 673
(1814) 628
(1440) 710
(1480) 5 Miscellaneous 092
(460) 023
(095) 069
(185) 104
(239) 074
(153) Total 1980
(100) 2345 (100)
3711 (100)
4362 (100)
4798 (100)
Source Annual reports of APMC Raichur for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
111
V) Expenditure position of selected APMCs in Bellary
In the Table 410 the details of the various expenditure incurred by the three
APMCs which are taken for the research as sample in the Bellary district are shown
clearly along with individual expenditure percentage to total
The total expenditure for all the five years of the study and the details of
expenditure under each heads along with the percentage to total of Bellary APMC
indicates that a rapid growth was found in total expenditure ie Rs 8835 lakhs in
2009-10 increased to Rs 33116 lakhs in 2013-14 with compound annual growth
during study years 27482 This compound growth in the APMC Hospet was found
to be negative in 2010-11 and 2013-14 and positive in 2011-12 and 2012-13 In case
of Siraguppa APMC the compound growth was 47147 during research period
112
Table-410
Trends in Growth of Expenditure of Selected APMC in Bellary District
(Rs In lakhs)
Sl No APMC Bellray
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
4477 (5067)
3860 (2767)
4820 (2026)
6933 (2811)
10076 (3042)
II Contribution to KSAM board
746 (844)
643 (461)
1803 (758)
1155 (468)
1679 (507)
III Administrative expenses
3310 (3746)
4673 (3350)
15965 (6711)
16011 (6490)
20499 (6190)
IV Expenditure on amenities
276 (312)
159 (114)
1190 (500)
558 (226)
838 (253)
V Miscellaneous 026 (031)
011 (007)
008 (005)
011 (005)
024 (008)
Total 8835 (100)
13946 (100)
23766 (100)
24668 (100)
33116 (100)
2 APMC Hospet 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2406 (7014)
2210 (7161)
2852 (6562)
2961 (6860)
2460 (7176)
II Contribution to KSAM board
320 (932)
216 (700)
416 (957)
429 (993)
317 (924)
III Administrative expenses
481 (1402)
418 (1354)
425 (978)
402 (931)
418 (1219)
IV Expenditure on amenities
114 (332)
101 (327)
269 (618)
219 (507)
125 (365)
V Miscellaneous 109 (320)
141 (458)
384 (885)
305 (709)
108 (316)
Total 3430 (100)
3086 (100)
4346 (100)
4316 (100)
3428 (100)
3 APMC Siraguppa 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
4088 (5154)
4055 (5011)
7662 (4813)
9122 (4313)
28595 (6310)
II Contribution to KSAM board
564 (711)
544 (672)
1238 (778)
1581 (748)
2626 (579)
III Administrative expenses
3030 (3820)
2903 (3587)
5026 (3157)
6919 (3271)
9763 (2154)
IV Expenditure on amenities
167 (211)
293 (362)
883 (555)
1477 (698)
2888 (637)
V Miscellaneous 082 (104)
297 (368)
1111 (697)
2051 (970)
1452 (320)
Total 7931 (100)
8092 (100)
15920 (100)
21150 (100)
45324 (100)
Source Annual reports of APMC Bellary for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
113
C) Profit Position
Profit is the excess of income over expenditures by the organization Profit is
the best indicator of the performance of any organization Higher the profit higher is
the efficiency and vice-versa APMCs are established not for profit motive but profits
remain important for their survival for future An attempt here is made to know profit
position by taking income and expenditure of all the selected APMCs in the Gulbarga
division and conclusion is drawn about their performance by comparing in APMC
with other APMC and also level of performance during the period under study
Table 411 depicts the year wise income expenditure and profitloss position
of the selected APMCs in the Gulbarga district The income of the three sample
APMCs from the Gulbarga district was shown an upward trend during the research
period ie 2009-10 to 2013-14 expect in the year 2010-11 the APMC Shorapur
income was down to Rs 6084 lakhs from Rs 6651 lakhs in 2009-10 When we see
the expenditure position of all the APMCs in the same table neither it was constantly
increasing or decreasing over a period of time it was showing zigzag trend Expect
the Shahapur APMC remained increasing during the plan period from Rs 756 lakhs
in 2009-10 to Rs 3576 lakhs in 2013-14
114
Table-411
Profit Position of Selected APMC in Gulbarga District
(Rs In lakhs)
Year Gulbarga Shorapur Shahapur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 29176 22423 6753 6651 3020 3631 1705 756 949
2010-11 30936 19783 11153 6084 10234 - 4150 1990 1049 941
2011-12 42852 25322 17530 9859 10223 0364 2404 1602 802
2012-13 73932 45947 27984 12517 8586 3931 4989 3708 1281
2013-14 87054 49378 37676 22176 4673 17502 8792 3576 5216
Source Annual Reports of Gulbarga APMC for 2009-10 to 2013-14
115
The detailed study of profit position of the selected APMC in Gulbarga district
also indicates that Shahapur APMC has made average amount of the profit in research
period without incurring any loss in the same period But APMC Shorapur had made
huge loss in the year 2010-11 ie Rs 4150 lakhs during heavy expenditures As per
APMC Gulbarga is concern profit was increased steadily from Rs 6753 lakhs in
2009-10 to Rs 37676 lakhs in 2013-14 with an annual aggregate growth of Rs 6184
lakhs per year
The Table 412 reveals that the profit or loss position of the selected APMCs
in Bidar district The analysis of profit of above APMCs in the table indicates that
Bidar APMC has positioned first in earning profit among three APMCs followed by
Bhalki APMC and APMC Aurad During the research period APMC Aurad had
incurred to Rs 3271 lakhs in 2013-14 The profit of Bidar APMC was ranged in
between Rs 932 lakhs to Rs 16042 lakhs and APMC Bhalki it was lowest to Rs
181 lakhs to highest Rs 2608 lakhs Both income and expenditure of Bidar APMC
was increased rapidly over a period time But in case of Aurad APMC the degree of
growth of expenditure was greater than the degree of growth in income which
reported slow growth in the profit The situation was different in case of APMC
Bhalki it was opposite and was almost 4 times increased in APMC Bhalki ie from
Rs 714 lakhs to Rs 2608 lakhs profit remained stable in APMC Aurad ie in
between Rs 323 lakhs to Rs 16042 lakhs in APMC Bidar during the period under
consideration
116
Table ndash 412
Profit Position of Selected APMCS in Bidar District
(Rs In lakhs)
Year Bidar Bhalki Aurad
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 18275 9243 9031 1689 975 714 1126 656 469
2010-11 16443 15511 932 1369 1188 181 1045 613 432
2011-12 17575 13049 4526 2739 1558 1181 1052 728 323
2012-13 31805 15762 16042 4330 2607 1722 1685 1197 487
2013-14 30420 18925 11495 6871 4262 2608 2041 5313 - 3271
Source Annual Reports of Bidar APMC for 2009-10 to 2013-14
117
The Table 413 deals with the trends in growth of income expenditure and
profit position of sample group of APMCs from the Koppal district Koppal district
APMCs were considered to be minor APMCs in the Gulbarga division A micro study
of these three APMCs in Koppal district reveals that APMC Gangavati was a leading
APMC in the Koppal district as it made super profit during the research period as
compared to APMC Koppal and AMPC Kustagi APMC Koppal has made average
profit ie Rs 1492 lakhs to Rs 4170 lakhs and APMC Kustagi has made normal
profit ie from Rs 540 lakhs to Rs 3995 lakhs during the five years study period
ie 2009-10 to 2013-14 Increased expenditures in APMC Koppal and APMC
Kustagi was eaten the profit
Profit position of the three APMCs from the Raichur district for the period of
five years ie 2009-10 to 2013-14 is shown in the Table 414 The table clearly
shows the year wise income position and its growth expenditure position and its trend
and the profit trend Among these three APMCs selected in sample from the Raichur
district Raichur APMC has earned highest amount of income which resulted highest
profit during the study period as compared to the APMC Sindhnoor and APMC
Lingasugur The profit of APMC Raichur was Rs20629 lakhs in 2009-10 increased
to Rs 45018 lakhs in 2013-14 during the research period During the same period
the profit of APMC Sindhnoor was increased from Rs 9518 lakhs to Rs 19171
lakhs and APMC Lingasugur from Rs 1327 to Rs 2201 lakhs with percentage
growth of almost 100 and 9026 respectively
118
Table-413
Profit Position of Selected APMCs in Koppal District
(Rs In lakhs)
Year Koppal Gangavati Kustagi
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 3709 2217 1492 51692 29714 21977 1185 645 540
2010-11 5849 3001 2848 68917 43246 25671 1346 775 571
2011-12 6223 4149 2074 78239 52516 25722 1684 1005 679
2012-13 6475 4072 2403 79755 50070 29684 2514 1469 1045
2013-14 11032 6862 4170 91123 54160 36963 10291 6295 3995
Source Annual Reports of Koppal APMC for 2009-10 to 2013-14
119
Table-414
Profit Position of Selected APMCs in Raichur District
(Rs In lakhs)
Year Raichur Sindnoor Lingusugur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 40895 19035 21859 20629 111111 9518 3761 2434 1327
2010-11 48932 44965 3966 22760 14026 8734 2907 1980 926
2011-12 58356 37894 20462 30084 19669 10414 3708 2345 362
2012-13 71950 42601 29348 42881 24871 18009 6078 3711 2367
2013-14 100117 55099 45018 49455 30284 19171 7562 4362 2201
Source Annual Reports of Raichur APMC for 2009-10 to 2013-14
120
The Table 415 reveals the year wise profit made by the sample APMCs in the
Bellary district APMC Hospet has made least profit during all five years research
period but it increased from Rs 864 lakhs in 2009-10 to Rs 5211 lakhs in 2013-14
APMC Bellary had achieved significant progress in earning profit as compared to
APMC Siraguppa The profit of APMC Bellary steadily increased around 4 times
over the beginning year ie Rs 7576 lakhs in 2009-10 to Rs 27843 lakhs in 2013-
14 But the APMC Sirguppas profit was highest recorded in 2011-12 and 2012-13 ie
Rs 11784 lakhs and Rs 13315 lakhs respectively
121
Table-415
Profit Position of Selected APMCS in Bellary District
(Rs In lakhs)
Year Bellary Hospet Siragoppa
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 16411 8835 7576 4295 3430 864 9885 7931 1954
2010-11 22346 13946 8399 5682 3086 2596 12408 8092 4316
2011-12 28230 23786 4444 6404 4346 2058 27704 15920 11784
2012-13 40352 24682 15670 6816 4316 2499 34466 21150 13315
2013-14 60959 33116 27843 8639 3428 5211 59912 45324 9587
Source Annual Reports of Bellary APMC for 2009-10 to 2013-14
122
CHAPTER-V FINDINGS SUGGESTIONS AND CONCLUSION
FINDINGS
1 During field study the researcher found that all the APMCs working in
Gulbarga division are suffered storage facilities in general and cold storage
facilities in particular This calls for medium and big producers to take storage
facilities by paying heavy fees to private service provider
2 The field investigation resulted that the farmers have been experienced
difficulties in getting timely payment even after the sale of their produce
3 It is learnt from the field study of market participant that larger participant
were qualified upto secondary and the technical qualification such as ITI
Diploma etc Education among market participant is considered to be most
significant factor in discharging their duties and responsibilities more
efficiently and effectively
4 The analysis of nature of participant in the agricultural market revealed that
commission agents were dominant in the total market participant followed by
traders with 25 of sample group and Hamalas which constitute 16 of
sample size
5 Macro studies of facilities at the APMC yard in five districts of Gulbarga
division opinioned the lack of facilities ie Non-availability of drinking water
canteen transport and communication facilities etc One sample lsquoTrsquo test was
applied and the result shows that lsquotrsquo values ranged for above facilities between
46425 to107000 Mean difference was found between 14400 to 2000
6 The correlation between two variable ie advance money and number of
commodities was +0611 which is insignificant Similarly the correlation
between transport facility and role of government in market and graduation
facility with more representatives from farmers resulted 0445 and 0948 also
in significant but the only significant factor found between difficulty of
storage and increase in facilities with a value of 0508
7 There are different sources of incomes available to APMC These sources may
be classified like market fees licence fees penalty etc Among these sources
123
of income market fees collected by APMC were major but other incomes are
also envisaged in KAPM (R) Act 1966
8 The expenditure position of the selected APMCs in Gulbarga division which
covers five districtrsquos found that major use of expenditure by each APMCs
were contribution to state consolidated fund and contribution to KSAM Board
which was ranged between 3042 to 7210 and 564 to 2630
respectively
9 There are only three charges allowed for deduction from the sale produced of
farmers in Gulbarga APMC division they are commission to agents Hamali
and weighment Field investigation by researcher found that these charges are
nominal
SUGGESTIONS
1 To achieve its (APMC Act) objectives and for effective implementation of its
bye law and policies it is suggested that APMCs should open its branches at
Hobli level so that they may help and guide the formers in marketing of their
grown agricultural produce
2 It is recommended to all APMCs in Gulbarga division to take efforts to stop
rural marketing to get better price An inspection team has to be formed to
stop local sales The team member should visit all the villages coming under
the jurisdiction of the APMC during Post harvest
3 Lots of changes have to be brought into the marketing activities in the APMC
yard Scientific grading and enlightment for all commodities in the market
yard be made compulsory in a phased manner
4 Illiteracy of formers and lack of Medias for communication of information has
been a big problem in rural as well as semi-urban areas The information
obtained should be in a position to help them in decision making Hence it is
recommendable to each APMC for equipping the intelligence cell and branch
offices with highly qualified and trained staff to perform the job quicker to
help producers at right time
5 The existing facilities of processing and storage in all the APMC of Gulbarga
division are inadequate This gap need to be filled up The local government
administrative bodies financial agencies and APMCs should motivate the
124
processing units to be set up and also more godowns are to be encouraged for
construction in these areas
6 Proper co-ordination between the financial agencies established by APMCs or
any other organization to be set up for this purpose is necessary This
definitely prevent the exploitation of farmers by private financiers This
problem needs to be tackled on priority basis in Gulbarga division
7 To avoid the injustice at the time of weighment of farm produce on arrival
and sale APMCs needs to make it compulsory to install electronic weighting
machines The issue of weighment note to the agriculturist by agents is made it
compulsory
8 As far as Gulbarga division APMCs are concerned they have completely
neglected the importance of two marketing services ie assembling and
processing The absence of these two services in the study area is a reflection
on its lethargic and indifferent attitude in providing a comprehensive package
of marketing services to the rural farmers
9 Lots of changes have to be brought into the payment to the farmers after sales
The strong actions against the defaulting commission agent should be
exercised and also cautioned against such delays on their part when any
complaint from the farmers regarding the delay In this regard formulation of
rigid policy is recommended at all APMCs
10 Some of the APMCs in Gulbarga division are still practicing mutual
negotiation method of sale this leads unfavourable price for the agricultural
produce Auction system of sale is made compulsory for all commodities
arriving in the market yard and negotiation method is to be prohibited
11 It was noticed from the market yard during the field visit different types of
malpractices on the part of the unscrupulous market functionaries In order to
eliminate this harassment to farmers the marketing committee has to detect
such unethical practices from market participants and they be severely
punished with fine and imprisonment
12 To improve the overall quality of services (marketing services and
infrastructure facilities) it is strongly advisable to marketing committees to
implement all the provisions lay down in KAPM (R) Act 1966 and rules in
1968 along with suggestions made by Indian standards Institute (RSI) for the
benefit market functionaries in general and farmers in particular
125
13 A network of rural storage centres should be built on a priority basis in order
to prevent distress sales wastage and loss arising out of inadequate and
defective storage facilities
14 These storage centres may be constructed and managed by panchayats
cooperatives and other suitable agencies selected by the State Government
15 Farmers should be provided with receipts for the commodities stored by them
Each receipt should be a negotiable instrument to enable them to obtain credit
from banks
16 The banks should provide credit to the extent of 90 percent of the value of the
stocks stored by the farmers and the credit should be provided at concessional
rates of interest
17 Arrangements for the display of prices on notice boards at important public
places like hospitals schools panchayat ghars etc should be made
18 There must be proper coordination between market intelligence and policy
making departments so that the later may better understand the problem and
can make such adjustments in the information as may be called for
CONCLUSION
Indiarsquos long-neglected agriculture sector is all set to grow faster We have
improved a lot since independence In the last few years it has grown at an average
rate of 31 only and there is a need to step up the growth in this sector Then only
Indiarsquos GDP growth cross 9 and rural income and rural employment increases
It is time to APMCs to give concrete shape to the agro-industrial integration
by starting industrial units based on agricultural raw-materials This integration will
create a better economic atmosphere for the growth of the Karnataka region as well as
Gulbarga division
126
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Oxford and IBH Publishing Co Pvt Ltd New Delhi 1994
3 Acharya S S Agricultural Production Marketing and Price Policy-A Study
of Pulses Mittal Publications Delhi-110035 1988
4 Acharya S S M S Rathore and P R Sharma Agricultural Marketing - A
National Dialogue Institute of Development Studies Jaipur 1998
5 Agarwal N L Agricultural Prices and Marketing in India-An Analytical
Case Study of Rajasthan Mittal Publications Delhi-110035 1986
6 Agricultural Technology Management Agency MANAGE-NATP series 2
1999
7 Amarchand D and B Vardharajan An Introduction to Marketing Vikas Pub-
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8 Anne Margaret Thomson 1993 Promoting Private Sector Involvement in
Agricultural Marketing in Africa (Fao Agricultural Services Bulletin)
9 Bailey Norwood F and Jayson Lusk 2007 Agricultural Marketing and Price
Analysis
10 Barker J W 1990 Agricultural Marketing (Oxford science publications)
11 Berend Wierenga Aad van Tilburg Klaus Guumlnter Grunert and Jan-Benedict
EM Steenkamp 1997 Agricultural Marketing and Consumer Behavior in a
Changing World
12 Bill Malcolm Jack Makeham and Vic Wright 2006 The Farming Game
Agricultural Management and Marketing
13 Brian How R 1995 Marketing Fresh Fruits and Vegetables (An AVI Book)
14 Brunk M E and L B Darrah Marketing of Agricultural Products The
Ronald Press Company New York 1955
15 Campbell K O 1973 Agricultural Marketing and Prices Cheshire
Publishing Melbourne Australia
16 Carter S 1998 Global Agricultural Marketing Management (Marketing amp
Agribusiness Texts Series (Series 09005676 No 3)
127
17 Chakraborty and Krian Sankar 2009 Rural Markets and Agricultural
Marketing
18 Chandra Shekara P 2001 Private Extension in India Myths Realities
Apprehensions and Approaches
19 Chandrashekara P 2001 Private Extension Indian Experiences
20 Common Principles for Watershed Development 1999
21 Crawford I M 1997 Agricultural and Food Marketing Management
(Marketing and Agribusiness Texts 2)
22 Dennis Chiwele Pumulo Muyatwa-Sipula and Henrietta Kalinda (Paperback -
Jan 1998) Private Sector Response to Agricultural Marketing Liberalisation in
Zambia A Case Study of Eastern Province Maize Markets (Research Report
Nordiska Afrikainstitutet)
23 Desai G R and Arora S K 1999 Trainers Training manual for Participatory
Management on Watershed
24 Desmond ORourke A 1994 The World Apple Market (Fpp Agricultural
Commodity Economics Distribution amp Marketing)
25 Dieter Elz 1987 Agricultural Marketing Strategy and Pricing Policy (World
Bank Symposium)
26 Dixit R S 2006 Agricultural Marketing in India
27 Erdener Kaynak 1986 World Food Marketing Systems
28 Erdener Kaynak and Matthew Meulenberg 1995 Food and Agribusiness
Marketing in Europe
29 Euan Fleming and Hugh Coulter 1992 Agricultural Export Marketing South
Pacific The Future Role of Marketing Authorities (Pacific Policy Papers)
30 Farris P 1983 Future Frontiers in Agricultural Marketing Research
31 Fertilizer and product Guide 1997
32 Foxall G R1982 Co-Operative Marketing in European Agriculture
33 Geoffrey S Shepherd and Gene A Futnell 1982 Marketing Farm Products
Economic Analysis
34 George Angell 1986 Agricultural Options Trading Puts and Calls in the New
Grain and Livestock Futures Market
35 Giriappa S 2000 Institutions and agricultural marketing in a semi-commercial
system
128
36 Gupta A P Marketing of Agricultural Produce in India Vora and Co
Publishers Pvt Limited Mumbai 1975
37 Hughes D R HM Martin and MVan Nieuwkerk 1993 A Comparative
Study of Agricultural Marketing in the Netherlands and the United Kingdom
(Food Industry Perspectives Discussion Paper)
38 Inderjit Singh Lyn Squire and James Kirchner 1985 Agricultural Pricing and
Marketing Policies in an African Context A Framework for Analysis (World
Bank Staff Working Paper) (No 743)
39 Indian Society of Agricultural Marketing Vistas in Agricultural Marketing
1997
40 Jagdish Prasad Encyclopedia of Agricultural Marketing Vol I to VIII 2000
Mittal Publications Delhi-110035
41 Narain Dharam Distribution of the Marketed Surplus of Agricultural Produce
by Size-Level of Holdings in India 1950-51 Asia Publishing House New
Delhi
42 Nayyar H and P Ramaswamy Globalization amp Agricultural Marketing
Rawat Publications Jaipur 1995
43 Neelamegham S Marketing Management and the Indian Economy Vikas
Publishing House Pvt Ltd New Delhi 1978
44 Padberg D I C Ritson and L M Albisu 1997 Agro-Food Marketing
45 Polopolus LC and Jesus Alvarez 1991 Marketing Sugar and other
Sweeteners (Developments in Agricultural Economics)
46 Prabhakar Rao Marketing Efficiency in Agricultural Production Himalaya
Publishing House Mumbai 1985
47 Procurement guidelines under National Agricultural Technology Project
MANAGE-NATP series 4 2000
48 Raghavendran T 2001 Disbursement Procedure for World Funded Projects
(A Guide to Project Implementing Agencies) by MANAGE-NATP series 5
49 Rajagopal Development of Agricultural Marketing in India Print well Jaipur
1996
50 Ralph M Chite 2007 HTML Agricultural issues in the 109th Congress An
article from Congressional Research Service (CRS) Reports and Issue Briefs
129
51 Ramesh Chand and V P S Arora (Ed) Agricultural Input and Output
Market Reforms in India Advance Publishing Concept New Delhi-11 0064
2000
52 Ramesh Chand Agricultural Development Price Policy and Marketed Surplus
in India (Study of Green Revolution Region) Concept Publishing Company
New Delhi-11 0059 1991
53 Rao NGP Perumal N Ghosal SL 1997 Training for Agriculture
Development
54 Sarveshwara Rao and G Parthasarthy Regulated Markets and Public Policy
Book links Corporation Hyderabad
55 Secondo Tarditi Kenneth J Thomson Pierpaolo Pierani and Elisabetta Croci-
Angelini 1989 Agricultural Trade Liberalization and the European
Community
56 Seetharaman S P Agricultural Input Marketing Oxford and IBH Publishing
Co New Delhi
57 Singh J P and Kareem M A 2001 Economic Evaluation of Participatory
Adaptive Research Project
58 Singh J P 2000 Economic Evaluation of Manchal Watershed
59 Singh J P 2000 Socio Economic Dynamics and Development Strategy for
Participatory Adaptive Research Project (PAR)
60 Singh J P 2002 Evaluation of Participatory Adaptive Research Project K
H Vedini 2001 Agriculture Marketing Interventions amp Innovations
61 Singh Rajkumar Agricultural Price Policy in India Print well Publishers
Jaipur
62 Singh J P Chandrasekhar P Kumar TDS and Lakshmi Murthy
2000 Israelrsquos Agriculture (Achievement through innovation and
Technology)
63 Singhal A K 2009 Agricultural Marketing in India by publisher Anmol
Publications pages 246
64 Singhal AK 1989 Agricultural marketing in India
65 Singhal A K Agricultural Marketing in India Anmol Publications New
Delhi 1989
66 Southworth Herman Some Studies on Fresh Fruits and Vegetable Marketing
in Asia Agricultural Development Council Bangkok Thailand 1974
130
67 Subba Rao K Agricultural Marketing and Credit ICSSR New Delhi 1985
68 Tyagi D S Managing Indias Food Economy-Problems and Alternatives
Sage Publications India Pvt Ltd New Delhi 1990
69 Vedini K H 2000 Management Issues in Rainfed Agriculture in India
70 Venkateswarulu J 1999 Technical Manual on Watershed Management
(Series (II) Resource(III)Arable Cropping Systems (IV) Non-Arable
Cropping Systems (V) Non-farming Systems amp Watershed in Retrospect
Conservation)
71 Vijay Gaatha 2002 Agripreneurs Documents 24 success stories of
agripreneurs with 40 different types of projects
72 Vijender Agricultural Marketing in India The Mandi System
JOURNALSMAGAZINES
1 Indian Journal of Agricultural Economics - Quarterly The Indian Society of
Agricultural Economics 46-48 Esplanade Mansions MG Road Fort
Mumbai-400001
2 Agricultural Situation in India - Monthly Directorate of Economics and
Statistics Ministry of Agriculture Government of India New Delhi
3 Indian Agriculture in Brief - Annual Directorate of Economics and Statistics
Ministry of Agriculture Government of India New Delhi
4 Yojana - Monthly Ministry of Information and Broadcasting Government of
India New Delhi
5 Economic Survey - Annual Ministry of Finance Government of India New
Delhi
131
APPENDIX-I QUESTIONNAIRE
QUESTIONNAIRE FOR FARMERS
1) Name of the Farmerhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Name of the village and district helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3) Age (in years)
a) Below [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
4) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P G and others [ ]
5) Sources of income
a) Agriculture [ ] b) Business [ ]
c) Employment [ ] d) Others [ ]
6) Annual gross income (In Rs)
a) Agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Non agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
7) Type of family
a) Nuclear family [ ] b) Joint family [ ]
c) Individual (single) [ ]
8) Number of family members
a) lt 4 [ ] b) 4 ndash 8 [ ]
c) 8 ndash 12 [ ] d) 12 and above [ ]
9) Total agricultural land holding (In Acres)
a) Below 5 Acres [ ] b) 5 ndash 10 Acres [ ]
c) 11 ndash 15 Acres [ ] d) Above 16 Acres [ ]
10) Crops grown in land with quantity per annum
Qty (in Quintals)
a) Red gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Green gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) Black gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) Jowar helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
e) Maize helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
f) Bajra helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
132
g) Bengal gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
h) Sugarcane helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
i) Others helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
11) Sale of agricultural produces
a) Open market [ ] b) APMC [ ]
c) Confirmation Agriculture [ ] d) Others [ ]
12) Preference of sale of agricultural produce
a) Local market [ ] b) Taluka market [ ]
c) District market [ ] d) Other state [ ]
13) How you carry agricultural produce to APMC
a) Bullock cart [ ] b) Tractor and trucks [ ]
c) Hired vehicle [ ] d) Own vehicle [ ]
14) Market charges of the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
15) Carrying cost paid in the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
16) Facilities provided by the APMC
Yes No
a) Water [ ] [ ]
b) Toilet [ ] [ ]
c) Canteen [ ] [ ]
d) Communication [ ] [ ]
e) Shopping property [ ] [ ]
f) Marketing information [ ] [ ]
g) Other facilities (if any) [ ] [ ]
17) Sources for dissemination of marketing information
a) News paper [ ]
b) Radio and Television [ ]
c) Dept of the government [ ]
d) Post and Telephone [ ]
e) Price bulletins [ ]
f) Personal contact [ ]
133
18) Rank the defects in regulated markets
a) No advance money [ ]
b) Difficulty of storage [ ]
c) Lack of transport facility [ ]
d) Lack of gradation facility [ ]
19) Rank the facilities to improve market efficiency
a) More number of commodities [ ]
b) Increases in facilities [ ]
c) More role of government [ ]
d) More representation from farmers [ ]
e) Reduction in market fees [ ]
20) Weather APMC provides adequate transport services
a) Yes [ ] b) No [ ]
21) Weather APMC provides adequate storage facilities
a) Yes [ ] b) No [ ]
22) Does APMC has cold storage facilities at warehouse
a) Yes [ ] b) No [ ]
23) What is the monthly storage cost of your produce at APMC
Rs helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
24) Whether APMC helps you for processing of your produce
a) Yes [ ] b) No [ ]
25) Do you satisfied with processing services provided by processors
a) Yes [ ] b) No [ ]
26) Processing fees paid to processors
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
27) Whether grading facilities are available at the APMC
a) Yes [ ] b) No [ ]
28) Do you satisfied with grading services provided by graders
a) Yes [ ] b) No [ ]
29) Are the graders trustworthy
a) Trustworthy [ ] b) Not trustworthy [ ]
30) Whether APMC provides efficient weighment of produce
a) Yes [ ] b) No [ ]
134
31) Do you satisfied with cost charged for weighment of produce
a) Yes [ ] b) No [ ]
32) Whether electronic weighing balancesmachine have been installed in
markets
a) Yes [ ] b) No [ ]
33) Causes of the defects in weighing
a) Absence of licensed weighman [ ]
b) Under weighing [ ]
c) Favouring for buyer [ ]
d) Faulty weights [ ]
e) Faculty weight machines [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
34) Grading of produce helps in the ways
a) Easy marketing [ ]
b) Reduction of cost [ ]
c) Higher prices [ ]
d) Encourage competition [ ]
e) Easy to get finance [ ]
35) Whether APMC provides market information on time to time
a) Yes [ ] b) No [ ]
36) If lsquoNorsquo what are the defects in market information
a) Ignore retail prices [ ]
b) Delay in news [ ]
c) Wide range of prices [ ]
d) Incomplete information [ ]
e) Illiteracy [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
37) Processing of produce helps to you in the ways
a) Add the value [ ]
b) Preservation for longer period [ ]
c) Less cost of production [ ]
d) Wide extent of the market [ ]
e) Use of surplus food [ ]
135
38) Do you insure your agricultural produce at APMC
a) Yes [ ] b) No [ ]
39) Whether you satisfied with the insurance facilities at the APMC
a) Yes [ ] b) No [ ]
40) Whether bank credit faculties available at the APMC
a) Yes [ ] b) No [ ]
41) Are you satisfied with present banking facilities
a) Yes [ ] b) No [ ]
42) What are the other sources of credit facilities other than bank credit
a) Whole sellers [ ] b) Retail seller [ ]
c) Commission agents [ ] d) Others (specify)helliphelliphelliphelliphellip
43) Ranking the factors determining the finance requirements
a) Nature of crop [ ] b) Terms of payment [ ]
c) Economic condition [ ] d) Fluctuations of prices [ ]
e) Volume of crop [ ]
44) Interest paid on bank credit
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
45) Are you obtaining services form the commission agents at APMC
a) Yes [ ] b) No [ ]
46) Are you satisfied with services provided by licensed commission agents
a) Yes [ ] b) No [ ]
47) If lsquoNorsquo what are the defects with commission agents
a) Favourable to buyer [ ]
b) High commission [ ]
c) Misguide [ ]
d) Lack of knowledge [ ]
e) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
48) Commission paid to commission agents
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
49) Do you have given any complaint against agent to the APMC about more
commission
a) Yes [ ] b) No [ ]
136
50) Whether sufficient number of Hamals are available at the APMC
a) Yes [ ] b) No [ ]
51) The cost of cooli to Hamals
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
52) Are you satisfied with hamals services
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
53) Do you have given any complaint against hamals to APMC for high cooli
a) Yes [ ] b) No [ ]
54) Cooperation of officials of the APMC
a) Fully cooperated [ ] b) Partly cooperated [ ]
c) Not cooperated [ ] d) Neither cooperatenor not [ ]
55) What are the defects you found with APMC officials
a) Non-cooperative [ ] b) Favourable to buyer [ ]
c) Laziness [ ] d) Expect money [ ]
e) Improper market data [ ] f) Others (Specify) helliphelliphellip
56) Do you have given ay complaint to higher officer against defaulting
APMC officer
a) Yes [ ] b) No [ ]
57) Do you have experienced following malpractices at the APMC
a) Inadequate grading [ ]
b) Inadequate packing [ ]
c) Unfavourable weighment [ ]
d) Excess samples [ ]
e) Inadequate supervision [ ]
f) Excess market charges [ ]
g) More favourable to buyer [ ]
h) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
58) Do you have any disputes with buyer
a) Yes [ ] b) No [ ]
59) What are the main causes for disputes in APMC
a) Price of produce [ ]
137
b) Quality of produce [ ]
c) Weighment [ ]
d) Timing of payment [ ]
e) Grading of produce [ ]
f) Warehousing [ ]
g) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
60) Which is the best way for settling of market disputes
a) Secretary level [ ] b) Dispute committee [ ]
c) Arbitration [ ] d) Court [ ]
61) Whether market committee officers supervises the services
a) Yes [ ] b) No [ ]
62) Do you find that APMC helped you in getting better prices for your
produce
a) Yes [ ] b) No [ ]
63) Your opinion about quality of service at APMC
a) Very good [ ] b) Good [ ]
c) Bad [ ] d) Very bad [ ]
e) Either good or bad [ ]
64) What is your opinion about customary deduction
a) As per bye laws [ ]
b) More than systems [ ]
65) Give your suggestions for making improvement in quality of services at the APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
138
APPENDIX-II QUESTIONNAIRE FOR RESPONDENTS
A) Personal Information
1) Name of respondents helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Age of respondents in years
a) Below ndash 20 [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
3) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P and G and others [ ]
4) Religion
a) Hindu [ ] b) Muslim [ ]
c) Christian [ ] d) Others (Specify) helliphelliphelliphelliphelliphellip
5) Nature of participant in APMC
a) Commission agents[ ] b) Hamals [ ]
c) Trader [ ] d) Grader [ ]
e) Processor [ ] f) Broker [ ]
g) Others (Specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6) How long you are in market yard
a) Below 10 years [ ] b) 11 ndash 20 [ ]
c) 21 to 30 [ ] d) 30 and above [ ]
7) Factors motivated for choosing this profession
a) Heredity [ ] b) More profitable [ ]
c) Uncertain induced [ ] d) Unemployment [ ]
e) Other specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
8) Are you satisfied with present marketing practices at APMC
a) Yes [ ] b) No [ ]
9) If lsquoNorsquo give the reasons for unsatisfaction
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
10) Are you satisfied with farmerrsquos activeness in APMC
a) Yes [ ] b) No [ ]
139
11) If lsquoNorsquo suggest to make them more active in market yard
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
12) Are you getting following facilities at the APMC yard
a) Water [ ]
b) Canteen [ ]
c) Communication [ ]
d) Marketing information [ ]
e) Transport [ ]
f) Health and sanitation [ ]
g) Banking and finance [ ]
h) Other (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13) Do you satisfied the above facilities at the APMC yard
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
14) Are you satisfied with quality of marketing of services at the APMC
Services Fully
satisfied
Partly
satisfied
Not
satisfied
No
response
a) Assembling
b) Processing
c) Grading
d) Storing
e) Weighment
f) Banking and finance
g) Rest house
h) Insurance
15) What suggestions do you want for efficient operations of APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
140
APPENDIX-III
PHOTOGRAPHS
ENTRY GATE OF APMC
ROAD FACILITY INSIDE APMC
141
WEIGHING GROUNDNUTS IN APMC
PROCESSING OF GROUNDNUTS
142
FILLED COTTON BAGS
WEIGHING TUR IN APMC
143
STORING GROUNDNUTS OUTSIDE
PROCESSING GRADING AND WEIGHING BAJRA
144
FILLING OF SUNFLOWER IN BAGS
LOADING OF COTTON BY LABOURS
- Table-317
- lsquotrsquo - Test Values
- Table-327
- Pearson Correlations
-
iii
iv
ACKNOWLEDGEMENT
With great sense of gratitude I extend my special thanks to the UGC SWRO
Bangalore for funding me to undertake the Minor Research Project
I extend my sincere thanks to all the staff of Government First Grade College
Shorapur for their kind cooperation
I am very much grateful to DrSantosh Singh Associate Professor
Government First Grade College Sedam for his help and cooperation during the
course of my research
I would also like to thanks to Micro Computers Gulbarga for their excellent
job of compiling this Minor Research Project in time
SANGAPPA RAMPURE
v
CONTENTS
Sl No Chapter Page
No
1 INTRODUCTION AND RESEARCH DESIGN 01
2 FUNCTIONS AND TRADE PRACTICES ON APMCs 11
3 CUSTOMER PERCEPTION ABOUT MARKETING MANAGEMENT OF APMC IN GULBARGA DIVISION
42
4 PERFORMANCE EVALUATION OF APMCs 89
5 FINDINGS SUGGESTIONS AND CONCLUSION 122
6 BIBLIOGRAPHY 126
7 APPENDICES 131
1
CHAPTER-I INTRODUCTION AND RESEARCH DESIGN
11 INTRODUCTION
India is such a vast country which derives fifty percent of its national income
from agriculture The marketing methods in agricultural produce different from
country to country state to state and also within state This gives considerable scope
for the study of marketing of agricultural produce in the various states of the country
Agricultural marketing practices need to be uniform in the interest of developing
wider markets for better prices For this reason only many states have passed acts
regulating the marketing of agricultural produce in the state to reduce them to a
common practice and to avoid the exploitation of the primary producers and also to
give better prices for his produce
Organized marketing of agricultural commodities has been promoted in the
country through a network of regulated markets Most of the State governments and
Union Territories have enacted legislations (APMC Act) to provide for regulation of
agricultural produce markets While by the end of 1950 there were 286 regulated
markets in the country today the number stands at 7921 (3132014) Besides the
country has 29191 rural periodical markets about 15 per cent of which function
under the ambit of regulation The advent of regulated markets has helped in
mitigating the market handicaps of producerssellers at the wholesale assembling
level But the rural periodic markets in general and the tribal markets in particular
remained out of its developmental ambit
The central government has advised states and union territories to amend their
respective APMC laws in order to avail assistance for developing and strengthening
agricultural marketing infrastructure In the present scenario with the changing
picture in world trade system there has been growing demand for de-regulating the
agricultural markets and establishment of private markets some initiatives have
already been taken in this direction The central government has proposed
amendments in state Agricultural Produce Marketing (Regulation) Act The same is
expected to take place in the near future The said amendments have been proposed
2
with the aim of helping the farmers and hence market committees are obliged to
implement these amendments The Karnataka State Agricultural Marketing Board was
established on 1st September 1972 as per section 100 of the Karnataka Agricultural
Produce Marketing (Regulation) Act 1966 and Rules 1968 The Board acts as a
liaison agency between the market committees and the government of Karnataka for
all-round development of agricultural marketing in the state
12 NEED FOR THE STUDY
The marketing services available in the regulated markets have been very
useful in overcoming various problems of sellers of farm produce like the middle
menrsquos malpractices distress and forced sales at village level under weighing and
other malpractices by the middlemen and also the village money lenders etc
Majority of the agricultural produce is being sold at the village itself by
farmers immediately after harvesting due to urgent financial requirements and lack of
transport facilities Besides a large number of small holders of agricultural land
Hence the quantity of produce is too small for brining it to urban market place for the
purpose of selling at better prices
Establishment of regulated markets in various urban centers has facilitated
marketing of surplus agricultural produce at fair and reasonable prices In evaluating
the government marketing intervention programmes a distinction has to be made
between (a) the nature and degree of marketing intervention to achieve a defined
policy objectives and (b) the most cost effective way of implementing the marketing
intervention scheme However the centers of regulated markets are inadequate in
relation to the number of villages and vast farm sector Hence there is scope for
increasing of number of APMCs and submarket yards in addition to improving the
functioning of existing APMCs to ensure better services and adequate infrastructural
facilities at the premises of these markets A majority of these regulated markets
suffers from certain deficiencies in their functioning
In view of this the present study is undertaken to analyze the extent to which
the inadequacy of marketing of services are encountered by the farmers and other
functionaries in the APMC at Gulbarga division as a whole The research confines
3
itself to the management of APMCs in Karnataka in general and Gulbarga Bidar
Raichur Koppal and Bellary district APMCs in particular The total APMCs consist
for the present study is five APMCs from each district of study area
13 REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related
areas of the subject to find out and to fill up the research gaps Literature on
agricultural marketing can generally be found in a number of books that are available
on agricultural economics rural marketing and regulated markets Only very few
studies were undertaken on APMC and its performance in both agricultural marketing
and development The important studies relating to the present investigation are
referred below
Gopal Rao (1974) has undertaken the study on APMCs and has analyzed their
working in detail The author has confined his study to the four districts of Bombay
Karnataka region through a survey of the markets in the region
Ravirsquos (1975) work analyses the marketing problems of coconut and copra in
Tipatur and Arasikere regulated markets of Karnataka In this area coconut marketing
is dominated by village sales (66) followed by sales through commission agents
(16) and through wholesalers (about 11) and the rest directly by the farmers
(about 7)
Bhogappa (1982) has undertaken the study on ldquoMarketing of agricultural
produce in Gulbarga division of Karnatakardquo which covers only the APMCs of
Gulbarga Revenue Division He has made a special study of the effects of draught and
draught prone areas He has analyzed the special problems of the markets in ldquoAyacutrdquo
areas
Ramaswamy (1984) has submitted the thesis on ldquoA Critical Study of the
Working of Regulated Markets in Tamil Nadu with special reference to Coimbatore
and Periyar districtsrdquo This was the first attempt to assess the applicability of the Act
in Tamil Nadu which has thrown a light on cropping pattern
4
Rayudu (1985) highlighted the five aspects of cardamom marketing designed
by Cardomon Board The Board collects data on global requirements position of
supply conducting market survey for planning implementing and evaluation The
findings in this study could be useful in suitable applications for the finer aspects in
the marketing of similar products
Biradar (1989) observed that there was no incentive scheme for farmers It is
therefore necessary to start the incentive programmes like providing higher prices for
their commodities agricultural inputs at concessional rates and charging lower market
make regulated markets more attractive to the farmers These suggestions have a good
deal of subsidy components on the part of the Government
Selvamurugan and Mohan Sundaram (1990) in their study on the Coimbatore
district concluded that the crossandra in Coimbatore district concluded that the
corrssandra farmers share had been reduced from 3256 percent to 2423 percent
during the lean season Though the street vendors margin had also been reduced from
2328 to 1460 percent the share of commission agents and wholesalers had increased
to large extent ie from 4416 to 6107 per cent
Reddy (1991) conducted a study on marketing channels and marketing
margins of maize in Andhra Pradesh The study revealed that the producers share was
significantly high (8664 to 8687) in the case of Producer to Retailer to Consumer
channel as compared to corresponding share of producer (6314 to 7067) in case of
second channel ie Producer to Wholesaler to Retailer to Consumer
Nagraj and Chandrakant (1992) conducted a study on market performance of
perishables In the study the major marketing channel for vegetables was as below
Producer to Commission agent to Retailer to Consumer
The study could be of much relevance for researches in similar areas of agricultural
marketing
Biswas and Karpate (1994) observed the importance of Maharashtra State
Tribal Development Corporation (MSTDC) in marketing of minor forest produce
The tribal of the area were assured of basic minimum price for their produce notified
5
by the collector of the district The payments in normal course were made
immediately and saved them from exploitation by the middlemen
Mundinamani and Naik (1994) concluded that the per marketing cost of potato
was Rs 2074 as compared to Rs 2261 for brinjal Rs 2325 for onion Rs 2147 for
tomato Rs 5692 for dry chilly Rs 2975 for cotton and Rs 1936 for groundnut
The factors for differences in marketing cost of such agricultural produce need to be
probed by further studies
Atibudhi and Prusty (1995) have studied the marketing margins of Niger in
Rayagada district of Orissa The study concluded that the presence of co-operative
societies in marketing channel reduces the marketing margins and increases the
producers share in consumers rupee Marketing costs were the lowest in the co-
operative channel But marketing costs for storage procurement and transport were
higher for the same
Pawar (1996) has conducted a study on marketing surplus and price spread of
groundnut in Marathwada region of Maharashtra which is the most important
groundnut growing zone where 49 percent of the land is used to grow groundnut The
study concluded that distress sale of ground nut was found in small farmers but
medium and large farmers kept their surplus for future sale to get maximum price
Krishnaih (1998) has conducted a study to identify the marketing channels of
cotton and to analyze the price spread in these channels where he has suggested 7
different channels on distribution of cotton His effort is quite appreciable and it offers
for further research work on the topic However he found that while marketing of
cotton (kapas) majority of the farmers chose the channel in which the role of
commission agent was prominent
Paty (2000) applied the techniques of marketing information system the
agricultural marketing He has explained the concept with flow diagram of the
Integrated Agricultural Marketing Information System which is quite useful for its
practical applications
6
Basavaraj et al (2001) have made it very clear in their article that Karnataka
ranks fifth among the oil seed producing states in the country with an area of
1200135 hectares and a production of 945501 tones during 1994-95 Groundnut
sunflower safflower sesamum and castor were the major oil seeds produced in the
state They have made good policy implications in their study
Jayarathnam (2002) in her study on farmers market (Uzhavar Sandhai) in
Tamil Nadu pointed out the problems in cultivation transportation marketing and
pricing of vegetables Even she has given strengths weaknesses opportunities and
threats of vegetable marketing in Uzhavar Sandais of Tamil Nadu
Von Oppen and Gabadambi (2002) in their research paper have observed
market access impact on agricultural productivity lessons from thirteen chapters in
which they have concluded by stating market access and infrastructure are powerful
tools to commercialize agriculture in developing countries They increase aggregate
productivity initially via specialization and at a later stage via intensification
Sherman Roger (2007) undertook a study on market regulation gives readers
the economic intuition to analyze the history of antitrust and regulation diagnose
current corporate strategy and evaluate possible policy recommendations Roger
Sherman grounds modern examples in historical context and develops thought
provoking discussions to motivate readers from many different backgrounds
Introduction to market regulation competition as a market regulator problems for
competition as regulator
14 STATEMENT OF THE PROBLEM
The farming is largely dependent on the efficient marketing of the products
So the governments have to be very particular and watch all the market operations to
remain self-sufficient in food and to produce the goods for export to other countries
In the process of planning though the agriculture was given high priority for its
development but much attention was not given for the improvement of marketing
But in various states the agricultural marketing boards were established with the
objective to remove all the problems of markets and to regulate the markets for
increasing the efficiency in marketing It is found from various previous studies that
7
the regulated markets donrsquot have adequate and scientific grading facilities resulting in
substantial loss to the farmers excess charging of deductions in the form of
weighment commission etc are still prevailing at present in the regulated markets by
the commission agents or traders while making the payments to the farmers Hence
there is a need to undertake a study of the working of regulated markets in relation to
the responses of producer seller and other market functionaries regarding various
aspects of management of regulated markets The present research work attempted to
examine how the organized markets are working and to assess their role in
facilitating an orderly marketing of agricultural produce in the selected APMCs in
Gulbarga division
On the top of it the Gulbarga division is highly backward with all the
indicators of the backwardness which leaves considerable scope for exploitation by
the money lenders-cum-merchants These contrasts in the division call for different
approaches to marketing management and hence the study reveals interesting results
valuable for policy decisions This study of the division of Gulbarga is of immense
benefit for the economic strategy in the marketing of agricultural produce The study
is also aimed at pointing out various malpractices prevailing in the marketing
management lack of infrastructure storage facilities credit availability and effective
central markets this has resulted lack of innovations in agricultural production and
operations Many studies have been carried out to assess the impact of various
malpractices prevailing in marketing management on production of agricultural
produce However no study has been made to assess the role played by the APMCs in
the agricultural marketing in Gulbarga division highlighting whether these have
succeeded in achieving its objective if not what were the causes and what corrective
measures would have helped it in over coming the problems The present study is a
contribution in this direction
15 OBJECTIVES OF THE STUDY
The following are the objectives set for the study
1) To study the role of APMCs in filling the gaps and deficiencies regarding
agricultural marketing in Karnataka
2) To understand the amenities and facilities at the APMCs and to find out
inadequacies prevalent in APMCs in Gulbarga division
8
3) To know the trade practices in the area under consideration and the extent of
benefits to sellers through organized markets
4) To analyze the farmers responses towards regulated markets as well as market
participants
5) To critically examine the over all performance of APMCs and to identify the
area of improvement in the efficiency and also to offer suggestions to develop
an effective marketing system in Gulbarga division
16 RESEARCH METHODOLOGY
The study is mainly based on both primary data and secondary data The study
covers one broad division of the Karnataka state a survey method is adopted ie
through the pre-tested interview schedules addressed to the sample size of farmers and
market functionaries An unscheduled interview is also conducted to the regional
officials of KSAMB project officer and agricultural departments as well as APMCs
officials
Separate schedules were drawn tested and addressed to market committees
agricultural producers and market functionaries The questionnaires administered to
farmers were 250 in total at the rate of approximately 20 from each district market
All the farmers were representative producers for each market categorized on the
basis of the land holding and also marketable surplus brought to the market for sale
The questionnaire administered to the market participants were 150 in total
covering 20 market functionaries from each district in total sample size market
functionaries includes traders (wholesaler and retailer) commission agents exporters
importers processors and hamalies etc
17 SAMPLE DESIGN
A stratified random sampling method was adopted to drawn the final sample
The Gulbarga division consist of Bidar Gulbarga Raichur Koppal and Bellary
district from each district approximately 50 farmers were selected along with this 30
market functionaries from each district were selected
9
18 DATA ANALYSIS
The data collected from both primary and secondary was processed and
reduced to simple tables in order to present the matter clearly The suitable financial
statement analysis techniques were used to draw the correct conclusion Ratio
analysis which is most powerful and universally used technique for the analysis of
financial performance of APMCs in Gulbarga division
Analysis of variance technique is employed to test whether there is any
statistical significance in sales in different markets Apart from this averages and
percentages are used Graphs maps chart and diagrammatic representation of data
was suitably employed to highlight the significance of the data
19 PERIOD OF THE STUDY
The present study covers the period of five years commencing from 2009-10
to 2013-14 The performance of various items such as sales amenities infrastructure
and facilities of APMCs in Gulbarga division was studies for five years
Due to the wide operational activities of APMCs for agricultural marketing the
study period limited to five years to analyze its role in Karnataka with reference to
Gulbarga division
110 LIMITATIONS OF THE STUDY
The study is not completely free from limitations
1) The study is restricted only Gulbarga Division
2) Only five years period is taken for the purpose of the study because of time
constraints
3) The study is depending on the primary data also some of the respondents give
the poor response however every care has been taken to ensure that
authenticity of the data gathered
4) Some of the markets and the sub markets are so small and irresponsible that no
data is available nor any records of arrivals and disposals The records
maintained at the submarkets in the division are probably not available and
non reliable
10
111 CHAPTERISATION OF THE RESEARCH WORK
The whole research study has been presented in seven chapters
The First chapter deals with the introduction need of the study review of
some of important previous literatures statement of the problem
objectives of the study research methodology employed period of the
study limitations of the study techniques used for data analysis as well as
the chaptarisation of the study
The Second chapter deals with the various functions of the APMCs their
activities And also contains in brief about the trade practices preventing at
present in Gulbarga division as well as the data collected from the market
participants through questionnaire were analyzed to know the level of
satisfaction towards the preventing trade practices in selected APMCs in
Gulbarga division
Chapter Third deals with the opinion collected from the farmers towards
the marketing of their produce as well as their attitude towards regulated
market
Chapter Fourth deals with the financial performance and position during
five years of study period
The Fifth chapter deals with the findings suggestion and conclusions
11
CHAPTER-II FUNCTIONS AND TRADE PRACTICES ON APMCs
INTRODUCTION
The functionaries have their own set up They may be individuals partners or
cooperatives who may buy and sell on ready and future basis at a price determined by
forces of supply and demand Each functionary renders some services in the process
of marketing and also earns a varying margin of profit for himself This procedure
makes marketing rather complicated and inflates the price of the produce The nature
of some of the agricultural products eg their bulk form and perishability and their
seasonal availability further add to the complexity of agricultural marketing
Farmers and the various functionaries working in market face numerous
problems in orange fruit trading Farmers either sell their produce to the pre-harvest
contractor before harvest or they sell it in the nearby Agricultural Produce Market
Committee
When the farmers sell their produce in the Agricultural Produce Market
Committee they face following problems
High commission charges
High transportation and loading and unloading charges
No guarantee of remunerative prices
Delayed payment by commission agents
Functionaries working in the market also face various problems The pre-
harvest contractors who purchase the fruits from the farmers face the problems while
dealing with the farmers These problems arise mainly due to
Lapses on the part of farmers in the management of garden resulting in
deterioration of quality of fruits
Problems of natural calamities (theft of fruits losses due to rains pest etc)
Problems of storage facilities (lack of cold storage at local place)
Packing problem (costly packing material and non-availability of skilled
labour)
12
Transport problems (high transportation cost and non-availability of transport
means in time)
Grading problems (non-availability of suitable mechanical graders)
The success or failure of any market depends upon the functionaries existing
in the market Hence the role of functionaries is very important in smooth conduct of
market functions
It is compulsory according to KAPM (R) Act 1966 for every functionary
functioning in the APMCs to take a valid license from the respective APMC where it
is established by paying the necessary fees to the APMCs
Description of Market Functionaries
Following is the list of important functionaries existing in different APMCs of
the study area
i) Commission agents ii) Traders
iii) Retail traders iv) Weighmen
v) Hamals vi) Lady hamals
vii) Transporters viii) Cartmen
ix) Brokers x) Exporters
xi) Importers xii) Processors
xiii) Ginners xiv) Pressors
xv) Crushers xvi) Stockiest
xvii) Warehousemen
It is very essential to understand each of these functionaries and their activities
in detail
i) Commission Agents
Commission agent means a person who in the ordinary course of business
makes or offers to make a purchase or sale of agricultural produce on behalf of the
owner or seller or purchaser of such agricultural produce for commission
13
Commission agents are called so because of the commission they take from
the traders on the total sales as fixed by the government They facilitate farmers to
sell the agricultural produce brought into market yard for a good price at an
appropriate time However as per the bye-laws of market committees some person
cannot act both as commission agent and trader
Commission agents are the connecting link between the farmers and the
buyers When the crop grown by the farmer enters the market it goes to the
systematically channalised commission agents
The agents help the market committee to classify the goods brought by the
farmers and getting them weighed by the specified weighmenThese agents sell the
goods in the market on behalf of farmers and if a farmer does not want to sell his
goods for the time being at the prevailing market price the agents stores the goods in
their godowns and takes the responsibility of preserving the goods These agents not
only help the buyers to get a variety of goods at a place but also help the farmers to
sell their goods effortlessly In the form of market fee the buyer has to pay 1 percent
of the sale price of goods which is collected by the agents and credited to the market
committee Agents also have the responsibility of crediting the total amount of the
sales to the farmers The agents enjoy the right to extract the full amount of the
produce from the buyers
ii) Traders
Trader means the person who buys notified agricultural produce either for
himself or as agent of one or more persons for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of domestic
consumption
The trader will fix a reasonable price for the farmers produce in consolation
with the commission agents and with the consent of the farmers they purchase the
produce and the full amount will be paid to the commission agents Sometimes the
traders buy the produce for their own business purposes or on behalf of big companies
or businessmen Under these circumstances the goods will be sent to the respective
people
14
iii) Retail Traders
Retail trader mean the person who holds in stock at a time not exceeding
fifteen quintals of two or more kinds of agricultural produce together or not
exceeding six quintals of a single agricultural produce
The major function of a retail trader is to undertake retail salesRetail sale
means the sale of notified agricultural produce to a consumer for domestic
consumption not exceeding such quantity as the market committee may by bye laws
or standing orders determine
Usually they buy agricultural produce from the market yard and sell it in retail
market established in cities They assist the small buyers in procuring the agricultural
produce in small quantities for the purpose of domestic use
iv) Weighmen
As their name itself suggests the weighmen supervise the weighment of the
agricultural produce entering into the APMC yard
Certain produce such as cotton get weighted as soon as they enter the market
yard while the rest of the produce are weighted after sales Under these
circumstances it becomes the duty of the weighmen to safeguard the interest of the
farmers and to see that there is no discrepancy in weighing their goods Day to day
report of the produce weighed along with their weighment slip has to be filed with the
market committee by the weighmen It is the duty of these weighmen to visit the
various shops in the market yard and to supervise the weighing of different goods
v) Hamals
In order to facilitate the smooth functioning of the various activities of the
marketing committee hamals perform a very special duty As these people perform a
strenuous physical work they are called hamals
The work of the hamals start with the produce entering into the market yard
and ends with the produce going out of the yard When the farmer brings his produce
15
into the market yard either by a cart tractor or by lorry the hamals unload the
produce at the commission agents shops If the produce is cotton the hamals get it
weighted immediately after unloading and if the produce are other than cotton they
are stored in the godowns of the commission agents On the day of the tender or
auction the samples of the various produce are kept aside by the hamals who help the
traders to fix a reasonable price for the produce After the completion of business
deals except cotton all other produce are weighed and loaded into the vehicles of the
traders To perform these various tasks the hamals charge the amount fixed by the
APMC and get it from the concerned parties
vi) Lady Hamals
The female hamals who are working in APMCs by procuring a valid license
are known as lady hamals Along with the male hamals lady hamals are also found
in some of the APMCs like Hubli Gadag and Ranebennur They perform activities
like screening cleaning assisting males hamals in weighment keeping samples for
tender etc
vii) Transporters
In the preview of market committee the people who help to transport the
goods from one place to another are called transporters The tractors and truckers are
performing the duties of transporters Transporters are considered to be the important
market functionaries working in APMC yard These peoples are helping the farmers
to bring the agricultural produce from the place of production or agricultural yard to
market yard Existence of large number of transporters in the market yard helps for
the smooth functioning of marketing activities
viii) Cartmen
Along with the modern transportation facilities such as trucks and autos still
cartmens are playing greater role for the smooth functioning of market activities
Loading and unloading of bags from trucks to godown and vice-versa are performing
by cartmens When the agricultural produce need to transfer from one place to another
place within the market yard is done by cartmen
16
ix) Brokers
Brokers are the agents middle menrsquos in the market working as link between
farmers and buyers In many ways brokers are assisting the farmers by giving
valuable advises with regard to financing of selling to get better prices At the same
time they also help by supplying bulk agriculture produce to buyer
x) Exporters
Exporter means the person other than a producer who exports goods or cause
goods to be exported on onesrsquo own account or as agent of another person from the
market area outside such area for the purpose of selling processing manufacturing or
for any other purpose except for the purpose of onersquos own domestic consumption
The meaning of exporter shall not include a public carrier
At times when there is a bumper crop the poor farmer has to incur heavy
losses During such moments of crisis the exporters come into the scene and purchase
the crops from the farmers and export the same to some other markets for sale or
processing This brings about a balance between the demand and supply and saves the
farmers from the crisis
xi) Importers
Importer means the person other than a producer who imports goods or causes
goods to be imported one onersquos own account or as agent of another person from the
outside market area with in the such area for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of onersquos own domestic
consumption The definition of importer shall not include a public carrier
Function of Importers
As and when there is scarcity of any goods in the market and there is a lot of
demand for the same and considering the overall demand and supply of the market
the importers import the goods from different markets and sell them in the local
market
17
xii) Processors
The goods purchased at the market yard have to undergo different stages and
processes to finally reach the customer In order to facilitate this work different people
perform their duties These people are called processors viz gins press
decorticators oil mills flour mills and dal mills etc these different industries perform
their own essential duties
These industrialists perform their duties to see that the goods available in the
market in their crude form are made ready for use After having purchased the goods
they make them ready for use with the help of these processors On certain occasions
the processors themselves purchase the goods process them and self them when they
are ready for use These processors also should have the license from the market
committee
xiii) Ginners
They are the licensed functionaries who are performing ginning activities of
cotton by procuring valid license from APMCs The purchasers of cotton want to
convert their unginned cotton into ginned cotton In such case ginners will help them
to gin their cotton and separate pure cotton from cotton seeds
xiv) Pressors
Once the cotton is ginned it will come to pressors for conversion into cotton
bales where licensed pressors undertake the work of pressing In order to transport
the cotton from the place of growing and marketing to textile mills at different places
they have to be systematically packed in compact form of cotton bails The ginned
cotton will come to press of the pressors where they press and pack it properly into
cotton bales
xv) Crushers
There are certain licensed crushers who perform the activity of crushing oils
seeds into oil The traders who buy oil seeds from the market wants to convert it into
oil for further marketing and transportation In such case crushers situated near the
various market yards will help them to get pure oil by getting their seeds crushed and
screened at their crushing units
18
xvi) Stockiest
The people who purchase the produce at the market yard and store it for some
time and then sell it are called stockiest The stockiest also should have license
When all the farmers bring their produce to the market yard there will be glut in the
market supply and deficiency of the purchasers which cause the prices to come down
Under these circumstances to protect the farmer from the loss the stockiest purchases
the goods at the market yard and stock it in their storehouse to sell them when there is
a demand for that commodity
xvii) Warehousemen
The farmers are provided with the warehouses to store the produce which
come under the jurisdiction of the market committee ldquoWarehouserdquo means any
building structure or other protected enclosure which is or may be used for the
purpose of storing agricultural produce being goods on behalf of the depositors but
does not include cloak rooms attached to hotels railway stations the premises of
other public carriers and the life The person who supervises the warehouse activities
is called warehouseman
A farmer may not want to sell his produce because of the fall in the prices or
may want to store the goods for the purpose of sowing but does not have enough
space to store Having realized this problem of the farmers the government has
provided the warehouses in all the important market yards so that the farmers can
store their goods as long as they want to
The main task of the warehousemen is to stock the goods of the farmers
properly by sprinkling pesticides and protecting them from the insects and pests and
to return the goods of the farmers to them when they ask for it While performing this
task the warehousemen charges certain amount which is specified by the
government The farmer has to pay the amount towards stocking of his goods
In this way for the smooth sailing of the market committees activities each
and every market functionary has to perform his duties systemically
19
Market Functionaries in Selected Market An Overview
In all the selected APMC for the present research work ie 15 APMC there
were 26194 market functionaries operating in various markets of this division The
district wise and sample wise break up of the same is revealed in the tables from 21
to 25
As on the 2007-98 the total of local market participant in three APMC taken
for the present research is Gulbarga-5099 Bidar-2790 Koppal-5234 Raichur-7182
and Bellary-5889 There are 2046 lsquoArsquo class traders 1786 lsquoBrsquo class traders 1410 lsquoCrsquo
class traders 6920 lsquoDrsquo class traders 2794 commission agents 1496 exporters 1526
importers 676 stockiest 358 processors 172 crushers 203 ginners 28 pressers 29
warehousemen and 10775 hamals operating in the various markets in the Gulbarga
division The highest number of traders commission agents and other functionaries
are in Raichur district Bellary district followed by Gulbarga district being nearly 13
of the total number in the division
Market Functionaries at Selected APMC in Gulbarga District
Gulbarga APMC is a very big APMC in the Gulbarga district as compared
with other APMC in the same district Table 41 explains the total market
functionaries working in the not only Gulbarga APMC but also APMC Shorapur and
APMC Shahapur It is far as size is considered APMC Shahapur is a small APMC in
the Gulbarga district
The below Table 21 reveals that the total number of market functionaries
which was 3536 in 2009-10 in Gulbarga APMC has increased by around 124 percent
in 2013-14 It is evident from the same that coolies traders exporters importers and
processors holding maximum share in total market functionaries in the total
participants in the market
In case of the APMC Shorapur the total position of market participant was
gradually increased during first three years ie from 576 in 2009-10 to 845 in 2010-
11 and 910 in 2011-12 but it decreased to 845 in 2012-13 Again coolies and traders
were become the major portion in total market participants followed by commission
agents and retailers
20
Table-21
Licensed Market Participants in Selected APMCs of Gulbarga District
Sl No Market Participant
APMC Gulbarga APMC Shorapur APMC Shahapur
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 407 419 418 405 426 60 203 254 178 180 37 60 51 46 128
2 Commission agents 227 235 234 213 218 45 58 64 58 69 17 17 17 17 22
3 Exporters 419 424 424 411 416 10 32 11 03 03 28 35 32 25 130
4 Importers 405 411 409 391 396 08 24 09 02 02 25 30 38 25 126
5 Retailers 105 108 108 94 106 25 76 26 02 02 20 32 30 23 51
6 Processors 350 358 356 341 348 01 02 02 01 01 01 01 01 01 10
7 Ginners 14 15 15 15 16 01 02 01 01 01 01 01 01 01 05
8 Pressers 04 04 04 04 04 03 04 02 01 01 02 02 02 02 05
9 Stockiest 28 30 30 25 28 14 42 16 01 01 10 15 12 10 15
10 Weighmen 75 78 77 75 75 13 14 14 14 14 02 02 02 02 05
11 Crushers 15 18 18 18 18 03 05 04 01 01 02 02 02 02 06
12 Warehousemen 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01
13 Coolies 1444 1545 1540 1476 1485 378 373 496 571 560 75 92 99 99 110
14 Transporters 42 54 52 41 43 08 09 10 11 11 28 33 33 18 58
Total 3536 3700 3686 3510 3580 576 845 910 845 847 249 323 321 272 672 Source Annual reports of APMC for 2009-10 to 2013-14
21
The situation in APMC Shahapur was not much different when it compared to
APMC Gulbarga and APMC Shorapur A steady growth in total market participants
was registered in 2013-14 ie 672 with annual aggregate growth of 3398 percent
during the period under research Traders commission agents and coolies were
acquired majority position in total market functionaries
The below Table 22 depicts the total licensed market participants operating in
the selected APMCs of Bidar district A keen observation of year wise growth in the
various categories of market participants shows that coolies are steadily increased in
APMC Bidar from 68 in 2009-10 to 140 in 2013-14 In APMC Bhalki it was from 49
in 2009-10 to 56 and in APMC Aurad from 19 to 34 during the same period
It is interesting to note in Bidar APMC that stockiest were the dominant
portion in total market functionaries followed by experts commission agents and
importers The same situation was also found in other five APMCs ie Bhalki and
Aurad which are taken as sample from the Bidar district The percentage of stockiest
as on 2013-14 in total market participant was in Bidar APMC 1694 Bhalki APMC
ndash 1850 and 1859 in APMC Aurad
22
Table-22
Licensed Market Participants in Selected APMCs of Bidar District
Sl No
Market Participant
APMC Bidar APMC Bhalki APMC Aurad
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 171 182 195 186 196 151 153 146 156 160 110 115 128 138 142
2 Commission agents
145 151 180 175 190 136 139 145 150 156 102 112 115 128 132
3 Exporters 150 162 175 12 172 139 141 148 151 155 89 95 98 108 112
4 Importers 141 145 161 152 162 120 122 126 120 122 85 92 95 98 104
5 Retailers 10 15 28 25 35 05 06 09 10 10 03 04 06 08 08
6 Processors 03 04 04 03 04 02 02 02 02 02 01 01 01 01 01
7 Ginners 02 02 02 02 02 01 01 01 01 01 01 01 01 01 01
8 Pressers 01 01 01 01 01 01 01 01 02 01 01 01 01 01 01
9 Stockiest 193 198 220 205 215 150 151 154 155 161 106 112 115 119 123
10 Weighmen 33 42 55 52 65 23 24 26 28 30 13 15 21 28 30
11 Crushers 02 02 03 02 03 01 01 01 01 01 01 01 01 01 01
12 Warehousemen 01 01 01 01 02 01 01 01 01 01 01 01 01 01 01
13 Coolies 68 70 110 110 140 49 50 52 57 56 19 24 30 35 37
14 Transporters 10 05 15 24 23 08 08 09 13 13 04 06 08 12 17
Total 930 980 1150 1100 1210 787 800 821 846 870 536 580 621 687 710 Source Annual reports of APMC for 2009-10 to 2013-14
23
The overall growth in the market participants in Bidar district from the same
table reveals that the annual aggregate growth in APMC Bidar was highest ie 602
percent over the previous year it was 210 percent in APMC Bhalki and 649 percent
in APMC Aurad This clearly indicates that APMC Aurad is fast growing APMC in
terms of market functionaries followed by APMC Bidar and APMC Bhalki
A cursory look at the below Table 43 reveals that coolies traders
commission agents and importers are the major category of market functionaries
operating in the selected APMCs in the Koppal district during five years study period
ie 2009-10 to 2013-14 are presented in Table 23 The total number of market
functionaries in APMC Koppal which was 1054 in 2009-10 increased to 1186 in
2013-14 with percentage growth of 1188 during period under study In case of
APMC Gangavati it was 1034 percent negative and in APMC Kustagi positive
growth of 1752 percent during the same period The number of traders increased
marginally during the study period but the number of commission agents was
marginally decreased in all the three APMC selected from the Koppal district as
sample the other market functionaries increased in large numbers thus making the
proportion at commission agents to drop A broad view of licensed market
functionaries in selected APMC in Koppal depicts that APMC Gangavati was leading
APMC in terms of total market participants followed by APMC Koppal and APMC
Kustagi during five years plan period
24
Table-23
Licensed Market Participants in Selected APMCs of Koppal District
Sl No Market Participant
APMC Koppal APMC Gangavati APMC Kustagi
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 115 108 127 116 144 518 480 456 479 497 106 95 103 63 88
2 Commission agents 102 107 90 98 107 468 417 360 380 387 141 139 142 124 153
3 Exporters 95 123 92 115 105 511 480 455 489 495 90 77 80 46 65
4 Importers 123 146 120 122 103 598 479 455 488 496 17 12 13 08 64
5 Retailers 15 22 14 15 14 124 98 72 90 87 11 11 14 11 -
6 Processors 04 05 04 05 06 95 91 87 90 97 02 02 02 02 02
7 Ginners 02 02 02 02 02 - 02 - - - - - - - -
8 Pressers 02 02 02 02 02 - - - - - - - - - -
9 Stockiest 60 179 58 70 65 518 480 453 488 495 52 52 63 - -
10 Weighmen 10 15 09 08 10 03 03 04 04 03 06 06 06 06 06
11 Crushers 05 11 05 06 08 04 01 02 02 02 03 03 02 02 -
12 Warehousemen 02 04 02 03 04 02 02 02 02 02 01 01 01 01 01
13 Coolies 452 502 450 544 535 553 370 324 393 417 372 363 345 273 468
14 Transporters 067 118 59 33 36 26 13 16 15 14 04 05 03 02 02
15 Temporary purchasers - - - - - - - - - - 45 41 - - 150
Total 1054 1344 1034 1139 1186 3423 3001 2784 2995 3069 850 807 774 538 999 Source Annual reports of APMC for 2009-10 to 2013-14
25
Table 24 shows the year wise actual market participants who were licensed to
operate in the market yard during 2009-10 to 2013-14 in the selected APMC for the
sample in the Raichur district The total market functionaries in the APMC Raichur
decreased during the second year ie 2010-11 from 3622 to 3407 The average
decrease during the research period was 228 percent This was due to decrease in the
traders as well as coolies
When we observed market functionaries cooperation in the APMC Sindnoor
if was little different situation when it compared to APMC Raichur The total market
participants were shown an increasing trend except in the year 2010-11 it was
decreased from 2193 in 2009-10 to 1852 The overall growth in the market
functionaries during five years research period was 2782 percent which was a good
sign compared to APMC Raichur This growth indicates the growth of agriculture
marketing in APMC Sindnoor yard From the same table it can also be seen that
during 2010-11 and 2011-12 the total licensed market participants in APMC
Lingasugur were decreased but again during last two years of study period it shown
upward trend From these above analysis it can be said that APMC Sindnoor and
APMC Lingasugur were performed better during the plan period as compared to
APMC Raichur
26
Table-24
Licensed Market Participants in Selected APMCs of Raichur District
Sl No Market Participant
APMC Raichur APMC Sindnoor APMC Lingasuguar
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 409 422 431 403 415 312 260 304 305 304 104 99 88 106 115
2 Commission agents 216 214 222 224 218 317 265 280 288 279 83 92 81 101 100
3 Exporters 382 381 401 416 401 288 256 301 308 307 97 77 71 103 105
4 Importers 377 392 420 400 410 288 256 273 276 269 77 79 71 103 110
5 Retailers 22 23 206 - - NA NA NA NA NA 20 18 18 16 16
6 Processors 57 55 63 65 401 14 17 20 19 17 05 06 06 04 04
7 Ginners 10 16 16 15 16 01 01 01 01 - - - - - -
8 Pressers 05 05 04 03 04 01 01 01 01 01 05 04 04 04 04
9 Stockiest 388 377 398 409 19 289 257 300 308 293 75 94 81 106 110
10 Weighmen 89 89 87 87 87 16 16 16 15 14 14 14 14 14 14
11 Crushers 18 26 24 20 19 02 02 01 01 - - - - - -
12 Warehousemen 02 02 02 02 02 07 05 06 07 06 01 01 01 01 01
13 Coolies 1591 1357 1354 1434 1478 634 516 856 1286 1313 40 02 08 Nil 79
14 Transporters 46 48 44 42 50 24 - - - - 10 08 08 04 Nil
Total 3622 3407 3672 3520 3520 2193 1852 2359 2815 2803 531 494 451 562 859 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
27
Table 25 indicates the trends in the growth of total licensed market
functionaries who were operating during the period under consideration in the
selected APMCs in the Bellary district A comparative study of three APMCs selected
in Bellary district shown in the table 25 indicates that APMC Bellary has the largest
market functionary followed by APMC Hospet and APMC Siraguppa The total
market participants in APMC Bellary was ranged in between 3235 to 3865 in APMC
Hospet it was between 738 to 1481 and in APMC Siraguppa between 659 to 1007
The study of individual market participants in total market participants in selected
APMCs in Bellary district was also clearly shown that coolies were occupied the
major percentage in total followed by exporters importers and traders during the plan
period From the above analysis it was clear to conclude that district APMC ie
Bellary APMC was fully developing in terms of increase in market functionaries but
effort is needed from the officials of APMC in Hospet and Siraguppa to take some
measures to increase the market functionaries for the smooth running of marketing
activities in the yard
28
Table-25
Licensed Market Participants in Selected APMCs of Bellary District
Sl No Market Participant
APMC Bellary APMC Hospet APMC Siraguppa
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 435 441 538 462 485 121 123 136 150 141 115 120 146 176 198
2 Commission agents 352 368 448 382 371 75 77 84 103 88 10 10 12 09 08
3 Exporters 412 437 531 452 484 121 123 136 150 141 120 120 147 177 198
4 Importers 415 430 527 442 473 121 123 136 150 141 120 120 147 177 198
5 Retailers 102 115 101 120 95 76 74 93 95 95 - - - - -
6 Processors 45 45 47 45 55 26 24 24 23 24 42 43 46 45 59
7 Ginners 26 27 29 25 17 - - 27 24 24 - - - - -
8 Pressers 20 20 22 20 09 NA NA NA NA NA - - - - -
9 Stockiest 420 430 518 421 463 120 123 136 150 141 130 134 159 178 198
10 Weighmen 16 16 16 16 16 03 03 04 04 04 - - - - -
11 Crushers 26 26 26 25 18 04 02 02 02 02 - - - - -
12 Warehousemen 01 01 01 01 01 02 02 02 02 02 02 02 03 03 03
13 Coolies 920 902 1018 1213 910 262 173 373 429 668 120 128 237 145 145
14 Transporters 45 48 43 02 04 14 14 12 14 10 0 0 0 0 0
Total 3235 3306 3865 3626 3401 945 738 1165 1193 1481 659 677 897 910 1007 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
29
Sample size
The main refrain of this part of research study is the detailed analysis of the
primary data collected from the respondents ie market participants from APMC
about marketing services provided by the APMCs in five districts of Gulbarga
division Three APMCs from each district on the basis their performance ie best
performer average performer and low performer taken for the study The details of
the responses obtained on various services offered at APMCs yard and their level of
satisfaction towards it in the light of the statistical data obtained through the
questionnaires addressed to market participants such as commission agents hamals
traders graders etc are shown in the following part
The deep analysis of the responses from the sample size of market participants
has provided good insight into the dimensions of the marketing services and the
quality of those services rendered to the farmers seller of agriculture produce The
analysis has been done with necessary theoretical backs drops of each of the services
related to the marketing activities in the APMC yard
Table-26
District Wise Sample Size of Market Participants
Name of District Frequency Percentage Cumulative Percentage
Bidar 25 2000 2000
Gulbarga 25 2000 4000
Koppal 25 2000 6000
Raichur 25 2000 8000
Bellary 25 2000 10000
Total 125 10000 -
Source Field survey
Table 26 provides the information about the district wise frequency of sample
chosen for the present study The total sample for the study was 125 market
participants Gulbarga division constitutes of five districts from each districts 25
respondents were selected
30
Profile of Market Participant
An attempt has also been made in this part to study the socio-economic and
demographic factors of the market participants in order to examine the significant
relationship if any exist in between their profile and performance
Age Group
The age composition of the various market participants covered in the study
areas reveals some significant trends The details of the age of respondents of district
wise are provided in the following table
Table-27
Age Wise Classification of Market Participant
Sl No Name of APMC
Age of Respondent (in years) Total Below
20 21 ndash 40 41 ndash 60 60 and
above 1 Gulbarga - 18
(720) 6
(240) 01
(40) 25
(200) 2 Bidar - 18
(720) 6
(240) 01
(40) 25
(200) 3 Koppal - 18
(720) 5
(200) 01
(40) 25
(200) 4 Raichur - 18
(720) 6
(240) 02
(40) 25
(200) 5 Bellary - 18
(720) 7
(280) 01
(40) 25
(200) Total 000
(000) 90
(720) 29
(232) 06
(46) 125
(100) Source Field study Note Figures in brackets indicates percentage to total It is evident from the Table 27 that more than 34th of the total respondents
from market participants ie 90 belonged to the age group of 21- 40 years 232
of respondents belonged to the age group of 4160 years while smaller number of ie
of respondents which constitutes 48 of total respondents are in the age group of 61
years and above It is revealing to note that no number respondents Out of total 125
respondents belonged to below 20 years of age group
31
Status of Educational Qualification
The data collected through personal interview with regarding education
qualification of all market participants operating in the APMC in Gulbarga division
has provided Some useful details about their educational status which is considered
to be most significant factor in discharging their duties and responsibilities more
efficiently and effectively The detail of educational qualifications of sample group of
market participants is shown in below Table 28
Table-28
Qualification Wise Classification of Market Participant
Sl No Name of APMC
Educational Qualification Total Below
Primary Secondary Degree PG and
others
1 Gulbarga 01 (40)
11 (440)
03 (120)
10 (400)
25 (200)
2 Bidar 01 (40)
09 (360)
03 (120)
12 (480)
25 (200)
3 Koppal 01 (40)
10 (400)
03 (120)
11 (440)
25 (200)
4 Raichur 01 (40)
09 (360)
02 (80)
13 (520)
25 (200)
5 Bellary 02 (80)
11 (440)
04 (160)
08 (320)
25 (200)
Total 06 (48)
50 (400)
15 (120)
54 (432)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total It is learnt from the above Table 28 that 432 of respondents were post
graduates and other technical qualifications such ITI and other diploma qualifications
40 of the sample respondents were qualified upto higher secondary followed 12 of
respondents were graduates Only 6 were belonged to the primary category It is
however significant to note that higher secondary education and other technical
education qualification holders were majority in total sample size ie 40 to 432
as compared to degree holders ie only 12 of sample size
32
Religious Composition of Sample
Religion of respondents is more dominating factor in occupation for their
livelihood Researcher has also tried to accumulate the data about the religion of
respondents through interview schedule In the present study respondents religion was
broadly classified in 4 category ie Hindu Muslim Christian and others
Table-29
Religion Wise Classification of Marketing Participant
Sl No Name of APMC
Religion Total
Hindu Muslim Christian Others
1 Gulbarga 22 (880)
02 (80)
01 (40)
- 25 (200)
2 Bidar 22 (880)
03 (120)
- - 25 (200)
3 Koppal 21 (840)
04 (160)
- - 25 (200)
4 Raichur 21 (840)
04 (160)
- - 25 (200)
5 Bellary 23 (920)
01 (40)
01 (40)
- 25 (200)
Total 109 (872)
14 (172)
02 (060)
00 (000)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total
From the above Table 29 it is clear that majority ie 872 of total sample
size operating in study area of Gulbarga division belonged to Hindu religion followed
by Muslim religion ie 112 of sample group This is in conformity with the pre
dominantly Hindu dominant population composition of the area as compared to
Muslim religion If can be interpreted from the above that sample size comprised of
minor number ie 160 of respondents belonged to the Christian religion
33
NATURE OF PARTICIPANTS
The success or failure of any market depends upon the functionaries existing
in the market Hence the active participation of all types of functionaries is very
important in smooth conduct of market functions In order to facilitate for smooth
marketing of agriculture commodities each and every market is provided with
different market functionaries It is compulsory according to KAPM (R) Act 1966 for
every functionary functioning in the APMCs to take a valid licence from respective
APMC by paying necessary fees An analytical account of the market functionaries
operating in different selected markets are given in Table 210
Table-210
Nature of Participant
Sl No
Name of participant
Name of APMC Total
Gulbarga Bidar Koppal Raichur Bellary
1 Commission Agent
11
09
08
10
12
50 (400)
2 Hamalas 04
03
04 05 04 20 (160)
3 Trader 07 08 08 06 06 35 (2800)
4 Grader 01 01 01 01 01 5 (400)
5 Processor - 01 01 01 - 3 (240)
6 Broker 01 03 03 02 01 10 (80)
7 Others 01 - - - 01 02 (160)
Total 25 (200)
25 (200)
25 (200)
25 (200)
25 (200)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
A cursory look at the Table 210 reveals that commission agents traders and
hamals are the major market functionaries in the market Out of total 125 participants
34
respondents 40 percent were playing the role of commission agents 28 percent of
them were acting as traders and hamals constitute 16 percent The percentage of
broker grader and processor in selected sample size was 8 4 percent and 24
percent respectively The above figures shows whose role very important in market
place
Experience in Market Yard
Market participants experience in the market yard will helps to understand the
level of their satisfaction with regard to the economic benefit from the job and their
attitude towards it Satisfied market participant in APMC will strict to a single job for
a long period The details of their years of experience in market yard in the area
under study of sample size is given in the below table
Table-211
Years of Experience in Market Yard
Sl No Particulars
Experience in Market Yard
Below 10 11 ndash 20 21 ndash 30 30 and above Total
1 Gulbarga 02 18 03 02 25 (200)
2 Bidar 01 17 04 02 25 (200)
3 Koppal 01 21 03 - 25 (200)
4 Raichur 02 18 04 01 25 (200)
5 Bellary 02 22 01 01 25 (200)
Total 8 (64)
96 (768)
15 (120)
6 (48)
125 (10000)
Source Field survey Note Figures in brackets indicates percentage to total
Table 211 exhibits the experience of the respondents in the market yard of
125 market yard of 125 market participant respondents Out of total sample size
768 are laying in between 11-20 years of experience in the market yard 15
35
respondents which constitute 12 of sample group had an experience of 21-30 years
in the market yard Below 10 years and above 30 years of experience in market yard
of respondents were 64 and 48 of sample respondents Finally to conclude about
the market yard experience old market participant were high in number as compared
to the new market participants ie less than 10 years of experience in market yard
Motivational Factors ndash Sample Study
The word lsquomotivationrsquo comes from the Latin meaning ldquoTo moverdquo it generally
means an inner or outer drive to meet a need or a good This is the impelling force
which draws the human from his house and inspires her to start something on his own
The variables comprise of heredity more profitable uncertain induced
unemployment and others Accordingly by incorporating the above the researcher
has asked the respondents to rank the motives of their present profession Their
responses were presented in the following table
Table-212
Motivated Factors of Profession
Sl No Particulars
Motivated Factors Total
Heredity More Profitable
Uncertain Induced
Un Employment Others
1 Gulbarga 22 - 02 01 - 25 (200)
2 Bidar 16 03 06 - - 25 (200)
3 Koppal 18 03 03 01 - 25 (200)
4 Raichur 22 01 02 - - 25 (200)
5 Bellary 23 01 01 - - 25 (200)
Total 101 (808)
8 (64)
14 (112)
2 (16)
00 (00)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total It is evident from the Table 212 that heredity was the most dominant motive
with 8080 of sample size This group distinctively falls under ldquopushrdquo category of
profession who resorted to this profession because of same compulsions This
compulsion cited were death of Kartha to supplement meager income at home etc
36
This way followed by uncertain induced with a percentage of 1120 of
sample size The respondents quoted few reasons for choosing their profession such
as poverty no alternative jobs to do and lower education etc 64 of total
respondents opinioned that they were chosen this profession because of more
profitable
Satisfaction with Marketing Practices
In the process of marketing there are three dimensions these are time space
and form The marketing function is having a one or the combination of these three
dimensions While performing these functions the different functionaries are rewarded
for their services at every level The marketing cost the market margins and the
competition in the market is different to product to product Similarly the market
functions very from product to product for example the marketing of grains are
having different functions than that of the marketing of vegetables Respondentrsquos
satisfaction level towards these marketing practices are shown in below table
Table-213
Satisfaction of Marketing Practices
Sl No Particulars Level of Satisfaction
Total Satisfied Unsatisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 24 (960)
01 (40)
25 (200)
4 Raichur 24 (960)
01 (40)
25 (200)
5 Bellary 23 (920)
02 (80)
25 (200)
Total 118 (944)
7 (56)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
37
Table 213 shows the district wise market participant respondents level of
satisfaction towards marketing practices It could be seen from the above table that
more than 94 of respondents are of the opinion that the quality of marketing
practices practiced in the APMC yard is fully satisfied and rest of respondents ie 56
percent were fully expressed that the marketing practices are unsatisfied
The level of satisfaction in Gulbarga district APMC Koppal district APMC
and Raichur district APMC was above 96 but it was 9200 in Bidar and Bellary
From the above opinion and analysis of responses it can be concluded that few steps
are necessary to take by APMCs to make 100 satisfaction in for marketing
practices
Farmerrsquos Activeness
Market participants were interviewed with an intension to extract their level of
satisfaction in the farmerrsquos activeness in the APMC yard in selected units
Respondents are given two option regarding farmers active involvement in marketing
of their produce ie satisfied or unsatisfied The results of the investigation are
presented in Table 214
Table-214
Satisfaction with Farmers Activeness in APMC
Sl No Particulars Satisfaction with Farmers
Total Satisfied Unsatisfied
1 Bidar 13 (520)
12 (480)
25 (200)
2 Gulbarga 18 (720)
07 (280)
25 (200)
3 Koppal 10 (400)
15 (600)
25 (200)
4 Bellary 21 (840)
04 (160)
25 (200)
5 Raichur 15 (600)
10 (400)
25 (200)
Total 77 (616)
48 (384)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
38
Table 214 gives the respondents level of satisfaction with the farmerrsquos
activeness in marketing activities in APMC yard More than 61 of market
participant respondents fully satisfied with farmers activeness but 38 of them are
fully unsatisfied and suggested to participate actively in marketing activities Few
number of farmers physically visiting and actively involved during the sale of their
produce An awareness programme from APMC is very necessary to help farmers and
to motivate them to involve in marketing activities
Facilities at APMC
Basic infrastructure at APMC yard is very much essential for smooth
functioning of marketing activities The selected APMC for present study has
provided necessary facilities such as water canteen communication transport and
banking and finance etc to the market participants But all the participants
respondents are unable to get those facilities The percentage of functionary
respondents who have availed these facilities and those who have deprived of the
facilities are given in the Table 215
Table-215
Facilities at the APMC Yard
Sl No
Facilities at APMC
Name of District Total Gulbarga Bidar Koppal Raichur Bellary 1 Water 20
(1886) 19
(1792) 22
(2075) 23
(2169) 22
(2075) 106
(848) 2 Canteen 14
(2121) 13
(1969) 12
(1818) 11
(1667) 16
(2424) 66
(528) 3 Communication 24
(2264) 21
(1981) 20
(1886) 22
(2075) 19
(1792) 106
(848) 4 Market
information 22
(2075) 20
(1886) 19
(1792) 24
(2264) 21
(1981) 106
(848) 5 Transport - - - - - - 6 Health and
sanitation 11
(2291) 09
(1875) 08
(1667) 10
(2083) 10
(2083) 48
(384) 7 Banking and
Finance - - - - - -
8 Others - - - - - - Total 125
(1000) Source Field survey Note Figures in brackets indicates percentage to total
39
A glance over the above Table 215 reveals the various facilities provided at
APMC yard in selected sample size More than 84 of functionary respondents
opinioned positively about water facility 52 of them about canteen 38 about
health and sanitation etc It is to be noted here that no single APMC has provided
transportation facilities and banking and finance which is very vital in marketing
Satisfaction about Facilities
APMCs have provided several infrastructure facilities to market participants
These facilities provided by APMC to market functionaries helps them to provide
good services to farmers efficiently
Table-216
Level of Satisfaction about the Facilities
Sl No Name of the District
Level of Satisfaction Total
Fully Satisfied Not Satisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 23 (920)
02 (80)
25 (200)
4 Raichur 21 (840)
04 (160)
25 (200)
5 Bellary 21 (840)
04 (160)
25 (200)
Total 112 (896)
13 (104)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
It is observed from the Table 216 that a large number of market participants
(ie 896) were fully satisfied with the infrastructure facilities available inside the
market yard Nearly 104 percent expressed their dissatisfaction over the facilities
provided by APMCs Gulbarga APMC was considered to be better (9600) in
facilities as compared with other four districts selected for the present study Raichur
40
and Bellary districts APMCs had needed more important in terms of facility to satisfy
market functionaries Market participants are directed to fallow the specified
techniques These techniques are prescribed by the Indian standards institute The
techniques suggests to use proper ingredients in specified proportions The graded
processed goods bear ISI label indicating that it contained the graded and good quality
if the product The selected market participants were also asked about the quality of
marketing functions The analysis of Table 217 revel that more than 76 of
respondents had satisfied the quality of marketing function in five districts whereas
more than 20 of them not satisfied with quality of services in the market yard
41
Table-217
Level of Satisfaction with Quality of Marketing Services
Quality of Services
Gulbarga Bidar Koppal Racihur Bellary Total Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Assembling 19 06 19 6 21 4 19 06 19 06 125
(100) Processing 22 03 22 03 23 02 22 03 22 03 125
(100) Grading 15 10 16 09 14 11 15 10 15 10 125
(100) Storing - 25 - 25 - 25 - 25 - 25 125
(100) Weighment 12 14 10 13 11 12 14 14 13 15 125
(100) Banking and finance
04 21 03 22 02 23 04 21 04 21 125 (100)
Rest house 02 23 01 24 02 23 02 23 03 22 125 (100)
Insurance - 25 - 25 - 25 - 25 - 25 125 (100)
Source Field survey Note Figures in brackets indicates percentage to total
42
CHAPTER-III CUSTOMER PERCEPTION ABOUT MARKETING
MANAGEMENT OF APMC IN GULBARGA DIVISION
INTRODUCTION
In keeping with very little of the research the survey is conducted to
supplement the evaluation through the primary data These attempts bring out the
basic problems and difficulties if any in the implementation of the APMCs Act
through state agricultural marketing board Different types of schedules are used for
evaluating the working of the APMC act However the agricultural marketing is
clearing a midwife between agricultural production and agricultural marketing on the
one hand and the former beneficiaries on the other hand But the farmers might have
direct link what so ever with marketing agencies therefore a schedule for the farmers
which has been different from what we have used for market participants As such the
marketing participant of the agriculture market are the main pillars for
implementation of the schedule The questionnaire has been personally given to
farmers of the sample groups and the researcher had a detailed personal discussion
with the market participants with regard to working or agriculture marketing The
main focus of the study was evaluation of management of agricultural produce
marketing committees in Karnataka from the point of farmers therefore our survey
schedule covers the background of farmers and market functionaries such as age
education religion family background source of incomes land holdings of both
farmers and market participant were collected Some of these aspects have been
discussed in the following paragraphs
43
Table-31
District Wise Selection of Farmers Sample Size
Name of the District Frequency Percentage Cumulative
Percentage
Gulbarga 50 200 200
Bidar 47 188 388
Koppal 49 196 584
Raichur 52 208 792
Bellary 52 208 1000
Total 250 1000 -
Source Field survey
Table 35 provides the information about the district wise selection of member
farmers which have been chosen for the present study The total sample size for the
study was 250 farmers Raichur and Bellary district form 2080 percent each and
Gulbarga district form 2000 percent and Bidar and Koppal district 188 percent and
196 respectively The member of farmers selected for the purpose of was equally
distributed to all five districts with little change in percentage The reason for that is to
identify the district among the five districts where APMCs are working upto the
aspirants of farmers
44
Table-32
Age Wise Classification of Agriculturist
APMCs District
Age in Years Total
Below 20 20 ndash 40 41 ndash 60 61 and above
Bidar 01 22 21 03 47 (186)
Gulbarga 01 23 23 03 50 (200)
Koppal 01 23 22 03 49 (196)
Raichur 01 24 24 03 52 (208)
Bellary 02 24 24 02 52 (208)
Total 06 (240)
116 (4640)
114 (4560)
14 (56)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It could be found from the Table 32 that 4640 percent of farmer respondents
were aged between 20-40 years 45-60 percent in between 41-60 years and 5-6
percent above 61 years Only 240 percent of total sample size were aged below 20
years The above figures about the age of agriculturists cleared that young and middle
aged formers are more actively participated in the APMC yard when compared to old
age farmers
Educational Qualification of Farmers
The level of the education of the farmers is one of the most important factor
which governs many more factors such as deciding the cropping pattern crop
rotation use of different inputs in farming optimum time of cultural practices and
where to sell the agricultural produce The following table shows the educational
qualifications of the farmer respondents
45
Table-33
Education Wise Classification of Respondents
Name of the APMCs
Educational Qualification
Total Literate Illiterate
Primary Secondary Degree PG and Others
Gulbarga 25 (500)
15 (300)
4 (80)
02 (40)
4 (80)
50 (200)
Bidar 23 (4894)
15 (3191)
03 (638)
02 (425)
4 (852)
47 (188)
Koppal 25 (5102)
16 (3265)
03 (612)
- (00)
5 (1021)
49 (196)
Raichur 26 (500)
16 (3076)
03 (576)
03 (576)
4 (772)
52 (206)
Bellary 28 (5385)
16 (3076)
03 (576)
- (00)
5 (963)
52 (208)
Total 127 (5080)
78 (3120)
16 (640)
07 (280)
22 (880)
250 (100)
Source Field study
Note Figures in bracket indicates percentage to total
From the above Table 33 it could be seen that out of the total 250 farmers
respondents selected for the present study 5080 percent of them are having primary
level of education 3120 percent of them have studied upto secondary Only 640
percent of total sample size possessed graduate level education followed by 280
percent post graduate and other qualification The illiterate percentage of respondents
total sample size is 880
Sources of Incomes
There are different sources of incomes available to farmers such as agriculture
income business self employment and employment in other organizations
Agriculture income is considered as major source of income to them and other
sources of incomes are secondary importance The details of their sources of incomes
along with agriculture incomes is shown in the table below
46
Table-34
Sources of Income of Respondents
Sl No
Name of the Market
Source of Income Total
Agriculture Business Employment Others
1 Gulbarga 40 (800)
6 (120)
2 (40)
2 (40)
50 (200)
2 Bidar 38 (8085)
5 (1063)
2 (1425)
2 (427)
47 (188)
3 Koppal 39 (7959)
5 (1020)
2 (408)
3 (613)
49 (196)
4 Raichur 42 (8076)
6 (1154)
3 (576)
1 (194)
52 (208)
5 Bellary 42 (8076)
6 (1154)
2 (385)
2 (385)
52 (208)
Total 201 (8040)
28 (1120)
11 (440)
10 (40)
250 (1000)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 34 that 8040 of respondents were having
agriculture income and 1120 percent had business income followed by 440 percent
and 40 percent of respondents from employment and other sources respectively This
will clearly indicates the much dependency of farmer respondents on agriculture for
income to meet the cost of livelihood This fact was same in five districts selected for
the study
Annual Gross Income
The farmers are getting incomes not only from agriculture but also from the
other sources discussed in previous table The gross annual income of the farmers
itself indicates the standard of living and their life style As far as in other farmers are
concerned they fully depend on agriculture for their livelihood Due to uncertainty in
agricultural production their annual income is getting fluctuation which results suicide
of many farmers in Karnataka
47
One side no guaranteed regular income and the other side rise in prices of
consumable goods forced them for borrowing money from outside to meet cost of
living and agricultural expense The researcher collected information about annual
gross income of respondents and shown in below table
Table-35
Annual Gross Income of Respondents
Sl No Annual income (Rs) Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 50000 to 150000 8 (160)
8 (1702)
8 (1632)
9 (1731)
9 (1730)
42 (166)
2 150001 to 250000 18 (360)
17 (3617)
17 (3469)
19 (3654)
18 (3462)
89 (356)
3 250001 to 350000 14 (280)
13 (2766)
14 (2857)
15 (2885)
15 (2885)
71 (289)
4 350001 to 45000 5 (100)
5 (1063)
5 (1022)
5 (962)
6 (1154)
26 (104)
5 450001 and above 5 (100)
4 (852)
4 (1020)
4 (768)
5 (769)
22 (88)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 35 that 166 percent of the respondents
were having the income of Rs 50000 ndash 150000 per annum income category and
356 percent had an income between Rs 150001 to Rs 250000 The percentage of
respondents in the Rs 250001 to 350000 range was found to be 289 percent
whereas those with an income less than Rs 450000 but above Rs 350001
accounted for 104 percent of the respondents The respondents with an annual
income greater than Rs 450000 made up the remaining 88 percent of the total
sample size It is learnt from the study that the farmers were from different types of
age groups education qualification and income range
48
Type of Family
Type of the family also determines the income of farmers When the partition
of agriculture land take place it badly affects on the quantity of agriculture
production If agriculture activities are carried out in joint family leads bulk
production and minimization of agriculture cost The data regarding the type of family
was also collected through schedule of questionnaire prepared for the farmers is
shown in below table along with their percentage to total sample size
Table-36
Type of Family of Farmer Respondents
Sl No Particulars Type of Family
Total Nuclear Family Joint Family Individual
1 Gulbarga 36 (1988)
14 (2029)
- 50 (2000)
2 Bidar 34 (1878)
13 (1884)
- 47 (1880)
3 Koppal 35 (1933)
14 (2028)
- 49 (1960)
4 Raichur 37 (2044)
15 (2173)
- 52 (2080)
5 Bellary 39 (2157)
13 (1886)
- 52 (2080)
Total 181 (7240)
69 (2760)
- 250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table depicts the classification of respondents on the basis of type
of family ie nuclear family or joint family 7240 percent of sample size are
belonged to nuclear family and remaining 2760 percent are living still in joint family
This clearly indicated that majority of preferred not to stay with joint family but want
to be in nuclear family
49
Family Size
Family size means the number of family members staying together in a single
family The farmers were also asked about the number of members living together
which helps to know their tendency towards big family or small family Big family
with small agriculture land holding found to be different to manage economic needs
and vice versa Keeping this point in mind data was collected about the size of family
members and is shown in Table 37
Table-37
Family Size of Respondents
Sl No Name of the Market Family Members
Total Below 4 4 ndash 8 8 ndash 12 Above 12
1 Gulbarga 15 (2027)
27 (2000)
05 (2083)
03 (1764)
50 (2000)
2 Bidar 14 (1891)
25 (1851)
05 (2083)
03 (1764)
47 (1880)
3 Koppal 15 (2027)
24 (1777)
06 (2500)
04 (2353)
49 (1960)
4 Raichur 15 (2027)
31 (2296)
04 (1667)
02 (1176)
52 (2080)
5 Bellary 15 (2028)
28 (2076)
04 (1667)
05 (2943)
52 (2080)
Total 74 (2960)
135 (5400)
24 (960)
17 (680)
250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table presents the classification of the respondents on the basis of
the size of the family members The category is done family below four members 4
members to 8 farmers respondents which constitute 54 percent of the sample group
had members between 4-8 and 2960 percent of sample size had family members
below 4 followed by 960 percent and 680 percent had 8-12 members and above 12
members respectively
50
Agriculture Land Holdings
The annual gross income of the respondents largely depends on the agriculture
land holdings by the farmers an attempt has been made to collect the details of the
agriculture land holding by the farmer respondents The size of the land holdings and
socio economic conditions of the farmers play an important role in farming as well as
marketing activities The size of the land holdings by sample size selected for the
present study is shown in the below table
Table-38
Total Agriculture Land Holdings
Sl No
Name of the Market
Total Agriculture Land Holding Total Below 5
Acres 5 ndash 10 Acres
11 ndash 15 Acres
Above 16 Acres
1 Gulbarga 3 (60)
20 (400)
9 (180)
18 (360)
50 (2000)
2 Bidar 3 (638)
19 (4042)
9 (1915)
16 (3405)
47 (188)
3 Koppal 3 (0612)
20 (4082)
9 (1837)
17 (3569)
49 (1960)
4 Raichur 4 (769)
21 (4038)
10 (1923)
17 (327)
52 (2080)
5 Bellary 4 (769)
21 (4038)
9 (1730)
18 (3463)
52 (208)
Total 17 (68)
101 (404)
46 (184)
86 (3440)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above Table 38 revels that 404 percent of the total respondents are small
farmers (ie 5 acres or more but less than 10 acres) 3440 percent of sample groups
are large farmers ie 16 acres or more than 16 acres and only 68 percent of
respondents are having less than 5 acres of cultivating land (marginal farmers)
Major Crops Grown
Generally agriculture crops are grown on basis and depending on the agro
climatic conditions as well as the socio-economic conditions of the farmers The study
51
was conducted to know the major crops grown by the farmer respondents selected for
the present study
Table-39
Annual Crop Grown in Land
Crop Quantity in Quintals
Total 1-25 26-50 51-75 76-100 100 and
above
Red gram 10 50 22 06 10 98
Green gram 96 16 04 - - 116
Black gram 22 38 04 64 - 128
Jawar 99 36 04 02 - 141
Maize 11 33 19 - 02 65
Bajra 07 02 05 07 04 25
Bengal gram 09 35 12 - 36 92
Sugarcane 21 08 04 08 - 41
Others 06 08 12 06 - 32 Source Field study
The quantity of crop grown by the farmers annually is given in the above
Table 39 The data about the different crop grown by the sample size of farmers are
shown in quantity along with the percentage of each crop to total crop grown by the
sample farmers
The table reveals that 5640 percent of the farmers respondents cultivate jowar
followed by 4640 percent farmers ever growing green gram red gram (3920)
maize (26) Black gram (2560) percent Bengal gram (368) and sugarcane
(1640) other crops grown constitute 5120 to total which included onions
groundnuts pulses chillies wheat and paddy etc
It can be seen clearly from the same table that red gram jowar green gram
and black gram are cultivated by the farmer respondents partially for self consumption
purpose and partially for selling It could also be noted from the same those
commercial crops like sugarcane bajra maize chillies sunflower paddy and onions
52
find a major portion in the cropping pattern of the farmer respondents This clearly
indicates the higher degree of commercialization of agricultural production by the
farmers in the Gulbarga division
Preference of Sale of Agriculture Produce
Marketing today is becoming more complicated with the advancement of the
civilization The commodity to be marketed must be of value It shouldnrsquot be a free
gift of the nature easily available for mere picking The farmer wish to have the
maximum share in the price of the products and on other side he wish to purchase the
inputs at the minimum price As he is interested to maximize his profits on sale of his
agriculture produce he will always in search for the market place where he can get
good price An attempt has been made in schedule to acquire information about the
preference of sale of agriculture produce by the sample respondents is shown in the
Table 310 and 311
Sale of Agriculture Produces
Table-310
Sale of Agriculture Produces
Sl No
Name of Market
Sale of Agriculture Produces Total
Sample Open Market APMC Confirmation Other
1 Gulbarga 21 (200)
46 (200)
080 (200)
01 (2500)
50 (2000)
2 Bidar 20 (1905)
43 (1870)
078 (1950)
-- 47 (188)
3 Koppal 21 (200)
45 (1956)
078 (1950)
01 (2500)
49 (196)
4 Raichur 22 (2095)
48 (2086)
083 (2075)
01 (2500)
52 (208)
5 Bellary 21 (200)
48 (2088)
081 (2025)
01 (2500)
52 (208)
Total 105 (420)
230 (920)
04 (16)
04 (16)
250 (100)
Source Field survey Note Figure in bracket indicates percentage to total
53
After the development of regulated markets farmers preferred to sell their
agriculture produce in the APMC yard this was clear in the Table 310 The response
of sample size was collected about sale of the agriculture produce 92 percent of
sample size preferred to sold only in the APMC market as to overcome from the
problems and malpractices in the open markets and 42 percent in open market 16
percent of sample each in confirmation market and other type of sale
Table-311
Preference of Sale of Agriculture Produces by Respondents
Sl No
Name of the Market
Preference of Sale Total Sample Local
Market Taluks Market
District Market
Other State
1 Gulbarga 23 (200)
23 (2035)
25 (2016)
01 (250)
50 (200)
2 Bidar 22 (1913)
21 (1858)
23 (1855)
01 (2500)
47 (188)
3 Koppal 23 (200)
22 (1946)
24 (1935)
-- 49 (196)
4 Raichur 24 (2086)
24 (2124)
26 (2096)
01 (2500)
52 (208)
5 Bellary 23 (2001)
23 (2037)
26 (2098)
01 (2500)
52 (208)
Total 115 (460)
113 (452)
124 (496)
04 (160)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The above table gives the preference of sale of agriculture produce by the
farmer respondents Researcher has discussed with the respondents and mobilized the
data whether they prefer to sell their agricultural produce in local market taluka or
district market
Higher percentage of farmers ie 4960 is sold their agricultural produce in
the district to get better price compared to local market 46 percent of them opinioned
that they are selling their produce in local markets due to infrequency of
transportation facilities and to save the expenditure from bringing produce to district
or taluk market Some farmer respondents ie 4520 percent are sold near to taluka
market and rest of them (160 percent) through direct sale to whole seller retailer or
brokers etc
54
Mode of Transportation
Most of the agricultural goods are not consumed at the places of their
production They are required to be transported in the various stages of the market
Right from lifting of the produce from the threshing floor to its ultimate consumer the
transportation is required to the farmer to bring the agricultural produce to the market
The various means of transport are used These are bullock carts horse tanga tractor
trolleys trucks etc Transport being the most important function of marketing In case
of transport in the rural India though in modern days its importance is declining now
the power operated means like tractors trolley trucks are being used but still bullock
cart and horse tonga is an important means of transport in agricultural marketing The
study had been conducted to know the mode of transport means used by the farmer
respondents to transport the agricultural produce from farm place to market place
same is presented in the table
Table-312
Mode of Transportation of Agriculture Produce by Respondents
Sl No
Name of the Market
Mode of Transportation Total Sample Bullock
Cart Tractor and
Trucks Hired
Vehicles Own
Vehicle 1 Gulbarga 18
(200) 16
(1928) 21
(1963) 01
(2500) 50
(200) 2 Bidar 17
(188) 15
(1807) 20
(1869) - 47
(188) 3 Koppal 18
(200) 16
(1928) 21
(1963) 01
(2500) 49
(196) 4 Raichur 19
(2111) 17
(2048) 22
(2056) 1
(2500) 52
(208) 5 Bellary 18
(2009) 19
(2289) 23
(2149) 01
(2500) 52
(208) Total 90
(360) 83
(322) 107
(428) 04
(160) 250
(100) Source Field study Note Figures in bracket indicates percentage to total It can be seen from the above table that maximum ie more than 42 percent
of our farmer respondents were transported their agriculture produce through hired
vehicle followed by 360 percent of them through bullock cart owned by themselves
Modern means of transportation such as tractors and trucks are used by 322 percent
of sample size The above figure in table indicates that dependency on traditional
55
mode of transportation was decreasing when it compared to modern mean to
transportation
Market Charges
As per the bye laws approved by the chief marketing officer according to the
Act market charges are levied by the market committees In all selected market
committees for the present study in the Gulbarga division only three types of market
charges are levied to the farmers for sale of his agricultural produce in the regulated
markets One commission to commission agent which is fixed at 2 in all the markets
but other market charges different from one market to another market depending upon
the decisions to this effect by the respective market committees A part from
commission all APMCs in the sample size charges hamali and weighment charges In
some APMCs cleaning charges are also levied for cleaning the produce which is
included in other markets in hamali Thus no unauthorized deductions are made now
in any of the markets in the division Few secretaries of the APMCs during the field
study opined that the charges are quite nominal and the services rendered are more
valuable than the charges and they cannot be quantified
Table-313
Market Charges by APMC
Sl No Name of Market Market Charges Total Sample Very Low Very High Fair Average
1 Gulbarga 03 (60)
15 (300)
10 (200)
22 (440)
50 (200)
2 Bidar 02 (425)
15 (3191)
11 (2340)
19 (4044)
47 (188)
3 Koppal 02 (408)
14 (2857)
11 (2245)
22 (4490)
49 (196)
4 Raichur 03 (576)
16 (3076)
10 (1923)
23 (4423)
52 (208)
5 Bellary 02 (384)
17 (3269)
10 (1923)
23 (4424)
52 (208)
Total 12 (480)
77 (3080)
52 (2080)
109 (4360)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total From the above table it could be seen that 4360 percent of farmer respondents
are of the opinion that APMC is charging average ie neither too high nor too low
market charges on the sale of agricultural produce by the farmers On the other hand
56
3080 percent of farmer respondents dissatisfied with the market charges by the
APMC as they expressed that market charges are very high in APMC yard as
compared with open market Though 480 percent of them are fully satisfied and
2080 percent of respondents were reacted positively about the market charges
Carrying Costs
In case of agricultural marketing the transport cost is to be paid by the farmer
if he is selling the produce in the market but if he is selling to the village trader the
cost is to be paid by the trader Carrying cost is the most important cost in the process
of agricultural marketing The carrying cost is more important in context of place
utility of product The efficiency of the marketing is dependent on reducing the cost
of carrying Generally the cost of carrying of bullock cart is higher as compared to
the power operated means A survey was conducted to ascertain the opinion of the
farmer respondents towards the carrying cost paid by them in study area and the data
so collected was shown in the table below
Table-314
Carrying Cost Paid by Respondents
Sl No Name of Market Carrying Cost Total Sample Very Low Very High Fair Average
1 Gulbarga 06 (1200)
10 (2000)
03 (600)
31 (6200)
50 (200)
2 Bidar 05 (1063)
09 (1915)
03 (638)
30 (6384)
47 (188)
3 Koppal 06 (1224)
09 (1836)
02 (408)
32 (6532)
49 (196)
4 Raichur 07 (1346)
11 (2115)
03 (576)
31 (5963)
52 (208)
5 Bellary 06 (1153)
11 (2115)
04 (769)
31 (5963)
52 (208)
Total 30 (1186)
50 (2000)
15 (580)
155 (6234)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above table shows the carrying costs paid by the farmer respondents to
carry the goods from one place to another place with in the market yard One thing is
clear from the above table that more than 60 of respondents are satisfied with
carrying costs paid by them But minor percentage ie 20 percent of respondents not
57
satisfied saying transporters were charging heavy cost and 580 percent were
opinioned that transportation cost paid by them was neither high or nor low but it was
fair From these data analysis maximum number of farmers respondents were fully
and partially satisfied with carrying cost paid in the market yard
Facilities Provided at APMC
Table-315
Facility Provided at APMC
Particulars
Districts Grand Total
Gulbarga Bidar Koppal Raichur Bellary
Yes No Yes No Yes No Yes No Yes No Yes No Total
Water 26 23 27 24 26 24 27 23 27 23 133 (5320)
117 (4680)
250 (100)
Toilet 4 46 4 43 4 45 5 47 5 47 22 (5320)
228 (9120)
250 (100)
Canteen 13 37 12 35 12 37 13 39 12 39 62 (2480)
188 (7520)
250 (100)
Communication 27 23 26 23 27 22 26 24 27 25 135 (5400)
115 (4600)
250 (100)
Shopping property
21 29 20 27 20 29 20 32 20 32 101 (4040)
149 (5960)
250 (100)
Market information
28 22 27 20 27 22 29 23 29 23 140 (5600)
110 (4400)
250 (100)
Other facilities (if any)
29 21 28 19 28 21 30 22 30 22 145 (5800)
105 (4200)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Table-316
Coefficient Correlation between Varieties with in Facilities Provided by APMC
Sl No
Facilities by APMC
Facilities by APMC
Water Toilet Canteen Commu-nication
Shopping Property
Market Information
Other Facilities
1 Water 1000 235() 535() 984() 749() 428() (a)
2 Toilet 235() 1000 474() 230() 376() 218() (a)
3 Canteen 535() 474() 1000 526() 693() 505() (a)
4 Communication 984() 230() 526() 1000 749() 411() (a)
5 Shopping property
749() 376() 693() 749() 1000 705() (a)
6 Market information
428() 218() 505() 411() 705() 1000 (a)
7 Other facilities (if any)
(a) (a) (a) (a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
58
The coefficient correlation calculated between the variables (one variable with
the another variable) within the facilities provided by APMC is shown in the above
table Each variable is positively correlated with other variable
Table-317
lsquotrsquo - Test Values
One-Sample Statistics
Facilities by APMC N Mean Std Deviation
Std Error Mean
Water 250 14680 5000 3162E-02
Toilet 250 19120 2839 1795E-02
Canteen 246 17480 4351 2774E-02
Communication 250 14600 4994 3158E-02
Shopping Property 246 15894 4929 3143E-02
Marketing Information 250 14400 4974 3146E-02
Other Facilities 145 20000 0000(a) 00000 Note a) Cannot be computed because the standard deviation is 0
One-Sample Test
Facilities by APMC
Test Value = 0
t Df Sig
(2-tailed) Mean
Difference
95 Confidence Interval of the
Difference
Lower Upper
Water 46424 249 000 14680 14057 15303
Toilet 106500 249 000 19120 18766 19474
Canteen 63015 245 000 17480 16933 18026
Communication 46225 249 000 14600 13978 15222
Shopping Property 50573 245 000 15894 15275 16513
Marketing Information
45776 249 000 14400 13780 15020
59
Dissemination of Market Information
The dissemination of market information is most important so to make the best
use of this information There is no use of collection of data if it is not disseminated
well in time There are different sources for dissemination of market information such
as news papers radio and television department of government post and telephone
etc
The different news papers published in English Hindi and regional languages
are publishing the information about piracy of various commodities in different
markets There are periodical magazines and journals published weekly fortnightly or
monthly Radio and television is depicting the news about markets and broadcast and
televise the information about prices daily in its programmes The various department
of the government publish various reports concerned with agricultural marketing The
traders exchange the information about prices and arrivals in different markets
through telephone or through letters Price bulletins are published by directorate of
marketing and inspection providing information about prices and personal contact
between farmer to farmers farmer to trader etc is also a source of information The
following table provides the details of responses of source of market information
Table-318
Sources of Market Information
Sl No Particulars Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 Newspaper 32 (2013)
30 (1886)
31 (1950)
33 (2075)
33 (2015)
159 (636)
2 Radio and TV 42 (1981)
40 (1886)
42 (1981)
44 (2075)
44 (2075)
212 (848)
3 Dept of government 05 (2083)
05 (2083)
05 (2083)
05 (2083)
04 (1667)
24 (96)
4 Post and telephone - - - 01 (5000)
01 (5000)
02 (08)
5 Personal contact - - - 01 (5000)
01 (5000)
02 (08)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
60
A comparative analysis of sources of market information reveals that 848
percent of farmer respondents obtained the market information through radio and
television followed 6360 percent from newspapers and 372 from price bulletins
about the market 96 of total sample size depended on the various departments of
the governments such as directorate of economics and statistics of the central
government directorate of economics and statistics of the sates the agricultural
marketing departments of states etc about the prices in different regulated markets
Personal contact and post and telephone sources of market information is considered
to be a least sources from respondents
Table-319
Defects in Market Information
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Ignore retail prices 11 (2200)
10 (2553)
10 (2041)
11 (2115)
11 (2115)
53 (212)
2 Delay in news 13 (2600)
12 (2553)
13 (2653)
14 (2692)
14 (2692)
66 (2640)
3 Wide range of prices 05 (1000)
06 (1277)
06 (1224)
06 (1154)
07 (1346)
30 (1200)
4 Incomplete information
08 (1600)
08 (1702)
08 (1632)
09 (1730)
08 (1538)
41 (1640)
5 Illiteracy 07 (1400)
07 (1489)
07 (1428)
08 (1538)
08 (1538)
37 (148)
6 Others 06 (1200)
04 (851)
05 (1020)
04 (769)
04 (769)
23 (920)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
From the above table it can be seen that farmers are getting different
advantages for grading the products Their response is not homogenous ie 38
percent of the farmers are supported grading in easy marketing of the agriculture
produce 9680 percent are favoured grading in establishing to face competition and
61
128 percent of sample group opinioned about the grading that it will helps in
obtaining higher prices Only 6 of them favoured to reduction of cost of marketing
and 64 to easy to get finance facilities
Table-320
Ranking of Defects in APMC
Defects in APMC Ranking of Defects
Total First Second Third Fourth
No advance fund 32 (120)
216 (864)
02 (08)
02 (08)
250 (100)
Difficulty of storage 230 (920)
14 (560)
4 (160)
04 (160)
250 (100)
Lack of transportation 10 (40)
20 (80)
218 (872)
02 (080)
250 (100)
Lack of grading 10 (40)
179 (716)
02 (080)
59 (236)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The survey of APMC defects to rank on the basis of the respondents
preferences is shown in the above table 92 of the total respondents were opinioned
that the major defect in the APMC yard is difficulty of storage facilities followed by
no advance fund to farmers to meet the pre harvest expenses which constitute 864
of sample group
Table-321
Coefficient Correlation between Variables within Defects in Regulated Markets
Sl No
Defects in Regulated Markets
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 No Advance Money 1000 -354() 763()
2 Difficulty of Storage -354() 1000 044
3 Lack of Transport 763() 044 1000 Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
62
The details of the coefficient correlation calculated between all the variable of
defects in regulated markets are given in the above table Some variables within the
defects in regulated markets are found positive and negative correlated with each
other
Table-322
Correlation between Facilities Provided by APMC with Effects in Regulated
Markets
Sl No Facilities by APMC
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 Water - 269 () 058 - 218 ()
2 Toilet - 114 074 - 057
3 Canteen - 059 - 097 - 116
4 Communication - 276 () - 0062 - 222 ()
5 Shopping property - 173 () - 008 - 166 ()
6 Market information - 293 () - 141 () - 232 ()
7 Other facilities (if any)
(a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant The above table shows the computed result of correlation between the
facilities provided by the APMC to the farmers in the APMC with the defects
prevailing in the market yard The correlation was found significant between water
facilities communication facility shopping property and market information with no
advance money with a value -0269 -0276 -0173 and -0293 respectively The
correlation was insignificant between toilet and canteen facility in the market yard
with the no advance money
Difficulty of storage in the market yard is one of the most severe problem
found in the selected APMC yard The correlation between difficulty of storage with
the facilities by APMC were found insignificant in all cases except with market
information ie - 0141 But with lack of transport defect in the market yard the
63
correlation was insignificant between toilet and canteen with the transport defect with
a value of -0057 and -0116 respectively
Table-323
Facilities to Improve Market Efficiency
Facilities Ranking of Facilities
Total First Second Third Fourth Fifth
Trade more commodities 24 (96)
173 (692)
49 (196)
02 (08)
02 (08)
250 (100)
Increase in facilities 221 (884)
22 (880)
03 (12)
02 (08)
02 (08)
250 (100)
Role of government 34 (136)
29 (116)
175 (700)
06 (240)
06 (240)
250 (100)
Representative from farmers 04 (160)
20 (80)
10 (40)
212 (848)
04 (160)
250 (100)
Reduction in market fee 04 (16)
100 (400)
55 (220)
41 (1640)
50 (200)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-324
Coefficient Correlation between Variables of Facilities to
Improve Market Efficiency
Sl No
Facilities to Improve Market
Efficiency
Facilities to Improve Market Efficiency More
Commodities to Trade
Increase in
Facilities
More Role of Government
Representation From Framers
1 More commodities to trade
1000 419() -316() 355()
2 Increase in facilities
419() 1000 -619() 048
3 More Role of Government
-316() -619() 1000 336()
4 Representation from Framers
355() 048 336() 1000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
64
The above table depicts the values of the coefficient correlation calculated
between the variables of facilities suggested by the farmer to improve market
efficiency in the APMC yard
Table-325
Correlation between Facilities Provided with Facilities to Improve Market
Efficiency
Sl No
Facilities Provided by
APMC
Facilities to Improve Market Efficiency More
Commodity to Trade
Increase in
Facilities
More Role of Government
Representation from Farmers
1 Water -221() 098 -212() -167() 2 Toilet -100 -300() 220() 181() 3 Canteen -028 -076 -129() -089 4 Communication -218() 103 -222() -167() 5 Shopping
property 057 019 -249() 008
6 Market information
-073 116 -353() -176()
7 Other facilities (if any)
(a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The data collected about the opinion of the farmer respondents towards the
facilities provided by APMC is correlated with the suggestions obtained from them to
improve market efficiency further was given in the above table The result of
correlation is shown significant between water and communication facilities with
more commodities need to be allowed to trade under notified agriculture crops in the
APMC yard the correlation value is -0221 and -0218 respectively
A negative correlation between toilet and increase in market facilities ie -03
clearly indicates that APMC should concentrate on other facilities to improve market
efficiency other than toilet facility The government is required to play a vital role in
the APMC yard to improve the market efficiency by providing financial assistance to
APMC officials enabling them to provide essential facilities to the farmers and market
functionaries The correlation was negatively correlated between the facilities
provided by APMC listed in the above table except in toilet facility ie positive
correlation 0220 The highest negative correlation was computed between market
65
information with government role ie -0353 followed by -0249 (between shopping
property with government role) The farmersrsquo representation in the market committee
is also one of the important aspect in availing market facilities The correlation
between farmers representation with market facilities shows negative except in toilet
facility it is positive correlation ie 0181
Table-326
Correlation between Defects in Regulated Markets with Facilities to Improve
Market Efficiency
Sl No
Defects in Regulated Markets
Facilities to Improve Market Efficiency
More Commodities to
Trade
Increase in Facilities
Role of Government
Reduction in Market Fees
1 No advance money
611 () 039 343 () 439 ()
2 Difficulty of storage
-118 043 139 () 019
3 Lack of transport facility
500 () 059 445 () 895 ()
4 Lack of Gradation facility
-0115 0410 135 () 117
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The defects in the regulated markets were ranked by the farmers on their
preferences were also attempted to correlate with the additional facilities to be
provided to improve the market efficiency The correlation was positively correlated
between no advance money and lack of transport facility with the more commodities
to be permitted to trade in the market yard with value 0611 and 0500 respectively
No negative correlation was found between any of variables between defects in
regulated markets with the farmers opinions to improve market efficiency ie
increase in facilities Reduction in the market fees and charges is the another way for
the APMC officials to improve the market efficiency the correlation result is positive
with the market defects ie highest positive correlation with lack of transport facility
66
with reduction in market fees (0895) followed by no advance money with reduction
in market fees (0439) and (0117) between lack of gradation and reduction in market
fees Government role was also positively correlated to over come from all the defects
prevailing in the regulated market in the direction to improve market efficiency (the
correlation result was ranged between 0135 to 0445) Few defects were highly
correlated and others defects were less correlated with role of government variable
67
Table-327
Pearson Correlations
Correlations 18a 18b 18c 18d 19a 19b 19c 19d 19e
Pearson Correlation 18a 1000 -354() 763() 735() 611() 039 343() 439() 469() 18b -354() 1000 044 131 -118 043 139() 019 072 18c 763() 044 1000 911() 500() 059 445() 895() 898() 18d 735() 131 911() 1000 987() (a) 987() 948() 947() 19a 611() -118 500() 987() 1000 419() -316() 355() 1000() 19b 039 043 059 (a) 419() 1000 -619() 048 (a) 19c 343() 139() 445() 987() -316() -619() 1000 336() 1000() 19d 439() 019 895() 948() 355() 048 336() 1000 1000() 19e 469() 072 898() 947() 1000() (a) 1000() 1000() 1000
Sig (2-tailed) 18a 000 000 000 000 546 000 000 000 18b 000 510 276 065 508 033 781 611 18c 000 510 000 000 377 000 000 000 18d 000 276 000 000 000 000 000 19a 000 065 000 000 000 000 000 000 19b 546 508 377 000 000 491 19c 000 033 000 000 000 000 000 000 19d 000 781 000 000 000 491 000 000 19e 000 611 000 000 000 000 000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
68
Infrastructure Facilities in the APMC Yard
Efficient marketing infrastructure such as wholesale retail and assembly
markets and storage facilities is essential for costndasheffective marketing to minimize
post harvest losses and to reduce health risks Markets play an important role in rural
development income generation food security developing rural market linkages and
gender issues Planners need to be aware of how to design markets that meet a
communityrsquos social and economic needs and how to choose a suitable site for a new
market In many cases sites are chosen that are inappropriate and result in under use
or even no use of the infrastructure constructed It is also not sufficient just to build a
market attention needs to be paid to how that market will be managed operated and
maintained In most cases where market improvements were only aimed at
infrastructure upgrading and did not guarantee maintenance and management most
failed within a few years The details of the availability of infrastructure and farmers
opinion is shown in the following tables
69
Table-328
Infrastructure Facilities in the APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
Available Not Available Available Not
Available Available Not Available Available Not
Available Available Not Available Available Not
available Total
Transport 32 18 35 12 36 13 39 13 42 10 184 (7360)
66 (2640)
250 (100)
Cold storage 02 48 02 45 01 48 03 49 06 46 14 (560)
236 (9440)
250 (100)
Storage 35 15 38 09 36 13 37 15 40 12 186 (7440)
64 (2560)
250 (100)
Processing 30 20 35 12 38 11 41 11 38 14 182 (7280)
68 (2720)
250 (100)
Grading 28 22 40 07 41 08 40 12 37 15 186 (7440)
64 (2560)
250 (100)
Weighment 45 05 42 05 41 08 45 07 44 08 217 (8680)
33 (1320)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
70
Table-329
Satisfaction of Infrastructure Facilities in APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
S NS T S NS T S NS T S NS T S NS T S NS T
Transport 30 20 50 31 16 49 35 14 42 34 18 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Cold storage 01 49 50 - 47 47 - 49 49 01 51 52 02 50 52 04 (160)
246 (9840)
250 (100)
Storage 32 18 50 29 18 47 27 22 49 33 19 52 38 14 52 159 (6360)
91 (3640)
250 (100)
Processing 25 25 50 28 19 47 31 18 49 38 14 52 35 17 52 157 (6280)
93 (3720)
250 (100)
Grading 22 28 50 35 12 47 36 13 49 37 15 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Weighment 41 09 50 36 11 47 40 09 49 42 10 52 42 10 52 201 (8040)
49 (1960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total S ndash Satisfied NS ndash Not Satisfied T ndash Total
71
Defects in Weighing
As a rule when produce enters the market every agricultural produce has to
be weighed in the presence of the licensed weighmen and the receipt for weighment
has to be given to the farmer But even this system has certain defects as follows
Meager number of weighmen
Time of weighment of the produce
Old weighment equipments
The details of weighing practices in the APMC yard and the farmer
respondents opinion is shown in the following table
Table-330
Causes of Defects in Weighing
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Absence of licenced weigh man
20 19 19 18 19 95 (3800)
2 Under weighting 25 22 24 26 25 122 (4880)
3 Favouring for buyer
05 03 02 03 03 16 (640)
4 Faulty weights 00 02 01 02 02 07 280)
5 Faulty weight machineries
00 02 03 03 02 10 (400)
6 Others 00 00 00 00 01 01 (040)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Farmer respondents were identified under weighing was followed by the
absence of licensed weigh men and faulty weigh machines
72
Table-331
Importance of Grading of Produce
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Easy marketing 18 (3600)
17 (3617)
19 (3877)
20 (3846)
21 (4038)
95 (3800)
2 Reduction of cost 05 (1000)
03 (638)
02 (408)
02 (384)
03 (576)
15 (600)
3 Higher prices 05 (1000)
02 (425)
08 (1632)
10 (1923)
07 (1346)
32 (128)
4 Encourage competition
20 (4000)
18 (3829)
15 (3061)
19 (3653)
20 (3846)
92 (3680)
5 Easy to get finance 02 (400)
07 (1489)
05 (1020)
01 (192)
01 (192)
16 (640)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Processing of Produce
In agriculture marketing process was not an important function The most of
the commodities were selling in their original form But in modern age with change
in the tastes and preferences of the people and with the introduction of new
technology like refrigerator milling and banking of food grains the consumers
demand for processed goods has increased So in the modern system of marketing the
processing has become a most important function of the marketing
By processing we mean the change of the form of the product before its
consumption The processing of the agricultural products is having the advantages
such as add the value in the product converts into edible form preservation for longer
period use of surplus food less cost of production wide extent of the market and
generation of employment The study about the opinion of farmer respondents
towards the importance of processing in agriculture marketing was conducted and the
result is shown in the below Table 332
73
Table-332
Importance of Processing of Produce
Sl No
Particulars Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Add the value 45 (9000)
43 (9149)
45 (9184)
47 (9038)
47 (9038)
227 (9080)
2 Preservation for longer period
38 (7600)
36 (7660)
37 (7551)
40 (7692)
39 (7500)
190 (760)
3 Less cost of production
10 (1000)
09 (1915)
09 (1837)
10 (1923)
10 (1923)
48 (1920)
4 Wide extent of the marketing
03 (600)
03 (638)
03 (612)
03 (576)
04 (769)
16 (640)
5 Use of surplus food 01 (200)
- 01 (204)
01 (192)
01 (192)
04 (160)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The Table 332 reveals that the importance of processing of agriculture
producing in marketing more than 90 percent of farmer respondents are fully agreed
that processing definitely going to add the value to the agriculture producing in
marketing At the same time 76 percent of sample group are favoured that processing
helps in preservation of agriculture produce for longer period and 1920 percent and
640 percent of farmer respondents are opined that processing of agriculture produce
is important for less cost of production and wide extent of the marketing respectively
Only a minor percent ie 160 supported the processing helps to use of surplus food
From the above analysis it can be said that processing not only helps to farmers but
also to buyer of agriculture produce in many ways
74
Satisfaction towards Insurance Facilities
Table-333
Level of Satisfaction of Insurance Facilities
Sl No Satisfaction Level Agriculture Insurance
Total Insured Non-Insured
1 Satisfied 238 (9917)
02 (083)
240 (9600)
2 Unsatisfied 10 (10000)
- 10 (400)
Total 248 (9920)
02 (080)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Finance Requirements
According to Pyle ldquoMoney or credit is the lubricant that facilitates the
marketing machinerdquo there can be obstacles in performing various activities in case
there are inadequate funds to meet the expenditure involved in these functions The
biggest need of finance is to purchase the stock of agriculture produce and to meet the
agriculture expenses for farmers In the agricultural marketing the finance is having
more importance because of the nature of agricultural marketing The production is
seasonal and there is rush in the market at the time of harvest Huge amount is
required to farmers to meet fertilizers and pesticides expenses and to buyer for the
purchase of stock to get it stored and for its processing So the finance is required to
be arranged either by the owned fund or by taking loan Though the rate of interest
adds in the price of the commodity and the persons who is making this expenditure
realizes it as the reward of the function performed by him The researcher has
undertaken the study of finance facilities at the APMC yard other sources of credit
other than banking the factors affects the requirements of finance by agricultural
marketing firm as well as farmers and the interest paid on the credit the results of the
farmers opinion was collected and shown in the Table 334 335 336 and 337
75
Table-334
Satisfaction of Banking Facilities at APMC
Sl No Level of Satisfaction Availability of Banking Facilities
Total Available Not Available
1 Satisfied - 15 (602)
15 (600)
2 Unsatisfied 01 (10000)
234 (9398)
235 (9400)
Total 01 (040)
249 (9960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total The Table 334 depicts the farmerrsquos responses towards the availability of
banking facilities in the APMC yard and their satisfaction towards such services in the
market yard In all the APMCs of Gulbarga division which covers five districts only
6 of the respondents were satisfied and rest of 940 percent of farmers respondents
were unsatisfied for the non-availability of banking facilities in the yard
Table-335
Other Sources of Credit Facilities
Sl No Particulars Districts Total Gulbarga Bidar Koppal Raichur Bellary 1 Whole seller 09
(1800) 08
(1702) 08
(1632) 10
(1923) 10
(1923) 45
(1800) 2 Retail seller 05
(1000) 04
(851) 05
(1020) 05
(961) 04
(769) 23
(920) 3 Commission agents 32
(6400) 31
(6595) 32
(6531) 34
(6538) 33
(6346) 162
(6480) 4 Broker 03
(600) 03
(638) 03
(612) 03
(576) 03
(576) 15
(600) 5 Others 01
(200) 01
(212) 01
(204) 00
(000) 02
(385) 05
(200) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total The researcher has also attempted to collect the opinion from the farmers
about the availability of other sources of credit facilities to the buyer of agriculture
produce and to farmers The other sources of credit to farmers other than bank
includes wholesaler retailer commission agents and brokers Majority of farmer
76
respondents ie 6480 percent of sample size said that commission agents are most
easy source of credit followed by whole seller ie 18 percent and retailer seller ie
920 and brokers only 6 percent
Ranking the Factors of Finance Requirements
As the financial requirements in the agricultural marketing can play a big role
as stimulation of agricultural production and to promote the interest of agricultural
community There are two types of finance requirements one fixed capital which is
required for the building furniture office instruments etc to carry on the business of
agricultural market Second requirement variable capital this is required to purchase
of stocks to make the payment of transportation labourers bills and refreshments
etc The researcher during his field study has attempted to point out and tried to rank
the main factors for finance requirements The data so collected is shown in the Table
336
Table-336
Ranking the factors of finance requirements
Sl No
Finance Requirements
Ranking Finance Requirements Total
First Second Third Fourth Fifth
1 Nature of crop 123 (4920)
50 (2000)
35 (1400)
23 (920)
19 (760)
250 (100)
2 Terms of payments 84 (3360)
16 (640)
31 (1240)
105 (4200)
14 (560)
250 (100)
3 Economic conditions 09 (360)
132 (5280)
63 (2520)
25 (1000)
21 (840)
250 (100)
4 Fluctuations of prices 15 (600)
26 (1040)
104 (4160)
47 (1880)
58 (2320)
250 (100)
5 Volume of crop 19 (760)
26 (1040)
17 (680)
50 (2000)
138 (5520)
250 (100)
Total 250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
77
The above Table 336 shows that the ranking of finance requirements by the
farmer respondents Out of 250 sample respondents 123 farmers respondents ranked
first the nature of crop which determines the quantum of finance requirements
followed by 5280 percent towards economic conditions as ranked second and
fluctuation of prices ie 41 percent as third and terms of payment as fourth position
followed by volume of crop as fifth
Interest Paid on Bank Credit
Table-337
Interest Paid on Bank Credit
Sl No Particulars Interest Paid on Bank Credit
Total Very low Very high Average
1 Gulbarga 30 (6000)
12 (2400)
08 (1600)
50 (2000)
2 Bidar 27 (5745)
11 (2340)
07 (1915)
47 (1800)
3 Koppal 29 (5918)
12 (2449)
07 (1428)
49 (1920)
4 Raichur 32 (6154)
12 (2307)
08 (1538)
52 (2080)
5 Bellary 32 (6154)
13 (2500)
10 (1923)
52 (2080)
Total 150 (6000)
60 (2400)
40 (1600)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Services of Commission Agents
Commission agents are the main marketing functionaries operating in the
APMC yard among the other market participants They provide the necessary link in
the marketing of agricultural produce to the farmers They supply the necessary data
and useful assistance in the marketing of agricultural produce of the farmers They
help farmers in availing the services like assembling storing grading and finance etc
Hence the farmers are provided with channel of distribution by the APMC by
78
licensing these intermediaries and regulating their services The farmer respondents
were approached for obtaining their views about the quality of services covering
defects with commission agents commission paid to commission agents and their
satisfaction with commission agents The following Tables ie 338 339 and 340
gives the results of the survey data
During the field work by the researcher investigated to identify the defects
with commission agents from the farmers The data so collected are compiled and
shown in the Table 338 The major defect with the commission agent was they are
more favourable to the buyer which constitutes 68 percent of sample size 20 percent
of farmers respondents were pointed out the misguide by the commission agent to
farmers at the time of sale is the second major defects followed by high commission 8
percent lack of knowledge 320 and other defects constitutes 080 percent More than
70 percent of farmer respondents are taken the help of commission agents in selling
their agricultural produce out of that 5960 percent of farmers only satisfied with
services given by commission agents The 74 farmer respondents which constitutes
2960 percent of total sample group neither obtaining any form assistance in
marketing their produce and nor satisfied with services given by them
Table-338
Satisfaction towards Commission Agents
Sl No Level of Satisfaction Service from Commission Agents
Total Yes No
1 Satisfied 104 (5910)
45 (6081)
149 (5960)
2 Unsatisfied 72 (4090)
29 (3919)
101 (4040)
Total 176 (7040)
74 (2960)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
79
Table-339
Defects with Commission Agents
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Favoruable
to buyer 34
(6800) 32
(6808) 33
(6735) 35
(6730) 36
(6923) 170
(6800) 2 High
commission 04
(800) 04
(851) 04
(816) 05
(962) 03
(576) 20
(800) 3 Misguide 10
(1000) 09
(1915) 10
(2041) 10
(1923) 11
(2115) 50
(2000) 4 Lack of
knowledge 02
(400) 02
(425) 02
(408) 02
(385) 00
(000) 08
(320) 5 Others 00
(000) 00
(000) 00
(000) 01
(192) 01
(192) 02
(080) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
Table-340
Commission Paid to Agents
Sl No Particulars Commission Paid to Agents
Total Very Low Very High Average
1 Gulbarga 06 (1200)
18 (3600)
26 (5200)
50 (2000)
2 Bidar 08 (1702)
17 (3617)
22 (4680)
47 (1800)
3 Koppal 06 (1224)
17 (3469)
25 (5102)
49 (1920)
4 Raichur 06 (1153)
19 (3654)
27 (5192)
52 (2080)
5 Bellary 04 (769)
19 (3654)
30 (5769)
52 (2080)
Total 30 (1200)
90 (3600)
130 (5200)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
The responses of the farmers regarding the charges of the commission by the
commission agents clearly indicates that the commission agents charges excess
80
amount well above prescribed rate this can be found from the dissatisfaction of
farmers ie 36 percent of sample size Changing more than the prescribed by the act
by the commission agent is one of the marketing malpractices prevalent in the APMC
In general strict vigilance over such marketing malpractice is needed to safeguard the
interest of the farmers It is unfortunate to learn that a very small number of ie 12
percent of the sample group farmers have complained against the high commission
charged by the commission agents At the same time 52 percent ie more than one
half of the total sample size positively favoured towards the commission charges by
the commission agents saying that commission paid is average neither to high or too
low
Table-341
Cost of Cooli to Hamals
Sl No Particulars
Cooli to Hamals Total
Very High Very Low Average 1 Gulbarga 07
(200) 09
(1800) 40
(8000) 50
(2000) 2 Bidar 02
(425) 08
(1702) 37
(7872) 47
(1800) 3 Koppal 02
(408) 08
(1633) 39
(7959) 49
(1920) 4 Raichur 02
(385) 09
(1730) 41
(7885) 52
(2080) 5 Bellary 01
(192) 09
(1730) 42
(8076) 52
(2080) Total 08
(320) 43
(1720) 199
(7960) 250
(10000) Source Field survey Note Figures in bracket indicates percentage to total Table 341 depicts the cost of cooli paid to hamal in the market yard Hamals
are working in the APMC for loading and unloading of agriculture produce Farmer
respondents were satisfied with the cost of cooli to hamal it constitute 7960 percent
of total sample size only 320 percent of total told that hamals are charged high cooli
and 1720 percent of them totally satisfied with the charges paid to hamals Table 341
gives the level of satisfaction towards the services given by hamals Large number of
farmers are partly satisfied which constitute 6080 percent 376 percent fully satisfied
81
and 240 percent not at satisfied It is suggestible to the APMC to take measures to
control the hamals and their services to farmers
Level of Satisfaction with Hamals Services
Table-342
Level of Satisfaction with Hamals Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (3800)
30 (6000)
01 (200)
50 (2000)
2 Bidar 17 (3617)
29 (6170)
01 (213)
47 (1800)
3 Koppal 18 (3673)
28 (5714)
03 (612)
49 (1920)
4 Raichur 19 (3654)
32 (6153)
01 (192)
52 (2080)
5 Bellary 21 (4038)
33 (5962)
00 (000)
52 (2080)
Total 94 (376)
150 (6080)
06 (240)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Cooperation from APMC Officials
Along with the services from different market functionaries to farmers
cooperation from the APMC officials is also very important to farmers to boost their
psychological factors to bring their agricultural produce to APMC yard for sale A
good cooperation definitely creates belongingness in the minds of farmers The data
was collected through questionnaire about the level of satisfaction with the
cooperation from APMC officials and defects with them The information gathered is
shown in Table 343 and 344
82
Table-343
Level of Satisfaction with APMC Officials Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (2021)
08 (2105)
23 (1949)
50 (2000)
2 Bidar 17 (1809)
06 (1579)
24 (2033)
47 (1880)
3 Koppal 16 (2021)
05 (1315)
28 (2373)
49 (1960)
4 Raichur 20 (2127)
10 (2632)
22 (1864)
52 (2080)
5 Bellary 22 (2340)
09 (2368)
21 (1780)
52 (2080)
Total 94 (3760)
38 (1520)
118 (4720)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-344
Defects with APMC Officials
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Non-
cooperative 36
(200) 40
(2222) 40
(2222) 45
(250) 19
(1055) 180
(7200) 2 Favourable to
buyer 42
(1953) 43
(2000) 32
(1488) 41
(1907) 57
(2651) 215
(8600) 3 Laziness 18
(200) 17
(1888) 15
(1667) 20
(2222) 20
(2222) 90
(3600) 4 Expect money 08
(200) 06
(150) 05
(1250) 09
(2250) 12
(300) 40
(1600) 5 Improper
market data 14
(200) 13
(1857) 12
(1714) 14
(200) 17
(2429) 70
(2800) 6 Others - - 03
(300) 04
(400) 03
(300) 10
(400) Total 50
(2000) 47
(1880) 49
(1960) 52
(2080) 52
(2080) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
83
Malpractice Experience at APMC Yard
The major malpractices faced by the farmer respondents in the selected
APMCs while selling their agricultural produce in the study area is presented in the
Table 345
Table-345
Farmers Malpractice Experience at APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Inadequate grading
38 40 39 32 46 195
2 Inadequate packing
32 28 17 31 46 137
3 Unfavourable weightment
44 43 41 47 46 221
4 Excess samples 18 15 20 14 15 82
5 Inadequate supervision
21 23 28 22 25 119
6 Excess market charges
36 32 38 28 36 170
7 More favourable to buyer
41 42 43 48 49 223
8 Others 05 14 13 09 17 56
Total 50 (200)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The highest percentage of farmer respondents (221) are of the opinion that
unfavourable weighment in the sale is the major malpractice experienced by them
The second highest percentage of farmer respondents who are of the opinion that in
adequate grading by the buyer while selling their produce The third major
malpractice being taking excess market charges by commission agents as arbitrary
deduction in the sale amount of produce The next major malpractice (137) opined by
farmer respondents is regarding inadequate packaging to sale produce The other most
84
dominating and prevailing malpractice was found by the researcher is more
favourable to the buyer and improper weighment of their produce (223) in the market
yard For of respondents specified other malpractices as high wastages and non
payment of amount etc Inspite of all these malpractices affecting of the farmers it is
quite essential for all the APMCs in the study area should take some connective
measures to eliminate such malpractice Since the main purpose of the APMCs is to
regulate all marketing activities In the field study the steps taken by the APMC to
eliminate malpractice as expressed their views by the farmer respondents were
recorded very few percent of farmer respondents are of the opinion that APMC is
excising supervision over the malpractice regarding to selling and pricing the
commodity They also satisfied with the intervention of APMC officials to eliminate
malpractices in weighment grading activities but the farmer respondents were not at
satisfied with the APMC for not taking any steps to eliminate malpractices in payment
of sale price by the buyer to farmers
Disputes in APMC
So many disputes can arise among the farmers traders and middlemen over
the quality the grade the deductions and payment settlement etc The market
committees settles such disputes so the farmers as well as middlemen may not waste
their time and marketing in the court
During the field study the researcher has investigated to find out the opinion
of the farmers for main causes of disputes in the APMC yard The compiled
information is presented in the following Table 346
85
Table-346
Causes for Disputes in APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Price of produce
23 (2054)
20 (1786)
21 (1875)
24 (2143)
24 (2143)
112 (4480)
2 Quality of produce
10 (1786)
08 (1429)
05 (892)
11 (1964)
22 (3928)
56 (2240)
3 Weightment 30 (1974)
31 (2039)
32 (2105)
28 (1842)
31 (2039
52 (6080)
4 Timing of payment
37 (1989)
38 (2043)
40 (2150)
32 (1720)
39 (2096)
186 (7440)
5 Grading of produce
08 (1509)
10 (1887)
07 (1320)
11 (2075)
17 (3207)
53 (2120)
6 Warehousing 05 (1250)
08 (200)
07 (1750)
06 (1500)
14 (350)
40 (1600)
7 Others 18 (200)
15 (1667)
24 (2667)
25 (2777)
08 (888)
90 (3600)
Total 50 (2000)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Majority of respondents have disputes with commission agents as well as the
traders and few of them have disputes with hamals From the Table 346 it could be
seen that one of the major reasons for dispute being untimely payment (Delay in
payment) to farmer ie seller of agricultural produce Nearly more than half of the
respondents (7440) have opined that they are not being paid as per the provisions of
Act ie immediately after the sale of produce The next major causes of dispute being
weighment of produce Marketing three fifth of the respondents are not happy with
the weighment system prevailing in the market The third major causes of disputes is
being price of the produce About one third of the respondents (4480) have opined as
determination of the price of produce is also one of the major factor for the disputes
The other reasons of the disputes in the APMC yard in the Gulbarga division was
86
found are regarding quality of produce (2240) warehousing (1600) as determined by
farmers Very few of respondents feel that there is no reasons for disputes in the
APMC yards
As far as settlement of disputes are concerned farmer respondents are
preferred for settlement of disputes with traders at the level of secretary of the APMC
A part from that they also some time preferred to solve disputes through the dispute
committee where disputes are settled by arbitration Only 5 percent of the farmer
respondents from the sample size are of the opinion that disputes are settled by the
court of law In Gulbarga division of APMC maximum disputes were settled at
secretary level it calls for efficient secretaries in APMCs
Farmers respondents were also asked about the level of satisfaction in
settlement of disputes Nearly more than 40 percent of respondents are satisfied with
settlement of disputes However 30 percent of respondents are not fully satisfied with
settlement of disputes rest of the sample group were not given any response in this
regard
Quality of Services in APMC Yard
The sale of the agricultural produces by the farmers in the APMC yard
depends on the various services and their quality provided by the APMCs to the
farmers It is the true that if the services provided by APMCs to farmers are very
good large number of farmers bring their produce to the APMC market for sale
instead of open markets This definitely attracts more number of traders and market
functionaries to the market This results an impetus in getting not only good price for
their produce but also a competitive cost to the traders The farmer respondents were
asked to assess the quality of market services provided by the APMCs the responses
of respondents who expressed their level of satisfaction and dissatisfaction to different
facilities provided is presented in the following table
87
Table-347
Quality of Services at APMC
Quality of Services Name of APMC
Total Gulbarga Bidar Koppal Raichur Bellary
Very good 04 (200)
04 (200)
04 (200)
03 (150)
05 (250)
20 (80)
Good 41 (2930)
38 (1881)
40 (1980)
42 (2079)
41 (2029)
202 (808)
Bad 02 (250)
01 (1250)
01 (1250)
02 (250)
02 (250)
08 (320)
Very bad 01 (200)
01 (200)
02 (200)
01 (200)
-
05 (20)
Either bad good 02 (1333)
03 (200)
02 (1333)
04 (2667)
04 (2667)
15 (600)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total It could be observed from the above Table 347 that 8080 percent of farmer
respondents are of the opinion that the quantity of services provided by the APMC is
good 320 percent of total sample size of farmer respondents are if the opinion that it
is bad and 80 percent of the respondents are of the opinion that it is very good It is
to say satisfy that 8880 percent of farmer respondents are of the opinion that the
service provided by APMC is good and above average Hardly 520 percent of the
respondents expressed that the service provided are bad or very bad and 60 percent of
them neither opinioned bad nor good ie they were neutral
88
Table-348
Customary Deduction
Name of the APMCs As per Bye Laws More than Bye Laws Total
Gulbarga 05 (100)
45 (900)
50 (200)
Bidar 04 (851)
43 (9149)
47 (188)
Koppal 05 (1020)
44 (8980)
49 (1960)
Raichur 05 (961)
47 (9039)
52 (2080)
Bellary 07 (1346)
45 (8654)
52 (2080)
Total 26 (1040)
224 (8960)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
The study was conducted to know the farmers responses towards the
customary deductions from the sale of agricultural produce Sample groups were
given option whether customary deductions were as per bye laws or more than bye
laws Large number of farmer ie more than 89 of sample size were strongly
opinioned that customary deductions were not according
89
CHAPTER-IV PERFORMANCE EVALUATION OF APMCs
All the regulated markets working in Karnataka are distinct organization
created under the special clause with the objective of bringing the socio-economic
changes not only in the agricultural marketing sector but also economy as a whole
The existence of regulated markets creates an environment that is more favourable to
the existence of competitive conditions and to bring about the harmonious relations
between the farmers and market functionaries These organizations have the special
features as compared with the other organizations so the service of funds of regulated
markets and uses of the regulated market would be different keeping this the
following para attempted to analyze their financial performance in terms of their
profit position and growth in profit income position expenditure position and other
relevant financial aspects
A) Sources of Income of Regulated Markets
As far as regulated market are concerned they are non-profit or non-trading
organizations established with the objective of providing marketing services facilities
and other amenities for the producer of agricultural products who is in need of these
services for the facilitation of the sale of their produce To ensure smooth and
efficient services to farmer seller APMCs are required to own their establishments
and staff such as commission agent trader hamal and others who are carrying out
various markets functions ie grading processing weighment etc Hence APMCs
need finance to meet their administrative and management expenses of a recurring
and non-recurring nature of expenses The basic infrastructures are needed in the
provision of amenities and other facilities requiring capital investment for creating
these facilities in the market yard Establishment of infrastructure facilities not only
enough but also they need to be maintained the SC maintenance expenses is of
recurring in nature APMCs also need to have the permanent staff to do all the
functions in the market yard involves the fixed expenditure in the form of salaries
wages etc This necessitates the APMCs to have the permanent and regular sources of
income to meet all these regular expenses of fixed in nature and some portion of
recurring expenditure
90
APMCs are also required to meet the recurring expenditure such as
maintenance of road expenditure building godowns market yard vehicles and
machinery After the initial investment in these facilities from the borrowed capital
APMCs need to make payment of interest on loans tax charges payment of salaries
printing and stationery etc are to be paid periodically The different sources of
incomes through which the APMCs are earning revenue are shown in the following
parts along with the various expenditures by the APMC in the market yard
I) Market Fees
The APMCs Act and other laws relating to the agricultural marketing has
authorized all the regulated markets to levy and collect the market fees on the
agricultural produce bought for sales in the market yard The collection of the market
fees is the major source of income to the market committee and also the major source
of finance which determines to a very great extent the pace of development of market
yards both in terms of facilities and infrastructure
In traditional agricultural marketing market fees were collected on the basis of
the quantity bought for sale but these days the Acts and rules have been amended
more suitably giving maximum power to market committee to collect market fees on
the advalorem basis The chief items of the marketing charges are the market fee that
should be paid to the market committee the weighment fee commission brokerage
hamali charges and grading charges etc
In Karnataka in the beginning the market fees imposed on the buyers at the
rate not exceeding 30 paise per Rs100- of produce bought The APMC Act was
amended in 1973 August by an ordinance and the market fee to be levied was raised
to one rupees and the ordinance was however replaced by an act The rate of market
fees on every arrivals of cattle is Rs5- for each animal and rupee one for every sheep
and goats
The act also given some provisions for cooperative society doing business
within the market yard market fees shall be imposed and collected at the rate of 80
paisa per Rs100- of produce bought whereas in case of any other traders it is at the
91
rate of one percent on their total purchases ie one rupees per 1000 rupees This may
be considered as the cause for slow growth of agricultural marketing in Karnataka in
general and Gulbarga division in particular
II) License Fees
The various market functionaries who are operating in the regulated markets
of the state are the commission agents trader broker store keeper grader stockiest
importer exporter and any other functionary are imposed licence fee by the market
committee The license fee is the second main source of income to regulated market
This fee is collected in lum-sum as specified in the APMC act annually from each
applicant The total sum of income from license fees depends on the number of
market functionaries and the rate of license fee for various categories of market
functionaries
APMCs are authorized by KAPM (I) Act 1966 to impose and collect the
license fees from each category of market functionaries The maximum license fee
that could be levied under the act by the market committee on different types of
functionaries are Rs200 from traders and commission agents Rs100- each from
broker processor exporter importer ginner and crusher Rs25- from retail trader
and a nominal amount of Rupees 5 from hamal or cart man
III) Penalty
Penalties for evasion of payment of fee are imposed by the market
committees Section 65 (A) or KAPM Act 1966 empowers the regulated market
committee to punish with fine of not less than 12 percent But this penalty should not
exceed 30 percent on the amount of market fee If the penalty is not paid within the
specified time under bye laws made under section 65 of the act in it desecration also
recover similarly and pay over to the market committee or the board such amount
IV) Other Income Sources
APMCs collect market fees license fees and penalty from defaulters the
market committees are also generating the incomes from the following sources
a) Income from own properties
b) Income from deposits
92
c) Sale of books and forms
d) Sale of grass and cow dung
e) Fire fighter rent
f) Transfer fees and registration fees
g) Sale of plots etc
1) Income Position of Selected Regulated Markets
The income information of 15 APMCs ie three APMCs from each districts
in Gulbarga division were collected by the researcher from their annual reports and
other financial statements The component of the various income sources and their
respective figures provide a good insight to their financial performance The trends in
the growth of total incomes and individual incomes over a five year study period ie
2009-10 to 2013-14 helps in understanding the performance of all the selected
APMCs
I) Income Position of Gulbarga APMC
The income position of selected APMCs in Gulbarga district over the five
years study period are shown in the Table 41 below
Table 41 reveals a steady growth in income to the Gulbarga APMC in all the
years of study Conspicuously the total income from all sources to APMC was
Rs21976lakhs in 2009-10 while it was increased to 87054 lakhs in 2013-14 with a
annual aggregate growth of 5922 percent over the previous years When we look at
the figures of market fees holds the lions share in contributing income which range
between 8605percent to 9294 percent The same fact was also found in the APMC
Shorapur and APMC Shahapur In APMC Shorapur the percentage of market fees in
total income was in between 8420 percent to 9745 percent In case of Shahapur
APMC it ranges between lowest 6422 percent to highest of 6610 percent The other
major sources from where the APMC generated income were license fees levy and
licence fee penalty and other incomes generated was in total percentage fall between
906 percentage to 1995 percent in Gulbarga APMC In Shahapur and Shorapur
APMC penalty income was negligible it was Rs 031 lakhs to Rs 891 lakhs in
Shorapur APMC and Rs 126 lakhs to Rs 563 lakhs in Shahapur APMC during the
period under study
93
Table-41
Statement of Income of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 25106
(8605) 27111 (8763)
39233 (9155)
68713 (9294)
79170 (9094)
2 License Fees 321 (110)
487 (157)
561 (130)
664 (089)
733 (084)
3 Levy and License Fee 2069 (709)
1822 (58)
1981 (462)
2055 (277)
2382 (273)
4 Penalty 1180 (404)
642 (207)
519 (121)
625 (084)
1177 (135)
5 Interest on Deposits and other Income
500 (172)
574 (293)
558 (132)
1575 (256)
3592 (414)
Total 21976 (100)
30936 (100)
42852 (100)
73932 (100)
87054 (100)
Sl No APMC Shorapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 6012
(9039) 5647
(9281) 9607
(9745) 11365 (9079)
18674 (8420)
2 License Fees 104 (156)
106 (174)
078 (079)
117 (093)
117 (052)
3 Levy and License Fee 128 (192)
120 (197)
054 (054)
338 (270)
486 (219)
4 Penalty 200 (300)
101 (166)
031 (031)
206 (164)
891 (401)
5 Interest on Deposits and other Income
207 (313)
110 (182)
088 (011)
491 (394)
2008 (908)
Total 6651 (100)
6084 (100)
9858 (100)
12517 (100)
22176 (100)
Sl No APMC Shahapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1436
(8422) 1563
(7854) 1722
(7163) 3888
(7793) 5812
(6610) 2 License Fees 080
(469) 114
(572) 219
(910) 250
(501) 679
(772) 3 Levy and License Fee 034
(199) 042
(211) 0158 (657)
269 (539)
1071 (1218)
4 Penalty 126 (739)
183 (919)
196 (815)
204 (408)
563 (640)
5 Interest on Deposits and other Income
029 (171)
088 (444)
109 (455)
378 (759)
667 (76)
Total 1705 (100)
1990 (100)
2404 (100)
4989 (100)
8792 (100)
Source Annual reports of APMC Gulbarga 2009-10 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
94
It can be concluded from the above three APMCs in Gulbarga district that
Gulbarga APMC leading first in generating income Shorapur APMC is in second
position followed by APMC Shahapur
II) Income Position of Bidar APMC
Three APMCs from the Bidar district were selected for the comparative study
The income level of these three APMCs for the five years research period is presented
in the Table 42
The income generated by the APMC Bidar was lower in the beginning years
of research period ie it was Rs 18275lakhs in 2009-10 Rs16443 lakhs in 2010-11
and Rs17575 lakhs in 2011-12 During end years of research period it increased to
Rs31805 lakhs in 2012-13 and Rs 30420 lakhs in 2013-14 A critical look of the
figures in all the years of selected APMCs in Bidar district indicates that market fees
was the major component of total income of APMC which comprises an approximate
of 7910 percent in lowest side and 9554 percent in highest side Lowest market
fees percentage was recorded in APMC Aurad during 2012-13 and the highest
percentage was registered in 2013-14 in AMPC Bidar
95
Table-42
Statement of Income of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 16744
(9162) 15043 (9148)
15593 (8870)
29256 (9198)
29065 (9554)
2 License Fees 486 (265)
363 (220)
436 (248)
688 (216)
577 (1089)
3 Levy and License Fee 320 (175)
239 (145)
334 (190)
477 (149)
338 (111)
4 Penalty 600 (328)
466 (283)
515 (293)
719 (226)
202 (066)
5 Interest on Deposits and other Income
125 (070)
332 (204)
697 (397)
665 (211)
238 (08)
Total 18275 (100)
16443 (100)
17575 (100)
31805 (100)
30420 (100)
Sl No APMC Bhalki 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1424
(8431) 1232
(8999) 2423
(8846) 3596
(8304) 5871
(8544) 2 License Fees 096
(568) 081
(591) 163
(595) 293
(676) 306
(445) 3 Levy and License Fee 123
(728) 021
(153) 043
(156) 189
(436) 214
(311) 4 Penalty 022
(130) 017
(124) 034
(124) 138
(318) 222
(323) 5 Interest on Deposits and other
Income 024
(143) 018
(133) 076
(279) 114
(266) 258
(377)
Total 1689 (100)
1369 (100)
2739 (100)
4330 (100)
6871 (100)
Sl No APMC Aurad 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 903
(8014) 886
(8478) 887
(8431) 1333
(7910) 1617
(7922) 2 License Fees 093
(825) 081
(775) 083
(788) 123
(729) 132
(646) 3 Levy and License Fee 055
(488) 054
(516) 052
(494) 118
(700) 181
(886) 4 Penalty 006
(053) 004
(038) 012
(114) 051
(302) 050
(241) 5 Interest on Deposits and other
Income 069
(615) 020
(193) 018
(173) 060
(359) 061
(302)
Total 1126 (100)
1045 (100)
1052 (100)
1685 (100)
2041 (100)
Sources Annual reports of APMCs Bidar for 2003- 04 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
96
The other major sources contributing to the income of the APMCs in Bidar
district were license fee which was 646 percent to 625 percent in Aurad APMC
445 percent to 676 percent in APMC Bhalki and 216 percent to 1089 percent in
Bidar district APMCs The total income of Bhalki APMC was not constantly
increased during the study period It was fell to Rs 1369 lakhs in 2010-11 but it
increased during last three years of research period reached to Rs 6871 lakhs in
2013-14 As far as APMC Aurad is concerned it was inceased only in 2012-13 and
2013-14 As far as APMC Aurad is concerned it was increased only in 2012-13 and
2013-14 It was fall in 2010-11 and 2011-12 ie Rs 1045 lakhs and Rs 1052 lakhs
respectively It can be seen in table 42
III) Income Position of Koppal APMC
The statement of income of selected APMCs in Koppal district for the five
years ie 2009-10 to 2013-14 are given in table 43 The income of Koppal APMC
Gangavati APMC and Kustagi APMC were collected and analyzed in the following
paragraphs
The income generation in each of the five years by the APMCs selected as
sample in Koppal district was in APMC Koppal it was between Rs 3709 lakhs in
2009-10 to Rs 11032 lakhs in 2013-14 In APMC Gangavati a recorded
performance was found in earning incomes ie Rs 51692 lakhs in 2009-10 increased
rapidly to Rs91123 lakhs in 2013-14 APMC Kustagi was found to be least
performance in generation of the income The highest income was colleted by it was
Rs 3346 lakhs in 2013-14 and lowest was found in 2009-10 ie Rs 1341 The
annual aggregate growth in income generation by Koppal APMC was 3948 percent
per year The overall growth in APMC Gangavati income was 7628 percent over the
beginning year of research period The overall growth of percentage in the income of
APMC Kustagi during the five years study period was 14952 percent
97
Table-43
Statement of Income of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3269
(8813) 4072
(6961) 5675
(9119) 5682
(8775) 10021 (9083)
2 License Fees 090 (242)
110 (188)
101 (162)
097 (149)
106 (096)
3 Levy and License Fee 062 (167)
193 (329)
133 (213)
187 (288)
207 (187)
4 Penalty 104 (280)
211 (360)
146 (234)
178 (271)
255 (231)
5 Interest on Deposits and other Income
184 (498)
1263 (2162)
168 (272)
331 (517)
443 (403)
Total 3709 (100)
5849 (100)
6223 (100)
6475 (100)
11032 (100)
Sl No APMC Gangavati 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 49044
(9487) 67016 (9724)
75834 (9692)
74674 (9363)
84042 (9223)
2 License Fees 236 (045)
287 (042)
311 (039)
303 (038)
569 (062)
3 Levy and License Fee 703 (135)
515 (074)
807 (103)
716 (089)
1038 (114)
4 Penalty 189 (036)
212 (030)
267 (034)
258 (032)
317 (034)
5 Interest on Deposits and other Income
1520 (297)
887 (130)
1020 (142)
3804 (478)
5157 (567)
Total 51692 (100)
68917 (100)
78239 (100)
79755 (100)
91123 (100)
Sl No APMC Kustagi 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1214
(9052) 1234
(9167) 1384
(8216) 2079
(8266) 2516
(7519) 2 License Fees 024
(178) 029
(215) 031
(184) 036
(143) 041
(122) 3 Levy and License Fee 014
(104) 016
(118) 026
(154) 055
(218) 063
(188) 4 Penalty 001
(007) 001
(007) 003
(017) 007
(027) 018
(054) 5 Interest on Deposits and other
Income 088
(659) 066
(493) 240
(1429) 338
(1346) 708
(2117)
Total 1341 (100)
1346 (100)
1684 (100)
2515 (100)
3346 (100)
Sources Annual reports of APMCs Koppal for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
98
The glance at the each income figures with respect to three APMC in Koppal
district reveals that market fees again dominant ie 6961 percent to 9724 percent to
total income of the APMC Other important heads from which the income was
derived were license fee 096 to 242 in Koppal APMC 038 to 062 in
APMC Gangavati and 122 to 215 in APMC Kustagi during the period under
consideration ie 2009-10 to 2013-14 The penalty fees collected by the APMC
Kustagi and APMC Gangavati were almost below one percent to total income and this
was above 2 percent in APMC Koppal A sizeable income ie 498 percent to 2117
percent has also been contributed under the head interest on deposits and other
income The trend in this income was more or less similar during all the years of
research period
IV) Income Position of Raichur APMC
The income position and growth in income position of selected APMCs in
Raichur district was presented in the Table 44 The income was shown for the study
period ie 2009-10 to 2013-14 Riachur is considered to be a commercial street the
volume of business is high as compared to the Lingasugur Sindnoor APMC has
acquired a good position in the Raichur district as compared to other APMC in the
district
Table 44 gives the various incomes acquired by the selected APMC in the
Raichur district Raichur as a commercial centre there would be large number of
market functionaries and large volume of transactions Hence the total income of the
market was obviously quite high (around Rs120202 lakhs annually) During 2009-10
the total income of APMC Raichur was Rs 48932 lakhs APMC Sindnoor was Rs
20629 lakhs and APMC Lingasugur was just Rs 2907 lakhs It was shown an
increasing trend in all the three APMC selected in Raichur district during all the five
years of research period Income was found in the year 2013-14 in the sample APMC
from Raichur district Income from the other sources ie penalty interest on deposits
sale of shops godowns and sale of books and forms were much higher as compared to
the corresponding incomes in the other years of study Such an increase in the total
income was noticed in the Table 44
99
Table-44
Statement of Income of Selected APMCs in Raichur District
(Rs In lakhs)
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 45972
(9395) 55687 (9542)
68293 (9491)
82847 (8275)
106917 (8894)
2 License Fees 314 (064)
326 (056)
335 (046)
336 (033)
347 (028)
3 Levy and License Fee 1218 (248)
1463 (250)
1525 (211)
1540 (153)
1617 (134)
4 Penalty 218 (044)
250 (040)
269 (037)
289 (028)
313 (026)
5 Interest on Deposits and other Income
1210 (249)
630 (110)
1528 (215)
15105 (1511)
11008 (918)
Total 48932 (100)
58356 (100)
71950 (100)
100117 (100)
120202 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 18106
(8776) 21418 (9410)
28650 (9523)
33937 (7914)
45905 (9281)
2 License Fees 212 (102)
209 (091)
238 (079)
226 (052)
258 (052)
3 Levy and License Fee 1029 (498)
658 (1289)
613 (203)
1569 (365)
1292 (261)
4 Penalty 819 (396)
309 (135)
386 (128)
2080 (485)
1108 (224)
5 Interest on Deposits and other Income
464 (228)
166 (075)
197 (067)
5069 (1184)
892 (182)
Total 20629 (100)
22760 (100)
30084 (100)
42881 (100)
49456 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 2016
(6934) 2361
(6367) 3457
(5687) 3702
(5632) 4221
(5582) 2 License Fees 084
(288) 161
(434) 219
(360) 379
(576) 397
(521) 3 Levy and License Fee 493
(1695) 552
(1488) 817
(1344) 871
(1325) 1017
(1344) 4 Penalty 032
(110) 064
(172) 186
(306) 213
(324) 286
(378) 5 Interest on Deposits and
other Income 282
(973) 570
(1539) 1399
(2303) 1408
(2143) 1641
(2172)
Total 2907 (100)
3708 (100)
6078 (100)
6573 (100)
7562 (100)
Sources Annual reports of APMCs Raichur for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
100
In order to see the composition of the total revenue of Raichur Sindnoor and
Lingasugur APMCs the income statement of 2009-10 to 2013-14 was considered A
detailed analysis at the figures in the table 44 indicates that a market fee was the
major contributor to the total income which contributed to the tune of 5582 percent
to 9542 percent The other major sources of revenue to the APMC are interest on
deposits (182 to 2172) Penalty income was contributed average in APMC
Sindnoor moderate in APMC Raichur and minor contribution in APMC Lingasugur
V) Income Position of Bellary APMC
In Bellary district development activities undertaken by the department of
agriculture are about increasing yield of kharif season and other seasons under
irrigation this has naturally increased the market turnover in the Bellary district
APMC The details of the income collected by the sample APMCs in Bellary district
is shown in the Table 45
Table 45 gives the details of an account of income of the APMCs selected
from the Bellary district for the analysis purpose A birdsrsquo eye view of the total
income figures during financial years indicate that the annual average income of the
APMC of Bellary was around Rs 33660 lakhs except during the first three years of
the study period The market fees collected during the study years was also ranged in
between the 8165 in 2009-10 to 8942 in 2013-14 Levy and license fees were
contributed to the extent of 306 to 806 to total income and penalty amount was
just only to 075 to 462 to total incomes
101
Table-45
Statement of Income of Selected APMCs in Bellary District
(Rs In lakhs)
Sl No APMC Bellary 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 13400
(8165) 19398 (8680)
24037 (8514)
35774 (8865)
54510 (8942)
2 License Fees 316 (192)
343 (153)
0392 (139)
399 (098)
346 (056)
3 Levy and License Fee 1323 (806)
1529 (684)
2001 (708)
1912 (473)
1870 (306)
4 Penalty 320 (194)
370 (165)
462 (163)
451 (111)
458 (075)
5 Interest on Deposits and other Income
1052 (643)
706 (318)
1338 (476)
1816 (453)
3775 (621)
Total 16411 (100)
22346 (100)
28230 (100)
40352 (100)
60959 (100)
Sl No APMC Hospet 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3458
(8051) 4335
(7629) 5075
(7924) 5561
(8158) 6811
(7884) 2 License Fees 089
(207) 086
(151) 097
(151) 108
(158) 132
(152) 3 Levy and License Fee 407
(948) 592
(1041) 636
(993) 663
(972) 892
(1032) 4 Penalty 041
(095) 166
(292) 215
(335) 217
(318) 289
(334) 5 Interest on Deposits and
other Income 300
(699) 503
(887) 381
(597) 267 (39)
515 (598)
Total 4295 (100)
5682 (100)
6404 (100)
6816 (100)
8639 (100)
Sl No APMC Siraguppa 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 9054
(9160) 11330 (9131)
25909 (9352)
31838 (9237)
45500 (8285)
2 License Fees 068 (068)
071 (057)
107 (038)
108 (031)
105 (019)
3 Levy and License Fee 363 (367)
341 (274)
491 (177)
492 (142)
535 (097)
4 Penalty 019 (019)
047 (037)
054 (019)
089 (026)
096 (017)
5 Interest on Deposits and other Income
381 (386)
619 (501)
1143 (414)
1939 (564)
8676 (1582)
Total 9885 (100)
12408 (100)
27704 (100)
34468 (100)
54912 (100)
Sources Annual reports of APMCs Bellary for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
102
As far as APMC Hospet and APMC Siraguppa are considered the market fees
collected by these APMCs were became major sources of income followed by levy
and license fees and penalty It is noticed from the same table that APMC Siraguppa
has made history in generation of income during 2012-13 and 2013-14 ie it earned
Rs 34468 lakhs and 54912 lakhs incomes respectively Almost the income was
jumped five times to beginning year income ie 9885 lakhs This clearly carries the
message that APMC Siraguppa was not performed consistency in financial
performance APMC Hospet has ensured stability in the performance but in terms of
amount of collection it was positioned third place in selected APMC in Bellary
district
B) Uses of Incomes by APMCs
1) Market Committee Fund
Incomes received by the market committees in the form of market fees
licence fees and other fees or incomes by way of penalty are used as per the Section
90 of KAPM (R) Act of 1966 All expenditure incurred by the committee under or for
the purposes of this Act shall be defrayed out of the market fund and any surplus
remaining at the close of each market year after such expenditure has been met shall
be credited to the permanent fund of the committee within the three months of the
close of the year and it shall be used only towards incurring the expenditure of
permanent nature such as construction of buildings acquisition of lands or such other
purposes as the Director of Agricultural Marketing may specify
After meeting all such expenditure excess shall be invested in state
cooperative Apex bank or other cooperative banks or government savings banks
account The KAPM (R) Act 1961 clearly defined the purposes for which the market
committee fund may be expanded beyond the above mentioned The fund so created
should be allowed to uses for the purpose laid down in this Act ie providing
facilities in the market areas payment of allowances arrangement of amenities such
as grading and standardization collection and dissemination of market information
settlement of disputes payment of interest on borrowed loans etc
103
II) Contribution to Consolidated Fund
All the marketing committees are bound to contribute some amount to
Karnataka State Agriculture Marketing Board The Director of Agricultural Marketing
estimates the approximate expenditure likely to be incurred by the state government
during a particular financial year an account of salary and other allowances and
election of the members of the market committees Taking all these estimated
expenditures under section 91 of the KAPM Act the Director of Agricultural
Marketing shall by order determine the percentage of gross receipts that every
market committee must and should contribute to the state consolidated fund of the
state
III) Contribution to KSAM Board
Agriculture section 92 of the Karnataka produce marketing Act has made a
provision to create ldquoMarketing Development Fundrdquo and it is managing by the KSAM
board Every market committee is required to contribute every month to the board 5
percent of the gross receipts during the previous calendar month
IV) Other Expenditures
A part from the contribution to market committee fund contribution to state
consolidated fund and contribution to KSAM Board market committees are also
necessary to meet the other expenses regularly such as administration expenses which
includes salary to staffs printing and stationary legal fee advertisement rent
electricity bill and maintenance charges Expenditure to provide amenities to market
functionaries and farmers and other miscellaneous
Expenditure Position of Selected APMCs in Gulbarga District
In this part an effort is made to analyze data relating to the total expenditures
incurred and components of expenditures with respective figures to get the depth of
knowledge about the trends in growth of expenditures over a period of 5 years
between 2009-10 to 2013-14
104
Table-46
Trends in Growth of Expenditure of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga
Years 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 I Contribution to state
consolidated fund 15732 (7016)
13575 (6562)
18231 (7200)
33150 (7215)
35676 (7225)
II Contribution to KSAM board
1933 (862)
1484 (750)
2216 (875)
4024 (876)
4197 (850)
III Administrative expenses 2708 (1208)
2396 (1211)
3076 (1215)
5514 (1200)
6004 (1216)
IV Expenditure on amenities
1713 (764)
1832 (926)
1327 (524)
2532 (551)
2696 (546)
V Miscellaneous 337 (150)
496 (251)
472 (186)
727 (158)
805 (163)
Total 22423 (100)
19783 (100)
25322 (100)
45947 (100)
49378 (100)
2 APMC Shorapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
1359 (4500)
4146 (4052)
4140 (4050)
3340 (3890)
2439 (5220)
II Contribution to KSAM board
473 (1565)
1751 (1711)
1750 (1712)
1556 (1812)
905 (1936)
III Administrative expenses 665 (2216)
2587 (2528)
2581 (2525)
2128 (2478)
1182 (2530)
IV Expenditure on amenities
440 (1458)
1586 (1550)
1534 (1501)
1285 (1496)
107 (228)
V Miscellaneous 079 (261)
070 (159)
005 (212)
277 (324)
040 (086)
Total 3020 (100)
10234 (100)
10223 (100)
8586 (100)
4673 (100)
3 APMC Shahapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
363 (4801)
703 (6701)
920 (5742)
2480 (6688)
2308 (6454)
II Contribution to KSAM Board
054 (714)
064 (610)
067 (418)
081 (218)
074 (206)
III Administrative expenses 154 (2037)
128 (1220)
252 (1573)
501 (1351)
489 (1367)
IV Expenditure on amenities
065 (860)
072 (686)
143 (892)
263 (709)
258 (721)
V Miscellaneous 120 (1580)
082 (783)
22 (1375)
383 (1034)
447 (1252)
Total 756 (100)
1049 (100)
1602 (100)
3708 (100)
3576 (100)
Source Annual reports of APMC Gulbarga for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
105
As that of the income position the analyses of the pattern of expenditure also
important as the functions of the regulated markets are constrained by the financial
limitations Here the study of expenditure dimension of regulated market was felt
necessary The pattern of the growth in expenditure has shown a steady pace during
2012-13 and 2013-14 in APMC Gulbarga It was very lowest in 2010-11 ie 19783
lakhs The major items of expenditures to which Gulbarga APMC Shorapur APMC
and Shahapur APMC were diverted include contribution to state consolidated fund
expenditure on amenities and contribution to KSAM board During the research
period the share contribution to state consolidated fund was ranged between 6562
to 7223 in Gulbarga APMC this percent of share in total expenditure was in
between 3590 to 5220 in APMC Shorapur and in APMC Shahapur it was
4801 to 6701 At the same time the contribution to KSAM board was almost
below 20 to total expenditure in all three APMCs selected in Gulbarga district
The administration expenses was found to be second major item of
expenditure in sample units of Gulbarga district It was all most stable in Gulbarga
APMC ie 12 and above 2216 to 25305 in Shorapur APMC and 1220 to
2037 in the Shahapur APMC The other expenses such as the security facilities
rent taxes electricity printing and stationary charges etc remained as minor
expenditure
II) Expenditure position of selected APMCs in Bidar District
The expenditure statement relating to the selected APMCs in Bidar district is
shown in the below Table 47 The percentage of individual expenditure to total
expenditure for the period of five years is also presented in the same table
A glance on the statement of trends in growth of expenditure in the selected
APMC in Bidar district reveals that the Bidar APMC had an annual expenditure
around Rs 145 lakhs In case of APMC Bhalki annual average expenditure was
around Rs 2118 lakhs and in APMC Aurad this amount was Rs 1701 lakhs
106
Table-47
Trends in Growth of Expenditure of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
6600 (7141)
10883 (7016)
8645 (6625)
10623 (6740)
13753 (7267)
II Contribution to KSAM board
1761 (823)
1260 (812)
1370 (1050)
1668 (1058)
1972 (1042)
III Administrative expenses
1382 (1496)
1945 (1254)
1249 (957)
1597 (1013)
2292 (1211)
IV Expenditure on amenities
275 (298)
462 (298)
1019 (781)
986 (568)
759 (401)
V Miscellaneous 225 (242)
961 (620)
766 (587)
888 (621)
149 (079)
Total 9243 (100)
15511 (100)
13049 (100)
15762 (100)
18925 (100)
2 APMC Bhalki 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
503 (5164)
619 (5213)
768 (4931)
1245 (4777)
2284 (5359)
II Contribution to KSAM board
069 (711)
076 (640)
184 (1183)
334 (1281)
889 (2085)
III Administrative expenses
380 (3902)
426 (3586)
547 (3510)
918 (3525)
858 (2013)
IV Expenditure on amenities
011 (112)
031 (265)
041 (260)
087 (335)
189 (444)
V Miscellaneous 012 (211)
036 (296)
018 (116)
023 (082)
042 (099)
Total 975 (100)
1188 (100)
1558 (100)
2607 (100)
4262 (100)
3 APMC Aurad 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
365 (5577)
188 (3067)
256 (3514)
486 (4065)
2185 (4113)
II Contribution to KSAM board
048 (740)
093 (1516)
089 (1219)
182 (1517)
782 (1471)
III Administrative expenses
211 (3210)
186 (3050)
243 (3341)
361 (3016)
1521 (2862)
IV Expenditure on amenities
014 (221)
105 (1725)
121 (1661)
150 (1255)
751 (1415)
V Miscellaneous 018 (252)
041 (642)
019 (265)
018 (147)
074 (139)
Total 656 (100)
613 (100)
728 (100)
1197 (100)
5313 (100)
Source Annual reports of APMC Bidar for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
107
From the table 47 it was clear that administrative expenses constitute 957
to 1496 in total expenses in APMC Bidar it was as high as compared to APMC
Bidar and APMC Aurad ie 2013 to 3902 during the research period In Aurad
the situation was completely different ie it ranged between 2862 to 3341
during the same period ie 2009-10 to 2013-14
The trends in the contribution to state consolidated fund also showed an
increasing and decreasing trend in all the three APMCs in Bidar district during the
plan period In Bidar APMC it was registered lowest contribution to state
consolidated fund in the year 2009-10 ie Rs 6600 lakhs and the highest in Rs
13753 lakhs in 2013-14 Similarly in case of APMC Bhalki lowest was recorded in
2009-10 ie Rs 975 lakhs and highest in the year 2013-14 ie Rs 4262 lakhs But
in APMC Aurad beginning year ie 2009-10 it was Rs 365lakhs decreased to Rs
188 lakhs in 2010-11 and again increased to maximum Rs 2185 lakhs in 2013-14
Apart from a sizeable proportion of expenditure (ie 116 to 961) was made
under the head miscellaneous
III) Expenditure position of selected APMCs in Koppal
The trends in the growth of total expenditure incurred by the sample APMCs
in the Koppal district is presented for the five years period ie 2009-10 to 2013-14 in
the below Table 48
Table 48 depicts the expenditure position of three APMCs selected for the
present study in the Koppal district A detailed analysis of this indicates that the total
expenditures incurred by APMC Koppal were increased through out the study period
from Rs 2217 lakhs in 2009-10 to Rs 6862 lakhs in 2013-14 The same situation
was also found in case of APMC Gangavati ie Rs 29714 lakhs in 2009-10
increased to Rs 54160 lakhs in 2013-14 and in APMC Kustagi total expenditure was
Rs 4015 lakhs in 2009-10 raised to Rs 6295 lakhs in 2013-14
108
Table-48
Trends in Growth of Expenditure of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
1157 (5217)
1522 (5071)
2205 (5316)
2261 (5555)
4023 (5862)
II Contribution to KSAM board
143 (646)
224 (748)
307 (741)
287 (705)
537 (782)
III Administrative expenses
668 (3014)
944 (3147)
1167 (2813)
1101 (2704)
1720 (2506)
IV Expenditure on amenities
226 (1019)
267 (891)
333 (805)
332 (815)
480 (700)
V Miscellaneous 023 (104)
044 (143)
137 (325)
091 (221)
102 (150)
Total 2217 (100)
3001 (100)
4149 (100)
4072 (100)
6862 (100)
2 APMC Gangavati 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
15819 (5324)
23396 (5410)
28621 (5450)
27388 (5470)
29896 (5520)
II Contribution to KSAM board
1902 (640)
2422 (560)
2757 (525)
2753 (550)
3629 (670)
III Administrative expenses
8338 (2806)
12541 (2900)
15807 (3010)
14821 (2960)
15381 (2840)
IV Expenditure on amenities
3310 (1114)
4329 (1001)
4989 (950)
4657 (930)
4604 (850)
V Miscellaneous 345 (116)
558 (129)
342 (065)
451 (090)
650 (120)
Total 29714 (100)
43246 (100)
52516 (100)
50070 (100)
54160 (100)
3 APMC Kustagi 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2168 (5400)
2357 (5610)
2498 (5520)
2647 (5620)
3607 (5730)
II Contribution to KSAM board
225 (560)
189 (450)
288 (660)
363 (770)
535 (850)
III Administrative expenses
1169 (2913)
1195 (2845)
1326 (2930)
1232 (2615)
1711 (2718)
IV Expenditure on amenities
422 (1050)
405 (965)
319 (705)
396 (840)
319 (507)
V Miscellaneous 031 (077)
056 (130)
094 (185)
072 (155)
123 (195)
Total 4015 (100)
4202 (100)
4525 (100)
4710 (100)
6295 (100)
Source Annual reports of APMC Koppal for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
109
When we look at the percentage of specific expenditure in the total
expenditure contribution to state consolidated fund was major component ie in
Koppal APMC 5071 to 5862 in APMC Gangavati 5324 to 5520 and in
APMC Kustagi 54 to 5730 during the plan period However contribution to
KSAM Board constitute an annual average around Rs 3 lakhs per year in APMC
Koppal Rs 2693 lakhs per year in APMC Koppal Rs 2693 lakhs per year in
APMC Gangavati and Rs 32 lakhs per year in APMC Kustagi Administration
expenses also got secondary importance in the expenditure position followed by the
expenditure on amenities in the market yard Miscellaneous expenditure constitutes a
negligible percentage in the total expenditure
IV) Expenditure position of selected APMCs in Raichur
Table 49 depicts the year wise total expenditure spent by the sample
APMCs in the Raichur district during the five years period of study ie 2009-10 to
2013-14 Table 49 reveals that the expenditure incurred by the APMC Raichur was
not constantly increased It was decreased in 2010-11 and 2011-12 indicating that it
was more efficient in control of expenditure but during last two years of plan period it
increased from Rs44965 lakhs in 2009-10 to Rs67431 lakhs in 2013-14 with annual
aggregate growth over pervious year Rs4493 lakhs
In case of Sindnoor APMC the annual growth during the study period was
Rs3835 lakhs over the previous year As far as APMC Linagsugur is concerned this
was Rs 564 lakhs A keen observation on the expenditure statement of selected
APMCs in Raichur district points out that the APMC Raichur has got first rank in
terms of the total expenditure incurred among the selected APMCs in the district
followed by the APMC Sindnoor and APMC Lingasugur respectively As use well
contribution to state consolidated fund remained the dominating expenditure in the
total expenditure followed by expenditure on amenities Administration expenses and
contribution to KASM Board The state consolidated fund which was eaten away the
major position of total expenses (6535) to 7238 in Raichur APMC 5518 to
5730 in APMC Sindnoor and 5518 to 5730 in APMC Sindnoor and 5566 to
600 in APMC miscellaneous expenses remained minor expenses in total expenses
110
Table-49
Trends in Growth of Expenditure of Selected APMC in Raichur District
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 31862 (7086)
24764 (6535)
30247 (7100)
39880 (7238)
21275 (3155)
2 Contribution to KSAM board
3795 (0844)
5135 (1355)
5197 (1220)
6391 (1160)
3539 (525)
3 Administration expenses 5216 (1160)
4036 (1065)
4090 (960)
4849 (880)
(1550)
4 Expenditure on Amenities 2905 (646)
2065 (545)
2185 (513)
3471 (630)
(4210)
5 Miscellaneous 1187 (264)
1894 (500)
882 (207)
508 (092)
(560)
Total 44965 (100)
37894 (100)
42601 (100)
55099 (100)
67431 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 6283
(5655) 7740
(5518) 11182 (5685)
14152 (5690)
17353 (5730)
2 Contribution to KSAM board
833 (750)
1000 (713)
1241 (631)
1644 (661)
1968 (650)
3 Administration expenses 589 (530)
588 (419)
1017 (517)
1300 (523)
1332 (440)
4 Expenditure on Amenities 3350 (3015)
4418 (3150)
5959 (3030)
7496 (3014)
9443 (3118)
5 Miscellaneous 0050 (050)
280 (200)
270 (137)
279 (112)
188 (062)
Total 11111 (100)
14026 (100)
19669 (100)
24871 (100)
30284 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 1102
(5566) 1364
(5818) 2193
(5910) 2674
(6130) 2879
(6000) 2 Contribution to KSAM
board 127
(640) 331
(1431) 382
(1030) 689
(1580) 773
(1612) 3 Administration expenses 159
(804) 144
(614) 394
(1061) 267
(611) 362
(755) 4 Expenditure on Amenities 500
(2530) 483
(2060) 673
(1814) 628
(1440) 710
(1480) 5 Miscellaneous 092
(460) 023
(095) 069
(185) 104
(239) 074
(153) Total 1980
(100) 2345 (100)
3711 (100)
4362 (100)
4798 (100)
Source Annual reports of APMC Raichur for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
111
V) Expenditure position of selected APMCs in Bellary
In the Table 410 the details of the various expenditure incurred by the three
APMCs which are taken for the research as sample in the Bellary district are shown
clearly along with individual expenditure percentage to total
The total expenditure for all the five years of the study and the details of
expenditure under each heads along with the percentage to total of Bellary APMC
indicates that a rapid growth was found in total expenditure ie Rs 8835 lakhs in
2009-10 increased to Rs 33116 lakhs in 2013-14 with compound annual growth
during study years 27482 This compound growth in the APMC Hospet was found
to be negative in 2010-11 and 2013-14 and positive in 2011-12 and 2012-13 In case
of Siraguppa APMC the compound growth was 47147 during research period
112
Table-410
Trends in Growth of Expenditure of Selected APMC in Bellary District
(Rs In lakhs)
Sl No APMC Bellray
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
4477 (5067)
3860 (2767)
4820 (2026)
6933 (2811)
10076 (3042)
II Contribution to KSAM board
746 (844)
643 (461)
1803 (758)
1155 (468)
1679 (507)
III Administrative expenses
3310 (3746)
4673 (3350)
15965 (6711)
16011 (6490)
20499 (6190)
IV Expenditure on amenities
276 (312)
159 (114)
1190 (500)
558 (226)
838 (253)
V Miscellaneous 026 (031)
011 (007)
008 (005)
011 (005)
024 (008)
Total 8835 (100)
13946 (100)
23766 (100)
24668 (100)
33116 (100)
2 APMC Hospet 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2406 (7014)
2210 (7161)
2852 (6562)
2961 (6860)
2460 (7176)
II Contribution to KSAM board
320 (932)
216 (700)
416 (957)
429 (993)
317 (924)
III Administrative expenses
481 (1402)
418 (1354)
425 (978)
402 (931)
418 (1219)
IV Expenditure on amenities
114 (332)
101 (327)
269 (618)
219 (507)
125 (365)
V Miscellaneous 109 (320)
141 (458)
384 (885)
305 (709)
108 (316)
Total 3430 (100)
3086 (100)
4346 (100)
4316 (100)
3428 (100)
3 APMC Siraguppa 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
4088 (5154)
4055 (5011)
7662 (4813)
9122 (4313)
28595 (6310)
II Contribution to KSAM board
564 (711)
544 (672)
1238 (778)
1581 (748)
2626 (579)
III Administrative expenses
3030 (3820)
2903 (3587)
5026 (3157)
6919 (3271)
9763 (2154)
IV Expenditure on amenities
167 (211)
293 (362)
883 (555)
1477 (698)
2888 (637)
V Miscellaneous 082 (104)
297 (368)
1111 (697)
2051 (970)
1452 (320)
Total 7931 (100)
8092 (100)
15920 (100)
21150 (100)
45324 (100)
Source Annual reports of APMC Bellary for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
113
C) Profit Position
Profit is the excess of income over expenditures by the organization Profit is
the best indicator of the performance of any organization Higher the profit higher is
the efficiency and vice-versa APMCs are established not for profit motive but profits
remain important for their survival for future An attempt here is made to know profit
position by taking income and expenditure of all the selected APMCs in the Gulbarga
division and conclusion is drawn about their performance by comparing in APMC
with other APMC and also level of performance during the period under study
Table 411 depicts the year wise income expenditure and profitloss position
of the selected APMCs in the Gulbarga district The income of the three sample
APMCs from the Gulbarga district was shown an upward trend during the research
period ie 2009-10 to 2013-14 expect in the year 2010-11 the APMC Shorapur
income was down to Rs 6084 lakhs from Rs 6651 lakhs in 2009-10 When we see
the expenditure position of all the APMCs in the same table neither it was constantly
increasing or decreasing over a period of time it was showing zigzag trend Expect
the Shahapur APMC remained increasing during the plan period from Rs 756 lakhs
in 2009-10 to Rs 3576 lakhs in 2013-14
114
Table-411
Profit Position of Selected APMC in Gulbarga District
(Rs In lakhs)
Year Gulbarga Shorapur Shahapur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 29176 22423 6753 6651 3020 3631 1705 756 949
2010-11 30936 19783 11153 6084 10234 - 4150 1990 1049 941
2011-12 42852 25322 17530 9859 10223 0364 2404 1602 802
2012-13 73932 45947 27984 12517 8586 3931 4989 3708 1281
2013-14 87054 49378 37676 22176 4673 17502 8792 3576 5216
Source Annual Reports of Gulbarga APMC for 2009-10 to 2013-14
115
The detailed study of profit position of the selected APMC in Gulbarga district
also indicates that Shahapur APMC has made average amount of the profit in research
period without incurring any loss in the same period But APMC Shorapur had made
huge loss in the year 2010-11 ie Rs 4150 lakhs during heavy expenditures As per
APMC Gulbarga is concern profit was increased steadily from Rs 6753 lakhs in
2009-10 to Rs 37676 lakhs in 2013-14 with an annual aggregate growth of Rs 6184
lakhs per year
The Table 412 reveals that the profit or loss position of the selected APMCs
in Bidar district The analysis of profit of above APMCs in the table indicates that
Bidar APMC has positioned first in earning profit among three APMCs followed by
Bhalki APMC and APMC Aurad During the research period APMC Aurad had
incurred to Rs 3271 lakhs in 2013-14 The profit of Bidar APMC was ranged in
between Rs 932 lakhs to Rs 16042 lakhs and APMC Bhalki it was lowest to Rs
181 lakhs to highest Rs 2608 lakhs Both income and expenditure of Bidar APMC
was increased rapidly over a period time But in case of Aurad APMC the degree of
growth of expenditure was greater than the degree of growth in income which
reported slow growth in the profit The situation was different in case of APMC
Bhalki it was opposite and was almost 4 times increased in APMC Bhalki ie from
Rs 714 lakhs to Rs 2608 lakhs profit remained stable in APMC Aurad ie in
between Rs 323 lakhs to Rs 16042 lakhs in APMC Bidar during the period under
consideration
116
Table ndash 412
Profit Position of Selected APMCS in Bidar District
(Rs In lakhs)
Year Bidar Bhalki Aurad
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 18275 9243 9031 1689 975 714 1126 656 469
2010-11 16443 15511 932 1369 1188 181 1045 613 432
2011-12 17575 13049 4526 2739 1558 1181 1052 728 323
2012-13 31805 15762 16042 4330 2607 1722 1685 1197 487
2013-14 30420 18925 11495 6871 4262 2608 2041 5313 - 3271
Source Annual Reports of Bidar APMC for 2009-10 to 2013-14
117
The Table 413 deals with the trends in growth of income expenditure and
profit position of sample group of APMCs from the Koppal district Koppal district
APMCs were considered to be minor APMCs in the Gulbarga division A micro study
of these three APMCs in Koppal district reveals that APMC Gangavati was a leading
APMC in the Koppal district as it made super profit during the research period as
compared to APMC Koppal and AMPC Kustagi APMC Koppal has made average
profit ie Rs 1492 lakhs to Rs 4170 lakhs and APMC Kustagi has made normal
profit ie from Rs 540 lakhs to Rs 3995 lakhs during the five years study period
ie 2009-10 to 2013-14 Increased expenditures in APMC Koppal and APMC
Kustagi was eaten the profit
Profit position of the three APMCs from the Raichur district for the period of
five years ie 2009-10 to 2013-14 is shown in the Table 414 The table clearly
shows the year wise income position and its growth expenditure position and its trend
and the profit trend Among these three APMCs selected in sample from the Raichur
district Raichur APMC has earned highest amount of income which resulted highest
profit during the study period as compared to the APMC Sindhnoor and APMC
Lingasugur The profit of APMC Raichur was Rs20629 lakhs in 2009-10 increased
to Rs 45018 lakhs in 2013-14 during the research period During the same period
the profit of APMC Sindhnoor was increased from Rs 9518 lakhs to Rs 19171
lakhs and APMC Lingasugur from Rs 1327 to Rs 2201 lakhs with percentage
growth of almost 100 and 9026 respectively
118
Table-413
Profit Position of Selected APMCs in Koppal District
(Rs In lakhs)
Year Koppal Gangavati Kustagi
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 3709 2217 1492 51692 29714 21977 1185 645 540
2010-11 5849 3001 2848 68917 43246 25671 1346 775 571
2011-12 6223 4149 2074 78239 52516 25722 1684 1005 679
2012-13 6475 4072 2403 79755 50070 29684 2514 1469 1045
2013-14 11032 6862 4170 91123 54160 36963 10291 6295 3995
Source Annual Reports of Koppal APMC for 2009-10 to 2013-14
119
Table-414
Profit Position of Selected APMCs in Raichur District
(Rs In lakhs)
Year Raichur Sindnoor Lingusugur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 40895 19035 21859 20629 111111 9518 3761 2434 1327
2010-11 48932 44965 3966 22760 14026 8734 2907 1980 926
2011-12 58356 37894 20462 30084 19669 10414 3708 2345 362
2012-13 71950 42601 29348 42881 24871 18009 6078 3711 2367
2013-14 100117 55099 45018 49455 30284 19171 7562 4362 2201
Source Annual Reports of Raichur APMC for 2009-10 to 2013-14
120
The Table 415 reveals the year wise profit made by the sample APMCs in the
Bellary district APMC Hospet has made least profit during all five years research
period but it increased from Rs 864 lakhs in 2009-10 to Rs 5211 lakhs in 2013-14
APMC Bellary had achieved significant progress in earning profit as compared to
APMC Siraguppa The profit of APMC Bellary steadily increased around 4 times
over the beginning year ie Rs 7576 lakhs in 2009-10 to Rs 27843 lakhs in 2013-
14 But the APMC Sirguppas profit was highest recorded in 2011-12 and 2012-13 ie
Rs 11784 lakhs and Rs 13315 lakhs respectively
121
Table-415
Profit Position of Selected APMCS in Bellary District
(Rs In lakhs)
Year Bellary Hospet Siragoppa
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 16411 8835 7576 4295 3430 864 9885 7931 1954
2010-11 22346 13946 8399 5682 3086 2596 12408 8092 4316
2011-12 28230 23786 4444 6404 4346 2058 27704 15920 11784
2012-13 40352 24682 15670 6816 4316 2499 34466 21150 13315
2013-14 60959 33116 27843 8639 3428 5211 59912 45324 9587
Source Annual Reports of Bellary APMC for 2009-10 to 2013-14
122
CHAPTER-V FINDINGS SUGGESTIONS AND CONCLUSION
FINDINGS
1 During field study the researcher found that all the APMCs working in
Gulbarga division are suffered storage facilities in general and cold storage
facilities in particular This calls for medium and big producers to take storage
facilities by paying heavy fees to private service provider
2 The field investigation resulted that the farmers have been experienced
difficulties in getting timely payment even after the sale of their produce
3 It is learnt from the field study of market participant that larger participant
were qualified upto secondary and the technical qualification such as ITI
Diploma etc Education among market participant is considered to be most
significant factor in discharging their duties and responsibilities more
efficiently and effectively
4 The analysis of nature of participant in the agricultural market revealed that
commission agents were dominant in the total market participant followed by
traders with 25 of sample group and Hamalas which constitute 16 of
sample size
5 Macro studies of facilities at the APMC yard in five districts of Gulbarga
division opinioned the lack of facilities ie Non-availability of drinking water
canteen transport and communication facilities etc One sample lsquoTrsquo test was
applied and the result shows that lsquotrsquo values ranged for above facilities between
46425 to107000 Mean difference was found between 14400 to 2000
6 The correlation between two variable ie advance money and number of
commodities was +0611 which is insignificant Similarly the correlation
between transport facility and role of government in market and graduation
facility with more representatives from farmers resulted 0445 and 0948 also
in significant but the only significant factor found between difficulty of
storage and increase in facilities with a value of 0508
7 There are different sources of incomes available to APMC These sources may
be classified like market fees licence fees penalty etc Among these sources
123
of income market fees collected by APMC were major but other incomes are
also envisaged in KAPM (R) Act 1966
8 The expenditure position of the selected APMCs in Gulbarga division which
covers five districtrsquos found that major use of expenditure by each APMCs
were contribution to state consolidated fund and contribution to KSAM Board
which was ranged between 3042 to 7210 and 564 to 2630
respectively
9 There are only three charges allowed for deduction from the sale produced of
farmers in Gulbarga APMC division they are commission to agents Hamali
and weighment Field investigation by researcher found that these charges are
nominal
SUGGESTIONS
1 To achieve its (APMC Act) objectives and for effective implementation of its
bye law and policies it is suggested that APMCs should open its branches at
Hobli level so that they may help and guide the formers in marketing of their
grown agricultural produce
2 It is recommended to all APMCs in Gulbarga division to take efforts to stop
rural marketing to get better price An inspection team has to be formed to
stop local sales The team member should visit all the villages coming under
the jurisdiction of the APMC during Post harvest
3 Lots of changes have to be brought into the marketing activities in the APMC
yard Scientific grading and enlightment for all commodities in the market
yard be made compulsory in a phased manner
4 Illiteracy of formers and lack of Medias for communication of information has
been a big problem in rural as well as semi-urban areas The information
obtained should be in a position to help them in decision making Hence it is
recommendable to each APMC for equipping the intelligence cell and branch
offices with highly qualified and trained staff to perform the job quicker to
help producers at right time
5 The existing facilities of processing and storage in all the APMC of Gulbarga
division are inadequate This gap need to be filled up The local government
administrative bodies financial agencies and APMCs should motivate the
124
processing units to be set up and also more godowns are to be encouraged for
construction in these areas
6 Proper co-ordination between the financial agencies established by APMCs or
any other organization to be set up for this purpose is necessary This
definitely prevent the exploitation of farmers by private financiers This
problem needs to be tackled on priority basis in Gulbarga division
7 To avoid the injustice at the time of weighment of farm produce on arrival
and sale APMCs needs to make it compulsory to install electronic weighting
machines The issue of weighment note to the agriculturist by agents is made it
compulsory
8 As far as Gulbarga division APMCs are concerned they have completely
neglected the importance of two marketing services ie assembling and
processing The absence of these two services in the study area is a reflection
on its lethargic and indifferent attitude in providing a comprehensive package
of marketing services to the rural farmers
9 Lots of changes have to be brought into the payment to the farmers after sales
The strong actions against the defaulting commission agent should be
exercised and also cautioned against such delays on their part when any
complaint from the farmers regarding the delay In this regard formulation of
rigid policy is recommended at all APMCs
10 Some of the APMCs in Gulbarga division are still practicing mutual
negotiation method of sale this leads unfavourable price for the agricultural
produce Auction system of sale is made compulsory for all commodities
arriving in the market yard and negotiation method is to be prohibited
11 It was noticed from the market yard during the field visit different types of
malpractices on the part of the unscrupulous market functionaries In order to
eliminate this harassment to farmers the marketing committee has to detect
such unethical practices from market participants and they be severely
punished with fine and imprisonment
12 To improve the overall quality of services (marketing services and
infrastructure facilities) it is strongly advisable to marketing committees to
implement all the provisions lay down in KAPM (R) Act 1966 and rules in
1968 along with suggestions made by Indian standards Institute (RSI) for the
benefit market functionaries in general and farmers in particular
125
13 A network of rural storage centres should be built on a priority basis in order
to prevent distress sales wastage and loss arising out of inadequate and
defective storage facilities
14 These storage centres may be constructed and managed by panchayats
cooperatives and other suitable agencies selected by the State Government
15 Farmers should be provided with receipts for the commodities stored by them
Each receipt should be a negotiable instrument to enable them to obtain credit
from banks
16 The banks should provide credit to the extent of 90 percent of the value of the
stocks stored by the farmers and the credit should be provided at concessional
rates of interest
17 Arrangements for the display of prices on notice boards at important public
places like hospitals schools panchayat ghars etc should be made
18 There must be proper coordination between market intelligence and policy
making departments so that the later may better understand the problem and
can make such adjustments in the information as may be called for
CONCLUSION
Indiarsquos long-neglected agriculture sector is all set to grow faster We have
improved a lot since independence In the last few years it has grown at an average
rate of 31 only and there is a need to step up the growth in this sector Then only
Indiarsquos GDP growth cross 9 and rural income and rural employment increases
It is time to APMCs to give concrete shape to the agro-industrial integration
by starting industrial units based on agricultural raw-materials This integration will
create a better economic atmosphere for the growth of the Karnataka region as well as
Gulbarga division
126
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1 Acharya S S and D P Chaudhri (Ed) Indian Agricultural Policy at Cross-
Roads Rawat Publications Jaipur 2001
2 Acharya S S and N L Agarwal Agricultural Prices-Analysis and Policy
Oxford and IBH Publishing Co Pvt Ltd New Delhi 1994
3 Acharya S S Agricultural Production Marketing and Price Policy-A Study
of Pulses Mittal Publications Delhi-110035 1988
4 Acharya S S M S Rathore and P R Sharma Agricultural Marketing - A
National Dialogue Institute of Development Studies Jaipur 1998
5 Agarwal N L Agricultural Prices and Marketing in India-An Analytical
Case Study of Rajasthan Mittal Publications Delhi-110035 1986
6 Agricultural Technology Management Agency MANAGE-NATP series 2
1999
7 Amarchand D and B Vardharajan An Introduction to Marketing Vikas Pub-
lishing House Private Ltd New Delhi 1980
8 Anne Margaret Thomson 1993 Promoting Private Sector Involvement in
Agricultural Marketing in Africa (Fao Agricultural Services Bulletin)
9 Bailey Norwood F and Jayson Lusk 2007 Agricultural Marketing and Price
Analysis
10 Barker J W 1990 Agricultural Marketing (Oxford science publications)
11 Berend Wierenga Aad van Tilburg Klaus Guumlnter Grunert and Jan-Benedict
EM Steenkamp 1997 Agricultural Marketing and Consumer Behavior in a
Changing World
12 Bill Malcolm Jack Makeham and Vic Wright 2006 The Farming Game
Agricultural Management and Marketing
13 Brian How R 1995 Marketing Fresh Fruits and Vegetables (An AVI Book)
14 Brunk M E and L B Darrah Marketing of Agricultural Products The
Ronald Press Company New York 1955
15 Campbell K O 1973 Agricultural Marketing and Prices Cheshire
Publishing Melbourne Australia
16 Carter S 1998 Global Agricultural Marketing Management (Marketing amp
Agribusiness Texts Series (Series 09005676 No 3)
127
17 Chakraborty and Krian Sankar 2009 Rural Markets and Agricultural
Marketing
18 Chandra Shekara P 2001 Private Extension in India Myths Realities
Apprehensions and Approaches
19 Chandrashekara P 2001 Private Extension Indian Experiences
20 Common Principles for Watershed Development 1999
21 Crawford I M 1997 Agricultural and Food Marketing Management
(Marketing and Agribusiness Texts 2)
22 Dennis Chiwele Pumulo Muyatwa-Sipula and Henrietta Kalinda (Paperback -
Jan 1998) Private Sector Response to Agricultural Marketing Liberalisation in
Zambia A Case Study of Eastern Province Maize Markets (Research Report
Nordiska Afrikainstitutet)
23 Desai G R and Arora S K 1999 Trainers Training manual for Participatory
Management on Watershed
24 Desmond ORourke A 1994 The World Apple Market (Fpp Agricultural
Commodity Economics Distribution amp Marketing)
25 Dieter Elz 1987 Agricultural Marketing Strategy and Pricing Policy (World
Bank Symposium)
26 Dixit R S 2006 Agricultural Marketing in India
27 Erdener Kaynak 1986 World Food Marketing Systems
28 Erdener Kaynak and Matthew Meulenberg 1995 Food and Agribusiness
Marketing in Europe
29 Euan Fleming and Hugh Coulter 1992 Agricultural Export Marketing South
Pacific The Future Role of Marketing Authorities (Pacific Policy Papers)
30 Farris P 1983 Future Frontiers in Agricultural Marketing Research
31 Fertilizer and product Guide 1997
32 Foxall G R1982 Co-Operative Marketing in European Agriculture
33 Geoffrey S Shepherd and Gene A Futnell 1982 Marketing Farm Products
Economic Analysis
34 George Angell 1986 Agricultural Options Trading Puts and Calls in the New
Grain and Livestock Futures Market
35 Giriappa S 2000 Institutions and agricultural marketing in a semi-commercial
system
128
36 Gupta A P Marketing of Agricultural Produce in India Vora and Co
Publishers Pvt Limited Mumbai 1975
37 Hughes D R HM Martin and MVan Nieuwkerk 1993 A Comparative
Study of Agricultural Marketing in the Netherlands and the United Kingdom
(Food Industry Perspectives Discussion Paper)
38 Inderjit Singh Lyn Squire and James Kirchner 1985 Agricultural Pricing and
Marketing Policies in an African Context A Framework for Analysis (World
Bank Staff Working Paper) (No 743)
39 Indian Society of Agricultural Marketing Vistas in Agricultural Marketing
1997
40 Jagdish Prasad Encyclopedia of Agricultural Marketing Vol I to VIII 2000
Mittal Publications Delhi-110035
41 Narain Dharam Distribution of the Marketed Surplus of Agricultural Produce
by Size-Level of Holdings in India 1950-51 Asia Publishing House New
Delhi
42 Nayyar H and P Ramaswamy Globalization amp Agricultural Marketing
Rawat Publications Jaipur 1995
43 Neelamegham S Marketing Management and the Indian Economy Vikas
Publishing House Pvt Ltd New Delhi 1978
44 Padberg D I C Ritson and L M Albisu 1997 Agro-Food Marketing
45 Polopolus LC and Jesus Alvarez 1991 Marketing Sugar and other
Sweeteners (Developments in Agricultural Economics)
46 Prabhakar Rao Marketing Efficiency in Agricultural Production Himalaya
Publishing House Mumbai 1985
47 Procurement guidelines under National Agricultural Technology Project
MANAGE-NATP series 4 2000
48 Raghavendran T 2001 Disbursement Procedure for World Funded Projects
(A Guide to Project Implementing Agencies) by MANAGE-NATP series 5
49 Rajagopal Development of Agricultural Marketing in India Print well Jaipur
1996
50 Ralph M Chite 2007 HTML Agricultural issues in the 109th Congress An
article from Congressional Research Service (CRS) Reports and Issue Briefs
129
51 Ramesh Chand and V P S Arora (Ed) Agricultural Input and Output
Market Reforms in India Advance Publishing Concept New Delhi-11 0064
2000
52 Ramesh Chand Agricultural Development Price Policy and Marketed Surplus
in India (Study of Green Revolution Region) Concept Publishing Company
New Delhi-11 0059 1991
53 Rao NGP Perumal N Ghosal SL 1997 Training for Agriculture
Development
54 Sarveshwara Rao and G Parthasarthy Regulated Markets and Public Policy
Book links Corporation Hyderabad
55 Secondo Tarditi Kenneth J Thomson Pierpaolo Pierani and Elisabetta Croci-
Angelini 1989 Agricultural Trade Liberalization and the European
Community
56 Seetharaman S P Agricultural Input Marketing Oxford and IBH Publishing
Co New Delhi
57 Singh J P and Kareem M A 2001 Economic Evaluation of Participatory
Adaptive Research Project
58 Singh J P 2000 Economic Evaluation of Manchal Watershed
59 Singh J P 2000 Socio Economic Dynamics and Development Strategy for
Participatory Adaptive Research Project (PAR)
60 Singh J P 2002 Evaluation of Participatory Adaptive Research Project K
H Vedini 2001 Agriculture Marketing Interventions amp Innovations
61 Singh Rajkumar Agricultural Price Policy in India Print well Publishers
Jaipur
62 Singh J P Chandrasekhar P Kumar TDS and Lakshmi Murthy
2000 Israelrsquos Agriculture (Achievement through innovation and
Technology)
63 Singhal A K 2009 Agricultural Marketing in India by publisher Anmol
Publications pages 246
64 Singhal AK 1989 Agricultural marketing in India
65 Singhal A K Agricultural Marketing in India Anmol Publications New
Delhi 1989
66 Southworth Herman Some Studies on Fresh Fruits and Vegetable Marketing
in Asia Agricultural Development Council Bangkok Thailand 1974
130
67 Subba Rao K Agricultural Marketing and Credit ICSSR New Delhi 1985
68 Tyagi D S Managing Indias Food Economy-Problems and Alternatives
Sage Publications India Pvt Ltd New Delhi 1990
69 Vedini K H 2000 Management Issues in Rainfed Agriculture in India
70 Venkateswarulu J 1999 Technical Manual on Watershed Management
(Series (II) Resource(III)Arable Cropping Systems (IV) Non-Arable
Cropping Systems (V) Non-farming Systems amp Watershed in Retrospect
Conservation)
71 Vijay Gaatha 2002 Agripreneurs Documents 24 success stories of
agripreneurs with 40 different types of projects
72 Vijender Agricultural Marketing in India The Mandi System
JOURNALSMAGAZINES
1 Indian Journal of Agricultural Economics - Quarterly The Indian Society of
Agricultural Economics 46-48 Esplanade Mansions MG Road Fort
Mumbai-400001
2 Agricultural Situation in India - Monthly Directorate of Economics and
Statistics Ministry of Agriculture Government of India New Delhi
3 Indian Agriculture in Brief - Annual Directorate of Economics and Statistics
Ministry of Agriculture Government of India New Delhi
4 Yojana - Monthly Ministry of Information and Broadcasting Government of
India New Delhi
5 Economic Survey - Annual Ministry of Finance Government of India New
Delhi
131
APPENDIX-I QUESTIONNAIRE
QUESTIONNAIRE FOR FARMERS
1) Name of the Farmerhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Name of the village and district helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3) Age (in years)
a) Below [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
4) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P G and others [ ]
5) Sources of income
a) Agriculture [ ] b) Business [ ]
c) Employment [ ] d) Others [ ]
6) Annual gross income (In Rs)
a) Agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Non agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
7) Type of family
a) Nuclear family [ ] b) Joint family [ ]
c) Individual (single) [ ]
8) Number of family members
a) lt 4 [ ] b) 4 ndash 8 [ ]
c) 8 ndash 12 [ ] d) 12 and above [ ]
9) Total agricultural land holding (In Acres)
a) Below 5 Acres [ ] b) 5 ndash 10 Acres [ ]
c) 11 ndash 15 Acres [ ] d) Above 16 Acres [ ]
10) Crops grown in land with quantity per annum
Qty (in Quintals)
a) Red gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Green gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) Black gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) Jowar helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
e) Maize helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
f) Bajra helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
132
g) Bengal gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
h) Sugarcane helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
i) Others helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
11) Sale of agricultural produces
a) Open market [ ] b) APMC [ ]
c) Confirmation Agriculture [ ] d) Others [ ]
12) Preference of sale of agricultural produce
a) Local market [ ] b) Taluka market [ ]
c) District market [ ] d) Other state [ ]
13) How you carry agricultural produce to APMC
a) Bullock cart [ ] b) Tractor and trucks [ ]
c) Hired vehicle [ ] d) Own vehicle [ ]
14) Market charges of the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
15) Carrying cost paid in the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
16) Facilities provided by the APMC
Yes No
a) Water [ ] [ ]
b) Toilet [ ] [ ]
c) Canteen [ ] [ ]
d) Communication [ ] [ ]
e) Shopping property [ ] [ ]
f) Marketing information [ ] [ ]
g) Other facilities (if any) [ ] [ ]
17) Sources for dissemination of marketing information
a) News paper [ ]
b) Radio and Television [ ]
c) Dept of the government [ ]
d) Post and Telephone [ ]
e) Price bulletins [ ]
f) Personal contact [ ]
133
18) Rank the defects in regulated markets
a) No advance money [ ]
b) Difficulty of storage [ ]
c) Lack of transport facility [ ]
d) Lack of gradation facility [ ]
19) Rank the facilities to improve market efficiency
a) More number of commodities [ ]
b) Increases in facilities [ ]
c) More role of government [ ]
d) More representation from farmers [ ]
e) Reduction in market fees [ ]
20) Weather APMC provides adequate transport services
a) Yes [ ] b) No [ ]
21) Weather APMC provides adequate storage facilities
a) Yes [ ] b) No [ ]
22) Does APMC has cold storage facilities at warehouse
a) Yes [ ] b) No [ ]
23) What is the monthly storage cost of your produce at APMC
Rs helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
24) Whether APMC helps you for processing of your produce
a) Yes [ ] b) No [ ]
25) Do you satisfied with processing services provided by processors
a) Yes [ ] b) No [ ]
26) Processing fees paid to processors
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
27) Whether grading facilities are available at the APMC
a) Yes [ ] b) No [ ]
28) Do you satisfied with grading services provided by graders
a) Yes [ ] b) No [ ]
29) Are the graders trustworthy
a) Trustworthy [ ] b) Not trustworthy [ ]
30) Whether APMC provides efficient weighment of produce
a) Yes [ ] b) No [ ]
134
31) Do you satisfied with cost charged for weighment of produce
a) Yes [ ] b) No [ ]
32) Whether electronic weighing balancesmachine have been installed in
markets
a) Yes [ ] b) No [ ]
33) Causes of the defects in weighing
a) Absence of licensed weighman [ ]
b) Under weighing [ ]
c) Favouring for buyer [ ]
d) Faulty weights [ ]
e) Faculty weight machines [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
34) Grading of produce helps in the ways
a) Easy marketing [ ]
b) Reduction of cost [ ]
c) Higher prices [ ]
d) Encourage competition [ ]
e) Easy to get finance [ ]
35) Whether APMC provides market information on time to time
a) Yes [ ] b) No [ ]
36) If lsquoNorsquo what are the defects in market information
a) Ignore retail prices [ ]
b) Delay in news [ ]
c) Wide range of prices [ ]
d) Incomplete information [ ]
e) Illiteracy [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
37) Processing of produce helps to you in the ways
a) Add the value [ ]
b) Preservation for longer period [ ]
c) Less cost of production [ ]
d) Wide extent of the market [ ]
e) Use of surplus food [ ]
135
38) Do you insure your agricultural produce at APMC
a) Yes [ ] b) No [ ]
39) Whether you satisfied with the insurance facilities at the APMC
a) Yes [ ] b) No [ ]
40) Whether bank credit faculties available at the APMC
a) Yes [ ] b) No [ ]
41) Are you satisfied with present banking facilities
a) Yes [ ] b) No [ ]
42) What are the other sources of credit facilities other than bank credit
a) Whole sellers [ ] b) Retail seller [ ]
c) Commission agents [ ] d) Others (specify)helliphelliphelliphelliphellip
43) Ranking the factors determining the finance requirements
a) Nature of crop [ ] b) Terms of payment [ ]
c) Economic condition [ ] d) Fluctuations of prices [ ]
e) Volume of crop [ ]
44) Interest paid on bank credit
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
45) Are you obtaining services form the commission agents at APMC
a) Yes [ ] b) No [ ]
46) Are you satisfied with services provided by licensed commission agents
a) Yes [ ] b) No [ ]
47) If lsquoNorsquo what are the defects with commission agents
a) Favourable to buyer [ ]
b) High commission [ ]
c) Misguide [ ]
d) Lack of knowledge [ ]
e) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
48) Commission paid to commission agents
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
49) Do you have given any complaint against agent to the APMC about more
commission
a) Yes [ ] b) No [ ]
136
50) Whether sufficient number of Hamals are available at the APMC
a) Yes [ ] b) No [ ]
51) The cost of cooli to Hamals
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
52) Are you satisfied with hamals services
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
53) Do you have given any complaint against hamals to APMC for high cooli
a) Yes [ ] b) No [ ]
54) Cooperation of officials of the APMC
a) Fully cooperated [ ] b) Partly cooperated [ ]
c) Not cooperated [ ] d) Neither cooperatenor not [ ]
55) What are the defects you found with APMC officials
a) Non-cooperative [ ] b) Favourable to buyer [ ]
c) Laziness [ ] d) Expect money [ ]
e) Improper market data [ ] f) Others (Specify) helliphelliphellip
56) Do you have given ay complaint to higher officer against defaulting
APMC officer
a) Yes [ ] b) No [ ]
57) Do you have experienced following malpractices at the APMC
a) Inadequate grading [ ]
b) Inadequate packing [ ]
c) Unfavourable weighment [ ]
d) Excess samples [ ]
e) Inadequate supervision [ ]
f) Excess market charges [ ]
g) More favourable to buyer [ ]
h) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
58) Do you have any disputes with buyer
a) Yes [ ] b) No [ ]
59) What are the main causes for disputes in APMC
a) Price of produce [ ]
137
b) Quality of produce [ ]
c) Weighment [ ]
d) Timing of payment [ ]
e) Grading of produce [ ]
f) Warehousing [ ]
g) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
60) Which is the best way for settling of market disputes
a) Secretary level [ ] b) Dispute committee [ ]
c) Arbitration [ ] d) Court [ ]
61) Whether market committee officers supervises the services
a) Yes [ ] b) No [ ]
62) Do you find that APMC helped you in getting better prices for your
produce
a) Yes [ ] b) No [ ]
63) Your opinion about quality of service at APMC
a) Very good [ ] b) Good [ ]
c) Bad [ ] d) Very bad [ ]
e) Either good or bad [ ]
64) What is your opinion about customary deduction
a) As per bye laws [ ]
b) More than systems [ ]
65) Give your suggestions for making improvement in quality of services at the APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
138
APPENDIX-II QUESTIONNAIRE FOR RESPONDENTS
A) Personal Information
1) Name of respondents helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Age of respondents in years
a) Below ndash 20 [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
3) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P and G and others [ ]
4) Religion
a) Hindu [ ] b) Muslim [ ]
c) Christian [ ] d) Others (Specify) helliphelliphelliphelliphelliphellip
5) Nature of participant in APMC
a) Commission agents[ ] b) Hamals [ ]
c) Trader [ ] d) Grader [ ]
e) Processor [ ] f) Broker [ ]
g) Others (Specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6) How long you are in market yard
a) Below 10 years [ ] b) 11 ndash 20 [ ]
c) 21 to 30 [ ] d) 30 and above [ ]
7) Factors motivated for choosing this profession
a) Heredity [ ] b) More profitable [ ]
c) Uncertain induced [ ] d) Unemployment [ ]
e) Other specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
8) Are you satisfied with present marketing practices at APMC
a) Yes [ ] b) No [ ]
9) If lsquoNorsquo give the reasons for unsatisfaction
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
10) Are you satisfied with farmerrsquos activeness in APMC
a) Yes [ ] b) No [ ]
139
11) If lsquoNorsquo suggest to make them more active in market yard
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
12) Are you getting following facilities at the APMC yard
a) Water [ ]
b) Canteen [ ]
c) Communication [ ]
d) Marketing information [ ]
e) Transport [ ]
f) Health and sanitation [ ]
g) Banking and finance [ ]
h) Other (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13) Do you satisfied the above facilities at the APMC yard
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
14) Are you satisfied with quality of marketing of services at the APMC
Services Fully
satisfied
Partly
satisfied
Not
satisfied
No
response
a) Assembling
b) Processing
c) Grading
d) Storing
e) Weighment
f) Banking and finance
g) Rest house
h) Insurance
15) What suggestions do you want for efficient operations of APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
140
APPENDIX-III
PHOTOGRAPHS
ENTRY GATE OF APMC
ROAD FACILITY INSIDE APMC
141
WEIGHING GROUNDNUTS IN APMC
PROCESSING OF GROUNDNUTS
142
FILLED COTTON BAGS
WEIGHING TUR IN APMC
143
STORING GROUNDNUTS OUTSIDE
PROCESSING GRADING AND WEIGHING BAJRA
144
FILLING OF SUNFLOWER IN BAGS
LOADING OF COTTON BY LABOURS
- Table-317
- lsquotrsquo - Test Values
- Table-327
- Pearson Correlations
-
iv
ACKNOWLEDGEMENT
With great sense of gratitude I extend my special thanks to the UGC SWRO
Bangalore for funding me to undertake the Minor Research Project
I extend my sincere thanks to all the staff of Government First Grade College
Shorapur for their kind cooperation
I am very much grateful to DrSantosh Singh Associate Professor
Government First Grade College Sedam for his help and cooperation during the
course of my research
I would also like to thanks to Micro Computers Gulbarga for their excellent
job of compiling this Minor Research Project in time
SANGAPPA RAMPURE
v
CONTENTS
Sl No Chapter Page
No
1 INTRODUCTION AND RESEARCH DESIGN 01
2 FUNCTIONS AND TRADE PRACTICES ON APMCs 11
3 CUSTOMER PERCEPTION ABOUT MARKETING MANAGEMENT OF APMC IN GULBARGA DIVISION
42
4 PERFORMANCE EVALUATION OF APMCs 89
5 FINDINGS SUGGESTIONS AND CONCLUSION 122
6 BIBLIOGRAPHY 126
7 APPENDICES 131
1
CHAPTER-I INTRODUCTION AND RESEARCH DESIGN
11 INTRODUCTION
India is such a vast country which derives fifty percent of its national income
from agriculture The marketing methods in agricultural produce different from
country to country state to state and also within state This gives considerable scope
for the study of marketing of agricultural produce in the various states of the country
Agricultural marketing practices need to be uniform in the interest of developing
wider markets for better prices For this reason only many states have passed acts
regulating the marketing of agricultural produce in the state to reduce them to a
common practice and to avoid the exploitation of the primary producers and also to
give better prices for his produce
Organized marketing of agricultural commodities has been promoted in the
country through a network of regulated markets Most of the State governments and
Union Territories have enacted legislations (APMC Act) to provide for regulation of
agricultural produce markets While by the end of 1950 there were 286 regulated
markets in the country today the number stands at 7921 (3132014) Besides the
country has 29191 rural periodical markets about 15 per cent of which function
under the ambit of regulation The advent of regulated markets has helped in
mitigating the market handicaps of producerssellers at the wholesale assembling
level But the rural periodic markets in general and the tribal markets in particular
remained out of its developmental ambit
The central government has advised states and union territories to amend their
respective APMC laws in order to avail assistance for developing and strengthening
agricultural marketing infrastructure In the present scenario with the changing
picture in world trade system there has been growing demand for de-regulating the
agricultural markets and establishment of private markets some initiatives have
already been taken in this direction The central government has proposed
amendments in state Agricultural Produce Marketing (Regulation) Act The same is
expected to take place in the near future The said amendments have been proposed
2
with the aim of helping the farmers and hence market committees are obliged to
implement these amendments The Karnataka State Agricultural Marketing Board was
established on 1st September 1972 as per section 100 of the Karnataka Agricultural
Produce Marketing (Regulation) Act 1966 and Rules 1968 The Board acts as a
liaison agency between the market committees and the government of Karnataka for
all-round development of agricultural marketing in the state
12 NEED FOR THE STUDY
The marketing services available in the regulated markets have been very
useful in overcoming various problems of sellers of farm produce like the middle
menrsquos malpractices distress and forced sales at village level under weighing and
other malpractices by the middlemen and also the village money lenders etc
Majority of the agricultural produce is being sold at the village itself by
farmers immediately after harvesting due to urgent financial requirements and lack of
transport facilities Besides a large number of small holders of agricultural land
Hence the quantity of produce is too small for brining it to urban market place for the
purpose of selling at better prices
Establishment of regulated markets in various urban centers has facilitated
marketing of surplus agricultural produce at fair and reasonable prices In evaluating
the government marketing intervention programmes a distinction has to be made
between (a) the nature and degree of marketing intervention to achieve a defined
policy objectives and (b) the most cost effective way of implementing the marketing
intervention scheme However the centers of regulated markets are inadequate in
relation to the number of villages and vast farm sector Hence there is scope for
increasing of number of APMCs and submarket yards in addition to improving the
functioning of existing APMCs to ensure better services and adequate infrastructural
facilities at the premises of these markets A majority of these regulated markets
suffers from certain deficiencies in their functioning
In view of this the present study is undertaken to analyze the extent to which
the inadequacy of marketing of services are encountered by the farmers and other
functionaries in the APMC at Gulbarga division as a whole The research confines
3
itself to the management of APMCs in Karnataka in general and Gulbarga Bidar
Raichur Koppal and Bellary district APMCs in particular The total APMCs consist
for the present study is five APMCs from each district of study area
13 REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related
areas of the subject to find out and to fill up the research gaps Literature on
agricultural marketing can generally be found in a number of books that are available
on agricultural economics rural marketing and regulated markets Only very few
studies were undertaken on APMC and its performance in both agricultural marketing
and development The important studies relating to the present investigation are
referred below
Gopal Rao (1974) has undertaken the study on APMCs and has analyzed their
working in detail The author has confined his study to the four districts of Bombay
Karnataka region through a survey of the markets in the region
Ravirsquos (1975) work analyses the marketing problems of coconut and copra in
Tipatur and Arasikere regulated markets of Karnataka In this area coconut marketing
is dominated by village sales (66) followed by sales through commission agents
(16) and through wholesalers (about 11) and the rest directly by the farmers
(about 7)
Bhogappa (1982) has undertaken the study on ldquoMarketing of agricultural
produce in Gulbarga division of Karnatakardquo which covers only the APMCs of
Gulbarga Revenue Division He has made a special study of the effects of draught and
draught prone areas He has analyzed the special problems of the markets in ldquoAyacutrdquo
areas
Ramaswamy (1984) has submitted the thesis on ldquoA Critical Study of the
Working of Regulated Markets in Tamil Nadu with special reference to Coimbatore
and Periyar districtsrdquo This was the first attempt to assess the applicability of the Act
in Tamil Nadu which has thrown a light on cropping pattern
4
Rayudu (1985) highlighted the five aspects of cardamom marketing designed
by Cardomon Board The Board collects data on global requirements position of
supply conducting market survey for planning implementing and evaluation The
findings in this study could be useful in suitable applications for the finer aspects in
the marketing of similar products
Biradar (1989) observed that there was no incentive scheme for farmers It is
therefore necessary to start the incentive programmes like providing higher prices for
their commodities agricultural inputs at concessional rates and charging lower market
make regulated markets more attractive to the farmers These suggestions have a good
deal of subsidy components on the part of the Government
Selvamurugan and Mohan Sundaram (1990) in their study on the Coimbatore
district concluded that the crossandra in Coimbatore district concluded that the
corrssandra farmers share had been reduced from 3256 percent to 2423 percent
during the lean season Though the street vendors margin had also been reduced from
2328 to 1460 percent the share of commission agents and wholesalers had increased
to large extent ie from 4416 to 6107 per cent
Reddy (1991) conducted a study on marketing channels and marketing
margins of maize in Andhra Pradesh The study revealed that the producers share was
significantly high (8664 to 8687) in the case of Producer to Retailer to Consumer
channel as compared to corresponding share of producer (6314 to 7067) in case of
second channel ie Producer to Wholesaler to Retailer to Consumer
Nagraj and Chandrakant (1992) conducted a study on market performance of
perishables In the study the major marketing channel for vegetables was as below
Producer to Commission agent to Retailer to Consumer
The study could be of much relevance for researches in similar areas of agricultural
marketing
Biswas and Karpate (1994) observed the importance of Maharashtra State
Tribal Development Corporation (MSTDC) in marketing of minor forest produce
The tribal of the area were assured of basic minimum price for their produce notified
5
by the collector of the district The payments in normal course were made
immediately and saved them from exploitation by the middlemen
Mundinamani and Naik (1994) concluded that the per marketing cost of potato
was Rs 2074 as compared to Rs 2261 for brinjal Rs 2325 for onion Rs 2147 for
tomato Rs 5692 for dry chilly Rs 2975 for cotton and Rs 1936 for groundnut
The factors for differences in marketing cost of such agricultural produce need to be
probed by further studies
Atibudhi and Prusty (1995) have studied the marketing margins of Niger in
Rayagada district of Orissa The study concluded that the presence of co-operative
societies in marketing channel reduces the marketing margins and increases the
producers share in consumers rupee Marketing costs were the lowest in the co-
operative channel But marketing costs for storage procurement and transport were
higher for the same
Pawar (1996) has conducted a study on marketing surplus and price spread of
groundnut in Marathwada region of Maharashtra which is the most important
groundnut growing zone where 49 percent of the land is used to grow groundnut The
study concluded that distress sale of ground nut was found in small farmers but
medium and large farmers kept their surplus for future sale to get maximum price
Krishnaih (1998) has conducted a study to identify the marketing channels of
cotton and to analyze the price spread in these channels where he has suggested 7
different channels on distribution of cotton His effort is quite appreciable and it offers
for further research work on the topic However he found that while marketing of
cotton (kapas) majority of the farmers chose the channel in which the role of
commission agent was prominent
Paty (2000) applied the techniques of marketing information system the
agricultural marketing He has explained the concept with flow diagram of the
Integrated Agricultural Marketing Information System which is quite useful for its
practical applications
6
Basavaraj et al (2001) have made it very clear in their article that Karnataka
ranks fifth among the oil seed producing states in the country with an area of
1200135 hectares and a production of 945501 tones during 1994-95 Groundnut
sunflower safflower sesamum and castor were the major oil seeds produced in the
state They have made good policy implications in their study
Jayarathnam (2002) in her study on farmers market (Uzhavar Sandhai) in
Tamil Nadu pointed out the problems in cultivation transportation marketing and
pricing of vegetables Even she has given strengths weaknesses opportunities and
threats of vegetable marketing in Uzhavar Sandais of Tamil Nadu
Von Oppen and Gabadambi (2002) in their research paper have observed
market access impact on agricultural productivity lessons from thirteen chapters in
which they have concluded by stating market access and infrastructure are powerful
tools to commercialize agriculture in developing countries They increase aggregate
productivity initially via specialization and at a later stage via intensification
Sherman Roger (2007) undertook a study on market regulation gives readers
the economic intuition to analyze the history of antitrust and regulation diagnose
current corporate strategy and evaluate possible policy recommendations Roger
Sherman grounds modern examples in historical context and develops thought
provoking discussions to motivate readers from many different backgrounds
Introduction to market regulation competition as a market regulator problems for
competition as regulator
14 STATEMENT OF THE PROBLEM
The farming is largely dependent on the efficient marketing of the products
So the governments have to be very particular and watch all the market operations to
remain self-sufficient in food and to produce the goods for export to other countries
In the process of planning though the agriculture was given high priority for its
development but much attention was not given for the improvement of marketing
But in various states the agricultural marketing boards were established with the
objective to remove all the problems of markets and to regulate the markets for
increasing the efficiency in marketing It is found from various previous studies that
7
the regulated markets donrsquot have adequate and scientific grading facilities resulting in
substantial loss to the farmers excess charging of deductions in the form of
weighment commission etc are still prevailing at present in the regulated markets by
the commission agents or traders while making the payments to the farmers Hence
there is a need to undertake a study of the working of regulated markets in relation to
the responses of producer seller and other market functionaries regarding various
aspects of management of regulated markets The present research work attempted to
examine how the organized markets are working and to assess their role in
facilitating an orderly marketing of agricultural produce in the selected APMCs in
Gulbarga division
On the top of it the Gulbarga division is highly backward with all the
indicators of the backwardness which leaves considerable scope for exploitation by
the money lenders-cum-merchants These contrasts in the division call for different
approaches to marketing management and hence the study reveals interesting results
valuable for policy decisions This study of the division of Gulbarga is of immense
benefit for the economic strategy in the marketing of agricultural produce The study
is also aimed at pointing out various malpractices prevailing in the marketing
management lack of infrastructure storage facilities credit availability and effective
central markets this has resulted lack of innovations in agricultural production and
operations Many studies have been carried out to assess the impact of various
malpractices prevailing in marketing management on production of agricultural
produce However no study has been made to assess the role played by the APMCs in
the agricultural marketing in Gulbarga division highlighting whether these have
succeeded in achieving its objective if not what were the causes and what corrective
measures would have helped it in over coming the problems The present study is a
contribution in this direction
15 OBJECTIVES OF THE STUDY
The following are the objectives set for the study
1) To study the role of APMCs in filling the gaps and deficiencies regarding
agricultural marketing in Karnataka
2) To understand the amenities and facilities at the APMCs and to find out
inadequacies prevalent in APMCs in Gulbarga division
8
3) To know the trade practices in the area under consideration and the extent of
benefits to sellers through organized markets
4) To analyze the farmers responses towards regulated markets as well as market
participants
5) To critically examine the over all performance of APMCs and to identify the
area of improvement in the efficiency and also to offer suggestions to develop
an effective marketing system in Gulbarga division
16 RESEARCH METHODOLOGY
The study is mainly based on both primary data and secondary data The study
covers one broad division of the Karnataka state a survey method is adopted ie
through the pre-tested interview schedules addressed to the sample size of farmers and
market functionaries An unscheduled interview is also conducted to the regional
officials of KSAMB project officer and agricultural departments as well as APMCs
officials
Separate schedules were drawn tested and addressed to market committees
agricultural producers and market functionaries The questionnaires administered to
farmers were 250 in total at the rate of approximately 20 from each district market
All the farmers were representative producers for each market categorized on the
basis of the land holding and also marketable surplus brought to the market for sale
The questionnaire administered to the market participants were 150 in total
covering 20 market functionaries from each district in total sample size market
functionaries includes traders (wholesaler and retailer) commission agents exporters
importers processors and hamalies etc
17 SAMPLE DESIGN
A stratified random sampling method was adopted to drawn the final sample
The Gulbarga division consist of Bidar Gulbarga Raichur Koppal and Bellary
district from each district approximately 50 farmers were selected along with this 30
market functionaries from each district were selected
9
18 DATA ANALYSIS
The data collected from both primary and secondary was processed and
reduced to simple tables in order to present the matter clearly The suitable financial
statement analysis techniques were used to draw the correct conclusion Ratio
analysis which is most powerful and universally used technique for the analysis of
financial performance of APMCs in Gulbarga division
Analysis of variance technique is employed to test whether there is any
statistical significance in sales in different markets Apart from this averages and
percentages are used Graphs maps chart and diagrammatic representation of data
was suitably employed to highlight the significance of the data
19 PERIOD OF THE STUDY
The present study covers the period of five years commencing from 2009-10
to 2013-14 The performance of various items such as sales amenities infrastructure
and facilities of APMCs in Gulbarga division was studies for five years
Due to the wide operational activities of APMCs for agricultural marketing the
study period limited to five years to analyze its role in Karnataka with reference to
Gulbarga division
110 LIMITATIONS OF THE STUDY
The study is not completely free from limitations
1) The study is restricted only Gulbarga Division
2) Only five years period is taken for the purpose of the study because of time
constraints
3) The study is depending on the primary data also some of the respondents give
the poor response however every care has been taken to ensure that
authenticity of the data gathered
4) Some of the markets and the sub markets are so small and irresponsible that no
data is available nor any records of arrivals and disposals The records
maintained at the submarkets in the division are probably not available and
non reliable
10
111 CHAPTERISATION OF THE RESEARCH WORK
The whole research study has been presented in seven chapters
The First chapter deals with the introduction need of the study review of
some of important previous literatures statement of the problem
objectives of the study research methodology employed period of the
study limitations of the study techniques used for data analysis as well as
the chaptarisation of the study
The Second chapter deals with the various functions of the APMCs their
activities And also contains in brief about the trade practices preventing at
present in Gulbarga division as well as the data collected from the market
participants through questionnaire were analyzed to know the level of
satisfaction towards the preventing trade practices in selected APMCs in
Gulbarga division
Chapter Third deals with the opinion collected from the farmers towards
the marketing of their produce as well as their attitude towards regulated
market
Chapter Fourth deals with the financial performance and position during
five years of study period
The Fifth chapter deals with the findings suggestion and conclusions
11
CHAPTER-II FUNCTIONS AND TRADE PRACTICES ON APMCs
INTRODUCTION
The functionaries have their own set up They may be individuals partners or
cooperatives who may buy and sell on ready and future basis at a price determined by
forces of supply and demand Each functionary renders some services in the process
of marketing and also earns a varying margin of profit for himself This procedure
makes marketing rather complicated and inflates the price of the produce The nature
of some of the agricultural products eg their bulk form and perishability and their
seasonal availability further add to the complexity of agricultural marketing
Farmers and the various functionaries working in market face numerous
problems in orange fruit trading Farmers either sell their produce to the pre-harvest
contractor before harvest or they sell it in the nearby Agricultural Produce Market
Committee
When the farmers sell their produce in the Agricultural Produce Market
Committee they face following problems
High commission charges
High transportation and loading and unloading charges
No guarantee of remunerative prices
Delayed payment by commission agents
Functionaries working in the market also face various problems The pre-
harvest contractors who purchase the fruits from the farmers face the problems while
dealing with the farmers These problems arise mainly due to
Lapses on the part of farmers in the management of garden resulting in
deterioration of quality of fruits
Problems of natural calamities (theft of fruits losses due to rains pest etc)
Problems of storage facilities (lack of cold storage at local place)
Packing problem (costly packing material and non-availability of skilled
labour)
12
Transport problems (high transportation cost and non-availability of transport
means in time)
Grading problems (non-availability of suitable mechanical graders)
The success or failure of any market depends upon the functionaries existing
in the market Hence the role of functionaries is very important in smooth conduct of
market functions
It is compulsory according to KAPM (R) Act 1966 for every functionary
functioning in the APMCs to take a valid license from the respective APMC where it
is established by paying the necessary fees to the APMCs
Description of Market Functionaries
Following is the list of important functionaries existing in different APMCs of
the study area
i) Commission agents ii) Traders
iii) Retail traders iv) Weighmen
v) Hamals vi) Lady hamals
vii) Transporters viii) Cartmen
ix) Brokers x) Exporters
xi) Importers xii) Processors
xiii) Ginners xiv) Pressors
xv) Crushers xvi) Stockiest
xvii) Warehousemen
It is very essential to understand each of these functionaries and their activities
in detail
i) Commission Agents
Commission agent means a person who in the ordinary course of business
makes or offers to make a purchase or sale of agricultural produce on behalf of the
owner or seller or purchaser of such agricultural produce for commission
13
Commission agents are called so because of the commission they take from
the traders on the total sales as fixed by the government They facilitate farmers to
sell the agricultural produce brought into market yard for a good price at an
appropriate time However as per the bye-laws of market committees some person
cannot act both as commission agent and trader
Commission agents are the connecting link between the farmers and the
buyers When the crop grown by the farmer enters the market it goes to the
systematically channalised commission agents
The agents help the market committee to classify the goods brought by the
farmers and getting them weighed by the specified weighmenThese agents sell the
goods in the market on behalf of farmers and if a farmer does not want to sell his
goods for the time being at the prevailing market price the agents stores the goods in
their godowns and takes the responsibility of preserving the goods These agents not
only help the buyers to get a variety of goods at a place but also help the farmers to
sell their goods effortlessly In the form of market fee the buyer has to pay 1 percent
of the sale price of goods which is collected by the agents and credited to the market
committee Agents also have the responsibility of crediting the total amount of the
sales to the farmers The agents enjoy the right to extract the full amount of the
produce from the buyers
ii) Traders
Trader means the person who buys notified agricultural produce either for
himself or as agent of one or more persons for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of domestic
consumption
The trader will fix a reasonable price for the farmers produce in consolation
with the commission agents and with the consent of the farmers they purchase the
produce and the full amount will be paid to the commission agents Sometimes the
traders buy the produce for their own business purposes or on behalf of big companies
or businessmen Under these circumstances the goods will be sent to the respective
people
14
iii) Retail Traders
Retail trader mean the person who holds in stock at a time not exceeding
fifteen quintals of two or more kinds of agricultural produce together or not
exceeding six quintals of a single agricultural produce
The major function of a retail trader is to undertake retail salesRetail sale
means the sale of notified agricultural produce to a consumer for domestic
consumption not exceeding such quantity as the market committee may by bye laws
or standing orders determine
Usually they buy agricultural produce from the market yard and sell it in retail
market established in cities They assist the small buyers in procuring the agricultural
produce in small quantities for the purpose of domestic use
iv) Weighmen
As their name itself suggests the weighmen supervise the weighment of the
agricultural produce entering into the APMC yard
Certain produce such as cotton get weighted as soon as they enter the market
yard while the rest of the produce are weighted after sales Under these
circumstances it becomes the duty of the weighmen to safeguard the interest of the
farmers and to see that there is no discrepancy in weighing their goods Day to day
report of the produce weighed along with their weighment slip has to be filed with the
market committee by the weighmen It is the duty of these weighmen to visit the
various shops in the market yard and to supervise the weighing of different goods
v) Hamals
In order to facilitate the smooth functioning of the various activities of the
marketing committee hamals perform a very special duty As these people perform a
strenuous physical work they are called hamals
The work of the hamals start with the produce entering into the market yard
and ends with the produce going out of the yard When the farmer brings his produce
15
into the market yard either by a cart tractor or by lorry the hamals unload the
produce at the commission agents shops If the produce is cotton the hamals get it
weighted immediately after unloading and if the produce are other than cotton they
are stored in the godowns of the commission agents On the day of the tender or
auction the samples of the various produce are kept aside by the hamals who help the
traders to fix a reasonable price for the produce After the completion of business
deals except cotton all other produce are weighed and loaded into the vehicles of the
traders To perform these various tasks the hamals charge the amount fixed by the
APMC and get it from the concerned parties
vi) Lady Hamals
The female hamals who are working in APMCs by procuring a valid license
are known as lady hamals Along with the male hamals lady hamals are also found
in some of the APMCs like Hubli Gadag and Ranebennur They perform activities
like screening cleaning assisting males hamals in weighment keeping samples for
tender etc
vii) Transporters
In the preview of market committee the people who help to transport the
goods from one place to another are called transporters The tractors and truckers are
performing the duties of transporters Transporters are considered to be the important
market functionaries working in APMC yard These peoples are helping the farmers
to bring the agricultural produce from the place of production or agricultural yard to
market yard Existence of large number of transporters in the market yard helps for
the smooth functioning of marketing activities
viii) Cartmen
Along with the modern transportation facilities such as trucks and autos still
cartmens are playing greater role for the smooth functioning of market activities
Loading and unloading of bags from trucks to godown and vice-versa are performing
by cartmens When the agricultural produce need to transfer from one place to another
place within the market yard is done by cartmen
16
ix) Brokers
Brokers are the agents middle menrsquos in the market working as link between
farmers and buyers In many ways brokers are assisting the farmers by giving
valuable advises with regard to financing of selling to get better prices At the same
time they also help by supplying bulk agriculture produce to buyer
x) Exporters
Exporter means the person other than a producer who exports goods or cause
goods to be exported on onesrsquo own account or as agent of another person from the
market area outside such area for the purpose of selling processing manufacturing or
for any other purpose except for the purpose of onersquos own domestic consumption
The meaning of exporter shall not include a public carrier
At times when there is a bumper crop the poor farmer has to incur heavy
losses During such moments of crisis the exporters come into the scene and purchase
the crops from the farmers and export the same to some other markets for sale or
processing This brings about a balance between the demand and supply and saves the
farmers from the crisis
xi) Importers
Importer means the person other than a producer who imports goods or causes
goods to be imported one onersquos own account or as agent of another person from the
outside market area with in the such area for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of onersquos own domestic
consumption The definition of importer shall not include a public carrier
Function of Importers
As and when there is scarcity of any goods in the market and there is a lot of
demand for the same and considering the overall demand and supply of the market
the importers import the goods from different markets and sell them in the local
market
17
xii) Processors
The goods purchased at the market yard have to undergo different stages and
processes to finally reach the customer In order to facilitate this work different people
perform their duties These people are called processors viz gins press
decorticators oil mills flour mills and dal mills etc these different industries perform
their own essential duties
These industrialists perform their duties to see that the goods available in the
market in their crude form are made ready for use After having purchased the goods
they make them ready for use with the help of these processors On certain occasions
the processors themselves purchase the goods process them and self them when they
are ready for use These processors also should have the license from the market
committee
xiii) Ginners
They are the licensed functionaries who are performing ginning activities of
cotton by procuring valid license from APMCs The purchasers of cotton want to
convert their unginned cotton into ginned cotton In such case ginners will help them
to gin their cotton and separate pure cotton from cotton seeds
xiv) Pressors
Once the cotton is ginned it will come to pressors for conversion into cotton
bales where licensed pressors undertake the work of pressing In order to transport
the cotton from the place of growing and marketing to textile mills at different places
they have to be systematically packed in compact form of cotton bails The ginned
cotton will come to press of the pressors where they press and pack it properly into
cotton bales
xv) Crushers
There are certain licensed crushers who perform the activity of crushing oils
seeds into oil The traders who buy oil seeds from the market wants to convert it into
oil for further marketing and transportation In such case crushers situated near the
various market yards will help them to get pure oil by getting their seeds crushed and
screened at their crushing units
18
xvi) Stockiest
The people who purchase the produce at the market yard and store it for some
time and then sell it are called stockiest The stockiest also should have license
When all the farmers bring their produce to the market yard there will be glut in the
market supply and deficiency of the purchasers which cause the prices to come down
Under these circumstances to protect the farmer from the loss the stockiest purchases
the goods at the market yard and stock it in their storehouse to sell them when there is
a demand for that commodity
xvii) Warehousemen
The farmers are provided with the warehouses to store the produce which
come under the jurisdiction of the market committee ldquoWarehouserdquo means any
building structure or other protected enclosure which is or may be used for the
purpose of storing agricultural produce being goods on behalf of the depositors but
does not include cloak rooms attached to hotels railway stations the premises of
other public carriers and the life The person who supervises the warehouse activities
is called warehouseman
A farmer may not want to sell his produce because of the fall in the prices or
may want to store the goods for the purpose of sowing but does not have enough
space to store Having realized this problem of the farmers the government has
provided the warehouses in all the important market yards so that the farmers can
store their goods as long as they want to
The main task of the warehousemen is to stock the goods of the farmers
properly by sprinkling pesticides and protecting them from the insects and pests and
to return the goods of the farmers to them when they ask for it While performing this
task the warehousemen charges certain amount which is specified by the
government The farmer has to pay the amount towards stocking of his goods
In this way for the smooth sailing of the market committees activities each
and every market functionary has to perform his duties systemically
19
Market Functionaries in Selected Market An Overview
In all the selected APMC for the present research work ie 15 APMC there
were 26194 market functionaries operating in various markets of this division The
district wise and sample wise break up of the same is revealed in the tables from 21
to 25
As on the 2007-98 the total of local market participant in three APMC taken
for the present research is Gulbarga-5099 Bidar-2790 Koppal-5234 Raichur-7182
and Bellary-5889 There are 2046 lsquoArsquo class traders 1786 lsquoBrsquo class traders 1410 lsquoCrsquo
class traders 6920 lsquoDrsquo class traders 2794 commission agents 1496 exporters 1526
importers 676 stockiest 358 processors 172 crushers 203 ginners 28 pressers 29
warehousemen and 10775 hamals operating in the various markets in the Gulbarga
division The highest number of traders commission agents and other functionaries
are in Raichur district Bellary district followed by Gulbarga district being nearly 13
of the total number in the division
Market Functionaries at Selected APMC in Gulbarga District
Gulbarga APMC is a very big APMC in the Gulbarga district as compared
with other APMC in the same district Table 41 explains the total market
functionaries working in the not only Gulbarga APMC but also APMC Shorapur and
APMC Shahapur It is far as size is considered APMC Shahapur is a small APMC in
the Gulbarga district
The below Table 21 reveals that the total number of market functionaries
which was 3536 in 2009-10 in Gulbarga APMC has increased by around 124 percent
in 2013-14 It is evident from the same that coolies traders exporters importers and
processors holding maximum share in total market functionaries in the total
participants in the market
In case of the APMC Shorapur the total position of market participant was
gradually increased during first three years ie from 576 in 2009-10 to 845 in 2010-
11 and 910 in 2011-12 but it decreased to 845 in 2012-13 Again coolies and traders
were become the major portion in total market participants followed by commission
agents and retailers
20
Table-21
Licensed Market Participants in Selected APMCs of Gulbarga District
Sl No Market Participant
APMC Gulbarga APMC Shorapur APMC Shahapur
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 407 419 418 405 426 60 203 254 178 180 37 60 51 46 128
2 Commission agents 227 235 234 213 218 45 58 64 58 69 17 17 17 17 22
3 Exporters 419 424 424 411 416 10 32 11 03 03 28 35 32 25 130
4 Importers 405 411 409 391 396 08 24 09 02 02 25 30 38 25 126
5 Retailers 105 108 108 94 106 25 76 26 02 02 20 32 30 23 51
6 Processors 350 358 356 341 348 01 02 02 01 01 01 01 01 01 10
7 Ginners 14 15 15 15 16 01 02 01 01 01 01 01 01 01 05
8 Pressers 04 04 04 04 04 03 04 02 01 01 02 02 02 02 05
9 Stockiest 28 30 30 25 28 14 42 16 01 01 10 15 12 10 15
10 Weighmen 75 78 77 75 75 13 14 14 14 14 02 02 02 02 05
11 Crushers 15 18 18 18 18 03 05 04 01 01 02 02 02 02 06
12 Warehousemen 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01
13 Coolies 1444 1545 1540 1476 1485 378 373 496 571 560 75 92 99 99 110
14 Transporters 42 54 52 41 43 08 09 10 11 11 28 33 33 18 58
Total 3536 3700 3686 3510 3580 576 845 910 845 847 249 323 321 272 672 Source Annual reports of APMC for 2009-10 to 2013-14
21
The situation in APMC Shahapur was not much different when it compared to
APMC Gulbarga and APMC Shorapur A steady growth in total market participants
was registered in 2013-14 ie 672 with annual aggregate growth of 3398 percent
during the period under research Traders commission agents and coolies were
acquired majority position in total market functionaries
The below Table 22 depicts the total licensed market participants operating in
the selected APMCs of Bidar district A keen observation of year wise growth in the
various categories of market participants shows that coolies are steadily increased in
APMC Bidar from 68 in 2009-10 to 140 in 2013-14 In APMC Bhalki it was from 49
in 2009-10 to 56 and in APMC Aurad from 19 to 34 during the same period
It is interesting to note in Bidar APMC that stockiest were the dominant
portion in total market functionaries followed by experts commission agents and
importers The same situation was also found in other five APMCs ie Bhalki and
Aurad which are taken as sample from the Bidar district The percentage of stockiest
as on 2013-14 in total market participant was in Bidar APMC 1694 Bhalki APMC
ndash 1850 and 1859 in APMC Aurad
22
Table-22
Licensed Market Participants in Selected APMCs of Bidar District
Sl No
Market Participant
APMC Bidar APMC Bhalki APMC Aurad
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 171 182 195 186 196 151 153 146 156 160 110 115 128 138 142
2 Commission agents
145 151 180 175 190 136 139 145 150 156 102 112 115 128 132
3 Exporters 150 162 175 12 172 139 141 148 151 155 89 95 98 108 112
4 Importers 141 145 161 152 162 120 122 126 120 122 85 92 95 98 104
5 Retailers 10 15 28 25 35 05 06 09 10 10 03 04 06 08 08
6 Processors 03 04 04 03 04 02 02 02 02 02 01 01 01 01 01
7 Ginners 02 02 02 02 02 01 01 01 01 01 01 01 01 01 01
8 Pressers 01 01 01 01 01 01 01 01 02 01 01 01 01 01 01
9 Stockiest 193 198 220 205 215 150 151 154 155 161 106 112 115 119 123
10 Weighmen 33 42 55 52 65 23 24 26 28 30 13 15 21 28 30
11 Crushers 02 02 03 02 03 01 01 01 01 01 01 01 01 01 01
12 Warehousemen 01 01 01 01 02 01 01 01 01 01 01 01 01 01 01
13 Coolies 68 70 110 110 140 49 50 52 57 56 19 24 30 35 37
14 Transporters 10 05 15 24 23 08 08 09 13 13 04 06 08 12 17
Total 930 980 1150 1100 1210 787 800 821 846 870 536 580 621 687 710 Source Annual reports of APMC for 2009-10 to 2013-14
23
The overall growth in the market participants in Bidar district from the same
table reveals that the annual aggregate growth in APMC Bidar was highest ie 602
percent over the previous year it was 210 percent in APMC Bhalki and 649 percent
in APMC Aurad This clearly indicates that APMC Aurad is fast growing APMC in
terms of market functionaries followed by APMC Bidar and APMC Bhalki
A cursory look at the below Table 43 reveals that coolies traders
commission agents and importers are the major category of market functionaries
operating in the selected APMCs in the Koppal district during five years study period
ie 2009-10 to 2013-14 are presented in Table 23 The total number of market
functionaries in APMC Koppal which was 1054 in 2009-10 increased to 1186 in
2013-14 with percentage growth of 1188 during period under study In case of
APMC Gangavati it was 1034 percent negative and in APMC Kustagi positive
growth of 1752 percent during the same period The number of traders increased
marginally during the study period but the number of commission agents was
marginally decreased in all the three APMC selected from the Koppal district as
sample the other market functionaries increased in large numbers thus making the
proportion at commission agents to drop A broad view of licensed market
functionaries in selected APMC in Koppal depicts that APMC Gangavati was leading
APMC in terms of total market participants followed by APMC Koppal and APMC
Kustagi during five years plan period
24
Table-23
Licensed Market Participants in Selected APMCs of Koppal District
Sl No Market Participant
APMC Koppal APMC Gangavati APMC Kustagi
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 115 108 127 116 144 518 480 456 479 497 106 95 103 63 88
2 Commission agents 102 107 90 98 107 468 417 360 380 387 141 139 142 124 153
3 Exporters 95 123 92 115 105 511 480 455 489 495 90 77 80 46 65
4 Importers 123 146 120 122 103 598 479 455 488 496 17 12 13 08 64
5 Retailers 15 22 14 15 14 124 98 72 90 87 11 11 14 11 -
6 Processors 04 05 04 05 06 95 91 87 90 97 02 02 02 02 02
7 Ginners 02 02 02 02 02 - 02 - - - - - - - -
8 Pressers 02 02 02 02 02 - - - - - - - - - -
9 Stockiest 60 179 58 70 65 518 480 453 488 495 52 52 63 - -
10 Weighmen 10 15 09 08 10 03 03 04 04 03 06 06 06 06 06
11 Crushers 05 11 05 06 08 04 01 02 02 02 03 03 02 02 -
12 Warehousemen 02 04 02 03 04 02 02 02 02 02 01 01 01 01 01
13 Coolies 452 502 450 544 535 553 370 324 393 417 372 363 345 273 468
14 Transporters 067 118 59 33 36 26 13 16 15 14 04 05 03 02 02
15 Temporary purchasers - - - - - - - - - - 45 41 - - 150
Total 1054 1344 1034 1139 1186 3423 3001 2784 2995 3069 850 807 774 538 999 Source Annual reports of APMC for 2009-10 to 2013-14
25
Table 24 shows the year wise actual market participants who were licensed to
operate in the market yard during 2009-10 to 2013-14 in the selected APMC for the
sample in the Raichur district The total market functionaries in the APMC Raichur
decreased during the second year ie 2010-11 from 3622 to 3407 The average
decrease during the research period was 228 percent This was due to decrease in the
traders as well as coolies
When we observed market functionaries cooperation in the APMC Sindnoor
if was little different situation when it compared to APMC Raichur The total market
participants were shown an increasing trend except in the year 2010-11 it was
decreased from 2193 in 2009-10 to 1852 The overall growth in the market
functionaries during five years research period was 2782 percent which was a good
sign compared to APMC Raichur This growth indicates the growth of agriculture
marketing in APMC Sindnoor yard From the same table it can also be seen that
during 2010-11 and 2011-12 the total licensed market participants in APMC
Lingasugur were decreased but again during last two years of study period it shown
upward trend From these above analysis it can be said that APMC Sindnoor and
APMC Lingasugur were performed better during the plan period as compared to
APMC Raichur
26
Table-24
Licensed Market Participants in Selected APMCs of Raichur District
Sl No Market Participant
APMC Raichur APMC Sindnoor APMC Lingasuguar
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 409 422 431 403 415 312 260 304 305 304 104 99 88 106 115
2 Commission agents 216 214 222 224 218 317 265 280 288 279 83 92 81 101 100
3 Exporters 382 381 401 416 401 288 256 301 308 307 97 77 71 103 105
4 Importers 377 392 420 400 410 288 256 273 276 269 77 79 71 103 110
5 Retailers 22 23 206 - - NA NA NA NA NA 20 18 18 16 16
6 Processors 57 55 63 65 401 14 17 20 19 17 05 06 06 04 04
7 Ginners 10 16 16 15 16 01 01 01 01 - - - - - -
8 Pressers 05 05 04 03 04 01 01 01 01 01 05 04 04 04 04
9 Stockiest 388 377 398 409 19 289 257 300 308 293 75 94 81 106 110
10 Weighmen 89 89 87 87 87 16 16 16 15 14 14 14 14 14 14
11 Crushers 18 26 24 20 19 02 02 01 01 - - - - - -
12 Warehousemen 02 02 02 02 02 07 05 06 07 06 01 01 01 01 01
13 Coolies 1591 1357 1354 1434 1478 634 516 856 1286 1313 40 02 08 Nil 79
14 Transporters 46 48 44 42 50 24 - - - - 10 08 08 04 Nil
Total 3622 3407 3672 3520 3520 2193 1852 2359 2815 2803 531 494 451 562 859 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
27
Table 25 indicates the trends in the growth of total licensed market
functionaries who were operating during the period under consideration in the
selected APMCs in the Bellary district A comparative study of three APMCs selected
in Bellary district shown in the table 25 indicates that APMC Bellary has the largest
market functionary followed by APMC Hospet and APMC Siraguppa The total
market participants in APMC Bellary was ranged in between 3235 to 3865 in APMC
Hospet it was between 738 to 1481 and in APMC Siraguppa between 659 to 1007
The study of individual market participants in total market participants in selected
APMCs in Bellary district was also clearly shown that coolies were occupied the
major percentage in total followed by exporters importers and traders during the plan
period From the above analysis it was clear to conclude that district APMC ie
Bellary APMC was fully developing in terms of increase in market functionaries but
effort is needed from the officials of APMC in Hospet and Siraguppa to take some
measures to increase the market functionaries for the smooth running of marketing
activities in the yard
28
Table-25
Licensed Market Participants in Selected APMCs of Bellary District
Sl No Market Participant
APMC Bellary APMC Hospet APMC Siraguppa
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 435 441 538 462 485 121 123 136 150 141 115 120 146 176 198
2 Commission agents 352 368 448 382 371 75 77 84 103 88 10 10 12 09 08
3 Exporters 412 437 531 452 484 121 123 136 150 141 120 120 147 177 198
4 Importers 415 430 527 442 473 121 123 136 150 141 120 120 147 177 198
5 Retailers 102 115 101 120 95 76 74 93 95 95 - - - - -
6 Processors 45 45 47 45 55 26 24 24 23 24 42 43 46 45 59
7 Ginners 26 27 29 25 17 - - 27 24 24 - - - - -
8 Pressers 20 20 22 20 09 NA NA NA NA NA - - - - -
9 Stockiest 420 430 518 421 463 120 123 136 150 141 130 134 159 178 198
10 Weighmen 16 16 16 16 16 03 03 04 04 04 - - - - -
11 Crushers 26 26 26 25 18 04 02 02 02 02 - - - - -
12 Warehousemen 01 01 01 01 01 02 02 02 02 02 02 02 03 03 03
13 Coolies 920 902 1018 1213 910 262 173 373 429 668 120 128 237 145 145
14 Transporters 45 48 43 02 04 14 14 12 14 10 0 0 0 0 0
Total 3235 3306 3865 3626 3401 945 738 1165 1193 1481 659 677 897 910 1007 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
29
Sample size
The main refrain of this part of research study is the detailed analysis of the
primary data collected from the respondents ie market participants from APMC
about marketing services provided by the APMCs in five districts of Gulbarga
division Three APMCs from each district on the basis their performance ie best
performer average performer and low performer taken for the study The details of
the responses obtained on various services offered at APMCs yard and their level of
satisfaction towards it in the light of the statistical data obtained through the
questionnaires addressed to market participants such as commission agents hamals
traders graders etc are shown in the following part
The deep analysis of the responses from the sample size of market participants
has provided good insight into the dimensions of the marketing services and the
quality of those services rendered to the farmers seller of agriculture produce The
analysis has been done with necessary theoretical backs drops of each of the services
related to the marketing activities in the APMC yard
Table-26
District Wise Sample Size of Market Participants
Name of District Frequency Percentage Cumulative Percentage
Bidar 25 2000 2000
Gulbarga 25 2000 4000
Koppal 25 2000 6000
Raichur 25 2000 8000
Bellary 25 2000 10000
Total 125 10000 -
Source Field survey
Table 26 provides the information about the district wise frequency of sample
chosen for the present study The total sample for the study was 125 market
participants Gulbarga division constitutes of five districts from each districts 25
respondents were selected
30
Profile of Market Participant
An attempt has also been made in this part to study the socio-economic and
demographic factors of the market participants in order to examine the significant
relationship if any exist in between their profile and performance
Age Group
The age composition of the various market participants covered in the study
areas reveals some significant trends The details of the age of respondents of district
wise are provided in the following table
Table-27
Age Wise Classification of Market Participant
Sl No Name of APMC
Age of Respondent (in years) Total Below
20 21 ndash 40 41 ndash 60 60 and
above 1 Gulbarga - 18
(720) 6
(240) 01
(40) 25
(200) 2 Bidar - 18
(720) 6
(240) 01
(40) 25
(200) 3 Koppal - 18
(720) 5
(200) 01
(40) 25
(200) 4 Raichur - 18
(720) 6
(240) 02
(40) 25
(200) 5 Bellary - 18
(720) 7
(280) 01
(40) 25
(200) Total 000
(000) 90
(720) 29
(232) 06
(46) 125
(100) Source Field study Note Figures in brackets indicates percentage to total It is evident from the Table 27 that more than 34th of the total respondents
from market participants ie 90 belonged to the age group of 21- 40 years 232
of respondents belonged to the age group of 4160 years while smaller number of ie
of respondents which constitutes 48 of total respondents are in the age group of 61
years and above It is revealing to note that no number respondents Out of total 125
respondents belonged to below 20 years of age group
31
Status of Educational Qualification
The data collected through personal interview with regarding education
qualification of all market participants operating in the APMC in Gulbarga division
has provided Some useful details about their educational status which is considered
to be most significant factor in discharging their duties and responsibilities more
efficiently and effectively The detail of educational qualifications of sample group of
market participants is shown in below Table 28
Table-28
Qualification Wise Classification of Market Participant
Sl No Name of APMC
Educational Qualification Total Below
Primary Secondary Degree PG and
others
1 Gulbarga 01 (40)
11 (440)
03 (120)
10 (400)
25 (200)
2 Bidar 01 (40)
09 (360)
03 (120)
12 (480)
25 (200)
3 Koppal 01 (40)
10 (400)
03 (120)
11 (440)
25 (200)
4 Raichur 01 (40)
09 (360)
02 (80)
13 (520)
25 (200)
5 Bellary 02 (80)
11 (440)
04 (160)
08 (320)
25 (200)
Total 06 (48)
50 (400)
15 (120)
54 (432)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total It is learnt from the above Table 28 that 432 of respondents were post
graduates and other technical qualifications such ITI and other diploma qualifications
40 of the sample respondents were qualified upto higher secondary followed 12 of
respondents were graduates Only 6 were belonged to the primary category It is
however significant to note that higher secondary education and other technical
education qualification holders were majority in total sample size ie 40 to 432
as compared to degree holders ie only 12 of sample size
32
Religious Composition of Sample
Religion of respondents is more dominating factor in occupation for their
livelihood Researcher has also tried to accumulate the data about the religion of
respondents through interview schedule In the present study respondents religion was
broadly classified in 4 category ie Hindu Muslim Christian and others
Table-29
Religion Wise Classification of Marketing Participant
Sl No Name of APMC
Religion Total
Hindu Muslim Christian Others
1 Gulbarga 22 (880)
02 (80)
01 (40)
- 25 (200)
2 Bidar 22 (880)
03 (120)
- - 25 (200)
3 Koppal 21 (840)
04 (160)
- - 25 (200)
4 Raichur 21 (840)
04 (160)
- - 25 (200)
5 Bellary 23 (920)
01 (40)
01 (40)
- 25 (200)
Total 109 (872)
14 (172)
02 (060)
00 (000)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total
From the above Table 29 it is clear that majority ie 872 of total sample
size operating in study area of Gulbarga division belonged to Hindu religion followed
by Muslim religion ie 112 of sample group This is in conformity with the pre
dominantly Hindu dominant population composition of the area as compared to
Muslim religion If can be interpreted from the above that sample size comprised of
minor number ie 160 of respondents belonged to the Christian religion
33
NATURE OF PARTICIPANTS
The success or failure of any market depends upon the functionaries existing
in the market Hence the active participation of all types of functionaries is very
important in smooth conduct of market functions In order to facilitate for smooth
marketing of agriculture commodities each and every market is provided with
different market functionaries It is compulsory according to KAPM (R) Act 1966 for
every functionary functioning in the APMCs to take a valid licence from respective
APMC by paying necessary fees An analytical account of the market functionaries
operating in different selected markets are given in Table 210
Table-210
Nature of Participant
Sl No
Name of participant
Name of APMC Total
Gulbarga Bidar Koppal Raichur Bellary
1 Commission Agent
11
09
08
10
12
50 (400)
2 Hamalas 04
03
04 05 04 20 (160)
3 Trader 07 08 08 06 06 35 (2800)
4 Grader 01 01 01 01 01 5 (400)
5 Processor - 01 01 01 - 3 (240)
6 Broker 01 03 03 02 01 10 (80)
7 Others 01 - - - 01 02 (160)
Total 25 (200)
25 (200)
25 (200)
25 (200)
25 (200)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
A cursory look at the Table 210 reveals that commission agents traders and
hamals are the major market functionaries in the market Out of total 125 participants
34
respondents 40 percent were playing the role of commission agents 28 percent of
them were acting as traders and hamals constitute 16 percent The percentage of
broker grader and processor in selected sample size was 8 4 percent and 24
percent respectively The above figures shows whose role very important in market
place
Experience in Market Yard
Market participants experience in the market yard will helps to understand the
level of their satisfaction with regard to the economic benefit from the job and their
attitude towards it Satisfied market participant in APMC will strict to a single job for
a long period The details of their years of experience in market yard in the area
under study of sample size is given in the below table
Table-211
Years of Experience in Market Yard
Sl No Particulars
Experience in Market Yard
Below 10 11 ndash 20 21 ndash 30 30 and above Total
1 Gulbarga 02 18 03 02 25 (200)
2 Bidar 01 17 04 02 25 (200)
3 Koppal 01 21 03 - 25 (200)
4 Raichur 02 18 04 01 25 (200)
5 Bellary 02 22 01 01 25 (200)
Total 8 (64)
96 (768)
15 (120)
6 (48)
125 (10000)
Source Field survey Note Figures in brackets indicates percentage to total
Table 211 exhibits the experience of the respondents in the market yard of
125 market yard of 125 market participant respondents Out of total sample size
768 are laying in between 11-20 years of experience in the market yard 15
35
respondents which constitute 12 of sample group had an experience of 21-30 years
in the market yard Below 10 years and above 30 years of experience in market yard
of respondents were 64 and 48 of sample respondents Finally to conclude about
the market yard experience old market participant were high in number as compared
to the new market participants ie less than 10 years of experience in market yard
Motivational Factors ndash Sample Study
The word lsquomotivationrsquo comes from the Latin meaning ldquoTo moverdquo it generally
means an inner or outer drive to meet a need or a good This is the impelling force
which draws the human from his house and inspires her to start something on his own
The variables comprise of heredity more profitable uncertain induced
unemployment and others Accordingly by incorporating the above the researcher
has asked the respondents to rank the motives of their present profession Their
responses were presented in the following table
Table-212
Motivated Factors of Profession
Sl No Particulars
Motivated Factors Total
Heredity More Profitable
Uncertain Induced
Un Employment Others
1 Gulbarga 22 - 02 01 - 25 (200)
2 Bidar 16 03 06 - - 25 (200)
3 Koppal 18 03 03 01 - 25 (200)
4 Raichur 22 01 02 - - 25 (200)
5 Bellary 23 01 01 - - 25 (200)
Total 101 (808)
8 (64)
14 (112)
2 (16)
00 (00)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total It is evident from the Table 212 that heredity was the most dominant motive
with 8080 of sample size This group distinctively falls under ldquopushrdquo category of
profession who resorted to this profession because of same compulsions This
compulsion cited were death of Kartha to supplement meager income at home etc
36
This way followed by uncertain induced with a percentage of 1120 of
sample size The respondents quoted few reasons for choosing their profession such
as poverty no alternative jobs to do and lower education etc 64 of total
respondents opinioned that they were chosen this profession because of more
profitable
Satisfaction with Marketing Practices
In the process of marketing there are three dimensions these are time space
and form The marketing function is having a one or the combination of these three
dimensions While performing these functions the different functionaries are rewarded
for their services at every level The marketing cost the market margins and the
competition in the market is different to product to product Similarly the market
functions very from product to product for example the marketing of grains are
having different functions than that of the marketing of vegetables Respondentrsquos
satisfaction level towards these marketing practices are shown in below table
Table-213
Satisfaction of Marketing Practices
Sl No Particulars Level of Satisfaction
Total Satisfied Unsatisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 24 (960)
01 (40)
25 (200)
4 Raichur 24 (960)
01 (40)
25 (200)
5 Bellary 23 (920)
02 (80)
25 (200)
Total 118 (944)
7 (56)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
37
Table 213 shows the district wise market participant respondents level of
satisfaction towards marketing practices It could be seen from the above table that
more than 94 of respondents are of the opinion that the quality of marketing
practices practiced in the APMC yard is fully satisfied and rest of respondents ie 56
percent were fully expressed that the marketing practices are unsatisfied
The level of satisfaction in Gulbarga district APMC Koppal district APMC
and Raichur district APMC was above 96 but it was 9200 in Bidar and Bellary
From the above opinion and analysis of responses it can be concluded that few steps
are necessary to take by APMCs to make 100 satisfaction in for marketing
practices
Farmerrsquos Activeness
Market participants were interviewed with an intension to extract their level of
satisfaction in the farmerrsquos activeness in the APMC yard in selected units
Respondents are given two option regarding farmers active involvement in marketing
of their produce ie satisfied or unsatisfied The results of the investigation are
presented in Table 214
Table-214
Satisfaction with Farmers Activeness in APMC
Sl No Particulars Satisfaction with Farmers
Total Satisfied Unsatisfied
1 Bidar 13 (520)
12 (480)
25 (200)
2 Gulbarga 18 (720)
07 (280)
25 (200)
3 Koppal 10 (400)
15 (600)
25 (200)
4 Bellary 21 (840)
04 (160)
25 (200)
5 Raichur 15 (600)
10 (400)
25 (200)
Total 77 (616)
48 (384)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
38
Table 214 gives the respondents level of satisfaction with the farmerrsquos
activeness in marketing activities in APMC yard More than 61 of market
participant respondents fully satisfied with farmers activeness but 38 of them are
fully unsatisfied and suggested to participate actively in marketing activities Few
number of farmers physically visiting and actively involved during the sale of their
produce An awareness programme from APMC is very necessary to help farmers and
to motivate them to involve in marketing activities
Facilities at APMC
Basic infrastructure at APMC yard is very much essential for smooth
functioning of marketing activities The selected APMC for present study has
provided necessary facilities such as water canteen communication transport and
banking and finance etc to the market participants But all the participants
respondents are unable to get those facilities The percentage of functionary
respondents who have availed these facilities and those who have deprived of the
facilities are given in the Table 215
Table-215
Facilities at the APMC Yard
Sl No
Facilities at APMC
Name of District Total Gulbarga Bidar Koppal Raichur Bellary 1 Water 20
(1886) 19
(1792) 22
(2075) 23
(2169) 22
(2075) 106
(848) 2 Canteen 14
(2121) 13
(1969) 12
(1818) 11
(1667) 16
(2424) 66
(528) 3 Communication 24
(2264) 21
(1981) 20
(1886) 22
(2075) 19
(1792) 106
(848) 4 Market
information 22
(2075) 20
(1886) 19
(1792) 24
(2264) 21
(1981) 106
(848) 5 Transport - - - - - - 6 Health and
sanitation 11
(2291) 09
(1875) 08
(1667) 10
(2083) 10
(2083) 48
(384) 7 Banking and
Finance - - - - - -
8 Others - - - - - - Total 125
(1000) Source Field survey Note Figures in brackets indicates percentage to total
39
A glance over the above Table 215 reveals the various facilities provided at
APMC yard in selected sample size More than 84 of functionary respondents
opinioned positively about water facility 52 of them about canteen 38 about
health and sanitation etc It is to be noted here that no single APMC has provided
transportation facilities and banking and finance which is very vital in marketing
Satisfaction about Facilities
APMCs have provided several infrastructure facilities to market participants
These facilities provided by APMC to market functionaries helps them to provide
good services to farmers efficiently
Table-216
Level of Satisfaction about the Facilities
Sl No Name of the District
Level of Satisfaction Total
Fully Satisfied Not Satisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 23 (920)
02 (80)
25 (200)
4 Raichur 21 (840)
04 (160)
25 (200)
5 Bellary 21 (840)
04 (160)
25 (200)
Total 112 (896)
13 (104)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
It is observed from the Table 216 that a large number of market participants
(ie 896) were fully satisfied with the infrastructure facilities available inside the
market yard Nearly 104 percent expressed their dissatisfaction over the facilities
provided by APMCs Gulbarga APMC was considered to be better (9600) in
facilities as compared with other four districts selected for the present study Raichur
40
and Bellary districts APMCs had needed more important in terms of facility to satisfy
market functionaries Market participants are directed to fallow the specified
techniques These techniques are prescribed by the Indian standards institute The
techniques suggests to use proper ingredients in specified proportions The graded
processed goods bear ISI label indicating that it contained the graded and good quality
if the product The selected market participants were also asked about the quality of
marketing functions The analysis of Table 217 revel that more than 76 of
respondents had satisfied the quality of marketing function in five districts whereas
more than 20 of them not satisfied with quality of services in the market yard
41
Table-217
Level of Satisfaction with Quality of Marketing Services
Quality of Services
Gulbarga Bidar Koppal Racihur Bellary Total Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Assembling 19 06 19 6 21 4 19 06 19 06 125
(100) Processing 22 03 22 03 23 02 22 03 22 03 125
(100) Grading 15 10 16 09 14 11 15 10 15 10 125
(100) Storing - 25 - 25 - 25 - 25 - 25 125
(100) Weighment 12 14 10 13 11 12 14 14 13 15 125
(100) Banking and finance
04 21 03 22 02 23 04 21 04 21 125 (100)
Rest house 02 23 01 24 02 23 02 23 03 22 125 (100)
Insurance - 25 - 25 - 25 - 25 - 25 125 (100)
Source Field survey Note Figures in brackets indicates percentage to total
42
CHAPTER-III CUSTOMER PERCEPTION ABOUT MARKETING
MANAGEMENT OF APMC IN GULBARGA DIVISION
INTRODUCTION
In keeping with very little of the research the survey is conducted to
supplement the evaluation through the primary data These attempts bring out the
basic problems and difficulties if any in the implementation of the APMCs Act
through state agricultural marketing board Different types of schedules are used for
evaluating the working of the APMC act However the agricultural marketing is
clearing a midwife between agricultural production and agricultural marketing on the
one hand and the former beneficiaries on the other hand But the farmers might have
direct link what so ever with marketing agencies therefore a schedule for the farmers
which has been different from what we have used for market participants As such the
marketing participant of the agriculture market are the main pillars for
implementation of the schedule The questionnaire has been personally given to
farmers of the sample groups and the researcher had a detailed personal discussion
with the market participants with regard to working or agriculture marketing The
main focus of the study was evaluation of management of agricultural produce
marketing committees in Karnataka from the point of farmers therefore our survey
schedule covers the background of farmers and market functionaries such as age
education religion family background source of incomes land holdings of both
farmers and market participant were collected Some of these aspects have been
discussed in the following paragraphs
43
Table-31
District Wise Selection of Farmers Sample Size
Name of the District Frequency Percentage Cumulative
Percentage
Gulbarga 50 200 200
Bidar 47 188 388
Koppal 49 196 584
Raichur 52 208 792
Bellary 52 208 1000
Total 250 1000 -
Source Field survey
Table 35 provides the information about the district wise selection of member
farmers which have been chosen for the present study The total sample size for the
study was 250 farmers Raichur and Bellary district form 2080 percent each and
Gulbarga district form 2000 percent and Bidar and Koppal district 188 percent and
196 respectively The member of farmers selected for the purpose of was equally
distributed to all five districts with little change in percentage The reason for that is to
identify the district among the five districts where APMCs are working upto the
aspirants of farmers
44
Table-32
Age Wise Classification of Agriculturist
APMCs District
Age in Years Total
Below 20 20 ndash 40 41 ndash 60 61 and above
Bidar 01 22 21 03 47 (186)
Gulbarga 01 23 23 03 50 (200)
Koppal 01 23 22 03 49 (196)
Raichur 01 24 24 03 52 (208)
Bellary 02 24 24 02 52 (208)
Total 06 (240)
116 (4640)
114 (4560)
14 (56)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It could be found from the Table 32 that 4640 percent of farmer respondents
were aged between 20-40 years 45-60 percent in between 41-60 years and 5-6
percent above 61 years Only 240 percent of total sample size were aged below 20
years The above figures about the age of agriculturists cleared that young and middle
aged formers are more actively participated in the APMC yard when compared to old
age farmers
Educational Qualification of Farmers
The level of the education of the farmers is one of the most important factor
which governs many more factors such as deciding the cropping pattern crop
rotation use of different inputs in farming optimum time of cultural practices and
where to sell the agricultural produce The following table shows the educational
qualifications of the farmer respondents
45
Table-33
Education Wise Classification of Respondents
Name of the APMCs
Educational Qualification
Total Literate Illiterate
Primary Secondary Degree PG and Others
Gulbarga 25 (500)
15 (300)
4 (80)
02 (40)
4 (80)
50 (200)
Bidar 23 (4894)
15 (3191)
03 (638)
02 (425)
4 (852)
47 (188)
Koppal 25 (5102)
16 (3265)
03 (612)
- (00)
5 (1021)
49 (196)
Raichur 26 (500)
16 (3076)
03 (576)
03 (576)
4 (772)
52 (206)
Bellary 28 (5385)
16 (3076)
03 (576)
- (00)
5 (963)
52 (208)
Total 127 (5080)
78 (3120)
16 (640)
07 (280)
22 (880)
250 (100)
Source Field study
Note Figures in bracket indicates percentage to total
From the above Table 33 it could be seen that out of the total 250 farmers
respondents selected for the present study 5080 percent of them are having primary
level of education 3120 percent of them have studied upto secondary Only 640
percent of total sample size possessed graduate level education followed by 280
percent post graduate and other qualification The illiterate percentage of respondents
total sample size is 880
Sources of Incomes
There are different sources of incomes available to farmers such as agriculture
income business self employment and employment in other organizations
Agriculture income is considered as major source of income to them and other
sources of incomes are secondary importance The details of their sources of incomes
along with agriculture incomes is shown in the table below
46
Table-34
Sources of Income of Respondents
Sl No
Name of the Market
Source of Income Total
Agriculture Business Employment Others
1 Gulbarga 40 (800)
6 (120)
2 (40)
2 (40)
50 (200)
2 Bidar 38 (8085)
5 (1063)
2 (1425)
2 (427)
47 (188)
3 Koppal 39 (7959)
5 (1020)
2 (408)
3 (613)
49 (196)
4 Raichur 42 (8076)
6 (1154)
3 (576)
1 (194)
52 (208)
5 Bellary 42 (8076)
6 (1154)
2 (385)
2 (385)
52 (208)
Total 201 (8040)
28 (1120)
11 (440)
10 (40)
250 (1000)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 34 that 8040 of respondents were having
agriculture income and 1120 percent had business income followed by 440 percent
and 40 percent of respondents from employment and other sources respectively This
will clearly indicates the much dependency of farmer respondents on agriculture for
income to meet the cost of livelihood This fact was same in five districts selected for
the study
Annual Gross Income
The farmers are getting incomes not only from agriculture but also from the
other sources discussed in previous table The gross annual income of the farmers
itself indicates the standard of living and their life style As far as in other farmers are
concerned they fully depend on agriculture for their livelihood Due to uncertainty in
agricultural production their annual income is getting fluctuation which results suicide
of many farmers in Karnataka
47
One side no guaranteed regular income and the other side rise in prices of
consumable goods forced them for borrowing money from outside to meet cost of
living and agricultural expense The researcher collected information about annual
gross income of respondents and shown in below table
Table-35
Annual Gross Income of Respondents
Sl No Annual income (Rs) Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 50000 to 150000 8 (160)
8 (1702)
8 (1632)
9 (1731)
9 (1730)
42 (166)
2 150001 to 250000 18 (360)
17 (3617)
17 (3469)
19 (3654)
18 (3462)
89 (356)
3 250001 to 350000 14 (280)
13 (2766)
14 (2857)
15 (2885)
15 (2885)
71 (289)
4 350001 to 45000 5 (100)
5 (1063)
5 (1022)
5 (962)
6 (1154)
26 (104)
5 450001 and above 5 (100)
4 (852)
4 (1020)
4 (768)
5 (769)
22 (88)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 35 that 166 percent of the respondents
were having the income of Rs 50000 ndash 150000 per annum income category and
356 percent had an income between Rs 150001 to Rs 250000 The percentage of
respondents in the Rs 250001 to 350000 range was found to be 289 percent
whereas those with an income less than Rs 450000 but above Rs 350001
accounted for 104 percent of the respondents The respondents with an annual
income greater than Rs 450000 made up the remaining 88 percent of the total
sample size It is learnt from the study that the farmers were from different types of
age groups education qualification and income range
48
Type of Family
Type of the family also determines the income of farmers When the partition
of agriculture land take place it badly affects on the quantity of agriculture
production If agriculture activities are carried out in joint family leads bulk
production and minimization of agriculture cost The data regarding the type of family
was also collected through schedule of questionnaire prepared for the farmers is
shown in below table along with their percentage to total sample size
Table-36
Type of Family of Farmer Respondents
Sl No Particulars Type of Family
Total Nuclear Family Joint Family Individual
1 Gulbarga 36 (1988)
14 (2029)
- 50 (2000)
2 Bidar 34 (1878)
13 (1884)
- 47 (1880)
3 Koppal 35 (1933)
14 (2028)
- 49 (1960)
4 Raichur 37 (2044)
15 (2173)
- 52 (2080)
5 Bellary 39 (2157)
13 (1886)
- 52 (2080)
Total 181 (7240)
69 (2760)
- 250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table depicts the classification of respondents on the basis of type
of family ie nuclear family or joint family 7240 percent of sample size are
belonged to nuclear family and remaining 2760 percent are living still in joint family
This clearly indicated that majority of preferred not to stay with joint family but want
to be in nuclear family
49
Family Size
Family size means the number of family members staying together in a single
family The farmers were also asked about the number of members living together
which helps to know their tendency towards big family or small family Big family
with small agriculture land holding found to be different to manage economic needs
and vice versa Keeping this point in mind data was collected about the size of family
members and is shown in Table 37
Table-37
Family Size of Respondents
Sl No Name of the Market Family Members
Total Below 4 4 ndash 8 8 ndash 12 Above 12
1 Gulbarga 15 (2027)
27 (2000)
05 (2083)
03 (1764)
50 (2000)
2 Bidar 14 (1891)
25 (1851)
05 (2083)
03 (1764)
47 (1880)
3 Koppal 15 (2027)
24 (1777)
06 (2500)
04 (2353)
49 (1960)
4 Raichur 15 (2027)
31 (2296)
04 (1667)
02 (1176)
52 (2080)
5 Bellary 15 (2028)
28 (2076)
04 (1667)
05 (2943)
52 (2080)
Total 74 (2960)
135 (5400)
24 (960)
17 (680)
250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table presents the classification of the respondents on the basis of
the size of the family members The category is done family below four members 4
members to 8 farmers respondents which constitute 54 percent of the sample group
had members between 4-8 and 2960 percent of sample size had family members
below 4 followed by 960 percent and 680 percent had 8-12 members and above 12
members respectively
50
Agriculture Land Holdings
The annual gross income of the respondents largely depends on the agriculture
land holdings by the farmers an attempt has been made to collect the details of the
agriculture land holding by the farmer respondents The size of the land holdings and
socio economic conditions of the farmers play an important role in farming as well as
marketing activities The size of the land holdings by sample size selected for the
present study is shown in the below table
Table-38
Total Agriculture Land Holdings
Sl No
Name of the Market
Total Agriculture Land Holding Total Below 5
Acres 5 ndash 10 Acres
11 ndash 15 Acres
Above 16 Acres
1 Gulbarga 3 (60)
20 (400)
9 (180)
18 (360)
50 (2000)
2 Bidar 3 (638)
19 (4042)
9 (1915)
16 (3405)
47 (188)
3 Koppal 3 (0612)
20 (4082)
9 (1837)
17 (3569)
49 (1960)
4 Raichur 4 (769)
21 (4038)
10 (1923)
17 (327)
52 (2080)
5 Bellary 4 (769)
21 (4038)
9 (1730)
18 (3463)
52 (208)
Total 17 (68)
101 (404)
46 (184)
86 (3440)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above Table 38 revels that 404 percent of the total respondents are small
farmers (ie 5 acres or more but less than 10 acres) 3440 percent of sample groups
are large farmers ie 16 acres or more than 16 acres and only 68 percent of
respondents are having less than 5 acres of cultivating land (marginal farmers)
Major Crops Grown
Generally agriculture crops are grown on basis and depending on the agro
climatic conditions as well as the socio-economic conditions of the farmers The study
51
was conducted to know the major crops grown by the farmer respondents selected for
the present study
Table-39
Annual Crop Grown in Land
Crop Quantity in Quintals
Total 1-25 26-50 51-75 76-100 100 and
above
Red gram 10 50 22 06 10 98
Green gram 96 16 04 - - 116
Black gram 22 38 04 64 - 128
Jawar 99 36 04 02 - 141
Maize 11 33 19 - 02 65
Bajra 07 02 05 07 04 25
Bengal gram 09 35 12 - 36 92
Sugarcane 21 08 04 08 - 41
Others 06 08 12 06 - 32 Source Field study
The quantity of crop grown by the farmers annually is given in the above
Table 39 The data about the different crop grown by the sample size of farmers are
shown in quantity along with the percentage of each crop to total crop grown by the
sample farmers
The table reveals that 5640 percent of the farmers respondents cultivate jowar
followed by 4640 percent farmers ever growing green gram red gram (3920)
maize (26) Black gram (2560) percent Bengal gram (368) and sugarcane
(1640) other crops grown constitute 5120 to total which included onions
groundnuts pulses chillies wheat and paddy etc
It can be seen clearly from the same table that red gram jowar green gram
and black gram are cultivated by the farmer respondents partially for self consumption
purpose and partially for selling It could also be noted from the same those
commercial crops like sugarcane bajra maize chillies sunflower paddy and onions
52
find a major portion in the cropping pattern of the farmer respondents This clearly
indicates the higher degree of commercialization of agricultural production by the
farmers in the Gulbarga division
Preference of Sale of Agriculture Produce
Marketing today is becoming more complicated with the advancement of the
civilization The commodity to be marketed must be of value It shouldnrsquot be a free
gift of the nature easily available for mere picking The farmer wish to have the
maximum share in the price of the products and on other side he wish to purchase the
inputs at the minimum price As he is interested to maximize his profits on sale of his
agriculture produce he will always in search for the market place where he can get
good price An attempt has been made in schedule to acquire information about the
preference of sale of agriculture produce by the sample respondents is shown in the
Table 310 and 311
Sale of Agriculture Produces
Table-310
Sale of Agriculture Produces
Sl No
Name of Market
Sale of Agriculture Produces Total
Sample Open Market APMC Confirmation Other
1 Gulbarga 21 (200)
46 (200)
080 (200)
01 (2500)
50 (2000)
2 Bidar 20 (1905)
43 (1870)
078 (1950)
-- 47 (188)
3 Koppal 21 (200)
45 (1956)
078 (1950)
01 (2500)
49 (196)
4 Raichur 22 (2095)
48 (2086)
083 (2075)
01 (2500)
52 (208)
5 Bellary 21 (200)
48 (2088)
081 (2025)
01 (2500)
52 (208)
Total 105 (420)
230 (920)
04 (16)
04 (16)
250 (100)
Source Field survey Note Figure in bracket indicates percentage to total
53
After the development of regulated markets farmers preferred to sell their
agriculture produce in the APMC yard this was clear in the Table 310 The response
of sample size was collected about sale of the agriculture produce 92 percent of
sample size preferred to sold only in the APMC market as to overcome from the
problems and malpractices in the open markets and 42 percent in open market 16
percent of sample each in confirmation market and other type of sale
Table-311
Preference of Sale of Agriculture Produces by Respondents
Sl No
Name of the Market
Preference of Sale Total Sample Local
Market Taluks Market
District Market
Other State
1 Gulbarga 23 (200)
23 (2035)
25 (2016)
01 (250)
50 (200)
2 Bidar 22 (1913)
21 (1858)
23 (1855)
01 (2500)
47 (188)
3 Koppal 23 (200)
22 (1946)
24 (1935)
-- 49 (196)
4 Raichur 24 (2086)
24 (2124)
26 (2096)
01 (2500)
52 (208)
5 Bellary 23 (2001)
23 (2037)
26 (2098)
01 (2500)
52 (208)
Total 115 (460)
113 (452)
124 (496)
04 (160)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The above table gives the preference of sale of agriculture produce by the
farmer respondents Researcher has discussed with the respondents and mobilized the
data whether they prefer to sell their agricultural produce in local market taluka or
district market
Higher percentage of farmers ie 4960 is sold their agricultural produce in
the district to get better price compared to local market 46 percent of them opinioned
that they are selling their produce in local markets due to infrequency of
transportation facilities and to save the expenditure from bringing produce to district
or taluk market Some farmer respondents ie 4520 percent are sold near to taluka
market and rest of them (160 percent) through direct sale to whole seller retailer or
brokers etc
54
Mode of Transportation
Most of the agricultural goods are not consumed at the places of their
production They are required to be transported in the various stages of the market
Right from lifting of the produce from the threshing floor to its ultimate consumer the
transportation is required to the farmer to bring the agricultural produce to the market
The various means of transport are used These are bullock carts horse tanga tractor
trolleys trucks etc Transport being the most important function of marketing In case
of transport in the rural India though in modern days its importance is declining now
the power operated means like tractors trolley trucks are being used but still bullock
cart and horse tonga is an important means of transport in agricultural marketing The
study had been conducted to know the mode of transport means used by the farmer
respondents to transport the agricultural produce from farm place to market place
same is presented in the table
Table-312
Mode of Transportation of Agriculture Produce by Respondents
Sl No
Name of the Market
Mode of Transportation Total Sample Bullock
Cart Tractor and
Trucks Hired
Vehicles Own
Vehicle 1 Gulbarga 18
(200) 16
(1928) 21
(1963) 01
(2500) 50
(200) 2 Bidar 17
(188) 15
(1807) 20
(1869) - 47
(188) 3 Koppal 18
(200) 16
(1928) 21
(1963) 01
(2500) 49
(196) 4 Raichur 19
(2111) 17
(2048) 22
(2056) 1
(2500) 52
(208) 5 Bellary 18
(2009) 19
(2289) 23
(2149) 01
(2500) 52
(208) Total 90
(360) 83
(322) 107
(428) 04
(160) 250
(100) Source Field study Note Figures in bracket indicates percentage to total It can be seen from the above table that maximum ie more than 42 percent
of our farmer respondents were transported their agriculture produce through hired
vehicle followed by 360 percent of them through bullock cart owned by themselves
Modern means of transportation such as tractors and trucks are used by 322 percent
of sample size The above figure in table indicates that dependency on traditional
55
mode of transportation was decreasing when it compared to modern mean to
transportation
Market Charges
As per the bye laws approved by the chief marketing officer according to the
Act market charges are levied by the market committees In all selected market
committees for the present study in the Gulbarga division only three types of market
charges are levied to the farmers for sale of his agricultural produce in the regulated
markets One commission to commission agent which is fixed at 2 in all the markets
but other market charges different from one market to another market depending upon
the decisions to this effect by the respective market committees A part from
commission all APMCs in the sample size charges hamali and weighment charges In
some APMCs cleaning charges are also levied for cleaning the produce which is
included in other markets in hamali Thus no unauthorized deductions are made now
in any of the markets in the division Few secretaries of the APMCs during the field
study opined that the charges are quite nominal and the services rendered are more
valuable than the charges and they cannot be quantified
Table-313
Market Charges by APMC
Sl No Name of Market Market Charges Total Sample Very Low Very High Fair Average
1 Gulbarga 03 (60)
15 (300)
10 (200)
22 (440)
50 (200)
2 Bidar 02 (425)
15 (3191)
11 (2340)
19 (4044)
47 (188)
3 Koppal 02 (408)
14 (2857)
11 (2245)
22 (4490)
49 (196)
4 Raichur 03 (576)
16 (3076)
10 (1923)
23 (4423)
52 (208)
5 Bellary 02 (384)
17 (3269)
10 (1923)
23 (4424)
52 (208)
Total 12 (480)
77 (3080)
52 (2080)
109 (4360)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total From the above table it could be seen that 4360 percent of farmer respondents
are of the opinion that APMC is charging average ie neither too high nor too low
market charges on the sale of agricultural produce by the farmers On the other hand
56
3080 percent of farmer respondents dissatisfied with the market charges by the
APMC as they expressed that market charges are very high in APMC yard as
compared with open market Though 480 percent of them are fully satisfied and
2080 percent of respondents were reacted positively about the market charges
Carrying Costs
In case of agricultural marketing the transport cost is to be paid by the farmer
if he is selling the produce in the market but if he is selling to the village trader the
cost is to be paid by the trader Carrying cost is the most important cost in the process
of agricultural marketing The carrying cost is more important in context of place
utility of product The efficiency of the marketing is dependent on reducing the cost
of carrying Generally the cost of carrying of bullock cart is higher as compared to
the power operated means A survey was conducted to ascertain the opinion of the
farmer respondents towards the carrying cost paid by them in study area and the data
so collected was shown in the table below
Table-314
Carrying Cost Paid by Respondents
Sl No Name of Market Carrying Cost Total Sample Very Low Very High Fair Average
1 Gulbarga 06 (1200)
10 (2000)
03 (600)
31 (6200)
50 (200)
2 Bidar 05 (1063)
09 (1915)
03 (638)
30 (6384)
47 (188)
3 Koppal 06 (1224)
09 (1836)
02 (408)
32 (6532)
49 (196)
4 Raichur 07 (1346)
11 (2115)
03 (576)
31 (5963)
52 (208)
5 Bellary 06 (1153)
11 (2115)
04 (769)
31 (5963)
52 (208)
Total 30 (1186)
50 (2000)
15 (580)
155 (6234)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above table shows the carrying costs paid by the farmer respondents to
carry the goods from one place to another place with in the market yard One thing is
clear from the above table that more than 60 of respondents are satisfied with
carrying costs paid by them But minor percentage ie 20 percent of respondents not
57
satisfied saying transporters were charging heavy cost and 580 percent were
opinioned that transportation cost paid by them was neither high or nor low but it was
fair From these data analysis maximum number of farmers respondents were fully
and partially satisfied with carrying cost paid in the market yard
Facilities Provided at APMC
Table-315
Facility Provided at APMC
Particulars
Districts Grand Total
Gulbarga Bidar Koppal Raichur Bellary
Yes No Yes No Yes No Yes No Yes No Yes No Total
Water 26 23 27 24 26 24 27 23 27 23 133 (5320)
117 (4680)
250 (100)
Toilet 4 46 4 43 4 45 5 47 5 47 22 (5320)
228 (9120)
250 (100)
Canteen 13 37 12 35 12 37 13 39 12 39 62 (2480)
188 (7520)
250 (100)
Communication 27 23 26 23 27 22 26 24 27 25 135 (5400)
115 (4600)
250 (100)
Shopping property
21 29 20 27 20 29 20 32 20 32 101 (4040)
149 (5960)
250 (100)
Market information
28 22 27 20 27 22 29 23 29 23 140 (5600)
110 (4400)
250 (100)
Other facilities (if any)
29 21 28 19 28 21 30 22 30 22 145 (5800)
105 (4200)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Table-316
Coefficient Correlation between Varieties with in Facilities Provided by APMC
Sl No
Facilities by APMC
Facilities by APMC
Water Toilet Canteen Commu-nication
Shopping Property
Market Information
Other Facilities
1 Water 1000 235() 535() 984() 749() 428() (a)
2 Toilet 235() 1000 474() 230() 376() 218() (a)
3 Canteen 535() 474() 1000 526() 693() 505() (a)
4 Communication 984() 230() 526() 1000 749() 411() (a)
5 Shopping property
749() 376() 693() 749() 1000 705() (a)
6 Market information
428() 218() 505() 411() 705() 1000 (a)
7 Other facilities (if any)
(a) (a) (a) (a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
58
The coefficient correlation calculated between the variables (one variable with
the another variable) within the facilities provided by APMC is shown in the above
table Each variable is positively correlated with other variable
Table-317
lsquotrsquo - Test Values
One-Sample Statistics
Facilities by APMC N Mean Std Deviation
Std Error Mean
Water 250 14680 5000 3162E-02
Toilet 250 19120 2839 1795E-02
Canteen 246 17480 4351 2774E-02
Communication 250 14600 4994 3158E-02
Shopping Property 246 15894 4929 3143E-02
Marketing Information 250 14400 4974 3146E-02
Other Facilities 145 20000 0000(a) 00000 Note a) Cannot be computed because the standard deviation is 0
One-Sample Test
Facilities by APMC
Test Value = 0
t Df Sig
(2-tailed) Mean
Difference
95 Confidence Interval of the
Difference
Lower Upper
Water 46424 249 000 14680 14057 15303
Toilet 106500 249 000 19120 18766 19474
Canteen 63015 245 000 17480 16933 18026
Communication 46225 249 000 14600 13978 15222
Shopping Property 50573 245 000 15894 15275 16513
Marketing Information
45776 249 000 14400 13780 15020
59
Dissemination of Market Information
The dissemination of market information is most important so to make the best
use of this information There is no use of collection of data if it is not disseminated
well in time There are different sources for dissemination of market information such
as news papers radio and television department of government post and telephone
etc
The different news papers published in English Hindi and regional languages
are publishing the information about piracy of various commodities in different
markets There are periodical magazines and journals published weekly fortnightly or
monthly Radio and television is depicting the news about markets and broadcast and
televise the information about prices daily in its programmes The various department
of the government publish various reports concerned with agricultural marketing The
traders exchange the information about prices and arrivals in different markets
through telephone or through letters Price bulletins are published by directorate of
marketing and inspection providing information about prices and personal contact
between farmer to farmers farmer to trader etc is also a source of information The
following table provides the details of responses of source of market information
Table-318
Sources of Market Information
Sl No Particulars Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 Newspaper 32 (2013)
30 (1886)
31 (1950)
33 (2075)
33 (2015)
159 (636)
2 Radio and TV 42 (1981)
40 (1886)
42 (1981)
44 (2075)
44 (2075)
212 (848)
3 Dept of government 05 (2083)
05 (2083)
05 (2083)
05 (2083)
04 (1667)
24 (96)
4 Post and telephone - - - 01 (5000)
01 (5000)
02 (08)
5 Personal contact - - - 01 (5000)
01 (5000)
02 (08)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
60
A comparative analysis of sources of market information reveals that 848
percent of farmer respondents obtained the market information through radio and
television followed 6360 percent from newspapers and 372 from price bulletins
about the market 96 of total sample size depended on the various departments of
the governments such as directorate of economics and statistics of the central
government directorate of economics and statistics of the sates the agricultural
marketing departments of states etc about the prices in different regulated markets
Personal contact and post and telephone sources of market information is considered
to be a least sources from respondents
Table-319
Defects in Market Information
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Ignore retail prices 11 (2200)
10 (2553)
10 (2041)
11 (2115)
11 (2115)
53 (212)
2 Delay in news 13 (2600)
12 (2553)
13 (2653)
14 (2692)
14 (2692)
66 (2640)
3 Wide range of prices 05 (1000)
06 (1277)
06 (1224)
06 (1154)
07 (1346)
30 (1200)
4 Incomplete information
08 (1600)
08 (1702)
08 (1632)
09 (1730)
08 (1538)
41 (1640)
5 Illiteracy 07 (1400)
07 (1489)
07 (1428)
08 (1538)
08 (1538)
37 (148)
6 Others 06 (1200)
04 (851)
05 (1020)
04 (769)
04 (769)
23 (920)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
From the above table it can be seen that farmers are getting different
advantages for grading the products Their response is not homogenous ie 38
percent of the farmers are supported grading in easy marketing of the agriculture
produce 9680 percent are favoured grading in establishing to face competition and
61
128 percent of sample group opinioned about the grading that it will helps in
obtaining higher prices Only 6 of them favoured to reduction of cost of marketing
and 64 to easy to get finance facilities
Table-320
Ranking of Defects in APMC
Defects in APMC Ranking of Defects
Total First Second Third Fourth
No advance fund 32 (120)
216 (864)
02 (08)
02 (08)
250 (100)
Difficulty of storage 230 (920)
14 (560)
4 (160)
04 (160)
250 (100)
Lack of transportation 10 (40)
20 (80)
218 (872)
02 (080)
250 (100)
Lack of grading 10 (40)
179 (716)
02 (080)
59 (236)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The survey of APMC defects to rank on the basis of the respondents
preferences is shown in the above table 92 of the total respondents were opinioned
that the major defect in the APMC yard is difficulty of storage facilities followed by
no advance fund to farmers to meet the pre harvest expenses which constitute 864
of sample group
Table-321
Coefficient Correlation between Variables within Defects in Regulated Markets
Sl No
Defects in Regulated Markets
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 No Advance Money 1000 -354() 763()
2 Difficulty of Storage -354() 1000 044
3 Lack of Transport 763() 044 1000 Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
62
The details of the coefficient correlation calculated between all the variable of
defects in regulated markets are given in the above table Some variables within the
defects in regulated markets are found positive and negative correlated with each
other
Table-322
Correlation between Facilities Provided by APMC with Effects in Regulated
Markets
Sl No Facilities by APMC
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 Water - 269 () 058 - 218 ()
2 Toilet - 114 074 - 057
3 Canteen - 059 - 097 - 116
4 Communication - 276 () - 0062 - 222 ()
5 Shopping property - 173 () - 008 - 166 ()
6 Market information - 293 () - 141 () - 232 ()
7 Other facilities (if any)
(a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant The above table shows the computed result of correlation between the
facilities provided by the APMC to the farmers in the APMC with the defects
prevailing in the market yard The correlation was found significant between water
facilities communication facility shopping property and market information with no
advance money with a value -0269 -0276 -0173 and -0293 respectively The
correlation was insignificant between toilet and canteen facility in the market yard
with the no advance money
Difficulty of storage in the market yard is one of the most severe problem
found in the selected APMC yard The correlation between difficulty of storage with
the facilities by APMC were found insignificant in all cases except with market
information ie - 0141 But with lack of transport defect in the market yard the
63
correlation was insignificant between toilet and canteen with the transport defect with
a value of -0057 and -0116 respectively
Table-323
Facilities to Improve Market Efficiency
Facilities Ranking of Facilities
Total First Second Third Fourth Fifth
Trade more commodities 24 (96)
173 (692)
49 (196)
02 (08)
02 (08)
250 (100)
Increase in facilities 221 (884)
22 (880)
03 (12)
02 (08)
02 (08)
250 (100)
Role of government 34 (136)
29 (116)
175 (700)
06 (240)
06 (240)
250 (100)
Representative from farmers 04 (160)
20 (80)
10 (40)
212 (848)
04 (160)
250 (100)
Reduction in market fee 04 (16)
100 (400)
55 (220)
41 (1640)
50 (200)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-324
Coefficient Correlation between Variables of Facilities to
Improve Market Efficiency
Sl No
Facilities to Improve Market
Efficiency
Facilities to Improve Market Efficiency More
Commodities to Trade
Increase in
Facilities
More Role of Government
Representation From Framers
1 More commodities to trade
1000 419() -316() 355()
2 Increase in facilities
419() 1000 -619() 048
3 More Role of Government
-316() -619() 1000 336()
4 Representation from Framers
355() 048 336() 1000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
64
The above table depicts the values of the coefficient correlation calculated
between the variables of facilities suggested by the farmer to improve market
efficiency in the APMC yard
Table-325
Correlation between Facilities Provided with Facilities to Improve Market
Efficiency
Sl No
Facilities Provided by
APMC
Facilities to Improve Market Efficiency More
Commodity to Trade
Increase in
Facilities
More Role of Government
Representation from Farmers
1 Water -221() 098 -212() -167() 2 Toilet -100 -300() 220() 181() 3 Canteen -028 -076 -129() -089 4 Communication -218() 103 -222() -167() 5 Shopping
property 057 019 -249() 008
6 Market information
-073 116 -353() -176()
7 Other facilities (if any)
(a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The data collected about the opinion of the farmer respondents towards the
facilities provided by APMC is correlated with the suggestions obtained from them to
improve market efficiency further was given in the above table The result of
correlation is shown significant between water and communication facilities with
more commodities need to be allowed to trade under notified agriculture crops in the
APMC yard the correlation value is -0221 and -0218 respectively
A negative correlation between toilet and increase in market facilities ie -03
clearly indicates that APMC should concentrate on other facilities to improve market
efficiency other than toilet facility The government is required to play a vital role in
the APMC yard to improve the market efficiency by providing financial assistance to
APMC officials enabling them to provide essential facilities to the farmers and market
functionaries The correlation was negatively correlated between the facilities
provided by APMC listed in the above table except in toilet facility ie positive
correlation 0220 The highest negative correlation was computed between market
65
information with government role ie -0353 followed by -0249 (between shopping
property with government role) The farmersrsquo representation in the market committee
is also one of the important aspect in availing market facilities The correlation
between farmers representation with market facilities shows negative except in toilet
facility it is positive correlation ie 0181
Table-326
Correlation between Defects in Regulated Markets with Facilities to Improve
Market Efficiency
Sl No
Defects in Regulated Markets
Facilities to Improve Market Efficiency
More Commodities to
Trade
Increase in Facilities
Role of Government
Reduction in Market Fees
1 No advance money
611 () 039 343 () 439 ()
2 Difficulty of storage
-118 043 139 () 019
3 Lack of transport facility
500 () 059 445 () 895 ()
4 Lack of Gradation facility
-0115 0410 135 () 117
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The defects in the regulated markets were ranked by the farmers on their
preferences were also attempted to correlate with the additional facilities to be
provided to improve the market efficiency The correlation was positively correlated
between no advance money and lack of transport facility with the more commodities
to be permitted to trade in the market yard with value 0611 and 0500 respectively
No negative correlation was found between any of variables between defects in
regulated markets with the farmers opinions to improve market efficiency ie
increase in facilities Reduction in the market fees and charges is the another way for
the APMC officials to improve the market efficiency the correlation result is positive
with the market defects ie highest positive correlation with lack of transport facility
66
with reduction in market fees (0895) followed by no advance money with reduction
in market fees (0439) and (0117) between lack of gradation and reduction in market
fees Government role was also positively correlated to over come from all the defects
prevailing in the regulated market in the direction to improve market efficiency (the
correlation result was ranged between 0135 to 0445) Few defects were highly
correlated and others defects were less correlated with role of government variable
67
Table-327
Pearson Correlations
Correlations 18a 18b 18c 18d 19a 19b 19c 19d 19e
Pearson Correlation 18a 1000 -354() 763() 735() 611() 039 343() 439() 469() 18b -354() 1000 044 131 -118 043 139() 019 072 18c 763() 044 1000 911() 500() 059 445() 895() 898() 18d 735() 131 911() 1000 987() (a) 987() 948() 947() 19a 611() -118 500() 987() 1000 419() -316() 355() 1000() 19b 039 043 059 (a) 419() 1000 -619() 048 (a) 19c 343() 139() 445() 987() -316() -619() 1000 336() 1000() 19d 439() 019 895() 948() 355() 048 336() 1000 1000() 19e 469() 072 898() 947() 1000() (a) 1000() 1000() 1000
Sig (2-tailed) 18a 000 000 000 000 546 000 000 000 18b 000 510 276 065 508 033 781 611 18c 000 510 000 000 377 000 000 000 18d 000 276 000 000 000 000 000 19a 000 065 000 000 000 000 000 000 19b 546 508 377 000 000 491 19c 000 033 000 000 000 000 000 000 19d 000 781 000 000 000 491 000 000 19e 000 611 000 000 000 000 000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
68
Infrastructure Facilities in the APMC Yard
Efficient marketing infrastructure such as wholesale retail and assembly
markets and storage facilities is essential for costndasheffective marketing to minimize
post harvest losses and to reduce health risks Markets play an important role in rural
development income generation food security developing rural market linkages and
gender issues Planners need to be aware of how to design markets that meet a
communityrsquos social and economic needs and how to choose a suitable site for a new
market In many cases sites are chosen that are inappropriate and result in under use
or even no use of the infrastructure constructed It is also not sufficient just to build a
market attention needs to be paid to how that market will be managed operated and
maintained In most cases where market improvements were only aimed at
infrastructure upgrading and did not guarantee maintenance and management most
failed within a few years The details of the availability of infrastructure and farmers
opinion is shown in the following tables
69
Table-328
Infrastructure Facilities in the APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
Available Not Available Available Not
Available Available Not Available Available Not
Available Available Not Available Available Not
available Total
Transport 32 18 35 12 36 13 39 13 42 10 184 (7360)
66 (2640)
250 (100)
Cold storage 02 48 02 45 01 48 03 49 06 46 14 (560)
236 (9440)
250 (100)
Storage 35 15 38 09 36 13 37 15 40 12 186 (7440)
64 (2560)
250 (100)
Processing 30 20 35 12 38 11 41 11 38 14 182 (7280)
68 (2720)
250 (100)
Grading 28 22 40 07 41 08 40 12 37 15 186 (7440)
64 (2560)
250 (100)
Weighment 45 05 42 05 41 08 45 07 44 08 217 (8680)
33 (1320)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
70
Table-329
Satisfaction of Infrastructure Facilities in APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
S NS T S NS T S NS T S NS T S NS T S NS T
Transport 30 20 50 31 16 49 35 14 42 34 18 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Cold storage 01 49 50 - 47 47 - 49 49 01 51 52 02 50 52 04 (160)
246 (9840)
250 (100)
Storage 32 18 50 29 18 47 27 22 49 33 19 52 38 14 52 159 (6360)
91 (3640)
250 (100)
Processing 25 25 50 28 19 47 31 18 49 38 14 52 35 17 52 157 (6280)
93 (3720)
250 (100)
Grading 22 28 50 35 12 47 36 13 49 37 15 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Weighment 41 09 50 36 11 47 40 09 49 42 10 52 42 10 52 201 (8040)
49 (1960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total S ndash Satisfied NS ndash Not Satisfied T ndash Total
71
Defects in Weighing
As a rule when produce enters the market every agricultural produce has to
be weighed in the presence of the licensed weighmen and the receipt for weighment
has to be given to the farmer But even this system has certain defects as follows
Meager number of weighmen
Time of weighment of the produce
Old weighment equipments
The details of weighing practices in the APMC yard and the farmer
respondents opinion is shown in the following table
Table-330
Causes of Defects in Weighing
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Absence of licenced weigh man
20 19 19 18 19 95 (3800)
2 Under weighting 25 22 24 26 25 122 (4880)
3 Favouring for buyer
05 03 02 03 03 16 (640)
4 Faulty weights 00 02 01 02 02 07 280)
5 Faulty weight machineries
00 02 03 03 02 10 (400)
6 Others 00 00 00 00 01 01 (040)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Farmer respondents were identified under weighing was followed by the
absence of licensed weigh men and faulty weigh machines
72
Table-331
Importance of Grading of Produce
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Easy marketing 18 (3600)
17 (3617)
19 (3877)
20 (3846)
21 (4038)
95 (3800)
2 Reduction of cost 05 (1000)
03 (638)
02 (408)
02 (384)
03 (576)
15 (600)
3 Higher prices 05 (1000)
02 (425)
08 (1632)
10 (1923)
07 (1346)
32 (128)
4 Encourage competition
20 (4000)
18 (3829)
15 (3061)
19 (3653)
20 (3846)
92 (3680)
5 Easy to get finance 02 (400)
07 (1489)
05 (1020)
01 (192)
01 (192)
16 (640)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Processing of Produce
In agriculture marketing process was not an important function The most of
the commodities were selling in their original form But in modern age with change
in the tastes and preferences of the people and with the introduction of new
technology like refrigerator milling and banking of food grains the consumers
demand for processed goods has increased So in the modern system of marketing the
processing has become a most important function of the marketing
By processing we mean the change of the form of the product before its
consumption The processing of the agricultural products is having the advantages
such as add the value in the product converts into edible form preservation for longer
period use of surplus food less cost of production wide extent of the market and
generation of employment The study about the opinion of farmer respondents
towards the importance of processing in agriculture marketing was conducted and the
result is shown in the below Table 332
73
Table-332
Importance of Processing of Produce
Sl No
Particulars Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Add the value 45 (9000)
43 (9149)
45 (9184)
47 (9038)
47 (9038)
227 (9080)
2 Preservation for longer period
38 (7600)
36 (7660)
37 (7551)
40 (7692)
39 (7500)
190 (760)
3 Less cost of production
10 (1000)
09 (1915)
09 (1837)
10 (1923)
10 (1923)
48 (1920)
4 Wide extent of the marketing
03 (600)
03 (638)
03 (612)
03 (576)
04 (769)
16 (640)
5 Use of surplus food 01 (200)
- 01 (204)
01 (192)
01 (192)
04 (160)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The Table 332 reveals that the importance of processing of agriculture
producing in marketing more than 90 percent of farmer respondents are fully agreed
that processing definitely going to add the value to the agriculture producing in
marketing At the same time 76 percent of sample group are favoured that processing
helps in preservation of agriculture produce for longer period and 1920 percent and
640 percent of farmer respondents are opined that processing of agriculture produce
is important for less cost of production and wide extent of the marketing respectively
Only a minor percent ie 160 supported the processing helps to use of surplus food
From the above analysis it can be said that processing not only helps to farmers but
also to buyer of agriculture produce in many ways
74
Satisfaction towards Insurance Facilities
Table-333
Level of Satisfaction of Insurance Facilities
Sl No Satisfaction Level Agriculture Insurance
Total Insured Non-Insured
1 Satisfied 238 (9917)
02 (083)
240 (9600)
2 Unsatisfied 10 (10000)
- 10 (400)
Total 248 (9920)
02 (080)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Finance Requirements
According to Pyle ldquoMoney or credit is the lubricant that facilitates the
marketing machinerdquo there can be obstacles in performing various activities in case
there are inadequate funds to meet the expenditure involved in these functions The
biggest need of finance is to purchase the stock of agriculture produce and to meet the
agriculture expenses for farmers In the agricultural marketing the finance is having
more importance because of the nature of agricultural marketing The production is
seasonal and there is rush in the market at the time of harvest Huge amount is
required to farmers to meet fertilizers and pesticides expenses and to buyer for the
purchase of stock to get it stored and for its processing So the finance is required to
be arranged either by the owned fund or by taking loan Though the rate of interest
adds in the price of the commodity and the persons who is making this expenditure
realizes it as the reward of the function performed by him The researcher has
undertaken the study of finance facilities at the APMC yard other sources of credit
other than banking the factors affects the requirements of finance by agricultural
marketing firm as well as farmers and the interest paid on the credit the results of the
farmers opinion was collected and shown in the Table 334 335 336 and 337
75
Table-334
Satisfaction of Banking Facilities at APMC
Sl No Level of Satisfaction Availability of Banking Facilities
Total Available Not Available
1 Satisfied - 15 (602)
15 (600)
2 Unsatisfied 01 (10000)
234 (9398)
235 (9400)
Total 01 (040)
249 (9960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total The Table 334 depicts the farmerrsquos responses towards the availability of
banking facilities in the APMC yard and their satisfaction towards such services in the
market yard In all the APMCs of Gulbarga division which covers five districts only
6 of the respondents were satisfied and rest of 940 percent of farmers respondents
were unsatisfied for the non-availability of banking facilities in the yard
Table-335
Other Sources of Credit Facilities
Sl No Particulars Districts Total Gulbarga Bidar Koppal Raichur Bellary 1 Whole seller 09
(1800) 08
(1702) 08
(1632) 10
(1923) 10
(1923) 45
(1800) 2 Retail seller 05
(1000) 04
(851) 05
(1020) 05
(961) 04
(769) 23
(920) 3 Commission agents 32
(6400) 31
(6595) 32
(6531) 34
(6538) 33
(6346) 162
(6480) 4 Broker 03
(600) 03
(638) 03
(612) 03
(576) 03
(576) 15
(600) 5 Others 01
(200) 01
(212) 01
(204) 00
(000) 02
(385) 05
(200) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total The researcher has also attempted to collect the opinion from the farmers
about the availability of other sources of credit facilities to the buyer of agriculture
produce and to farmers The other sources of credit to farmers other than bank
includes wholesaler retailer commission agents and brokers Majority of farmer
76
respondents ie 6480 percent of sample size said that commission agents are most
easy source of credit followed by whole seller ie 18 percent and retailer seller ie
920 and brokers only 6 percent
Ranking the Factors of Finance Requirements
As the financial requirements in the agricultural marketing can play a big role
as stimulation of agricultural production and to promote the interest of agricultural
community There are two types of finance requirements one fixed capital which is
required for the building furniture office instruments etc to carry on the business of
agricultural market Second requirement variable capital this is required to purchase
of stocks to make the payment of transportation labourers bills and refreshments
etc The researcher during his field study has attempted to point out and tried to rank
the main factors for finance requirements The data so collected is shown in the Table
336
Table-336
Ranking the factors of finance requirements
Sl No
Finance Requirements
Ranking Finance Requirements Total
First Second Third Fourth Fifth
1 Nature of crop 123 (4920)
50 (2000)
35 (1400)
23 (920)
19 (760)
250 (100)
2 Terms of payments 84 (3360)
16 (640)
31 (1240)
105 (4200)
14 (560)
250 (100)
3 Economic conditions 09 (360)
132 (5280)
63 (2520)
25 (1000)
21 (840)
250 (100)
4 Fluctuations of prices 15 (600)
26 (1040)
104 (4160)
47 (1880)
58 (2320)
250 (100)
5 Volume of crop 19 (760)
26 (1040)
17 (680)
50 (2000)
138 (5520)
250 (100)
Total 250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
77
The above Table 336 shows that the ranking of finance requirements by the
farmer respondents Out of 250 sample respondents 123 farmers respondents ranked
first the nature of crop which determines the quantum of finance requirements
followed by 5280 percent towards economic conditions as ranked second and
fluctuation of prices ie 41 percent as third and terms of payment as fourth position
followed by volume of crop as fifth
Interest Paid on Bank Credit
Table-337
Interest Paid on Bank Credit
Sl No Particulars Interest Paid on Bank Credit
Total Very low Very high Average
1 Gulbarga 30 (6000)
12 (2400)
08 (1600)
50 (2000)
2 Bidar 27 (5745)
11 (2340)
07 (1915)
47 (1800)
3 Koppal 29 (5918)
12 (2449)
07 (1428)
49 (1920)
4 Raichur 32 (6154)
12 (2307)
08 (1538)
52 (2080)
5 Bellary 32 (6154)
13 (2500)
10 (1923)
52 (2080)
Total 150 (6000)
60 (2400)
40 (1600)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Services of Commission Agents
Commission agents are the main marketing functionaries operating in the
APMC yard among the other market participants They provide the necessary link in
the marketing of agricultural produce to the farmers They supply the necessary data
and useful assistance in the marketing of agricultural produce of the farmers They
help farmers in availing the services like assembling storing grading and finance etc
Hence the farmers are provided with channel of distribution by the APMC by
78
licensing these intermediaries and regulating their services The farmer respondents
were approached for obtaining their views about the quality of services covering
defects with commission agents commission paid to commission agents and their
satisfaction with commission agents The following Tables ie 338 339 and 340
gives the results of the survey data
During the field work by the researcher investigated to identify the defects
with commission agents from the farmers The data so collected are compiled and
shown in the Table 338 The major defect with the commission agent was they are
more favourable to the buyer which constitutes 68 percent of sample size 20 percent
of farmers respondents were pointed out the misguide by the commission agent to
farmers at the time of sale is the second major defects followed by high commission 8
percent lack of knowledge 320 and other defects constitutes 080 percent More than
70 percent of farmer respondents are taken the help of commission agents in selling
their agricultural produce out of that 5960 percent of farmers only satisfied with
services given by commission agents The 74 farmer respondents which constitutes
2960 percent of total sample group neither obtaining any form assistance in
marketing their produce and nor satisfied with services given by them
Table-338
Satisfaction towards Commission Agents
Sl No Level of Satisfaction Service from Commission Agents
Total Yes No
1 Satisfied 104 (5910)
45 (6081)
149 (5960)
2 Unsatisfied 72 (4090)
29 (3919)
101 (4040)
Total 176 (7040)
74 (2960)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
79
Table-339
Defects with Commission Agents
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Favoruable
to buyer 34
(6800) 32
(6808) 33
(6735) 35
(6730) 36
(6923) 170
(6800) 2 High
commission 04
(800) 04
(851) 04
(816) 05
(962) 03
(576) 20
(800) 3 Misguide 10
(1000) 09
(1915) 10
(2041) 10
(1923) 11
(2115) 50
(2000) 4 Lack of
knowledge 02
(400) 02
(425) 02
(408) 02
(385) 00
(000) 08
(320) 5 Others 00
(000) 00
(000) 00
(000) 01
(192) 01
(192) 02
(080) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
Table-340
Commission Paid to Agents
Sl No Particulars Commission Paid to Agents
Total Very Low Very High Average
1 Gulbarga 06 (1200)
18 (3600)
26 (5200)
50 (2000)
2 Bidar 08 (1702)
17 (3617)
22 (4680)
47 (1800)
3 Koppal 06 (1224)
17 (3469)
25 (5102)
49 (1920)
4 Raichur 06 (1153)
19 (3654)
27 (5192)
52 (2080)
5 Bellary 04 (769)
19 (3654)
30 (5769)
52 (2080)
Total 30 (1200)
90 (3600)
130 (5200)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
The responses of the farmers regarding the charges of the commission by the
commission agents clearly indicates that the commission agents charges excess
80
amount well above prescribed rate this can be found from the dissatisfaction of
farmers ie 36 percent of sample size Changing more than the prescribed by the act
by the commission agent is one of the marketing malpractices prevalent in the APMC
In general strict vigilance over such marketing malpractice is needed to safeguard the
interest of the farmers It is unfortunate to learn that a very small number of ie 12
percent of the sample group farmers have complained against the high commission
charged by the commission agents At the same time 52 percent ie more than one
half of the total sample size positively favoured towards the commission charges by
the commission agents saying that commission paid is average neither to high or too
low
Table-341
Cost of Cooli to Hamals
Sl No Particulars
Cooli to Hamals Total
Very High Very Low Average 1 Gulbarga 07
(200) 09
(1800) 40
(8000) 50
(2000) 2 Bidar 02
(425) 08
(1702) 37
(7872) 47
(1800) 3 Koppal 02
(408) 08
(1633) 39
(7959) 49
(1920) 4 Raichur 02
(385) 09
(1730) 41
(7885) 52
(2080) 5 Bellary 01
(192) 09
(1730) 42
(8076) 52
(2080) Total 08
(320) 43
(1720) 199
(7960) 250
(10000) Source Field survey Note Figures in bracket indicates percentage to total Table 341 depicts the cost of cooli paid to hamal in the market yard Hamals
are working in the APMC for loading and unloading of agriculture produce Farmer
respondents were satisfied with the cost of cooli to hamal it constitute 7960 percent
of total sample size only 320 percent of total told that hamals are charged high cooli
and 1720 percent of them totally satisfied with the charges paid to hamals Table 341
gives the level of satisfaction towards the services given by hamals Large number of
farmers are partly satisfied which constitute 6080 percent 376 percent fully satisfied
81
and 240 percent not at satisfied It is suggestible to the APMC to take measures to
control the hamals and their services to farmers
Level of Satisfaction with Hamals Services
Table-342
Level of Satisfaction with Hamals Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (3800)
30 (6000)
01 (200)
50 (2000)
2 Bidar 17 (3617)
29 (6170)
01 (213)
47 (1800)
3 Koppal 18 (3673)
28 (5714)
03 (612)
49 (1920)
4 Raichur 19 (3654)
32 (6153)
01 (192)
52 (2080)
5 Bellary 21 (4038)
33 (5962)
00 (000)
52 (2080)
Total 94 (376)
150 (6080)
06 (240)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Cooperation from APMC Officials
Along with the services from different market functionaries to farmers
cooperation from the APMC officials is also very important to farmers to boost their
psychological factors to bring their agricultural produce to APMC yard for sale A
good cooperation definitely creates belongingness in the minds of farmers The data
was collected through questionnaire about the level of satisfaction with the
cooperation from APMC officials and defects with them The information gathered is
shown in Table 343 and 344
82
Table-343
Level of Satisfaction with APMC Officials Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (2021)
08 (2105)
23 (1949)
50 (2000)
2 Bidar 17 (1809)
06 (1579)
24 (2033)
47 (1880)
3 Koppal 16 (2021)
05 (1315)
28 (2373)
49 (1960)
4 Raichur 20 (2127)
10 (2632)
22 (1864)
52 (2080)
5 Bellary 22 (2340)
09 (2368)
21 (1780)
52 (2080)
Total 94 (3760)
38 (1520)
118 (4720)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-344
Defects with APMC Officials
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Non-
cooperative 36
(200) 40
(2222) 40
(2222) 45
(250) 19
(1055) 180
(7200) 2 Favourable to
buyer 42
(1953) 43
(2000) 32
(1488) 41
(1907) 57
(2651) 215
(8600) 3 Laziness 18
(200) 17
(1888) 15
(1667) 20
(2222) 20
(2222) 90
(3600) 4 Expect money 08
(200) 06
(150) 05
(1250) 09
(2250) 12
(300) 40
(1600) 5 Improper
market data 14
(200) 13
(1857) 12
(1714) 14
(200) 17
(2429) 70
(2800) 6 Others - - 03
(300) 04
(400) 03
(300) 10
(400) Total 50
(2000) 47
(1880) 49
(1960) 52
(2080) 52
(2080) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
83
Malpractice Experience at APMC Yard
The major malpractices faced by the farmer respondents in the selected
APMCs while selling their agricultural produce in the study area is presented in the
Table 345
Table-345
Farmers Malpractice Experience at APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Inadequate grading
38 40 39 32 46 195
2 Inadequate packing
32 28 17 31 46 137
3 Unfavourable weightment
44 43 41 47 46 221
4 Excess samples 18 15 20 14 15 82
5 Inadequate supervision
21 23 28 22 25 119
6 Excess market charges
36 32 38 28 36 170
7 More favourable to buyer
41 42 43 48 49 223
8 Others 05 14 13 09 17 56
Total 50 (200)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The highest percentage of farmer respondents (221) are of the opinion that
unfavourable weighment in the sale is the major malpractice experienced by them
The second highest percentage of farmer respondents who are of the opinion that in
adequate grading by the buyer while selling their produce The third major
malpractice being taking excess market charges by commission agents as arbitrary
deduction in the sale amount of produce The next major malpractice (137) opined by
farmer respondents is regarding inadequate packaging to sale produce The other most
84
dominating and prevailing malpractice was found by the researcher is more
favourable to the buyer and improper weighment of their produce (223) in the market
yard For of respondents specified other malpractices as high wastages and non
payment of amount etc Inspite of all these malpractices affecting of the farmers it is
quite essential for all the APMCs in the study area should take some connective
measures to eliminate such malpractice Since the main purpose of the APMCs is to
regulate all marketing activities In the field study the steps taken by the APMC to
eliminate malpractice as expressed their views by the farmer respondents were
recorded very few percent of farmer respondents are of the opinion that APMC is
excising supervision over the malpractice regarding to selling and pricing the
commodity They also satisfied with the intervention of APMC officials to eliminate
malpractices in weighment grading activities but the farmer respondents were not at
satisfied with the APMC for not taking any steps to eliminate malpractices in payment
of sale price by the buyer to farmers
Disputes in APMC
So many disputes can arise among the farmers traders and middlemen over
the quality the grade the deductions and payment settlement etc The market
committees settles such disputes so the farmers as well as middlemen may not waste
their time and marketing in the court
During the field study the researcher has investigated to find out the opinion
of the farmers for main causes of disputes in the APMC yard The compiled
information is presented in the following Table 346
85
Table-346
Causes for Disputes in APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Price of produce
23 (2054)
20 (1786)
21 (1875)
24 (2143)
24 (2143)
112 (4480)
2 Quality of produce
10 (1786)
08 (1429)
05 (892)
11 (1964)
22 (3928)
56 (2240)
3 Weightment 30 (1974)
31 (2039)
32 (2105)
28 (1842)
31 (2039
52 (6080)
4 Timing of payment
37 (1989)
38 (2043)
40 (2150)
32 (1720)
39 (2096)
186 (7440)
5 Grading of produce
08 (1509)
10 (1887)
07 (1320)
11 (2075)
17 (3207)
53 (2120)
6 Warehousing 05 (1250)
08 (200)
07 (1750)
06 (1500)
14 (350)
40 (1600)
7 Others 18 (200)
15 (1667)
24 (2667)
25 (2777)
08 (888)
90 (3600)
Total 50 (2000)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Majority of respondents have disputes with commission agents as well as the
traders and few of them have disputes with hamals From the Table 346 it could be
seen that one of the major reasons for dispute being untimely payment (Delay in
payment) to farmer ie seller of agricultural produce Nearly more than half of the
respondents (7440) have opined that they are not being paid as per the provisions of
Act ie immediately after the sale of produce The next major causes of dispute being
weighment of produce Marketing three fifth of the respondents are not happy with
the weighment system prevailing in the market The third major causes of disputes is
being price of the produce About one third of the respondents (4480) have opined as
determination of the price of produce is also one of the major factor for the disputes
The other reasons of the disputes in the APMC yard in the Gulbarga division was
86
found are regarding quality of produce (2240) warehousing (1600) as determined by
farmers Very few of respondents feel that there is no reasons for disputes in the
APMC yards
As far as settlement of disputes are concerned farmer respondents are
preferred for settlement of disputes with traders at the level of secretary of the APMC
A part from that they also some time preferred to solve disputes through the dispute
committee where disputes are settled by arbitration Only 5 percent of the farmer
respondents from the sample size are of the opinion that disputes are settled by the
court of law In Gulbarga division of APMC maximum disputes were settled at
secretary level it calls for efficient secretaries in APMCs
Farmers respondents were also asked about the level of satisfaction in
settlement of disputes Nearly more than 40 percent of respondents are satisfied with
settlement of disputes However 30 percent of respondents are not fully satisfied with
settlement of disputes rest of the sample group were not given any response in this
regard
Quality of Services in APMC Yard
The sale of the agricultural produces by the farmers in the APMC yard
depends on the various services and their quality provided by the APMCs to the
farmers It is the true that if the services provided by APMCs to farmers are very
good large number of farmers bring their produce to the APMC market for sale
instead of open markets This definitely attracts more number of traders and market
functionaries to the market This results an impetus in getting not only good price for
their produce but also a competitive cost to the traders The farmer respondents were
asked to assess the quality of market services provided by the APMCs the responses
of respondents who expressed their level of satisfaction and dissatisfaction to different
facilities provided is presented in the following table
87
Table-347
Quality of Services at APMC
Quality of Services Name of APMC
Total Gulbarga Bidar Koppal Raichur Bellary
Very good 04 (200)
04 (200)
04 (200)
03 (150)
05 (250)
20 (80)
Good 41 (2930)
38 (1881)
40 (1980)
42 (2079)
41 (2029)
202 (808)
Bad 02 (250)
01 (1250)
01 (1250)
02 (250)
02 (250)
08 (320)
Very bad 01 (200)
01 (200)
02 (200)
01 (200)
-
05 (20)
Either bad good 02 (1333)
03 (200)
02 (1333)
04 (2667)
04 (2667)
15 (600)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total It could be observed from the above Table 347 that 8080 percent of farmer
respondents are of the opinion that the quantity of services provided by the APMC is
good 320 percent of total sample size of farmer respondents are if the opinion that it
is bad and 80 percent of the respondents are of the opinion that it is very good It is
to say satisfy that 8880 percent of farmer respondents are of the opinion that the
service provided by APMC is good and above average Hardly 520 percent of the
respondents expressed that the service provided are bad or very bad and 60 percent of
them neither opinioned bad nor good ie they were neutral
88
Table-348
Customary Deduction
Name of the APMCs As per Bye Laws More than Bye Laws Total
Gulbarga 05 (100)
45 (900)
50 (200)
Bidar 04 (851)
43 (9149)
47 (188)
Koppal 05 (1020)
44 (8980)
49 (1960)
Raichur 05 (961)
47 (9039)
52 (2080)
Bellary 07 (1346)
45 (8654)
52 (2080)
Total 26 (1040)
224 (8960)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
The study was conducted to know the farmers responses towards the
customary deductions from the sale of agricultural produce Sample groups were
given option whether customary deductions were as per bye laws or more than bye
laws Large number of farmer ie more than 89 of sample size were strongly
opinioned that customary deductions were not according
89
CHAPTER-IV PERFORMANCE EVALUATION OF APMCs
All the regulated markets working in Karnataka are distinct organization
created under the special clause with the objective of bringing the socio-economic
changes not only in the agricultural marketing sector but also economy as a whole
The existence of regulated markets creates an environment that is more favourable to
the existence of competitive conditions and to bring about the harmonious relations
between the farmers and market functionaries These organizations have the special
features as compared with the other organizations so the service of funds of regulated
markets and uses of the regulated market would be different keeping this the
following para attempted to analyze their financial performance in terms of their
profit position and growth in profit income position expenditure position and other
relevant financial aspects
A) Sources of Income of Regulated Markets
As far as regulated market are concerned they are non-profit or non-trading
organizations established with the objective of providing marketing services facilities
and other amenities for the producer of agricultural products who is in need of these
services for the facilitation of the sale of their produce To ensure smooth and
efficient services to farmer seller APMCs are required to own their establishments
and staff such as commission agent trader hamal and others who are carrying out
various markets functions ie grading processing weighment etc Hence APMCs
need finance to meet their administrative and management expenses of a recurring
and non-recurring nature of expenses The basic infrastructures are needed in the
provision of amenities and other facilities requiring capital investment for creating
these facilities in the market yard Establishment of infrastructure facilities not only
enough but also they need to be maintained the SC maintenance expenses is of
recurring in nature APMCs also need to have the permanent staff to do all the
functions in the market yard involves the fixed expenditure in the form of salaries
wages etc This necessitates the APMCs to have the permanent and regular sources of
income to meet all these regular expenses of fixed in nature and some portion of
recurring expenditure
90
APMCs are also required to meet the recurring expenditure such as
maintenance of road expenditure building godowns market yard vehicles and
machinery After the initial investment in these facilities from the borrowed capital
APMCs need to make payment of interest on loans tax charges payment of salaries
printing and stationery etc are to be paid periodically The different sources of
incomes through which the APMCs are earning revenue are shown in the following
parts along with the various expenditures by the APMC in the market yard
I) Market Fees
The APMCs Act and other laws relating to the agricultural marketing has
authorized all the regulated markets to levy and collect the market fees on the
agricultural produce bought for sales in the market yard The collection of the market
fees is the major source of income to the market committee and also the major source
of finance which determines to a very great extent the pace of development of market
yards both in terms of facilities and infrastructure
In traditional agricultural marketing market fees were collected on the basis of
the quantity bought for sale but these days the Acts and rules have been amended
more suitably giving maximum power to market committee to collect market fees on
the advalorem basis The chief items of the marketing charges are the market fee that
should be paid to the market committee the weighment fee commission brokerage
hamali charges and grading charges etc
In Karnataka in the beginning the market fees imposed on the buyers at the
rate not exceeding 30 paise per Rs100- of produce bought The APMC Act was
amended in 1973 August by an ordinance and the market fee to be levied was raised
to one rupees and the ordinance was however replaced by an act The rate of market
fees on every arrivals of cattle is Rs5- for each animal and rupee one for every sheep
and goats
The act also given some provisions for cooperative society doing business
within the market yard market fees shall be imposed and collected at the rate of 80
paisa per Rs100- of produce bought whereas in case of any other traders it is at the
91
rate of one percent on their total purchases ie one rupees per 1000 rupees This may
be considered as the cause for slow growth of agricultural marketing in Karnataka in
general and Gulbarga division in particular
II) License Fees
The various market functionaries who are operating in the regulated markets
of the state are the commission agents trader broker store keeper grader stockiest
importer exporter and any other functionary are imposed licence fee by the market
committee The license fee is the second main source of income to regulated market
This fee is collected in lum-sum as specified in the APMC act annually from each
applicant The total sum of income from license fees depends on the number of
market functionaries and the rate of license fee for various categories of market
functionaries
APMCs are authorized by KAPM (I) Act 1966 to impose and collect the
license fees from each category of market functionaries The maximum license fee
that could be levied under the act by the market committee on different types of
functionaries are Rs200 from traders and commission agents Rs100- each from
broker processor exporter importer ginner and crusher Rs25- from retail trader
and a nominal amount of Rupees 5 from hamal or cart man
III) Penalty
Penalties for evasion of payment of fee are imposed by the market
committees Section 65 (A) or KAPM Act 1966 empowers the regulated market
committee to punish with fine of not less than 12 percent But this penalty should not
exceed 30 percent on the amount of market fee If the penalty is not paid within the
specified time under bye laws made under section 65 of the act in it desecration also
recover similarly and pay over to the market committee or the board such amount
IV) Other Income Sources
APMCs collect market fees license fees and penalty from defaulters the
market committees are also generating the incomes from the following sources
a) Income from own properties
b) Income from deposits
92
c) Sale of books and forms
d) Sale of grass and cow dung
e) Fire fighter rent
f) Transfer fees and registration fees
g) Sale of plots etc
1) Income Position of Selected Regulated Markets
The income information of 15 APMCs ie three APMCs from each districts
in Gulbarga division were collected by the researcher from their annual reports and
other financial statements The component of the various income sources and their
respective figures provide a good insight to their financial performance The trends in
the growth of total incomes and individual incomes over a five year study period ie
2009-10 to 2013-14 helps in understanding the performance of all the selected
APMCs
I) Income Position of Gulbarga APMC
The income position of selected APMCs in Gulbarga district over the five
years study period are shown in the Table 41 below
Table 41 reveals a steady growth in income to the Gulbarga APMC in all the
years of study Conspicuously the total income from all sources to APMC was
Rs21976lakhs in 2009-10 while it was increased to 87054 lakhs in 2013-14 with a
annual aggregate growth of 5922 percent over the previous years When we look at
the figures of market fees holds the lions share in contributing income which range
between 8605percent to 9294 percent The same fact was also found in the APMC
Shorapur and APMC Shahapur In APMC Shorapur the percentage of market fees in
total income was in between 8420 percent to 9745 percent In case of Shahapur
APMC it ranges between lowest 6422 percent to highest of 6610 percent The other
major sources from where the APMC generated income were license fees levy and
licence fee penalty and other incomes generated was in total percentage fall between
906 percentage to 1995 percent in Gulbarga APMC In Shahapur and Shorapur
APMC penalty income was negligible it was Rs 031 lakhs to Rs 891 lakhs in
Shorapur APMC and Rs 126 lakhs to Rs 563 lakhs in Shahapur APMC during the
period under study
93
Table-41
Statement of Income of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 25106
(8605) 27111 (8763)
39233 (9155)
68713 (9294)
79170 (9094)
2 License Fees 321 (110)
487 (157)
561 (130)
664 (089)
733 (084)
3 Levy and License Fee 2069 (709)
1822 (58)
1981 (462)
2055 (277)
2382 (273)
4 Penalty 1180 (404)
642 (207)
519 (121)
625 (084)
1177 (135)
5 Interest on Deposits and other Income
500 (172)
574 (293)
558 (132)
1575 (256)
3592 (414)
Total 21976 (100)
30936 (100)
42852 (100)
73932 (100)
87054 (100)
Sl No APMC Shorapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 6012
(9039) 5647
(9281) 9607
(9745) 11365 (9079)
18674 (8420)
2 License Fees 104 (156)
106 (174)
078 (079)
117 (093)
117 (052)
3 Levy and License Fee 128 (192)
120 (197)
054 (054)
338 (270)
486 (219)
4 Penalty 200 (300)
101 (166)
031 (031)
206 (164)
891 (401)
5 Interest on Deposits and other Income
207 (313)
110 (182)
088 (011)
491 (394)
2008 (908)
Total 6651 (100)
6084 (100)
9858 (100)
12517 (100)
22176 (100)
Sl No APMC Shahapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1436
(8422) 1563
(7854) 1722
(7163) 3888
(7793) 5812
(6610) 2 License Fees 080
(469) 114
(572) 219
(910) 250
(501) 679
(772) 3 Levy and License Fee 034
(199) 042
(211) 0158 (657)
269 (539)
1071 (1218)
4 Penalty 126 (739)
183 (919)
196 (815)
204 (408)
563 (640)
5 Interest on Deposits and other Income
029 (171)
088 (444)
109 (455)
378 (759)
667 (76)
Total 1705 (100)
1990 (100)
2404 (100)
4989 (100)
8792 (100)
Source Annual reports of APMC Gulbarga 2009-10 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
94
It can be concluded from the above three APMCs in Gulbarga district that
Gulbarga APMC leading first in generating income Shorapur APMC is in second
position followed by APMC Shahapur
II) Income Position of Bidar APMC
Three APMCs from the Bidar district were selected for the comparative study
The income level of these three APMCs for the five years research period is presented
in the Table 42
The income generated by the APMC Bidar was lower in the beginning years
of research period ie it was Rs 18275lakhs in 2009-10 Rs16443 lakhs in 2010-11
and Rs17575 lakhs in 2011-12 During end years of research period it increased to
Rs31805 lakhs in 2012-13 and Rs 30420 lakhs in 2013-14 A critical look of the
figures in all the years of selected APMCs in Bidar district indicates that market fees
was the major component of total income of APMC which comprises an approximate
of 7910 percent in lowest side and 9554 percent in highest side Lowest market
fees percentage was recorded in APMC Aurad during 2012-13 and the highest
percentage was registered in 2013-14 in AMPC Bidar
95
Table-42
Statement of Income of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 16744
(9162) 15043 (9148)
15593 (8870)
29256 (9198)
29065 (9554)
2 License Fees 486 (265)
363 (220)
436 (248)
688 (216)
577 (1089)
3 Levy and License Fee 320 (175)
239 (145)
334 (190)
477 (149)
338 (111)
4 Penalty 600 (328)
466 (283)
515 (293)
719 (226)
202 (066)
5 Interest on Deposits and other Income
125 (070)
332 (204)
697 (397)
665 (211)
238 (08)
Total 18275 (100)
16443 (100)
17575 (100)
31805 (100)
30420 (100)
Sl No APMC Bhalki 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1424
(8431) 1232
(8999) 2423
(8846) 3596
(8304) 5871
(8544) 2 License Fees 096
(568) 081
(591) 163
(595) 293
(676) 306
(445) 3 Levy and License Fee 123
(728) 021
(153) 043
(156) 189
(436) 214
(311) 4 Penalty 022
(130) 017
(124) 034
(124) 138
(318) 222
(323) 5 Interest on Deposits and other
Income 024
(143) 018
(133) 076
(279) 114
(266) 258
(377)
Total 1689 (100)
1369 (100)
2739 (100)
4330 (100)
6871 (100)
Sl No APMC Aurad 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 903
(8014) 886
(8478) 887
(8431) 1333
(7910) 1617
(7922) 2 License Fees 093
(825) 081
(775) 083
(788) 123
(729) 132
(646) 3 Levy and License Fee 055
(488) 054
(516) 052
(494) 118
(700) 181
(886) 4 Penalty 006
(053) 004
(038) 012
(114) 051
(302) 050
(241) 5 Interest on Deposits and other
Income 069
(615) 020
(193) 018
(173) 060
(359) 061
(302)
Total 1126 (100)
1045 (100)
1052 (100)
1685 (100)
2041 (100)
Sources Annual reports of APMCs Bidar for 2003- 04 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
96
The other major sources contributing to the income of the APMCs in Bidar
district were license fee which was 646 percent to 625 percent in Aurad APMC
445 percent to 676 percent in APMC Bhalki and 216 percent to 1089 percent in
Bidar district APMCs The total income of Bhalki APMC was not constantly
increased during the study period It was fell to Rs 1369 lakhs in 2010-11 but it
increased during last three years of research period reached to Rs 6871 lakhs in
2013-14 As far as APMC Aurad is concerned it was inceased only in 2012-13 and
2013-14 As far as APMC Aurad is concerned it was increased only in 2012-13 and
2013-14 It was fall in 2010-11 and 2011-12 ie Rs 1045 lakhs and Rs 1052 lakhs
respectively It can be seen in table 42
III) Income Position of Koppal APMC
The statement of income of selected APMCs in Koppal district for the five
years ie 2009-10 to 2013-14 are given in table 43 The income of Koppal APMC
Gangavati APMC and Kustagi APMC were collected and analyzed in the following
paragraphs
The income generation in each of the five years by the APMCs selected as
sample in Koppal district was in APMC Koppal it was between Rs 3709 lakhs in
2009-10 to Rs 11032 lakhs in 2013-14 In APMC Gangavati a recorded
performance was found in earning incomes ie Rs 51692 lakhs in 2009-10 increased
rapidly to Rs91123 lakhs in 2013-14 APMC Kustagi was found to be least
performance in generation of the income The highest income was colleted by it was
Rs 3346 lakhs in 2013-14 and lowest was found in 2009-10 ie Rs 1341 The
annual aggregate growth in income generation by Koppal APMC was 3948 percent
per year The overall growth in APMC Gangavati income was 7628 percent over the
beginning year of research period The overall growth of percentage in the income of
APMC Kustagi during the five years study period was 14952 percent
97
Table-43
Statement of Income of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3269
(8813) 4072
(6961) 5675
(9119) 5682
(8775) 10021 (9083)
2 License Fees 090 (242)
110 (188)
101 (162)
097 (149)
106 (096)
3 Levy and License Fee 062 (167)
193 (329)
133 (213)
187 (288)
207 (187)
4 Penalty 104 (280)
211 (360)
146 (234)
178 (271)
255 (231)
5 Interest on Deposits and other Income
184 (498)
1263 (2162)
168 (272)
331 (517)
443 (403)
Total 3709 (100)
5849 (100)
6223 (100)
6475 (100)
11032 (100)
Sl No APMC Gangavati 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 49044
(9487) 67016 (9724)
75834 (9692)
74674 (9363)
84042 (9223)
2 License Fees 236 (045)
287 (042)
311 (039)
303 (038)
569 (062)
3 Levy and License Fee 703 (135)
515 (074)
807 (103)
716 (089)
1038 (114)
4 Penalty 189 (036)
212 (030)
267 (034)
258 (032)
317 (034)
5 Interest on Deposits and other Income
1520 (297)
887 (130)
1020 (142)
3804 (478)
5157 (567)
Total 51692 (100)
68917 (100)
78239 (100)
79755 (100)
91123 (100)
Sl No APMC Kustagi 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1214
(9052) 1234
(9167) 1384
(8216) 2079
(8266) 2516
(7519) 2 License Fees 024
(178) 029
(215) 031
(184) 036
(143) 041
(122) 3 Levy and License Fee 014
(104) 016
(118) 026
(154) 055
(218) 063
(188) 4 Penalty 001
(007) 001
(007) 003
(017) 007
(027) 018
(054) 5 Interest on Deposits and other
Income 088
(659) 066
(493) 240
(1429) 338
(1346) 708
(2117)
Total 1341 (100)
1346 (100)
1684 (100)
2515 (100)
3346 (100)
Sources Annual reports of APMCs Koppal for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
98
The glance at the each income figures with respect to three APMC in Koppal
district reveals that market fees again dominant ie 6961 percent to 9724 percent to
total income of the APMC Other important heads from which the income was
derived were license fee 096 to 242 in Koppal APMC 038 to 062 in
APMC Gangavati and 122 to 215 in APMC Kustagi during the period under
consideration ie 2009-10 to 2013-14 The penalty fees collected by the APMC
Kustagi and APMC Gangavati were almost below one percent to total income and this
was above 2 percent in APMC Koppal A sizeable income ie 498 percent to 2117
percent has also been contributed under the head interest on deposits and other
income The trend in this income was more or less similar during all the years of
research period
IV) Income Position of Raichur APMC
The income position and growth in income position of selected APMCs in
Raichur district was presented in the Table 44 The income was shown for the study
period ie 2009-10 to 2013-14 Riachur is considered to be a commercial street the
volume of business is high as compared to the Lingasugur Sindnoor APMC has
acquired a good position in the Raichur district as compared to other APMC in the
district
Table 44 gives the various incomes acquired by the selected APMC in the
Raichur district Raichur as a commercial centre there would be large number of
market functionaries and large volume of transactions Hence the total income of the
market was obviously quite high (around Rs120202 lakhs annually) During 2009-10
the total income of APMC Raichur was Rs 48932 lakhs APMC Sindnoor was Rs
20629 lakhs and APMC Lingasugur was just Rs 2907 lakhs It was shown an
increasing trend in all the three APMC selected in Raichur district during all the five
years of research period Income was found in the year 2013-14 in the sample APMC
from Raichur district Income from the other sources ie penalty interest on deposits
sale of shops godowns and sale of books and forms were much higher as compared to
the corresponding incomes in the other years of study Such an increase in the total
income was noticed in the Table 44
99
Table-44
Statement of Income of Selected APMCs in Raichur District
(Rs In lakhs)
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 45972
(9395) 55687 (9542)
68293 (9491)
82847 (8275)
106917 (8894)
2 License Fees 314 (064)
326 (056)
335 (046)
336 (033)
347 (028)
3 Levy and License Fee 1218 (248)
1463 (250)
1525 (211)
1540 (153)
1617 (134)
4 Penalty 218 (044)
250 (040)
269 (037)
289 (028)
313 (026)
5 Interest on Deposits and other Income
1210 (249)
630 (110)
1528 (215)
15105 (1511)
11008 (918)
Total 48932 (100)
58356 (100)
71950 (100)
100117 (100)
120202 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 18106
(8776) 21418 (9410)
28650 (9523)
33937 (7914)
45905 (9281)
2 License Fees 212 (102)
209 (091)
238 (079)
226 (052)
258 (052)
3 Levy and License Fee 1029 (498)
658 (1289)
613 (203)
1569 (365)
1292 (261)
4 Penalty 819 (396)
309 (135)
386 (128)
2080 (485)
1108 (224)
5 Interest on Deposits and other Income
464 (228)
166 (075)
197 (067)
5069 (1184)
892 (182)
Total 20629 (100)
22760 (100)
30084 (100)
42881 (100)
49456 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 2016
(6934) 2361
(6367) 3457
(5687) 3702
(5632) 4221
(5582) 2 License Fees 084
(288) 161
(434) 219
(360) 379
(576) 397
(521) 3 Levy and License Fee 493
(1695) 552
(1488) 817
(1344) 871
(1325) 1017
(1344) 4 Penalty 032
(110) 064
(172) 186
(306) 213
(324) 286
(378) 5 Interest on Deposits and
other Income 282
(973) 570
(1539) 1399
(2303) 1408
(2143) 1641
(2172)
Total 2907 (100)
3708 (100)
6078 (100)
6573 (100)
7562 (100)
Sources Annual reports of APMCs Raichur for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
100
In order to see the composition of the total revenue of Raichur Sindnoor and
Lingasugur APMCs the income statement of 2009-10 to 2013-14 was considered A
detailed analysis at the figures in the table 44 indicates that a market fee was the
major contributor to the total income which contributed to the tune of 5582 percent
to 9542 percent The other major sources of revenue to the APMC are interest on
deposits (182 to 2172) Penalty income was contributed average in APMC
Sindnoor moderate in APMC Raichur and minor contribution in APMC Lingasugur
V) Income Position of Bellary APMC
In Bellary district development activities undertaken by the department of
agriculture are about increasing yield of kharif season and other seasons under
irrigation this has naturally increased the market turnover in the Bellary district
APMC The details of the income collected by the sample APMCs in Bellary district
is shown in the Table 45
Table 45 gives the details of an account of income of the APMCs selected
from the Bellary district for the analysis purpose A birdsrsquo eye view of the total
income figures during financial years indicate that the annual average income of the
APMC of Bellary was around Rs 33660 lakhs except during the first three years of
the study period The market fees collected during the study years was also ranged in
between the 8165 in 2009-10 to 8942 in 2013-14 Levy and license fees were
contributed to the extent of 306 to 806 to total income and penalty amount was
just only to 075 to 462 to total incomes
101
Table-45
Statement of Income of Selected APMCs in Bellary District
(Rs In lakhs)
Sl No APMC Bellary 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 13400
(8165) 19398 (8680)
24037 (8514)
35774 (8865)
54510 (8942)
2 License Fees 316 (192)
343 (153)
0392 (139)
399 (098)
346 (056)
3 Levy and License Fee 1323 (806)
1529 (684)
2001 (708)
1912 (473)
1870 (306)
4 Penalty 320 (194)
370 (165)
462 (163)
451 (111)
458 (075)
5 Interest on Deposits and other Income
1052 (643)
706 (318)
1338 (476)
1816 (453)
3775 (621)
Total 16411 (100)
22346 (100)
28230 (100)
40352 (100)
60959 (100)
Sl No APMC Hospet 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3458
(8051) 4335
(7629) 5075
(7924) 5561
(8158) 6811
(7884) 2 License Fees 089
(207) 086
(151) 097
(151) 108
(158) 132
(152) 3 Levy and License Fee 407
(948) 592
(1041) 636
(993) 663
(972) 892
(1032) 4 Penalty 041
(095) 166
(292) 215
(335) 217
(318) 289
(334) 5 Interest on Deposits and
other Income 300
(699) 503
(887) 381
(597) 267 (39)
515 (598)
Total 4295 (100)
5682 (100)
6404 (100)
6816 (100)
8639 (100)
Sl No APMC Siraguppa 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 9054
(9160) 11330 (9131)
25909 (9352)
31838 (9237)
45500 (8285)
2 License Fees 068 (068)
071 (057)
107 (038)
108 (031)
105 (019)
3 Levy and License Fee 363 (367)
341 (274)
491 (177)
492 (142)
535 (097)
4 Penalty 019 (019)
047 (037)
054 (019)
089 (026)
096 (017)
5 Interest on Deposits and other Income
381 (386)
619 (501)
1143 (414)
1939 (564)
8676 (1582)
Total 9885 (100)
12408 (100)
27704 (100)
34468 (100)
54912 (100)
Sources Annual reports of APMCs Bellary for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
102
As far as APMC Hospet and APMC Siraguppa are considered the market fees
collected by these APMCs were became major sources of income followed by levy
and license fees and penalty It is noticed from the same table that APMC Siraguppa
has made history in generation of income during 2012-13 and 2013-14 ie it earned
Rs 34468 lakhs and 54912 lakhs incomes respectively Almost the income was
jumped five times to beginning year income ie 9885 lakhs This clearly carries the
message that APMC Siraguppa was not performed consistency in financial
performance APMC Hospet has ensured stability in the performance but in terms of
amount of collection it was positioned third place in selected APMC in Bellary
district
B) Uses of Incomes by APMCs
1) Market Committee Fund
Incomes received by the market committees in the form of market fees
licence fees and other fees or incomes by way of penalty are used as per the Section
90 of KAPM (R) Act of 1966 All expenditure incurred by the committee under or for
the purposes of this Act shall be defrayed out of the market fund and any surplus
remaining at the close of each market year after such expenditure has been met shall
be credited to the permanent fund of the committee within the three months of the
close of the year and it shall be used only towards incurring the expenditure of
permanent nature such as construction of buildings acquisition of lands or such other
purposes as the Director of Agricultural Marketing may specify
After meeting all such expenditure excess shall be invested in state
cooperative Apex bank or other cooperative banks or government savings banks
account The KAPM (R) Act 1961 clearly defined the purposes for which the market
committee fund may be expanded beyond the above mentioned The fund so created
should be allowed to uses for the purpose laid down in this Act ie providing
facilities in the market areas payment of allowances arrangement of amenities such
as grading and standardization collection and dissemination of market information
settlement of disputes payment of interest on borrowed loans etc
103
II) Contribution to Consolidated Fund
All the marketing committees are bound to contribute some amount to
Karnataka State Agriculture Marketing Board The Director of Agricultural Marketing
estimates the approximate expenditure likely to be incurred by the state government
during a particular financial year an account of salary and other allowances and
election of the members of the market committees Taking all these estimated
expenditures under section 91 of the KAPM Act the Director of Agricultural
Marketing shall by order determine the percentage of gross receipts that every
market committee must and should contribute to the state consolidated fund of the
state
III) Contribution to KSAM Board
Agriculture section 92 of the Karnataka produce marketing Act has made a
provision to create ldquoMarketing Development Fundrdquo and it is managing by the KSAM
board Every market committee is required to contribute every month to the board 5
percent of the gross receipts during the previous calendar month
IV) Other Expenditures
A part from the contribution to market committee fund contribution to state
consolidated fund and contribution to KSAM Board market committees are also
necessary to meet the other expenses regularly such as administration expenses which
includes salary to staffs printing and stationary legal fee advertisement rent
electricity bill and maintenance charges Expenditure to provide amenities to market
functionaries and farmers and other miscellaneous
Expenditure Position of Selected APMCs in Gulbarga District
In this part an effort is made to analyze data relating to the total expenditures
incurred and components of expenditures with respective figures to get the depth of
knowledge about the trends in growth of expenditures over a period of 5 years
between 2009-10 to 2013-14
104
Table-46
Trends in Growth of Expenditure of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga
Years 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 I Contribution to state
consolidated fund 15732 (7016)
13575 (6562)
18231 (7200)
33150 (7215)
35676 (7225)
II Contribution to KSAM board
1933 (862)
1484 (750)
2216 (875)
4024 (876)
4197 (850)
III Administrative expenses 2708 (1208)
2396 (1211)
3076 (1215)
5514 (1200)
6004 (1216)
IV Expenditure on amenities
1713 (764)
1832 (926)
1327 (524)
2532 (551)
2696 (546)
V Miscellaneous 337 (150)
496 (251)
472 (186)
727 (158)
805 (163)
Total 22423 (100)
19783 (100)
25322 (100)
45947 (100)
49378 (100)
2 APMC Shorapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
1359 (4500)
4146 (4052)
4140 (4050)
3340 (3890)
2439 (5220)
II Contribution to KSAM board
473 (1565)
1751 (1711)
1750 (1712)
1556 (1812)
905 (1936)
III Administrative expenses 665 (2216)
2587 (2528)
2581 (2525)
2128 (2478)
1182 (2530)
IV Expenditure on amenities
440 (1458)
1586 (1550)
1534 (1501)
1285 (1496)
107 (228)
V Miscellaneous 079 (261)
070 (159)
005 (212)
277 (324)
040 (086)
Total 3020 (100)
10234 (100)
10223 (100)
8586 (100)
4673 (100)
3 APMC Shahapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
363 (4801)
703 (6701)
920 (5742)
2480 (6688)
2308 (6454)
II Contribution to KSAM Board
054 (714)
064 (610)
067 (418)
081 (218)
074 (206)
III Administrative expenses 154 (2037)
128 (1220)
252 (1573)
501 (1351)
489 (1367)
IV Expenditure on amenities
065 (860)
072 (686)
143 (892)
263 (709)
258 (721)
V Miscellaneous 120 (1580)
082 (783)
22 (1375)
383 (1034)
447 (1252)
Total 756 (100)
1049 (100)
1602 (100)
3708 (100)
3576 (100)
Source Annual reports of APMC Gulbarga for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
105
As that of the income position the analyses of the pattern of expenditure also
important as the functions of the regulated markets are constrained by the financial
limitations Here the study of expenditure dimension of regulated market was felt
necessary The pattern of the growth in expenditure has shown a steady pace during
2012-13 and 2013-14 in APMC Gulbarga It was very lowest in 2010-11 ie 19783
lakhs The major items of expenditures to which Gulbarga APMC Shorapur APMC
and Shahapur APMC were diverted include contribution to state consolidated fund
expenditure on amenities and contribution to KSAM board During the research
period the share contribution to state consolidated fund was ranged between 6562
to 7223 in Gulbarga APMC this percent of share in total expenditure was in
between 3590 to 5220 in APMC Shorapur and in APMC Shahapur it was
4801 to 6701 At the same time the contribution to KSAM board was almost
below 20 to total expenditure in all three APMCs selected in Gulbarga district
The administration expenses was found to be second major item of
expenditure in sample units of Gulbarga district It was all most stable in Gulbarga
APMC ie 12 and above 2216 to 25305 in Shorapur APMC and 1220 to
2037 in the Shahapur APMC The other expenses such as the security facilities
rent taxes electricity printing and stationary charges etc remained as minor
expenditure
II) Expenditure position of selected APMCs in Bidar District
The expenditure statement relating to the selected APMCs in Bidar district is
shown in the below Table 47 The percentage of individual expenditure to total
expenditure for the period of five years is also presented in the same table
A glance on the statement of trends in growth of expenditure in the selected
APMC in Bidar district reveals that the Bidar APMC had an annual expenditure
around Rs 145 lakhs In case of APMC Bhalki annual average expenditure was
around Rs 2118 lakhs and in APMC Aurad this amount was Rs 1701 lakhs
106
Table-47
Trends in Growth of Expenditure of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
6600 (7141)
10883 (7016)
8645 (6625)
10623 (6740)
13753 (7267)
II Contribution to KSAM board
1761 (823)
1260 (812)
1370 (1050)
1668 (1058)
1972 (1042)
III Administrative expenses
1382 (1496)
1945 (1254)
1249 (957)
1597 (1013)
2292 (1211)
IV Expenditure on amenities
275 (298)
462 (298)
1019 (781)
986 (568)
759 (401)
V Miscellaneous 225 (242)
961 (620)
766 (587)
888 (621)
149 (079)
Total 9243 (100)
15511 (100)
13049 (100)
15762 (100)
18925 (100)
2 APMC Bhalki 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
503 (5164)
619 (5213)
768 (4931)
1245 (4777)
2284 (5359)
II Contribution to KSAM board
069 (711)
076 (640)
184 (1183)
334 (1281)
889 (2085)
III Administrative expenses
380 (3902)
426 (3586)
547 (3510)
918 (3525)
858 (2013)
IV Expenditure on amenities
011 (112)
031 (265)
041 (260)
087 (335)
189 (444)
V Miscellaneous 012 (211)
036 (296)
018 (116)
023 (082)
042 (099)
Total 975 (100)
1188 (100)
1558 (100)
2607 (100)
4262 (100)
3 APMC Aurad 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
365 (5577)
188 (3067)
256 (3514)
486 (4065)
2185 (4113)
II Contribution to KSAM board
048 (740)
093 (1516)
089 (1219)
182 (1517)
782 (1471)
III Administrative expenses
211 (3210)
186 (3050)
243 (3341)
361 (3016)
1521 (2862)
IV Expenditure on amenities
014 (221)
105 (1725)
121 (1661)
150 (1255)
751 (1415)
V Miscellaneous 018 (252)
041 (642)
019 (265)
018 (147)
074 (139)
Total 656 (100)
613 (100)
728 (100)
1197 (100)
5313 (100)
Source Annual reports of APMC Bidar for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
107
From the table 47 it was clear that administrative expenses constitute 957
to 1496 in total expenses in APMC Bidar it was as high as compared to APMC
Bidar and APMC Aurad ie 2013 to 3902 during the research period In Aurad
the situation was completely different ie it ranged between 2862 to 3341
during the same period ie 2009-10 to 2013-14
The trends in the contribution to state consolidated fund also showed an
increasing and decreasing trend in all the three APMCs in Bidar district during the
plan period In Bidar APMC it was registered lowest contribution to state
consolidated fund in the year 2009-10 ie Rs 6600 lakhs and the highest in Rs
13753 lakhs in 2013-14 Similarly in case of APMC Bhalki lowest was recorded in
2009-10 ie Rs 975 lakhs and highest in the year 2013-14 ie Rs 4262 lakhs But
in APMC Aurad beginning year ie 2009-10 it was Rs 365lakhs decreased to Rs
188 lakhs in 2010-11 and again increased to maximum Rs 2185 lakhs in 2013-14
Apart from a sizeable proportion of expenditure (ie 116 to 961) was made
under the head miscellaneous
III) Expenditure position of selected APMCs in Koppal
The trends in the growth of total expenditure incurred by the sample APMCs
in the Koppal district is presented for the five years period ie 2009-10 to 2013-14 in
the below Table 48
Table 48 depicts the expenditure position of three APMCs selected for the
present study in the Koppal district A detailed analysis of this indicates that the total
expenditures incurred by APMC Koppal were increased through out the study period
from Rs 2217 lakhs in 2009-10 to Rs 6862 lakhs in 2013-14 The same situation
was also found in case of APMC Gangavati ie Rs 29714 lakhs in 2009-10
increased to Rs 54160 lakhs in 2013-14 and in APMC Kustagi total expenditure was
Rs 4015 lakhs in 2009-10 raised to Rs 6295 lakhs in 2013-14
108
Table-48
Trends in Growth of Expenditure of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
1157 (5217)
1522 (5071)
2205 (5316)
2261 (5555)
4023 (5862)
II Contribution to KSAM board
143 (646)
224 (748)
307 (741)
287 (705)
537 (782)
III Administrative expenses
668 (3014)
944 (3147)
1167 (2813)
1101 (2704)
1720 (2506)
IV Expenditure on amenities
226 (1019)
267 (891)
333 (805)
332 (815)
480 (700)
V Miscellaneous 023 (104)
044 (143)
137 (325)
091 (221)
102 (150)
Total 2217 (100)
3001 (100)
4149 (100)
4072 (100)
6862 (100)
2 APMC Gangavati 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
15819 (5324)
23396 (5410)
28621 (5450)
27388 (5470)
29896 (5520)
II Contribution to KSAM board
1902 (640)
2422 (560)
2757 (525)
2753 (550)
3629 (670)
III Administrative expenses
8338 (2806)
12541 (2900)
15807 (3010)
14821 (2960)
15381 (2840)
IV Expenditure on amenities
3310 (1114)
4329 (1001)
4989 (950)
4657 (930)
4604 (850)
V Miscellaneous 345 (116)
558 (129)
342 (065)
451 (090)
650 (120)
Total 29714 (100)
43246 (100)
52516 (100)
50070 (100)
54160 (100)
3 APMC Kustagi 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2168 (5400)
2357 (5610)
2498 (5520)
2647 (5620)
3607 (5730)
II Contribution to KSAM board
225 (560)
189 (450)
288 (660)
363 (770)
535 (850)
III Administrative expenses
1169 (2913)
1195 (2845)
1326 (2930)
1232 (2615)
1711 (2718)
IV Expenditure on amenities
422 (1050)
405 (965)
319 (705)
396 (840)
319 (507)
V Miscellaneous 031 (077)
056 (130)
094 (185)
072 (155)
123 (195)
Total 4015 (100)
4202 (100)
4525 (100)
4710 (100)
6295 (100)
Source Annual reports of APMC Koppal for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
109
When we look at the percentage of specific expenditure in the total
expenditure contribution to state consolidated fund was major component ie in
Koppal APMC 5071 to 5862 in APMC Gangavati 5324 to 5520 and in
APMC Kustagi 54 to 5730 during the plan period However contribution to
KSAM Board constitute an annual average around Rs 3 lakhs per year in APMC
Koppal Rs 2693 lakhs per year in APMC Koppal Rs 2693 lakhs per year in
APMC Gangavati and Rs 32 lakhs per year in APMC Kustagi Administration
expenses also got secondary importance in the expenditure position followed by the
expenditure on amenities in the market yard Miscellaneous expenditure constitutes a
negligible percentage in the total expenditure
IV) Expenditure position of selected APMCs in Raichur
Table 49 depicts the year wise total expenditure spent by the sample
APMCs in the Raichur district during the five years period of study ie 2009-10 to
2013-14 Table 49 reveals that the expenditure incurred by the APMC Raichur was
not constantly increased It was decreased in 2010-11 and 2011-12 indicating that it
was more efficient in control of expenditure but during last two years of plan period it
increased from Rs44965 lakhs in 2009-10 to Rs67431 lakhs in 2013-14 with annual
aggregate growth over pervious year Rs4493 lakhs
In case of Sindnoor APMC the annual growth during the study period was
Rs3835 lakhs over the previous year As far as APMC Linagsugur is concerned this
was Rs 564 lakhs A keen observation on the expenditure statement of selected
APMCs in Raichur district points out that the APMC Raichur has got first rank in
terms of the total expenditure incurred among the selected APMCs in the district
followed by the APMC Sindnoor and APMC Lingasugur respectively As use well
contribution to state consolidated fund remained the dominating expenditure in the
total expenditure followed by expenditure on amenities Administration expenses and
contribution to KASM Board The state consolidated fund which was eaten away the
major position of total expenses (6535) to 7238 in Raichur APMC 5518 to
5730 in APMC Sindnoor and 5518 to 5730 in APMC Sindnoor and 5566 to
600 in APMC miscellaneous expenses remained minor expenses in total expenses
110
Table-49
Trends in Growth of Expenditure of Selected APMC in Raichur District
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 31862 (7086)
24764 (6535)
30247 (7100)
39880 (7238)
21275 (3155)
2 Contribution to KSAM board
3795 (0844)
5135 (1355)
5197 (1220)
6391 (1160)
3539 (525)
3 Administration expenses 5216 (1160)
4036 (1065)
4090 (960)
4849 (880)
(1550)
4 Expenditure on Amenities 2905 (646)
2065 (545)
2185 (513)
3471 (630)
(4210)
5 Miscellaneous 1187 (264)
1894 (500)
882 (207)
508 (092)
(560)
Total 44965 (100)
37894 (100)
42601 (100)
55099 (100)
67431 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 6283
(5655) 7740
(5518) 11182 (5685)
14152 (5690)
17353 (5730)
2 Contribution to KSAM board
833 (750)
1000 (713)
1241 (631)
1644 (661)
1968 (650)
3 Administration expenses 589 (530)
588 (419)
1017 (517)
1300 (523)
1332 (440)
4 Expenditure on Amenities 3350 (3015)
4418 (3150)
5959 (3030)
7496 (3014)
9443 (3118)
5 Miscellaneous 0050 (050)
280 (200)
270 (137)
279 (112)
188 (062)
Total 11111 (100)
14026 (100)
19669 (100)
24871 (100)
30284 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 1102
(5566) 1364
(5818) 2193
(5910) 2674
(6130) 2879
(6000) 2 Contribution to KSAM
board 127
(640) 331
(1431) 382
(1030) 689
(1580) 773
(1612) 3 Administration expenses 159
(804) 144
(614) 394
(1061) 267
(611) 362
(755) 4 Expenditure on Amenities 500
(2530) 483
(2060) 673
(1814) 628
(1440) 710
(1480) 5 Miscellaneous 092
(460) 023
(095) 069
(185) 104
(239) 074
(153) Total 1980
(100) 2345 (100)
3711 (100)
4362 (100)
4798 (100)
Source Annual reports of APMC Raichur for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
111
V) Expenditure position of selected APMCs in Bellary
In the Table 410 the details of the various expenditure incurred by the three
APMCs which are taken for the research as sample in the Bellary district are shown
clearly along with individual expenditure percentage to total
The total expenditure for all the five years of the study and the details of
expenditure under each heads along with the percentage to total of Bellary APMC
indicates that a rapid growth was found in total expenditure ie Rs 8835 lakhs in
2009-10 increased to Rs 33116 lakhs in 2013-14 with compound annual growth
during study years 27482 This compound growth in the APMC Hospet was found
to be negative in 2010-11 and 2013-14 and positive in 2011-12 and 2012-13 In case
of Siraguppa APMC the compound growth was 47147 during research period
112
Table-410
Trends in Growth of Expenditure of Selected APMC in Bellary District
(Rs In lakhs)
Sl No APMC Bellray
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
4477 (5067)
3860 (2767)
4820 (2026)
6933 (2811)
10076 (3042)
II Contribution to KSAM board
746 (844)
643 (461)
1803 (758)
1155 (468)
1679 (507)
III Administrative expenses
3310 (3746)
4673 (3350)
15965 (6711)
16011 (6490)
20499 (6190)
IV Expenditure on amenities
276 (312)
159 (114)
1190 (500)
558 (226)
838 (253)
V Miscellaneous 026 (031)
011 (007)
008 (005)
011 (005)
024 (008)
Total 8835 (100)
13946 (100)
23766 (100)
24668 (100)
33116 (100)
2 APMC Hospet 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2406 (7014)
2210 (7161)
2852 (6562)
2961 (6860)
2460 (7176)
II Contribution to KSAM board
320 (932)
216 (700)
416 (957)
429 (993)
317 (924)
III Administrative expenses
481 (1402)
418 (1354)
425 (978)
402 (931)
418 (1219)
IV Expenditure on amenities
114 (332)
101 (327)
269 (618)
219 (507)
125 (365)
V Miscellaneous 109 (320)
141 (458)
384 (885)
305 (709)
108 (316)
Total 3430 (100)
3086 (100)
4346 (100)
4316 (100)
3428 (100)
3 APMC Siraguppa 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
4088 (5154)
4055 (5011)
7662 (4813)
9122 (4313)
28595 (6310)
II Contribution to KSAM board
564 (711)
544 (672)
1238 (778)
1581 (748)
2626 (579)
III Administrative expenses
3030 (3820)
2903 (3587)
5026 (3157)
6919 (3271)
9763 (2154)
IV Expenditure on amenities
167 (211)
293 (362)
883 (555)
1477 (698)
2888 (637)
V Miscellaneous 082 (104)
297 (368)
1111 (697)
2051 (970)
1452 (320)
Total 7931 (100)
8092 (100)
15920 (100)
21150 (100)
45324 (100)
Source Annual reports of APMC Bellary for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
113
C) Profit Position
Profit is the excess of income over expenditures by the organization Profit is
the best indicator of the performance of any organization Higher the profit higher is
the efficiency and vice-versa APMCs are established not for profit motive but profits
remain important for their survival for future An attempt here is made to know profit
position by taking income and expenditure of all the selected APMCs in the Gulbarga
division and conclusion is drawn about their performance by comparing in APMC
with other APMC and also level of performance during the period under study
Table 411 depicts the year wise income expenditure and profitloss position
of the selected APMCs in the Gulbarga district The income of the three sample
APMCs from the Gulbarga district was shown an upward trend during the research
period ie 2009-10 to 2013-14 expect in the year 2010-11 the APMC Shorapur
income was down to Rs 6084 lakhs from Rs 6651 lakhs in 2009-10 When we see
the expenditure position of all the APMCs in the same table neither it was constantly
increasing or decreasing over a period of time it was showing zigzag trend Expect
the Shahapur APMC remained increasing during the plan period from Rs 756 lakhs
in 2009-10 to Rs 3576 lakhs in 2013-14
114
Table-411
Profit Position of Selected APMC in Gulbarga District
(Rs In lakhs)
Year Gulbarga Shorapur Shahapur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 29176 22423 6753 6651 3020 3631 1705 756 949
2010-11 30936 19783 11153 6084 10234 - 4150 1990 1049 941
2011-12 42852 25322 17530 9859 10223 0364 2404 1602 802
2012-13 73932 45947 27984 12517 8586 3931 4989 3708 1281
2013-14 87054 49378 37676 22176 4673 17502 8792 3576 5216
Source Annual Reports of Gulbarga APMC for 2009-10 to 2013-14
115
The detailed study of profit position of the selected APMC in Gulbarga district
also indicates that Shahapur APMC has made average amount of the profit in research
period without incurring any loss in the same period But APMC Shorapur had made
huge loss in the year 2010-11 ie Rs 4150 lakhs during heavy expenditures As per
APMC Gulbarga is concern profit was increased steadily from Rs 6753 lakhs in
2009-10 to Rs 37676 lakhs in 2013-14 with an annual aggregate growth of Rs 6184
lakhs per year
The Table 412 reveals that the profit or loss position of the selected APMCs
in Bidar district The analysis of profit of above APMCs in the table indicates that
Bidar APMC has positioned first in earning profit among three APMCs followed by
Bhalki APMC and APMC Aurad During the research period APMC Aurad had
incurred to Rs 3271 lakhs in 2013-14 The profit of Bidar APMC was ranged in
between Rs 932 lakhs to Rs 16042 lakhs and APMC Bhalki it was lowest to Rs
181 lakhs to highest Rs 2608 lakhs Both income and expenditure of Bidar APMC
was increased rapidly over a period time But in case of Aurad APMC the degree of
growth of expenditure was greater than the degree of growth in income which
reported slow growth in the profit The situation was different in case of APMC
Bhalki it was opposite and was almost 4 times increased in APMC Bhalki ie from
Rs 714 lakhs to Rs 2608 lakhs profit remained stable in APMC Aurad ie in
between Rs 323 lakhs to Rs 16042 lakhs in APMC Bidar during the period under
consideration
116
Table ndash 412
Profit Position of Selected APMCS in Bidar District
(Rs In lakhs)
Year Bidar Bhalki Aurad
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 18275 9243 9031 1689 975 714 1126 656 469
2010-11 16443 15511 932 1369 1188 181 1045 613 432
2011-12 17575 13049 4526 2739 1558 1181 1052 728 323
2012-13 31805 15762 16042 4330 2607 1722 1685 1197 487
2013-14 30420 18925 11495 6871 4262 2608 2041 5313 - 3271
Source Annual Reports of Bidar APMC for 2009-10 to 2013-14
117
The Table 413 deals with the trends in growth of income expenditure and
profit position of sample group of APMCs from the Koppal district Koppal district
APMCs were considered to be minor APMCs in the Gulbarga division A micro study
of these three APMCs in Koppal district reveals that APMC Gangavati was a leading
APMC in the Koppal district as it made super profit during the research period as
compared to APMC Koppal and AMPC Kustagi APMC Koppal has made average
profit ie Rs 1492 lakhs to Rs 4170 lakhs and APMC Kustagi has made normal
profit ie from Rs 540 lakhs to Rs 3995 lakhs during the five years study period
ie 2009-10 to 2013-14 Increased expenditures in APMC Koppal and APMC
Kustagi was eaten the profit
Profit position of the three APMCs from the Raichur district for the period of
five years ie 2009-10 to 2013-14 is shown in the Table 414 The table clearly
shows the year wise income position and its growth expenditure position and its trend
and the profit trend Among these three APMCs selected in sample from the Raichur
district Raichur APMC has earned highest amount of income which resulted highest
profit during the study period as compared to the APMC Sindhnoor and APMC
Lingasugur The profit of APMC Raichur was Rs20629 lakhs in 2009-10 increased
to Rs 45018 lakhs in 2013-14 during the research period During the same period
the profit of APMC Sindhnoor was increased from Rs 9518 lakhs to Rs 19171
lakhs and APMC Lingasugur from Rs 1327 to Rs 2201 lakhs with percentage
growth of almost 100 and 9026 respectively
118
Table-413
Profit Position of Selected APMCs in Koppal District
(Rs In lakhs)
Year Koppal Gangavati Kustagi
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 3709 2217 1492 51692 29714 21977 1185 645 540
2010-11 5849 3001 2848 68917 43246 25671 1346 775 571
2011-12 6223 4149 2074 78239 52516 25722 1684 1005 679
2012-13 6475 4072 2403 79755 50070 29684 2514 1469 1045
2013-14 11032 6862 4170 91123 54160 36963 10291 6295 3995
Source Annual Reports of Koppal APMC for 2009-10 to 2013-14
119
Table-414
Profit Position of Selected APMCs in Raichur District
(Rs In lakhs)
Year Raichur Sindnoor Lingusugur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 40895 19035 21859 20629 111111 9518 3761 2434 1327
2010-11 48932 44965 3966 22760 14026 8734 2907 1980 926
2011-12 58356 37894 20462 30084 19669 10414 3708 2345 362
2012-13 71950 42601 29348 42881 24871 18009 6078 3711 2367
2013-14 100117 55099 45018 49455 30284 19171 7562 4362 2201
Source Annual Reports of Raichur APMC for 2009-10 to 2013-14
120
The Table 415 reveals the year wise profit made by the sample APMCs in the
Bellary district APMC Hospet has made least profit during all five years research
period but it increased from Rs 864 lakhs in 2009-10 to Rs 5211 lakhs in 2013-14
APMC Bellary had achieved significant progress in earning profit as compared to
APMC Siraguppa The profit of APMC Bellary steadily increased around 4 times
over the beginning year ie Rs 7576 lakhs in 2009-10 to Rs 27843 lakhs in 2013-
14 But the APMC Sirguppas profit was highest recorded in 2011-12 and 2012-13 ie
Rs 11784 lakhs and Rs 13315 lakhs respectively
121
Table-415
Profit Position of Selected APMCS in Bellary District
(Rs In lakhs)
Year Bellary Hospet Siragoppa
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 16411 8835 7576 4295 3430 864 9885 7931 1954
2010-11 22346 13946 8399 5682 3086 2596 12408 8092 4316
2011-12 28230 23786 4444 6404 4346 2058 27704 15920 11784
2012-13 40352 24682 15670 6816 4316 2499 34466 21150 13315
2013-14 60959 33116 27843 8639 3428 5211 59912 45324 9587
Source Annual Reports of Bellary APMC for 2009-10 to 2013-14
122
CHAPTER-V FINDINGS SUGGESTIONS AND CONCLUSION
FINDINGS
1 During field study the researcher found that all the APMCs working in
Gulbarga division are suffered storage facilities in general and cold storage
facilities in particular This calls for medium and big producers to take storage
facilities by paying heavy fees to private service provider
2 The field investigation resulted that the farmers have been experienced
difficulties in getting timely payment even after the sale of their produce
3 It is learnt from the field study of market participant that larger participant
were qualified upto secondary and the technical qualification such as ITI
Diploma etc Education among market participant is considered to be most
significant factor in discharging their duties and responsibilities more
efficiently and effectively
4 The analysis of nature of participant in the agricultural market revealed that
commission agents were dominant in the total market participant followed by
traders with 25 of sample group and Hamalas which constitute 16 of
sample size
5 Macro studies of facilities at the APMC yard in five districts of Gulbarga
division opinioned the lack of facilities ie Non-availability of drinking water
canteen transport and communication facilities etc One sample lsquoTrsquo test was
applied and the result shows that lsquotrsquo values ranged for above facilities between
46425 to107000 Mean difference was found between 14400 to 2000
6 The correlation between two variable ie advance money and number of
commodities was +0611 which is insignificant Similarly the correlation
between transport facility and role of government in market and graduation
facility with more representatives from farmers resulted 0445 and 0948 also
in significant but the only significant factor found between difficulty of
storage and increase in facilities with a value of 0508
7 There are different sources of incomes available to APMC These sources may
be classified like market fees licence fees penalty etc Among these sources
123
of income market fees collected by APMC were major but other incomes are
also envisaged in KAPM (R) Act 1966
8 The expenditure position of the selected APMCs in Gulbarga division which
covers five districtrsquos found that major use of expenditure by each APMCs
were contribution to state consolidated fund and contribution to KSAM Board
which was ranged between 3042 to 7210 and 564 to 2630
respectively
9 There are only three charges allowed for deduction from the sale produced of
farmers in Gulbarga APMC division they are commission to agents Hamali
and weighment Field investigation by researcher found that these charges are
nominal
SUGGESTIONS
1 To achieve its (APMC Act) objectives and for effective implementation of its
bye law and policies it is suggested that APMCs should open its branches at
Hobli level so that they may help and guide the formers in marketing of their
grown agricultural produce
2 It is recommended to all APMCs in Gulbarga division to take efforts to stop
rural marketing to get better price An inspection team has to be formed to
stop local sales The team member should visit all the villages coming under
the jurisdiction of the APMC during Post harvest
3 Lots of changes have to be brought into the marketing activities in the APMC
yard Scientific grading and enlightment for all commodities in the market
yard be made compulsory in a phased manner
4 Illiteracy of formers and lack of Medias for communication of information has
been a big problem in rural as well as semi-urban areas The information
obtained should be in a position to help them in decision making Hence it is
recommendable to each APMC for equipping the intelligence cell and branch
offices with highly qualified and trained staff to perform the job quicker to
help producers at right time
5 The existing facilities of processing and storage in all the APMC of Gulbarga
division are inadequate This gap need to be filled up The local government
administrative bodies financial agencies and APMCs should motivate the
124
processing units to be set up and also more godowns are to be encouraged for
construction in these areas
6 Proper co-ordination between the financial agencies established by APMCs or
any other organization to be set up for this purpose is necessary This
definitely prevent the exploitation of farmers by private financiers This
problem needs to be tackled on priority basis in Gulbarga division
7 To avoid the injustice at the time of weighment of farm produce on arrival
and sale APMCs needs to make it compulsory to install electronic weighting
machines The issue of weighment note to the agriculturist by agents is made it
compulsory
8 As far as Gulbarga division APMCs are concerned they have completely
neglected the importance of two marketing services ie assembling and
processing The absence of these two services in the study area is a reflection
on its lethargic and indifferent attitude in providing a comprehensive package
of marketing services to the rural farmers
9 Lots of changes have to be brought into the payment to the farmers after sales
The strong actions against the defaulting commission agent should be
exercised and also cautioned against such delays on their part when any
complaint from the farmers regarding the delay In this regard formulation of
rigid policy is recommended at all APMCs
10 Some of the APMCs in Gulbarga division are still practicing mutual
negotiation method of sale this leads unfavourable price for the agricultural
produce Auction system of sale is made compulsory for all commodities
arriving in the market yard and negotiation method is to be prohibited
11 It was noticed from the market yard during the field visit different types of
malpractices on the part of the unscrupulous market functionaries In order to
eliminate this harassment to farmers the marketing committee has to detect
such unethical practices from market participants and they be severely
punished with fine and imprisonment
12 To improve the overall quality of services (marketing services and
infrastructure facilities) it is strongly advisable to marketing committees to
implement all the provisions lay down in KAPM (R) Act 1966 and rules in
1968 along with suggestions made by Indian standards Institute (RSI) for the
benefit market functionaries in general and farmers in particular
125
13 A network of rural storage centres should be built on a priority basis in order
to prevent distress sales wastage and loss arising out of inadequate and
defective storage facilities
14 These storage centres may be constructed and managed by panchayats
cooperatives and other suitable agencies selected by the State Government
15 Farmers should be provided with receipts for the commodities stored by them
Each receipt should be a negotiable instrument to enable them to obtain credit
from banks
16 The banks should provide credit to the extent of 90 percent of the value of the
stocks stored by the farmers and the credit should be provided at concessional
rates of interest
17 Arrangements for the display of prices on notice boards at important public
places like hospitals schools panchayat ghars etc should be made
18 There must be proper coordination between market intelligence and policy
making departments so that the later may better understand the problem and
can make such adjustments in the information as may be called for
CONCLUSION
Indiarsquos long-neglected agriculture sector is all set to grow faster We have
improved a lot since independence In the last few years it has grown at an average
rate of 31 only and there is a need to step up the growth in this sector Then only
Indiarsquos GDP growth cross 9 and rural income and rural employment increases
It is time to APMCs to give concrete shape to the agro-industrial integration
by starting industrial units based on agricultural raw-materials This integration will
create a better economic atmosphere for the growth of the Karnataka region as well as
Gulbarga division
126
BIBLIOGRAPHY
1 Acharya S S and D P Chaudhri (Ed) Indian Agricultural Policy at Cross-
Roads Rawat Publications Jaipur 2001
2 Acharya S S and N L Agarwal Agricultural Prices-Analysis and Policy
Oxford and IBH Publishing Co Pvt Ltd New Delhi 1994
3 Acharya S S Agricultural Production Marketing and Price Policy-A Study
of Pulses Mittal Publications Delhi-110035 1988
4 Acharya S S M S Rathore and P R Sharma Agricultural Marketing - A
National Dialogue Institute of Development Studies Jaipur 1998
5 Agarwal N L Agricultural Prices and Marketing in India-An Analytical
Case Study of Rajasthan Mittal Publications Delhi-110035 1986
6 Agricultural Technology Management Agency MANAGE-NATP series 2
1999
7 Amarchand D and B Vardharajan An Introduction to Marketing Vikas Pub-
lishing House Private Ltd New Delhi 1980
8 Anne Margaret Thomson 1993 Promoting Private Sector Involvement in
Agricultural Marketing in Africa (Fao Agricultural Services Bulletin)
9 Bailey Norwood F and Jayson Lusk 2007 Agricultural Marketing and Price
Analysis
10 Barker J W 1990 Agricultural Marketing (Oxford science publications)
11 Berend Wierenga Aad van Tilburg Klaus Guumlnter Grunert and Jan-Benedict
EM Steenkamp 1997 Agricultural Marketing and Consumer Behavior in a
Changing World
12 Bill Malcolm Jack Makeham and Vic Wright 2006 The Farming Game
Agricultural Management and Marketing
13 Brian How R 1995 Marketing Fresh Fruits and Vegetables (An AVI Book)
14 Brunk M E and L B Darrah Marketing of Agricultural Products The
Ronald Press Company New York 1955
15 Campbell K O 1973 Agricultural Marketing and Prices Cheshire
Publishing Melbourne Australia
16 Carter S 1998 Global Agricultural Marketing Management (Marketing amp
Agribusiness Texts Series (Series 09005676 No 3)
127
17 Chakraborty and Krian Sankar 2009 Rural Markets and Agricultural
Marketing
18 Chandra Shekara P 2001 Private Extension in India Myths Realities
Apprehensions and Approaches
19 Chandrashekara P 2001 Private Extension Indian Experiences
20 Common Principles for Watershed Development 1999
21 Crawford I M 1997 Agricultural and Food Marketing Management
(Marketing and Agribusiness Texts 2)
22 Dennis Chiwele Pumulo Muyatwa-Sipula and Henrietta Kalinda (Paperback -
Jan 1998) Private Sector Response to Agricultural Marketing Liberalisation in
Zambia A Case Study of Eastern Province Maize Markets (Research Report
Nordiska Afrikainstitutet)
23 Desai G R and Arora S K 1999 Trainers Training manual for Participatory
Management on Watershed
24 Desmond ORourke A 1994 The World Apple Market (Fpp Agricultural
Commodity Economics Distribution amp Marketing)
25 Dieter Elz 1987 Agricultural Marketing Strategy and Pricing Policy (World
Bank Symposium)
26 Dixit R S 2006 Agricultural Marketing in India
27 Erdener Kaynak 1986 World Food Marketing Systems
28 Erdener Kaynak and Matthew Meulenberg 1995 Food and Agribusiness
Marketing in Europe
29 Euan Fleming and Hugh Coulter 1992 Agricultural Export Marketing South
Pacific The Future Role of Marketing Authorities (Pacific Policy Papers)
30 Farris P 1983 Future Frontiers in Agricultural Marketing Research
31 Fertilizer and product Guide 1997
32 Foxall G R1982 Co-Operative Marketing in European Agriculture
33 Geoffrey S Shepherd and Gene A Futnell 1982 Marketing Farm Products
Economic Analysis
34 George Angell 1986 Agricultural Options Trading Puts and Calls in the New
Grain and Livestock Futures Market
35 Giriappa S 2000 Institutions and agricultural marketing in a semi-commercial
system
128
36 Gupta A P Marketing of Agricultural Produce in India Vora and Co
Publishers Pvt Limited Mumbai 1975
37 Hughes D R HM Martin and MVan Nieuwkerk 1993 A Comparative
Study of Agricultural Marketing in the Netherlands and the United Kingdom
(Food Industry Perspectives Discussion Paper)
38 Inderjit Singh Lyn Squire and James Kirchner 1985 Agricultural Pricing and
Marketing Policies in an African Context A Framework for Analysis (World
Bank Staff Working Paper) (No 743)
39 Indian Society of Agricultural Marketing Vistas in Agricultural Marketing
1997
40 Jagdish Prasad Encyclopedia of Agricultural Marketing Vol I to VIII 2000
Mittal Publications Delhi-110035
41 Narain Dharam Distribution of the Marketed Surplus of Agricultural Produce
by Size-Level of Holdings in India 1950-51 Asia Publishing House New
Delhi
42 Nayyar H and P Ramaswamy Globalization amp Agricultural Marketing
Rawat Publications Jaipur 1995
43 Neelamegham S Marketing Management and the Indian Economy Vikas
Publishing House Pvt Ltd New Delhi 1978
44 Padberg D I C Ritson and L M Albisu 1997 Agro-Food Marketing
45 Polopolus LC and Jesus Alvarez 1991 Marketing Sugar and other
Sweeteners (Developments in Agricultural Economics)
46 Prabhakar Rao Marketing Efficiency in Agricultural Production Himalaya
Publishing House Mumbai 1985
47 Procurement guidelines under National Agricultural Technology Project
MANAGE-NATP series 4 2000
48 Raghavendran T 2001 Disbursement Procedure for World Funded Projects
(A Guide to Project Implementing Agencies) by MANAGE-NATP series 5
49 Rajagopal Development of Agricultural Marketing in India Print well Jaipur
1996
50 Ralph M Chite 2007 HTML Agricultural issues in the 109th Congress An
article from Congressional Research Service (CRS) Reports and Issue Briefs
129
51 Ramesh Chand and V P S Arora (Ed) Agricultural Input and Output
Market Reforms in India Advance Publishing Concept New Delhi-11 0064
2000
52 Ramesh Chand Agricultural Development Price Policy and Marketed Surplus
in India (Study of Green Revolution Region) Concept Publishing Company
New Delhi-11 0059 1991
53 Rao NGP Perumal N Ghosal SL 1997 Training for Agriculture
Development
54 Sarveshwara Rao and G Parthasarthy Regulated Markets and Public Policy
Book links Corporation Hyderabad
55 Secondo Tarditi Kenneth J Thomson Pierpaolo Pierani and Elisabetta Croci-
Angelini 1989 Agricultural Trade Liberalization and the European
Community
56 Seetharaman S P Agricultural Input Marketing Oxford and IBH Publishing
Co New Delhi
57 Singh J P and Kareem M A 2001 Economic Evaluation of Participatory
Adaptive Research Project
58 Singh J P 2000 Economic Evaluation of Manchal Watershed
59 Singh J P 2000 Socio Economic Dynamics and Development Strategy for
Participatory Adaptive Research Project (PAR)
60 Singh J P 2002 Evaluation of Participatory Adaptive Research Project K
H Vedini 2001 Agriculture Marketing Interventions amp Innovations
61 Singh Rajkumar Agricultural Price Policy in India Print well Publishers
Jaipur
62 Singh J P Chandrasekhar P Kumar TDS and Lakshmi Murthy
2000 Israelrsquos Agriculture (Achievement through innovation and
Technology)
63 Singhal A K 2009 Agricultural Marketing in India by publisher Anmol
Publications pages 246
64 Singhal AK 1989 Agricultural marketing in India
65 Singhal A K Agricultural Marketing in India Anmol Publications New
Delhi 1989
66 Southworth Herman Some Studies on Fresh Fruits and Vegetable Marketing
in Asia Agricultural Development Council Bangkok Thailand 1974
130
67 Subba Rao K Agricultural Marketing and Credit ICSSR New Delhi 1985
68 Tyagi D S Managing Indias Food Economy-Problems and Alternatives
Sage Publications India Pvt Ltd New Delhi 1990
69 Vedini K H 2000 Management Issues in Rainfed Agriculture in India
70 Venkateswarulu J 1999 Technical Manual on Watershed Management
(Series (II) Resource(III)Arable Cropping Systems (IV) Non-Arable
Cropping Systems (V) Non-farming Systems amp Watershed in Retrospect
Conservation)
71 Vijay Gaatha 2002 Agripreneurs Documents 24 success stories of
agripreneurs with 40 different types of projects
72 Vijender Agricultural Marketing in India The Mandi System
JOURNALSMAGAZINES
1 Indian Journal of Agricultural Economics - Quarterly The Indian Society of
Agricultural Economics 46-48 Esplanade Mansions MG Road Fort
Mumbai-400001
2 Agricultural Situation in India - Monthly Directorate of Economics and
Statistics Ministry of Agriculture Government of India New Delhi
3 Indian Agriculture in Brief - Annual Directorate of Economics and Statistics
Ministry of Agriculture Government of India New Delhi
4 Yojana - Monthly Ministry of Information and Broadcasting Government of
India New Delhi
5 Economic Survey - Annual Ministry of Finance Government of India New
Delhi
131
APPENDIX-I QUESTIONNAIRE
QUESTIONNAIRE FOR FARMERS
1) Name of the Farmerhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Name of the village and district helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3) Age (in years)
a) Below [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
4) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P G and others [ ]
5) Sources of income
a) Agriculture [ ] b) Business [ ]
c) Employment [ ] d) Others [ ]
6) Annual gross income (In Rs)
a) Agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Non agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
7) Type of family
a) Nuclear family [ ] b) Joint family [ ]
c) Individual (single) [ ]
8) Number of family members
a) lt 4 [ ] b) 4 ndash 8 [ ]
c) 8 ndash 12 [ ] d) 12 and above [ ]
9) Total agricultural land holding (In Acres)
a) Below 5 Acres [ ] b) 5 ndash 10 Acres [ ]
c) 11 ndash 15 Acres [ ] d) Above 16 Acres [ ]
10) Crops grown in land with quantity per annum
Qty (in Quintals)
a) Red gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Green gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) Black gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) Jowar helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
e) Maize helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
f) Bajra helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
132
g) Bengal gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
h) Sugarcane helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
i) Others helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
11) Sale of agricultural produces
a) Open market [ ] b) APMC [ ]
c) Confirmation Agriculture [ ] d) Others [ ]
12) Preference of sale of agricultural produce
a) Local market [ ] b) Taluka market [ ]
c) District market [ ] d) Other state [ ]
13) How you carry agricultural produce to APMC
a) Bullock cart [ ] b) Tractor and trucks [ ]
c) Hired vehicle [ ] d) Own vehicle [ ]
14) Market charges of the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
15) Carrying cost paid in the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
16) Facilities provided by the APMC
Yes No
a) Water [ ] [ ]
b) Toilet [ ] [ ]
c) Canteen [ ] [ ]
d) Communication [ ] [ ]
e) Shopping property [ ] [ ]
f) Marketing information [ ] [ ]
g) Other facilities (if any) [ ] [ ]
17) Sources for dissemination of marketing information
a) News paper [ ]
b) Radio and Television [ ]
c) Dept of the government [ ]
d) Post and Telephone [ ]
e) Price bulletins [ ]
f) Personal contact [ ]
133
18) Rank the defects in regulated markets
a) No advance money [ ]
b) Difficulty of storage [ ]
c) Lack of transport facility [ ]
d) Lack of gradation facility [ ]
19) Rank the facilities to improve market efficiency
a) More number of commodities [ ]
b) Increases in facilities [ ]
c) More role of government [ ]
d) More representation from farmers [ ]
e) Reduction in market fees [ ]
20) Weather APMC provides adequate transport services
a) Yes [ ] b) No [ ]
21) Weather APMC provides adequate storage facilities
a) Yes [ ] b) No [ ]
22) Does APMC has cold storage facilities at warehouse
a) Yes [ ] b) No [ ]
23) What is the monthly storage cost of your produce at APMC
Rs helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
24) Whether APMC helps you for processing of your produce
a) Yes [ ] b) No [ ]
25) Do you satisfied with processing services provided by processors
a) Yes [ ] b) No [ ]
26) Processing fees paid to processors
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
27) Whether grading facilities are available at the APMC
a) Yes [ ] b) No [ ]
28) Do you satisfied with grading services provided by graders
a) Yes [ ] b) No [ ]
29) Are the graders trustworthy
a) Trustworthy [ ] b) Not trustworthy [ ]
30) Whether APMC provides efficient weighment of produce
a) Yes [ ] b) No [ ]
134
31) Do you satisfied with cost charged for weighment of produce
a) Yes [ ] b) No [ ]
32) Whether electronic weighing balancesmachine have been installed in
markets
a) Yes [ ] b) No [ ]
33) Causes of the defects in weighing
a) Absence of licensed weighman [ ]
b) Under weighing [ ]
c) Favouring for buyer [ ]
d) Faulty weights [ ]
e) Faculty weight machines [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
34) Grading of produce helps in the ways
a) Easy marketing [ ]
b) Reduction of cost [ ]
c) Higher prices [ ]
d) Encourage competition [ ]
e) Easy to get finance [ ]
35) Whether APMC provides market information on time to time
a) Yes [ ] b) No [ ]
36) If lsquoNorsquo what are the defects in market information
a) Ignore retail prices [ ]
b) Delay in news [ ]
c) Wide range of prices [ ]
d) Incomplete information [ ]
e) Illiteracy [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
37) Processing of produce helps to you in the ways
a) Add the value [ ]
b) Preservation for longer period [ ]
c) Less cost of production [ ]
d) Wide extent of the market [ ]
e) Use of surplus food [ ]
135
38) Do you insure your agricultural produce at APMC
a) Yes [ ] b) No [ ]
39) Whether you satisfied with the insurance facilities at the APMC
a) Yes [ ] b) No [ ]
40) Whether bank credit faculties available at the APMC
a) Yes [ ] b) No [ ]
41) Are you satisfied with present banking facilities
a) Yes [ ] b) No [ ]
42) What are the other sources of credit facilities other than bank credit
a) Whole sellers [ ] b) Retail seller [ ]
c) Commission agents [ ] d) Others (specify)helliphelliphelliphelliphellip
43) Ranking the factors determining the finance requirements
a) Nature of crop [ ] b) Terms of payment [ ]
c) Economic condition [ ] d) Fluctuations of prices [ ]
e) Volume of crop [ ]
44) Interest paid on bank credit
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
45) Are you obtaining services form the commission agents at APMC
a) Yes [ ] b) No [ ]
46) Are you satisfied with services provided by licensed commission agents
a) Yes [ ] b) No [ ]
47) If lsquoNorsquo what are the defects with commission agents
a) Favourable to buyer [ ]
b) High commission [ ]
c) Misguide [ ]
d) Lack of knowledge [ ]
e) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
48) Commission paid to commission agents
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
49) Do you have given any complaint against agent to the APMC about more
commission
a) Yes [ ] b) No [ ]
136
50) Whether sufficient number of Hamals are available at the APMC
a) Yes [ ] b) No [ ]
51) The cost of cooli to Hamals
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
52) Are you satisfied with hamals services
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
53) Do you have given any complaint against hamals to APMC for high cooli
a) Yes [ ] b) No [ ]
54) Cooperation of officials of the APMC
a) Fully cooperated [ ] b) Partly cooperated [ ]
c) Not cooperated [ ] d) Neither cooperatenor not [ ]
55) What are the defects you found with APMC officials
a) Non-cooperative [ ] b) Favourable to buyer [ ]
c) Laziness [ ] d) Expect money [ ]
e) Improper market data [ ] f) Others (Specify) helliphelliphellip
56) Do you have given ay complaint to higher officer against defaulting
APMC officer
a) Yes [ ] b) No [ ]
57) Do you have experienced following malpractices at the APMC
a) Inadequate grading [ ]
b) Inadequate packing [ ]
c) Unfavourable weighment [ ]
d) Excess samples [ ]
e) Inadequate supervision [ ]
f) Excess market charges [ ]
g) More favourable to buyer [ ]
h) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
58) Do you have any disputes with buyer
a) Yes [ ] b) No [ ]
59) What are the main causes for disputes in APMC
a) Price of produce [ ]
137
b) Quality of produce [ ]
c) Weighment [ ]
d) Timing of payment [ ]
e) Grading of produce [ ]
f) Warehousing [ ]
g) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
60) Which is the best way for settling of market disputes
a) Secretary level [ ] b) Dispute committee [ ]
c) Arbitration [ ] d) Court [ ]
61) Whether market committee officers supervises the services
a) Yes [ ] b) No [ ]
62) Do you find that APMC helped you in getting better prices for your
produce
a) Yes [ ] b) No [ ]
63) Your opinion about quality of service at APMC
a) Very good [ ] b) Good [ ]
c) Bad [ ] d) Very bad [ ]
e) Either good or bad [ ]
64) What is your opinion about customary deduction
a) As per bye laws [ ]
b) More than systems [ ]
65) Give your suggestions for making improvement in quality of services at the APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
138
APPENDIX-II QUESTIONNAIRE FOR RESPONDENTS
A) Personal Information
1) Name of respondents helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Age of respondents in years
a) Below ndash 20 [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
3) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P and G and others [ ]
4) Religion
a) Hindu [ ] b) Muslim [ ]
c) Christian [ ] d) Others (Specify) helliphelliphelliphelliphelliphellip
5) Nature of participant in APMC
a) Commission agents[ ] b) Hamals [ ]
c) Trader [ ] d) Grader [ ]
e) Processor [ ] f) Broker [ ]
g) Others (Specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6) How long you are in market yard
a) Below 10 years [ ] b) 11 ndash 20 [ ]
c) 21 to 30 [ ] d) 30 and above [ ]
7) Factors motivated for choosing this profession
a) Heredity [ ] b) More profitable [ ]
c) Uncertain induced [ ] d) Unemployment [ ]
e) Other specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
8) Are you satisfied with present marketing practices at APMC
a) Yes [ ] b) No [ ]
9) If lsquoNorsquo give the reasons for unsatisfaction
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
10) Are you satisfied with farmerrsquos activeness in APMC
a) Yes [ ] b) No [ ]
139
11) If lsquoNorsquo suggest to make them more active in market yard
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
12) Are you getting following facilities at the APMC yard
a) Water [ ]
b) Canteen [ ]
c) Communication [ ]
d) Marketing information [ ]
e) Transport [ ]
f) Health and sanitation [ ]
g) Banking and finance [ ]
h) Other (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13) Do you satisfied the above facilities at the APMC yard
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
14) Are you satisfied with quality of marketing of services at the APMC
Services Fully
satisfied
Partly
satisfied
Not
satisfied
No
response
a) Assembling
b) Processing
c) Grading
d) Storing
e) Weighment
f) Banking and finance
g) Rest house
h) Insurance
15) What suggestions do you want for efficient operations of APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
140
APPENDIX-III
PHOTOGRAPHS
ENTRY GATE OF APMC
ROAD FACILITY INSIDE APMC
141
WEIGHING GROUNDNUTS IN APMC
PROCESSING OF GROUNDNUTS
142
FILLED COTTON BAGS
WEIGHING TUR IN APMC
143
STORING GROUNDNUTS OUTSIDE
PROCESSING GRADING AND WEIGHING BAJRA
144
FILLING OF SUNFLOWER IN BAGS
LOADING OF COTTON BY LABOURS
- Table-317
- lsquotrsquo - Test Values
- Table-327
- Pearson Correlations
-
v
CONTENTS
Sl No Chapter Page
No
1 INTRODUCTION AND RESEARCH DESIGN 01
2 FUNCTIONS AND TRADE PRACTICES ON APMCs 11
3 CUSTOMER PERCEPTION ABOUT MARKETING MANAGEMENT OF APMC IN GULBARGA DIVISION
42
4 PERFORMANCE EVALUATION OF APMCs 89
5 FINDINGS SUGGESTIONS AND CONCLUSION 122
6 BIBLIOGRAPHY 126
7 APPENDICES 131
1
CHAPTER-I INTRODUCTION AND RESEARCH DESIGN
11 INTRODUCTION
India is such a vast country which derives fifty percent of its national income
from agriculture The marketing methods in agricultural produce different from
country to country state to state and also within state This gives considerable scope
for the study of marketing of agricultural produce in the various states of the country
Agricultural marketing practices need to be uniform in the interest of developing
wider markets for better prices For this reason only many states have passed acts
regulating the marketing of agricultural produce in the state to reduce them to a
common practice and to avoid the exploitation of the primary producers and also to
give better prices for his produce
Organized marketing of agricultural commodities has been promoted in the
country through a network of regulated markets Most of the State governments and
Union Territories have enacted legislations (APMC Act) to provide for regulation of
agricultural produce markets While by the end of 1950 there were 286 regulated
markets in the country today the number stands at 7921 (3132014) Besides the
country has 29191 rural periodical markets about 15 per cent of which function
under the ambit of regulation The advent of regulated markets has helped in
mitigating the market handicaps of producerssellers at the wholesale assembling
level But the rural periodic markets in general and the tribal markets in particular
remained out of its developmental ambit
The central government has advised states and union territories to amend their
respective APMC laws in order to avail assistance for developing and strengthening
agricultural marketing infrastructure In the present scenario with the changing
picture in world trade system there has been growing demand for de-regulating the
agricultural markets and establishment of private markets some initiatives have
already been taken in this direction The central government has proposed
amendments in state Agricultural Produce Marketing (Regulation) Act The same is
expected to take place in the near future The said amendments have been proposed
2
with the aim of helping the farmers and hence market committees are obliged to
implement these amendments The Karnataka State Agricultural Marketing Board was
established on 1st September 1972 as per section 100 of the Karnataka Agricultural
Produce Marketing (Regulation) Act 1966 and Rules 1968 The Board acts as a
liaison agency between the market committees and the government of Karnataka for
all-round development of agricultural marketing in the state
12 NEED FOR THE STUDY
The marketing services available in the regulated markets have been very
useful in overcoming various problems of sellers of farm produce like the middle
menrsquos malpractices distress and forced sales at village level under weighing and
other malpractices by the middlemen and also the village money lenders etc
Majority of the agricultural produce is being sold at the village itself by
farmers immediately after harvesting due to urgent financial requirements and lack of
transport facilities Besides a large number of small holders of agricultural land
Hence the quantity of produce is too small for brining it to urban market place for the
purpose of selling at better prices
Establishment of regulated markets in various urban centers has facilitated
marketing of surplus agricultural produce at fair and reasonable prices In evaluating
the government marketing intervention programmes a distinction has to be made
between (a) the nature and degree of marketing intervention to achieve a defined
policy objectives and (b) the most cost effective way of implementing the marketing
intervention scheme However the centers of regulated markets are inadequate in
relation to the number of villages and vast farm sector Hence there is scope for
increasing of number of APMCs and submarket yards in addition to improving the
functioning of existing APMCs to ensure better services and adequate infrastructural
facilities at the premises of these markets A majority of these regulated markets
suffers from certain deficiencies in their functioning
In view of this the present study is undertaken to analyze the extent to which
the inadequacy of marketing of services are encountered by the farmers and other
functionaries in the APMC at Gulbarga division as a whole The research confines
3
itself to the management of APMCs in Karnataka in general and Gulbarga Bidar
Raichur Koppal and Bellary district APMCs in particular The total APMCs consist
for the present study is five APMCs from each district of study area
13 REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related
areas of the subject to find out and to fill up the research gaps Literature on
agricultural marketing can generally be found in a number of books that are available
on agricultural economics rural marketing and regulated markets Only very few
studies were undertaken on APMC and its performance in both agricultural marketing
and development The important studies relating to the present investigation are
referred below
Gopal Rao (1974) has undertaken the study on APMCs and has analyzed their
working in detail The author has confined his study to the four districts of Bombay
Karnataka region through a survey of the markets in the region
Ravirsquos (1975) work analyses the marketing problems of coconut and copra in
Tipatur and Arasikere regulated markets of Karnataka In this area coconut marketing
is dominated by village sales (66) followed by sales through commission agents
(16) and through wholesalers (about 11) and the rest directly by the farmers
(about 7)
Bhogappa (1982) has undertaken the study on ldquoMarketing of agricultural
produce in Gulbarga division of Karnatakardquo which covers only the APMCs of
Gulbarga Revenue Division He has made a special study of the effects of draught and
draught prone areas He has analyzed the special problems of the markets in ldquoAyacutrdquo
areas
Ramaswamy (1984) has submitted the thesis on ldquoA Critical Study of the
Working of Regulated Markets in Tamil Nadu with special reference to Coimbatore
and Periyar districtsrdquo This was the first attempt to assess the applicability of the Act
in Tamil Nadu which has thrown a light on cropping pattern
4
Rayudu (1985) highlighted the five aspects of cardamom marketing designed
by Cardomon Board The Board collects data on global requirements position of
supply conducting market survey for planning implementing and evaluation The
findings in this study could be useful in suitable applications for the finer aspects in
the marketing of similar products
Biradar (1989) observed that there was no incentive scheme for farmers It is
therefore necessary to start the incentive programmes like providing higher prices for
their commodities agricultural inputs at concessional rates and charging lower market
make regulated markets more attractive to the farmers These suggestions have a good
deal of subsidy components on the part of the Government
Selvamurugan and Mohan Sundaram (1990) in their study on the Coimbatore
district concluded that the crossandra in Coimbatore district concluded that the
corrssandra farmers share had been reduced from 3256 percent to 2423 percent
during the lean season Though the street vendors margin had also been reduced from
2328 to 1460 percent the share of commission agents and wholesalers had increased
to large extent ie from 4416 to 6107 per cent
Reddy (1991) conducted a study on marketing channels and marketing
margins of maize in Andhra Pradesh The study revealed that the producers share was
significantly high (8664 to 8687) in the case of Producer to Retailer to Consumer
channel as compared to corresponding share of producer (6314 to 7067) in case of
second channel ie Producer to Wholesaler to Retailer to Consumer
Nagraj and Chandrakant (1992) conducted a study on market performance of
perishables In the study the major marketing channel for vegetables was as below
Producer to Commission agent to Retailer to Consumer
The study could be of much relevance for researches in similar areas of agricultural
marketing
Biswas and Karpate (1994) observed the importance of Maharashtra State
Tribal Development Corporation (MSTDC) in marketing of minor forest produce
The tribal of the area were assured of basic minimum price for their produce notified
5
by the collector of the district The payments in normal course were made
immediately and saved them from exploitation by the middlemen
Mundinamani and Naik (1994) concluded that the per marketing cost of potato
was Rs 2074 as compared to Rs 2261 for brinjal Rs 2325 for onion Rs 2147 for
tomato Rs 5692 for dry chilly Rs 2975 for cotton and Rs 1936 for groundnut
The factors for differences in marketing cost of such agricultural produce need to be
probed by further studies
Atibudhi and Prusty (1995) have studied the marketing margins of Niger in
Rayagada district of Orissa The study concluded that the presence of co-operative
societies in marketing channel reduces the marketing margins and increases the
producers share in consumers rupee Marketing costs were the lowest in the co-
operative channel But marketing costs for storage procurement and transport were
higher for the same
Pawar (1996) has conducted a study on marketing surplus and price spread of
groundnut in Marathwada region of Maharashtra which is the most important
groundnut growing zone where 49 percent of the land is used to grow groundnut The
study concluded that distress sale of ground nut was found in small farmers but
medium and large farmers kept their surplus for future sale to get maximum price
Krishnaih (1998) has conducted a study to identify the marketing channels of
cotton and to analyze the price spread in these channels where he has suggested 7
different channels on distribution of cotton His effort is quite appreciable and it offers
for further research work on the topic However he found that while marketing of
cotton (kapas) majority of the farmers chose the channel in which the role of
commission agent was prominent
Paty (2000) applied the techniques of marketing information system the
agricultural marketing He has explained the concept with flow diagram of the
Integrated Agricultural Marketing Information System which is quite useful for its
practical applications
6
Basavaraj et al (2001) have made it very clear in their article that Karnataka
ranks fifth among the oil seed producing states in the country with an area of
1200135 hectares and a production of 945501 tones during 1994-95 Groundnut
sunflower safflower sesamum and castor were the major oil seeds produced in the
state They have made good policy implications in their study
Jayarathnam (2002) in her study on farmers market (Uzhavar Sandhai) in
Tamil Nadu pointed out the problems in cultivation transportation marketing and
pricing of vegetables Even she has given strengths weaknesses opportunities and
threats of vegetable marketing in Uzhavar Sandais of Tamil Nadu
Von Oppen and Gabadambi (2002) in their research paper have observed
market access impact on agricultural productivity lessons from thirteen chapters in
which they have concluded by stating market access and infrastructure are powerful
tools to commercialize agriculture in developing countries They increase aggregate
productivity initially via specialization and at a later stage via intensification
Sherman Roger (2007) undertook a study on market regulation gives readers
the economic intuition to analyze the history of antitrust and regulation diagnose
current corporate strategy and evaluate possible policy recommendations Roger
Sherman grounds modern examples in historical context and develops thought
provoking discussions to motivate readers from many different backgrounds
Introduction to market regulation competition as a market regulator problems for
competition as regulator
14 STATEMENT OF THE PROBLEM
The farming is largely dependent on the efficient marketing of the products
So the governments have to be very particular and watch all the market operations to
remain self-sufficient in food and to produce the goods for export to other countries
In the process of planning though the agriculture was given high priority for its
development but much attention was not given for the improvement of marketing
But in various states the agricultural marketing boards were established with the
objective to remove all the problems of markets and to regulate the markets for
increasing the efficiency in marketing It is found from various previous studies that
7
the regulated markets donrsquot have adequate and scientific grading facilities resulting in
substantial loss to the farmers excess charging of deductions in the form of
weighment commission etc are still prevailing at present in the regulated markets by
the commission agents or traders while making the payments to the farmers Hence
there is a need to undertake a study of the working of regulated markets in relation to
the responses of producer seller and other market functionaries regarding various
aspects of management of regulated markets The present research work attempted to
examine how the organized markets are working and to assess their role in
facilitating an orderly marketing of agricultural produce in the selected APMCs in
Gulbarga division
On the top of it the Gulbarga division is highly backward with all the
indicators of the backwardness which leaves considerable scope for exploitation by
the money lenders-cum-merchants These contrasts in the division call for different
approaches to marketing management and hence the study reveals interesting results
valuable for policy decisions This study of the division of Gulbarga is of immense
benefit for the economic strategy in the marketing of agricultural produce The study
is also aimed at pointing out various malpractices prevailing in the marketing
management lack of infrastructure storage facilities credit availability and effective
central markets this has resulted lack of innovations in agricultural production and
operations Many studies have been carried out to assess the impact of various
malpractices prevailing in marketing management on production of agricultural
produce However no study has been made to assess the role played by the APMCs in
the agricultural marketing in Gulbarga division highlighting whether these have
succeeded in achieving its objective if not what were the causes and what corrective
measures would have helped it in over coming the problems The present study is a
contribution in this direction
15 OBJECTIVES OF THE STUDY
The following are the objectives set for the study
1) To study the role of APMCs in filling the gaps and deficiencies regarding
agricultural marketing in Karnataka
2) To understand the amenities and facilities at the APMCs and to find out
inadequacies prevalent in APMCs in Gulbarga division
8
3) To know the trade practices in the area under consideration and the extent of
benefits to sellers through organized markets
4) To analyze the farmers responses towards regulated markets as well as market
participants
5) To critically examine the over all performance of APMCs and to identify the
area of improvement in the efficiency and also to offer suggestions to develop
an effective marketing system in Gulbarga division
16 RESEARCH METHODOLOGY
The study is mainly based on both primary data and secondary data The study
covers one broad division of the Karnataka state a survey method is adopted ie
through the pre-tested interview schedules addressed to the sample size of farmers and
market functionaries An unscheduled interview is also conducted to the regional
officials of KSAMB project officer and agricultural departments as well as APMCs
officials
Separate schedules were drawn tested and addressed to market committees
agricultural producers and market functionaries The questionnaires administered to
farmers were 250 in total at the rate of approximately 20 from each district market
All the farmers were representative producers for each market categorized on the
basis of the land holding and also marketable surplus brought to the market for sale
The questionnaire administered to the market participants were 150 in total
covering 20 market functionaries from each district in total sample size market
functionaries includes traders (wholesaler and retailer) commission agents exporters
importers processors and hamalies etc
17 SAMPLE DESIGN
A stratified random sampling method was adopted to drawn the final sample
The Gulbarga division consist of Bidar Gulbarga Raichur Koppal and Bellary
district from each district approximately 50 farmers were selected along with this 30
market functionaries from each district were selected
9
18 DATA ANALYSIS
The data collected from both primary and secondary was processed and
reduced to simple tables in order to present the matter clearly The suitable financial
statement analysis techniques were used to draw the correct conclusion Ratio
analysis which is most powerful and universally used technique for the analysis of
financial performance of APMCs in Gulbarga division
Analysis of variance technique is employed to test whether there is any
statistical significance in sales in different markets Apart from this averages and
percentages are used Graphs maps chart and diagrammatic representation of data
was suitably employed to highlight the significance of the data
19 PERIOD OF THE STUDY
The present study covers the period of five years commencing from 2009-10
to 2013-14 The performance of various items such as sales amenities infrastructure
and facilities of APMCs in Gulbarga division was studies for five years
Due to the wide operational activities of APMCs for agricultural marketing the
study period limited to five years to analyze its role in Karnataka with reference to
Gulbarga division
110 LIMITATIONS OF THE STUDY
The study is not completely free from limitations
1) The study is restricted only Gulbarga Division
2) Only five years period is taken for the purpose of the study because of time
constraints
3) The study is depending on the primary data also some of the respondents give
the poor response however every care has been taken to ensure that
authenticity of the data gathered
4) Some of the markets and the sub markets are so small and irresponsible that no
data is available nor any records of arrivals and disposals The records
maintained at the submarkets in the division are probably not available and
non reliable
10
111 CHAPTERISATION OF THE RESEARCH WORK
The whole research study has been presented in seven chapters
The First chapter deals with the introduction need of the study review of
some of important previous literatures statement of the problem
objectives of the study research methodology employed period of the
study limitations of the study techniques used for data analysis as well as
the chaptarisation of the study
The Second chapter deals with the various functions of the APMCs their
activities And also contains in brief about the trade practices preventing at
present in Gulbarga division as well as the data collected from the market
participants through questionnaire were analyzed to know the level of
satisfaction towards the preventing trade practices in selected APMCs in
Gulbarga division
Chapter Third deals with the opinion collected from the farmers towards
the marketing of their produce as well as their attitude towards regulated
market
Chapter Fourth deals with the financial performance and position during
five years of study period
The Fifth chapter deals with the findings suggestion and conclusions
11
CHAPTER-II FUNCTIONS AND TRADE PRACTICES ON APMCs
INTRODUCTION
The functionaries have their own set up They may be individuals partners or
cooperatives who may buy and sell on ready and future basis at a price determined by
forces of supply and demand Each functionary renders some services in the process
of marketing and also earns a varying margin of profit for himself This procedure
makes marketing rather complicated and inflates the price of the produce The nature
of some of the agricultural products eg their bulk form and perishability and their
seasonal availability further add to the complexity of agricultural marketing
Farmers and the various functionaries working in market face numerous
problems in orange fruit trading Farmers either sell their produce to the pre-harvest
contractor before harvest or they sell it in the nearby Agricultural Produce Market
Committee
When the farmers sell their produce in the Agricultural Produce Market
Committee they face following problems
High commission charges
High transportation and loading and unloading charges
No guarantee of remunerative prices
Delayed payment by commission agents
Functionaries working in the market also face various problems The pre-
harvest contractors who purchase the fruits from the farmers face the problems while
dealing with the farmers These problems arise mainly due to
Lapses on the part of farmers in the management of garden resulting in
deterioration of quality of fruits
Problems of natural calamities (theft of fruits losses due to rains pest etc)
Problems of storage facilities (lack of cold storage at local place)
Packing problem (costly packing material and non-availability of skilled
labour)
12
Transport problems (high transportation cost and non-availability of transport
means in time)
Grading problems (non-availability of suitable mechanical graders)
The success or failure of any market depends upon the functionaries existing
in the market Hence the role of functionaries is very important in smooth conduct of
market functions
It is compulsory according to KAPM (R) Act 1966 for every functionary
functioning in the APMCs to take a valid license from the respective APMC where it
is established by paying the necessary fees to the APMCs
Description of Market Functionaries
Following is the list of important functionaries existing in different APMCs of
the study area
i) Commission agents ii) Traders
iii) Retail traders iv) Weighmen
v) Hamals vi) Lady hamals
vii) Transporters viii) Cartmen
ix) Brokers x) Exporters
xi) Importers xii) Processors
xiii) Ginners xiv) Pressors
xv) Crushers xvi) Stockiest
xvii) Warehousemen
It is very essential to understand each of these functionaries and their activities
in detail
i) Commission Agents
Commission agent means a person who in the ordinary course of business
makes or offers to make a purchase or sale of agricultural produce on behalf of the
owner or seller or purchaser of such agricultural produce for commission
13
Commission agents are called so because of the commission they take from
the traders on the total sales as fixed by the government They facilitate farmers to
sell the agricultural produce brought into market yard for a good price at an
appropriate time However as per the bye-laws of market committees some person
cannot act both as commission agent and trader
Commission agents are the connecting link between the farmers and the
buyers When the crop grown by the farmer enters the market it goes to the
systematically channalised commission agents
The agents help the market committee to classify the goods brought by the
farmers and getting them weighed by the specified weighmenThese agents sell the
goods in the market on behalf of farmers and if a farmer does not want to sell his
goods for the time being at the prevailing market price the agents stores the goods in
their godowns and takes the responsibility of preserving the goods These agents not
only help the buyers to get a variety of goods at a place but also help the farmers to
sell their goods effortlessly In the form of market fee the buyer has to pay 1 percent
of the sale price of goods which is collected by the agents and credited to the market
committee Agents also have the responsibility of crediting the total amount of the
sales to the farmers The agents enjoy the right to extract the full amount of the
produce from the buyers
ii) Traders
Trader means the person who buys notified agricultural produce either for
himself or as agent of one or more persons for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of domestic
consumption
The trader will fix a reasonable price for the farmers produce in consolation
with the commission agents and with the consent of the farmers they purchase the
produce and the full amount will be paid to the commission agents Sometimes the
traders buy the produce for their own business purposes or on behalf of big companies
or businessmen Under these circumstances the goods will be sent to the respective
people
14
iii) Retail Traders
Retail trader mean the person who holds in stock at a time not exceeding
fifteen quintals of two or more kinds of agricultural produce together or not
exceeding six quintals of a single agricultural produce
The major function of a retail trader is to undertake retail salesRetail sale
means the sale of notified agricultural produce to a consumer for domestic
consumption not exceeding such quantity as the market committee may by bye laws
or standing orders determine
Usually they buy agricultural produce from the market yard and sell it in retail
market established in cities They assist the small buyers in procuring the agricultural
produce in small quantities for the purpose of domestic use
iv) Weighmen
As their name itself suggests the weighmen supervise the weighment of the
agricultural produce entering into the APMC yard
Certain produce such as cotton get weighted as soon as they enter the market
yard while the rest of the produce are weighted after sales Under these
circumstances it becomes the duty of the weighmen to safeguard the interest of the
farmers and to see that there is no discrepancy in weighing their goods Day to day
report of the produce weighed along with their weighment slip has to be filed with the
market committee by the weighmen It is the duty of these weighmen to visit the
various shops in the market yard and to supervise the weighing of different goods
v) Hamals
In order to facilitate the smooth functioning of the various activities of the
marketing committee hamals perform a very special duty As these people perform a
strenuous physical work they are called hamals
The work of the hamals start with the produce entering into the market yard
and ends with the produce going out of the yard When the farmer brings his produce
15
into the market yard either by a cart tractor or by lorry the hamals unload the
produce at the commission agents shops If the produce is cotton the hamals get it
weighted immediately after unloading and if the produce are other than cotton they
are stored in the godowns of the commission agents On the day of the tender or
auction the samples of the various produce are kept aside by the hamals who help the
traders to fix a reasonable price for the produce After the completion of business
deals except cotton all other produce are weighed and loaded into the vehicles of the
traders To perform these various tasks the hamals charge the amount fixed by the
APMC and get it from the concerned parties
vi) Lady Hamals
The female hamals who are working in APMCs by procuring a valid license
are known as lady hamals Along with the male hamals lady hamals are also found
in some of the APMCs like Hubli Gadag and Ranebennur They perform activities
like screening cleaning assisting males hamals in weighment keeping samples for
tender etc
vii) Transporters
In the preview of market committee the people who help to transport the
goods from one place to another are called transporters The tractors and truckers are
performing the duties of transporters Transporters are considered to be the important
market functionaries working in APMC yard These peoples are helping the farmers
to bring the agricultural produce from the place of production or agricultural yard to
market yard Existence of large number of transporters in the market yard helps for
the smooth functioning of marketing activities
viii) Cartmen
Along with the modern transportation facilities such as trucks and autos still
cartmens are playing greater role for the smooth functioning of market activities
Loading and unloading of bags from trucks to godown and vice-versa are performing
by cartmens When the agricultural produce need to transfer from one place to another
place within the market yard is done by cartmen
16
ix) Brokers
Brokers are the agents middle menrsquos in the market working as link between
farmers and buyers In many ways brokers are assisting the farmers by giving
valuable advises with regard to financing of selling to get better prices At the same
time they also help by supplying bulk agriculture produce to buyer
x) Exporters
Exporter means the person other than a producer who exports goods or cause
goods to be exported on onesrsquo own account or as agent of another person from the
market area outside such area for the purpose of selling processing manufacturing or
for any other purpose except for the purpose of onersquos own domestic consumption
The meaning of exporter shall not include a public carrier
At times when there is a bumper crop the poor farmer has to incur heavy
losses During such moments of crisis the exporters come into the scene and purchase
the crops from the farmers and export the same to some other markets for sale or
processing This brings about a balance between the demand and supply and saves the
farmers from the crisis
xi) Importers
Importer means the person other than a producer who imports goods or causes
goods to be imported one onersquos own account or as agent of another person from the
outside market area with in the such area for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of onersquos own domestic
consumption The definition of importer shall not include a public carrier
Function of Importers
As and when there is scarcity of any goods in the market and there is a lot of
demand for the same and considering the overall demand and supply of the market
the importers import the goods from different markets and sell them in the local
market
17
xii) Processors
The goods purchased at the market yard have to undergo different stages and
processes to finally reach the customer In order to facilitate this work different people
perform their duties These people are called processors viz gins press
decorticators oil mills flour mills and dal mills etc these different industries perform
their own essential duties
These industrialists perform their duties to see that the goods available in the
market in their crude form are made ready for use After having purchased the goods
they make them ready for use with the help of these processors On certain occasions
the processors themselves purchase the goods process them and self them when they
are ready for use These processors also should have the license from the market
committee
xiii) Ginners
They are the licensed functionaries who are performing ginning activities of
cotton by procuring valid license from APMCs The purchasers of cotton want to
convert their unginned cotton into ginned cotton In such case ginners will help them
to gin their cotton and separate pure cotton from cotton seeds
xiv) Pressors
Once the cotton is ginned it will come to pressors for conversion into cotton
bales where licensed pressors undertake the work of pressing In order to transport
the cotton from the place of growing and marketing to textile mills at different places
they have to be systematically packed in compact form of cotton bails The ginned
cotton will come to press of the pressors where they press and pack it properly into
cotton bales
xv) Crushers
There are certain licensed crushers who perform the activity of crushing oils
seeds into oil The traders who buy oil seeds from the market wants to convert it into
oil for further marketing and transportation In such case crushers situated near the
various market yards will help them to get pure oil by getting their seeds crushed and
screened at their crushing units
18
xvi) Stockiest
The people who purchase the produce at the market yard and store it for some
time and then sell it are called stockiest The stockiest also should have license
When all the farmers bring their produce to the market yard there will be glut in the
market supply and deficiency of the purchasers which cause the prices to come down
Under these circumstances to protect the farmer from the loss the stockiest purchases
the goods at the market yard and stock it in their storehouse to sell them when there is
a demand for that commodity
xvii) Warehousemen
The farmers are provided with the warehouses to store the produce which
come under the jurisdiction of the market committee ldquoWarehouserdquo means any
building structure or other protected enclosure which is or may be used for the
purpose of storing agricultural produce being goods on behalf of the depositors but
does not include cloak rooms attached to hotels railway stations the premises of
other public carriers and the life The person who supervises the warehouse activities
is called warehouseman
A farmer may not want to sell his produce because of the fall in the prices or
may want to store the goods for the purpose of sowing but does not have enough
space to store Having realized this problem of the farmers the government has
provided the warehouses in all the important market yards so that the farmers can
store their goods as long as they want to
The main task of the warehousemen is to stock the goods of the farmers
properly by sprinkling pesticides and protecting them from the insects and pests and
to return the goods of the farmers to them when they ask for it While performing this
task the warehousemen charges certain amount which is specified by the
government The farmer has to pay the amount towards stocking of his goods
In this way for the smooth sailing of the market committees activities each
and every market functionary has to perform his duties systemically
19
Market Functionaries in Selected Market An Overview
In all the selected APMC for the present research work ie 15 APMC there
were 26194 market functionaries operating in various markets of this division The
district wise and sample wise break up of the same is revealed in the tables from 21
to 25
As on the 2007-98 the total of local market participant in three APMC taken
for the present research is Gulbarga-5099 Bidar-2790 Koppal-5234 Raichur-7182
and Bellary-5889 There are 2046 lsquoArsquo class traders 1786 lsquoBrsquo class traders 1410 lsquoCrsquo
class traders 6920 lsquoDrsquo class traders 2794 commission agents 1496 exporters 1526
importers 676 stockiest 358 processors 172 crushers 203 ginners 28 pressers 29
warehousemen and 10775 hamals operating in the various markets in the Gulbarga
division The highest number of traders commission agents and other functionaries
are in Raichur district Bellary district followed by Gulbarga district being nearly 13
of the total number in the division
Market Functionaries at Selected APMC in Gulbarga District
Gulbarga APMC is a very big APMC in the Gulbarga district as compared
with other APMC in the same district Table 41 explains the total market
functionaries working in the not only Gulbarga APMC but also APMC Shorapur and
APMC Shahapur It is far as size is considered APMC Shahapur is a small APMC in
the Gulbarga district
The below Table 21 reveals that the total number of market functionaries
which was 3536 in 2009-10 in Gulbarga APMC has increased by around 124 percent
in 2013-14 It is evident from the same that coolies traders exporters importers and
processors holding maximum share in total market functionaries in the total
participants in the market
In case of the APMC Shorapur the total position of market participant was
gradually increased during first three years ie from 576 in 2009-10 to 845 in 2010-
11 and 910 in 2011-12 but it decreased to 845 in 2012-13 Again coolies and traders
were become the major portion in total market participants followed by commission
agents and retailers
20
Table-21
Licensed Market Participants in Selected APMCs of Gulbarga District
Sl No Market Participant
APMC Gulbarga APMC Shorapur APMC Shahapur
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 407 419 418 405 426 60 203 254 178 180 37 60 51 46 128
2 Commission agents 227 235 234 213 218 45 58 64 58 69 17 17 17 17 22
3 Exporters 419 424 424 411 416 10 32 11 03 03 28 35 32 25 130
4 Importers 405 411 409 391 396 08 24 09 02 02 25 30 38 25 126
5 Retailers 105 108 108 94 106 25 76 26 02 02 20 32 30 23 51
6 Processors 350 358 356 341 348 01 02 02 01 01 01 01 01 01 10
7 Ginners 14 15 15 15 16 01 02 01 01 01 01 01 01 01 05
8 Pressers 04 04 04 04 04 03 04 02 01 01 02 02 02 02 05
9 Stockiest 28 30 30 25 28 14 42 16 01 01 10 15 12 10 15
10 Weighmen 75 78 77 75 75 13 14 14 14 14 02 02 02 02 05
11 Crushers 15 18 18 18 18 03 05 04 01 01 02 02 02 02 06
12 Warehousemen 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01
13 Coolies 1444 1545 1540 1476 1485 378 373 496 571 560 75 92 99 99 110
14 Transporters 42 54 52 41 43 08 09 10 11 11 28 33 33 18 58
Total 3536 3700 3686 3510 3580 576 845 910 845 847 249 323 321 272 672 Source Annual reports of APMC for 2009-10 to 2013-14
21
The situation in APMC Shahapur was not much different when it compared to
APMC Gulbarga and APMC Shorapur A steady growth in total market participants
was registered in 2013-14 ie 672 with annual aggregate growth of 3398 percent
during the period under research Traders commission agents and coolies were
acquired majority position in total market functionaries
The below Table 22 depicts the total licensed market participants operating in
the selected APMCs of Bidar district A keen observation of year wise growth in the
various categories of market participants shows that coolies are steadily increased in
APMC Bidar from 68 in 2009-10 to 140 in 2013-14 In APMC Bhalki it was from 49
in 2009-10 to 56 and in APMC Aurad from 19 to 34 during the same period
It is interesting to note in Bidar APMC that stockiest were the dominant
portion in total market functionaries followed by experts commission agents and
importers The same situation was also found in other five APMCs ie Bhalki and
Aurad which are taken as sample from the Bidar district The percentage of stockiest
as on 2013-14 in total market participant was in Bidar APMC 1694 Bhalki APMC
ndash 1850 and 1859 in APMC Aurad
22
Table-22
Licensed Market Participants in Selected APMCs of Bidar District
Sl No
Market Participant
APMC Bidar APMC Bhalki APMC Aurad
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 171 182 195 186 196 151 153 146 156 160 110 115 128 138 142
2 Commission agents
145 151 180 175 190 136 139 145 150 156 102 112 115 128 132
3 Exporters 150 162 175 12 172 139 141 148 151 155 89 95 98 108 112
4 Importers 141 145 161 152 162 120 122 126 120 122 85 92 95 98 104
5 Retailers 10 15 28 25 35 05 06 09 10 10 03 04 06 08 08
6 Processors 03 04 04 03 04 02 02 02 02 02 01 01 01 01 01
7 Ginners 02 02 02 02 02 01 01 01 01 01 01 01 01 01 01
8 Pressers 01 01 01 01 01 01 01 01 02 01 01 01 01 01 01
9 Stockiest 193 198 220 205 215 150 151 154 155 161 106 112 115 119 123
10 Weighmen 33 42 55 52 65 23 24 26 28 30 13 15 21 28 30
11 Crushers 02 02 03 02 03 01 01 01 01 01 01 01 01 01 01
12 Warehousemen 01 01 01 01 02 01 01 01 01 01 01 01 01 01 01
13 Coolies 68 70 110 110 140 49 50 52 57 56 19 24 30 35 37
14 Transporters 10 05 15 24 23 08 08 09 13 13 04 06 08 12 17
Total 930 980 1150 1100 1210 787 800 821 846 870 536 580 621 687 710 Source Annual reports of APMC for 2009-10 to 2013-14
23
The overall growth in the market participants in Bidar district from the same
table reveals that the annual aggregate growth in APMC Bidar was highest ie 602
percent over the previous year it was 210 percent in APMC Bhalki and 649 percent
in APMC Aurad This clearly indicates that APMC Aurad is fast growing APMC in
terms of market functionaries followed by APMC Bidar and APMC Bhalki
A cursory look at the below Table 43 reveals that coolies traders
commission agents and importers are the major category of market functionaries
operating in the selected APMCs in the Koppal district during five years study period
ie 2009-10 to 2013-14 are presented in Table 23 The total number of market
functionaries in APMC Koppal which was 1054 in 2009-10 increased to 1186 in
2013-14 with percentage growth of 1188 during period under study In case of
APMC Gangavati it was 1034 percent negative and in APMC Kustagi positive
growth of 1752 percent during the same period The number of traders increased
marginally during the study period but the number of commission agents was
marginally decreased in all the three APMC selected from the Koppal district as
sample the other market functionaries increased in large numbers thus making the
proportion at commission agents to drop A broad view of licensed market
functionaries in selected APMC in Koppal depicts that APMC Gangavati was leading
APMC in terms of total market participants followed by APMC Koppal and APMC
Kustagi during five years plan period
24
Table-23
Licensed Market Participants in Selected APMCs of Koppal District
Sl No Market Participant
APMC Koppal APMC Gangavati APMC Kustagi
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 115 108 127 116 144 518 480 456 479 497 106 95 103 63 88
2 Commission agents 102 107 90 98 107 468 417 360 380 387 141 139 142 124 153
3 Exporters 95 123 92 115 105 511 480 455 489 495 90 77 80 46 65
4 Importers 123 146 120 122 103 598 479 455 488 496 17 12 13 08 64
5 Retailers 15 22 14 15 14 124 98 72 90 87 11 11 14 11 -
6 Processors 04 05 04 05 06 95 91 87 90 97 02 02 02 02 02
7 Ginners 02 02 02 02 02 - 02 - - - - - - - -
8 Pressers 02 02 02 02 02 - - - - - - - - - -
9 Stockiest 60 179 58 70 65 518 480 453 488 495 52 52 63 - -
10 Weighmen 10 15 09 08 10 03 03 04 04 03 06 06 06 06 06
11 Crushers 05 11 05 06 08 04 01 02 02 02 03 03 02 02 -
12 Warehousemen 02 04 02 03 04 02 02 02 02 02 01 01 01 01 01
13 Coolies 452 502 450 544 535 553 370 324 393 417 372 363 345 273 468
14 Transporters 067 118 59 33 36 26 13 16 15 14 04 05 03 02 02
15 Temporary purchasers - - - - - - - - - - 45 41 - - 150
Total 1054 1344 1034 1139 1186 3423 3001 2784 2995 3069 850 807 774 538 999 Source Annual reports of APMC for 2009-10 to 2013-14
25
Table 24 shows the year wise actual market participants who were licensed to
operate in the market yard during 2009-10 to 2013-14 in the selected APMC for the
sample in the Raichur district The total market functionaries in the APMC Raichur
decreased during the second year ie 2010-11 from 3622 to 3407 The average
decrease during the research period was 228 percent This was due to decrease in the
traders as well as coolies
When we observed market functionaries cooperation in the APMC Sindnoor
if was little different situation when it compared to APMC Raichur The total market
participants were shown an increasing trend except in the year 2010-11 it was
decreased from 2193 in 2009-10 to 1852 The overall growth in the market
functionaries during five years research period was 2782 percent which was a good
sign compared to APMC Raichur This growth indicates the growth of agriculture
marketing in APMC Sindnoor yard From the same table it can also be seen that
during 2010-11 and 2011-12 the total licensed market participants in APMC
Lingasugur were decreased but again during last two years of study period it shown
upward trend From these above analysis it can be said that APMC Sindnoor and
APMC Lingasugur were performed better during the plan period as compared to
APMC Raichur
26
Table-24
Licensed Market Participants in Selected APMCs of Raichur District
Sl No Market Participant
APMC Raichur APMC Sindnoor APMC Lingasuguar
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 409 422 431 403 415 312 260 304 305 304 104 99 88 106 115
2 Commission agents 216 214 222 224 218 317 265 280 288 279 83 92 81 101 100
3 Exporters 382 381 401 416 401 288 256 301 308 307 97 77 71 103 105
4 Importers 377 392 420 400 410 288 256 273 276 269 77 79 71 103 110
5 Retailers 22 23 206 - - NA NA NA NA NA 20 18 18 16 16
6 Processors 57 55 63 65 401 14 17 20 19 17 05 06 06 04 04
7 Ginners 10 16 16 15 16 01 01 01 01 - - - - - -
8 Pressers 05 05 04 03 04 01 01 01 01 01 05 04 04 04 04
9 Stockiest 388 377 398 409 19 289 257 300 308 293 75 94 81 106 110
10 Weighmen 89 89 87 87 87 16 16 16 15 14 14 14 14 14 14
11 Crushers 18 26 24 20 19 02 02 01 01 - - - - - -
12 Warehousemen 02 02 02 02 02 07 05 06 07 06 01 01 01 01 01
13 Coolies 1591 1357 1354 1434 1478 634 516 856 1286 1313 40 02 08 Nil 79
14 Transporters 46 48 44 42 50 24 - - - - 10 08 08 04 Nil
Total 3622 3407 3672 3520 3520 2193 1852 2359 2815 2803 531 494 451 562 859 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
27
Table 25 indicates the trends in the growth of total licensed market
functionaries who were operating during the period under consideration in the
selected APMCs in the Bellary district A comparative study of three APMCs selected
in Bellary district shown in the table 25 indicates that APMC Bellary has the largest
market functionary followed by APMC Hospet and APMC Siraguppa The total
market participants in APMC Bellary was ranged in between 3235 to 3865 in APMC
Hospet it was between 738 to 1481 and in APMC Siraguppa between 659 to 1007
The study of individual market participants in total market participants in selected
APMCs in Bellary district was also clearly shown that coolies were occupied the
major percentage in total followed by exporters importers and traders during the plan
period From the above analysis it was clear to conclude that district APMC ie
Bellary APMC was fully developing in terms of increase in market functionaries but
effort is needed from the officials of APMC in Hospet and Siraguppa to take some
measures to increase the market functionaries for the smooth running of marketing
activities in the yard
28
Table-25
Licensed Market Participants in Selected APMCs of Bellary District
Sl No Market Participant
APMC Bellary APMC Hospet APMC Siraguppa
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 435 441 538 462 485 121 123 136 150 141 115 120 146 176 198
2 Commission agents 352 368 448 382 371 75 77 84 103 88 10 10 12 09 08
3 Exporters 412 437 531 452 484 121 123 136 150 141 120 120 147 177 198
4 Importers 415 430 527 442 473 121 123 136 150 141 120 120 147 177 198
5 Retailers 102 115 101 120 95 76 74 93 95 95 - - - - -
6 Processors 45 45 47 45 55 26 24 24 23 24 42 43 46 45 59
7 Ginners 26 27 29 25 17 - - 27 24 24 - - - - -
8 Pressers 20 20 22 20 09 NA NA NA NA NA - - - - -
9 Stockiest 420 430 518 421 463 120 123 136 150 141 130 134 159 178 198
10 Weighmen 16 16 16 16 16 03 03 04 04 04 - - - - -
11 Crushers 26 26 26 25 18 04 02 02 02 02 - - - - -
12 Warehousemen 01 01 01 01 01 02 02 02 02 02 02 02 03 03 03
13 Coolies 920 902 1018 1213 910 262 173 373 429 668 120 128 237 145 145
14 Transporters 45 48 43 02 04 14 14 12 14 10 0 0 0 0 0
Total 3235 3306 3865 3626 3401 945 738 1165 1193 1481 659 677 897 910 1007 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
29
Sample size
The main refrain of this part of research study is the detailed analysis of the
primary data collected from the respondents ie market participants from APMC
about marketing services provided by the APMCs in five districts of Gulbarga
division Three APMCs from each district on the basis their performance ie best
performer average performer and low performer taken for the study The details of
the responses obtained on various services offered at APMCs yard and their level of
satisfaction towards it in the light of the statistical data obtained through the
questionnaires addressed to market participants such as commission agents hamals
traders graders etc are shown in the following part
The deep analysis of the responses from the sample size of market participants
has provided good insight into the dimensions of the marketing services and the
quality of those services rendered to the farmers seller of agriculture produce The
analysis has been done with necessary theoretical backs drops of each of the services
related to the marketing activities in the APMC yard
Table-26
District Wise Sample Size of Market Participants
Name of District Frequency Percentage Cumulative Percentage
Bidar 25 2000 2000
Gulbarga 25 2000 4000
Koppal 25 2000 6000
Raichur 25 2000 8000
Bellary 25 2000 10000
Total 125 10000 -
Source Field survey
Table 26 provides the information about the district wise frequency of sample
chosen for the present study The total sample for the study was 125 market
participants Gulbarga division constitutes of five districts from each districts 25
respondents were selected
30
Profile of Market Participant
An attempt has also been made in this part to study the socio-economic and
demographic factors of the market participants in order to examine the significant
relationship if any exist in between their profile and performance
Age Group
The age composition of the various market participants covered in the study
areas reveals some significant trends The details of the age of respondents of district
wise are provided in the following table
Table-27
Age Wise Classification of Market Participant
Sl No Name of APMC
Age of Respondent (in years) Total Below
20 21 ndash 40 41 ndash 60 60 and
above 1 Gulbarga - 18
(720) 6
(240) 01
(40) 25
(200) 2 Bidar - 18
(720) 6
(240) 01
(40) 25
(200) 3 Koppal - 18
(720) 5
(200) 01
(40) 25
(200) 4 Raichur - 18
(720) 6
(240) 02
(40) 25
(200) 5 Bellary - 18
(720) 7
(280) 01
(40) 25
(200) Total 000
(000) 90
(720) 29
(232) 06
(46) 125
(100) Source Field study Note Figures in brackets indicates percentage to total It is evident from the Table 27 that more than 34th of the total respondents
from market participants ie 90 belonged to the age group of 21- 40 years 232
of respondents belonged to the age group of 4160 years while smaller number of ie
of respondents which constitutes 48 of total respondents are in the age group of 61
years and above It is revealing to note that no number respondents Out of total 125
respondents belonged to below 20 years of age group
31
Status of Educational Qualification
The data collected through personal interview with regarding education
qualification of all market participants operating in the APMC in Gulbarga division
has provided Some useful details about their educational status which is considered
to be most significant factor in discharging their duties and responsibilities more
efficiently and effectively The detail of educational qualifications of sample group of
market participants is shown in below Table 28
Table-28
Qualification Wise Classification of Market Participant
Sl No Name of APMC
Educational Qualification Total Below
Primary Secondary Degree PG and
others
1 Gulbarga 01 (40)
11 (440)
03 (120)
10 (400)
25 (200)
2 Bidar 01 (40)
09 (360)
03 (120)
12 (480)
25 (200)
3 Koppal 01 (40)
10 (400)
03 (120)
11 (440)
25 (200)
4 Raichur 01 (40)
09 (360)
02 (80)
13 (520)
25 (200)
5 Bellary 02 (80)
11 (440)
04 (160)
08 (320)
25 (200)
Total 06 (48)
50 (400)
15 (120)
54 (432)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total It is learnt from the above Table 28 that 432 of respondents were post
graduates and other technical qualifications such ITI and other diploma qualifications
40 of the sample respondents were qualified upto higher secondary followed 12 of
respondents were graduates Only 6 were belonged to the primary category It is
however significant to note that higher secondary education and other technical
education qualification holders were majority in total sample size ie 40 to 432
as compared to degree holders ie only 12 of sample size
32
Religious Composition of Sample
Religion of respondents is more dominating factor in occupation for their
livelihood Researcher has also tried to accumulate the data about the religion of
respondents through interview schedule In the present study respondents religion was
broadly classified in 4 category ie Hindu Muslim Christian and others
Table-29
Religion Wise Classification of Marketing Participant
Sl No Name of APMC
Religion Total
Hindu Muslim Christian Others
1 Gulbarga 22 (880)
02 (80)
01 (40)
- 25 (200)
2 Bidar 22 (880)
03 (120)
- - 25 (200)
3 Koppal 21 (840)
04 (160)
- - 25 (200)
4 Raichur 21 (840)
04 (160)
- - 25 (200)
5 Bellary 23 (920)
01 (40)
01 (40)
- 25 (200)
Total 109 (872)
14 (172)
02 (060)
00 (000)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total
From the above Table 29 it is clear that majority ie 872 of total sample
size operating in study area of Gulbarga division belonged to Hindu religion followed
by Muslim religion ie 112 of sample group This is in conformity with the pre
dominantly Hindu dominant population composition of the area as compared to
Muslim religion If can be interpreted from the above that sample size comprised of
minor number ie 160 of respondents belonged to the Christian religion
33
NATURE OF PARTICIPANTS
The success or failure of any market depends upon the functionaries existing
in the market Hence the active participation of all types of functionaries is very
important in smooth conduct of market functions In order to facilitate for smooth
marketing of agriculture commodities each and every market is provided with
different market functionaries It is compulsory according to KAPM (R) Act 1966 for
every functionary functioning in the APMCs to take a valid licence from respective
APMC by paying necessary fees An analytical account of the market functionaries
operating in different selected markets are given in Table 210
Table-210
Nature of Participant
Sl No
Name of participant
Name of APMC Total
Gulbarga Bidar Koppal Raichur Bellary
1 Commission Agent
11
09
08
10
12
50 (400)
2 Hamalas 04
03
04 05 04 20 (160)
3 Trader 07 08 08 06 06 35 (2800)
4 Grader 01 01 01 01 01 5 (400)
5 Processor - 01 01 01 - 3 (240)
6 Broker 01 03 03 02 01 10 (80)
7 Others 01 - - - 01 02 (160)
Total 25 (200)
25 (200)
25 (200)
25 (200)
25 (200)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
A cursory look at the Table 210 reveals that commission agents traders and
hamals are the major market functionaries in the market Out of total 125 participants
34
respondents 40 percent were playing the role of commission agents 28 percent of
them were acting as traders and hamals constitute 16 percent The percentage of
broker grader and processor in selected sample size was 8 4 percent and 24
percent respectively The above figures shows whose role very important in market
place
Experience in Market Yard
Market participants experience in the market yard will helps to understand the
level of their satisfaction with regard to the economic benefit from the job and their
attitude towards it Satisfied market participant in APMC will strict to a single job for
a long period The details of their years of experience in market yard in the area
under study of sample size is given in the below table
Table-211
Years of Experience in Market Yard
Sl No Particulars
Experience in Market Yard
Below 10 11 ndash 20 21 ndash 30 30 and above Total
1 Gulbarga 02 18 03 02 25 (200)
2 Bidar 01 17 04 02 25 (200)
3 Koppal 01 21 03 - 25 (200)
4 Raichur 02 18 04 01 25 (200)
5 Bellary 02 22 01 01 25 (200)
Total 8 (64)
96 (768)
15 (120)
6 (48)
125 (10000)
Source Field survey Note Figures in brackets indicates percentage to total
Table 211 exhibits the experience of the respondents in the market yard of
125 market yard of 125 market participant respondents Out of total sample size
768 are laying in between 11-20 years of experience in the market yard 15
35
respondents which constitute 12 of sample group had an experience of 21-30 years
in the market yard Below 10 years and above 30 years of experience in market yard
of respondents were 64 and 48 of sample respondents Finally to conclude about
the market yard experience old market participant were high in number as compared
to the new market participants ie less than 10 years of experience in market yard
Motivational Factors ndash Sample Study
The word lsquomotivationrsquo comes from the Latin meaning ldquoTo moverdquo it generally
means an inner or outer drive to meet a need or a good This is the impelling force
which draws the human from his house and inspires her to start something on his own
The variables comprise of heredity more profitable uncertain induced
unemployment and others Accordingly by incorporating the above the researcher
has asked the respondents to rank the motives of their present profession Their
responses were presented in the following table
Table-212
Motivated Factors of Profession
Sl No Particulars
Motivated Factors Total
Heredity More Profitable
Uncertain Induced
Un Employment Others
1 Gulbarga 22 - 02 01 - 25 (200)
2 Bidar 16 03 06 - - 25 (200)
3 Koppal 18 03 03 01 - 25 (200)
4 Raichur 22 01 02 - - 25 (200)
5 Bellary 23 01 01 - - 25 (200)
Total 101 (808)
8 (64)
14 (112)
2 (16)
00 (00)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total It is evident from the Table 212 that heredity was the most dominant motive
with 8080 of sample size This group distinctively falls under ldquopushrdquo category of
profession who resorted to this profession because of same compulsions This
compulsion cited were death of Kartha to supplement meager income at home etc
36
This way followed by uncertain induced with a percentage of 1120 of
sample size The respondents quoted few reasons for choosing their profession such
as poverty no alternative jobs to do and lower education etc 64 of total
respondents opinioned that they were chosen this profession because of more
profitable
Satisfaction with Marketing Practices
In the process of marketing there are three dimensions these are time space
and form The marketing function is having a one or the combination of these three
dimensions While performing these functions the different functionaries are rewarded
for their services at every level The marketing cost the market margins and the
competition in the market is different to product to product Similarly the market
functions very from product to product for example the marketing of grains are
having different functions than that of the marketing of vegetables Respondentrsquos
satisfaction level towards these marketing practices are shown in below table
Table-213
Satisfaction of Marketing Practices
Sl No Particulars Level of Satisfaction
Total Satisfied Unsatisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 24 (960)
01 (40)
25 (200)
4 Raichur 24 (960)
01 (40)
25 (200)
5 Bellary 23 (920)
02 (80)
25 (200)
Total 118 (944)
7 (56)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
37
Table 213 shows the district wise market participant respondents level of
satisfaction towards marketing practices It could be seen from the above table that
more than 94 of respondents are of the opinion that the quality of marketing
practices practiced in the APMC yard is fully satisfied and rest of respondents ie 56
percent were fully expressed that the marketing practices are unsatisfied
The level of satisfaction in Gulbarga district APMC Koppal district APMC
and Raichur district APMC was above 96 but it was 9200 in Bidar and Bellary
From the above opinion and analysis of responses it can be concluded that few steps
are necessary to take by APMCs to make 100 satisfaction in for marketing
practices
Farmerrsquos Activeness
Market participants were interviewed with an intension to extract their level of
satisfaction in the farmerrsquos activeness in the APMC yard in selected units
Respondents are given two option regarding farmers active involvement in marketing
of their produce ie satisfied or unsatisfied The results of the investigation are
presented in Table 214
Table-214
Satisfaction with Farmers Activeness in APMC
Sl No Particulars Satisfaction with Farmers
Total Satisfied Unsatisfied
1 Bidar 13 (520)
12 (480)
25 (200)
2 Gulbarga 18 (720)
07 (280)
25 (200)
3 Koppal 10 (400)
15 (600)
25 (200)
4 Bellary 21 (840)
04 (160)
25 (200)
5 Raichur 15 (600)
10 (400)
25 (200)
Total 77 (616)
48 (384)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
38
Table 214 gives the respondents level of satisfaction with the farmerrsquos
activeness in marketing activities in APMC yard More than 61 of market
participant respondents fully satisfied with farmers activeness but 38 of them are
fully unsatisfied and suggested to participate actively in marketing activities Few
number of farmers physically visiting and actively involved during the sale of their
produce An awareness programme from APMC is very necessary to help farmers and
to motivate them to involve in marketing activities
Facilities at APMC
Basic infrastructure at APMC yard is very much essential for smooth
functioning of marketing activities The selected APMC for present study has
provided necessary facilities such as water canteen communication transport and
banking and finance etc to the market participants But all the participants
respondents are unable to get those facilities The percentage of functionary
respondents who have availed these facilities and those who have deprived of the
facilities are given in the Table 215
Table-215
Facilities at the APMC Yard
Sl No
Facilities at APMC
Name of District Total Gulbarga Bidar Koppal Raichur Bellary 1 Water 20
(1886) 19
(1792) 22
(2075) 23
(2169) 22
(2075) 106
(848) 2 Canteen 14
(2121) 13
(1969) 12
(1818) 11
(1667) 16
(2424) 66
(528) 3 Communication 24
(2264) 21
(1981) 20
(1886) 22
(2075) 19
(1792) 106
(848) 4 Market
information 22
(2075) 20
(1886) 19
(1792) 24
(2264) 21
(1981) 106
(848) 5 Transport - - - - - - 6 Health and
sanitation 11
(2291) 09
(1875) 08
(1667) 10
(2083) 10
(2083) 48
(384) 7 Banking and
Finance - - - - - -
8 Others - - - - - - Total 125
(1000) Source Field survey Note Figures in brackets indicates percentage to total
39
A glance over the above Table 215 reveals the various facilities provided at
APMC yard in selected sample size More than 84 of functionary respondents
opinioned positively about water facility 52 of them about canteen 38 about
health and sanitation etc It is to be noted here that no single APMC has provided
transportation facilities and banking and finance which is very vital in marketing
Satisfaction about Facilities
APMCs have provided several infrastructure facilities to market participants
These facilities provided by APMC to market functionaries helps them to provide
good services to farmers efficiently
Table-216
Level of Satisfaction about the Facilities
Sl No Name of the District
Level of Satisfaction Total
Fully Satisfied Not Satisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 23 (920)
02 (80)
25 (200)
4 Raichur 21 (840)
04 (160)
25 (200)
5 Bellary 21 (840)
04 (160)
25 (200)
Total 112 (896)
13 (104)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
It is observed from the Table 216 that a large number of market participants
(ie 896) were fully satisfied with the infrastructure facilities available inside the
market yard Nearly 104 percent expressed their dissatisfaction over the facilities
provided by APMCs Gulbarga APMC was considered to be better (9600) in
facilities as compared with other four districts selected for the present study Raichur
40
and Bellary districts APMCs had needed more important in terms of facility to satisfy
market functionaries Market participants are directed to fallow the specified
techniques These techniques are prescribed by the Indian standards institute The
techniques suggests to use proper ingredients in specified proportions The graded
processed goods bear ISI label indicating that it contained the graded and good quality
if the product The selected market participants were also asked about the quality of
marketing functions The analysis of Table 217 revel that more than 76 of
respondents had satisfied the quality of marketing function in five districts whereas
more than 20 of them not satisfied with quality of services in the market yard
41
Table-217
Level of Satisfaction with Quality of Marketing Services
Quality of Services
Gulbarga Bidar Koppal Racihur Bellary Total Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Assembling 19 06 19 6 21 4 19 06 19 06 125
(100) Processing 22 03 22 03 23 02 22 03 22 03 125
(100) Grading 15 10 16 09 14 11 15 10 15 10 125
(100) Storing - 25 - 25 - 25 - 25 - 25 125
(100) Weighment 12 14 10 13 11 12 14 14 13 15 125
(100) Banking and finance
04 21 03 22 02 23 04 21 04 21 125 (100)
Rest house 02 23 01 24 02 23 02 23 03 22 125 (100)
Insurance - 25 - 25 - 25 - 25 - 25 125 (100)
Source Field survey Note Figures in brackets indicates percentage to total
42
CHAPTER-III CUSTOMER PERCEPTION ABOUT MARKETING
MANAGEMENT OF APMC IN GULBARGA DIVISION
INTRODUCTION
In keeping with very little of the research the survey is conducted to
supplement the evaluation through the primary data These attempts bring out the
basic problems and difficulties if any in the implementation of the APMCs Act
through state agricultural marketing board Different types of schedules are used for
evaluating the working of the APMC act However the agricultural marketing is
clearing a midwife between agricultural production and agricultural marketing on the
one hand and the former beneficiaries on the other hand But the farmers might have
direct link what so ever with marketing agencies therefore a schedule for the farmers
which has been different from what we have used for market participants As such the
marketing participant of the agriculture market are the main pillars for
implementation of the schedule The questionnaire has been personally given to
farmers of the sample groups and the researcher had a detailed personal discussion
with the market participants with regard to working or agriculture marketing The
main focus of the study was evaluation of management of agricultural produce
marketing committees in Karnataka from the point of farmers therefore our survey
schedule covers the background of farmers and market functionaries such as age
education religion family background source of incomes land holdings of both
farmers and market participant were collected Some of these aspects have been
discussed in the following paragraphs
43
Table-31
District Wise Selection of Farmers Sample Size
Name of the District Frequency Percentage Cumulative
Percentage
Gulbarga 50 200 200
Bidar 47 188 388
Koppal 49 196 584
Raichur 52 208 792
Bellary 52 208 1000
Total 250 1000 -
Source Field survey
Table 35 provides the information about the district wise selection of member
farmers which have been chosen for the present study The total sample size for the
study was 250 farmers Raichur and Bellary district form 2080 percent each and
Gulbarga district form 2000 percent and Bidar and Koppal district 188 percent and
196 respectively The member of farmers selected for the purpose of was equally
distributed to all five districts with little change in percentage The reason for that is to
identify the district among the five districts where APMCs are working upto the
aspirants of farmers
44
Table-32
Age Wise Classification of Agriculturist
APMCs District
Age in Years Total
Below 20 20 ndash 40 41 ndash 60 61 and above
Bidar 01 22 21 03 47 (186)
Gulbarga 01 23 23 03 50 (200)
Koppal 01 23 22 03 49 (196)
Raichur 01 24 24 03 52 (208)
Bellary 02 24 24 02 52 (208)
Total 06 (240)
116 (4640)
114 (4560)
14 (56)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It could be found from the Table 32 that 4640 percent of farmer respondents
were aged between 20-40 years 45-60 percent in between 41-60 years and 5-6
percent above 61 years Only 240 percent of total sample size were aged below 20
years The above figures about the age of agriculturists cleared that young and middle
aged formers are more actively participated in the APMC yard when compared to old
age farmers
Educational Qualification of Farmers
The level of the education of the farmers is one of the most important factor
which governs many more factors such as deciding the cropping pattern crop
rotation use of different inputs in farming optimum time of cultural practices and
where to sell the agricultural produce The following table shows the educational
qualifications of the farmer respondents
45
Table-33
Education Wise Classification of Respondents
Name of the APMCs
Educational Qualification
Total Literate Illiterate
Primary Secondary Degree PG and Others
Gulbarga 25 (500)
15 (300)
4 (80)
02 (40)
4 (80)
50 (200)
Bidar 23 (4894)
15 (3191)
03 (638)
02 (425)
4 (852)
47 (188)
Koppal 25 (5102)
16 (3265)
03 (612)
- (00)
5 (1021)
49 (196)
Raichur 26 (500)
16 (3076)
03 (576)
03 (576)
4 (772)
52 (206)
Bellary 28 (5385)
16 (3076)
03 (576)
- (00)
5 (963)
52 (208)
Total 127 (5080)
78 (3120)
16 (640)
07 (280)
22 (880)
250 (100)
Source Field study
Note Figures in bracket indicates percentage to total
From the above Table 33 it could be seen that out of the total 250 farmers
respondents selected for the present study 5080 percent of them are having primary
level of education 3120 percent of them have studied upto secondary Only 640
percent of total sample size possessed graduate level education followed by 280
percent post graduate and other qualification The illiterate percentage of respondents
total sample size is 880
Sources of Incomes
There are different sources of incomes available to farmers such as agriculture
income business self employment and employment in other organizations
Agriculture income is considered as major source of income to them and other
sources of incomes are secondary importance The details of their sources of incomes
along with agriculture incomes is shown in the table below
46
Table-34
Sources of Income of Respondents
Sl No
Name of the Market
Source of Income Total
Agriculture Business Employment Others
1 Gulbarga 40 (800)
6 (120)
2 (40)
2 (40)
50 (200)
2 Bidar 38 (8085)
5 (1063)
2 (1425)
2 (427)
47 (188)
3 Koppal 39 (7959)
5 (1020)
2 (408)
3 (613)
49 (196)
4 Raichur 42 (8076)
6 (1154)
3 (576)
1 (194)
52 (208)
5 Bellary 42 (8076)
6 (1154)
2 (385)
2 (385)
52 (208)
Total 201 (8040)
28 (1120)
11 (440)
10 (40)
250 (1000)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 34 that 8040 of respondents were having
agriculture income and 1120 percent had business income followed by 440 percent
and 40 percent of respondents from employment and other sources respectively This
will clearly indicates the much dependency of farmer respondents on agriculture for
income to meet the cost of livelihood This fact was same in five districts selected for
the study
Annual Gross Income
The farmers are getting incomes not only from agriculture but also from the
other sources discussed in previous table The gross annual income of the farmers
itself indicates the standard of living and their life style As far as in other farmers are
concerned they fully depend on agriculture for their livelihood Due to uncertainty in
agricultural production their annual income is getting fluctuation which results suicide
of many farmers in Karnataka
47
One side no guaranteed regular income and the other side rise in prices of
consumable goods forced them for borrowing money from outside to meet cost of
living and agricultural expense The researcher collected information about annual
gross income of respondents and shown in below table
Table-35
Annual Gross Income of Respondents
Sl No Annual income (Rs) Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 50000 to 150000 8 (160)
8 (1702)
8 (1632)
9 (1731)
9 (1730)
42 (166)
2 150001 to 250000 18 (360)
17 (3617)
17 (3469)
19 (3654)
18 (3462)
89 (356)
3 250001 to 350000 14 (280)
13 (2766)
14 (2857)
15 (2885)
15 (2885)
71 (289)
4 350001 to 45000 5 (100)
5 (1063)
5 (1022)
5 (962)
6 (1154)
26 (104)
5 450001 and above 5 (100)
4 (852)
4 (1020)
4 (768)
5 (769)
22 (88)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 35 that 166 percent of the respondents
were having the income of Rs 50000 ndash 150000 per annum income category and
356 percent had an income between Rs 150001 to Rs 250000 The percentage of
respondents in the Rs 250001 to 350000 range was found to be 289 percent
whereas those with an income less than Rs 450000 but above Rs 350001
accounted for 104 percent of the respondents The respondents with an annual
income greater than Rs 450000 made up the remaining 88 percent of the total
sample size It is learnt from the study that the farmers were from different types of
age groups education qualification and income range
48
Type of Family
Type of the family also determines the income of farmers When the partition
of agriculture land take place it badly affects on the quantity of agriculture
production If agriculture activities are carried out in joint family leads bulk
production and minimization of agriculture cost The data regarding the type of family
was also collected through schedule of questionnaire prepared for the farmers is
shown in below table along with their percentage to total sample size
Table-36
Type of Family of Farmer Respondents
Sl No Particulars Type of Family
Total Nuclear Family Joint Family Individual
1 Gulbarga 36 (1988)
14 (2029)
- 50 (2000)
2 Bidar 34 (1878)
13 (1884)
- 47 (1880)
3 Koppal 35 (1933)
14 (2028)
- 49 (1960)
4 Raichur 37 (2044)
15 (2173)
- 52 (2080)
5 Bellary 39 (2157)
13 (1886)
- 52 (2080)
Total 181 (7240)
69 (2760)
- 250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table depicts the classification of respondents on the basis of type
of family ie nuclear family or joint family 7240 percent of sample size are
belonged to nuclear family and remaining 2760 percent are living still in joint family
This clearly indicated that majority of preferred not to stay with joint family but want
to be in nuclear family
49
Family Size
Family size means the number of family members staying together in a single
family The farmers were also asked about the number of members living together
which helps to know their tendency towards big family or small family Big family
with small agriculture land holding found to be different to manage economic needs
and vice versa Keeping this point in mind data was collected about the size of family
members and is shown in Table 37
Table-37
Family Size of Respondents
Sl No Name of the Market Family Members
Total Below 4 4 ndash 8 8 ndash 12 Above 12
1 Gulbarga 15 (2027)
27 (2000)
05 (2083)
03 (1764)
50 (2000)
2 Bidar 14 (1891)
25 (1851)
05 (2083)
03 (1764)
47 (1880)
3 Koppal 15 (2027)
24 (1777)
06 (2500)
04 (2353)
49 (1960)
4 Raichur 15 (2027)
31 (2296)
04 (1667)
02 (1176)
52 (2080)
5 Bellary 15 (2028)
28 (2076)
04 (1667)
05 (2943)
52 (2080)
Total 74 (2960)
135 (5400)
24 (960)
17 (680)
250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table presents the classification of the respondents on the basis of
the size of the family members The category is done family below four members 4
members to 8 farmers respondents which constitute 54 percent of the sample group
had members between 4-8 and 2960 percent of sample size had family members
below 4 followed by 960 percent and 680 percent had 8-12 members and above 12
members respectively
50
Agriculture Land Holdings
The annual gross income of the respondents largely depends on the agriculture
land holdings by the farmers an attempt has been made to collect the details of the
agriculture land holding by the farmer respondents The size of the land holdings and
socio economic conditions of the farmers play an important role in farming as well as
marketing activities The size of the land holdings by sample size selected for the
present study is shown in the below table
Table-38
Total Agriculture Land Holdings
Sl No
Name of the Market
Total Agriculture Land Holding Total Below 5
Acres 5 ndash 10 Acres
11 ndash 15 Acres
Above 16 Acres
1 Gulbarga 3 (60)
20 (400)
9 (180)
18 (360)
50 (2000)
2 Bidar 3 (638)
19 (4042)
9 (1915)
16 (3405)
47 (188)
3 Koppal 3 (0612)
20 (4082)
9 (1837)
17 (3569)
49 (1960)
4 Raichur 4 (769)
21 (4038)
10 (1923)
17 (327)
52 (2080)
5 Bellary 4 (769)
21 (4038)
9 (1730)
18 (3463)
52 (208)
Total 17 (68)
101 (404)
46 (184)
86 (3440)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above Table 38 revels that 404 percent of the total respondents are small
farmers (ie 5 acres or more but less than 10 acres) 3440 percent of sample groups
are large farmers ie 16 acres or more than 16 acres and only 68 percent of
respondents are having less than 5 acres of cultivating land (marginal farmers)
Major Crops Grown
Generally agriculture crops are grown on basis and depending on the agro
climatic conditions as well as the socio-economic conditions of the farmers The study
51
was conducted to know the major crops grown by the farmer respondents selected for
the present study
Table-39
Annual Crop Grown in Land
Crop Quantity in Quintals
Total 1-25 26-50 51-75 76-100 100 and
above
Red gram 10 50 22 06 10 98
Green gram 96 16 04 - - 116
Black gram 22 38 04 64 - 128
Jawar 99 36 04 02 - 141
Maize 11 33 19 - 02 65
Bajra 07 02 05 07 04 25
Bengal gram 09 35 12 - 36 92
Sugarcane 21 08 04 08 - 41
Others 06 08 12 06 - 32 Source Field study
The quantity of crop grown by the farmers annually is given in the above
Table 39 The data about the different crop grown by the sample size of farmers are
shown in quantity along with the percentage of each crop to total crop grown by the
sample farmers
The table reveals that 5640 percent of the farmers respondents cultivate jowar
followed by 4640 percent farmers ever growing green gram red gram (3920)
maize (26) Black gram (2560) percent Bengal gram (368) and sugarcane
(1640) other crops grown constitute 5120 to total which included onions
groundnuts pulses chillies wheat and paddy etc
It can be seen clearly from the same table that red gram jowar green gram
and black gram are cultivated by the farmer respondents partially for self consumption
purpose and partially for selling It could also be noted from the same those
commercial crops like sugarcane bajra maize chillies sunflower paddy and onions
52
find a major portion in the cropping pattern of the farmer respondents This clearly
indicates the higher degree of commercialization of agricultural production by the
farmers in the Gulbarga division
Preference of Sale of Agriculture Produce
Marketing today is becoming more complicated with the advancement of the
civilization The commodity to be marketed must be of value It shouldnrsquot be a free
gift of the nature easily available for mere picking The farmer wish to have the
maximum share in the price of the products and on other side he wish to purchase the
inputs at the minimum price As he is interested to maximize his profits on sale of his
agriculture produce he will always in search for the market place where he can get
good price An attempt has been made in schedule to acquire information about the
preference of sale of agriculture produce by the sample respondents is shown in the
Table 310 and 311
Sale of Agriculture Produces
Table-310
Sale of Agriculture Produces
Sl No
Name of Market
Sale of Agriculture Produces Total
Sample Open Market APMC Confirmation Other
1 Gulbarga 21 (200)
46 (200)
080 (200)
01 (2500)
50 (2000)
2 Bidar 20 (1905)
43 (1870)
078 (1950)
-- 47 (188)
3 Koppal 21 (200)
45 (1956)
078 (1950)
01 (2500)
49 (196)
4 Raichur 22 (2095)
48 (2086)
083 (2075)
01 (2500)
52 (208)
5 Bellary 21 (200)
48 (2088)
081 (2025)
01 (2500)
52 (208)
Total 105 (420)
230 (920)
04 (16)
04 (16)
250 (100)
Source Field survey Note Figure in bracket indicates percentage to total
53
After the development of regulated markets farmers preferred to sell their
agriculture produce in the APMC yard this was clear in the Table 310 The response
of sample size was collected about sale of the agriculture produce 92 percent of
sample size preferred to sold only in the APMC market as to overcome from the
problems and malpractices in the open markets and 42 percent in open market 16
percent of sample each in confirmation market and other type of sale
Table-311
Preference of Sale of Agriculture Produces by Respondents
Sl No
Name of the Market
Preference of Sale Total Sample Local
Market Taluks Market
District Market
Other State
1 Gulbarga 23 (200)
23 (2035)
25 (2016)
01 (250)
50 (200)
2 Bidar 22 (1913)
21 (1858)
23 (1855)
01 (2500)
47 (188)
3 Koppal 23 (200)
22 (1946)
24 (1935)
-- 49 (196)
4 Raichur 24 (2086)
24 (2124)
26 (2096)
01 (2500)
52 (208)
5 Bellary 23 (2001)
23 (2037)
26 (2098)
01 (2500)
52 (208)
Total 115 (460)
113 (452)
124 (496)
04 (160)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The above table gives the preference of sale of agriculture produce by the
farmer respondents Researcher has discussed with the respondents and mobilized the
data whether they prefer to sell their agricultural produce in local market taluka or
district market
Higher percentage of farmers ie 4960 is sold their agricultural produce in
the district to get better price compared to local market 46 percent of them opinioned
that they are selling their produce in local markets due to infrequency of
transportation facilities and to save the expenditure from bringing produce to district
or taluk market Some farmer respondents ie 4520 percent are sold near to taluka
market and rest of them (160 percent) through direct sale to whole seller retailer or
brokers etc
54
Mode of Transportation
Most of the agricultural goods are not consumed at the places of their
production They are required to be transported in the various stages of the market
Right from lifting of the produce from the threshing floor to its ultimate consumer the
transportation is required to the farmer to bring the agricultural produce to the market
The various means of transport are used These are bullock carts horse tanga tractor
trolleys trucks etc Transport being the most important function of marketing In case
of transport in the rural India though in modern days its importance is declining now
the power operated means like tractors trolley trucks are being used but still bullock
cart and horse tonga is an important means of transport in agricultural marketing The
study had been conducted to know the mode of transport means used by the farmer
respondents to transport the agricultural produce from farm place to market place
same is presented in the table
Table-312
Mode of Transportation of Agriculture Produce by Respondents
Sl No
Name of the Market
Mode of Transportation Total Sample Bullock
Cart Tractor and
Trucks Hired
Vehicles Own
Vehicle 1 Gulbarga 18
(200) 16
(1928) 21
(1963) 01
(2500) 50
(200) 2 Bidar 17
(188) 15
(1807) 20
(1869) - 47
(188) 3 Koppal 18
(200) 16
(1928) 21
(1963) 01
(2500) 49
(196) 4 Raichur 19
(2111) 17
(2048) 22
(2056) 1
(2500) 52
(208) 5 Bellary 18
(2009) 19
(2289) 23
(2149) 01
(2500) 52
(208) Total 90
(360) 83
(322) 107
(428) 04
(160) 250
(100) Source Field study Note Figures in bracket indicates percentage to total It can be seen from the above table that maximum ie more than 42 percent
of our farmer respondents were transported their agriculture produce through hired
vehicle followed by 360 percent of them through bullock cart owned by themselves
Modern means of transportation such as tractors and trucks are used by 322 percent
of sample size The above figure in table indicates that dependency on traditional
55
mode of transportation was decreasing when it compared to modern mean to
transportation
Market Charges
As per the bye laws approved by the chief marketing officer according to the
Act market charges are levied by the market committees In all selected market
committees for the present study in the Gulbarga division only three types of market
charges are levied to the farmers for sale of his agricultural produce in the regulated
markets One commission to commission agent which is fixed at 2 in all the markets
but other market charges different from one market to another market depending upon
the decisions to this effect by the respective market committees A part from
commission all APMCs in the sample size charges hamali and weighment charges In
some APMCs cleaning charges are also levied for cleaning the produce which is
included in other markets in hamali Thus no unauthorized deductions are made now
in any of the markets in the division Few secretaries of the APMCs during the field
study opined that the charges are quite nominal and the services rendered are more
valuable than the charges and they cannot be quantified
Table-313
Market Charges by APMC
Sl No Name of Market Market Charges Total Sample Very Low Very High Fair Average
1 Gulbarga 03 (60)
15 (300)
10 (200)
22 (440)
50 (200)
2 Bidar 02 (425)
15 (3191)
11 (2340)
19 (4044)
47 (188)
3 Koppal 02 (408)
14 (2857)
11 (2245)
22 (4490)
49 (196)
4 Raichur 03 (576)
16 (3076)
10 (1923)
23 (4423)
52 (208)
5 Bellary 02 (384)
17 (3269)
10 (1923)
23 (4424)
52 (208)
Total 12 (480)
77 (3080)
52 (2080)
109 (4360)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total From the above table it could be seen that 4360 percent of farmer respondents
are of the opinion that APMC is charging average ie neither too high nor too low
market charges on the sale of agricultural produce by the farmers On the other hand
56
3080 percent of farmer respondents dissatisfied with the market charges by the
APMC as they expressed that market charges are very high in APMC yard as
compared with open market Though 480 percent of them are fully satisfied and
2080 percent of respondents were reacted positively about the market charges
Carrying Costs
In case of agricultural marketing the transport cost is to be paid by the farmer
if he is selling the produce in the market but if he is selling to the village trader the
cost is to be paid by the trader Carrying cost is the most important cost in the process
of agricultural marketing The carrying cost is more important in context of place
utility of product The efficiency of the marketing is dependent on reducing the cost
of carrying Generally the cost of carrying of bullock cart is higher as compared to
the power operated means A survey was conducted to ascertain the opinion of the
farmer respondents towards the carrying cost paid by them in study area and the data
so collected was shown in the table below
Table-314
Carrying Cost Paid by Respondents
Sl No Name of Market Carrying Cost Total Sample Very Low Very High Fair Average
1 Gulbarga 06 (1200)
10 (2000)
03 (600)
31 (6200)
50 (200)
2 Bidar 05 (1063)
09 (1915)
03 (638)
30 (6384)
47 (188)
3 Koppal 06 (1224)
09 (1836)
02 (408)
32 (6532)
49 (196)
4 Raichur 07 (1346)
11 (2115)
03 (576)
31 (5963)
52 (208)
5 Bellary 06 (1153)
11 (2115)
04 (769)
31 (5963)
52 (208)
Total 30 (1186)
50 (2000)
15 (580)
155 (6234)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above table shows the carrying costs paid by the farmer respondents to
carry the goods from one place to another place with in the market yard One thing is
clear from the above table that more than 60 of respondents are satisfied with
carrying costs paid by them But minor percentage ie 20 percent of respondents not
57
satisfied saying transporters were charging heavy cost and 580 percent were
opinioned that transportation cost paid by them was neither high or nor low but it was
fair From these data analysis maximum number of farmers respondents were fully
and partially satisfied with carrying cost paid in the market yard
Facilities Provided at APMC
Table-315
Facility Provided at APMC
Particulars
Districts Grand Total
Gulbarga Bidar Koppal Raichur Bellary
Yes No Yes No Yes No Yes No Yes No Yes No Total
Water 26 23 27 24 26 24 27 23 27 23 133 (5320)
117 (4680)
250 (100)
Toilet 4 46 4 43 4 45 5 47 5 47 22 (5320)
228 (9120)
250 (100)
Canteen 13 37 12 35 12 37 13 39 12 39 62 (2480)
188 (7520)
250 (100)
Communication 27 23 26 23 27 22 26 24 27 25 135 (5400)
115 (4600)
250 (100)
Shopping property
21 29 20 27 20 29 20 32 20 32 101 (4040)
149 (5960)
250 (100)
Market information
28 22 27 20 27 22 29 23 29 23 140 (5600)
110 (4400)
250 (100)
Other facilities (if any)
29 21 28 19 28 21 30 22 30 22 145 (5800)
105 (4200)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Table-316
Coefficient Correlation between Varieties with in Facilities Provided by APMC
Sl No
Facilities by APMC
Facilities by APMC
Water Toilet Canteen Commu-nication
Shopping Property
Market Information
Other Facilities
1 Water 1000 235() 535() 984() 749() 428() (a)
2 Toilet 235() 1000 474() 230() 376() 218() (a)
3 Canteen 535() 474() 1000 526() 693() 505() (a)
4 Communication 984() 230() 526() 1000 749() 411() (a)
5 Shopping property
749() 376() 693() 749() 1000 705() (a)
6 Market information
428() 218() 505() 411() 705() 1000 (a)
7 Other facilities (if any)
(a) (a) (a) (a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
58
The coefficient correlation calculated between the variables (one variable with
the another variable) within the facilities provided by APMC is shown in the above
table Each variable is positively correlated with other variable
Table-317
lsquotrsquo - Test Values
One-Sample Statistics
Facilities by APMC N Mean Std Deviation
Std Error Mean
Water 250 14680 5000 3162E-02
Toilet 250 19120 2839 1795E-02
Canteen 246 17480 4351 2774E-02
Communication 250 14600 4994 3158E-02
Shopping Property 246 15894 4929 3143E-02
Marketing Information 250 14400 4974 3146E-02
Other Facilities 145 20000 0000(a) 00000 Note a) Cannot be computed because the standard deviation is 0
One-Sample Test
Facilities by APMC
Test Value = 0
t Df Sig
(2-tailed) Mean
Difference
95 Confidence Interval of the
Difference
Lower Upper
Water 46424 249 000 14680 14057 15303
Toilet 106500 249 000 19120 18766 19474
Canteen 63015 245 000 17480 16933 18026
Communication 46225 249 000 14600 13978 15222
Shopping Property 50573 245 000 15894 15275 16513
Marketing Information
45776 249 000 14400 13780 15020
59
Dissemination of Market Information
The dissemination of market information is most important so to make the best
use of this information There is no use of collection of data if it is not disseminated
well in time There are different sources for dissemination of market information such
as news papers radio and television department of government post and telephone
etc
The different news papers published in English Hindi and regional languages
are publishing the information about piracy of various commodities in different
markets There are periodical magazines and journals published weekly fortnightly or
monthly Radio and television is depicting the news about markets and broadcast and
televise the information about prices daily in its programmes The various department
of the government publish various reports concerned with agricultural marketing The
traders exchange the information about prices and arrivals in different markets
through telephone or through letters Price bulletins are published by directorate of
marketing and inspection providing information about prices and personal contact
between farmer to farmers farmer to trader etc is also a source of information The
following table provides the details of responses of source of market information
Table-318
Sources of Market Information
Sl No Particulars Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 Newspaper 32 (2013)
30 (1886)
31 (1950)
33 (2075)
33 (2015)
159 (636)
2 Radio and TV 42 (1981)
40 (1886)
42 (1981)
44 (2075)
44 (2075)
212 (848)
3 Dept of government 05 (2083)
05 (2083)
05 (2083)
05 (2083)
04 (1667)
24 (96)
4 Post and telephone - - - 01 (5000)
01 (5000)
02 (08)
5 Personal contact - - - 01 (5000)
01 (5000)
02 (08)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
60
A comparative analysis of sources of market information reveals that 848
percent of farmer respondents obtained the market information through radio and
television followed 6360 percent from newspapers and 372 from price bulletins
about the market 96 of total sample size depended on the various departments of
the governments such as directorate of economics and statistics of the central
government directorate of economics and statistics of the sates the agricultural
marketing departments of states etc about the prices in different regulated markets
Personal contact and post and telephone sources of market information is considered
to be a least sources from respondents
Table-319
Defects in Market Information
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Ignore retail prices 11 (2200)
10 (2553)
10 (2041)
11 (2115)
11 (2115)
53 (212)
2 Delay in news 13 (2600)
12 (2553)
13 (2653)
14 (2692)
14 (2692)
66 (2640)
3 Wide range of prices 05 (1000)
06 (1277)
06 (1224)
06 (1154)
07 (1346)
30 (1200)
4 Incomplete information
08 (1600)
08 (1702)
08 (1632)
09 (1730)
08 (1538)
41 (1640)
5 Illiteracy 07 (1400)
07 (1489)
07 (1428)
08 (1538)
08 (1538)
37 (148)
6 Others 06 (1200)
04 (851)
05 (1020)
04 (769)
04 (769)
23 (920)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
From the above table it can be seen that farmers are getting different
advantages for grading the products Their response is not homogenous ie 38
percent of the farmers are supported grading in easy marketing of the agriculture
produce 9680 percent are favoured grading in establishing to face competition and
61
128 percent of sample group opinioned about the grading that it will helps in
obtaining higher prices Only 6 of them favoured to reduction of cost of marketing
and 64 to easy to get finance facilities
Table-320
Ranking of Defects in APMC
Defects in APMC Ranking of Defects
Total First Second Third Fourth
No advance fund 32 (120)
216 (864)
02 (08)
02 (08)
250 (100)
Difficulty of storage 230 (920)
14 (560)
4 (160)
04 (160)
250 (100)
Lack of transportation 10 (40)
20 (80)
218 (872)
02 (080)
250 (100)
Lack of grading 10 (40)
179 (716)
02 (080)
59 (236)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The survey of APMC defects to rank on the basis of the respondents
preferences is shown in the above table 92 of the total respondents were opinioned
that the major defect in the APMC yard is difficulty of storage facilities followed by
no advance fund to farmers to meet the pre harvest expenses which constitute 864
of sample group
Table-321
Coefficient Correlation between Variables within Defects in Regulated Markets
Sl No
Defects in Regulated Markets
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 No Advance Money 1000 -354() 763()
2 Difficulty of Storage -354() 1000 044
3 Lack of Transport 763() 044 1000 Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
62
The details of the coefficient correlation calculated between all the variable of
defects in regulated markets are given in the above table Some variables within the
defects in regulated markets are found positive and negative correlated with each
other
Table-322
Correlation between Facilities Provided by APMC with Effects in Regulated
Markets
Sl No Facilities by APMC
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 Water - 269 () 058 - 218 ()
2 Toilet - 114 074 - 057
3 Canteen - 059 - 097 - 116
4 Communication - 276 () - 0062 - 222 ()
5 Shopping property - 173 () - 008 - 166 ()
6 Market information - 293 () - 141 () - 232 ()
7 Other facilities (if any)
(a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant The above table shows the computed result of correlation between the
facilities provided by the APMC to the farmers in the APMC with the defects
prevailing in the market yard The correlation was found significant between water
facilities communication facility shopping property and market information with no
advance money with a value -0269 -0276 -0173 and -0293 respectively The
correlation was insignificant between toilet and canteen facility in the market yard
with the no advance money
Difficulty of storage in the market yard is one of the most severe problem
found in the selected APMC yard The correlation between difficulty of storage with
the facilities by APMC were found insignificant in all cases except with market
information ie - 0141 But with lack of transport defect in the market yard the
63
correlation was insignificant between toilet and canteen with the transport defect with
a value of -0057 and -0116 respectively
Table-323
Facilities to Improve Market Efficiency
Facilities Ranking of Facilities
Total First Second Third Fourth Fifth
Trade more commodities 24 (96)
173 (692)
49 (196)
02 (08)
02 (08)
250 (100)
Increase in facilities 221 (884)
22 (880)
03 (12)
02 (08)
02 (08)
250 (100)
Role of government 34 (136)
29 (116)
175 (700)
06 (240)
06 (240)
250 (100)
Representative from farmers 04 (160)
20 (80)
10 (40)
212 (848)
04 (160)
250 (100)
Reduction in market fee 04 (16)
100 (400)
55 (220)
41 (1640)
50 (200)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-324
Coefficient Correlation between Variables of Facilities to
Improve Market Efficiency
Sl No
Facilities to Improve Market
Efficiency
Facilities to Improve Market Efficiency More
Commodities to Trade
Increase in
Facilities
More Role of Government
Representation From Framers
1 More commodities to trade
1000 419() -316() 355()
2 Increase in facilities
419() 1000 -619() 048
3 More Role of Government
-316() -619() 1000 336()
4 Representation from Framers
355() 048 336() 1000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
64
The above table depicts the values of the coefficient correlation calculated
between the variables of facilities suggested by the farmer to improve market
efficiency in the APMC yard
Table-325
Correlation between Facilities Provided with Facilities to Improve Market
Efficiency
Sl No
Facilities Provided by
APMC
Facilities to Improve Market Efficiency More
Commodity to Trade
Increase in
Facilities
More Role of Government
Representation from Farmers
1 Water -221() 098 -212() -167() 2 Toilet -100 -300() 220() 181() 3 Canteen -028 -076 -129() -089 4 Communication -218() 103 -222() -167() 5 Shopping
property 057 019 -249() 008
6 Market information
-073 116 -353() -176()
7 Other facilities (if any)
(a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The data collected about the opinion of the farmer respondents towards the
facilities provided by APMC is correlated with the suggestions obtained from them to
improve market efficiency further was given in the above table The result of
correlation is shown significant between water and communication facilities with
more commodities need to be allowed to trade under notified agriculture crops in the
APMC yard the correlation value is -0221 and -0218 respectively
A negative correlation between toilet and increase in market facilities ie -03
clearly indicates that APMC should concentrate on other facilities to improve market
efficiency other than toilet facility The government is required to play a vital role in
the APMC yard to improve the market efficiency by providing financial assistance to
APMC officials enabling them to provide essential facilities to the farmers and market
functionaries The correlation was negatively correlated between the facilities
provided by APMC listed in the above table except in toilet facility ie positive
correlation 0220 The highest negative correlation was computed between market
65
information with government role ie -0353 followed by -0249 (between shopping
property with government role) The farmersrsquo representation in the market committee
is also one of the important aspect in availing market facilities The correlation
between farmers representation with market facilities shows negative except in toilet
facility it is positive correlation ie 0181
Table-326
Correlation between Defects in Regulated Markets with Facilities to Improve
Market Efficiency
Sl No
Defects in Regulated Markets
Facilities to Improve Market Efficiency
More Commodities to
Trade
Increase in Facilities
Role of Government
Reduction in Market Fees
1 No advance money
611 () 039 343 () 439 ()
2 Difficulty of storage
-118 043 139 () 019
3 Lack of transport facility
500 () 059 445 () 895 ()
4 Lack of Gradation facility
-0115 0410 135 () 117
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The defects in the regulated markets were ranked by the farmers on their
preferences were also attempted to correlate with the additional facilities to be
provided to improve the market efficiency The correlation was positively correlated
between no advance money and lack of transport facility with the more commodities
to be permitted to trade in the market yard with value 0611 and 0500 respectively
No negative correlation was found between any of variables between defects in
regulated markets with the farmers opinions to improve market efficiency ie
increase in facilities Reduction in the market fees and charges is the another way for
the APMC officials to improve the market efficiency the correlation result is positive
with the market defects ie highest positive correlation with lack of transport facility
66
with reduction in market fees (0895) followed by no advance money with reduction
in market fees (0439) and (0117) between lack of gradation and reduction in market
fees Government role was also positively correlated to over come from all the defects
prevailing in the regulated market in the direction to improve market efficiency (the
correlation result was ranged between 0135 to 0445) Few defects were highly
correlated and others defects were less correlated with role of government variable
67
Table-327
Pearson Correlations
Correlations 18a 18b 18c 18d 19a 19b 19c 19d 19e
Pearson Correlation 18a 1000 -354() 763() 735() 611() 039 343() 439() 469() 18b -354() 1000 044 131 -118 043 139() 019 072 18c 763() 044 1000 911() 500() 059 445() 895() 898() 18d 735() 131 911() 1000 987() (a) 987() 948() 947() 19a 611() -118 500() 987() 1000 419() -316() 355() 1000() 19b 039 043 059 (a) 419() 1000 -619() 048 (a) 19c 343() 139() 445() 987() -316() -619() 1000 336() 1000() 19d 439() 019 895() 948() 355() 048 336() 1000 1000() 19e 469() 072 898() 947() 1000() (a) 1000() 1000() 1000
Sig (2-tailed) 18a 000 000 000 000 546 000 000 000 18b 000 510 276 065 508 033 781 611 18c 000 510 000 000 377 000 000 000 18d 000 276 000 000 000 000 000 19a 000 065 000 000 000 000 000 000 19b 546 508 377 000 000 491 19c 000 033 000 000 000 000 000 000 19d 000 781 000 000 000 491 000 000 19e 000 611 000 000 000 000 000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
68
Infrastructure Facilities in the APMC Yard
Efficient marketing infrastructure such as wholesale retail and assembly
markets and storage facilities is essential for costndasheffective marketing to minimize
post harvest losses and to reduce health risks Markets play an important role in rural
development income generation food security developing rural market linkages and
gender issues Planners need to be aware of how to design markets that meet a
communityrsquos social and economic needs and how to choose a suitable site for a new
market In many cases sites are chosen that are inappropriate and result in under use
or even no use of the infrastructure constructed It is also not sufficient just to build a
market attention needs to be paid to how that market will be managed operated and
maintained In most cases where market improvements were only aimed at
infrastructure upgrading and did not guarantee maintenance and management most
failed within a few years The details of the availability of infrastructure and farmers
opinion is shown in the following tables
69
Table-328
Infrastructure Facilities in the APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
Available Not Available Available Not
Available Available Not Available Available Not
Available Available Not Available Available Not
available Total
Transport 32 18 35 12 36 13 39 13 42 10 184 (7360)
66 (2640)
250 (100)
Cold storage 02 48 02 45 01 48 03 49 06 46 14 (560)
236 (9440)
250 (100)
Storage 35 15 38 09 36 13 37 15 40 12 186 (7440)
64 (2560)
250 (100)
Processing 30 20 35 12 38 11 41 11 38 14 182 (7280)
68 (2720)
250 (100)
Grading 28 22 40 07 41 08 40 12 37 15 186 (7440)
64 (2560)
250 (100)
Weighment 45 05 42 05 41 08 45 07 44 08 217 (8680)
33 (1320)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
70
Table-329
Satisfaction of Infrastructure Facilities in APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
S NS T S NS T S NS T S NS T S NS T S NS T
Transport 30 20 50 31 16 49 35 14 42 34 18 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Cold storage 01 49 50 - 47 47 - 49 49 01 51 52 02 50 52 04 (160)
246 (9840)
250 (100)
Storage 32 18 50 29 18 47 27 22 49 33 19 52 38 14 52 159 (6360)
91 (3640)
250 (100)
Processing 25 25 50 28 19 47 31 18 49 38 14 52 35 17 52 157 (6280)
93 (3720)
250 (100)
Grading 22 28 50 35 12 47 36 13 49 37 15 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Weighment 41 09 50 36 11 47 40 09 49 42 10 52 42 10 52 201 (8040)
49 (1960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total S ndash Satisfied NS ndash Not Satisfied T ndash Total
71
Defects in Weighing
As a rule when produce enters the market every agricultural produce has to
be weighed in the presence of the licensed weighmen and the receipt for weighment
has to be given to the farmer But even this system has certain defects as follows
Meager number of weighmen
Time of weighment of the produce
Old weighment equipments
The details of weighing practices in the APMC yard and the farmer
respondents opinion is shown in the following table
Table-330
Causes of Defects in Weighing
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Absence of licenced weigh man
20 19 19 18 19 95 (3800)
2 Under weighting 25 22 24 26 25 122 (4880)
3 Favouring for buyer
05 03 02 03 03 16 (640)
4 Faulty weights 00 02 01 02 02 07 280)
5 Faulty weight machineries
00 02 03 03 02 10 (400)
6 Others 00 00 00 00 01 01 (040)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Farmer respondents were identified under weighing was followed by the
absence of licensed weigh men and faulty weigh machines
72
Table-331
Importance of Grading of Produce
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Easy marketing 18 (3600)
17 (3617)
19 (3877)
20 (3846)
21 (4038)
95 (3800)
2 Reduction of cost 05 (1000)
03 (638)
02 (408)
02 (384)
03 (576)
15 (600)
3 Higher prices 05 (1000)
02 (425)
08 (1632)
10 (1923)
07 (1346)
32 (128)
4 Encourage competition
20 (4000)
18 (3829)
15 (3061)
19 (3653)
20 (3846)
92 (3680)
5 Easy to get finance 02 (400)
07 (1489)
05 (1020)
01 (192)
01 (192)
16 (640)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Processing of Produce
In agriculture marketing process was not an important function The most of
the commodities were selling in their original form But in modern age with change
in the tastes and preferences of the people and with the introduction of new
technology like refrigerator milling and banking of food grains the consumers
demand for processed goods has increased So in the modern system of marketing the
processing has become a most important function of the marketing
By processing we mean the change of the form of the product before its
consumption The processing of the agricultural products is having the advantages
such as add the value in the product converts into edible form preservation for longer
period use of surplus food less cost of production wide extent of the market and
generation of employment The study about the opinion of farmer respondents
towards the importance of processing in agriculture marketing was conducted and the
result is shown in the below Table 332
73
Table-332
Importance of Processing of Produce
Sl No
Particulars Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Add the value 45 (9000)
43 (9149)
45 (9184)
47 (9038)
47 (9038)
227 (9080)
2 Preservation for longer period
38 (7600)
36 (7660)
37 (7551)
40 (7692)
39 (7500)
190 (760)
3 Less cost of production
10 (1000)
09 (1915)
09 (1837)
10 (1923)
10 (1923)
48 (1920)
4 Wide extent of the marketing
03 (600)
03 (638)
03 (612)
03 (576)
04 (769)
16 (640)
5 Use of surplus food 01 (200)
- 01 (204)
01 (192)
01 (192)
04 (160)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The Table 332 reveals that the importance of processing of agriculture
producing in marketing more than 90 percent of farmer respondents are fully agreed
that processing definitely going to add the value to the agriculture producing in
marketing At the same time 76 percent of sample group are favoured that processing
helps in preservation of agriculture produce for longer period and 1920 percent and
640 percent of farmer respondents are opined that processing of agriculture produce
is important for less cost of production and wide extent of the marketing respectively
Only a minor percent ie 160 supported the processing helps to use of surplus food
From the above analysis it can be said that processing not only helps to farmers but
also to buyer of agriculture produce in many ways
74
Satisfaction towards Insurance Facilities
Table-333
Level of Satisfaction of Insurance Facilities
Sl No Satisfaction Level Agriculture Insurance
Total Insured Non-Insured
1 Satisfied 238 (9917)
02 (083)
240 (9600)
2 Unsatisfied 10 (10000)
- 10 (400)
Total 248 (9920)
02 (080)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Finance Requirements
According to Pyle ldquoMoney or credit is the lubricant that facilitates the
marketing machinerdquo there can be obstacles in performing various activities in case
there are inadequate funds to meet the expenditure involved in these functions The
biggest need of finance is to purchase the stock of agriculture produce and to meet the
agriculture expenses for farmers In the agricultural marketing the finance is having
more importance because of the nature of agricultural marketing The production is
seasonal and there is rush in the market at the time of harvest Huge amount is
required to farmers to meet fertilizers and pesticides expenses and to buyer for the
purchase of stock to get it stored and for its processing So the finance is required to
be arranged either by the owned fund or by taking loan Though the rate of interest
adds in the price of the commodity and the persons who is making this expenditure
realizes it as the reward of the function performed by him The researcher has
undertaken the study of finance facilities at the APMC yard other sources of credit
other than banking the factors affects the requirements of finance by agricultural
marketing firm as well as farmers and the interest paid on the credit the results of the
farmers opinion was collected and shown in the Table 334 335 336 and 337
75
Table-334
Satisfaction of Banking Facilities at APMC
Sl No Level of Satisfaction Availability of Banking Facilities
Total Available Not Available
1 Satisfied - 15 (602)
15 (600)
2 Unsatisfied 01 (10000)
234 (9398)
235 (9400)
Total 01 (040)
249 (9960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total The Table 334 depicts the farmerrsquos responses towards the availability of
banking facilities in the APMC yard and their satisfaction towards such services in the
market yard In all the APMCs of Gulbarga division which covers five districts only
6 of the respondents were satisfied and rest of 940 percent of farmers respondents
were unsatisfied for the non-availability of banking facilities in the yard
Table-335
Other Sources of Credit Facilities
Sl No Particulars Districts Total Gulbarga Bidar Koppal Raichur Bellary 1 Whole seller 09
(1800) 08
(1702) 08
(1632) 10
(1923) 10
(1923) 45
(1800) 2 Retail seller 05
(1000) 04
(851) 05
(1020) 05
(961) 04
(769) 23
(920) 3 Commission agents 32
(6400) 31
(6595) 32
(6531) 34
(6538) 33
(6346) 162
(6480) 4 Broker 03
(600) 03
(638) 03
(612) 03
(576) 03
(576) 15
(600) 5 Others 01
(200) 01
(212) 01
(204) 00
(000) 02
(385) 05
(200) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total The researcher has also attempted to collect the opinion from the farmers
about the availability of other sources of credit facilities to the buyer of agriculture
produce and to farmers The other sources of credit to farmers other than bank
includes wholesaler retailer commission agents and brokers Majority of farmer
76
respondents ie 6480 percent of sample size said that commission agents are most
easy source of credit followed by whole seller ie 18 percent and retailer seller ie
920 and brokers only 6 percent
Ranking the Factors of Finance Requirements
As the financial requirements in the agricultural marketing can play a big role
as stimulation of agricultural production and to promote the interest of agricultural
community There are two types of finance requirements one fixed capital which is
required for the building furniture office instruments etc to carry on the business of
agricultural market Second requirement variable capital this is required to purchase
of stocks to make the payment of transportation labourers bills and refreshments
etc The researcher during his field study has attempted to point out and tried to rank
the main factors for finance requirements The data so collected is shown in the Table
336
Table-336
Ranking the factors of finance requirements
Sl No
Finance Requirements
Ranking Finance Requirements Total
First Second Third Fourth Fifth
1 Nature of crop 123 (4920)
50 (2000)
35 (1400)
23 (920)
19 (760)
250 (100)
2 Terms of payments 84 (3360)
16 (640)
31 (1240)
105 (4200)
14 (560)
250 (100)
3 Economic conditions 09 (360)
132 (5280)
63 (2520)
25 (1000)
21 (840)
250 (100)
4 Fluctuations of prices 15 (600)
26 (1040)
104 (4160)
47 (1880)
58 (2320)
250 (100)
5 Volume of crop 19 (760)
26 (1040)
17 (680)
50 (2000)
138 (5520)
250 (100)
Total 250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
77
The above Table 336 shows that the ranking of finance requirements by the
farmer respondents Out of 250 sample respondents 123 farmers respondents ranked
first the nature of crop which determines the quantum of finance requirements
followed by 5280 percent towards economic conditions as ranked second and
fluctuation of prices ie 41 percent as third and terms of payment as fourth position
followed by volume of crop as fifth
Interest Paid on Bank Credit
Table-337
Interest Paid on Bank Credit
Sl No Particulars Interest Paid on Bank Credit
Total Very low Very high Average
1 Gulbarga 30 (6000)
12 (2400)
08 (1600)
50 (2000)
2 Bidar 27 (5745)
11 (2340)
07 (1915)
47 (1800)
3 Koppal 29 (5918)
12 (2449)
07 (1428)
49 (1920)
4 Raichur 32 (6154)
12 (2307)
08 (1538)
52 (2080)
5 Bellary 32 (6154)
13 (2500)
10 (1923)
52 (2080)
Total 150 (6000)
60 (2400)
40 (1600)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Services of Commission Agents
Commission agents are the main marketing functionaries operating in the
APMC yard among the other market participants They provide the necessary link in
the marketing of agricultural produce to the farmers They supply the necessary data
and useful assistance in the marketing of agricultural produce of the farmers They
help farmers in availing the services like assembling storing grading and finance etc
Hence the farmers are provided with channel of distribution by the APMC by
78
licensing these intermediaries and regulating their services The farmer respondents
were approached for obtaining their views about the quality of services covering
defects with commission agents commission paid to commission agents and their
satisfaction with commission agents The following Tables ie 338 339 and 340
gives the results of the survey data
During the field work by the researcher investigated to identify the defects
with commission agents from the farmers The data so collected are compiled and
shown in the Table 338 The major defect with the commission agent was they are
more favourable to the buyer which constitutes 68 percent of sample size 20 percent
of farmers respondents were pointed out the misguide by the commission agent to
farmers at the time of sale is the second major defects followed by high commission 8
percent lack of knowledge 320 and other defects constitutes 080 percent More than
70 percent of farmer respondents are taken the help of commission agents in selling
their agricultural produce out of that 5960 percent of farmers only satisfied with
services given by commission agents The 74 farmer respondents which constitutes
2960 percent of total sample group neither obtaining any form assistance in
marketing their produce and nor satisfied with services given by them
Table-338
Satisfaction towards Commission Agents
Sl No Level of Satisfaction Service from Commission Agents
Total Yes No
1 Satisfied 104 (5910)
45 (6081)
149 (5960)
2 Unsatisfied 72 (4090)
29 (3919)
101 (4040)
Total 176 (7040)
74 (2960)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
79
Table-339
Defects with Commission Agents
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Favoruable
to buyer 34
(6800) 32
(6808) 33
(6735) 35
(6730) 36
(6923) 170
(6800) 2 High
commission 04
(800) 04
(851) 04
(816) 05
(962) 03
(576) 20
(800) 3 Misguide 10
(1000) 09
(1915) 10
(2041) 10
(1923) 11
(2115) 50
(2000) 4 Lack of
knowledge 02
(400) 02
(425) 02
(408) 02
(385) 00
(000) 08
(320) 5 Others 00
(000) 00
(000) 00
(000) 01
(192) 01
(192) 02
(080) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
Table-340
Commission Paid to Agents
Sl No Particulars Commission Paid to Agents
Total Very Low Very High Average
1 Gulbarga 06 (1200)
18 (3600)
26 (5200)
50 (2000)
2 Bidar 08 (1702)
17 (3617)
22 (4680)
47 (1800)
3 Koppal 06 (1224)
17 (3469)
25 (5102)
49 (1920)
4 Raichur 06 (1153)
19 (3654)
27 (5192)
52 (2080)
5 Bellary 04 (769)
19 (3654)
30 (5769)
52 (2080)
Total 30 (1200)
90 (3600)
130 (5200)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
The responses of the farmers regarding the charges of the commission by the
commission agents clearly indicates that the commission agents charges excess
80
amount well above prescribed rate this can be found from the dissatisfaction of
farmers ie 36 percent of sample size Changing more than the prescribed by the act
by the commission agent is one of the marketing malpractices prevalent in the APMC
In general strict vigilance over such marketing malpractice is needed to safeguard the
interest of the farmers It is unfortunate to learn that a very small number of ie 12
percent of the sample group farmers have complained against the high commission
charged by the commission agents At the same time 52 percent ie more than one
half of the total sample size positively favoured towards the commission charges by
the commission agents saying that commission paid is average neither to high or too
low
Table-341
Cost of Cooli to Hamals
Sl No Particulars
Cooli to Hamals Total
Very High Very Low Average 1 Gulbarga 07
(200) 09
(1800) 40
(8000) 50
(2000) 2 Bidar 02
(425) 08
(1702) 37
(7872) 47
(1800) 3 Koppal 02
(408) 08
(1633) 39
(7959) 49
(1920) 4 Raichur 02
(385) 09
(1730) 41
(7885) 52
(2080) 5 Bellary 01
(192) 09
(1730) 42
(8076) 52
(2080) Total 08
(320) 43
(1720) 199
(7960) 250
(10000) Source Field survey Note Figures in bracket indicates percentage to total Table 341 depicts the cost of cooli paid to hamal in the market yard Hamals
are working in the APMC for loading and unloading of agriculture produce Farmer
respondents were satisfied with the cost of cooli to hamal it constitute 7960 percent
of total sample size only 320 percent of total told that hamals are charged high cooli
and 1720 percent of them totally satisfied with the charges paid to hamals Table 341
gives the level of satisfaction towards the services given by hamals Large number of
farmers are partly satisfied which constitute 6080 percent 376 percent fully satisfied
81
and 240 percent not at satisfied It is suggestible to the APMC to take measures to
control the hamals and their services to farmers
Level of Satisfaction with Hamals Services
Table-342
Level of Satisfaction with Hamals Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (3800)
30 (6000)
01 (200)
50 (2000)
2 Bidar 17 (3617)
29 (6170)
01 (213)
47 (1800)
3 Koppal 18 (3673)
28 (5714)
03 (612)
49 (1920)
4 Raichur 19 (3654)
32 (6153)
01 (192)
52 (2080)
5 Bellary 21 (4038)
33 (5962)
00 (000)
52 (2080)
Total 94 (376)
150 (6080)
06 (240)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Cooperation from APMC Officials
Along with the services from different market functionaries to farmers
cooperation from the APMC officials is also very important to farmers to boost their
psychological factors to bring their agricultural produce to APMC yard for sale A
good cooperation definitely creates belongingness in the minds of farmers The data
was collected through questionnaire about the level of satisfaction with the
cooperation from APMC officials and defects with them The information gathered is
shown in Table 343 and 344
82
Table-343
Level of Satisfaction with APMC Officials Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (2021)
08 (2105)
23 (1949)
50 (2000)
2 Bidar 17 (1809)
06 (1579)
24 (2033)
47 (1880)
3 Koppal 16 (2021)
05 (1315)
28 (2373)
49 (1960)
4 Raichur 20 (2127)
10 (2632)
22 (1864)
52 (2080)
5 Bellary 22 (2340)
09 (2368)
21 (1780)
52 (2080)
Total 94 (3760)
38 (1520)
118 (4720)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-344
Defects with APMC Officials
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Non-
cooperative 36
(200) 40
(2222) 40
(2222) 45
(250) 19
(1055) 180
(7200) 2 Favourable to
buyer 42
(1953) 43
(2000) 32
(1488) 41
(1907) 57
(2651) 215
(8600) 3 Laziness 18
(200) 17
(1888) 15
(1667) 20
(2222) 20
(2222) 90
(3600) 4 Expect money 08
(200) 06
(150) 05
(1250) 09
(2250) 12
(300) 40
(1600) 5 Improper
market data 14
(200) 13
(1857) 12
(1714) 14
(200) 17
(2429) 70
(2800) 6 Others - - 03
(300) 04
(400) 03
(300) 10
(400) Total 50
(2000) 47
(1880) 49
(1960) 52
(2080) 52
(2080) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
83
Malpractice Experience at APMC Yard
The major malpractices faced by the farmer respondents in the selected
APMCs while selling their agricultural produce in the study area is presented in the
Table 345
Table-345
Farmers Malpractice Experience at APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Inadequate grading
38 40 39 32 46 195
2 Inadequate packing
32 28 17 31 46 137
3 Unfavourable weightment
44 43 41 47 46 221
4 Excess samples 18 15 20 14 15 82
5 Inadequate supervision
21 23 28 22 25 119
6 Excess market charges
36 32 38 28 36 170
7 More favourable to buyer
41 42 43 48 49 223
8 Others 05 14 13 09 17 56
Total 50 (200)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The highest percentage of farmer respondents (221) are of the opinion that
unfavourable weighment in the sale is the major malpractice experienced by them
The second highest percentage of farmer respondents who are of the opinion that in
adequate grading by the buyer while selling their produce The third major
malpractice being taking excess market charges by commission agents as arbitrary
deduction in the sale amount of produce The next major malpractice (137) opined by
farmer respondents is regarding inadequate packaging to sale produce The other most
84
dominating and prevailing malpractice was found by the researcher is more
favourable to the buyer and improper weighment of their produce (223) in the market
yard For of respondents specified other malpractices as high wastages and non
payment of amount etc Inspite of all these malpractices affecting of the farmers it is
quite essential for all the APMCs in the study area should take some connective
measures to eliminate such malpractice Since the main purpose of the APMCs is to
regulate all marketing activities In the field study the steps taken by the APMC to
eliminate malpractice as expressed their views by the farmer respondents were
recorded very few percent of farmer respondents are of the opinion that APMC is
excising supervision over the malpractice regarding to selling and pricing the
commodity They also satisfied with the intervention of APMC officials to eliminate
malpractices in weighment grading activities but the farmer respondents were not at
satisfied with the APMC for not taking any steps to eliminate malpractices in payment
of sale price by the buyer to farmers
Disputes in APMC
So many disputes can arise among the farmers traders and middlemen over
the quality the grade the deductions and payment settlement etc The market
committees settles such disputes so the farmers as well as middlemen may not waste
their time and marketing in the court
During the field study the researcher has investigated to find out the opinion
of the farmers for main causes of disputes in the APMC yard The compiled
information is presented in the following Table 346
85
Table-346
Causes for Disputes in APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Price of produce
23 (2054)
20 (1786)
21 (1875)
24 (2143)
24 (2143)
112 (4480)
2 Quality of produce
10 (1786)
08 (1429)
05 (892)
11 (1964)
22 (3928)
56 (2240)
3 Weightment 30 (1974)
31 (2039)
32 (2105)
28 (1842)
31 (2039
52 (6080)
4 Timing of payment
37 (1989)
38 (2043)
40 (2150)
32 (1720)
39 (2096)
186 (7440)
5 Grading of produce
08 (1509)
10 (1887)
07 (1320)
11 (2075)
17 (3207)
53 (2120)
6 Warehousing 05 (1250)
08 (200)
07 (1750)
06 (1500)
14 (350)
40 (1600)
7 Others 18 (200)
15 (1667)
24 (2667)
25 (2777)
08 (888)
90 (3600)
Total 50 (2000)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Majority of respondents have disputes with commission agents as well as the
traders and few of them have disputes with hamals From the Table 346 it could be
seen that one of the major reasons for dispute being untimely payment (Delay in
payment) to farmer ie seller of agricultural produce Nearly more than half of the
respondents (7440) have opined that they are not being paid as per the provisions of
Act ie immediately after the sale of produce The next major causes of dispute being
weighment of produce Marketing three fifth of the respondents are not happy with
the weighment system prevailing in the market The third major causes of disputes is
being price of the produce About one third of the respondents (4480) have opined as
determination of the price of produce is also one of the major factor for the disputes
The other reasons of the disputes in the APMC yard in the Gulbarga division was
86
found are regarding quality of produce (2240) warehousing (1600) as determined by
farmers Very few of respondents feel that there is no reasons for disputes in the
APMC yards
As far as settlement of disputes are concerned farmer respondents are
preferred for settlement of disputes with traders at the level of secretary of the APMC
A part from that they also some time preferred to solve disputes through the dispute
committee where disputes are settled by arbitration Only 5 percent of the farmer
respondents from the sample size are of the opinion that disputes are settled by the
court of law In Gulbarga division of APMC maximum disputes were settled at
secretary level it calls for efficient secretaries in APMCs
Farmers respondents were also asked about the level of satisfaction in
settlement of disputes Nearly more than 40 percent of respondents are satisfied with
settlement of disputes However 30 percent of respondents are not fully satisfied with
settlement of disputes rest of the sample group were not given any response in this
regard
Quality of Services in APMC Yard
The sale of the agricultural produces by the farmers in the APMC yard
depends on the various services and their quality provided by the APMCs to the
farmers It is the true that if the services provided by APMCs to farmers are very
good large number of farmers bring their produce to the APMC market for sale
instead of open markets This definitely attracts more number of traders and market
functionaries to the market This results an impetus in getting not only good price for
their produce but also a competitive cost to the traders The farmer respondents were
asked to assess the quality of market services provided by the APMCs the responses
of respondents who expressed their level of satisfaction and dissatisfaction to different
facilities provided is presented in the following table
87
Table-347
Quality of Services at APMC
Quality of Services Name of APMC
Total Gulbarga Bidar Koppal Raichur Bellary
Very good 04 (200)
04 (200)
04 (200)
03 (150)
05 (250)
20 (80)
Good 41 (2930)
38 (1881)
40 (1980)
42 (2079)
41 (2029)
202 (808)
Bad 02 (250)
01 (1250)
01 (1250)
02 (250)
02 (250)
08 (320)
Very bad 01 (200)
01 (200)
02 (200)
01 (200)
-
05 (20)
Either bad good 02 (1333)
03 (200)
02 (1333)
04 (2667)
04 (2667)
15 (600)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total It could be observed from the above Table 347 that 8080 percent of farmer
respondents are of the opinion that the quantity of services provided by the APMC is
good 320 percent of total sample size of farmer respondents are if the opinion that it
is bad and 80 percent of the respondents are of the opinion that it is very good It is
to say satisfy that 8880 percent of farmer respondents are of the opinion that the
service provided by APMC is good and above average Hardly 520 percent of the
respondents expressed that the service provided are bad or very bad and 60 percent of
them neither opinioned bad nor good ie they were neutral
88
Table-348
Customary Deduction
Name of the APMCs As per Bye Laws More than Bye Laws Total
Gulbarga 05 (100)
45 (900)
50 (200)
Bidar 04 (851)
43 (9149)
47 (188)
Koppal 05 (1020)
44 (8980)
49 (1960)
Raichur 05 (961)
47 (9039)
52 (2080)
Bellary 07 (1346)
45 (8654)
52 (2080)
Total 26 (1040)
224 (8960)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
The study was conducted to know the farmers responses towards the
customary deductions from the sale of agricultural produce Sample groups were
given option whether customary deductions were as per bye laws or more than bye
laws Large number of farmer ie more than 89 of sample size were strongly
opinioned that customary deductions were not according
89
CHAPTER-IV PERFORMANCE EVALUATION OF APMCs
All the regulated markets working in Karnataka are distinct organization
created under the special clause with the objective of bringing the socio-economic
changes not only in the agricultural marketing sector but also economy as a whole
The existence of regulated markets creates an environment that is more favourable to
the existence of competitive conditions and to bring about the harmonious relations
between the farmers and market functionaries These organizations have the special
features as compared with the other organizations so the service of funds of regulated
markets and uses of the regulated market would be different keeping this the
following para attempted to analyze their financial performance in terms of their
profit position and growth in profit income position expenditure position and other
relevant financial aspects
A) Sources of Income of Regulated Markets
As far as regulated market are concerned they are non-profit or non-trading
organizations established with the objective of providing marketing services facilities
and other amenities for the producer of agricultural products who is in need of these
services for the facilitation of the sale of their produce To ensure smooth and
efficient services to farmer seller APMCs are required to own their establishments
and staff such as commission agent trader hamal and others who are carrying out
various markets functions ie grading processing weighment etc Hence APMCs
need finance to meet their administrative and management expenses of a recurring
and non-recurring nature of expenses The basic infrastructures are needed in the
provision of amenities and other facilities requiring capital investment for creating
these facilities in the market yard Establishment of infrastructure facilities not only
enough but also they need to be maintained the SC maintenance expenses is of
recurring in nature APMCs also need to have the permanent staff to do all the
functions in the market yard involves the fixed expenditure in the form of salaries
wages etc This necessitates the APMCs to have the permanent and regular sources of
income to meet all these regular expenses of fixed in nature and some portion of
recurring expenditure
90
APMCs are also required to meet the recurring expenditure such as
maintenance of road expenditure building godowns market yard vehicles and
machinery After the initial investment in these facilities from the borrowed capital
APMCs need to make payment of interest on loans tax charges payment of salaries
printing and stationery etc are to be paid periodically The different sources of
incomes through which the APMCs are earning revenue are shown in the following
parts along with the various expenditures by the APMC in the market yard
I) Market Fees
The APMCs Act and other laws relating to the agricultural marketing has
authorized all the regulated markets to levy and collect the market fees on the
agricultural produce bought for sales in the market yard The collection of the market
fees is the major source of income to the market committee and also the major source
of finance which determines to a very great extent the pace of development of market
yards both in terms of facilities and infrastructure
In traditional agricultural marketing market fees were collected on the basis of
the quantity bought for sale but these days the Acts and rules have been amended
more suitably giving maximum power to market committee to collect market fees on
the advalorem basis The chief items of the marketing charges are the market fee that
should be paid to the market committee the weighment fee commission brokerage
hamali charges and grading charges etc
In Karnataka in the beginning the market fees imposed on the buyers at the
rate not exceeding 30 paise per Rs100- of produce bought The APMC Act was
amended in 1973 August by an ordinance and the market fee to be levied was raised
to one rupees and the ordinance was however replaced by an act The rate of market
fees on every arrivals of cattle is Rs5- for each animal and rupee one for every sheep
and goats
The act also given some provisions for cooperative society doing business
within the market yard market fees shall be imposed and collected at the rate of 80
paisa per Rs100- of produce bought whereas in case of any other traders it is at the
91
rate of one percent on their total purchases ie one rupees per 1000 rupees This may
be considered as the cause for slow growth of agricultural marketing in Karnataka in
general and Gulbarga division in particular
II) License Fees
The various market functionaries who are operating in the regulated markets
of the state are the commission agents trader broker store keeper grader stockiest
importer exporter and any other functionary are imposed licence fee by the market
committee The license fee is the second main source of income to regulated market
This fee is collected in lum-sum as specified in the APMC act annually from each
applicant The total sum of income from license fees depends on the number of
market functionaries and the rate of license fee for various categories of market
functionaries
APMCs are authorized by KAPM (I) Act 1966 to impose and collect the
license fees from each category of market functionaries The maximum license fee
that could be levied under the act by the market committee on different types of
functionaries are Rs200 from traders and commission agents Rs100- each from
broker processor exporter importer ginner and crusher Rs25- from retail trader
and a nominal amount of Rupees 5 from hamal or cart man
III) Penalty
Penalties for evasion of payment of fee are imposed by the market
committees Section 65 (A) or KAPM Act 1966 empowers the regulated market
committee to punish with fine of not less than 12 percent But this penalty should not
exceed 30 percent on the amount of market fee If the penalty is not paid within the
specified time under bye laws made under section 65 of the act in it desecration also
recover similarly and pay over to the market committee or the board such amount
IV) Other Income Sources
APMCs collect market fees license fees and penalty from defaulters the
market committees are also generating the incomes from the following sources
a) Income from own properties
b) Income from deposits
92
c) Sale of books and forms
d) Sale of grass and cow dung
e) Fire fighter rent
f) Transfer fees and registration fees
g) Sale of plots etc
1) Income Position of Selected Regulated Markets
The income information of 15 APMCs ie three APMCs from each districts
in Gulbarga division were collected by the researcher from their annual reports and
other financial statements The component of the various income sources and their
respective figures provide a good insight to their financial performance The trends in
the growth of total incomes and individual incomes over a five year study period ie
2009-10 to 2013-14 helps in understanding the performance of all the selected
APMCs
I) Income Position of Gulbarga APMC
The income position of selected APMCs in Gulbarga district over the five
years study period are shown in the Table 41 below
Table 41 reveals a steady growth in income to the Gulbarga APMC in all the
years of study Conspicuously the total income from all sources to APMC was
Rs21976lakhs in 2009-10 while it was increased to 87054 lakhs in 2013-14 with a
annual aggregate growth of 5922 percent over the previous years When we look at
the figures of market fees holds the lions share in contributing income which range
between 8605percent to 9294 percent The same fact was also found in the APMC
Shorapur and APMC Shahapur In APMC Shorapur the percentage of market fees in
total income was in between 8420 percent to 9745 percent In case of Shahapur
APMC it ranges between lowest 6422 percent to highest of 6610 percent The other
major sources from where the APMC generated income were license fees levy and
licence fee penalty and other incomes generated was in total percentage fall between
906 percentage to 1995 percent in Gulbarga APMC In Shahapur and Shorapur
APMC penalty income was negligible it was Rs 031 lakhs to Rs 891 lakhs in
Shorapur APMC and Rs 126 lakhs to Rs 563 lakhs in Shahapur APMC during the
period under study
93
Table-41
Statement of Income of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 25106
(8605) 27111 (8763)
39233 (9155)
68713 (9294)
79170 (9094)
2 License Fees 321 (110)
487 (157)
561 (130)
664 (089)
733 (084)
3 Levy and License Fee 2069 (709)
1822 (58)
1981 (462)
2055 (277)
2382 (273)
4 Penalty 1180 (404)
642 (207)
519 (121)
625 (084)
1177 (135)
5 Interest on Deposits and other Income
500 (172)
574 (293)
558 (132)
1575 (256)
3592 (414)
Total 21976 (100)
30936 (100)
42852 (100)
73932 (100)
87054 (100)
Sl No APMC Shorapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 6012
(9039) 5647
(9281) 9607
(9745) 11365 (9079)
18674 (8420)
2 License Fees 104 (156)
106 (174)
078 (079)
117 (093)
117 (052)
3 Levy and License Fee 128 (192)
120 (197)
054 (054)
338 (270)
486 (219)
4 Penalty 200 (300)
101 (166)
031 (031)
206 (164)
891 (401)
5 Interest on Deposits and other Income
207 (313)
110 (182)
088 (011)
491 (394)
2008 (908)
Total 6651 (100)
6084 (100)
9858 (100)
12517 (100)
22176 (100)
Sl No APMC Shahapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1436
(8422) 1563
(7854) 1722
(7163) 3888
(7793) 5812
(6610) 2 License Fees 080
(469) 114
(572) 219
(910) 250
(501) 679
(772) 3 Levy and License Fee 034
(199) 042
(211) 0158 (657)
269 (539)
1071 (1218)
4 Penalty 126 (739)
183 (919)
196 (815)
204 (408)
563 (640)
5 Interest on Deposits and other Income
029 (171)
088 (444)
109 (455)
378 (759)
667 (76)
Total 1705 (100)
1990 (100)
2404 (100)
4989 (100)
8792 (100)
Source Annual reports of APMC Gulbarga 2009-10 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
94
It can be concluded from the above three APMCs in Gulbarga district that
Gulbarga APMC leading first in generating income Shorapur APMC is in second
position followed by APMC Shahapur
II) Income Position of Bidar APMC
Three APMCs from the Bidar district were selected for the comparative study
The income level of these three APMCs for the five years research period is presented
in the Table 42
The income generated by the APMC Bidar was lower in the beginning years
of research period ie it was Rs 18275lakhs in 2009-10 Rs16443 lakhs in 2010-11
and Rs17575 lakhs in 2011-12 During end years of research period it increased to
Rs31805 lakhs in 2012-13 and Rs 30420 lakhs in 2013-14 A critical look of the
figures in all the years of selected APMCs in Bidar district indicates that market fees
was the major component of total income of APMC which comprises an approximate
of 7910 percent in lowest side and 9554 percent in highest side Lowest market
fees percentage was recorded in APMC Aurad during 2012-13 and the highest
percentage was registered in 2013-14 in AMPC Bidar
95
Table-42
Statement of Income of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 16744
(9162) 15043 (9148)
15593 (8870)
29256 (9198)
29065 (9554)
2 License Fees 486 (265)
363 (220)
436 (248)
688 (216)
577 (1089)
3 Levy and License Fee 320 (175)
239 (145)
334 (190)
477 (149)
338 (111)
4 Penalty 600 (328)
466 (283)
515 (293)
719 (226)
202 (066)
5 Interest on Deposits and other Income
125 (070)
332 (204)
697 (397)
665 (211)
238 (08)
Total 18275 (100)
16443 (100)
17575 (100)
31805 (100)
30420 (100)
Sl No APMC Bhalki 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1424
(8431) 1232
(8999) 2423
(8846) 3596
(8304) 5871
(8544) 2 License Fees 096
(568) 081
(591) 163
(595) 293
(676) 306
(445) 3 Levy and License Fee 123
(728) 021
(153) 043
(156) 189
(436) 214
(311) 4 Penalty 022
(130) 017
(124) 034
(124) 138
(318) 222
(323) 5 Interest on Deposits and other
Income 024
(143) 018
(133) 076
(279) 114
(266) 258
(377)
Total 1689 (100)
1369 (100)
2739 (100)
4330 (100)
6871 (100)
Sl No APMC Aurad 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 903
(8014) 886
(8478) 887
(8431) 1333
(7910) 1617
(7922) 2 License Fees 093
(825) 081
(775) 083
(788) 123
(729) 132
(646) 3 Levy and License Fee 055
(488) 054
(516) 052
(494) 118
(700) 181
(886) 4 Penalty 006
(053) 004
(038) 012
(114) 051
(302) 050
(241) 5 Interest on Deposits and other
Income 069
(615) 020
(193) 018
(173) 060
(359) 061
(302)
Total 1126 (100)
1045 (100)
1052 (100)
1685 (100)
2041 (100)
Sources Annual reports of APMCs Bidar for 2003- 04 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
96
The other major sources contributing to the income of the APMCs in Bidar
district were license fee which was 646 percent to 625 percent in Aurad APMC
445 percent to 676 percent in APMC Bhalki and 216 percent to 1089 percent in
Bidar district APMCs The total income of Bhalki APMC was not constantly
increased during the study period It was fell to Rs 1369 lakhs in 2010-11 but it
increased during last three years of research period reached to Rs 6871 lakhs in
2013-14 As far as APMC Aurad is concerned it was inceased only in 2012-13 and
2013-14 As far as APMC Aurad is concerned it was increased only in 2012-13 and
2013-14 It was fall in 2010-11 and 2011-12 ie Rs 1045 lakhs and Rs 1052 lakhs
respectively It can be seen in table 42
III) Income Position of Koppal APMC
The statement of income of selected APMCs in Koppal district for the five
years ie 2009-10 to 2013-14 are given in table 43 The income of Koppal APMC
Gangavati APMC and Kustagi APMC were collected and analyzed in the following
paragraphs
The income generation in each of the five years by the APMCs selected as
sample in Koppal district was in APMC Koppal it was between Rs 3709 lakhs in
2009-10 to Rs 11032 lakhs in 2013-14 In APMC Gangavati a recorded
performance was found in earning incomes ie Rs 51692 lakhs in 2009-10 increased
rapidly to Rs91123 lakhs in 2013-14 APMC Kustagi was found to be least
performance in generation of the income The highest income was colleted by it was
Rs 3346 lakhs in 2013-14 and lowest was found in 2009-10 ie Rs 1341 The
annual aggregate growth in income generation by Koppal APMC was 3948 percent
per year The overall growth in APMC Gangavati income was 7628 percent over the
beginning year of research period The overall growth of percentage in the income of
APMC Kustagi during the five years study period was 14952 percent
97
Table-43
Statement of Income of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3269
(8813) 4072
(6961) 5675
(9119) 5682
(8775) 10021 (9083)
2 License Fees 090 (242)
110 (188)
101 (162)
097 (149)
106 (096)
3 Levy and License Fee 062 (167)
193 (329)
133 (213)
187 (288)
207 (187)
4 Penalty 104 (280)
211 (360)
146 (234)
178 (271)
255 (231)
5 Interest on Deposits and other Income
184 (498)
1263 (2162)
168 (272)
331 (517)
443 (403)
Total 3709 (100)
5849 (100)
6223 (100)
6475 (100)
11032 (100)
Sl No APMC Gangavati 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 49044
(9487) 67016 (9724)
75834 (9692)
74674 (9363)
84042 (9223)
2 License Fees 236 (045)
287 (042)
311 (039)
303 (038)
569 (062)
3 Levy and License Fee 703 (135)
515 (074)
807 (103)
716 (089)
1038 (114)
4 Penalty 189 (036)
212 (030)
267 (034)
258 (032)
317 (034)
5 Interest on Deposits and other Income
1520 (297)
887 (130)
1020 (142)
3804 (478)
5157 (567)
Total 51692 (100)
68917 (100)
78239 (100)
79755 (100)
91123 (100)
Sl No APMC Kustagi 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1214
(9052) 1234
(9167) 1384
(8216) 2079
(8266) 2516
(7519) 2 License Fees 024
(178) 029
(215) 031
(184) 036
(143) 041
(122) 3 Levy and License Fee 014
(104) 016
(118) 026
(154) 055
(218) 063
(188) 4 Penalty 001
(007) 001
(007) 003
(017) 007
(027) 018
(054) 5 Interest on Deposits and other
Income 088
(659) 066
(493) 240
(1429) 338
(1346) 708
(2117)
Total 1341 (100)
1346 (100)
1684 (100)
2515 (100)
3346 (100)
Sources Annual reports of APMCs Koppal for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
98
The glance at the each income figures with respect to three APMC in Koppal
district reveals that market fees again dominant ie 6961 percent to 9724 percent to
total income of the APMC Other important heads from which the income was
derived were license fee 096 to 242 in Koppal APMC 038 to 062 in
APMC Gangavati and 122 to 215 in APMC Kustagi during the period under
consideration ie 2009-10 to 2013-14 The penalty fees collected by the APMC
Kustagi and APMC Gangavati were almost below one percent to total income and this
was above 2 percent in APMC Koppal A sizeable income ie 498 percent to 2117
percent has also been contributed under the head interest on deposits and other
income The trend in this income was more or less similar during all the years of
research period
IV) Income Position of Raichur APMC
The income position and growth in income position of selected APMCs in
Raichur district was presented in the Table 44 The income was shown for the study
period ie 2009-10 to 2013-14 Riachur is considered to be a commercial street the
volume of business is high as compared to the Lingasugur Sindnoor APMC has
acquired a good position in the Raichur district as compared to other APMC in the
district
Table 44 gives the various incomes acquired by the selected APMC in the
Raichur district Raichur as a commercial centre there would be large number of
market functionaries and large volume of transactions Hence the total income of the
market was obviously quite high (around Rs120202 lakhs annually) During 2009-10
the total income of APMC Raichur was Rs 48932 lakhs APMC Sindnoor was Rs
20629 lakhs and APMC Lingasugur was just Rs 2907 lakhs It was shown an
increasing trend in all the three APMC selected in Raichur district during all the five
years of research period Income was found in the year 2013-14 in the sample APMC
from Raichur district Income from the other sources ie penalty interest on deposits
sale of shops godowns and sale of books and forms were much higher as compared to
the corresponding incomes in the other years of study Such an increase in the total
income was noticed in the Table 44
99
Table-44
Statement of Income of Selected APMCs in Raichur District
(Rs In lakhs)
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 45972
(9395) 55687 (9542)
68293 (9491)
82847 (8275)
106917 (8894)
2 License Fees 314 (064)
326 (056)
335 (046)
336 (033)
347 (028)
3 Levy and License Fee 1218 (248)
1463 (250)
1525 (211)
1540 (153)
1617 (134)
4 Penalty 218 (044)
250 (040)
269 (037)
289 (028)
313 (026)
5 Interest on Deposits and other Income
1210 (249)
630 (110)
1528 (215)
15105 (1511)
11008 (918)
Total 48932 (100)
58356 (100)
71950 (100)
100117 (100)
120202 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 18106
(8776) 21418 (9410)
28650 (9523)
33937 (7914)
45905 (9281)
2 License Fees 212 (102)
209 (091)
238 (079)
226 (052)
258 (052)
3 Levy and License Fee 1029 (498)
658 (1289)
613 (203)
1569 (365)
1292 (261)
4 Penalty 819 (396)
309 (135)
386 (128)
2080 (485)
1108 (224)
5 Interest on Deposits and other Income
464 (228)
166 (075)
197 (067)
5069 (1184)
892 (182)
Total 20629 (100)
22760 (100)
30084 (100)
42881 (100)
49456 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 2016
(6934) 2361
(6367) 3457
(5687) 3702
(5632) 4221
(5582) 2 License Fees 084
(288) 161
(434) 219
(360) 379
(576) 397
(521) 3 Levy and License Fee 493
(1695) 552
(1488) 817
(1344) 871
(1325) 1017
(1344) 4 Penalty 032
(110) 064
(172) 186
(306) 213
(324) 286
(378) 5 Interest on Deposits and
other Income 282
(973) 570
(1539) 1399
(2303) 1408
(2143) 1641
(2172)
Total 2907 (100)
3708 (100)
6078 (100)
6573 (100)
7562 (100)
Sources Annual reports of APMCs Raichur for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
100
In order to see the composition of the total revenue of Raichur Sindnoor and
Lingasugur APMCs the income statement of 2009-10 to 2013-14 was considered A
detailed analysis at the figures in the table 44 indicates that a market fee was the
major contributor to the total income which contributed to the tune of 5582 percent
to 9542 percent The other major sources of revenue to the APMC are interest on
deposits (182 to 2172) Penalty income was contributed average in APMC
Sindnoor moderate in APMC Raichur and minor contribution in APMC Lingasugur
V) Income Position of Bellary APMC
In Bellary district development activities undertaken by the department of
agriculture are about increasing yield of kharif season and other seasons under
irrigation this has naturally increased the market turnover in the Bellary district
APMC The details of the income collected by the sample APMCs in Bellary district
is shown in the Table 45
Table 45 gives the details of an account of income of the APMCs selected
from the Bellary district for the analysis purpose A birdsrsquo eye view of the total
income figures during financial years indicate that the annual average income of the
APMC of Bellary was around Rs 33660 lakhs except during the first three years of
the study period The market fees collected during the study years was also ranged in
between the 8165 in 2009-10 to 8942 in 2013-14 Levy and license fees were
contributed to the extent of 306 to 806 to total income and penalty amount was
just only to 075 to 462 to total incomes
101
Table-45
Statement of Income of Selected APMCs in Bellary District
(Rs In lakhs)
Sl No APMC Bellary 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 13400
(8165) 19398 (8680)
24037 (8514)
35774 (8865)
54510 (8942)
2 License Fees 316 (192)
343 (153)
0392 (139)
399 (098)
346 (056)
3 Levy and License Fee 1323 (806)
1529 (684)
2001 (708)
1912 (473)
1870 (306)
4 Penalty 320 (194)
370 (165)
462 (163)
451 (111)
458 (075)
5 Interest on Deposits and other Income
1052 (643)
706 (318)
1338 (476)
1816 (453)
3775 (621)
Total 16411 (100)
22346 (100)
28230 (100)
40352 (100)
60959 (100)
Sl No APMC Hospet 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3458
(8051) 4335
(7629) 5075
(7924) 5561
(8158) 6811
(7884) 2 License Fees 089
(207) 086
(151) 097
(151) 108
(158) 132
(152) 3 Levy and License Fee 407
(948) 592
(1041) 636
(993) 663
(972) 892
(1032) 4 Penalty 041
(095) 166
(292) 215
(335) 217
(318) 289
(334) 5 Interest on Deposits and
other Income 300
(699) 503
(887) 381
(597) 267 (39)
515 (598)
Total 4295 (100)
5682 (100)
6404 (100)
6816 (100)
8639 (100)
Sl No APMC Siraguppa 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 9054
(9160) 11330 (9131)
25909 (9352)
31838 (9237)
45500 (8285)
2 License Fees 068 (068)
071 (057)
107 (038)
108 (031)
105 (019)
3 Levy and License Fee 363 (367)
341 (274)
491 (177)
492 (142)
535 (097)
4 Penalty 019 (019)
047 (037)
054 (019)
089 (026)
096 (017)
5 Interest on Deposits and other Income
381 (386)
619 (501)
1143 (414)
1939 (564)
8676 (1582)
Total 9885 (100)
12408 (100)
27704 (100)
34468 (100)
54912 (100)
Sources Annual reports of APMCs Bellary for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
102
As far as APMC Hospet and APMC Siraguppa are considered the market fees
collected by these APMCs were became major sources of income followed by levy
and license fees and penalty It is noticed from the same table that APMC Siraguppa
has made history in generation of income during 2012-13 and 2013-14 ie it earned
Rs 34468 lakhs and 54912 lakhs incomes respectively Almost the income was
jumped five times to beginning year income ie 9885 lakhs This clearly carries the
message that APMC Siraguppa was not performed consistency in financial
performance APMC Hospet has ensured stability in the performance but in terms of
amount of collection it was positioned third place in selected APMC in Bellary
district
B) Uses of Incomes by APMCs
1) Market Committee Fund
Incomes received by the market committees in the form of market fees
licence fees and other fees or incomes by way of penalty are used as per the Section
90 of KAPM (R) Act of 1966 All expenditure incurred by the committee under or for
the purposes of this Act shall be defrayed out of the market fund and any surplus
remaining at the close of each market year after such expenditure has been met shall
be credited to the permanent fund of the committee within the three months of the
close of the year and it shall be used only towards incurring the expenditure of
permanent nature such as construction of buildings acquisition of lands or such other
purposes as the Director of Agricultural Marketing may specify
After meeting all such expenditure excess shall be invested in state
cooperative Apex bank or other cooperative banks or government savings banks
account The KAPM (R) Act 1961 clearly defined the purposes for which the market
committee fund may be expanded beyond the above mentioned The fund so created
should be allowed to uses for the purpose laid down in this Act ie providing
facilities in the market areas payment of allowances arrangement of amenities such
as grading and standardization collection and dissemination of market information
settlement of disputes payment of interest on borrowed loans etc
103
II) Contribution to Consolidated Fund
All the marketing committees are bound to contribute some amount to
Karnataka State Agriculture Marketing Board The Director of Agricultural Marketing
estimates the approximate expenditure likely to be incurred by the state government
during a particular financial year an account of salary and other allowances and
election of the members of the market committees Taking all these estimated
expenditures under section 91 of the KAPM Act the Director of Agricultural
Marketing shall by order determine the percentage of gross receipts that every
market committee must and should contribute to the state consolidated fund of the
state
III) Contribution to KSAM Board
Agriculture section 92 of the Karnataka produce marketing Act has made a
provision to create ldquoMarketing Development Fundrdquo and it is managing by the KSAM
board Every market committee is required to contribute every month to the board 5
percent of the gross receipts during the previous calendar month
IV) Other Expenditures
A part from the contribution to market committee fund contribution to state
consolidated fund and contribution to KSAM Board market committees are also
necessary to meet the other expenses regularly such as administration expenses which
includes salary to staffs printing and stationary legal fee advertisement rent
electricity bill and maintenance charges Expenditure to provide amenities to market
functionaries and farmers and other miscellaneous
Expenditure Position of Selected APMCs in Gulbarga District
In this part an effort is made to analyze data relating to the total expenditures
incurred and components of expenditures with respective figures to get the depth of
knowledge about the trends in growth of expenditures over a period of 5 years
between 2009-10 to 2013-14
104
Table-46
Trends in Growth of Expenditure of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga
Years 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 I Contribution to state
consolidated fund 15732 (7016)
13575 (6562)
18231 (7200)
33150 (7215)
35676 (7225)
II Contribution to KSAM board
1933 (862)
1484 (750)
2216 (875)
4024 (876)
4197 (850)
III Administrative expenses 2708 (1208)
2396 (1211)
3076 (1215)
5514 (1200)
6004 (1216)
IV Expenditure on amenities
1713 (764)
1832 (926)
1327 (524)
2532 (551)
2696 (546)
V Miscellaneous 337 (150)
496 (251)
472 (186)
727 (158)
805 (163)
Total 22423 (100)
19783 (100)
25322 (100)
45947 (100)
49378 (100)
2 APMC Shorapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
1359 (4500)
4146 (4052)
4140 (4050)
3340 (3890)
2439 (5220)
II Contribution to KSAM board
473 (1565)
1751 (1711)
1750 (1712)
1556 (1812)
905 (1936)
III Administrative expenses 665 (2216)
2587 (2528)
2581 (2525)
2128 (2478)
1182 (2530)
IV Expenditure on amenities
440 (1458)
1586 (1550)
1534 (1501)
1285 (1496)
107 (228)
V Miscellaneous 079 (261)
070 (159)
005 (212)
277 (324)
040 (086)
Total 3020 (100)
10234 (100)
10223 (100)
8586 (100)
4673 (100)
3 APMC Shahapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
363 (4801)
703 (6701)
920 (5742)
2480 (6688)
2308 (6454)
II Contribution to KSAM Board
054 (714)
064 (610)
067 (418)
081 (218)
074 (206)
III Administrative expenses 154 (2037)
128 (1220)
252 (1573)
501 (1351)
489 (1367)
IV Expenditure on amenities
065 (860)
072 (686)
143 (892)
263 (709)
258 (721)
V Miscellaneous 120 (1580)
082 (783)
22 (1375)
383 (1034)
447 (1252)
Total 756 (100)
1049 (100)
1602 (100)
3708 (100)
3576 (100)
Source Annual reports of APMC Gulbarga for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
105
As that of the income position the analyses of the pattern of expenditure also
important as the functions of the regulated markets are constrained by the financial
limitations Here the study of expenditure dimension of regulated market was felt
necessary The pattern of the growth in expenditure has shown a steady pace during
2012-13 and 2013-14 in APMC Gulbarga It was very lowest in 2010-11 ie 19783
lakhs The major items of expenditures to which Gulbarga APMC Shorapur APMC
and Shahapur APMC were diverted include contribution to state consolidated fund
expenditure on amenities and contribution to KSAM board During the research
period the share contribution to state consolidated fund was ranged between 6562
to 7223 in Gulbarga APMC this percent of share in total expenditure was in
between 3590 to 5220 in APMC Shorapur and in APMC Shahapur it was
4801 to 6701 At the same time the contribution to KSAM board was almost
below 20 to total expenditure in all three APMCs selected in Gulbarga district
The administration expenses was found to be second major item of
expenditure in sample units of Gulbarga district It was all most stable in Gulbarga
APMC ie 12 and above 2216 to 25305 in Shorapur APMC and 1220 to
2037 in the Shahapur APMC The other expenses such as the security facilities
rent taxes electricity printing and stationary charges etc remained as minor
expenditure
II) Expenditure position of selected APMCs in Bidar District
The expenditure statement relating to the selected APMCs in Bidar district is
shown in the below Table 47 The percentage of individual expenditure to total
expenditure for the period of five years is also presented in the same table
A glance on the statement of trends in growth of expenditure in the selected
APMC in Bidar district reveals that the Bidar APMC had an annual expenditure
around Rs 145 lakhs In case of APMC Bhalki annual average expenditure was
around Rs 2118 lakhs and in APMC Aurad this amount was Rs 1701 lakhs
106
Table-47
Trends in Growth of Expenditure of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
6600 (7141)
10883 (7016)
8645 (6625)
10623 (6740)
13753 (7267)
II Contribution to KSAM board
1761 (823)
1260 (812)
1370 (1050)
1668 (1058)
1972 (1042)
III Administrative expenses
1382 (1496)
1945 (1254)
1249 (957)
1597 (1013)
2292 (1211)
IV Expenditure on amenities
275 (298)
462 (298)
1019 (781)
986 (568)
759 (401)
V Miscellaneous 225 (242)
961 (620)
766 (587)
888 (621)
149 (079)
Total 9243 (100)
15511 (100)
13049 (100)
15762 (100)
18925 (100)
2 APMC Bhalki 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
503 (5164)
619 (5213)
768 (4931)
1245 (4777)
2284 (5359)
II Contribution to KSAM board
069 (711)
076 (640)
184 (1183)
334 (1281)
889 (2085)
III Administrative expenses
380 (3902)
426 (3586)
547 (3510)
918 (3525)
858 (2013)
IV Expenditure on amenities
011 (112)
031 (265)
041 (260)
087 (335)
189 (444)
V Miscellaneous 012 (211)
036 (296)
018 (116)
023 (082)
042 (099)
Total 975 (100)
1188 (100)
1558 (100)
2607 (100)
4262 (100)
3 APMC Aurad 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
365 (5577)
188 (3067)
256 (3514)
486 (4065)
2185 (4113)
II Contribution to KSAM board
048 (740)
093 (1516)
089 (1219)
182 (1517)
782 (1471)
III Administrative expenses
211 (3210)
186 (3050)
243 (3341)
361 (3016)
1521 (2862)
IV Expenditure on amenities
014 (221)
105 (1725)
121 (1661)
150 (1255)
751 (1415)
V Miscellaneous 018 (252)
041 (642)
019 (265)
018 (147)
074 (139)
Total 656 (100)
613 (100)
728 (100)
1197 (100)
5313 (100)
Source Annual reports of APMC Bidar for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
107
From the table 47 it was clear that administrative expenses constitute 957
to 1496 in total expenses in APMC Bidar it was as high as compared to APMC
Bidar and APMC Aurad ie 2013 to 3902 during the research period In Aurad
the situation was completely different ie it ranged between 2862 to 3341
during the same period ie 2009-10 to 2013-14
The trends in the contribution to state consolidated fund also showed an
increasing and decreasing trend in all the three APMCs in Bidar district during the
plan period In Bidar APMC it was registered lowest contribution to state
consolidated fund in the year 2009-10 ie Rs 6600 lakhs and the highest in Rs
13753 lakhs in 2013-14 Similarly in case of APMC Bhalki lowest was recorded in
2009-10 ie Rs 975 lakhs and highest in the year 2013-14 ie Rs 4262 lakhs But
in APMC Aurad beginning year ie 2009-10 it was Rs 365lakhs decreased to Rs
188 lakhs in 2010-11 and again increased to maximum Rs 2185 lakhs in 2013-14
Apart from a sizeable proportion of expenditure (ie 116 to 961) was made
under the head miscellaneous
III) Expenditure position of selected APMCs in Koppal
The trends in the growth of total expenditure incurred by the sample APMCs
in the Koppal district is presented for the five years period ie 2009-10 to 2013-14 in
the below Table 48
Table 48 depicts the expenditure position of three APMCs selected for the
present study in the Koppal district A detailed analysis of this indicates that the total
expenditures incurred by APMC Koppal were increased through out the study period
from Rs 2217 lakhs in 2009-10 to Rs 6862 lakhs in 2013-14 The same situation
was also found in case of APMC Gangavati ie Rs 29714 lakhs in 2009-10
increased to Rs 54160 lakhs in 2013-14 and in APMC Kustagi total expenditure was
Rs 4015 lakhs in 2009-10 raised to Rs 6295 lakhs in 2013-14
108
Table-48
Trends in Growth of Expenditure of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
1157 (5217)
1522 (5071)
2205 (5316)
2261 (5555)
4023 (5862)
II Contribution to KSAM board
143 (646)
224 (748)
307 (741)
287 (705)
537 (782)
III Administrative expenses
668 (3014)
944 (3147)
1167 (2813)
1101 (2704)
1720 (2506)
IV Expenditure on amenities
226 (1019)
267 (891)
333 (805)
332 (815)
480 (700)
V Miscellaneous 023 (104)
044 (143)
137 (325)
091 (221)
102 (150)
Total 2217 (100)
3001 (100)
4149 (100)
4072 (100)
6862 (100)
2 APMC Gangavati 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
15819 (5324)
23396 (5410)
28621 (5450)
27388 (5470)
29896 (5520)
II Contribution to KSAM board
1902 (640)
2422 (560)
2757 (525)
2753 (550)
3629 (670)
III Administrative expenses
8338 (2806)
12541 (2900)
15807 (3010)
14821 (2960)
15381 (2840)
IV Expenditure on amenities
3310 (1114)
4329 (1001)
4989 (950)
4657 (930)
4604 (850)
V Miscellaneous 345 (116)
558 (129)
342 (065)
451 (090)
650 (120)
Total 29714 (100)
43246 (100)
52516 (100)
50070 (100)
54160 (100)
3 APMC Kustagi 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2168 (5400)
2357 (5610)
2498 (5520)
2647 (5620)
3607 (5730)
II Contribution to KSAM board
225 (560)
189 (450)
288 (660)
363 (770)
535 (850)
III Administrative expenses
1169 (2913)
1195 (2845)
1326 (2930)
1232 (2615)
1711 (2718)
IV Expenditure on amenities
422 (1050)
405 (965)
319 (705)
396 (840)
319 (507)
V Miscellaneous 031 (077)
056 (130)
094 (185)
072 (155)
123 (195)
Total 4015 (100)
4202 (100)
4525 (100)
4710 (100)
6295 (100)
Source Annual reports of APMC Koppal for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
109
When we look at the percentage of specific expenditure in the total
expenditure contribution to state consolidated fund was major component ie in
Koppal APMC 5071 to 5862 in APMC Gangavati 5324 to 5520 and in
APMC Kustagi 54 to 5730 during the plan period However contribution to
KSAM Board constitute an annual average around Rs 3 lakhs per year in APMC
Koppal Rs 2693 lakhs per year in APMC Koppal Rs 2693 lakhs per year in
APMC Gangavati and Rs 32 lakhs per year in APMC Kustagi Administration
expenses also got secondary importance in the expenditure position followed by the
expenditure on amenities in the market yard Miscellaneous expenditure constitutes a
negligible percentage in the total expenditure
IV) Expenditure position of selected APMCs in Raichur
Table 49 depicts the year wise total expenditure spent by the sample
APMCs in the Raichur district during the five years period of study ie 2009-10 to
2013-14 Table 49 reveals that the expenditure incurred by the APMC Raichur was
not constantly increased It was decreased in 2010-11 and 2011-12 indicating that it
was more efficient in control of expenditure but during last two years of plan period it
increased from Rs44965 lakhs in 2009-10 to Rs67431 lakhs in 2013-14 with annual
aggregate growth over pervious year Rs4493 lakhs
In case of Sindnoor APMC the annual growth during the study period was
Rs3835 lakhs over the previous year As far as APMC Linagsugur is concerned this
was Rs 564 lakhs A keen observation on the expenditure statement of selected
APMCs in Raichur district points out that the APMC Raichur has got first rank in
terms of the total expenditure incurred among the selected APMCs in the district
followed by the APMC Sindnoor and APMC Lingasugur respectively As use well
contribution to state consolidated fund remained the dominating expenditure in the
total expenditure followed by expenditure on amenities Administration expenses and
contribution to KASM Board The state consolidated fund which was eaten away the
major position of total expenses (6535) to 7238 in Raichur APMC 5518 to
5730 in APMC Sindnoor and 5518 to 5730 in APMC Sindnoor and 5566 to
600 in APMC miscellaneous expenses remained minor expenses in total expenses
110
Table-49
Trends in Growth of Expenditure of Selected APMC in Raichur District
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 31862 (7086)
24764 (6535)
30247 (7100)
39880 (7238)
21275 (3155)
2 Contribution to KSAM board
3795 (0844)
5135 (1355)
5197 (1220)
6391 (1160)
3539 (525)
3 Administration expenses 5216 (1160)
4036 (1065)
4090 (960)
4849 (880)
(1550)
4 Expenditure on Amenities 2905 (646)
2065 (545)
2185 (513)
3471 (630)
(4210)
5 Miscellaneous 1187 (264)
1894 (500)
882 (207)
508 (092)
(560)
Total 44965 (100)
37894 (100)
42601 (100)
55099 (100)
67431 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 6283
(5655) 7740
(5518) 11182 (5685)
14152 (5690)
17353 (5730)
2 Contribution to KSAM board
833 (750)
1000 (713)
1241 (631)
1644 (661)
1968 (650)
3 Administration expenses 589 (530)
588 (419)
1017 (517)
1300 (523)
1332 (440)
4 Expenditure on Amenities 3350 (3015)
4418 (3150)
5959 (3030)
7496 (3014)
9443 (3118)
5 Miscellaneous 0050 (050)
280 (200)
270 (137)
279 (112)
188 (062)
Total 11111 (100)
14026 (100)
19669 (100)
24871 (100)
30284 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 1102
(5566) 1364
(5818) 2193
(5910) 2674
(6130) 2879
(6000) 2 Contribution to KSAM
board 127
(640) 331
(1431) 382
(1030) 689
(1580) 773
(1612) 3 Administration expenses 159
(804) 144
(614) 394
(1061) 267
(611) 362
(755) 4 Expenditure on Amenities 500
(2530) 483
(2060) 673
(1814) 628
(1440) 710
(1480) 5 Miscellaneous 092
(460) 023
(095) 069
(185) 104
(239) 074
(153) Total 1980
(100) 2345 (100)
3711 (100)
4362 (100)
4798 (100)
Source Annual reports of APMC Raichur for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
111
V) Expenditure position of selected APMCs in Bellary
In the Table 410 the details of the various expenditure incurred by the three
APMCs which are taken for the research as sample in the Bellary district are shown
clearly along with individual expenditure percentage to total
The total expenditure for all the five years of the study and the details of
expenditure under each heads along with the percentage to total of Bellary APMC
indicates that a rapid growth was found in total expenditure ie Rs 8835 lakhs in
2009-10 increased to Rs 33116 lakhs in 2013-14 with compound annual growth
during study years 27482 This compound growth in the APMC Hospet was found
to be negative in 2010-11 and 2013-14 and positive in 2011-12 and 2012-13 In case
of Siraguppa APMC the compound growth was 47147 during research period
112
Table-410
Trends in Growth of Expenditure of Selected APMC in Bellary District
(Rs In lakhs)
Sl No APMC Bellray
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
4477 (5067)
3860 (2767)
4820 (2026)
6933 (2811)
10076 (3042)
II Contribution to KSAM board
746 (844)
643 (461)
1803 (758)
1155 (468)
1679 (507)
III Administrative expenses
3310 (3746)
4673 (3350)
15965 (6711)
16011 (6490)
20499 (6190)
IV Expenditure on amenities
276 (312)
159 (114)
1190 (500)
558 (226)
838 (253)
V Miscellaneous 026 (031)
011 (007)
008 (005)
011 (005)
024 (008)
Total 8835 (100)
13946 (100)
23766 (100)
24668 (100)
33116 (100)
2 APMC Hospet 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2406 (7014)
2210 (7161)
2852 (6562)
2961 (6860)
2460 (7176)
II Contribution to KSAM board
320 (932)
216 (700)
416 (957)
429 (993)
317 (924)
III Administrative expenses
481 (1402)
418 (1354)
425 (978)
402 (931)
418 (1219)
IV Expenditure on amenities
114 (332)
101 (327)
269 (618)
219 (507)
125 (365)
V Miscellaneous 109 (320)
141 (458)
384 (885)
305 (709)
108 (316)
Total 3430 (100)
3086 (100)
4346 (100)
4316 (100)
3428 (100)
3 APMC Siraguppa 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
4088 (5154)
4055 (5011)
7662 (4813)
9122 (4313)
28595 (6310)
II Contribution to KSAM board
564 (711)
544 (672)
1238 (778)
1581 (748)
2626 (579)
III Administrative expenses
3030 (3820)
2903 (3587)
5026 (3157)
6919 (3271)
9763 (2154)
IV Expenditure on amenities
167 (211)
293 (362)
883 (555)
1477 (698)
2888 (637)
V Miscellaneous 082 (104)
297 (368)
1111 (697)
2051 (970)
1452 (320)
Total 7931 (100)
8092 (100)
15920 (100)
21150 (100)
45324 (100)
Source Annual reports of APMC Bellary for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
113
C) Profit Position
Profit is the excess of income over expenditures by the organization Profit is
the best indicator of the performance of any organization Higher the profit higher is
the efficiency and vice-versa APMCs are established not for profit motive but profits
remain important for their survival for future An attempt here is made to know profit
position by taking income and expenditure of all the selected APMCs in the Gulbarga
division and conclusion is drawn about their performance by comparing in APMC
with other APMC and also level of performance during the period under study
Table 411 depicts the year wise income expenditure and profitloss position
of the selected APMCs in the Gulbarga district The income of the three sample
APMCs from the Gulbarga district was shown an upward trend during the research
period ie 2009-10 to 2013-14 expect in the year 2010-11 the APMC Shorapur
income was down to Rs 6084 lakhs from Rs 6651 lakhs in 2009-10 When we see
the expenditure position of all the APMCs in the same table neither it was constantly
increasing or decreasing over a period of time it was showing zigzag trend Expect
the Shahapur APMC remained increasing during the plan period from Rs 756 lakhs
in 2009-10 to Rs 3576 lakhs in 2013-14
114
Table-411
Profit Position of Selected APMC in Gulbarga District
(Rs In lakhs)
Year Gulbarga Shorapur Shahapur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 29176 22423 6753 6651 3020 3631 1705 756 949
2010-11 30936 19783 11153 6084 10234 - 4150 1990 1049 941
2011-12 42852 25322 17530 9859 10223 0364 2404 1602 802
2012-13 73932 45947 27984 12517 8586 3931 4989 3708 1281
2013-14 87054 49378 37676 22176 4673 17502 8792 3576 5216
Source Annual Reports of Gulbarga APMC for 2009-10 to 2013-14
115
The detailed study of profit position of the selected APMC in Gulbarga district
also indicates that Shahapur APMC has made average amount of the profit in research
period without incurring any loss in the same period But APMC Shorapur had made
huge loss in the year 2010-11 ie Rs 4150 lakhs during heavy expenditures As per
APMC Gulbarga is concern profit was increased steadily from Rs 6753 lakhs in
2009-10 to Rs 37676 lakhs in 2013-14 with an annual aggregate growth of Rs 6184
lakhs per year
The Table 412 reveals that the profit or loss position of the selected APMCs
in Bidar district The analysis of profit of above APMCs in the table indicates that
Bidar APMC has positioned first in earning profit among three APMCs followed by
Bhalki APMC and APMC Aurad During the research period APMC Aurad had
incurred to Rs 3271 lakhs in 2013-14 The profit of Bidar APMC was ranged in
between Rs 932 lakhs to Rs 16042 lakhs and APMC Bhalki it was lowest to Rs
181 lakhs to highest Rs 2608 lakhs Both income and expenditure of Bidar APMC
was increased rapidly over a period time But in case of Aurad APMC the degree of
growth of expenditure was greater than the degree of growth in income which
reported slow growth in the profit The situation was different in case of APMC
Bhalki it was opposite and was almost 4 times increased in APMC Bhalki ie from
Rs 714 lakhs to Rs 2608 lakhs profit remained stable in APMC Aurad ie in
between Rs 323 lakhs to Rs 16042 lakhs in APMC Bidar during the period under
consideration
116
Table ndash 412
Profit Position of Selected APMCS in Bidar District
(Rs In lakhs)
Year Bidar Bhalki Aurad
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 18275 9243 9031 1689 975 714 1126 656 469
2010-11 16443 15511 932 1369 1188 181 1045 613 432
2011-12 17575 13049 4526 2739 1558 1181 1052 728 323
2012-13 31805 15762 16042 4330 2607 1722 1685 1197 487
2013-14 30420 18925 11495 6871 4262 2608 2041 5313 - 3271
Source Annual Reports of Bidar APMC for 2009-10 to 2013-14
117
The Table 413 deals with the trends in growth of income expenditure and
profit position of sample group of APMCs from the Koppal district Koppal district
APMCs were considered to be minor APMCs in the Gulbarga division A micro study
of these three APMCs in Koppal district reveals that APMC Gangavati was a leading
APMC in the Koppal district as it made super profit during the research period as
compared to APMC Koppal and AMPC Kustagi APMC Koppal has made average
profit ie Rs 1492 lakhs to Rs 4170 lakhs and APMC Kustagi has made normal
profit ie from Rs 540 lakhs to Rs 3995 lakhs during the five years study period
ie 2009-10 to 2013-14 Increased expenditures in APMC Koppal and APMC
Kustagi was eaten the profit
Profit position of the three APMCs from the Raichur district for the period of
five years ie 2009-10 to 2013-14 is shown in the Table 414 The table clearly
shows the year wise income position and its growth expenditure position and its trend
and the profit trend Among these three APMCs selected in sample from the Raichur
district Raichur APMC has earned highest amount of income which resulted highest
profit during the study period as compared to the APMC Sindhnoor and APMC
Lingasugur The profit of APMC Raichur was Rs20629 lakhs in 2009-10 increased
to Rs 45018 lakhs in 2013-14 during the research period During the same period
the profit of APMC Sindhnoor was increased from Rs 9518 lakhs to Rs 19171
lakhs and APMC Lingasugur from Rs 1327 to Rs 2201 lakhs with percentage
growth of almost 100 and 9026 respectively
118
Table-413
Profit Position of Selected APMCs in Koppal District
(Rs In lakhs)
Year Koppal Gangavati Kustagi
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 3709 2217 1492 51692 29714 21977 1185 645 540
2010-11 5849 3001 2848 68917 43246 25671 1346 775 571
2011-12 6223 4149 2074 78239 52516 25722 1684 1005 679
2012-13 6475 4072 2403 79755 50070 29684 2514 1469 1045
2013-14 11032 6862 4170 91123 54160 36963 10291 6295 3995
Source Annual Reports of Koppal APMC for 2009-10 to 2013-14
119
Table-414
Profit Position of Selected APMCs in Raichur District
(Rs In lakhs)
Year Raichur Sindnoor Lingusugur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 40895 19035 21859 20629 111111 9518 3761 2434 1327
2010-11 48932 44965 3966 22760 14026 8734 2907 1980 926
2011-12 58356 37894 20462 30084 19669 10414 3708 2345 362
2012-13 71950 42601 29348 42881 24871 18009 6078 3711 2367
2013-14 100117 55099 45018 49455 30284 19171 7562 4362 2201
Source Annual Reports of Raichur APMC for 2009-10 to 2013-14
120
The Table 415 reveals the year wise profit made by the sample APMCs in the
Bellary district APMC Hospet has made least profit during all five years research
period but it increased from Rs 864 lakhs in 2009-10 to Rs 5211 lakhs in 2013-14
APMC Bellary had achieved significant progress in earning profit as compared to
APMC Siraguppa The profit of APMC Bellary steadily increased around 4 times
over the beginning year ie Rs 7576 lakhs in 2009-10 to Rs 27843 lakhs in 2013-
14 But the APMC Sirguppas profit was highest recorded in 2011-12 and 2012-13 ie
Rs 11784 lakhs and Rs 13315 lakhs respectively
121
Table-415
Profit Position of Selected APMCS in Bellary District
(Rs In lakhs)
Year Bellary Hospet Siragoppa
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 16411 8835 7576 4295 3430 864 9885 7931 1954
2010-11 22346 13946 8399 5682 3086 2596 12408 8092 4316
2011-12 28230 23786 4444 6404 4346 2058 27704 15920 11784
2012-13 40352 24682 15670 6816 4316 2499 34466 21150 13315
2013-14 60959 33116 27843 8639 3428 5211 59912 45324 9587
Source Annual Reports of Bellary APMC for 2009-10 to 2013-14
122
CHAPTER-V FINDINGS SUGGESTIONS AND CONCLUSION
FINDINGS
1 During field study the researcher found that all the APMCs working in
Gulbarga division are suffered storage facilities in general and cold storage
facilities in particular This calls for medium and big producers to take storage
facilities by paying heavy fees to private service provider
2 The field investigation resulted that the farmers have been experienced
difficulties in getting timely payment even after the sale of their produce
3 It is learnt from the field study of market participant that larger participant
were qualified upto secondary and the technical qualification such as ITI
Diploma etc Education among market participant is considered to be most
significant factor in discharging their duties and responsibilities more
efficiently and effectively
4 The analysis of nature of participant in the agricultural market revealed that
commission agents were dominant in the total market participant followed by
traders with 25 of sample group and Hamalas which constitute 16 of
sample size
5 Macro studies of facilities at the APMC yard in five districts of Gulbarga
division opinioned the lack of facilities ie Non-availability of drinking water
canteen transport and communication facilities etc One sample lsquoTrsquo test was
applied and the result shows that lsquotrsquo values ranged for above facilities between
46425 to107000 Mean difference was found between 14400 to 2000
6 The correlation between two variable ie advance money and number of
commodities was +0611 which is insignificant Similarly the correlation
between transport facility and role of government in market and graduation
facility with more representatives from farmers resulted 0445 and 0948 also
in significant but the only significant factor found between difficulty of
storage and increase in facilities with a value of 0508
7 There are different sources of incomes available to APMC These sources may
be classified like market fees licence fees penalty etc Among these sources
123
of income market fees collected by APMC were major but other incomes are
also envisaged in KAPM (R) Act 1966
8 The expenditure position of the selected APMCs in Gulbarga division which
covers five districtrsquos found that major use of expenditure by each APMCs
were contribution to state consolidated fund and contribution to KSAM Board
which was ranged between 3042 to 7210 and 564 to 2630
respectively
9 There are only three charges allowed for deduction from the sale produced of
farmers in Gulbarga APMC division they are commission to agents Hamali
and weighment Field investigation by researcher found that these charges are
nominal
SUGGESTIONS
1 To achieve its (APMC Act) objectives and for effective implementation of its
bye law and policies it is suggested that APMCs should open its branches at
Hobli level so that they may help and guide the formers in marketing of their
grown agricultural produce
2 It is recommended to all APMCs in Gulbarga division to take efforts to stop
rural marketing to get better price An inspection team has to be formed to
stop local sales The team member should visit all the villages coming under
the jurisdiction of the APMC during Post harvest
3 Lots of changes have to be brought into the marketing activities in the APMC
yard Scientific grading and enlightment for all commodities in the market
yard be made compulsory in a phased manner
4 Illiteracy of formers and lack of Medias for communication of information has
been a big problem in rural as well as semi-urban areas The information
obtained should be in a position to help them in decision making Hence it is
recommendable to each APMC for equipping the intelligence cell and branch
offices with highly qualified and trained staff to perform the job quicker to
help producers at right time
5 The existing facilities of processing and storage in all the APMC of Gulbarga
division are inadequate This gap need to be filled up The local government
administrative bodies financial agencies and APMCs should motivate the
124
processing units to be set up and also more godowns are to be encouraged for
construction in these areas
6 Proper co-ordination between the financial agencies established by APMCs or
any other organization to be set up for this purpose is necessary This
definitely prevent the exploitation of farmers by private financiers This
problem needs to be tackled on priority basis in Gulbarga division
7 To avoid the injustice at the time of weighment of farm produce on arrival
and sale APMCs needs to make it compulsory to install electronic weighting
machines The issue of weighment note to the agriculturist by agents is made it
compulsory
8 As far as Gulbarga division APMCs are concerned they have completely
neglected the importance of two marketing services ie assembling and
processing The absence of these two services in the study area is a reflection
on its lethargic and indifferent attitude in providing a comprehensive package
of marketing services to the rural farmers
9 Lots of changes have to be brought into the payment to the farmers after sales
The strong actions against the defaulting commission agent should be
exercised and also cautioned against such delays on their part when any
complaint from the farmers regarding the delay In this regard formulation of
rigid policy is recommended at all APMCs
10 Some of the APMCs in Gulbarga division are still practicing mutual
negotiation method of sale this leads unfavourable price for the agricultural
produce Auction system of sale is made compulsory for all commodities
arriving in the market yard and negotiation method is to be prohibited
11 It was noticed from the market yard during the field visit different types of
malpractices on the part of the unscrupulous market functionaries In order to
eliminate this harassment to farmers the marketing committee has to detect
such unethical practices from market participants and they be severely
punished with fine and imprisonment
12 To improve the overall quality of services (marketing services and
infrastructure facilities) it is strongly advisable to marketing committees to
implement all the provisions lay down in KAPM (R) Act 1966 and rules in
1968 along with suggestions made by Indian standards Institute (RSI) for the
benefit market functionaries in general and farmers in particular
125
13 A network of rural storage centres should be built on a priority basis in order
to prevent distress sales wastage and loss arising out of inadequate and
defective storage facilities
14 These storage centres may be constructed and managed by panchayats
cooperatives and other suitable agencies selected by the State Government
15 Farmers should be provided with receipts for the commodities stored by them
Each receipt should be a negotiable instrument to enable them to obtain credit
from banks
16 The banks should provide credit to the extent of 90 percent of the value of the
stocks stored by the farmers and the credit should be provided at concessional
rates of interest
17 Arrangements for the display of prices on notice boards at important public
places like hospitals schools panchayat ghars etc should be made
18 There must be proper coordination between market intelligence and policy
making departments so that the later may better understand the problem and
can make such adjustments in the information as may be called for
CONCLUSION
Indiarsquos long-neglected agriculture sector is all set to grow faster We have
improved a lot since independence In the last few years it has grown at an average
rate of 31 only and there is a need to step up the growth in this sector Then only
Indiarsquos GDP growth cross 9 and rural income and rural employment increases
It is time to APMCs to give concrete shape to the agro-industrial integration
by starting industrial units based on agricultural raw-materials This integration will
create a better economic atmosphere for the growth of the Karnataka region as well as
Gulbarga division
126
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127
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128
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43 Neelamegham S Marketing Management and the Indian Economy Vikas
Publishing House Pvt Ltd New Delhi 1978
44 Padberg D I C Ritson and L M Albisu 1997 Agro-Food Marketing
45 Polopolus LC and Jesus Alvarez 1991 Marketing Sugar and other
Sweeteners (Developments in Agricultural Economics)
46 Prabhakar Rao Marketing Efficiency in Agricultural Production Himalaya
Publishing House Mumbai 1985
47 Procurement guidelines under National Agricultural Technology Project
MANAGE-NATP series 4 2000
48 Raghavendran T 2001 Disbursement Procedure for World Funded Projects
(A Guide to Project Implementing Agencies) by MANAGE-NATP series 5
49 Rajagopal Development of Agricultural Marketing in India Print well Jaipur
1996
50 Ralph M Chite 2007 HTML Agricultural issues in the 109th Congress An
article from Congressional Research Service (CRS) Reports and Issue Briefs
129
51 Ramesh Chand and V P S Arora (Ed) Agricultural Input and Output
Market Reforms in India Advance Publishing Concept New Delhi-11 0064
2000
52 Ramesh Chand Agricultural Development Price Policy and Marketed Surplus
in India (Study of Green Revolution Region) Concept Publishing Company
New Delhi-11 0059 1991
53 Rao NGP Perumal N Ghosal SL 1997 Training for Agriculture
Development
54 Sarveshwara Rao and G Parthasarthy Regulated Markets and Public Policy
Book links Corporation Hyderabad
55 Secondo Tarditi Kenneth J Thomson Pierpaolo Pierani and Elisabetta Croci-
Angelini 1989 Agricultural Trade Liberalization and the European
Community
56 Seetharaman S P Agricultural Input Marketing Oxford and IBH Publishing
Co New Delhi
57 Singh J P and Kareem M A 2001 Economic Evaluation of Participatory
Adaptive Research Project
58 Singh J P 2000 Economic Evaluation of Manchal Watershed
59 Singh J P 2000 Socio Economic Dynamics and Development Strategy for
Participatory Adaptive Research Project (PAR)
60 Singh J P 2002 Evaluation of Participatory Adaptive Research Project K
H Vedini 2001 Agriculture Marketing Interventions amp Innovations
61 Singh Rajkumar Agricultural Price Policy in India Print well Publishers
Jaipur
62 Singh J P Chandrasekhar P Kumar TDS and Lakshmi Murthy
2000 Israelrsquos Agriculture (Achievement through innovation and
Technology)
63 Singhal A K 2009 Agricultural Marketing in India by publisher Anmol
Publications pages 246
64 Singhal AK 1989 Agricultural marketing in India
65 Singhal A K Agricultural Marketing in India Anmol Publications New
Delhi 1989
66 Southworth Herman Some Studies on Fresh Fruits and Vegetable Marketing
in Asia Agricultural Development Council Bangkok Thailand 1974
130
67 Subba Rao K Agricultural Marketing and Credit ICSSR New Delhi 1985
68 Tyagi D S Managing Indias Food Economy-Problems and Alternatives
Sage Publications India Pvt Ltd New Delhi 1990
69 Vedini K H 2000 Management Issues in Rainfed Agriculture in India
70 Venkateswarulu J 1999 Technical Manual on Watershed Management
(Series (II) Resource(III)Arable Cropping Systems (IV) Non-Arable
Cropping Systems (V) Non-farming Systems amp Watershed in Retrospect
Conservation)
71 Vijay Gaatha 2002 Agripreneurs Documents 24 success stories of
agripreneurs with 40 different types of projects
72 Vijender Agricultural Marketing in India The Mandi System
JOURNALSMAGAZINES
1 Indian Journal of Agricultural Economics - Quarterly The Indian Society of
Agricultural Economics 46-48 Esplanade Mansions MG Road Fort
Mumbai-400001
2 Agricultural Situation in India - Monthly Directorate of Economics and
Statistics Ministry of Agriculture Government of India New Delhi
3 Indian Agriculture in Brief - Annual Directorate of Economics and Statistics
Ministry of Agriculture Government of India New Delhi
4 Yojana - Monthly Ministry of Information and Broadcasting Government of
India New Delhi
5 Economic Survey - Annual Ministry of Finance Government of India New
Delhi
131
APPENDIX-I QUESTIONNAIRE
QUESTIONNAIRE FOR FARMERS
1) Name of the Farmerhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Name of the village and district helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3) Age (in years)
a) Below [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
4) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P G and others [ ]
5) Sources of income
a) Agriculture [ ] b) Business [ ]
c) Employment [ ] d) Others [ ]
6) Annual gross income (In Rs)
a) Agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Non agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
7) Type of family
a) Nuclear family [ ] b) Joint family [ ]
c) Individual (single) [ ]
8) Number of family members
a) lt 4 [ ] b) 4 ndash 8 [ ]
c) 8 ndash 12 [ ] d) 12 and above [ ]
9) Total agricultural land holding (In Acres)
a) Below 5 Acres [ ] b) 5 ndash 10 Acres [ ]
c) 11 ndash 15 Acres [ ] d) Above 16 Acres [ ]
10) Crops grown in land with quantity per annum
Qty (in Quintals)
a) Red gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Green gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) Black gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) Jowar helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
e) Maize helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
f) Bajra helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
132
g) Bengal gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
h) Sugarcane helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
i) Others helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
11) Sale of agricultural produces
a) Open market [ ] b) APMC [ ]
c) Confirmation Agriculture [ ] d) Others [ ]
12) Preference of sale of agricultural produce
a) Local market [ ] b) Taluka market [ ]
c) District market [ ] d) Other state [ ]
13) How you carry agricultural produce to APMC
a) Bullock cart [ ] b) Tractor and trucks [ ]
c) Hired vehicle [ ] d) Own vehicle [ ]
14) Market charges of the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
15) Carrying cost paid in the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
16) Facilities provided by the APMC
Yes No
a) Water [ ] [ ]
b) Toilet [ ] [ ]
c) Canteen [ ] [ ]
d) Communication [ ] [ ]
e) Shopping property [ ] [ ]
f) Marketing information [ ] [ ]
g) Other facilities (if any) [ ] [ ]
17) Sources for dissemination of marketing information
a) News paper [ ]
b) Radio and Television [ ]
c) Dept of the government [ ]
d) Post and Telephone [ ]
e) Price bulletins [ ]
f) Personal contact [ ]
133
18) Rank the defects in regulated markets
a) No advance money [ ]
b) Difficulty of storage [ ]
c) Lack of transport facility [ ]
d) Lack of gradation facility [ ]
19) Rank the facilities to improve market efficiency
a) More number of commodities [ ]
b) Increases in facilities [ ]
c) More role of government [ ]
d) More representation from farmers [ ]
e) Reduction in market fees [ ]
20) Weather APMC provides adequate transport services
a) Yes [ ] b) No [ ]
21) Weather APMC provides adequate storage facilities
a) Yes [ ] b) No [ ]
22) Does APMC has cold storage facilities at warehouse
a) Yes [ ] b) No [ ]
23) What is the monthly storage cost of your produce at APMC
Rs helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
24) Whether APMC helps you for processing of your produce
a) Yes [ ] b) No [ ]
25) Do you satisfied with processing services provided by processors
a) Yes [ ] b) No [ ]
26) Processing fees paid to processors
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
27) Whether grading facilities are available at the APMC
a) Yes [ ] b) No [ ]
28) Do you satisfied with grading services provided by graders
a) Yes [ ] b) No [ ]
29) Are the graders trustworthy
a) Trustworthy [ ] b) Not trustworthy [ ]
30) Whether APMC provides efficient weighment of produce
a) Yes [ ] b) No [ ]
134
31) Do you satisfied with cost charged for weighment of produce
a) Yes [ ] b) No [ ]
32) Whether electronic weighing balancesmachine have been installed in
markets
a) Yes [ ] b) No [ ]
33) Causes of the defects in weighing
a) Absence of licensed weighman [ ]
b) Under weighing [ ]
c) Favouring for buyer [ ]
d) Faulty weights [ ]
e) Faculty weight machines [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
34) Grading of produce helps in the ways
a) Easy marketing [ ]
b) Reduction of cost [ ]
c) Higher prices [ ]
d) Encourage competition [ ]
e) Easy to get finance [ ]
35) Whether APMC provides market information on time to time
a) Yes [ ] b) No [ ]
36) If lsquoNorsquo what are the defects in market information
a) Ignore retail prices [ ]
b) Delay in news [ ]
c) Wide range of prices [ ]
d) Incomplete information [ ]
e) Illiteracy [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
37) Processing of produce helps to you in the ways
a) Add the value [ ]
b) Preservation for longer period [ ]
c) Less cost of production [ ]
d) Wide extent of the market [ ]
e) Use of surplus food [ ]
135
38) Do you insure your agricultural produce at APMC
a) Yes [ ] b) No [ ]
39) Whether you satisfied with the insurance facilities at the APMC
a) Yes [ ] b) No [ ]
40) Whether bank credit faculties available at the APMC
a) Yes [ ] b) No [ ]
41) Are you satisfied with present banking facilities
a) Yes [ ] b) No [ ]
42) What are the other sources of credit facilities other than bank credit
a) Whole sellers [ ] b) Retail seller [ ]
c) Commission agents [ ] d) Others (specify)helliphelliphelliphelliphellip
43) Ranking the factors determining the finance requirements
a) Nature of crop [ ] b) Terms of payment [ ]
c) Economic condition [ ] d) Fluctuations of prices [ ]
e) Volume of crop [ ]
44) Interest paid on bank credit
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
45) Are you obtaining services form the commission agents at APMC
a) Yes [ ] b) No [ ]
46) Are you satisfied with services provided by licensed commission agents
a) Yes [ ] b) No [ ]
47) If lsquoNorsquo what are the defects with commission agents
a) Favourable to buyer [ ]
b) High commission [ ]
c) Misguide [ ]
d) Lack of knowledge [ ]
e) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
48) Commission paid to commission agents
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
49) Do you have given any complaint against agent to the APMC about more
commission
a) Yes [ ] b) No [ ]
136
50) Whether sufficient number of Hamals are available at the APMC
a) Yes [ ] b) No [ ]
51) The cost of cooli to Hamals
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
52) Are you satisfied with hamals services
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
53) Do you have given any complaint against hamals to APMC for high cooli
a) Yes [ ] b) No [ ]
54) Cooperation of officials of the APMC
a) Fully cooperated [ ] b) Partly cooperated [ ]
c) Not cooperated [ ] d) Neither cooperatenor not [ ]
55) What are the defects you found with APMC officials
a) Non-cooperative [ ] b) Favourable to buyer [ ]
c) Laziness [ ] d) Expect money [ ]
e) Improper market data [ ] f) Others (Specify) helliphelliphellip
56) Do you have given ay complaint to higher officer against defaulting
APMC officer
a) Yes [ ] b) No [ ]
57) Do you have experienced following malpractices at the APMC
a) Inadequate grading [ ]
b) Inadequate packing [ ]
c) Unfavourable weighment [ ]
d) Excess samples [ ]
e) Inadequate supervision [ ]
f) Excess market charges [ ]
g) More favourable to buyer [ ]
h) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
58) Do you have any disputes with buyer
a) Yes [ ] b) No [ ]
59) What are the main causes for disputes in APMC
a) Price of produce [ ]
137
b) Quality of produce [ ]
c) Weighment [ ]
d) Timing of payment [ ]
e) Grading of produce [ ]
f) Warehousing [ ]
g) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
60) Which is the best way for settling of market disputes
a) Secretary level [ ] b) Dispute committee [ ]
c) Arbitration [ ] d) Court [ ]
61) Whether market committee officers supervises the services
a) Yes [ ] b) No [ ]
62) Do you find that APMC helped you in getting better prices for your
produce
a) Yes [ ] b) No [ ]
63) Your opinion about quality of service at APMC
a) Very good [ ] b) Good [ ]
c) Bad [ ] d) Very bad [ ]
e) Either good or bad [ ]
64) What is your opinion about customary deduction
a) As per bye laws [ ]
b) More than systems [ ]
65) Give your suggestions for making improvement in quality of services at the APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
138
APPENDIX-II QUESTIONNAIRE FOR RESPONDENTS
A) Personal Information
1) Name of respondents helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Age of respondents in years
a) Below ndash 20 [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
3) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P and G and others [ ]
4) Religion
a) Hindu [ ] b) Muslim [ ]
c) Christian [ ] d) Others (Specify) helliphelliphelliphelliphelliphellip
5) Nature of participant in APMC
a) Commission agents[ ] b) Hamals [ ]
c) Trader [ ] d) Grader [ ]
e) Processor [ ] f) Broker [ ]
g) Others (Specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6) How long you are in market yard
a) Below 10 years [ ] b) 11 ndash 20 [ ]
c) 21 to 30 [ ] d) 30 and above [ ]
7) Factors motivated for choosing this profession
a) Heredity [ ] b) More profitable [ ]
c) Uncertain induced [ ] d) Unemployment [ ]
e) Other specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
8) Are you satisfied with present marketing practices at APMC
a) Yes [ ] b) No [ ]
9) If lsquoNorsquo give the reasons for unsatisfaction
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
10) Are you satisfied with farmerrsquos activeness in APMC
a) Yes [ ] b) No [ ]
139
11) If lsquoNorsquo suggest to make them more active in market yard
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
12) Are you getting following facilities at the APMC yard
a) Water [ ]
b) Canteen [ ]
c) Communication [ ]
d) Marketing information [ ]
e) Transport [ ]
f) Health and sanitation [ ]
g) Banking and finance [ ]
h) Other (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13) Do you satisfied the above facilities at the APMC yard
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
14) Are you satisfied with quality of marketing of services at the APMC
Services Fully
satisfied
Partly
satisfied
Not
satisfied
No
response
a) Assembling
b) Processing
c) Grading
d) Storing
e) Weighment
f) Banking and finance
g) Rest house
h) Insurance
15) What suggestions do you want for efficient operations of APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
140
APPENDIX-III
PHOTOGRAPHS
ENTRY GATE OF APMC
ROAD FACILITY INSIDE APMC
141
WEIGHING GROUNDNUTS IN APMC
PROCESSING OF GROUNDNUTS
142
FILLED COTTON BAGS
WEIGHING TUR IN APMC
143
STORING GROUNDNUTS OUTSIDE
PROCESSING GRADING AND WEIGHING BAJRA
144
FILLING OF SUNFLOWER IN BAGS
LOADING OF COTTON BY LABOURS
- Table-317
- lsquotrsquo - Test Values
- Table-327
- Pearson Correlations
-
1
CHAPTER-I INTRODUCTION AND RESEARCH DESIGN
11 INTRODUCTION
India is such a vast country which derives fifty percent of its national income
from agriculture The marketing methods in agricultural produce different from
country to country state to state and also within state This gives considerable scope
for the study of marketing of agricultural produce in the various states of the country
Agricultural marketing practices need to be uniform in the interest of developing
wider markets for better prices For this reason only many states have passed acts
regulating the marketing of agricultural produce in the state to reduce them to a
common practice and to avoid the exploitation of the primary producers and also to
give better prices for his produce
Organized marketing of agricultural commodities has been promoted in the
country through a network of regulated markets Most of the State governments and
Union Territories have enacted legislations (APMC Act) to provide for regulation of
agricultural produce markets While by the end of 1950 there were 286 regulated
markets in the country today the number stands at 7921 (3132014) Besides the
country has 29191 rural periodical markets about 15 per cent of which function
under the ambit of regulation The advent of regulated markets has helped in
mitigating the market handicaps of producerssellers at the wholesale assembling
level But the rural periodic markets in general and the tribal markets in particular
remained out of its developmental ambit
The central government has advised states and union territories to amend their
respective APMC laws in order to avail assistance for developing and strengthening
agricultural marketing infrastructure In the present scenario with the changing
picture in world trade system there has been growing demand for de-regulating the
agricultural markets and establishment of private markets some initiatives have
already been taken in this direction The central government has proposed
amendments in state Agricultural Produce Marketing (Regulation) Act The same is
expected to take place in the near future The said amendments have been proposed
2
with the aim of helping the farmers and hence market committees are obliged to
implement these amendments The Karnataka State Agricultural Marketing Board was
established on 1st September 1972 as per section 100 of the Karnataka Agricultural
Produce Marketing (Regulation) Act 1966 and Rules 1968 The Board acts as a
liaison agency between the market committees and the government of Karnataka for
all-round development of agricultural marketing in the state
12 NEED FOR THE STUDY
The marketing services available in the regulated markets have been very
useful in overcoming various problems of sellers of farm produce like the middle
menrsquos malpractices distress and forced sales at village level under weighing and
other malpractices by the middlemen and also the village money lenders etc
Majority of the agricultural produce is being sold at the village itself by
farmers immediately after harvesting due to urgent financial requirements and lack of
transport facilities Besides a large number of small holders of agricultural land
Hence the quantity of produce is too small for brining it to urban market place for the
purpose of selling at better prices
Establishment of regulated markets in various urban centers has facilitated
marketing of surplus agricultural produce at fair and reasonable prices In evaluating
the government marketing intervention programmes a distinction has to be made
between (a) the nature and degree of marketing intervention to achieve a defined
policy objectives and (b) the most cost effective way of implementing the marketing
intervention scheme However the centers of regulated markets are inadequate in
relation to the number of villages and vast farm sector Hence there is scope for
increasing of number of APMCs and submarket yards in addition to improving the
functioning of existing APMCs to ensure better services and adequate infrastructural
facilities at the premises of these markets A majority of these regulated markets
suffers from certain deficiencies in their functioning
In view of this the present study is undertaken to analyze the extent to which
the inadequacy of marketing of services are encountered by the farmers and other
functionaries in the APMC at Gulbarga division as a whole The research confines
3
itself to the management of APMCs in Karnataka in general and Gulbarga Bidar
Raichur Koppal and Bellary district APMCs in particular The total APMCs consist
for the present study is five APMCs from each district of study area
13 REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related
areas of the subject to find out and to fill up the research gaps Literature on
agricultural marketing can generally be found in a number of books that are available
on agricultural economics rural marketing and regulated markets Only very few
studies were undertaken on APMC and its performance in both agricultural marketing
and development The important studies relating to the present investigation are
referred below
Gopal Rao (1974) has undertaken the study on APMCs and has analyzed their
working in detail The author has confined his study to the four districts of Bombay
Karnataka region through a survey of the markets in the region
Ravirsquos (1975) work analyses the marketing problems of coconut and copra in
Tipatur and Arasikere regulated markets of Karnataka In this area coconut marketing
is dominated by village sales (66) followed by sales through commission agents
(16) and through wholesalers (about 11) and the rest directly by the farmers
(about 7)
Bhogappa (1982) has undertaken the study on ldquoMarketing of agricultural
produce in Gulbarga division of Karnatakardquo which covers only the APMCs of
Gulbarga Revenue Division He has made a special study of the effects of draught and
draught prone areas He has analyzed the special problems of the markets in ldquoAyacutrdquo
areas
Ramaswamy (1984) has submitted the thesis on ldquoA Critical Study of the
Working of Regulated Markets in Tamil Nadu with special reference to Coimbatore
and Periyar districtsrdquo This was the first attempt to assess the applicability of the Act
in Tamil Nadu which has thrown a light on cropping pattern
4
Rayudu (1985) highlighted the five aspects of cardamom marketing designed
by Cardomon Board The Board collects data on global requirements position of
supply conducting market survey for planning implementing and evaluation The
findings in this study could be useful in suitable applications for the finer aspects in
the marketing of similar products
Biradar (1989) observed that there was no incentive scheme for farmers It is
therefore necessary to start the incentive programmes like providing higher prices for
their commodities agricultural inputs at concessional rates and charging lower market
make regulated markets more attractive to the farmers These suggestions have a good
deal of subsidy components on the part of the Government
Selvamurugan and Mohan Sundaram (1990) in their study on the Coimbatore
district concluded that the crossandra in Coimbatore district concluded that the
corrssandra farmers share had been reduced from 3256 percent to 2423 percent
during the lean season Though the street vendors margin had also been reduced from
2328 to 1460 percent the share of commission agents and wholesalers had increased
to large extent ie from 4416 to 6107 per cent
Reddy (1991) conducted a study on marketing channels and marketing
margins of maize in Andhra Pradesh The study revealed that the producers share was
significantly high (8664 to 8687) in the case of Producer to Retailer to Consumer
channel as compared to corresponding share of producer (6314 to 7067) in case of
second channel ie Producer to Wholesaler to Retailer to Consumer
Nagraj and Chandrakant (1992) conducted a study on market performance of
perishables In the study the major marketing channel for vegetables was as below
Producer to Commission agent to Retailer to Consumer
The study could be of much relevance for researches in similar areas of agricultural
marketing
Biswas and Karpate (1994) observed the importance of Maharashtra State
Tribal Development Corporation (MSTDC) in marketing of minor forest produce
The tribal of the area were assured of basic minimum price for their produce notified
5
by the collector of the district The payments in normal course were made
immediately and saved them from exploitation by the middlemen
Mundinamani and Naik (1994) concluded that the per marketing cost of potato
was Rs 2074 as compared to Rs 2261 for brinjal Rs 2325 for onion Rs 2147 for
tomato Rs 5692 for dry chilly Rs 2975 for cotton and Rs 1936 for groundnut
The factors for differences in marketing cost of such agricultural produce need to be
probed by further studies
Atibudhi and Prusty (1995) have studied the marketing margins of Niger in
Rayagada district of Orissa The study concluded that the presence of co-operative
societies in marketing channel reduces the marketing margins and increases the
producers share in consumers rupee Marketing costs were the lowest in the co-
operative channel But marketing costs for storage procurement and transport were
higher for the same
Pawar (1996) has conducted a study on marketing surplus and price spread of
groundnut in Marathwada region of Maharashtra which is the most important
groundnut growing zone where 49 percent of the land is used to grow groundnut The
study concluded that distress sale of ground nut was found in small farmers but
medium and large farmers kept their surplus for future sale to get maximum price
Krishnaih (1998) has conducted a study to identify the marketing channels of
cotton and to analyze the price spread in these channels where he has suggested 7
different channels on distribution of cotton His effort is quite appreciable and it offers
for further research work on the topic However he found that while marketing of
cotton (kapas) majority of the farmers chose the channel in which the role of
commission agent was prominent
Paty (2000) applied the techniques of marketing information system the
agricultural marketing He has explained the concept with flow diagram of the
Integrated Agricultural Marketing Information System which is quite useful for its
practical applications
6
Basavaraj et al (2001) have made it very clear in their article that Karnataka
ranks fifth among the oil seed producing states in the country with an area of
1200135 hectares and a production of 945501 tones during 1994-95 Groundnut
sunflower safflower sesamum and castor were the major oil seeds produced in the
state They have made good policy implications in their study
Jayarathnam (2002) in her study on farmers market (Uzhavar Sandhai) in
Tamil Nadu pointed out the problems in cultivation transportation marketing and
pricing of vegetables Even she has given strengths weaknesses opportunities and
threats of vegetable marketing in Uzhavar Sandais of Tamil Nadu
Von Oppen and Gabadambi (2002) in their research paper have observed
market access impact on agricultural productivity lessons from thirteen chapters in
which they have concluded by stating market access and infrastructure are powerful
tools to commercialize agriculture in developing countries They increase aggregate
productivity initially via specialization and at a later stage via intensification
Sherman Roger (2007) undertook a study on market regulation gives readers
the economic intuition to analyze the history of antitrust and regulation diagnose
current corporate strategy and evaluate possible policy recommendations Roger
Sherman grounds modern examples in historical context and develops thought
provoking discussions to motivate readers from many different backgrounds
Introduction to market regulation competition as a market regulator problems for
competition as regulator
14 STATEMENT OF THE PROBLEM
The farming is largely dependent on the efficient marketing of the products
So the governments have to be very particular and watch all the market operations to
remain self-sufficient in food and to produce the goods for export to other countries
In the process of planning though the agriculture was given high priority for its
development but much attention was not given for the improvement of marketing
But in various states the agricultural marketing boards were established with the
objective to remove all the problems of markets and to regulate the markets for
increasing the efficiency in marketing It is found from various previous studies that
7
the regulated markets donrsquot have adequate and scientific grading facilities resulting in
substantial loss to the farmers excess charging of deductions in the form of
weighment commission etc are still prevailing at present in the regulated markets by
the commission agents or traders while making the payments to the farmers Hence
there is a need to undertake a study of the working of regulated markets in relation to
the responses of producer seller and other market functionaries regarding various
aspects of management of regulated markets The present research work attempted to
examine how the organized markets are working and to assess their role in
facilitating an orderly marketing of agricultural produce in the selected APMCs in
Gulbarga division
On the top of it the Gulbarga division is highly backward with all the
indicators of the backwardness which leaves considerable scope for exploitation by
the money lenders-cum-merchants These contrasts in the division call for different
approaches to marketing management and hence the study reveals interesting results
valuable for policy decisions This study of the division of Gulbarga is of immense
benefit for the economic strategy in the marketing of agricultural produce The study
is also aimed at pointing out various malpractices prevailing in the marketing
management lack of infrastructure storage facilities credit availability and effective
central markets this has resulted lack of innovations in agricultural production and
operations Many studies have been carried out to assess the impact of various
malpractices prevailing in marketing management on production of agricultural
produce However no study has been made to assess the role played by the APMCs in
the agricultural marketing in Gulbarga division highlighting whether these have
succeeded in achieving its objective if not what were the causes and what corrective
measures would have helped it in over coming the problems The present study is a
contribution in this direction
15 OBJECTIVES OF THE STUDY
The following are the objectives set for the study
1) To study the role of APMCs in filling the gaps and deficiencies regarding
agricultural marketing in Karnataka
2) To understand the amenities and facilities at the APMCs and to find out
inadequacies prevalent in APMCs in Gulbarga division
8
3) To know the trade practices in the area under consideration and the extent of
benefits to sellers through organized markets
4) To analyze the farmers responses towards regulated markets as well as market
participants
5) To critically examine the over all performance of APMCs and to identify the
area of improvement in the efficiency and also to offer suggestions to develop
an effective marketing system in Gulbarga division
16 RESEARCH METHODOLOGY
The study is mainly based on both primary data and secondary data The study
covers one broad division of the Karnataka state a survey method is adopted ie
through the pre-tested interview schedules addressed to the sample size of farmers and
market functionaries An unscheduled interview is also conducted to the regional
officials of KSAMB project officer and agricultural departments as well as APMCs
officials
Separate schedules were drawn tested and addressed to market committees
agricultural producers and market functionaries The questionnaires administered to
farmers were 250 in total at the rate of approximately 20 from each district market
All the farmers were representative producers for each market categorized on the
basis of the land holding and also marketable surplus brought to the market for sale
The questionnaire administered to the market participants were 150 in total
covering 20 market functionaries from each district in total sample size market
functionaries includes traders (wholesaler and retailer) commission agents exporters
importers processors and hamalies etc
17 SAMPLE DESIGN
A stratified random sampling method was adopted to drawn the final sample
The Gulbarga division consist of Bidar Gulbarga Raichur Koppal and Bellary
district from each district approximately 50 farmers were selected along with this 30
market functionaries from each district were selected
9
18 DATA ANALYSIS
The data collected from both primary and secondary was processed and
reduced to simple tables in order to present the matter clearly The suitable financial
statement analysis techniques were used to draw the correct conclusion Ratio
analysis which is most powerful and universally used technique for the analysis of
financial performance of APMCs in Gulbarga division
Analysis of variance technique is employed to test whether there is any
statistical significance in sales in different markets Apart from this averages and
percentages are used Graphs maps chart and diagrammatic representation of data
was suitably employed to highlight the significance of the data
19 PERIOD OF THE STUDY
The present study covers the period of five years commencing from 2009-10
to 2013-14 The performance of various items such as sales amenities infrastructure
and facilities of APMCs in Gulbarga division was studies for five years
Due to the wide operational activities of APMCs for agricultural marketing the
study period limited to five years to analyze its role in Karnataka with reference to
Gulbarga division
110 LIMITATIONS OF THE STUDY
The study is not completely free from limitations
1) The study is restricted only Gulbarga Division
2) Only five years period is taken for the purpose of the study because of time
constraints
3) The study is depending on the primary data also some of the respondents give
the poor response however every care has been taken to ensure that
authenticity of the data gathered
4) Some of the markets and the sub markets are so small and irresponsible that no
data is available nor any records of arrivals and disposals The records
maintained at the submarkets in the division are probably not available and
non reliable
10
111 CHAPTERISATION OF THE RESEARCH WORK
The whole research study has been presented in seven chapters
The First chapter deals with the introduction need of the study review of
some of important previous literatures statement of the problem
objectives of the study research methodology employed period of the
study limitations of the study techniques used for data analysis as well as
the chaptarisation of the study
The Second chapter deals with the various functions of the APMCs their
activities And also contains in brief about the trade practices preventing at
present in Gulbarga division as well as the data collected from the market
participants through questionnaire were analyzed to know the level of
satisfaction towards the preventing trade practices in selected APMCs in
Gulbarga division
Chapter Third deals with the opinion collected from the farmers towards
the marketing of their produce as well as their attitude towards regulated
market
Chapter Fourth deals with the financial performance and position during
five years of study period
The Fifth chapter deals with the findings suggestion and conclusions
11
CHAPTER-II FUNCTIONS AND TRADE PRACTICES ON APMCs
INTRODUCTION
The functionaries have their own set up They may be individuals partners or
cooperatives who may buy and sell on ready and future basis at a price determined by
forces of supply and demand Each functionary renders some services in the process
of marketing and also earns a varying margin of profit for himself This procedure
makes marketing rather complicated and inflates the price of the produce The nature
of some of the agricultural products eg their bulk form and perishability and their
seasonal availability further add to the complexity of agricultural marketing
Farmers and the various functionaries working in market face numerous
problems in orange fruit trading Farmers either sell their produce to the pre-harvest
contractor before harvest or they sell it in the nearby Agricultural Produce Market
Committee
When the farmers sell their produce in the Agricultural Produce Market
Committee they face following problems
High commission charges
High transportation and loading and unloading charges
No guarantee of remunerative prices
Delayed payment by commission agents
Functionaries working in the market also face various problems The pre-
harvest contractors who purchase the fruits from the farmers face the problems while
dealing with the farmers These problems arise mainly due to
Lapses on the part of farmers in the management of garden resulting in
deterioration of quality of fruits
Problems of natural calamities (theft of fruits losses due to rains pest etc)
Problems of storage facilities (lack of cold storage at local place)
Packing problem (costly packing material and non-availability of skilled
labour)
12
Transport problems (high transportation cost and non-availability of transport
means in time)
Grading problems (non-availability of suitable mechanical graders)
The success or failure of any market depends upon the functionaries existing
in the market Hence the role of functionaries is very important in smooth conduct of
market functions
It is compulsory according to KAPM (R) Act 1966 for every functionary
functioning in the APMCs to take a valid license from the respective APMC where it
is established by paying the necessary fees to the APMCs
Description of Market Functionaries
Following is the list of important functionaries existing in different APMCs of
the study area
i) Commission agents ii) Traders
iii) Retail traders iv) Weighmen
v) Hamals vi) Lady hamals
vii) Transporters viii) Cartmen
ix) Brokers x) Exporters
xi) Importers xii) Processors
xiii) Ginners xiv) Pressors
xv) Crushers xvi) Stockiest
xvii) Warehousemen
It is very essential to understand each of these functionaries and their activities
in detail
i) Commission Agents
Commission agent means a person who in the ordinary course of business
makes or offers to make a purchase or sale of agricultural produce on behalf of the
owner or seller or purchaser of such agricultural produce for commission
13
Commission agents are called so because of the commission they take from
the traders on the total sales as fixed by the government They facilitate farmers to
sell the agricultural produce brought into market yard for a good price at an
appropriate time However as per the bye-laws of market committees some person
cannot act both as commission agent and trader
Commission agents are the connecting link between the farmers and the
buyers When the crop grown by the farmer enters the market it goes to the
systematically channalised commission agents
The agents help the market committee to classify the goods brought by the
farmers and getting them weighed by the specified weighmenThese agents sell the
goods in the market on behalf of farmers and if a farmer does not want to sell his
goods for the time being at the prevailing market price the agents stores the goods in
their godowns and takes the responsibility of preserving the goods These agents not
only help the buyers to get a variety of goods at a place but also help the farmers to
sell their goods effortlessly In the form of market fee the buyer has to pay 1 percent
of the sale price of goods which is collected by the agents and credited to the market
committee Agents also have the responsibility of crediting the total amount of the
sales to the farmers The agents enjoy the right to extract the full amount of the
produce from the buyers
ii) Traders
Trader means the person who buys notified agricultural produce either for
himself or as agent of one or more persons for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of domestic
consumption
The trader will fix a reasonable price for the farmers produce in consolation
with the commission agents and with the consent of the farmers they purchase the
produce and the full amount will be paid to the commission agents Sometimes the
traders buy the produce for their own business purposes or on behalf of big companies
or businessmen Under these circumstances the goods will be sent to the respective
people
14
iii) Retail Traders
Retail trader mean the person who holds in stock at a time not exceeding
fifteen quintals of two or more kinds of agricultural produce together or not
exceeding six quintals of a single agricultural produce
The major function of a retail trader is to undertake retail salesRetail sale
means the sale of notified agricultural produce to a consumer for domestic
consumption not exceeding such quantity as the market committee may by bye laws
or standing orders determine
Usually they buy agricultural produce from the market yard and sell it in retail
market established in cities They assist the small buyers in procuring the agricultural
produce in small quantities for the purpose of domestic use
iv) Weighmen
As their name itself suggests the weighmen supervise the weighment of the
agricultural produce entering into the APMC yard
Certain produce such as cotton get weighted as soon as they enter the market
yard while the rest of the produce are weighted after sales Under these
circumstances it becomes the duty of the weighmen to safeguard the interest of the
farmers and to see that there is no discrepancy in weighing their goods Day to day
report of the produce weighed along with their weighment slip has to be filed with the
market committee by the weighmen It is the duty of these weighmen to visit the
various shops in the market yard and to supervise the weighing of different goods
v) Hamals
In order to facilitate the smooth functioning of the various activities of the
marketing committee hamals perform a very special duty As these people perform a
strenuous physical work they are called hamals
The work of the hamals start with the produce entering into the market yard
and ends with the produce going out of the yard When the farmer brings his produce
15
into the market yard either by a cart tractor or by lorry the hamals unload the
produce at the commission agents shops If the produce is cotton the hamals get it
weighted immediately after unloading and if the produce are other than cotton they
are stored in the godowns of the commission agents On the day of the tender or
auction the samples of the various produce are kept aside by the hamals who help the
traders to fix a reasonable price for the produce After the completion of business
deals except cotton all other produce are weighed and loaded into the vehicles of the
traders To perform these various tasks the hamals charge the amount fixed by the
APMC and get it from the concerned parties
vi) Lady Hamals
The female hamals who are working in APMCs by procuring a valid license
are known as lady hamals Along with the male hamals lady hamals are also found
in some of the APMCs like Hubli Gadag and Ranebennur They perform activities
like screening cleaning assisting males hamals in weighment keeping samples for
tender etc
vii) Transporters
In the preview of market committee the people who help to transport the
goods from one place to another are called transporters The tractors and truckers are
performing the duties of transporters Transporters are considered to be the important
market functionaries working in APMC yard These peoples are helping the farmers
to bring the agricultural produce from the place of production or agricultural yard to
market yard Existence of large number of transporters in the market yard helps for
the smooth functioning of marketing activities
viii) Cartmen
Along with the modern transportation facilities such as trucks and autos still
cartmens are playing greater role for the smooth functioning of market activities
Loading and unloading of bags from trucks to godown and vice-versa are performing
by cartmens When the agricultural produce need to transfer from one place to another
place within the market yard is done by cartmen
16
ix) Brokers
Brokers are the agents middle menrsquos in the market working as link between
farmers and buyers In many ways brokers are assisting the farmers by giving
valuable advises with regard to financing of selling to get better prices At the same
time they also help by supplying bulk agriculture produce to buyer
x) Exporters
Exporter means the person other than a producer who exports goods or cause
goods to be exported on onesrsquo own account or as agent of another person from the
market area outside such area for the purpose of selling processing manufacturing or
for any other purpose except for the purpose of onersquos own domestic consumption
The meaning of exporter shall not include a public carrier
At times when there is a bumper crop the poor farmer has to incur heavy
losses During such moments of crisis the exporters come into the scene and purchase
the crops from the farmers and export the same to some other markets for sale or
processing This brings about a balance between the demand and supply and saves the
farmers from the crisis
xi) Importers
Importer means the person other than a producer who imports goods or causes
goods to be imported one onersquos own account or as agent of another person from the
outside market area with in the such area for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of onersquos own domestic
consumption The definition of importer shall not include a public carrier
Function of Importers
As and when there is scarcity of any goods in the market and there is a lot of
demand for the same and considering the overall demand and supply of the market
the importers import the goods from different markets and sell them in the local
market
17
xii) Processors
The goods purchased at the market yard have to undergo different stages and
processes to finally reach the customer In order to facilitate this work different people
perform their duties These people are called processors viz gins press
decorticators oil mills flour mills and dal mills etc these different industries perform
their own essential duties
These industrialists perform their duties to see that the goods available in the
market in their crude form are made ready for use After having purchased the goods
they make them ready for use with the help of these processors On certain occasions
the processors themselves purchase the goods process them and self them when they
are ready for use These processors also should have the license from the market
committee
xiii) Ginners
They are the licensed functionaries who are performing ginning activities of
cotton by procuring valid license from APMCs The purchasers of cotton want to
convert their unginned cotton into ginned cotton In such case ginners will help them
to gin their cotton and separate pure cotton from cotton seeds
xiv) Pressors
Once the cotton is ginned it will come to pressors for conversion into cotton
bales where licensed pressors undertake the work of pressing In order to transport
the cotton from the place of growing and marketing to textile mills at different places
they have to be systematically packed in compact form of cotton bails The ginned
cotton will come to press of the pressors where they press and pack it properly into
cotton bales
xv) Crushers
There are certain licensed crushers who perform the activity of crushing oils
seeds into oil The traders who buy oil seeds from the market wants to convert it into
oil for further marketing and transportation In such case crushers situated near the
various market yards will help them to get pure oil by getting their seeds crushed and
screened at their crushing units
18
xvi) Stockiest
The people who purchase the produce at the market yard and store it for some
time and then sell it are called stockiest The stockiest also should have license
When all the farmers bring their produce to the market yard there will be glut in the
market supply and deficiency of the purchasers which cause the prices to come down
Under these circumstances to protect the farmer from the loss the stockiest purchases
the goods at the market yard and stock it in their storehouse to sell them when there is
a demand for that commodity
xvii) Warehousemen
The farmers are provided with the warehouses to store the produce which
come under the jurisdiction of the market committee ldquoWarehouserdquo means any
building structure or other protected enclosure which is or may be used for the
purpose of storing agricultural produce being goods on behalf of the depositors but
does not include cloak rooms attached to hotels railway stations the premises of
other public carriers and the life The person who supervises the warehouse activities
is called warehouseman
A farmer may not want to sell his produce because of the fall in the prices or
may want to store the goods for the purpose of sowing but does not have enough
space to store Having realized this problem of the farmers the government has
provided the warehouses in all the important market yards so that the farmers can
store their goods as long as they want to
The main task of the warehousemen is to stock the goods of the farmers
properly by sprinkling pesticides and protecting them from the insects and pests and
to return the goods of the farmers to them when they ask for it While performing this
task the warehousemen charges certain amount which is specified by the
government The farmer has to pay the amount towards stocking of his goods
In this way for the smooth sailing of the market committees activities each
and every market functionary has to perform his duties systemically
19
Market Functionaries in Selected Market An Overview
In all the selected APMC for the present research work ie 15 APMC there
were 26194 market functionaries operating in various markets of this division The
district wise and sample wise break up of the same is revealed in the tables from 21
to 25
As on the 2007-98 the total of local market participant in three APMC taken
for the present research is Gulbarga-5099 Bidar-2790 Koppal-5234 Raichur-7182
and Bellary-5889 There are 2046 lsquoArsquo class traders 1786 lsquoBrsquo class traders 1410 lsquoCrsquo
class traders 6920 lsquoDrsquo class traders 2794 commission agents 1496 exporters 1526
importers 676 stockiest 358 processors 172 crushers 203 ginners 28 pressers 29
warehousemen and 10775 hamals operating in the various markets in the Gulbarga
division The highest number of traders commission agents and other functionaries
are in Raichur district Bellary district followed by Gulbarga district being nearly 13
of the total number in the division
Market Functionaries at Selected APMC in Gulbarga District
Gulbarga APMC is a very big APMC in the Gulbarga district as compared
with other APMC in the same district Table 41 explains the total market
functionaries working in the not only Gulbarga APMC but also APMC Shorapur and
APMC Shahapur It is far as size is considered APMC Shahapur is a small APMC in
the Gulbarga district
The below Table 21 reveals that the total number of market functionaries
which was 3536 in 2009-10 in Gulbarga APMC has increased by around 124 percent
in 2013-14 It is evident from the same that coolies traders exporters importers and
processors holding maximum share in total market functionaries in the total
participants in the market
In case of the APMC Shorapur the total position of market participant was
gradually increased during first three years ie from 576 in 2009-10 to 845 in 2010-
11 and 910 in 2011-12 but it decreased to 845 in 2012-13 Again coolies and traders
were become the major portion in total market participants followed by commission
agents and retailers
20
Table-21
Licensed Market Participants in Selected APMCs of Gulbarga District
Sl No Market Participant
APMC Gulbarga APMC Shorapur APMC Shahapur
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 407 419 418 405 426 60 203 254 178 180 37 60 51 46 128
2 Commission agents 227 235 234 213 218 45 58 64 58 69 17 17 17 17 22
3 Exporters 419 424 424 411 416 10 32 11 03 03 28 35 32 25 130
4 Importers 405 411 409 391 396 08 24 09 02 02 25 30 38 25 126
5 Retailers 105 108 108 94 106 25 76 26 02 02 20 32 30 23 51
6 Processors 350 358 356 341 348 01 02 02 01 01 01 01 01 01 10
7 Ginners 14 15 15 15 16 01 02 01 01 01 01 01 01 01 05
8 Pressers 04 04 04 04 04 03 04 02 01 01 02 02 02 02 05
9 Stockiest 28 30 30 25 28 14 42 16 01 01 10 15 12 10 15
10 Weighmen 75 78 77 75 75 13 14 14 14 14 02 02 02 02 05
11 Crushers 15 18 18 18 18 03 05 04 01 01 02 02 02 02 06
12 Warehousemen 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01
13 Coolies 1444 1545 1540 1476 1485 378 373 496 571 560 75 92 99 99 110
14 Transporters 42 54 52 41 43 08 09 10 11 11 28 33 33 18 58
Total 3536 3700 3686 3510 3580 576 845 910 845 847 249 323 321 272 672 Source Annual reports of APMC for 2009-10 to 2013-14
21
The situation in APMC Shahapur was not much different when it compared to
APMC Gulbarga and APMC Shorapur A steady growth in total market participants
was registered in 2013-14 ie 672 with annual aggregate growth of 3398 percent
during the period under research Traders commission agents and coolies were
acquired majority position in total market functionaries
The below Table 22 depicts the total licensed market participants operating in
the selected APMCs of Bidar district A keen observation of year wise growth in the
various categories of market participants shows that coolies are steadily increased in
APMC Bidar from 68 in 2009-10 to 140 in 2013-14 In APMC Bhalki it was from 49
in 2009-10 to 56 and in APMC Aurad from 19 to 34 during the same period
It is interesting to note in Bidar APMC that stockiest were the dominant
portion in total market functionaries followed by experts commission agents and
importers The same situation was also found in other five APMCs ie Bhalki and
Aurad which are taken as sample from the Bidar district The percentage of stockiest
as on 2013-14 in total market participant was in Bidar APMC 1694 Bhalki APMC
ndash 1850 and 1859 in APMC Aurad
22
Table-22
Licensed Market Participants in Selected APMCs of Bidar District
Sl No
Market Participant
APMC Bidar APMC Bhalki APMC Aurad
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 171 182 195 186 196 151 153 146 156 160 110 115 128 138 142
2 Commission agents
145 151 180 175 190 136 139 145 150 156 102 112 115 128 132
3 Exporters 150 162 175 12 172 139 141 148 151 155 89 95 98 108 112
4 Importers 141 145 161 152 162 120 122 126 120 122 85 92 95 98 104
5 Retailers 10 15 28 25 35 05 06 09 10 10 03 04 06 08 08
6 Processors 03 04 04 03 04 02 02 02 02 02 01 01 01 01 01
7 Ginners 02 02 02 02 02 01 01 01 01 01 01 01 01 01 01
8 Pressers 01 01 01 01 01 01 01 01 02 01 01 01 01 01 01
9 Stockiest 193 198 220 205 215 150 151 154 155 161 106 112 115 119 123
10 Weighmen 33 42 55 52 65 23 24 26 28 30 13 15 21 28 30
11 Crushers 02 02 03 02 03 01 01 01 01 01 01 01 01 01 01
12 Warehousemen 01 01 01 01 02 01 01 01 01 01 01 01 01 01 01
13 Coolies 68 70 110 110 140 49 50 52 57 56 19 24 30 35 37
14 Transporters 10 05 15 24 23 08 08 09 13 13 04 06 08 12 17
Total 930 980 1150 1100 1210 787 800 821 846 870 536 580 621 687 710 Source Annual reports of APMC for 2009-10 to 2013-14
23
The overall growth in the market participants in Bidar district from the same
table reveals that the annual aggregate growth in APMC Bidar was highest ie 602
percent over the previous year it was 210 percent in APMC Bhalki and 649 percent
in APMC Aurad This clearly indicates that APMC Aurad is fast growing APMC in
terms of market functionaries followed by APMC Bidar and APMC Bhalki
A cursory look at the below Table 43 reveals that coolies traders
commission agents and importers are the major category of market functionaries
operating in the selected APMCs in the Koppal district during five years study period
ie 2009-10 to 2013-14 are presented in Table 23 The total number of market
functionaries in APMC Koppal which was 1054 in 2009-10 increased to 1186 in
2013-14 with percentage growth of 1188 during period under study In case of
APMC Gangavati it was 1034 percent negative and in APMC Kustagi positive
growth of 1752 percent during the same period The number of traders increased
marginally during the study period but the number of commission agents was
marginally decreased in all the three APMC selected from the Koppal district as
sample the other market functionaries increased in large numbers thus making the
proportion at commission agents to drop A broad view of licensed market
functionaries in selected APMC in Koppal depicts that APMC Gangavati was leading
APMC in terms of total market participants followed by APMC Koppal and APMC
Kustagi during five years plan period
24
Table-23
Licensed Market Participants in Selected APMCs of Koppal District
Sl No Market Participant
APMC Koppal APMC Gangavati APMC Kustagi
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 115 108 127 116 144 518 480 456 479 497 106 95 103 63 88
2 Commission agents 102 107 90 98 107 468 417 360 380 387 141 139 142 124 153
3 Exporters 95 123 92 115 105 511 480 455 489 495 90 77 80 46 65
4 Importers 123 146 120 122 103 598 479 455 488 496 17 12 13 08 64
5 Retailers 15 22 14 15 14 124 98 72 90 87 11 11 14 11 -
6 Processors 04 05 04 05 06 95 91 87 90 97 02 02 02 02 02
7 Ginners 02 02 02 02 02 - 02 - - - - - - - -
8 Pressers 02 02 02 02 02 - - - - - - - - - -
9 Stockiest 60 179 58 70 65 518 480 453 488 495 52 52 63 - -
10 Weighmen 10 15 09 08 10 03 03 04 04 03 06 06 06 06 06
11 Crushers 05 11 05 06 08 04 01 02 02 02 03 03 02 02 -
12 Warehousemen 02 04 02 03 04 02 02 02 02 02 01 01 01 01 01
13 Coolies 452 502 450 544 535 553 370 324 393 417 372 363 345 273 468
14 Transporters 067 118 59 33 36 26 13 16 15 14 04 05 03 02 02
15 Temporary purchasers - - - - - - - - - - 45 41 - - 150
Total 1054 1344 1034 1139 1186 3423 3001 2784 2995 3069 850 807 774 538 999 Source Annual reports of APMC for 2009-10 to 2013-14
25
Table 24 shows the year wise actual market participants who were licensed to
operate in the market yard during 2009-10 to 2013-14 in the selected APMC for the
sample in the Raichur district The total market functionaries in the APMC Raichur
decreased during the second year ie 2010-11 from 3622 to 3407 The average
decrease during the research period was 228 percent This was due to decrease in the
traders as well as coolies
When we observed market functionaries cooperation in the APMC Sindnoor
if was little different situation when it compared to APMC Raichur The total market
participants were shown an increasing trend except in the year 2010-11 it was
decreased from 2193 in 2009-10 to 1852 The overall growth in the market
functionaries during five years research period was 2782 percent which was a good
sign compared to APMC Raichur This growth indicates the growth of agriculture
marketing in APMC Sindnoor yard From the same table it can also be seen that
during 2010-11 and 2011-12 the total licensed market participants in APMC
Lingasugur were decreased but again during last two years of study period it shown
upward trend From these above analysis it can be said that APMC Sindnoor and
APMC Lingasugur were performed better during the plan period as compared to
APMC Raichur
26
Table-24
Licensed Market Participants in Selected APMCs of Raichur District
Sl No Market Participant
APMC Raichur APMC Sindnoor APMC Lingasuguar
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 409 422 431 403 415 312 260 304 305 304 104 99 88 106 115
2 Commission agents 216 214 222 224 218 317 265 280 288 279 83 92 81 101 100
3 Exporters 382 381 401 416 401 288 256 301 308 307 97 77 71 103 105
4 Importers 377 392 420 400 410 288 256 273 276 269 77 79 71 103 110
5 Retailers 22 23 206 - - NA NA NA NA NA 20 18 18 16 16
6 Processors 57 55 63 65 401 14 17 20 19 17 05 06 06 04 04
7 Ginners 10 16 16 15 16 01 01 01 01 - - - - - -
8 Pressers 05 05 04 03 04 01 01 01 01 01 05 04 04 04 04
9 Stockiest 388 377 398 409 19 289 257 300 308 293 75 94 81 106 110
10 Weighmen 89 89 87 87 87 16 16 16 15 14 14 14 14 14 14
11 Crushers 18 26 24 20 19 02 02 01 01 - - - - - -
12 Warehousemen 02 02 02 02 02 07 05 06 07 06 01 01 01 01 01
13 Coolies 1591 1357 1354 1434 1478 634 516 856 1286 1313 40 02 08 Nil 79
14 Transporters 46 48 44 42 50 24 - - - - 10 08 08 04 Nil
Total 3622 3407 3672 3520 3520 2193 1852 2359 2815 2803 531 494 451 562 859 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
27
Table 25 indicates the trends in the growth of total licensed market
functionaries who were operating during the period under consideration in the
selected APMCs in the Bellary district A comparative study of three APMCs selected
in Bellary district shown in the table 25 indicates that APMC Bellary has the largest
market functionary followed by APMC Hospet and APMC Siraguppa The total
market participants in APMC Bellary was ranged in between 3235 to 3865 in APMC
Hospet it was between 738 to 1481 and in APMC Siraguppa between 659 to 1007
The study of individual market participants in total market participants in selected
APMCs in Bellary district was also clearly shown that coolies were occupied the
major percentage in total followed by exporters importers and traders during the plan
period From the above analysis it was clear to conclude that district APMC ie
Bellary APMC was fully developing in terms of increase in market functionaries but
effort is needed from the officials of APMC in Hospet and Siraguppa to take some
measures to increase the market functionaries for the smooth running of marketing
activities in the yard
28
Table-25
Licensed Market Participants in Selected APMCs of Bellary District
Sl No Market Participant
APMC Bellary APMC Hospet APMC Siraguppa
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 435 441 538 462 485 121 123 136 150 141 115 120 146 176 198
2 Commission agents 352 368 448 382 371 75 77 84 103 88 10 10 12 09 08
3 Exporters 412 437 531 452 484 121 123 136 150 141 120 120 147 177 198
4 Importers 415 430 527 442 473 121 123 136 150 141 120 120 147 177 198
5 Retailers 102 115 101 120 95 76 74 93 95 95 - - - - -
6 Processors 45 45 47 45 55 26 24 24 23 24 42 43 46 45 59
7 Ginners 26 27 29 25 17 - - 27 24 24 - - - - -
8 Pressers 20 20 22 20 09 NA NA NA NA NA - - - - -
9 Stockiest 420 430 518 421 463 120 123 136 150 141 130 134 159 178 198
10 Weighmen 16 16 16 16 16 03 03 04 04 04 - - - - -
11 Crushers 26 26 26 25 18 04 02 02 02 02 - - - - -
12 Warehousemen 01 01 01 01 01 02 02 02 02 02 02 02 03 03 03
13 Coolies 920 902 1018 1213 910 262 173 373 429 668 120 128 237 145 145
14 Transporters 45 48 43 02 04 14 14 12 14 10 0 0 0 0 0
Total 3235 3306 3865 3626 3401 945 738 1165 1193 1481 659 677 897 910 1007 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
29
Sample size
The main refrain of this part of research study is the detailed analysis of the
primary data collected from the respondents ie market participants from APMC
about marketing services provided by the APMCs in five districts of Gulbarga
division Three APMCs from each district on the basis their performance ie best
performer average performer and low performer taken for the study The details of
the responses obtained on various services offered at APMCs yard and their level of
satisfaction towards it in the light of the statistical data obtained through the
questionnaires addressed to market participants such as commission agents hamals
traders graders etc are shown in the following part
The deep analysis of the responses from the sample size of market participants
has provided good insight into the dimensions of the marketing services and the
quality of those services rendered to the farmers seller of agriculture produce The
analysis has been done with necessary theoretical backs drops of each of the services
related to the marketing activities in the APMC yard
Table-26
District Wise Sample Size of Market Participants
Name of District Frequency Percentage Cumulative Percentage
Bidar 25 2000 2000
Gulbarga 25 2000 4000
Koppal 25 2000 6000
Raichur 25 2000 8000
Bellary 25 2000 10000
Total 125 10000 -
Source Field survey
Table 26 provides the information about the district wise frequency of sample
chosen for the present study The total sample for the study was 125 market
participants Gulbarga division constitutes of five districts from each districts 25
respondents were selected
30
Profile of Market Participant
An attempt has also been made in this part to study the socio-economic and
demographic factors of the market participants in order to examine the significant
relationship if any exist in between their profile and performance
Age Group
The age composition of the various market participants covered in the study
areas reveals some significant trends The details of the age of respondents of district
wise are provided in the following table
Table-27
Age Wise Classification of Market Participant
Sl No Name of APMC
Age of Respondent (in years) Total Below
20 21 ndash 40 41 ndash 60 60 and
above 1 Gulbarga - 18
(720) 6
(240) 01
(40) 25
(200) 2 Bidar - 18
(720) 6
(240) 01
(40) 25
(200) 3 Koppal - 18
(720) 5
(200) 01
(40) 25
(200) 4 Raichur - 18
(720) 6
(240) 02
(40) 25
(200) 5 Bellary - 18
(720) 7
(280) 01
(40) 25
(200) Total 000
(000) 90
(720) 29
(232) 06
(46) 125
(100) Source Field study Note Figures in brackets indicates percentage to total It is evident from the Table 27 that more than 34th of the total respondents
from market participants ie 90 belonged to the age group of 21- 40 years 232
of respondents belonged to the age group of 4160 years while smaller number of ie
of respondents which constitutes 48 of total respondents are in the age group of 61
years and above It is revealing to note that no number respondents Out of total 125
respondents belonged to below 20 years of age group
31
Status of Educational Qualification
The data collected through personal interview with regarding education
qualification of all market participants operating in the APMC in Gulbarga division
has provided Some useful details about their educational status which is considered
to be most significant factor in discharging their duties and responsibilities more
efficiently and effectively The detail of educational qualifications of sample group of
market participants is shown in below Table 28
Table-28
Qualification Wise Classification of Market Participant
Sl No Name of APMC
Educational Qualification Total Below
Primary Secondary Degree PG and
others
1 Gulbarga 01 (40)
11 (440)
03 (120)
10 (400)
25 (200)
2 Bidar 01 (40)
09 (360)
03 (120)
12 (480)
25 (200)
3 Koppal 01 (40)
10 (400)
03 (120)
11 (440)
25 (200)
4 Raichur 01 (40)
09 (360)
02 (80)
13 (520)
25 (200)
5 Bellary 02 (80)
11 (440)
04 (160)
08 (320)
25 (200)
Total 06 (48)
50 (400)
15 (120)
54 (432)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total It is learnt from the above Table 28 that 432 of respondents were post
graduates and other technical qualifications such ITI and other diploma qualifications
40 of the sample respondents were qualified upto higher secondary followed 12 of
respondents were graduates Only 6 were belonged to the primary category It is
however significant to note that higher secondary education and other technical
education qualification holders were majority in total sample size ie 40 to 432
as compared to degree holders ie only 12 of sample size
32
Religious Composition of Sample
Religion of respondents is more dominating factor in occupation for their
livelihood Researcher has also tried to accumulate the data about the religion of
respondents through interview schedule In the present study respondents religion was
broadly classified in 4 category ie Hindu Muslim Christian and others
Table-29
Religion Wise Classification of Marketing Participant
Sl No Name of APMC
Religion Total
Hindu Muslim Christian Others
1 Gulbarga 22 (880)
02 (80)
01 (40)
- 25 (200)
2 Bidar 22 (880)
03 (120)
- - 25 (200)
3 Koppal 21 (840)
04 (160)
- - 25 (200)
4 Raichur 21 (840)
04 (160)
- - 25 (200)
5 Bellary 23 (920)
01 (40)
01 (40)
- 25 (200)
Total 109 (872)
14 (172)
02 (060)
00 (000)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total
From the above Table 29 it is clear that majority ie 872 of total sample
size operating in study area of Gulbarga division belonged to Hindu religion followed
by Muslim religion ie 112 of sample group This is in conformity with the pre
dominantly Hindu dominant population composition of the area as compared to
Muslim religion If can be interpreted from the above that sample size comprised of
minor number ie 160 of respondents belonged to the Christian religion
33
NATURE OF PARTICIPANTS
The success or failure of any market depends upon the functionaries existing
in the market Hence the active participation of all types of functionaries is very
important in smooth conduct of market functions In order to facilitate for smooth
marketing of agriculture commodities each and every market is provided with
different market functionaries It is compulsory according to KAPM (R) Act 1966 for
every functionary functioning in the APMCs to take a valid licence from respective
APMC by paying necessary fees An analytical account of the market functionaries
operating in different selected markets are given in Table 210
Table-210
Nature of Participant
Sl No
Name of participant
Name of APMC Total
Gulbarga Bidar Koppal Raichur Bellary
1 Commission Agent
11
09
08
10
12
50 (400)
2 Hamalas 04
03
04 05 04 20 (160)
3 Trader 07 08 08 06 06 35 (2800)
4 Grader 01 01 01 01 01 5 (400)
5 Processor - 01 01 01 - 3 (240)
6 Broker 01 03 03 02 01 10 (80)
7 Others 01 - - - 01 02 (160)
Total 25 (200)
25 (200)
25 (200)
25 (200)
25 (200)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
A cursory look at the Table 210 reveals that commission agents traders and
hamals are the major market functionaries in the market Out of total 125 participants
34
respondents 40 percent were playing the role of commission agents 28 percent of
them were acting as traders and hamals constitute 16 percent The percentage of
broker grader and processor in selected sample size was 8 4 percent and 24
percent respectively The above figures shows whose role very important in market
place
Experience in Market Yard
Market participants experience in the market yard will helps to understand the
level of their satisfaction with regard to the economic benefit from the job and their
attitude towards it Satisfied market participant in APMC will strict to a single job for
a long period The details of their years of experience in market yard in the area
under study of sample size is given in the below table
Table-211
Years of Experience in Market Yard
Sl No Particulars
Experience in Market Yard
Below 10 11 ndash 20 21 ndash 30 30 and above Total
1 Gulbarga 02 18 03 02 25 (200)
2 Bidar 01 17 04 02 25 (200)
3 Koppal 01 21 03 - 25 (200)
4 Raichur 02 18 04 01 25 (200)
5 Bellary 02 22 01 01 25 (200)
Total 8 (64)
96 (768)
15 (120)
6 (48)
125 (10000)
Source Field survey Note Figures in brackets indicates percentage to total
Table 211 exhibits the experience of the respondents in the market yard of
125 market yard of 125 market participant respondents Out of total sample size
768 are laying in between 11-20 years of experience in the market yard 15
35
respondents which constitute 12 of sample group had an experience of 21-30 years
in the market yard Below 10 years and above 30 years of experience in market yard
of respondents were 64 and 48 of sample respondents Finally to conclude about
the market yard experience old market participant were high in number as compared
to the new market participants ie less than 10 years of experience in market yard
Motivational Factors ndash Sample Study
The word lsquomotivationrsquo comes from the Latin meaning ldquoTo moverdquo it generally
means an inner or outer drive to meet a need or a good This is the impelling force
which draws the human from his house and inspires her to start something on his own
The variables comprise of heredity more profitable uncertain induced
unemployment and others Accordingly by incorporating the above the researcher
has asked the respondents to rank the motives of their present profession Their
responses were presented in the following table
Table-212
Motivated Factors of Profession
Sl No Particulars
Motivated Factors Total
Heredity More Profitable
Uncertain Induced
Un Employment Others
1 Gulbarga 22 - 02 01 - 25 (200)
2 Bidar 16 03 06 - - 25 (200)
3 Koppal 18 03 03 01 - 25 (200)
4 Raichur 22 01 02 - - 25 (200)
5 Bellary 23 01 01 - - 25 (200)
Total 101 (808)
8 (64)
14 (112)
2 (16)
00 (00)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total It is evident from the Table 212 that heredity was the most dominant motive
with 8080 of sample size This group distinctively falls under ldquopushrdquo category of
profession who resorted to this profession because of same compulsions This
compulsion cited were death of Kartha to supplement meager income at home etc
36
This way followed by uncertain induced with a percentage of 1120 of
sample size The respondents quoted few reasons for choosing their profession such
as poverty no alternative jobs to do and lower education etc 64 of total
respondents opinioned that they were chosen this profession because of more
profitable
Satisfaction with Marketing Practices
In the process of marketing there are three dimensions these are time space
and form The marketing function is having a one or the combination of these three
dimensions While performing these functions the different functionaries are rewarded
for their services at every level The marketing cost the market margins and the
competition in the market is different to product to product Similarly the market
functions very from product to product for example the marketing of grains are
having different functions than that of the marketing of vegetables Respondentrsquos
satisfaction level towards these marketing practices are shown in below table
Table-213
Satisfaction of Marketing Practices
Sl No Particulars Level of Satisfaction
Total Satisfied Unsatisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 24 (960)
01 (40)
25 (200)
4 Raichur 24 (960)
01 (40)
25 (200)
5 Bellary 23 (920)
02 (80)
25 (200)
Total 118 (944)
7 (56)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
37
Table 213 shows the district wise market participant respondents level of
satisfaction towards marketing practices It could be seen from the above table that
more than 94 of respondents are of the opinion that the quality of marketing
practices practiced in the APMC yard is fully satisfied and rest of respondents ie 56
percent were fully expressed that the marketing practices are unsatisfied
The level of satisfaction in Gulbarga district APMC Koppal district APMC
and Raichur district APMC was above 96 but it was 9200 in Bidar and Bellary
From the above opinion and analysis of responses it can be concluded that few steps
are necessary to take by APMCs to make 100 satisfaction in for marketing
practices
Farmerrsquos Activeness
Market participants were interviewed with an intension to extract their level of
satisfaction in the farmerrsquos activeness in the APMC yard in selected units
Respondents are given two option regarding farmers active involvement in marketing
of their produce ie satisfied or unsatisfied The results of the investigation are
presented in Table 214
Table-214
Satisfaction with Farmers Activeness in APMC
Sl No Particulars Satisfaction with Farmers
Total Satisfied Unsatisfied
1 Bidar 13 (520)
12 (480)
25 (200)
2 Gulbarga 18 (720)
07 (280)
25 (200)
3 Koppal 10 (400)
15 (600)
25 (200)
4 Bellary 21 (840)
04 (160)
25 (200)
5 Raichur 15 (600)
10 (400)
25 (200)
Total 77 (616)
48 (384)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
38
Table 214 gives the respondents level of satisfaction with the farmerrsquos
activeness in marketing activities in APMC yard More than 61 of market
participant respondents fully satisfied with farmers activeness but 38 of them are
fully unsatisfied and suggested to participate actively in marketing activities Few
number of farmers physically visiting and actively involved during the sale of their
produce An awareness programme from APMC is very necessary to help farmers and
to motivate them to involve in marketing activities
Facilities at APMC
Basic infrastructure at APMC yard is very much essential for smooth
functioning of marketing activities The selected APMC for present study has
provided necessary facilities such as water canteen communication transport and
banking and finance etc to the market participants But all the participants
respondents are unable to get those facilities The percentage of functionary
respondents who have availed these facilities and those who have deprived of the
facilities are given in the Table 215
Table-215
Facilities at the APMC Yard
Sl No
Facilities at APMC
Name of District Total Gulbarga Bidar Koppal Raichur Bellary 1 Water 20
(1886) 19
(1792) 22
(2075) 23
(2169) 22
(2075) 106
(848) 2 Canteen 14
(2121) 13
(1969) 12
(1818) 11
(1667) 16
(2424) 66
(528) 3 Communication 24
(2264) 21
(1981) 20
(1886) 22
(2075) 19
(1792) 106
(848) 4 Market
information 22
(2075) 20
(1886) 19
(1792) 24
(2264) 21
(1981) 106
(848) 5 Transport - - - - - - 6 Health and
sanitation 11
(2291) 09
(1875) 08
(1667) 10
(2083) 10
(2083) 48
(384) 7 Banking and
Finance - - - - - -
8 Others - - - - - - Total 125
(1000) Source Field survey Note Figures in brackets indicates percentage to total
39
A glance over the above Table 215 reveals the various facilities provided at
APMC yard in selected sample size More than 84 of functionary respondents
opinioned positively about water facility 52 of them about canteen 38 about
health and sanitation etc It is to be noted here that no single APMC has provided
transportation facilities and banking and finance which is very vital in marketing
Satisfaction about Facilities
APMCs have provided several infrastructure facilities to market participants
These facilities provided by APMC to market functionaries helps them to provide
good services to farmers efficiently
Table-216
Level of Satisfaction about the Facilities
Sl No Name of the District
Level of Satisfaction Total
Fully Satisfied Not Satisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 23 (920)
02 (80)
25 (200)
4 Raichur 21 (840)
04 (160)
25 (200)
5 Bellary 21 (840)
04 (160)
25 (200)
Total 112 (896)
13 (104)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
It is observed from the Table 216 that a large number of market participants
(ie 896) were fully satisfied with the infrastructure facilities available inside the
market yard Nearly 104 percent expressed their dissatisfaction over the facilities
provided by APMCs Gulbarga APMC was considered to be better (9600) in
facilities as compared with other four districts selected for the present study Raichur
40
and Bellary districts APMCs had needed more important in terms of facility to satisfy
market functionaries Market participants are directed to fallow the specified
techniques These techniques are prescribed by the Indian standards institute The
techniques suggests to use proper ingredients in specified proportions The graded
processed goods bear ISI label indicating that it contained the graded and good quality
if the product The selected market participants were also asked about the quality of
marketing functions The analysis of Table 217 revel that more than 76 of
respondents had satisfied the quality of marketing function in five districts whereas
more than 20 of them not satisfied with quality of services in the market yard
41
Table-217
Level of Satisfaction with Quality of Marketing Services
Quality of Services
Gulbarga Bidar Koppal Racihur Bellary Total Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Assembling 19 06 19 6 21 4 19 06 19 06 125
(100) Processing 22 03 22 03 23 02 22 03 22 03 125
(100) Grading 15 10 16 09 14 11 15 10 15 10 125
(100) Storing - 25 - 25 - 25 - 25 - 25 125
(100) Weighment 12 14 10 13 11 12 14 14 13 15 125
(100) Banking and finance
04 21 03 22 02 23 04 21 04 21 125 (100)
Rest house 02 23 01 24 02 23 02 23 03 22 125 (100)
Insurance - 25 - 25 - 25 - 25 - 25 125 (100)
Source Field survey Note Figures in brackets indicates percentage to total
42
CHAPTER-III CUSTOMER PERCEPTION ABOUT MARKETING
MANAGEMENT OF APMC IN GULBARGA DIVISION
INTRODUCTION
In keeping with very little of the research the survey is conducted to
supplement the evaluation through the primary data These attempts bring out the
basic problems and difficulties if any in the implementation of the APMCs Act
through state agricultural marketing board Different types of schedules are used for
evaluating the working of the APMC act However the agricultural marketing is
clearing a midwife between agricultural production and agricultural marketing on the
one hand and the former beneficiaries on the other hand But the farmers might have
direct link what so ever with marketing agencies therefore a schedule for the farmers
which has been different from what we have used for market participants As such the
marketing participant of the agriculture market are the main pillars for
implementation of the schedule The questionnaire has been personally given to
farmers of the sample groups and the researcher had a detailed personal discussion
with the market participants with regard to working or agriculture marketing The
main focus of the study was evaluation of management of agricultural produce
marketing committees in Karnataka from the point of farmers therefore our survey
schedule covers the background of farmers and market functionaries such as age
education religion family background source of incomes land holdings of both
farmers and market participant were collected Some of these aspects have been
discussed in the following paragraphs
43
Table-31
District Wise Selection of Farmers Sample Size
Name of the District Frequency Percentage Cumulative
Percentage
Gulbarga 50 200 200
Bidar 47 188 388
Koppal 49 196 584
Raichur 52 208 792
Bellary 52 208 1000
Total 250 1000 -
Source Field survey
Table 35 provides the information about the district wise selection of member
farmers which have been chosen for the present study The total sample size for the
study was 250 farmers Raichur and Bellary district form 2080 percent each and
Gulbarga district form 2000 percent and Bidar and Koppal district 188 percent and
196 respectively The member of farmers selected for the purpose of was equally
distributed to all five districts with little change in percentage The reason for that is to
identify the district among the five districts where APMCs are working upto the
aspirants of farmers
44
Table-32
Age Wise Classification of Agriculturist
APMCs District
Age in Years Total
Below 20 20 ndash 40 41 ndash 60 61 and above
Bidar 01 22 21 03 47 (186)
Gulbarga 01 23 23 03 50 (200)
Koppal 01 23 22 03 49 (196)
Raichur 01 24 24 03 52 (208)
Bellary 02 24 24 02 52 (208)
Total 06 (240)
116 (4640)
114 (4560)
14 (56)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It could be found from the Table 32 that 4640 percent of farmer respondents
were aged between 20-40 years 45-60 percent in between 41-60 years and 5-6
percent above 61 years Only 240 percent of total sample size were aged below 20
years The above figures about the age of agriculturists cleared that young and middle
aged formers are more actively participated in the APMC yard when compared to old
age farmers
Educational Qualification of Farmers
The level of the education of the farmers is one of the most important factor
which governs many more factors such as deciding the cropping pattern crop
rotation use of different inputs in farming optimum time of cultural practices and
where to sell the agricultural produce The following table shows the educational
qualifications of the farmer respondents
45
Table-33
Education Wise Classification of Respondents
Name of the APMCs
Educational Qualification
Total Literate Illiterate
Primary Secondary Degree PG and Others
Gulbarga 25 (500)
15 (300)
4 (80)
02 (40)
4 (80)
50 (200)
Bidar 23 (4894)
15 (3191)
03 (638)
02 (425)
4 (852)
47 (188)
Koppal 25 (5102)
16 (3265)
03 (612)
- (00)
5 (1021)
49 (196)
Raichur 26 (500)
16 (3076)
03 (576)
03 (576)
4 (772)
52 (206)
Bellary 28 (5385)
16 (3076)
03 (576)
- (00)
5 (963)
52 (208)
Total 127 (5080)
78 (3120)
16 (640)
07 (280)
22 (880)
250 (100)
Source Field study
Note Figures in bracket indicates percentage to total
From the above Table 33 it could be seen that out of the total 250 farmers
respondents selected for the present study 5080 percent of them are having primary
level of education 3120 percent of them have studied upto secondary Only 640
percent of total sample size possessed graduate level education followed by 280
percent post graduate and other qualification The illiterate percentage of respondents
total sample size is 880
Sources of Incomes
There are different sources of incomes available to farmers such as agriculture
income business self employment and employment in other organizations
Agriculture income is considered as major source of income to them and other
sources of incomes are secondary importance The details of their sources of incomes
along with agriculture incomes is shown in the table below
46
Table-34
Sources of Income of Respondents
Sl No
Name of the Market
Source of Income Total
Agriculture Business Employment Others
1 Gulbarga 40 (800)
6 (120)
2 (40)
2 (40)
50 (200)
2 Bidar 38 (8085)
5 (1063)
2 (1425)
2 (427)
47 (188)
3 Koppal 39 (7959)
5 (1020)
2 (408)
3 (613)
49 (196)
4 Raichur 42 (8076)
6 (1154)
3 (576)
1 (194)
52 (208)
5 Bellary 42 (8076)
6 (1154)
2 (385)
2 (385)
52 (208)
Total 201 (8040)
28 (1120)
11 (440)
10 (40)
250 (1000)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 34 that 8040 of respondents were having
agriculture income and 1120 percent had business income followed by 440 percent
and 40 percent of respondents from employment and other sources respectively This
will clearly indicates the much dependency of farmer respondents on agriculture for
income to meet the cost of livelihood This fact was same in five districts selected for
the study
Annual Gross Income
The farmers are getting incomes not only from agriculture but also from the
other sources discussed in previous table The gross annual income of the farmers
itself indicates the standard of living and their life style As far as in other farmers are
concerned they fully depend on agriculture for their livelihood Due to uncertainty in
agricultural production their annual income is getting fluctuation which results suicide
of many farmers in Karnataka
47
One side no guaranteed regular income and the other side rise in prices of
consumable goods forced them for borrowing money from outside to meet cost of
living and agricultural expense The researcher collected information about annual
gross income of respondents and shown in below table
Table-35
Annual Gross Income of Respondents
Sl No Annual income (Rs) Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 50000 to 150000 8 (160)
8 (1702)
8 (1632)
9 (1731)
9 (1730)
42 (166)
2 150001 to 250000 18 (360)
17 (3617)
17 (3469)
19 (3654)
18 (3462)
89 (356)
3 250001 to 350000 14 (280)
13 (2766)
14 (2857)
15 (2885)
15 (2885)
71 (289)
4 350001 to 45000 5 (100)
5 (1063)
5 (1022)
5 (962)
6 (1154)
26 (104)
5 450001 and above 5 (100)
4 (852)
4 (1020)
4 (768)
5 (769)
22 (88)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 35 that 166 percent of the respondents
were having the income of Rs 50000 ndash 150000 per annum income category and
356 percent had an income between Rs 150001 to Rs 250000 The percentage of
respondents in the Rs 250001 to 350000 range was found to be 289 percent
whereas those with an income less than Rs 450000 but above Rs 350001
accounted for 104 percent of the respondents The respondents with an annual
income greater than Rs 450000 made up the remaining 88 percent of the total
sample size It is learnt from the study that the farmers were from different types of
age groups education qualification and income range
48
Type of Family
Type of the family also determines the income of farmers When the partition
of agriculture land take place it badly affects on the quantity of agriculture
production If agriculture activities are carried out in joint family leads bulk
production and minimization of agriculture cost The data regarding the type of family
was also collected through schedule of questionnaire prepared for the farmers is
shown in below table along with their percentage to total sample size
Table-36
Type of Family of Farmer Respondents
Sl No Particulars Type of Family
Total Nuclear Family Joint Family Individual
1 Gulbarga 36 (1988)
14 (2029)
- 50 (2000)
2 Bidar 34 (1878)
13 (1884)
- 47 (1880)
3 Koppal 35 (1933)
14 (2028)
- 49 (1960)
4 Raichur 37 (2044)
15 (2173)
- 52 (2080)
5 Bellary 39 (2157)
13 (1886)
- 52 (2080)
Total 181 (7240)
69 (2760)
- 250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table depicts the classification of respondents on the basis of type
of family ie nuclear family or joint family 7240 percent of sample size are
belonged to nuclear family and remaining 2760 percent are living still in joint family
This clearly indicated that majority of preferred not to stay with joint family but want
to be in nuclear family
49
Family Size
Family size means the number of family members staying together in a single
family The farmers were also asked about the number of members living together
which helps to know their tendency towards big family or small family Big family
with small agriculture land holding found to be different to manage economic needs
and vice versa Keeping this point in mind data was collected about the size of family
members and is shown in Table 37
Table-37
Family Size of Respondents
Sl No Name of the Market Family Members
Total Below 4 4 ndash 8 8 ndash 12 Above 12
1 Gulbarga 15 (2027)
27 (2000)
05 (2083)
03 (1764)
50 (2000)
2 Bidar 14 (1891)
25 (1851)
05 (2083)
03 (1764)
47 (1880)
3 Koppal 15 (2027)
24 (1777)
06 (2500)
04 (2353)
49 (1960)
4 Raichur 15 (2027)
31 (2296)
04 (1667)
02 (1176)
52 (2080)
5 Bellary 15 (2028)
28 (2076)
04 (1667)
05 (2943)
52 (2080)
Total 74 (2960)
135 (5400)
24 (960)
17 (680)
250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table presents the classification of the respondents on the basis of
the size of the family members The category is done family below four members 4
members to 8 farmers respondents which constitute 54 percent of the sample group
had members between 4-8 and 2960 percent of sample size had family members
below 4 followed by 960 percent and 680 percent had 8-12 members and above 12
members respectively
50
Agriculture Land Holdings
The annual gross income of the respondents largely depends on the agriculture
land holdings by the farmers an attempt has been made to collect the details of the
agriculture land holding by the farmer respondents The size of the land holdings and
socio economic conditions of the farmers play an important role in farming as well as
marketing activities The size of the land holdings by sample size selected for the
present study is shown in the below table
Table-38
Total Agriculture Land Holdings
Sl No
Name of the Market
Total Agriculture Land Holding Total Below 5
Acres 5 ndash 10 Acres
11 ndash 15 Acres
Above 16 Acres
1 Gulbarga 3 (60)
20 (400)
9 (180)
18 (360)
50 (2000)
2 Bidar 3 (638)
19 (4042)
9 (1915)
16 (3405)
47 (188)
3 Koppal 3 (0612)
20 (4082)
9 (1837)
17 (3569)
49 (1960)
4 Raichur 4 (769)
21 (4038)
10 (1923)
17 (327)
52 (2080)
5 Bellary 4 (769)
21 (4038)
9 (1730)
18 (3463)
52 (208)
Total 17 (68)
101 (404)
46 (184)
86 (3440)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above Table 38 revels that 404 percent of the total respondents are small
farmers (ie 5 acres or more but less than 10 acres) 3440 percent of sample groups
are large farmers ie 16 acres or more than 16 acres and only 68 percent of
respondents are having less than 5 acres of cultivating land (marginal farmers)
Major Crops Grown
Generally agriculture crops are grown on basis and depending on the agro
climatic conditions as well as the socio-economic conditions of the farmers The study
51
was conducted to know the major crops grown by the farmer respondents selected for
the present study
Table-39
Annual Crop Grown in Land
Crop Quantity in Quintals
Total 1-25 26-50 51-75 76-100 100 and
above
Red gram 10 50 22 06 10 98
Green gram 96 16 04 - - 116
Black gram 22 38 04 64 - 128
Jawar 99 36 04 02 - 141
Maize 11 33 19 - 02 65
Bajra 07 02 05 07 04 25
Bengal gram 09 35 12 - 36 92
Sugarcane 21 08 04 08 - 41
Others 06 08 12 06 - 32 Source Field study
The quantity of crop grown by the farmers annually is given in the above
Table 39 The data about the different crop grown by the sample size of farmers are
shown in quantity along with the percentage of each crop to total crop grown by the
sample farmers
The table reveals that 5640 percent of the farmers respondents cultivate jowar
followed by 4640 percent farmers ever growing green gram red gram (3920)
maize (26) Black gram (2560) percent Bengal gram (368) and sugarcane
(1640) other crops grown constitute 5120 to total which included onions
groundnuts pulses chillies wheat and paddy etc
It can be seen clearly from the same table that red gram jowar green gram
and black gram are cultivated by the farmer respondents partially for self consumption
purpose and partially for selling It could also be noted from the same those
commercial crops like sugarcane bajra maize chillies sunflower paddy and onions
52
find a major portion in the cropping pattern of the farmer respondents This clearly
indicates the higher degree of commercialization of agricultural production by the
farmers in the Gulbarga division
Preference of Sale of Agriculture Produce
Marketing today is becoming more complicated with the advancement of the
civilization The commodity to be marketed must be of value It shouldnrsquot be a free
gift of the nature easily available for mere picking The farmer wish to have the
maximum share in the price of the products and on other side he wish to purchase the
inputs at the minimum price As he is interested to maximize his profits on sale of his
agriculture produce he will always in search for the market place where he can get
good price An attempt has been made in schedule to acquire information about the
preference of sale of agriculture produce by the sample respondents is shown in the
Table 310 and 311
Sale of Agriculture Produces
Table-310
Sale of Agriculture Produces
Sl No
Name of Market
Sale of Agriculture Produces Total
Sample Open Market APMC Confirmation Other
1 Gulbarga 21 (200)
46 (200)
080 (200)
01 (2500)
50 (2000)
2 Bidar 20 (1905)
43 (1870)
078 (1950)
-- 47 (188)
3 Koppal 21 (200)
45 (1956)
078 (1950)
01 (2500)
49 (196)
4 Raichur 22 (2095)
48 (2086)
083 (2075)
01 (2500)
52 (208)
5 Bellary 21 (200)
48 (2088)
081 (2025)
01 (2500)
52 (208)
Total 105 (420)
230 (920)
04 (16)
04 (16)
250 (100)
Source Field survey Note Figure in bracket indicates percentage to total
53
After the development of regulated markets farmers preferred to sell their
agriculture produce in the APMC yard this was clear in the Table 310 The response
of sample size was collected about sale of the agriculture produce 92 percent of
sample size preferred to sold only in the APMC market as to overcome from the
problems and malpractices in the open markets and 42 percent in open market 16
percent of sample each in confirmation market and other type of sale
Table-311
Preference of Sale of Agriculture Produces by Respondents
Sl No
Name of the Market
Preference of Sale Total Sample Local
Market Taluks Market
District Market
Other State
1 Gulbarga 23 (200)
23 (2035)
25 (2016)
01 (250)
50 (200)
2 Bidar 22 (1913)
21 (1858)
23 (1855)
01 (2500)
47 (188)
3 Koppal 23 (200)
22 (1946)
24 (1935)
-- 49 (196)
4 Raichur 24 (2086)
24 (2124)
26 (2096)
01 (2500)
52 (208)
5 Bellary 23 (2001)
23 (2037)
26 (2098)
01 (2500)
52 (208)
Total 115 (460)
113 (452)
124 (496)
04 (160)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The above table gives the preference of sale of agriculture produce by the
farmer respondents Researcher has discussed with the respondents and mobilized the
data whether they prefer to sell their agricultural produce in local market taluka or
district market
Higher percentage of farmers ie 4960 is sold their agricultural produce in
the district to get better price compared to local market 46 percent of them opinioned
that they are selling their produce in local markets due to infrequency of
transportation facilities and to save the expenditure from bringing produce to district
or taluk market Some farmer respondents ie 4520 percent are sold near to taluka
market and rest of them (160 percent) through direct sale to whole seller retailer or
brokers etc
54
Mode of Transportation
Most of the agricultural goods are not consumed at the places of their
production They are required to be transported in the various stages of the market
Right from lifting of the produce from the threshing floor to its ultimate consumer the
transportation is required to the farmer to bring the agricultural produce to the market
The various means of transport are used These are bullock carts horse tanga tractor
trolleys trucks etc Transport being the most important function of marketing In case
of transport in the rural India though in modern days its importance is declining now
the power operated means like tractors trolley trucks are being used but still bullock
cart and horse tonga is an important means of transport in agricultural marketing The
study had been conducted to know the mode of transport means used by the farmer
respondents to transport the agricultural produce from farm place to market place
same is presented in the table
Table-312
Mode of Transportation of Agriculture Produce by Respondents
Sl No
Name of the Market
Mode of Transportation Total Sample Bullock
Cart Tractor and
Trucks Hired
Vehicles Own
Vehicle 1 Gulbarga 18
(200) 16
(1928) 21
(1963) 01
(2500) 50
(200) 2 Bidar 17
(188) 15
(1807) 20
(1869) - 47
(188) 3 Koppal 18
(200) 16
(1928) 21
(1963) 01
(2500) 49
(196) 4 Raichur 19
(2111) 17
(2048) 22
(2056) 1
(2500) 52
(208) 5 Bellary 18
(2009) 19
(2289) 23
(2149) 01
(2500) 52
(208) Total 90
(360) 83
(322) 107
(428) 04
(160) 250
(100) Source Field study Note Figures in bracket indicates percentage to total It can be seen from the above table that maximum ie more than 42 percent
of our farmer respondents were transported their agriculture produce through hired
vehicle followed by 360 percent of them through bullock cart owned by themselves
Modern means of transportation such as tractors and trucks are used by 322 percent
of sample size The above figure in table indicates that dependency on traditional
55
mode of transportation was decreasing when it compared to modern mean to
transportation
Market Charges
As per the bye laws approved by the chief marketing officer according to the
Act market charges are levied by the market committees In all selected market
committees for the present study in the Gulbarga division only three types of market
charges are levied to the farmers for sale of his agricultural produce in the regulated
markets One commission to commission agent which is fixed at 2 in all the markets
but other market charges different from one market to another market depending upon
the decisions to this effect by the respective market committees A part from
commission all APMCs in the sample size charges hamali and weighment charges In
some APMCs cleaning charges are also levied for cleaning the produce which is
included in other markets in hamali Thus no unauthorized deductions are made now
in any of the markets in the division Few secretaries of the APMCs during the field
study opined that the charges are quite nominal and the services rendered are more
valuable than the charges and they cannot be quantified
Table-313
Market Charges by APMC
Sl No Name of Market Market Charges Total Sample Very Low Very High Fair Average
1 Gulbarga 03 (60)
15 (300)
10 (200)
22 (440)
50 (200)
2 Bidar 02 (425)
15 (3191)
11 (2340)
19 (4044)
47 (188)
3 Koppal 02 (408)
14 (2857)
11 (2245)
22 (4490)
49 (196)
4 Raichur 03 (576)
16 (3076)
10 (1923)
23 (4423)
52 (208)
5 Bellary 02 (384)
17 (3269)
10 (1923)
23 (4424)
52 (208)
Total 12 (480)
77 (3080)
52 (2080)
109 (4360)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total From the above table it could be seen that 4360 percent of farmer respondents
are of the opinion that APMC is charging average ie neither too high nor too low
market charges on the sale of agricultural produce by the farmers On the other hand
56
3080 percent of farmer respondents dissatisfied with the market charges by the
APMC as they expressed that market charges are very high in APMC yard as
compared with open market Though 480 percent of them are fully satisfied and
2080 percent of respondents were reacted positively about the market charges
Carrying Costs
In case of agricultural marketing the transport cost is to be paid by the farmer
if he is selling the produce in the market but if he is selling to the village trader the
cost is to be paid by the trader Carrying cost is the most important cost in the process
of agricultural marketing The carrying cost is more important in context of place
utility of product The efficiency of the marketing is dependent on reducing the cost
of carrying Generally the cost of carrying of bullock cart is higher as compared to
the power operated means A survey was conducted to ascertain the opinion of the
farmer respondents towards the carrying cost paid by them in study area and the data
so collected was shown in the table below
Table-314
Carrying Cost Paid by Respondents
Sl No Name of Market Carrying Cost Total Sample Very Low Very High Fair Average
1 Gulbarga 06 (1200)
10 (2000)
03 (600)
31 (6200)
50 (200)
2 Bidar 05 (1063)
09 (1915)
03 (638)
30 (6384)
47 (188)
3 Koppal 06 (1224)
09 (1836)
02 (408)
32 (6532)
49 (196)
4 Raichur 07 (1346)
11 (2115)
03 (576)
31 (5963)
52 (208)
5 Bellary 06 (1153)
11 (2115)
04 (769)
31 (5963)
52 (208)
Total 30 (1186)
50 (2000)
15 (580)
155 (6234)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above table shows the carrying costs paid by the farmer respondents to
carry the goods from one place to another place with in the market yard One thing is
clear from the above table that more than 60 of respondents are satisfied with
carrying costs paid by them But minor percentage ie 20 percent of respondents not
57
satisfied saying transporters were charging heavy cost and 580 percent were
opinioned that transportation cost paid by them was neither high or nor low but it was
fair From these data analysis maximum number of farmers respondents were fully
and partially satisfied with carrying cost paid in the market yard
Facilities Provided at APMC
Table-315
Facility Provided at APMC
Particulars
Districts Grand Total
Gulbarga Bidar Koppal Raichur Bellary
Yes No Yes No Yes No Yes No Yes No Yes No Total
Water 26 23 27 24 26 24 27 23 27 23 133 (5320)
117 (4680)
250 (100)
Toilet 4 46 4 43 4 45 5 47 5 47 22 (5320)
228 (9120)
250 (100)
Canteen 13 37 12 35 12 37 13 39 12 39 62 (2480)
188 (7520)
250 (100)
Communication 27 23 26 23 27 22 26 24 27 25 135 (5400)
115 (4600)
250 (100)
Shopping property
21 29 20 27 20 29 20 32 20 32 101 (4040)
149 (5960)
250 (100)
Market information
28 22 27 20 27 22 29 23 29 23 140 (5600)
110 (4400)
250 (100)
Other facilities (if any)
29 21 28 19 28 21 30 22 30 22 145 (5800)
105 (4200)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Table-316
Coefficient Correlation between Varieties with in Facilities Provided by APMC
Sl No
Facilities by APMC
Facilities by APMC
Water Toilet Canteen Commu-nication
Shopping Property
Market Information
Other Facilities
1 Water 1000 235() 535() 984() 749() 428() (a)
2 Toilet 235() 1000 474() 230() 376() 218() (a)
3 Canteen 535() 474() 1000 526() 693() 505() (a)
4 Communication 984() 230() 526() 1000 749() 411() (a)
5 Shopping property
749() 376() 693() 749() 1000 705() (a)
6 Market information
428() 218() 505() 411() 705() 1000 (a)
7 Other facilities (if any)
(a) (a) (a) (a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
58
The coefficient correlation calculated between the variables (one variable with
the another variable) within the facilities provided by APMC is shown in the above
table Each variable is positively correlated with other variable
Table-317
lsquotrsquo - Test Values
One-Sample Statistics
Facilities by APMC N Mean Std Deviation
Std Error Mean
Water 250 14680 5000 3162E-02
Toilet 250 19120 2839 1795E-02
Canteen 246 17480 4351 2774E-02
Communication 250 14600 4994 3158E-02
Shopping Property 246 15894 4929 3143E-02
Marketing Information 250 14400 4974 3146E-02
Other Facilities 145 20000 0000(a) 00000 Note a) Cannot be computed because the standard deviation is 0
One-Sample Test
Facilities by APMC
Test Value = 0
t Df Sig
(2-tailed) Mean
Difference
95 Confidence Interval of the
Difference
Lower Upper
Water 46424 249 000 14680 14057 15303
Toilet 106500 249 000 19120 18766 19474
Canteen 63015 245 000 17480 16933 18026
Communication 46225 249 000 14600 13978 15222
Shopping Property 50573 245 000 15894 15275 16513
Marketing Information
45776 249 000 14400 13780 15020
59
Dissemination of Market Information
The dissemination of market information is most important so to make the best
use of this information There is no use of collection of data if it is not disseminated
well in time There are different sources for dissemination of market information such
as news papers radio and television department of government post and telephone
etc
The different news papers published in English Hindi and regional languages
are publishing the information about piracy of various commodities in different
markets There are periodical magazines and journals published weekly fortnightly or
monthly Radio and television is depicting the news about markets and broadcast and
televise the information about prices daily in its programmes The various department
of the government publish various reports concerned with agricultural marketing The
traders exchange the information about prices and arrivals in different markets
through telephone or through letters Price bulletins are published by directorate of
marketing and inspection providing information about prices and personal contact
between farmer to farmers farmer to trader etc is also a source of information The
following table provides the details of responses of source of market information
Table-318
Sources of Market Information
Sl No Particulars Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 Newspaper 32 (2013)
30 (1886)
31 (1950)
33 (2075)
33 (2015)
159 (636)
2 Radio and TV 42 (1981)
40 (1886)
42 (1981)
44 (2075)
44 (2075)
212 (848)
3 Dept of government 05 (2083)
05 (2083)
05 (2083)
05 (2083)
04 (1667)
24 (96)
4 Post and telephone - - - 01 (5000)
01 (5000)
02 (08)
5 Personal contact - - - 01 (5000)
01 (5000)
02 (08)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
60
A comparative analysis of sources of market information reveals that 848
percent of farmer respondents obtained the market information through radio and
television followed 6360 percent from newspapers and 372 from price bulletins
about the market 96 of total sample size depended on the various departments of
the governments such as directorate of economics and statistics of the central
government directorate of economics and statistics of the sates the agricultural
marketing departments of states etc about the prices in different regulated markets
Personal contact and post and telephone sources of market information is considered
to be a least sources from respondents
Table-319
Defects in Market Information
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Ignore retail prices 11 (2200)
10 (2553)
10 (2041)
11 (2115)
11 (2115)
53 (212)
2 Delay in news 13 (2600)
12 (2553)
13 (2653)
14 (2692)
14 (2692)
66 (2640)
3 Wide range of prices 05 (1000)
06 (1277)
06 (1224)
06 (1154)
07 (1346)
30 (1200)
4 Incomplete information
08 (1600)
08 (1702)
08 (1632)
09 (1730)
08 (1538)
41 (1640)
5 Illiteracy 07 (1400)
07 (1489)
07 (1428)
08 (1538)
08 (1538)
37 (148)
6 Others 06 (1200)
04 (851)
05 (1020)
04 (769)
04 (769)
23 (920)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
From the above table it can be seen that farmers are getting different
advantages for grading the products Their response is not homogenous ie 38
percent of the farmers are supported grading in easy marketing of the agriculture
produce 9680 percent are favoured grading in establishing to face competition and
61
128 percent of sample group opinioned about the grading that it will helps in
obtaining higher prices Only 6 of them favoured to reduction of cost of marketing
and 64 to easy to get finance facilities
Table-320
Ranking of Defects in APMC
Defects in APMC Ranking of Defects
Total First Second Third Fourth
No advance fund 32 (120)
216 (864)
02 (08)
02 (08)
250 (100)
Difficulty of storage 230 (920)
14 (560)
4 (160)
04 (160)
250 (100)
Lack of transportation 10 (40)
20 (80)
218 (872)
02 (080)
250 (100)
Lack of grading 10 (40)
179 (716)
02 (080)
59 (236)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The survey of APMC defects to rank on the basis of the respondents
preferences is shown in the above table 92 of the total respondents were opinioned
that the major defect in the APMC yard is difficulty of storage facilities followed by
no advance fund to farmers to meet the pre harvest expenses which constitute 864
of sample group
Table-321
Coefficient Correlation between Variables within Defects in Regulated Markets
Sl No
Defects in Regulated Markets
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 No Advance Money 1000 -354() 763()
2 Difficulty of Storage -354() 1000 044
3 Lack of Transport 763() 044 1000 Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
62
The details of the coefficient correlation calculated between all the variable of
defects in regulated markets are given in the above table Some variables within the
defects in regulated markets are found positive and negative correlated with each
other
Table-322
Correlation between Facilities Provided by APMC with Effects in Regulated
Markets
Sl No Facilities by APMC
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 Water - 269 () 058 - 218 ()
2 Toilet - 114 074 - 057
3 Canteen - 059 - 097 - 116
4 Communication - 276 () - 0062 - 222 ()
5 Shopping property - 173 () - 008 - 166 ()
6 Market information - 293 () - 141 () - 232 ()
7 Other facilities (if any)
(a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant The above table shows the computed result of correlation between the
facilities provided by the APMC to the farmers in the APMC with the defects
prevailing in the market yard The correlation was found significant between water
facilities communication facility shopping property and market information with no
advance money with a value -0269 -0276 -0173 and -0293 respectively The
correlation was insignificant between toilet and canteen facility in the market yard
with the no advance money
Difficulty of storage in the market yard is one of the most severe problem
found in the selected APMC yard The correlation between difficulty of storage with
the facilities by APMC were found insignificant in all cases except with market
information ie - 0141 But with lack of transport defect in the market yard the
63
correlation was insignificant between toilet and canteen with the transport defect with
a value of -0057 and -0116 respectively
Table-323
Facilities to Improve Market Efficiency
Facilities Ranking of Facilities
Total First Second Third Fourth Fifth
Trade more commodities 24 (96)
173 (692)
49 (196)
02 (08)
02 (08)
250 (100)
Increase in facilities 221 (884)
22 (880)
03 (12)
02 (08)
02 (08)
250 (100)
Role of government 34 (136)
29 (116)
175 (700)
06 (240)
06 (240)
250 (100)
Representative from farmers 04 (160)
20 (80)
10 (40)
212 (848)
04 (160)
250 (100)
Reduction in market fee 04 (16)
100 (400)
55 (220)
41 (1640)
50 (200)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-324
Coefficient Correlation between Variables of Facilities to
Improve Market Efficiency
Sl No
Facilities to Improve Market
Efficiency
Facilities to Improve Market Efficiency More
Commodities to Trade
Increase in
Facilities
More Role of Government
Representation From Framers
1 More commodities to trade
1000 419() -316() 355()
2 Increase in facilities
419() 1000 -619() 048
3 More Role of Government
-316() -619() 1000 336()
4 Representation from Framers
355() 048 336() 1000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
64
The above table depicts the values of the coefficient correlation calculated
between the variables of facilities suggested by the farmer to improve market
efficiency in the APMC yard
Table-325
Correlation between Facilities Provided with Facilities to Improve Market
Efficiency
Sl No
Facilities Provided by
APMC
Facilities to Improve Market Efficiency More
Commodity to Trade
Increase in
Facilities
More Role of Government
Representation from Farmers
1 Water -221() 098 -212() -167() 2 Toilet -100 -300() 220() 181() 3 Canteen -028 -076 -129() -089 4 Communication -218() 103 -222() -167() 5 Shopping
property 057 019 -249() 008
6 Market information
-073 116 -353() -176()
7 Other facilities (if any)
(a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The data collected about the opinion of the farmer respondents towards the
facilities provided by APMC is correlated with the suggestions obtained from them to
improve market efficiency further was given in the above table The result of
correlation is shown significant between water and communication facilities with
more commodities need to be allowed to trade under notified agriculture crops in the
APMC yard the correlation value is -0221 and -0218 respectively
A negative correlation between toilet and increase in market facilities ie -03
clearly indicates that APMC should concentrate on other facilities to improve market
efficiency other than toilet facility The government is required to play a vital role in
the APMC yard to improve the market efficiency by providing financial assistance to
APMC officials enabling them to provide essential facilities to the farmers and market
functionaries The correlation was negatively correlated between the facilities
provided by APMC listed in the above table except in toilet facility ie positive
correlation 0220 The highest negative correlation was computed between market
65
information with government role ie -0353 followed by -0249 (between shopping
property with government role) The farmersrsquo representation in the market committee
is also one of the important aspect in availing market facilities The correlation
between farmers representation with market facilities shows negative except in toilet
facility it is positive correlation ie 0181
Table-326
Correlation between Defects in Regulated Markets with Facilities to Improve
Market Efficiency
Sl No
Defects in Regulated Markets
Facilities to Improve Market Efficiency
More Commodities to
Trade
Increase in Facilities
Role of Government
Reduction in Market Fees
1 No advance money
611 () 039 343 () 439 ()
2 Difficulty of storage
-118 043 139 () 019
3 Lack of transport facility
500 () 059 445 () 895 ()
4 Lack of Gradation facility
-0115 0410 135 () 117
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The defects in the regulated markets were ranked by the farmers on their
preferences were also attempted to correlate with the additional facilities to be
provided to improve the market efficiency The correlation was positively correlated
between no advance money and lack of transport facility with the more commodities
to be permitted to trade in the market yard with value 0611 and 0500 respectively
No negative correlation was found between any of variables between defects in
regulated markets with the farmers opinions to improve market efficiency ie
increase in facilities Reduction in the market fees and charges is the another way for
the APMC officials to improve the market efficiency the correlation result is positive
with the market defects ie highest positive correlation with lack of transport facility
66
with reduction in market fees (0895) followed by no advance money with reduction
in market fees (0439) and (0117) between lack of gradation and reduction in market
fees Government role was also positively correlated to over come from all the defects
prevailing in the regulated market in the direction to improve market efficiency (the
correlation result was ranged between 0135 to 0445) Few defects were highly
correlated and others defects were less correlated with role of government variable
67
Table-327
Pearson Correlations
Correlations 18a 18b 18c 18d 19a 19b 19c 19d 19e
Pearson Correlation 18a 1000 -354() 763() 735() 611() 039 343() 439() 469() 18b -354() 1000 044 131 -118 043 139() 019 072 18c 763() 044 1000 911() 500() 059 445() 895() 898() 18d 735() 131 911() 1000 987() (a) 987() 948() 947() 19a 611() -118 500() 987() 1000 419() -316() 355() 1000() 19b 039 043 059 (a) 419() 1000 -619() 048 (a) 19c 343() 139() 445() 987() -316() -619() 1000 336() 1000() 19d 439() 019 895() 948() 355() 048 336() 1000 1000() 19e 469() 072 898() 947() 1000() (a) 1000() 1000() 1000
Sig (2-tailed) 18a 000 000 000 000 546 000 000 000 18b 000 510 276 065 508 033 781 611 18c 000 510 000 000 377 000 000 000 18d 000 276 000 000 000 000 000 19a 000 065 000 000 000 000 000 000 19b 546 508 377 000 000 491 19c 000 033 000 000 000 000 000 000 19d 000 781 000 000 000 491 000 000 19e 000 611 000 000 000 000 000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
68
Infrastructure Facilities in the APMC Yard
Efficient marketing infrastructure such as wholesale retail and assembly
markets and storage facilities is essential for costndasheffective marketing to minimize
post harvest losses and to reduce health risks Markets play an important role in rural
development income generation food security developing rural market linkages and
gender issues Planners need to be aware of how to design markets that meet a
communityrsquos social and economic needs and how to choose a suitable site for a new
market In many cases sites are chosen that are inappropriate and result in under use
or even no use of the infrastructure constructed It is also not sufficient just to build a
market attention needs to be paid to how that market will be managed operated and
maintained In most cases where market improvements were only aimed at
infrastructure upgrading and did not guarantee maintenance and management most
failed within a few years The details of the availability of infrastructure and farmers
opinion is shown in the following tables
69
Table-328
Infrastructure Facilities in the APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
Available Not Available Available Not
Available Available Not Available Available Not
Available Available Not Available Available Not
available Total
Transport 32 18 35 12 36 13 39 13 42 10 184 (7360)
66 (2640)
250 (100)
Cold storage 02 48 02 45 01 48 03 49 06 46 14 (560)
236 (9440)
250 (100)
Storage 35 15 38 09 36 13 37 15 40 12 186 (7440)
64 (2560)
250 (100)
Processing 30 20 35 12 38 11 41 11 38 14 182 (7280)
68 (2720)
250 (100)
Grading 28 22 40 07 41 08 40 12 37 15 186 (7440)
64 (2560)
250 (100)
Weighment 45 05 42 05 41 08 45 07 44 08 217 (8680)
33 (1320)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
70
Table-329
Satisfaction of Infrastructure Facilities in APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
S NS T S NS T S NS T S NS T S NS T S NS T
Transport 30 20 50 31 16 49 35 14 42 34 18 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Cold storage 01 49 50 - 47 47 - 49 49 01 51 52 02 50 52 04 (160)
246 (9840)
250 (100)
Storage 32 18 50 29 18 47 27 22 49 33 19 52 38 14 52 159 (6360)
91 (3640)
250 (100)
Processing 25 25 50 28 19 47 31 18 49 38 14 52 35 17 52 157 (6280)
93 (3720)
250 (100)
Grading 22 28 50 35 12 47 36 13 49 37 15 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Weighment 41 09 50 36 11 47 40 09 49 42 10 52 42 10 52 201 (8040)
49 (1960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total S ndash Satisfied NS ndash Not Satisfied T ndash Total
71
Defects in Weighing
As a rule when produce enters the market every agricultural produce has to
be weighed in the presence of the licensed weighmen and the receipt for weighment
has to be given to the farmer But even this system has certain defects as follows
Meager number of weighmen
Time of weighment of the produce
Old weighment equipments
The details of weighing practices in the APMC yard and the farmer
respondents opinion is shown in the following table
Table-330
Causes of Defects in Weighing
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Absence of licenced weigh man
20 19 19 18 19 95 (3800)
2 Under weighting 25 22 24 26 25 122 (4880)
3 Favouring for buyer
05 03 02 03 03 16 (640)
4 Faulty weights 00 02 01 02 02 07 280)
5 Faulty weight machineries
00 02 03 03 02 10 (400)
6 Others 00 00 00 00 01 01 (040)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Farmer respondents were identified under weighing was followed by the
absence of licensed weigh men and faulty weigh machines
72
Table-331
Importance of Grading of Produce
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Easy marketing 18 (3600)
17 (3617)
19 (3877)
20 (3846)
21 (4038)
95 (3800)
2 Reduction of cost 05 (1000)
03 (638)
02 (408)
02 (384)
03 (576)
15 (600)
3 Higher prices 05 (1000)
02 (425)
08 (1632)
10 (1923)
07 (1346)
32 (128)
4 Encourage competition
20 (4000)
18 (3829)
15 (3061)
19 (3653)
20 (3846)
92 (3680)
5 Easy to get finance 02 (400)
07 (1489)
05 (1020)
01 (192)
01 (192)
16 (640)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Processing of Produce
In agriculture marketing process was not an important function The most of
the commodities were selling in their original form But in modern age with change
in the tastes and preferences of the people and with the introduction of new
technology like refrigerator milling and banking of food grains the consumers
demand for processed goods has increased So in the modern system of marketing the
processing has become a most important function of the marketing
By processing we mean the change of the form of the product before its
consumption The processing of the agricultural products is having the advantages
such as add the value in the product converts into edible form preservation for longer
period use of surplus food less cost of production wide extent of the market and
generation of employment The study about the opinion of farmer respondents
towards the importance of processing in agriculture marketing was conducted and the
result is shown in the below Table 332
73
Table-332
Importance of Processing of Produce
Sl No
Particulars Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Add the value 45 (9000)
43 (9149)
45 (9184)
47 (9038)
47 (9038)
227 (9080)
2 Preservation for longer period
38 (7600)
36 (7660)
37 (7551)
40 (7692)
39 (7500)
190 (760)
3 Less cost of production
10 (1000)
09 (1915)
09 (1837)
10 (1923)
10 (1923)
48 (1920)
4 Wide extent of the marketing
03 (600)
03 (638)
03 (612)
03 (576)
04 (769)
16 (640)
5 Use of surplus food 01 (200)
- 01 (204)
01 (192)
01 (192)
04 (160)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The Table 332 reveals that the importance of processing of agriculture
producing in marketing more than 90 percent of farmer respondents are fully agreed
that processing definitely going to add the value to the agriculture producing in
marketing At the same time 76 percent of sample group are favoured that processing
helps in preservation of agriculture produce for longer period and 1920 percent and
640 percent of farmer respondents are opined that processing of agriculture produce
is important for less cost of production and wide extent of the marketing respectively
Only a minor percent ie 160 supported the processing helps to use of surplus food
From the above analysis it can be said that processing not only helps to farmers but
also to buyer of agriculture produce in many ways
74
Satisfaction towards Insurance Facilities
Table-333
Level of Satisfaction of Insurance Facilities
Sl No Satisfaction Level Agriculture Insurance
Total Insured Non-Insured
1 Satisfied 238 (9917)
02 (083)
240 (9600)
2 Unsatisfied 10 (10000)
- 10 (400)
Total 248 (9920)
02 (080)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Finance Requirements
According to Pyle ldquoMoney or credit is the lubricant that facilitates the
marketing machinerdquo there can be obstacles in performing various activities in case
there are inadequate funds to meet the expenditure involved in these functions The
biggest need of finance is to purchase the stock of agriculture produce and to meet the
agriculture expenses for farmers In the agricultural marketing the finance is having
more importance because of the nature of agricultural marketing The production is
seasonal and there is rush in the market at the time of harvest Huge amount is
required to farmers to meet fertilizers and pesticides expenses and to buyer for the
purchase of stock to get it stored and for its processing So the finance is required to
be arranged either by the owned fund or by taking loan Though the rate of interest
adds in the price of the commodity and the persons who is making this expenditure
realizes it as the reward of the function performed by him The researcher has
undertaken the study of finance facilities at the APMC yard other sources of credit
other than banking the factors affects the requirements of finance by agricultural
marketing firm as well as farmers and the interest paid on the credit the results of the
farmers opinion was collected and shown in the Table 334 335 336 and 337
75
Table-334
Satisfaction of Banking Facilities at APMC
Sl No Level of Satisfaction Availability of Banking Facilities
Total Available Not Available
1 Satisfied - 15 (602)
15 (600)
2 Unsatisfied 01 (10000)
234 (9398)
235 (9400)
Total 01 (040)
249 (9960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total The Table 334 depicts the farmerrsquos responses towards the availability of
banking facilities in the APMC yard and their satisfaction towards such services in the
market yard In all the APMCs of Gulbarga division which covers five districts only
6 of the respondents were satisfied and rest of 940 percent of farmers respondents
were unsatisfied for the non-availability of banking facilities in the yard
Table-335
Other Sources of Credit Facilities
Sl No Particulars Districts Total Gulbarga Bidar Koppal Raichur Bellary 1 Whole seller 09
(1800) 08
(1702) 08
(1632) 10
(1923) 10
(1923) 45
(1800) 2 Retail seller 05
(1000) 04
(851) 05
(1020) 05
(961) 04
(769) 23
(920) 3 Commission agents 32
(6400) 31
(6595) 32
(6531) 34
(6538) 33
(6346) 162
(6480) 4 Broker 03
(600) 03
(638) 03
(612) 03
(576) 03
(576) 15
(600) 5 Others 01
(200) 01
(212) 01
(204) 00
(000) 02
(385) 05
(200) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total The researcher has also attempted to collect the opinion from the farmers
about the availability of other sources of credit facilities to the buyer of agriculture
produce and to farmers The other sources of credit to farmers other than bank
includes wholesaler retailer commission agents and brokers Majority of farmer
76
respondents ie 6480 percent of sample size said that commission agents are most
easy source of credit followed by whole seller ie 18 percent and retailer seller ie
920 and brokers only 6 percent
Ranking the Factors of Finance Requirements
As the financial requirements in the agricultural marketing can play a big role
as stimulation of agricultural production and to promote the interest of agricultural
community There are two types of finance requirements one fixed capital which is
required for the building furniture office instruments etc to carry on the business of
agricultural market Second requirement variable capital this is required to purchase
of stocks to make the payment of transportation labourers bills and refreshments
etc The researcher during his field study has attempted to point out and tried to rank
the main factors for finance requirements The data so collected is shown in the Table
336
Table-336
Ranking the factors of finance requirements
Sl No
Finance Requirements
Ranking Finance Requirements Total
First Second Third Fourth Fifth
1 Nature of crop 123 (4920)
50 (2000)
35 (1400)
23 (920)
19 (760)
250 (100)
2 Terms of payments 84 (3360)
16 (640)
31 (1240)
105 (4200)
14 (560)
250 (100)
3 Economic conditions 09 (360)
132 (5280)
63 (2520)
25 (1000)
21 (840)
250 (100)
4 Fluctuations of prices 15 (600)
26 (1040)
104 (4160)
47 (1880)
58 (2320)
250 (100)
5 Volume of crop 19 (760)
26 (1040)
17 (680)
50 (2000)
138 (5520)
250 (100)
Total 250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
77
The above Table 336 shows that the ranking of finance requirements by the
farmer respondents Out of 250 sample respondents 123 farmers respondents ranked
first the nature of crop which determines the quantum of finance requirements
followed by 5280 percent towards economic conditions as ranked second and
fluctuation of prices ie 41 percent as third and terms of payment as fourth position
followed by volume of crop as fifth
Interest Paid on Bank Credit
Table-337
Interest Paid on Bank Credit
Sl No Particulars Interest Paid on Bank Credit
Total Very low Very high Average
1 Gulbarga 30 (6000)
12 (2400)
08 (1600)
50 (2000)
2 Bidar 27 (5745)
11 (2340)
07 (1915)
47 (1800)
3 Koppal 29 (5918)
12 (2449)
07 (1428)
49 (1920)
4 Raichur 32 (6154)
12 (2307)
08 (1538)
52 (2080)
5 Bellary 32 (6154)
13 (2500)
10 (1923)
52 (2080)
Total 150 (6000)
60 (2400)
40 (1600)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Services of Commission Agents
Commission agents are the main marketing functionaries operating in the
APMC yard among the other market participants They provide the necessary link in
the marketing of agricultural produce to the farmers They supply the necessary data
and useful assistance in the marketing of agricultural produce of the farmers They
help farmers in availing the services like assembling storing grading and finance etc
Hence the farmers are provided with channel of distribution by the APMC by
78
licensing these intermediaries and regulating their services The farmer respondents
were approached for obtaining their views about the quality of services covering
defects with commission agents commission paid to commission agents and their
satisfaction with commission agents The following Tables ie 338 339 and 340
gives the results of the survey data
During the field work by the researcher investigated to identify the defects
with commission agents from the farmers The data so collected are compiled and
shown in the Table 338 The major defect with the commission agent was they are
more favourable to the buyer which constitutes 68 percent of sample size 20 percent
of farmers respondents were pointed out the misguide by the commission agent to
farmers at the time of sale is the second major defects followed by high commission 8
percent lack of knowledge 320 and other defects constitutes 080 percent More than
70 percent of farmer respondents are taken the help of commission agents in selling
their agricultural produce out of that 5960 percent of farmers only satisfied with
services given by commission agents The 74 farmer respondents which constitutes
2960 percent of total sample group neither obtaining any form assistance in
marketing their produce and nor satisfied with services given by them
Table-338
Satisfaction towards Commission Agents
Sl No Level of Satisfaction Service from Commission Agents
Total Yes No
1 Satisfied 104 (5910)
45 (6081)
149 (5960)
2 Unsatisfied 72 (4090)
29 (3919)
101 (4040)
Total 176 (7040)
74 (2960)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
79
Table-339
Defects with Commission Agents
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Favoruable
to buyer 34
(6800) 32
(6808) 33
(6735) 35
(6730) 36
(6923) 170
(6800) 2 High
commission 04
(800) 04
(851) 04
(816) 05
(962) 03
(576) 20
(800) 3 Misguide 10
(1000) 09
(1915) 10
(2041) 10
(1923) 11
(2115) 50
(2000) 4 Lack of
knowledge 02
(400) 02
(425) 02
(408) 02
(385) 00
(000) 08
(320) 5 Others 00
(000) 00
(000) 00
(000) 01
(192) 01
(192) 02
(080) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
Table-340
Commission Paid to Agents
Sl No Particulars Commission Paid to Agents
Total Very Low Very High Average
1 Gulbarga 06 (1200)
18 (3600)
26 (5200)
50 (2000)
2 Bidar 08 (1702)
17 (3617)
22 (4680)
47 (1800)
3 Koppal 06 (1224)
17 (3469)
25 (5102)
49 (1920)
4 Raichur 06 (1153)
19 (3654)
27 (5192)
52 (2080)
5 Bellary 04 (769)
19 (3654)
30 (5769)
52 (2080)
Total 30 (1200)
90 (3600)
130 (5200)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
The responses of the farmers regarding the charges of the commission by the
commission agents clearly indicates that the commission agents charges excess
80
amount well above prescribed rate this can be found from the dissatisfaction of
farmers ie 36 percent of sample size Changing more than the prescribed by the act
by the commission agent is one of the marketing malpractices prevalent in the APMC
In general strict vigilance over such marketing malpractice is needed to safeguard the
interest of the farmers It is unfortunate to learn that a very small number of ie 12
percent of the sample group farmers have complained against the high commission
charged by the commission agents At the same time 52 percent ie more than one
half of the total sample size positively favoured towards the commission charges by
the commission agents saying that commission paid is average neither to high or too
low
Table-341
Cost of Cooli to Hamals
Sl No Particulars
Cooli to Hamals Total
Very High Very Low Average 1 Gulbarga 07
(200) 09
(1800) 40
(8000) 50
(2000) 2 Bidar 02
(425) 08
(1702) 37
(7872) 47
(1800) 3 Koppal 02
(408) 08
(1633) 39
(7959) 49
(1920) 4 Raichur 02
(385) 09
(1730) 41
(7885) 52
(2080) 5 Bellary 01
(192) 09
(1730) 42
(8076) 52
(2080) Total 08
(320) 43
(1720) 199
(7960) 250
(10000) Source Field survey Note Figures in bracket indicates percentage to total Table 341 depicts the cost of cooli paid to hamal in the market yard Hamals
are working in the APMC for loading and unloading of agriculture produce Farmer
respondents were satisfied with the cost of cooli to hamal it constitute 7960 percent
of total sample size only 320 percent of total told that hamals are charged high cooli
and 1720 percent of them totally satisfied with the charges paid to hamals Table 341
gives the level of satisfaction towards the services given by hamals Large number of
farmers are partly satisfied which constitute 6080 percent 376 percent fully satisfied
81
and 240 percent not at satisfied It is suggestible to the APMC to take measures to
control the hamals and their services to farmers
Level of Satisfaction with Hamals Services
Table-342
Level of Satisfaction with Hamals Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (3800)
30 (6000)
01 (200)
50 (2000)
2 Bidar 17 (3617)
29 (6170)
01 (213)
47 (1800)
3 Koppal 18 (3673)
28 (5714)
03 (612)
49 (1920)
4 Raichur 19 (3654)
32 (6153)
01 (192)
52 (2080)
5 Bellary 21 (4038)
33 (5962)
00 (000)
52 (2080)
Total 94 (376)
150 (6080)
06 (240)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Cooperation from APMC Officials
Along with the services from different market functionaries to farmers
cooperation from the APMC officials is also very important to farmers to boost their
psychological factors to bring their agricultural produce to APMC yard for sale A
good cooperation definitely creates belongingness in the minds of farmers The data
was collected through questionnaire about the level of satisfaction with the
cooperation from APMC officials and defects with them The information gathered is
shown in Table 343 and 344
82
Table-343
Level of Satisfaction with APMC Officials Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (2021)
08 (2105)
23 (1949)
50 (2000)
2 Bidar 17 (1809)
06 (1579)
24 (2033)
47 (1880)
3 Koppal 16 (2021)
05 (1315)
28 (2373)
49 (1960)
4 Raichur 20 (2127)
10 (2632)
22 (1864)
52 (2080)
5 Bellary 22 (2340)
09 (2368)
21 (1780)
52 (2080)
Total 94 (3760)
38 (1520)
118 (4720)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-344
Defects with APMC Officials
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Non-
cooperative 36
(200) 40
(2222) 40
(2222) 45
(250) 19
(1055) 180
(7200) 2 Favourable to
buyer 42
(1953) 43
(2000) 32
(1488) 41
(1907) 57
(2651) 215
(8600) 3 Laziness 18
(200) 17
(1888) 15
(1667) 20
(2222) 20
(2222) 90
(3600) 4 Expect money 08
(200) 06
(150) 05
(1250) 09
(2250) 12
(300) 40
(1600) 5 Improper
market data 14
(200) 13
(1857) 12
(1714) 14
(200) 17
(2429) 70
(2800) 6 Others - - 03
(300) 04
(400) 03
(300) 10
(400) Total 50
(2000) 47
(1880) 49
(1960) 52
(2080) 52
(2080) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
83
Malpractice Experience at APMC Yard
The major malpractices faced by the farmer respondents in the selected
APMCs while selling their agricultural produce in the study area is presented in the
Table 345
Table-345
Farmers Malpractice Experience at APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Inadequate grading
38 40 39 32 46 195
2 Inadequate packing
32 28 17 31 46 137
3 Unfavourable weightment
44 43 41 47 46 221
4 Excess samples 18 15 20 14 15 82
5 Inadequate supervision
21 23 28 22 25 119
6 Excess market charges
36 32 38 28 36 170
7 More favourable to buyer
41 42 43 48 49 223
8 Others 05 14 13 09 17 56
Total 50 (200)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The highest percentage of farmer respondents (221) are of the opinion that
unfavourable weighment in the sale is the major malpractice experienced by them
The second highest percentage of farmer respondents who are of the opinion that in
adequate grading by the buyer while selling their produce The third major
malpractice being taking excess market charges by commission agents as arbitrary
deduction in the sale amount of produce The next major malpractice (137) opined by
farmer respondents is regarding inadequate packaging to sale produce The other most
84
dominating and prevailing malpractice was found by the researcher is more
favourable to the buyer and improper weighment of their produce (223) in the market
yard For of respondents specified other malpractices as high wastages and non
payment of amount etc Inspite of all these malpractices affecting of the farmers it is
quite essential for all the APMCs in the study area should take some connective
measures to eliminate such malpractice Since the main purpose of the APMCs is to
regulate all marketing activities In the field study the steps taken by the APMC to
eliminate malpractice as expressed their views by the farmer respondents were
recorded very few percent of farmer respondents are of the opinion that APMC is
excising supervision over the malpractice regarding to selling and pricing the
commodity They also satisfied with the intervention of APMC officials to eliminate
malpractices in weighment grading activities but the farmer respondents were not at
satisfied with the APMC for not taking any steps to eliminate malpractices in payment
of sale price by the buyer to farmers
Disputes in APMC
So many disputes can arise among the farmers traders and middlemen over
the quality the grade the deductions and payment settlement etc The market
committees settles such disputes so the farmers as well as middlemen may not waste
their time and marketing in the court
During the field study the researcher has investigated to find out the opinion
of the farmers for main causes of disputes in the APMC yard The compiled
information is presented in the following Table 346
85
Table-346
Causes for Disputes in APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Price of produce
23 (2054)
20 (1786)
21 (1875)
24 (2143)
24 (2143)
112 (4480)
2 Quality of produce
10 (1786)
08 (1429)
05 (892)
11 (1964)
22 (3928)
56 (2240)
3 Weightment 30 (1974)
31 (2039)
32 (2105)
28 (1842)
31 (2039
52 (6080)
4 Timing of payment
37 (1989)
38 (2043)
40 (2150)
32 (1720)
39 (2096)
186 (7440)
5 Grading of produce
08 (1509)
10 (1887)
07 (1320)
11 (2075)
17 (3207)
53 (2120)
6 Warehousing 05 (1250)
08 (200)
07 (1750)
06 (1500)
14 (350)
40 (1600)
7 Others 18 (200)
15 (1667)
24 (2667)
25 (2777)
08 (888)
90 (3600)
Total 50 (2000)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Majority of respondents have disputes with commission agents as well as the
traders and few of them have disputes with hamals From the Table 346 it could be
seen that one of the major reasons for dispute being untimely payment (Delay in
payment) to farmer ie seller of agricultural produce Nearly more than half of the
respondents (7440) have opined that they are not being paid as per the provisions of
Act ie immediately after the sale of produce The next major causes of dispute being
weighment of produce Marketing three fifth of the respondents are not happy with
the weighment system prevailing in the market The third major causes of disputes is
being price of the produce About one third of the respondents (4480) have opined as
determination of the price of produce is also one of the major factor for the disputes
The other reasons of the disputes in the APMC yard in the Gulbarga division was
86
found are regarding quality of produce (2240) warehousing (1600) as determined by
farmers Very few of respondents feel that there is no reasons for disputes in the
APMC yards
As far as settlement of disputes are concerned farmer respondents are
preferred for settlement of disputes with traders at the level of secretary of the APMC
A part from that they also some time preferred to solve disputes through the dispute
committee where disputes are settled by arbitration Only 5 percent of the farmer
respondents from the sample size are of the opinion that disputes are settled by the
court of law In Gulbarga division of APMC maximum disputes were settled at
secretary level it calls for efficient secretaries in APMCs
Farmers respondents were also asked about the level of satisfaction in
settlement of disputes Nearly more than 40 percent of respondents are satisfied with
settlement of disputes However 30 percent of respondents are not fully satisfied with
settlement of disputes rest of the sample group were not given any response in this
regard
Quality of Services in APMC Yard
The sale of the agricultural produces by the farmers in the APMC yard
depends on the various services and their quality provided by the APMCs to the
farmers It is the true that if the services provided by APMCs to farmers are very
good large number of farmers bring their produce to the APMC market for sale
instead of open markets This definitely attracts more number of traders and market
functionaries to the market This results an impetus in getting not only good price for
their produce but also a competitive cost to the traders The farmer respondents were
asked to assess the quality of market services provided by the APMCs the responses
of respondents who expressed their level of satisfaction and dissatisfaction to different
facilities provided is presented in the following table
87
Table-347
Quality of Services at APMC
Quality of Services Name of APMC
Total Gulbarga Bidar Koppal Raichur Bellary
Very good 04 (200)
04 (200)
04 (200)
03 (150)
05 (250)
20 (80)
Good 41 (2930)
38 (1881)
40 (1980)
42 (2079)
41 (2029)
202 (808)
Bad 02 (250)
01 (1250)
01 (1250)
02 (250)
02 (250)
08 (320)
Very bad 01 (200)
01 (200)
02 (200)
01 (200)
-
05 (20)
Either bad good 02 (1333)
03 (200)
02 (1333)
04 (2667)
04 (2667)
15 (600)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total It could be observed from the above Table 347 that 8080 percent of farmer
respondents are of the opinion that the quantity of services provided by the APMC is
good 320 percent of total sample size of farmer respondents are if the opinion that it
is bad and 80 percent of the respondents are of the opinion that it is very good It is
to say satisfy that 8880 percent of farmer respondents are of the opinion that the
service provided by APMC is good and above average Hardly 520 percent of the
respondents expressed that the service provided are bad or very bad and 60 percent of
them neither opinioned bad nor good ie they were neutral
88
Table-348
Customary Deduction
Name of the APMCs As per Bye Laws More than Bye Laws Total
Gulbarga 05 (100)
45 (900)
50 (200)
Bidar 04 (851)
43 (9149)
47 (188)
Koppal 05 (1020)
44 (8980)
49 (1960)
Raichur 05 (961)
47 (9039)
52 (2080)
Bellary 07 (1346)
45 (8654)
52 (2080)
Total 26 (1040)
224 (8960)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
The study was conducted to know the farmers responses towards the
customary deductions from the sale of agricultural produce Sample groups were
given option whether customary deductions were as per bye laws or more than bye
laws Large number of farmer ie more than 89 of sample size were strongly
opinioned that customary deductions were not according
89
CHAPTER-IV PERFORMANCE EVALUATION OF APMCs
All the regulated markets working in Karnataka are distinct organization
created under the special clause with the objective of bringing the socio-economic
changes not only in the agricultural marketing sector but also economy as a whole
The existence of regulated markets creates an environment that is more favourable to
the existence of competitive conditions and to bring about the harmonious relations
between the farmers and market functionaries These organizations have the special
features as compared with the other organizations so the service of funds of regulated
markets and uses of the regulated market would be different keeping this the
following para attempted to analyze their financial performance in terms of their
profit position and growth in profit income position expenditure position and other
relevant financial aspects
A) Sources of Income of Regulated Markets
As far as regulated market are concerned they are non-profit or non-trading
organizations established with the objective of providing marketing services facilities
and other amenities for the producer of agricultural products who is in need of these
services for the facilitation of the sale of their produce To ensure smooth and
efficient services to farmer seller APMCs are required to own their establishments
and staff such as commission agent trader hamal and others who are carrying out
various markets functions ie grading processing weighment etc Hence APMCs
need finance to meet their administrative and management expenses of a recurring
and non-recurring nature of expenses The basic infrastructures are needed in the
provision of amenities and other facilities requiring capital investment for creating
these facilities in the market yard Establishment of infrastructure facilities not only
enough but also they need to be maintained the SC maintenance expenses is of
recurring in nature APMCs also need to have the permanent staff to do all the
functions in the market yard involves the fixed expenditure in the form of salaries
wages etc This necessitates the APMCs to have the permanent and regular sources of
income to meet all these regular expenses of fixed in nature and some portion of
recurring expenditure
90
APMCs are also required to meet the recurring expenditure such as
maintenance of road expenditure building godowns market yard vehicles and
machinery After the initial investment in these facilities from the borrowed capital
APMCs need to make payment of interest on loans tax charges payment of salaries
printing and stationery etc are to be paid periodically The different sources of
incomes through which the APMCs are earning revenue are shown in the following
parts along with the various expenditures by the APMC in the market yard
I) Market Fees
The APMCs Act and other laws relating to the agricultural marketing has
authorized all the regulated markets to levy and collect the market fees on the
agricultural produce bought for sales in the market yard The collection of the market
fees is the major source of income to the market committee and also the major source
of finance which determines to a very great extent the pace of development of market
yards both in terms of facilities and infrastructure
In traditional agricultural marketing market fees were collected on the basis of
the quantity bought for sale but these days the Acts and rules have been amended
more suitably giving maximum power to market committee to collect market fees on
the advalorem basis The chief items of the marketing charges are the market fee that
should be paid to the market committee the weighment fee commission brokerage
hamali charges and grading charges etc
In Karnataka in the beginning the market fees imposed on the buyers at the
rate not exceeding 30 paise per Rs100- of produce bought The APMC Act was
amended in 1973 August by an ordinance and the market fee to be levied was raised
to one rupees and the ordinance was however replaced by an act The rate of market
fees on every arrivals of cattle is Rs5- for each animal and rupee one for every sheep
and goats
The act also given some provisions for cooperative society doing business
within the market yard market fees shall be imposed and collected at the rate of 80
paisa per Rs100- of produce bought whereas in case of any other traders it is at the
91
rate of one percent on their total purchases ie one rupees per 1000 rupees This may
be considered as the cause for slow growth of agricultural marketing in Karnataka in
general and Gulbarga division in particular
II) License Fees
The various market functionaries who are operating in the regulated markets
of the state are the commission agents trader broker store keeper grader stockiest
importer exporter and any other functionary are imposed licence fee by the market
committee The license fee is the second main source of income to regulated market
This fee is collected in lum-sum as specified in the APMC act annually from each
applicant The total sum of income from license fees depends on the number of
market functionaries and the rate of license fee for various categories of market
functionaries
APMCs are authorized by KAPM (I) Act 1966 to impose and collect the
license fees from each category of market functionaries The maximum license fee
that could be levied under the act by the market committee on different types of
functionaries are Rs200 from traders and commission agents Rs100- each from
broker processor exporter importer ginner and crusher Rs25- from retail trader
and a nominal amount of Rupees 5 from hamal or cart man
III) Penalty
Penalties for evasion of payment of fee are imposed by the market
committees Section 65 (A) or KAPM Act 1966 empowers the regulated market
committee to punish with fine of not less than 12 percent But this penalty should not
exceed 30 percent on the amount of market fee If the penalty is not paid within the
specified time under bye laws made under section 65 of the act in it desecration also
recover similarly and pay over to the market committee or the board such amount
IV) Other Income Sources
APMCs collect market fees license fees and penalty from defaulters the
market committees are also generating the incomes from the following sources
a) Income from own properties
b) Income from deposits
92
c) Sale of books and forms
d) Sale of grass and cow dung
e) Fire fighter rent
f) Transfer fees and registration fees
g) Sale of plots etc
1) Income Position of Selected Regulated Markets
The income information of 15 APMCs ie three APMCs from each districts
in Gulbarga division were collected by the researcher from their annual reports and
other financial statements The component of the various income sources and their
respective figures provide a good insight to their financial performance The trends in
the growth of total incomes and individual incomes over a five year study period ie
2009-10 to 2013-14 helps in understanding the performance of all the selected
APMCs
I) Income Position of Gulbarga APMC
The income position of selected APMCs in Gulbarga district over the five
years study period are shown in the Table 41 below
Table 41 reveals a steady growth in income to the Gulbarga APMC in all the
years of study Conspicuously the total income from all sources to APMC was
Rs21976lakhs in 2009-10 while it was increased to 87054 lakhs in 2013-14 with a
annual aggregate growth of 5922 percent over the previous years When we look at
the figures of market fees holds the lions share in contributing income which range
between 8605percent to 9294 percent The same fact was also found in the APMC
Shorapur and APMC Shahapur In APMC Shorapur the percentage of market fees in
total income was in between 8420 percent to 9745 percent In case of Shahapur
APMC it ranges between lowest 6422 percent to highest of 6610 percent The other
major sources from where the APMC generated income were license fees levy and
licence fee penalty and other incomes generated was in total percentage fall between
906 percentage to 1995 percent in Gulbarga APMC In Shahapur and Shorapur
APMC penalty income was negligible it was Rs 031 lakhs to Rs 891 lakhs in
Shorapur APMC and Rs 126 lakhs to Rs 563 lakhs in Shahapur APMC during the
period under study
93
Table-41
Statement of Income of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 25106
(8605) 27111 (8763)
39233 (9155)
68713 (9294)
79170 (9094)
2 License Fees 321 (110)
487 (157)
561 (130)
664 (089)
733 (084)
3 Levy and License Fee 2069 (709)
1822 (58)
1981 (462)
2055 (277)
2382 (273)
4 Penalty 1180 (404)
642 (207)
519 (121)
625 (084)
1177 (135)
5 Interest on Deposits and other Income
500 (172)
574 (293)
558 (132)
1575 (256)
3592 (414)
Total 21976 (100)
30936 (100)
42852 (100)
73932 (100)
87054 (100)
Sl No APMC Shorapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 6012
(9039) 5647
(9281) 9607
(9745) 11365 (9079)
18674 (8420)
2 License Fees 104 (156)
106 (174)
078 (079)
117 (093)
117 (052)
3 Levy and License Fee 128 (192)
120 (197)
054 (054)
338 (270)
486 (219)
4 Penalty 200 (300)
101 (166)
031 (031)
206 (164)
891 (401)
5 Interest on Deposits and other Income
207 (313)
110 (182)
088 (011)
491 (394)
2008 (908)
Total 6651 (100)
6084 (100)
9858 (100)
12517 (100)
22176 (100)
Sl No APMC Shahapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1436
(8422) 1563
(7854) 1722
(7163) 3888
(7793) 5812
(6610) 2 License Fees 080
(469) 114
(572) 219
(910) 250
(501) 679
(772) 3 Levy and License Fee 034
(199) 042
(211) 0158 (657)
269 (539)
1071 (1218)
4 Penalty 126 (739)
183 (919)
196 (815)
204 (408)
563 (640)
5 Interest on Deposits and other Income
029 (171)
088 (444)
109 (455)
378 (759)
667 (76)
Total 1705 (100)
1990 (100)
2404 (100)
4989 (100)
8792 (100)
Source Annual reports of APMC Gulbarga 2009-10 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
94
It can be concluded from the above three APMCs in Gulbarga district that
Gulbarga APMC leading first in generating income Shorapur APMC is in second
position followed by APMC Shahapur
II) Income Position of Bidar APMC
Three APMCs from the Bidar district were selected for the comparative study
The income level of these three APMCs for the five years research period is presented
in the Table 42
The income generated by the APMC Bidar was lower in the beginning years
of research period ie it was Rs 18275lakhs in 2009-10 Rs16443 lakhs in 2010-11
and Rs17575 lakhs in 2011-12 During end years of research period it increased to
Rs31805 lakhs in 2012-13 and Rs 30420 lakhs in 2013-14 A critical look of the
figures in all the years of selected APMCs in Bidar district indicates that market fees
was the major component of total income of APMC which comprises an approximate
of 7910 percent in lowest side and 9554 percent in highest side Lowest market
fees percentage was recorded in APMC Aurad during 2012-13 and the highest
percentage was registered in 2013-14 in AMPC Bidar
95
Table-42
Statement of Income of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 16744
(9162) 15043 (9148)
15593 (8870)
29256 (9198)
29065 (9554)
2 License Fees 486 (265)
363 (220)
436 (248)
688 (216)
577 (1089)
3 Levy and License Fee 320 (175)
239 (145)
334 (190)
477 (149)
338 (111)
4 Penalty 600 (328)
466 (283)
515 (293)
719 (226)
202 (066)
5 Interest on Deposits and other Income
125 (070)
332 (204)
697 (397)
665 (211)
238 (08)
Total 18275 (100)
16443 (100)
17575 (100)
31805 (100)
30420 (100)
Sl No APMC Bhalki 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1424
(8431) 1232
(8999) 2423
(8846) 3596
(8304) 5871
(8544) 2 License Fees 096
(568) 081
(591) 163
(595) 293
(676) 306
(445) 3 Levy and License Fee 123
(728) 021
(153) 043
(156) 189
(436) 214
(311) 4 Penalty 022
(130) 017
(124) 034
(124) 138
(318) 222
(323) 5 Interest on Deposits and other
Income 024
(143) 018
(133) 076
(279) 114
(266) 258
(377)
Total 1689 (100)
1369 (100)
2739 (100)
4330 (100)
6871 (100)
Sl No APMC Aurad 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 903
(8014) 886
(8478) 887
(8431) 1333
(7910) 1617
(7922) 2 License Fees 093
(825) 081
(775) 083
(788) 123
(729) 132
(646) 3 Levy and License Fee 055
(488) 054
(516) 052
(494) 118
(700) 181
(886) 4 Penalty 006
(053) 004
(038) 012
(114) 051
(302) 050
(241) 5 Interest on Deposits and other
Income 069
(615) 020
(193) 018
(173) 060
(359) 061
(302)
Total 1126 (100)
1045 (100)
1052 (100)
1685 (100)
2041 (100)
Sources Annual reports of APMCs Bidar for 2003- 04 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
96
The other major sources contributing to the income of the APMCs in Bidar
district were license fee which was 646 percent to 625 percent in Aurad APMC
445 percent to 676 percent in APMC Bhalki and 216 percent to 1089 percent in
Bidar district APMCs The total income of Bhalki APMC was not constantly
increased during the study period It was fell to Rs 1369 lakhs in 2010-11 but it
increased during last three years of research period reached to Rs 6871 lakhs in
2013-14 As far as APMC Aurad is concerned it was inceased only in 2012-13 and
2013-14 As far as APMC Aurad is concerned it was increased only in 2012-13 and
2013-14 It was fall in 2010-11 and 2011-12 ie Rs 1045 lakhs and Rs 1052 lakhs
respectively It can be seen in table 42
III) Income Position of Koppal APMC
The statement of income of selected APMCs in Koppal district for the five
years ie 2009-10 to 2013-14 are given in table 43 The income of Koppal APMC
Gangavati APMC and Kustagi APMC were collected and analyzed in the following
paragraphs
The income generation in each of the five years by the APMCs selected as
sample in Koppal district was in APMC Koppal it was between Rs 3709 lakhs in
2009-10 to Rs 11032 lakhs in 2013-14 In APMC Gangavati a recorded
performance was found in earning incomes ie Rs 51692 lakhs in 2009-10 increased
rapidly to Rs91123 lakhs in 2013-14 APMC Kustagi was found to be least
performance in generation of the income The highest income was colleted by it was
Rs 3346 lakhs in 2013-14 and lowest was found in 2009-10 ie Rs 1341 The
annual aggregate growth in income generation by Koppal APMC was 3948 percent
per year The overall growth in APMC Gangavati income was 7628 percent over the
beginning year of research period The overall growth of percentage in the income of
APMC Kustagi during the five years study period was 14952 percent
97
Table-43
Statement of Income of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3269
(8813) 4072
(6961) 5675
(9119) 5682
(8775) 10021 (9083)
2 License Fees 090 (242)
110 (188)
101 (162)
097 (149)
106 (096)
3 Levy and License Fee 062 (167)
193 (329)
133 (213)
187 (288)
207 (187)
4 Penalty 104 (280)
211 (360)
146 (234)
178 (271)
255 (231)
5 Interest on Deposits and other Income
184 (498)
1263 (2162)
168 (272)
331 (517)
443 (403)
Total 3709 (100)
5849 (100)
6223 (100)
6475 (100)
11032 (100)
Sl No APMC Gangavati 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 49044
(9487) 67016 (9724)
75834 (9692)
74674 (9363)
84042 (9223)
2 License Fees 236 (045)
287 (042)
311 (039)
303 (038)
569 (062)
3 Levy and License Fee 703 (135)
515 (074)
807 (103)
716 (089)
1038 (114)
4 Penalty 189 (036)
212 (030)
267 (034)
258 (032)
317 (034)
5 Interest on Deposits and other Income
1520 (297)
887 (130)
1020 (142)
3804 (478)
5157 (567)
Total 51692 (100)
68917 (100)
78239 (100)
79755 (100)
91123 (100)
Sl No APMC Kustagi 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1214
(9052) 1234
(9167) 1384
(8216) 2079
(8266) 2516
(7519) 2 License Fees 024
(178) 029
(215) 031
(184) 036
(143) 041
(122) 3 Levy and License Fee 014
(104) 016
(118) 026
(154) 055
(218) 063
(188) 4 Penalty 001
(007) 001
(007) 003
(017) 007
(027) 018
(054) 5 Interest on Deposits and other
Income 088
(659) 066
(493) 240
(1429) 338
(1346) 708
(2117)
Total 1341 (100)
1346 (100)
1684 (100)
2515 (100)
3346 (100)
Sources Annual reports of APMCs Koppal for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
98
The glance at the each income figures with respect to three APMC in Koppal
district reveals that market fees again dominant ie 6961 percent to 9724 percent to
total income of the APMC Other important heads from which the income was
derived were license fee 096 to 242 in Koppal APMC 038 to 062 in
APMC Gangavati and 122 to 215 in APMC Kustagi during the period under
consideration ie 2009-10 to 2013-14 The penalty fees collected by the APMC
Kustagi and APMC Gangavati were almost below one percent to total income and this
was above 2 percent in APMC Koppal A sizeable income ie 498 percent to 2117
percent has also been contributed under the head interest on deposits and other
income The trend in this income was more or less similar during all the years of
research period
IV) Income Position of Raichur APMC
The income position and growth in income position of selected APMCs in
Raichur district was presented in the Table 44 The income was shown for the study
period ie 2009-10 to 2013-14 Riachur is considered to be a commercial street the
volume of business is high as compared to the Lingasugur Sindnoor APMC has
acquired a good position in the Raichur district as compared to other APMC in the
district
Table 44 gives the various incomes acquired by the selected APMC in the
Raichur district Raichur as a commercial centre there would be large number of
market functionaries and large volume of transactions Hence the total income of the
market was obviously quite high (around Rs120202 lakhs annually) During 2009-10
the total income of APMC Raichur was Rs 48932 lakhs APMC Sindnoor was Rs
20629 lakhs and APMC Lingasugur was just Rs 2907 lakhs It was shown an
increasing trend in all the three APMC selected in Raichur district during all the five
years of research period Income was found in the year 2013-14 in the sample APMC
from Raichur district Income from the other sources ie penalty interest on deposits
sale of shops godowns and sale of books and forms were much higher as compared to
the corresponding incomes in the other years of study Such an increase in the total
income was noticed in the Table 44
99
Table-44
Statement of Income of Selected APMCs in Raichur District
(Rs In lakhs)
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 45972
(9395) 55687 (9542)
68293 (9491)
82847 (8275)
106917 (8894)
2 License Fees 314 (064)
326 (056)
335 (046)
336 (033)
347 (028)
3 Levy and License Fee 1218 (248)
1463 (250)
1525 (211)
1540 (153)
1617 (134)
4 Penalty 218 (044)
250 (040)
269 (037)
289 (028)
313 (026)
5 Interest on Deposits and other Income
1210 (249)
630 (110)
1528 (215)
15105 (1511)
11008 (918)
Total 48932 (100)
58356 (100)
71950 (100)
100117 (100)
120202 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 18106
(8776) 21418 (9410)
28650 (9523)
33937 (7914)
45905 (9281)
2 License Fees 212 (102)
209 (091)
238 (079)
226 (052)
258 (052)
3 Levy and License Fee 1029 (498)
658 (1289)
613 (203)
1569 (365)
1292 (261)
4 Penalty 819 (396)
309 (135)
386 (128)
2080 (485)
1108 (224)
5 Interest on Deposits and other Income
464 (228)
166 (075)
197 (067)
5069 (1184)
892 (182)
Total 20629 (100)
22760 (100)
30084 (100)
42881 (100)
49456 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 2016
(6934) 2361
(6367) 3457
(5687) 3702
(5632) 4221
(5582) 2 License Fees 084
(288) 161
(434) 219
(360) 379
(576) 397
(521) 3 Levy and License Fee 493
(1695) 552
(1488) 817
(1344) 871
(1325) 1017
(1344) 4 Penalty 032
(110) 064
(172) 186
(306) 213
(324) 286
(378) 5 Interest on Deposits and
other Income 282
(973) 570
(1539) 1399
(2303) 1408
(2143) 1641
(2172)
Total 2907 (100)
3708 (100)
6078 (100)
6573 (100)
7562 (100)
Sources Annual reports of APMCs Raichur for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
100
In order to see the composition of the total revenue of Raichur Sindnoor and
Lingasugur APMCs the income statement of 2009-10 to 2013-14 was considered A
detailed analysis at the figures in the table 44 indicates that a market fee was the
major contributor to the total income which contributed to the tune of 5582 percent
to 9542 percent The other major sources of revenue to the APMC are interest on
deposits (182 to 2172) Penalty income was contributed average in APMC
Sindnoor moderate in APMC Raichur and minor contribution in APMC Lingasugur
V) Income Position of Bellary APMC
In Bellary district development activities undertaken by the department of
agriculture are about increasing yield of kharif season and other seasons under
irrigation this has naturally increased the market turnover in the Bellary district
APMC The details of the income collected by the sample APMCs in Bellary district
is shown in the Table 45
Table 45 gives the details of an account of income of the APMCs selected
from the Bellary district for the analysis purpose A birdsrsquo eye view of the total
income figures during financial years indicate that the annual average income of the
APMC of Bellary was around Rs 33660 lakhs except during the first three years of
the study period The market fees collected during the study years was also ranged in
between the 8165 in 2009-10 to 8942 in 2013-14 Levy and license fees were
contributed to the extent of 306 to 806 to total income and penalty amount was
just only to 075 to 462 to total incomes
101
Table-45
Statement of Income of Selected APMCs in Bellary District
(Rs In lakhs)
Sl No APMC Bellary 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 13400
(8165) 19398 (8680)
24037 (8514)
35774 (8865)
54510 (8942)
2 License Fees 316 (192)
343 (153)
0392 (139)
399 (098)
346 (056)
3 Levy and License Fee 1323 (806)
1529 (684)
2001 (708)
1912 (473)
1870 (306)
4 Penalty 320 (194)
370 (165)
462 (163)
451 (111)
458 (075)
5 Interest on Deposits and other Income
1052 (643)
706 (318)
1338 (476)
1816 (453)
3775 (621)
Total 16411 (100)
22346 (100)
28230 (100)
40352 (100)
60959 (100)
Sl No APMC Hospet 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3458
(8051) 4335
(7629) 5075
(7924) 5561
(8158) 6811
(7884) 2 License Fees 089
(207) 086
(151) 097
(151) 108
(158) 132
(152) 3 Levy and License Fee 407
(948) 592
(1041) 636
(993) 663
(972) 892
(1032) 4 Penalty 041
(095) 166
(292) 215
(335) 217
(318) 289
(334) 5 Interest on Deposits and
other Income 300
(699) 503
(887) 381
(597) 267 (39)
515 (598)
Total 4295 (100)
5682 (100)
6404 (100)
6816 (100)
8639 (100)
Sl No APMC Siraguppa 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 9054
(9160) 11330 (9131)
25909 (9352)
31838 (9237)
45500 (8285)
2 License Fees 068 (068)
071 (057)
107 (038)
108 (031)
105 (019)
3 Levy and License Fee 363 (367)
341 (274)
491 (177)
492 (142)
535 (097)
4 Penalty 019 (019)
047 (037)
054 (019)
089 (026)
096 (017)
5 Interest on Deposits and other Income
381 (386)
619 (501)
1143 (414)
1939 (564)
8676 (1582)
Total 9885 (100)
12408 (100)
27704 (100)
34468 (100)
54912 (100)
Sources Annual reports of APMCs Bellary for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
102
As far as APMC Hospet and APMC Siraguppa are considered the market fees
collected by these APMCs were became major sources of income followed by levy
and license fees and penalty It is noticed from the same table that APMC Siraguppa
has made history in generation of income during 2012-13 and 2013-14 ie it earned
Rs 34468 lakhs and 54912 lakhs incomes respectively Almost the income was
jumped five times to beginning year income ie 9885 lakhs This clearly carries the
message that APMC Siraguppa was not performed consistency in financial
performance APMC Hospet has ensured stability in the performance but in terms of
amount of collection it was positioned third place in selected APMC in Bellary
district
B) Uses of Incomes by APMCs
1) Market Committee Fund
Incomes received by the market committees in the form of market fees
licence fees and other fees or incomes by way of penalty are used as per the Section
90 of KAPM (R) Act of 1966 All expenditure incurred by the committee under or for
the purposes of this Act shall be defrayed out of the market fund and any surplus
remaining at the close of each market year after such expenditure has been met shall
be credited to the permanent fund of the committee within the three months of the
close of the year and it shall be used only towards incurring the expenditure of
permanent nature such as construction of buildings acquisition of lands or such other
purposes as the Director of Agricultural Marketing may specify
After meeting all such expenditure excess shall be invested in state
cooperative Apex bank or other cooperative banks or government savings banks
account The KAPM (R) Act 1961 clearly defined the purposes for which the market
committee fund may be expanded beyond the above mentioned The fund so created
should be allowed to uses for the purpose laid down in this Act ie providing
facilities in the market areas payment of allowances arrangement of amenities such
as grading and standardization collection and dissemination of market information
settlement of disputes payment of interest on borrowed loans etc
103
II) Contribution to Consolidated Fund
All the marketing committees are bound to contribute some amount to
Karnataka State Agriculture Marketing Board The Director of Agricultural Marketing
estimates the approximate expenditure likely to be incurred by the state government
during a particular financial year an account of salary and other allowances and
election of the members of the market committees Taking all these estimated
expenditures under section 91 of the KAPM Act the Director of Agricultural
Marketing shall by order determine the percentage of gross receipts that every
market committee must and should contribute to the state consolidated fund of the
state
III) Contribution to KSAM Board
Agriculture section 92 of the Karnataka produce marketing Act has made a
provision to create ldquoMarketing Development Fundrdquo and it is managing by the KSAM
board Every market committee is required to contribute every month to the board 5
percent of the gross receipts during the previous calendar month
IV) Other Expenditures
A part from the contribution to market committee fund contribution to state
consolidated fund and contribution to KSAM Board market committees are also
necessary to meet the other expenses regularly such as administration expenses which
includes salary to staffs printing and stationary legal fee advertisement rent
electricity bill and maintenance charges Expenditure to provide amenities to market
functionaries and farmers and other miscellaneous
Expenditure Position of Selected APMCs in Gulbarga District
In this part an effort is made to analyze data relating to the total expenditures
incurred and components of expenditures with respective figures to get the depth of
knowledge about the trends in growth of expenditures over a period of 5 years
between 2009-10 to 2013-14
104
Table-46
Trends in Growth of Expenditure of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga
Years 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 I Contribution to state
consolidated fund 15732 (7016)
13575 (6562)
18231 (7200)
33150 (7215)
35676 (7225)
II Contribution to KSAM board
1933 (862)
1484 (750)
2216 (875)
4024 (876)
4197 (850)
III Administrative expenses 2708 (1208)
2396 (1211)
3076 (1215)
5514 (1200)
6004 (1216)
IV Expenditure on amenities
1713 (764)
1832 (926)
1327 (524)
2532 (551)
2696 (546)
V Miscellaneous 337 (150)
496 (251)
472 (186)
727 (158)
805 (163)
Total 22423 (100)
19783 (100)
25322 (100)
45947 (100)
49378 (100)
2 APMC Shorapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
1359 (4500)
4146 (4052)
4140 (4050)
3340 (3890)
2439 (5220)
II Contribution to KSAM board
473 (1565)
1751 (1711)
1750 (1712)
1556 (1812)
905 (1936)
III Administrative expenses 665 (2216)
2587 (2528)
2581 (2525)
2128 (2478)
1182 (2530)
IV Expenditure on amenities
440 (1458)
1586 (1550)
1534 (1501)
1285 (1496)
107 (228)
V Miscellaneous 079 (261)
070 (159)
005 (212)
277 (324)
040 (086)
Total 3020 (100)
10234 (100)
10223 (100)
8586 (100)
4673 (100)
3 APMC Shahapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
363 (4801)
703 (6701)
920 (5742)
2480 (6688)
2308 (6454)
II Contribution to KSAM Board
054 (714)
064 (610)
067 (418)
081 (218)
074 (206)
III Administrative expenses 154 (2037)
128 (1220)
252 (1573)
501 (1351)
489 (1367)
IV Expenditure on amenities
065 (860)
072 (686)
143 (892)
263 (709)
258 (721)
V Miscellaneous 120 (1580)
082 (783)
22 (1375)
383 (1034)
447 (1252)
Total 756 (100)
1049 (100)
1602 (100)
3708 (100)
3576 (100)
Source Annual reports of APMC Gulbarga for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
105
As that of the income position the analyses of the pattern of expenditure also
important as the functions of the regulated markets are constrained by the financial
limitations Here the study of expenditure dimension of regulated market was felt
necessary The pattern of the growth in expenditure has shown a steady pace during
2012-13 and 2013-14 in APMC Gulbarga It was very lowest in 2010-11 ie 19783
lakhs The major items of expenditures to which Gulbarga APMC Shorapur APMC
and Shahapur APMC were diverted include contribution to state consolidated fund
expenditure on amenities and contribution to KSAM board During the research
period the share contribution to state consolidated fund was ranged between 6562
to 7223 in Gulbarga APMC this percent of share in total expenditure was in
between 3590 to 5220 in APMC Shorapur and in APMC Shahapur it was
4801 to 6701 At the same time the contribution to KSAM board was almost
below 20 to total expenditure in all three APMCs selected in Gulbarga district
The administration expenses was found to be second major item of
expenditure in sample units of Gulbarga district It was all most stable in Gulbarga
APMC ie 12 and above 2216 to 25305 in Shorapur APMC and 1220 to
2037 in the Shahapur APMC The other expenses such as the security facilities
rent taxes electricity printing and stationary charges etc remained as minor
expenditure
II) Expenditure position of selected APMCs in Bidar District
The expenditure statement relating to the selected APMCs in Bidar district is
shown in the below Table 47 The percentage of individual expenditure to total
expenditure for the period of five years is also presented in the same table
A glance on the statement of trends in growth of expenditure in the selected
APMC in Bidar district reveals that the Bidar APMC had an annual expenditure
around Rs 145 lakhs In case of APMC Bhalki annual average expenditure was
around Rs 2118 lakhs and in APMC Aurad this amount was Rs 1701 lakhs
106
Table-47
Trends in Growth of Expenditure of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
6600 (7141)
10883 (7016)
8645 (6625)
10623 (6740)
13753 (7267)
II Contribution to KSAM board
1761 (823)
1260 (812)
1370 (1050)
1668 (1058)
1972 (1042)
III Administrative expenses
1382 (1496)
1945 (1254)
1249 (957)
1597 (1013)
2292 (1211)
IV Expenditure on amenities
275 (298)
462 (298)
1019 (781)
986 (568)
759 (401)
V Miscellaneous 225 (242)
961 (620)
766 (587)
888 (621)
149 (079)
Total 9243 (100)
15511 (100)
13049 (100)
15762 (100)
18925 (100)
2 APMC Bhalki 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
503 (5164)
619 (5213)
768 (4931)
1245 (4777)
2284 (5359)
II Contribution to KSAM board
069 (711)
076 (640)
184 (1183)
334 (1281)
889 (2085)
III Administrative expenses
380 (3902)
426 (3586)
547 (3510)
918 (3525)
858 (2013)
IV Expenditure on amenities
011 (112)
031 (265)
041 (260)
087 (335)
189 (444)
V Miscellaneous 012 (211)
036 (296)
018 (116)
023 (082)
042 (099)
Total 975 (100)
1188 (100)
1558 (100)
2607 (100)
4262 (100)
3 APMC Aurad 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
365 (5577)
188 (3067)
256 (3514)
486 (4065)
2185 (4113)
II Contribution to KSAM board
048 (740)
093 (1516)
089 (1219)
182 (1517)
782 (1471)
III Administrative expenses
211 (3210)
186 (3050)
243 (3341)
361 (3016)
1521 (2862)
IV Expenditure on amenities
014 (221)
105 (1725)
121 (1661)
150 (1255)
751 (1415)
V Miscellaneous 018 (252)
041 (642)
019 (265)
018 (147)
074 (139)
Total 656 (100)
613 (100)
728 (100)
1197 (100)
5313 (100)
Source Annual reports of APMC Bidar for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
107
From the table 47 it was clear that administrative expenses constitute 957
to 1496 in total expenses in APMC Bidar it was as high as compared to APMC
Bidar and APMC Aurad ie 2013 to 3902 during the research period In Aurad
the situation was completely different ie it ranged between 2862 to 3341
during the same period ie 2009-10 to 2013-14
The trends in the contribution to state consolidated fund also showed an
increasing and decreasing trend in all the three APMCs in Bidar district during the
plan period In Bidar APMC it was registered lowest contribution to state
consolidated fund in the year 2009-10 ie Rs 6600 lakhs and the highest in Rs
13753 lakhs in 2013-14 Similarly in case of APMC Bhalki lowest was recorded in
2009-10 ie Rs 975 lakhs and highest in the year 2013-14 ie Rs 4262 lakhs But
in APMC Aurad beginning year ie 2009-10 it was Rs 365lakhs decreased to Rs
188 lakhs in 2010-11 and again increased to maximum Rs 2185 lakhs in 2013-14
Apart from a sizeable proportion of expenditure (ie 116 to 961) was made
under the head miscellaneous
III) Expenditure position of selected APMCs in Koppal
The trends in the growth of total expenditure incurred by the sample APMCs
in the Koppal district is presented for the five years period ie 2009-10 to 2013-14 in
the below Table 48
Table 48 depicts the expenditure position of three APMCs selected for the
present study in the Koppal district A detailed analysis of this indicates that the total
expenditures incurred by APMC Koppal were increased through out the study period
from Rs 2217 lakhs in 2009-10 to Rs 6862 lakhs in 2013-14 The same situation
was also found in case of APMC Gangavati ie Rs 29714 lakhs in 2009-10
increased to Rs 54160 lakhs in 2013-14 and in APMC Kustagi total expenditure was
Rs 4015 lakhs in 2009-10 raised to Rs 6295 lakhs in 2013-14
108
Table-48
Trends in Growth of Expenditure of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
1157 (5217)
1522 (5071)
2205 (5316)
2261 (5555)
4023 (5862)
II Contribution to KSAM board
143 (646)
224 (748)
307 (741)
287 (705)
537 (782)
III Administrative expenses
668 (3014)
944 (3147)
1167 (2813)
1101 (2704)
1720 (2506)
IV Expenditure on amenities
226 (1019)
267 (891)
333 (805)
332 (815)
480 (700)
V Miscellaneous 023 (104)
044 (143)
137 (325)
091 (221)
102 (150)
Total 2217 (100)
3001 (100)
4149 (100)
4072 (100)
6862 (100)
2 APMC Gangavati 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
15819 (5324)
23396 (5410)
28621 (5450)
27388 (5470)
29896 (5520)
II Contribution to KSAM board
1902 (640)
2422 (560)
2757 (525)
2753 (550)
3629 (670)
III Administrative expenses
8338 (2806)
12541 (2900)
15807 (3010)
14821 (2960)
15381 (2840)
IV Expenditure on amenities
3310 (1114)
4329 (1001)
4989 (950)
4657 (930)
4604 (850)
V Miscellaneous 345 (116)
558 (129)
342 (065)
451 (090)
650 (120)
Total 29714 (100)
43246 (100)
52516 (100)
50070 (100)
54160 (100)
3 APMC Kustagi 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2168 (5400)
2357 (5610)
2498 (5520)
2647 (5620)
3607 (5730)
II Contribution to KSAM board
225 (560)
189 (450)
288 (660)
363 (770)
535 (850)
III Administrative expenses
1169 (2913)
1195 (2845)
1326 (2930)
1232 (2615)
1711 (2718)
IV Expenditure on amenities
422 (1050)
405 (965)
319 (705)
396 (840)
319 (507)
V Miscellaneous 031 (077)
056 (130)
094 (185)
072 (155)
123 (195)
Total 4015 (100)
4202 (100)
4525 (100)
4710 (100)
6295 (100)
Source Annual reports of APMC Koppal for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
109
When we look at the percentage of specific expenditure in the total
expenditure contribution to state consolidated fund was major component ie in
Koppal APMC 5071 to 5862 in APMC Gangavati 5324 to 5520 and in
APMC Kustagi 54 to 5730 during the plan period However contribution to
KSAM Board constitute an annual average around Rs 3 lakhs per year in APMC
Koppal Rs 2693 lakhs per year in APMC Koppal Rs 2693 lakhs per year in
APMC Gangavati and Rs 32 lakhs per year in APMC Kustagi Administration
expenses also got secondary importance in the expenditure position followed by the
expenditure on amenities in the market yard Miscellaneous expenditure constitutes a
negligible percentage in the total expenditure
IV) Expenditure position of selected APMCs in Raichur
Table 49 depicts the year wise total expenditure spent by the sample
APMCs in the Raichur district during the five years period of study ie 2009-10 to
2013-14 Table 49 reveals that the expenditure incurred by the APMC Raichur was
not constantly increased It was decreased in 2010-11 and 2011-12 indicating that it
was more efficient in control of expenditure but during last two years of plan period it
increased from Rs44965 lakhs in 2009-10 to Rs67431 lakhs in 2013-14 with annual
aggregate growth over pervious year Rs4493 lakhs
In case of Sindnoor APMC the annual growth during the study period was
Rs3835 lakhs over the previous year As far as APMC Linagsugur is concerned this
was Rs 564 lakhs A keen observation on the expenditure statement of selected
APMCs in Raichur district points out that the APMC Raichur has got first rank in
terms of the total expenditure incurred among the selected APMCs in the district
followed by the APMC Sindnoor and APMC Lingasugur respectively As use well
contribution to state consolidated fund remained the dominating expenditure in the
total expenditure followed by expenditure on amenities Administration expenses and
contribution to KASM Board The state consolidated fund which was eaten away the
major position of total expenses (6535) to 7238 in Raichur APMC 5518 to
5730 in APMC Sindnoor and 5518 to 5730 in APMC Sindnoor and 5566 to
600 in APMC miscellaneous expenses remained minor expenses in total expenses
110
Table-49
Trends in Growth of Expenditure of Selected APMC in Raichur District
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 31862 (7086)
24764 (6535)
30247 (7100)
39880 (7238)
21275 (3155)
2 Contribution to KSAM board
3795 (0844)
5135 (1355)
5197 (1220)
6391 (1160)
3539 (525)
3 Administration expenses 5216 (1160)
4036 (1065)
4090 (960)
4849 (880)
(1550)
4 Expenditure on Amenities 2905 (646)
2065 (545)
2185 (513)
3471 (630)
(4210)
5 Miscellaneous 1187 (264)
1894 (500)
882 (207)
508 (092)
(560)
Total 44965 (100)
37894 (100)
42601 (100)
55099 (100)
67431 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 6283
(5655) 7740
(5518) 11182 (5685)
14152 (5690)
17353 (5730)
2 Contribution to KSAM board
833 (750)
1000 (713)
1241 (631)
1644 (661)
1968 (650)
3 Administration expenses 589 (530)
588 (419)
1017 (517)
1300 (523)
1332 (440)
4 Expenditure on Amenities 3350 (3015)
4418 (3150)
5959 (3030)
7496 (3014)
9443 (3118)
5 Miscellaneous 0050 (050)
280 (200)
270 (137)
279 (112)
188 (062)
Total 11111 (100)
14026 (100)
19669 (100)
24871 (100)
30284 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 1102
(5566) 1364
(5818) 2193
(5910) 2674
(6130) 2879
(6000) 2 Contribution to KSAM
board 127
(640) 331
(1431) 382
(1030) 689
(1580) 773
(1612) 3 Administration expenses 159
(804) 144
(614) 394
(1061) 267
(611) 362
(755) 4 Expenditure on Amenities 500
(2530) 483
(2060) 673
(1814) 628
(1440) 710
(1480) 5 Miscellaneous 092
(460) 023
(095) 069
(185) 104
(239) 074
(153) Total 1980
(100) 2345 (100)
3711 (100)
4362 (100)
4798 (100)
Source Annual reports of APMC Raichur for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
111
V) Expenditure position of selected APMCs in Bellary
In the Table 410 the details of the various expenditure incurred by the three
APMCs which are taken for the research as sample in the Bellary district are shown
clearly along with individual expenditure percentage to total
The total expenditure for all the five years of the study and the details of
expenditure under each heads along with the percentage to total of Bellary APMC
indicates that a rapid growth was found in total expenditure ie Rs 8835 lakhs in
2009-10 increased to Rs 33116 lakhs in 2013-14 with compound annual growth
during study years 27482 This compound growth in the APMC Hospet was found
to be negative in 2010-11 and 2013-14 and positive in 2011-12 and 2012-13 In case
of Siraguppa APMC the compound growth was 47147 during research period
112
Table-410
Trends in Growth of Expenditure of Selected APMC in Bellary District
(Rs In lakhs)
Sl No APMC Bellray
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
4477 (5067)
3860 (2767)
4820 (2026)
6933 (2811)
10076 (3042)
II Contribution to KSAM board
746 (844)
643 (461)
1803 (758)
1155 (468)
1679 (507)
III Administrative expenses
3310 (3746)
4673 (3350)
15965 (6711)
16011 (6490)
20499 (6190)
IV Expenditure on amenities
276 (312)
159 (114)
1190 (500)
558 (226)
838 (253)
V Miscellaneous 026 (031)
011 (007)
008 (005)
011 (005)
024 (008)
Total 8835 (100)
13946 (100)
23766 (100)
24668 (100)
33116 (100)
2 APMC Hospet 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2406 (7014)
2210 (7161)
2852 (6562)
2961 (6860)
2460 (7176)
II Contribution to KSAM board
320 (932)
216 (700)
416 (957)
429 (993)
317 (924)
III Administrative expenses
481 (1402)
418 (1354)
425 (978)
402 (931)
418 (1219)
IV Expenditure on amenities
114 (332)
101 (327)
269 (618)
219 (507)
125 (365)
V Miscellaneous 109 (320)
141 (458)
384 (885)
305 (709)
108 (316)
Total 3430 (100)
3086 (100)
4346 (100)
4316 (100)
3428 (100)
3 APMC Siraguppa 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
4088 (5154)
4055 (5011)
7662 (4813)
9122 (4313)
28595 (6310)
II Contribution to KSAM board
564 (711)
544 (672)
1238 (778)
1581 (748)
2626 (579)
III Administrative expenses
3030 (3820)
2903 (3587)
5026 (3157)
6919 (3271)
9763 (2154)
IV Expenditure on amenities
167 (211)
293 (362)
883 (555)
1477 (698)
2888 (637)
V Miscellaneous 082 (104)
297 (368)
1111 (697)
2051 (970)
1452 (320)
Total 7931 (100)
8092 (100)
15920 (100)
21150 (100)
45324 (100)
Source Annual reports of APMC Bellary for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
113
C) Profit Position
Profit is the excess of income over expenditures by the organization Profit is
the best indicator of the performance of any organization Higher the profit higher is
the efficiency and vice-versa APMCs are established not for profit motive but profits
remain important for their survival for future An attempt here is made to know profit
position by taking income and expenditure of all the selected APMCs in the Gulbarga
division and conclusion is drawn about their performance by comparing in APMC
with other APMC and also level of performance during the period under study
Table 411 depicts the year wise income expenditure and profitloss position
of the selected APMCs in the Gulbarga district The income of the three sample
APMCs from the Gulbarga district was shown an upward trend during the research
period ie 2009-10 to 2013-14 expect in the year 2010-11 the APMC Shorapur
income was down to Rs 6084 lakhs from Rs 6651 lakhs in 2009-10 When we see
the expenditure position of all the APMCs in the same table neither it was constantly
increasing or decreasing over a period of time it was showing zigzag trend Expect
the Shahapur APMC remained increasing during the plan period from Rs 756 lakhs
in 2009-10 to Rs 3576 lakhs in 2013-14
114
Table-411
Profit Position of Selected APMC in Gulbarga District
(Rs In lakhs)
Year Gulbarga Shorapur Shahapur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 29176 22423 6753 6651 3020 3631 1705 756 949
2010-11 30936 19783 11153 6084 10234 - 4150 1990 1049 941
2011-12 42852 25322 17530 9859 10223 0364 2404 1602 802
2012-13 73932 45947 27984 12517 8586 3931 4989 3708 1281
2013-14 87054 49378 37676 22176 4673 17502 8792 3576 5216
Source Annual Reports of Gulbarga APMC for 2009-10 to 2013-14
115
The detailed study of profit position of the selected APMC in Gulbarga district
also indicates that Shahapur APMC has made average amount of the profit in research
period without incurring any loss in the same period But APMC Shorapur had made
huge loss in the year 2010-11 ie Rs 4150 lakhs during heavy expenditures As per
APMC Gulbarga is concern profit was increased steadily from Rs 6753 lakhs in
2009-10 to Rs 37676 lakhs in 2013-14 with an annual aggregate growth of Rs 6184
lakhs per year
The Table 412 reveals that the profit or loss position of the selected APMCs
in Bidar district The analysis of profit of above APMCs in the table indicates that
Bidar APMC has positioned first in earning profit among three APMCs followed by
Bhalki APMC and APMC Aurad During the research period APMC Aurad had
incurred to Rs 3271 lakhs in 2013-14 The profit of Bidar APMC was ranged in
between Rs 932 lakhs to Rs 16042 lakhs and APMC Bhalki it was lowest to Rs
181 lakhs to highest Rs 2608 lakhs Both income and expenditure of Bidar APMC
was increased rapidly over a period time But in case of Aurad APMC the degree of
growth of expenditure was greater than the degree of growth in income which
reported slow growth in the profit The situation was different in case of APMC
Bhalki it was opposite and was almost 4 times increased in APMC Bhalki ie from
Rs 714 lakhs to Rs 2608 lakhs profit remained stable in APMC Aurad ie in
between Rs 323 lakhs to Rs 16042 lakhs in APMC Bidar during the period under
consideration
116
Table ndash 412
Profit Position of Selected APMCS in Bidar District
(Rs In lakhs)
Year Bidar Bhalki Aurad
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 18275 9243 9031 1689 975 714 1126 656 469
2010-11 16443 15511 932 1369 1188 181 1045 613 432
2011-12 17575 13049 4526 2739 1558 1181 1052 728 323
2012-13 31805 15762 16042 4330 2607 1722 1685 1197 487
2013-14 30420 18925 11495 6871 4262 2608 2041 5313 - 3271
Source Annual Reports of Bidar APMC for 2009-10 to 2013-14
117
The Table 413 deals with the trends in growth of income expenditure and
profit position of sample group of APMCs from the Koppal district Koppal district
APMCs were considered to be minor APMCs in the Gulbarga division A micro study
of these three APMCs in Koppal district reveals that APMC Gangavati was a leading
APMC in the Koppal district as it made super profit during the research period as
compared to APMC Koppal and AMPC Kustagi APMC Koppal has made average
profit ie Rs 1492 lakhs to Rs 4170 lakhs and APMC Kustagi has made normal
profit ie from Rs 540 lakhs to Rs 3995 lakhs during the five years study period
ie 2009-10 to 2013-14 Increased expenditures in APMC Koppal and APMC
Kustagi was eaten the profit
Profit position of the three APMCs from the Raichur district for the period of
five years ie 2009-10 to 2013-14 is shown in the Table 414 The table clearly
shows the year wise income position and its growth expenditure position and its trend
and the profit trend Among these three APMCs selected in sample from the Raichur
district Raichur APMC has earned highest amount of income which resulted highest
profit during the study period as compared to the APMC Sindhnoor and APMC
Lingasugur The profit of APMC Raichur was Rs20629 lakhs in 2009-10 increased
to Rs 45018 lakhs in 2013-14 during the research period During the same period
the profit of APMC Sindhnoor was increased from Rs 9518 lakhs to Rs 19171
lakhs and APMC Lingasugur from Rs 1327 to Rs 2201 lakhs with percentage
growth of almost 100 and 9026 respectively
118
Table-413
Profit Position of Selected APMCs in Koppal District
(Rs In lakhs)
Year Koppal Gangavati Kustagi
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 3709 2217 1492 51692 29714 21977 1185 645 540
2010-11 5849 3001 2848 68917 43246 25671 1346 775 571
2011-12 6223 4149 2074 78239 52516 25722 1684 1005 679
2012-13 6475 4072 2403 79755 50070 29684 2514 1469 1045
2013-14 11032 6862 4170 91123 54160 36963 10291 6295 3995
Source Annual Reports of Koppal APMC for 2009-10 to 2013-14
119
Table-414
Profit Position of Selected APMCs in Raichur District
(Rs In lakhs)
Year Raichur Sindnoor Lingusugur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 40895 19035 21859 20629 111111 9518 3761 2434 1327
2010-11 48932 44965 3966 22760 14026 8734 2907 1980 926
2011-12 58356 37894 20462 30084 19669 10414 3708 2345 362
2012-13 71950 42601 29348 42881 24871 18009 6078 3711 2367
2013-14 100117 55099 45018 49455 30284 19171 7562 4362 2201
Source Annual Reports of Raichur APMC for 2009-10 to 2013-14
120
The Table 415 reveals the year wise profit made by the sample APMCs in the
Bellary district APMC Hospet has made least profit during all five years research
period but it increased from Rs 864 lakhs in 2009-10 to Rs 5211 lakhs in 2013-14
APMC Bellary had achieved significant progress in earning profit as compared to
APMC Siraguppa The profit of APMC Bellary steadily increased around 4 times
over the beginning year ie Rs 7576 lakhs in 2009-10 to Rs 27843 lakhs in 2013-
14 But the APMC Sirguppas profit was highest recorded in 2011-12 and 2012-13 ie
Rs 11784 lakhs and Rs 13315 lakhs respectively
121
Table-415
Profit Position of Selected APMCS in Bellary District
(Rs In lakhs)
Year Bellary Hospet Siragoppa
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 16411 8835 7576 4295 3430 864 9885 7931 1954
2010-11 22346 13946 8399 5682 3086 2596 12408 8092 4316
2011-12 28230 23786 4444 6404 4346 2058 27704 15920 11784
2012-13 40352 24682 15670 6816 4316 2499 34466 21150 13315
2013-14 60959 33116 27843 8639 3428 5211 59912 45324 9587
Source Annual Reports of Bellary APMC for 2009-10 to 2013-14
122
CHAPTER-V FINDINGS SUGGESTIONS AND CONCLUSION
FINDINGS
1 During field study the researcher found that all the APMCs working in
Gulbarga division are suffered storage facilities in general and cold storage
facilities in particular This calls for medium and big producers to take storage
facilities by paying heavy fees to private service provider
2 The field investigation resulted that the farmers have been experienced
difficulties in getting timely payment even after the sale of their produce
3 It is learnt from the field study of market participant that larger participant
were qualified upto secondary and the technical qualification such as ITI
Diploma etc Education among market participant is considered to be most
significant factor in discharging their duties and responsibilities more
efficiently and effectively
4 The analysis of nature of participant in the agricultural market revealed that
commission agents were dominant in the total market participant followed by
traders with 25 of sample group and Hamalas which constitute 16 of
sample size
5 Macro studies of facilities at the APMC yard in five districts of Gulbarga
division opinioned the lack of facilities ie Non-availability of drinking water
canteen transport and communication facilities etc One sample lsquoTrsquo test was
applied and the result shows that lsquotrsquo values ranged for above facilities between
46425 to107000 Mean difference was found between 14400 to 2000
6 The correlation between two variable ie advance money and number of
commodities was +0611 which is insignificant Similarly the correlation
between transport facility and role of government in market and graduation
facility with more representatives from farmers resulted 0445 and 0948 also
in significant but the only significant factor found between difficulty of
storage and increase in facilities with a value of 0508
7 There are different sources of incomes available to APMC These sources may
be classified like market fees licence fees penalty etc Among these sources
123
of income market fees collected by APMC were major but other incomes are
also envisaged in KAPM (R) Act 1966
8 The expenditure position of the selected APMCs in Gulbarga division which
covers five districtrsquos found that major use of expenditure by each APMCs
were contribution to state consolidated fund and contribution to KSAM Board
which was ranged between 3042 to 7210 and 564 to 2630
respectively
9 There are only three charges allowed for deduction from the sale produced of
farmers in Gulbarga APMC division they are commission to agents Hamali
and weighment Field investigation by researcher found that these charges are
nominal
SUGGESTIONS
1 To achieve its (APMC Act) objectives and for effective implementation of its
bye law and policies it is suggested that APMCs should open its branches at
Hobli level so that they may help and guide the formers in marketing of their
grown agricultural produce
2 It is recommended to all APMCs in Gulbarga division to take efforts to stop
rural marketing to get better price An inspection team has to be formed to
stop local sales The team member should visit all the villages coming under
the jurisdiction of the APMC during Post harvest
3 Lots of changes have to be brought into the marketing activities in the APMC
yard Scientific grading and enlightment for all commodities in the market
yard be made compulsory in a phased manner
4 Illiteracy of formers and lack of Medias for communication of information has
been a big problem in rural as well as semi-urban areas The information
obtained should be in a position to help them in decision making Hence it is
recommendable to each APMC for equipping the intelligence cell and branch
offices with highly qualified and trained staff to perform the job quicker to
help producers at right time
5 The existing facilities of processing and storage in all the APMC of Gulbarga
division are inadequate This gap need to be filled up The local government
administrative bodies financial agencies and APMCs should motivate the
124
processing units to be set up and also more godowns are to be encouraged for
construction in these areas
6 Proper co-ordination between the financial agencies established by APMCs or
any other organization to be set up for this purpose is necessary This
definitely prevent the exploitation of farmers by private financiers This
problem needs to be tackled on priority basis in Gulbarga division
7 To avoid the injustice at the time of weighment of farm produce on arrival
and sale APMCs needs to make it compulsory to install electronic weighting
machines The issue of weighment note to the agriculturist by agents is made it
compulsory
8 As far as Gulbarga division APMCs are concerned they have completely
neglected the importance of two marketing services ie assembling and
processing The absence of these two services in the study area is a reflection
on its lethargic and indifferent attitude in providing a comprehensive package
of marketing services to the rural farmers
9 Lots of changes have to be brought into the payment to the farmers after sales
The strong actions against the defaulting commission agent should be
exercised and also cautioned against such delays on their part when any
complaint from the farmers regarding the delay In this regard formulation of
rigid policy is recommended at all APMCs
10 Some of the APMCs in Gulbarga division are still practicing mutual
negotiation method of sale this leads unfavourable price for the agricultural
produce Auction system of sale is made compulsory for all commodities
arriving in the market yard and negotiation method is to be prohibited
11 It was noticed from the market yard during the field visit different types of
malpractices on the part of the unscrupulous market functionaries In order to
eliminate this harassment to farmers the marketing committee has to detect
such unethical practices from market participants and they be severely
punished with fine and imprisonment
12 To improve the overall quality of services (marketing services and
infrastructure facilities) it is strongly advisable to marketing committees to
implement all the provisions lay down in KAPM (R) Act 1966 and rules in
1968 along with suggestions made by Indian standards Institute (RSI) for the
benefit market functionaries in general and farmers in particular
125
13 A network of rural storage centres should be built on a priority basis in order
to prevent distress sales wastage and loss arising out of inadequate and
defective storage facilities
14 These storage centres may be constructed and managed by panchayats
cooperatives and other suitable agencies selected by the State Government
15 Farmers should be provided with receipts for the commodities stored by them
Each receipt should be a negotiable instrument to enable them to obtain credit
from banks
16 The banks should provide credit to the extent of 90 percent of the value of the
stocks stored by the farmers and the credit should be provided at concessional
rates of interest
17 Arrangements for the display of prices on notice boards at important public
places like hospitals schools panchayat ghars etc should be made
18 There must be proper coordination between market intelligence and policy
making departments so that the later may better understand the problem and
can make such adjustments in the information as may be called for
CONCLUSION
Indiarsquos long-neglected agriculture sector is all set to grow faster We have
improved a lot since independence In the last few years it has grown at an average
rate of 31 only and there is a need to step up the growth in this sector Then only
Indiarsquos GDP growth cross 9 and rural income and rural employment increases
It is time to APMCs to give concrete shape to the agro-industrial integration
by starting industrial units based on agricultural raw-materials This integration will
create a better economic atmosphere for the growth of the Karnataka region as well as
Gulbarga division
126
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1 Acharya S S and D P Chaudhri (Ed) Indian Agricultural Policy at Cross-
Roads Rawat Publications Jaipur 2001
2 Acharya S S and N L Agarwal Agricultural Prices-Analysis and Policy
Oxford and IBH Publishing Co Pvt Ltd New Delhi 1994
3 Acharya S S Agricultural Production Marketing and Price Policy-A Study
of Pulses Mittal Publications Delhi-110035 1988
4 Acharya S S M S Rathore and P R Sharma Agricultural Marketing - A
National Dialogue Institute of Development Studies Jaipur 1998
5 Agarwal N L Agricultural Prices and Marketing in India-An Analytical
Case Study of Rajasthan Mittal Publications Delhi-110035 1986
6 Agricultural Technology Management Agency MANAGE-NATP series 2
1999
7 Amarchand D and B Vardharajan An Introduction to Marketing Vikas Pub-
lishing House Private Ltd New Delhi 1980
8 Anne Margaret Thomson 1993 Promoting Private Sector Involvement in
Agricultural Marketing in Africa (Fao Agricultural Services Bulletin)
9 Bailey Norwood F and Jayson Lusk 2007 Agricultural Marketing and Price
Analysis
10 Barker J W 1990 Agricultural Marketing (Oxford science publications)
11 Berend Wierenga Aad van Tilburg Klaus Guumlnter Grunert and Jan-Benedict
EM Steenkamp 1997 Agricultural Marketing and Consumer Behavior in a
Changing World
12 Bill Malcolm Jack Makeham and Vic Wright 2006 The Farming Game
Agricultural Management and Marketing
13 Brian How R 1995 Marketing Fresh Fruits and Vegetables (An AVI Book)
14 Brunk M E and L B Darrah Marketing of Agricultural Products The
Ronald Press Company New York 1955
15 Campbell K O 1973 Agricultural Marketing and Prices Cheshire
Publishing Melbourne Australia
16 Carter S 1998 Global Agricultural Marketing Management (Marketing amp
Agribusiness Texts Series (Series 09005676 No 3)
127
17 Chakraborty and Krian Sankar 2009 Rural Markets and Agricultural
Marketing
18 Chandra Shekara P 2001 Private Extension in India Myths Realities
Apprehensions and Approaches
19 Chandrashekara P 2001 Private Extension Indian Experiences
20 Common Principles for Watershed Development 1999
21 Crawford I M 1997 Agricultural and Food Marketing Management
(Marketing and Agribusiness Texts 2)
22 Dennis Chiwele Pumulo Muyatwa-Sipula and Henrietta Kalinda (Paperback -
Jan 1998) Private Sector Response to Agricultural Marketing Liberalisation in
Zambia A Case Study of Eastern Province Maize Markets (Research Report
Nordiska Afrikainstitutet)
23 Desai G R and Arora S K 1999 Trainers Training manual for Participatory
Management on Watershed
24 Desmond ORourke A 1994 The World Apple Market (Fpp Agricultural
Commodity Economics Distribution amp Marketing)
25 Dieter Elz 1987 Agricultural Marketing Strategy and Pricing Policy (World
Bank Symposium)
26 Dixit R S 2006 Agricultural Marketing in India
27 Erdener Kaynak 1986 World Food Marketing Systems
28 Erdener Kaynak and Matthew Meulenberg 1995 Food and Agribusiness
Marketing in Europe
29 Euan Fleming and Hugh Coulter 1992 Agricultural Export Marketing South
Pacific The Future Role of Marketing Authorities (Pacific Policy Papers)
30 Farris P 1983 Future Frontiers in Agricultural Marketing Research
31 Fertilizer and product Guide 1997
32 Foxall G R1982 Co-Operative Marketing in European Agriculture
33 Geoffrey S Shepherd and Gene A Futnell 1982 Marketing Farm Products
Economic Analysis
34 George Angell 1986 Agricultural Options Trading Puts and Calls in the New
Grain and Livestock Futures Market
35 Giriappa S 2000 Institutions and agricultural marketing in a semi-commercial
system
128
36 Gupta A P Marketing of Agricultural Produce in India Vora and Co
Publishers Pvt Limited Mumbai 1975
37 Hughes D R HM Martin and MVan Nieuwkerk 1993 A Comparative
Study of Agricultural Marketing in the Netherlands and the United Kingdom
(Food Industry Perspectives Discussion Paper)
38 Inderjit Singh Lyn Squire and James Kirchner 1985 Agricultural Pricing and
Marketing Policies in an African Context A Framework for Analysis (World
Bank Staff Working Paper) (No 743)
39 Indian Society of Agricultural Marketing Vistas in Agricultural Marketing
1997
40 Jagdish Prasad Encyclopedia of Agricultural Marketing Vol I to VIII 2000
Mittal Publications Delhi-110035
41 Narain Dharam Distribution of the Marketed Surplus of Agricultural Produce
by Size-Level of Holdings in India 1950-51 Asia Publishing House New
Delhi
42 Nayyar H and P Ramaswamy Globalization amp Agricultural Marketing
Rawat Publications Jaipur 1995
43 Neelamegham S Marketing Management and the Indian Economy Vikas
Publishing House Pvt Ltd New Delhi 1978
44 Padberg D I C Ritson and L M Albisu 1997 Agro-Food Marketing
45 Polopolus LC and Jesus Alvarez 1991 Marketing Sugar and other
Sweeteners (Developments in Agricultural Economics)
46 Prabhakar Rao Marketing Efficiency in Agricultural Production Himalaya
Publishing House Mumbai 1985
47 Procurement guidelines under National Agricultural Technology Project
MANAGE-NATP series 4 2000
48 Raghavendran T 2001 Disbursement Procedure for World Funded Projects
(A Guide to Project Implementing Agencies) by MANAGE-NATP series 5
49 Rajagopal Development of Agricultural Marketing in India Print well Jaipur
1996
50 Ralph M Chite 2007 HTML Agricultural issues in the 109th Congress An
article from Congressional Research Service (CRS) Reports and Issue Briefs
129
51 Ramesh Chand and V P S Arora (Ed) Agricultural Input and Output
Market Reforms in India Advance Publishing Concept New Delhi-11 0064
2000
52 Ramesh Chand Agricultural Development Price Policy and Marketed Surplus
in India (Study of Green Revolution Region) Concept Publishing Company
New Delhi-11 0059 1991
53 Rao NGP Perumal N Ghosal SL 1997 Training for Agriculture
Development
54 Sarveshwara Rao and G Parthasarthy Regulated Markets and Public Policy
Book links Corporation Hyderabad
55 Secondo Tarditi Kenneth J Thomson Pierpaolo Pierani and Elisabetta Croci-
Angelini 1989 Agricultural Trade Liberalization and the European
Community
56 Seetharaman S P Agricultural Input Marketing Oxford and IBH Publishing
Co New Delhi
57 Singh J P and Kareem M A 2001 Economic Evaluation of Participatory
Adaptive Research Project
58 Singh J P 2000 Economic Evaluation of Manchal Watershed
59 Singh J P 2000 Socio Economic Dynamics and Development Strategy for
Participatory Adaptive Research Project (PAR)
60 Singh J P 2002 Evaluation of Participatory Adaptive Research Project K
H Vedini 2001 Agriculture Marketing Interventions amp Innovations
61 Singh Rajkumar Agricultural Price Policy in India Print well Publishers
Jaipur
62 Singh J P Chandrasekhar P Kumar TDS and Lakshmi Murthy
2000 Israelrsquos Agriculture (Achievement through innovation and
Technology)
63 Singhal A K 2009 Agricultural Marketing in India by publisher Anmol
Publications pages 246
64 Singhal AK 1989 Agricultural marketing in India
65 Singhal A K Agricultural Marketing in India Anmol Publications New
Delhi 1989
66 Southworth Herman Some Studies on Fresh Fruits and Vegetable Marketing
in Asia Agricultural Development Council Bangkok Thailand 1974
130
67 Subba Rao K Agricultural Marketing and Credit ICSSR New Delhi 1985
68 Tyagi D S Managing Indias Food Economy-Problems and Alternatives
Sage Publications India Pvt Ltd New Delhi 1990
69 Vedini K H 2000 Management Issues in Rainfed Agriculture in India
70 Venkateswarulu J 1999 Technical Manual on Watershed Management
(Series (II) Resource(III)Arable Cropping Systems (IV) Non-Arable
Cropping Systems (V) Non-farming Systems amp Watershed in Retrospect
Conservation)
71 Vijay Gaatha 2002 Agripreneurs Documents 24 success stories of
agripreneurs with 40 different types of projects
72 Vijender Agricultural Marketing in India The Mandi System
JOURNALSMAGAZINES
1 Indian Journal of Agricultural Economics - Quarterly The Indian Society of
Agricultural Economics 46-48 Esplanade Mansions MG Road Fort
Mumbai-400001
2 Agricultural Situation in India - Monthly Directorate of Economics and
Statistics Ministry of Agriculture Government of India New Delhi
3 Indian Agriculture in Brief - Annual Directorate of Economics and Statistics
Ministry of Agriculture Government of India New Delhi
4 Yojana - Monthly Ministry of Information and Broadcasting Government of
India New Delhi
5 Economic Survey - Annual Ministry of Finance Government of India New
Delhi
131
APPENDIX-I QUESTIONNAIRE
QUESTIONNAIRE FOR FARMERS
1) Name of the Farmerhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Name of the village and district helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3) Age (in years)
a) Below [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
4) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P G and others [ ]
5) Sources of income
a) Agriculture [ ] b) Business [ ]
c) Employment [ ] d) Others [ ]
6) Annual gross income (In Rs)
a) Agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Non agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
7) Type of family
a) Nuclear family [ ] b) Joint family [ ]
c) Individual (single) [ ]
8) Number of family members
a) lt 4 [ ] b) 4 ndash 8 [ ]
c) 8 ndash 12 [ ] d) 12 and above [ ]
9) Total agricultural land holding (In Acres)
a) Below 5 Acres [ ] b) 5 ndash 10 Acres [ ]
c) 11 ndash 15 Acres [ ] d) Above 16 Acres [ ]
10) Crops grown in land with quantity per annum
Qty (in Quintals)
a) Red gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Green gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) Black gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) Jowar helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
e) Maize helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
f) Bajra helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
132
g) Bengal gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
h) Sugarcane helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
i) Others helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
11) Sale of agricultural produces
a) Open market [ ] b) APMC [ ]
c) Confirmation Agriculture [ ] d) Others [ ]
12) Preference of sale of agricultural produce
a) Local market [ ] b) Taluka market [ ]
c) District market [ ] d) Other state [ ]
13) How you carry agricultural produce to APMC
a) Bullock cart [ ] b) Tractor and trucks [ ]
c) Hired vehicle [ ] d) Own vehicle [ ]
14) Market charges of the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
15) Carrying cost paid in the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
16) Facilities provided by the APMC
Yes No
a) Water [ ] [ ]
b) Toilet [ ] [ ]
c) Canteen [ ] [ ]
d) Communication [ ] [ ]
e) Shopping property [ ] [ ]
f) Marketing information [ ] [ ]
g) Other facilities (if any) [ ] [ ]
17) Sources for dissemination of marketing information
a) News paper [ ]
b) Radio and Television [ ]
c) Dept of the government [ ]
d) Post and Telephone [ ]
e) Price bulletins [ ]
f) Personal contact [ ]
133
18) Rank the defects in regulated markets
a) No advance money [ ]
b) Difficulty of storage [ ]
c) Lack of transport facility [ ]
d) Lack of gradation facility [ ]
19) Rank the facilities to improve market efficiency
a) More number of commodities [ ]
b) Increases in facilities [ ]
c) More role of government [ ]
d) More representation from farmers [ ]
e) Reduction in market fees [ ]
20) Weather APMC provides adequate transport services
a) Yes [ ] b) No [ ]
21) Weather APMC provides adequate storage facilities
a) Yes [ ] b) No [ ]
22) Does APMC has cold storage facilities at warehouse
a) Yes [ ] b) No [ ]
23) What is the monthly storage cost of your produce at APMC
Rs helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
24) Whether APMC helps you for processing of your produce
a) Yes [ ] b) No [ ]
25) Do you satisfied with processing services provided by processors
a) Yes [ ] b) No [ ]
26) Processing fees paid to processors
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
27) Whether grading facilities are available at the APMC
a) Yes [ ] b) No [ ]
28) Do you satisfied with grading services provided by graders
a) Yes [ ] b) No [ ]
29) Are the graders trustworthy
a) Trustworthy [ ] b) Not trustworthy [ ]
30) Whether APMC provides efficient weighment of produce
a) Yes [ ] b) No [ ]
134
31) Do you satisfied with cost charged for weighment of produce
a) Yes [ ] b) No [ ]
32) Whether electronic weighing balancesmachine have been installed in
markets
a) Yes [ ] b) No [ ]
33) Causes of the defects in weighing
a) Absence of licensed weighman [ ]
b) Under weighing [ ]
c) Favouring for buyer [ ]
d) Faulty weights [ ]
e) Faculty weight machines [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
34) Grading of produce helps in the ways
a) Easy marketing [ ]
b) Reduction of cost [ ]
c) Higher prices [ ]
d) Encourage competition [ ]
e) Easy to get finance [ ]
35) Whether APMC provides market information on time to time
a) Yes [ ] b) No [ ]
36) If lsquoNorsquo what are the defects in market information
a) Ignore retail prices [ ]
b) Delay in news [ ]
c) Wide range of prices [ ]
d) Incomplete information [ ]
e) Illiteracy [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
37) Processing of produce helps to you in the ways
a) Add the value [ ]
b) Preservation for longer period [ ]
c) Less cost of production [ ]
d) Wide extent of the market [ ]
e) Use of surplus food [ ]
135
38) Do you insure your agricultural produce at APMC
a) Yes [ ] b) No [ ]
39) Whether you satisfied with the insurance facilities at the APMC
a) Yes [ ] b) No [ ]
40) Whether bank credit faculties available at the APMC
a) Yes [ ] b) No [ ]
41) Are you satisfied with present banking facilities
a) Yes [ ] b) No [ ]
42) What are the other sources of credit facilities other than bank credit
a) Whole sellers [ ] b) Retail seller [ ]
c) Commission agents [ ] d) Others (specify)helliphelliphelliphelliphellip
43) Ranking the factors determining the finance requirements
a) Nature of crop [ ] b) Terms of payment [ ]
c) Economic condition [ ] d) Fluctuations of prices [ ]
e) Volume of crop [ ]
44) Interest paid on bank credit
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
45) Are you obtaining services form the commission agents at APMC
a) Yes [ ] b) No [ ]
46) Are you satisfied with services provided by licensed commission agents
a) Yes [ ] b) No [ ]
47) If lsquoNorsquo what are the defects with commission agents
a) Favourable to buyer [ ]
b) High commission [ ]
c) Misguide [ ]
d) Lack of knowledge [ ]
e) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
48) Commission paid to commission agents
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
49) Do you have given any complaint against agent to the APMC about more
commission
a) Yes [ ] b) No [ ]
136
50) Whether sufficient number of Hamals are available at the APMC
a) Yes [ ] b) No [ ]
51) The cost of cooli to Hamals
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
52) Are you satisfied with hamals services
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
53) Do you have given any complaint against hamals to APMC for high cooli
a) Yes [ ] b) No [ ]
54) Cooperation of officials of the APMC
a) Fully cooperated [ ] b) Partly cooperated [ ]
c) Not cooperated [ ] d) Neither cooperatenor not [ ]
55) What are the defects you found with APMC officials
a) Non-cooperative [ ] b) Favourable to buyer [ ]
c) Laziness [ ] d) Expect money [ ]
e) Improper market data [ ] f) Others (Specify) helliphelliphellip
56) Do you have given ay complaint to higher officer against defaulting
APMC officer
a) Yes [ ] b) No [ ]
57) Do you have experienced following malpractices at the APMC
a) Inadequate grading [ ]
b) Inadequate packing [ ]
c) Unfavourable weighment [ ]
d) Excess samples [ ]
e) Inadequate supervision [ ]
f) Excess market charges [ ]
g) More favourable to buyer [ ]
h) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
58) Do you have any disputes with buyer
a) Yes [ ] b) No [ ]
59) What are the main causes for disputes in APMC
a) Price of produce [ ]
137
b) Quality of produce [ ]
c) Weighment [ ]
d) Timing of payment [ ]
e) Grading of produce [ ]
f) Warehousing [ ]
g) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
60) Which is the best way for settling of market disputes
a) Secretary level [ ] b) Dispute committee [ ]
c) Arbitration [ ] d) Court [ ]
61) Whether market committee officers supervises the services
a) Yes [ ] b) No [ ]
62) Do you find that APMC helped you in getting better prices for your
produce
a) Yes [ ] b) No [ ]
63) Your opinion about quality of service at APMC
a) Very good [ ] b) Good [ ]
c) Bad [ ] d) Very bad [ ]
e) Either good or bad [ ]
64) What is your opinion about customary deduction
a) As per bye laws [ ]
b) More than systems [ ]
65) Give your suggestions for making improvement in quality of services at the APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
138
APPENDIX-II QUESTIONNAIRE FOR RESPONDENTS
A) Personal Information
1) Name of respondents helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Age of respondents in years
a) Below ndash 20 [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
3) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P and G and others [ ]
4) Religion
a) Hindu [ ] b) Muslim [ ]
c) Christian [ ] d) Others (Specify) helliphelliphelliphelliphelliphellip
5) Nature of participant in APMC
a) Commission agents[ ] b) Hamals [ ]
c) Trader [ ] d) Grader [ ]
e) Processor [ ] f) Broker [ ]
g) Others (Specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6) How long you are in market yard
a) Below 10 years [ ] b) 11 ndash 20 [ ]
c) 21 to 30 [ ] d) 30 and above [ ]
7) Factors motivated for choosing this profession
a) Heredity [ ] b) More profitable [ ]
c) Uncertain induced [ ] d) Unemployment [ ]
e) Other specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
8) Are you satisfied with present marketing practices at APMC
a) Yes [ ] b) No [ ]
9) If lsquoNorsquo give the reasons for unsatisfaction
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
10) Are you satisfied with farmerrsquos activeness in APMC
a) Yes [ ] b) No [ ]
139
11) If lsquoNorsquo suggest to make them more active in market yard
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
12) Are you getting following facilities at the APMC yard
a) Water [ ]
b) Canteen [ ]
c) Communication [ ]
d) Marketing information [ ]
e) Transport [ ]
f) Health and sanitation [ ]
g) Banking and finance [ ]
h) Other (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13) Do you satisfied the above facilities at the APMC yard
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
14) Are you satisfied with quality of marketing of services at the APMC
Services Fully
satisfied
Partly
satisfied
Not
satisfied
No
response
a) Assembling
b) Processing
c) Grading
d) Storing
e) Weighment
f) Banking and finance
g) Rest house
h) Insurance
15) What suggestions do you want for efficient operations of APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
140
APPENDIX-III
PHOTOGRAPHS
ENTRY GATE OF APMC
ROAD FACILITY INSIDE APMC
141
WEIGHING GROUNDNUTS IN APMC
PROCESSING OF GROUNDNUTS
142
FILLED COTTON BAGS
WEIGHING TUR IN APMC
143
STORING GROUNDNUTS OUTSIDE
PROCESSING GRADING AND WEIGHING BAJRA
144
FILLING OF SUNFLOWER IN BAGS
LOADING OF COTTON BY LABOURS
- Table-317
- lsquotrsquo - Test Values
- Table-327
- Pearson Correlations
-
2
with the aim of helping the farmers and hence market committees are obliged to
implement these amendments The Karnataka State Agricultural Marketing Board was
established on 1st September 1972 as per section 100 of the Karnataka Agricultural
Produce Marketing (Regulation) Act 1966 and Rules 1968 The Board acts as a
liaison agency between the market committees and the government of Karnataka for
all-round development of agricultural marketing in the state
12 NEED FOR THE STUDY
The marketing services available in the regulated markets have been very
useful in overcoming various problems of sellers of farm produce like the middle
menrsquos malpractices distress and forced sales at village level under weighing and
other malpractices by the middlemen and also the village money lenders etc
Majority of the agricultural produce is being sold at the village itself by
farmers immediately after harvesting due to urgent financial requirements and lack of
transport facilities Besides a large number of small holders of agricultural land
Hence the quantity of produce is too small for brining it to urban market place for the
purpose of selling at better prices
Establishment of regulated markets in various urban centers has facilitated
marketing of surplus agricultural produce at fair and reasonable prices In evaluating
the government marketing intervention programmes a distinction has to be made
between (a) the nature and degree of marketing intervention to achieve a defined
policy objectives and (b) the most cost effective way of implementing the marketing
intervention scheme However the centers of regulated markets are inadequate in
relation to the number of villages and vast farm sector Hence there is scope for
increasing of number of APMCs and submarket yards in addition to improving the
functioning of existing APMCs to ensure better services and adequate infrastructural
facilities at the premises of these markets A majority of these regulated markets
suffers from certain deficiencies in their functioning
In view of this the present study is undertaken to analyze the extent to which
the inadequacy of marketing of services are encountered by the farmers and other
functionaries in the APMC at Gulbarga division as a whole The research confines
3
itself to the management of APMCs in Karnataka in general and Gulbarga Bidar
Raichur Koppal and Bellary district APMCs in particular The total APMCs consist
for the present study is five APMCs from each district of study area
13 REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related
areas of the subject to find out and to fill up the research gaps Literature on
agricultural marketing can generally be found in a number of books that are available
on agricultural economics rural marketing and regulated markets Only very few
studies were undertaken on APMC and its performance in both agricultural marketing
and development The important studies relating to the present investigation are
referred below
Gopal Rao (1974) has undertaken the study on APMCs and has analyzed their
working in detail The author has confined his study to the four districts of Bombay
Karnataka region through a survey of the markets in the region
Ravirsquos (1975) work analyses the marketing problems of coconut and copra in
Tipatur and Arasikere regulated markets of Karnataka In this area coconut marketing
is dominated by village sales (66) followed by sales through commission agents
(16) and through wholesalers (about 11) and the rest directly by the farmers
(about 7)
Bhogappa (1982) has undertaken the study on ldquoMarketing of agricultural
produce in Gulbarga division of Karnatakardquo which covers only the APMCs of
Gulbarga Revenue Division He has made a special study of the effects of draught and
draught prone areas He has analyzed the special problems of the markets in ldquoAyacutrdquo
areas
Ramaswamy (1984) has submitted the thesis on ldquoA Critical Study of the
Working of Regulated Markets in Tamil Nadu with special reference to Coimbatore
and Periyar districtsrdquo This was the first attempt to assess the applicability of the Act
in Tamil Nadu which has thrown a light on cropping pattern
4
Rayudu (1985) highlighted the five aspects of cardamom marketing designed
by Cardomon Board The Board collects data on global requirements position of
supply conducting market survey for planning implementing and evaluation The
findings in this study could be useful in suitable applications for the finer aspects in
the marketing of similar products
Biradar (1989) observed that there was no incentive scheme for farmers It is
therefore necessary to start the incentive programmes like providing higher prices for
their commodities agricultural inputs at concessional rates and charging lower market
make regulated markets more attractive to the farmers These suggestions have a good
deal of subsidy components on the part of the Government
Selvamurugan and Mohan Sundaram (1990) in their study on the Coimbatore
district concluded that the crossandra in Coimbatore district concluded that the
corrssandra farmers share had been reduced from 3256 percent to 2423 percent
during the lean season Though the street vendors margin had also been reduced from
2328 to 1460 percent the share of commission agents and wholesalers had increased
to large extent ie from 4416 to 6107 per cent
Reddy (1991) conducted a study on marketing channels and marketing
margins of maize in Andhra Pradesh The study revealed that the producers share was
significantly high (8664 to 8687) in the case of Producer to Retailer to Consumer
channel as compared to corresponding share of producer (6314 to 7067) in case of
second channel ie Producer to Wholesaler to Retailer to Consumer
Nagraj and Chandrakant (1992) conducted a study on market performance of
perishables In the study the major marketing channel for vegetables was as below
Producer to Commission agent to Retailer to Consumer
The study could be of much relevance for researches in similar areas of agricultural
marketing
Biswas and Karpate (1994) observed the importance of Maharashtra State
Tribal Development Corporation (MSTDC) in marketing of minor forest produce
The tribal of the area were assured of basic minimum price for their produce notified
5
by the collector of the district The payments in normal course were made
immediately and saved them from exploitation by the middlemen
Mundinamani and Naik (1994) concluded that the per marketing cost of potato
was Rs 2074 as compared to Rs 2261 for brinjal Rs 2325 for onion Rs 2147 for
tomato Rs 5692 for dry chilly Rs 2975 for cotton and Rs 1936 for groundnut
The factors for differences in marketing cost of such agricultural produce need to be
probed by further studies
Atibudhi and Prusty (1995) have studied the marketing margins of Niger in
Rayagada district of Orissa The study concluded that the presence of co-operative
societies in marketing channel reduces the marketing margins and increases the
producers share in consumers rupee Marketing costs were the lowest in the co-
operative channel But marketing costs for storage procurement and transport were
higher for the same
Pawar (1996) has conducted a study on marketing surplus and price spread of
groundnut in Marathwada region of Maharashtra which is the most important
groundnut growing zone where 49 percent of the land is used to grow groundnut The
study concluded that distress sale of ground nut was found in small farmers but
medium and large farmers kept their surplus for future sale to get maximum price
Krishnaih (1998) has conducted a study to identify the marketing channels of
cotton and to analyze the price spread in these channels where he has suggested 7
different channels on distribution of cotton His effort is quite appreciable and it offers
for further research work on the topic However he found that while marketing of
cotton (kapas) majority of the farmers chose the channel in which the role of
commission agent was prominent
Paty (2000) applied the techniques of marketing information system the
agricultural marketing He has explained the concept with flow diagram of the
Integrated Agricultural Marketing Information System which is quite useful for its
practical applications
6
Basavaraj et al (2001) have made it very clear in their article that Karnataka
ranks fifth among the oil seed producing states in the country with an area of
1200135 hectares and a production of 945501 tones during 1994-95 Groundnut
sunflower safflower sesamum and castor were the major oil seeds produced in the
state They have made good policy implications in their study
Jayarathnam (2002) in her study on farmers market (Uzhavar Sandhai) in
Tamil Nadu pointed out the problems in cultivation transportation marketing and
pricing of vegetables Even she has given strengths weaknesses opportunities and
threats of vegetable marketing in Uzhavar Sandais of Tamil Nadu
Von Oppen and Gabadambi (2002) in their research paper have observed
market access impact on agricultural productivity lessons from thirteen chapters in
which they have concluded by stating market access and infrastructure are powerful
tools to commercialize agriculture in developing countries They increase aggregate
productivity initially via specialization and at a later stage via intensification
Sherman Roger (2007) undertook a study on market regulation gives readers
the economic intuition to analyze the history of antitrust and regulation diagnose
current corporate strategy and evaluate possible policy recommendations Roger
Sherman grounds modern examples in historical context and develops thought
provoking discussions to motivate readers from many different backgrounds
Introduction to market regulation competition as a market regulator problems for
competition as regulator
14 STATEMENT OF THE PROBLEM
The farming is largely dependent on the efficient marketing of the products
So the governments have to be very particular and watch all the market operations to
remain self-sufficient in food and to produce the goods for export to other countries
In the process of planning though the agriculture was given high priority for its
development but much attention was not given for the improvement of marketing
But in various states the agricultural marketing boards were established with the
objective to remove all the problems of markets and to regulate the markets for
increasing the efficiency in marketing It is found from various previous studies that
7
the regulated markets donrsquot have adequate and scientific grading facilities resulting in
substantial loss to the farmers excess charging of deductions in the form of
weighment commission etc are still prevailing at present in the regulated markets by
the commission agents or traders while making the payments to the farmers Hence
there is a need to undertake a study of the working of regulated markets in relation to
the responses of producer seller and other market functionaries regarding various
aspects of management of regulated markets The present research work attempted to
examine how the organized markets are working and to assess their role in
facilitating an orderly marketing of agricultural produce in the selected APMCs in
Gulbarga division
On the top of it the Gulbarga division is highly backward with all the
indicators of the backwardness which leaves considerable scope for exploitation by
the money lenders-cum-merchants These contrasts in the division call for different
approaches to marketing management and hence the study reveals interesting results
valuable for policy decisions This study of the division of Gulbarga is of immense
benefit for the economic strategy in the marketing of agricultural produce The study
is also aimed at pointing out various malpractices prevailing in the marketing
management lack of infrastructure storage facilities credit availability and effective
central markets this has resulted lack of innovations in agricultural production and
operations Many studies have been carried out to assess the impact of various
malpractices prevailing in marketing management on production of agricultural
produce However no study has been made to assess the role played by the APMCs in
the agricultural marketing in Gulbarga division highlighting whether these have
succeeded in achieving its objective if not what were the causes and what corrective
measures would have helped it in over coming the problems The present study is a
contribution in this direction
15 OBJECTIVES OF THE STUDY
The following are the objectives set for the study
1) To study the role of APMCs in filling the gaps and deficiencies regarding
agricultural marketing in Karnataka
2) To understand the amenities and facilities at the APMCs and to find out
inadequacies prevalent in APMCs in Gulbarga division
8
3) To know the trade practices in the area under consideration and the extent of
benefits to sellers through organized markets
4) To analyze the farmers responses towards regulated markets as well as market
participants
5) To critically examine the over all performance of APMCs and to identify the
area of improvement in the efficiency and also to offer suggestions to develop
an effective marketing system in Gulbarga division
16 RESEARCH METHODOLOGY
The study is mainly based on both primary data and secondary data The study
covers one broad division of the Karnataka state a survey method is adopted ie
through the pre-tested interview schedules addressed to the sample size of farmers and
market functionaries An unscheduled interview is also conducted to the regional
officials of KSAMB project officer and agricultural departments as well as APMCs
officials
Separate schedules were drawn tested and addressed to market committees
agricultural producers and market functionaries The questionnaires administered to
farmers were 250 in total at the rate of approximately 20 from each district market
All the farmers were representative producers for each market categorized on the
basis of the land holding and also marketable surplus brought to the market for sale
The questionnaire administered to the market participants were 150 in total
covering 20 market functionaries from each district in total sample size market
functionaries includes traders (wholesaler and retailer) commission agents exporters
importers processors and hamalies etc
17 SAMPLE DESIGN
A stratified random sampling method was adopted to drawn the final sample
The Gulbarga division consist of Bidar Gulbarga Raichur Koppal and Bellary
district from each district approximately 50 farmers were selected along with this 30
market functionaries from each district were selected
9
18 DATA ANALYSIS
The data collected from both primary and secondary was processed and
reduced to simple tables in order to present the matter clearly The suitable financial
statement analysis techniques were used to draw the correct conclusion Ratio
analysis which is most powerful and universally used technique for the analysis of
financial performance of APMCs in Gulbarga division
Analysis of variance technique is employed to test whether there is any
statistical significance in sales in different markets Apart from this averages and
percentages are used Graphs maps chart and diagrammatic representation of data
was suitably employed to highlight the significance of the data
19 PERIOD OF THE STUDY
The present study covers the period of five years commencing from 2009-10
to 2013-14 The performance of various items such as sales amenities infrastructure
and facilities of APMCs in Gulbarga division was studies for five years
Due to the wide operational activities of APMCs for agricultural marketing the
study period limited to five years to analyze its role in Karnataka with reference to
Gulbarga division
110 LIMITATIONS OF THE STUDY
The study is not completely free from limitations
1) The study is restricted only Gulbarga Division
2) Only five years period is taken for the purpose of the study because of time
constraints
3) The study is depending on the primary data also some of the respondents give
the poor response however every care has been taken to ensure that
authenticity of the data gathered
4) Some of the markets and the sub markets are so small and irresponsible that no
data is available nor any records of arrivals and disposals The records
maintained at the submarkets in the division are probably not available and
non reliable
10
111 CHAPTERISATION OF THE RESEARCH WORK
The whole research study has been presented in seven chapters
The First chapter deals with the introduction need of the study review of
some of important previous literatures statement of the problem
objectives of the study research methodology employed period of the
study limitations of the study techniques used for data analysis as well as
the chaptarisation of the study
The Second chapter deals with the various functions of the APMCs their
activities And also contains in brief about the trade practices preventing at
present in Gulbarga division as well as the data collected from the market
participants through questionnaire were analyzed to know the level of
satisfaction towards the preventing trade practices in selected APMCs in
Gulbarga division
Chapter Third deals with the opinion collected from the farmers towards
the marketing of their produce as well as their attitude towards regulated
market
Chapter Fourth deals with the financial performance and position during
five years of study period
The Fifth chapter deals with the findings suggestion and conclusions
11
CHAPTER-II FUNCTIONS AND TRADE PRACTICES ON APMCs
INTRODUCTION
The functionaries have their own set up They may be individuals partners or
cooperatives who may buy and sell on ready and future basis at a price determined by
forces of supply and demand Each functionary renders some services in the process
of marketing and also earns a varying margin of profit for himself This procedure
makes marketing rather complicated and inflates the price of the produce The nature
of some of the agricultural products eg their bulk form and perishability and their
seasonal availability further add to the complexity of agricultural marketing
Farmers and the various functionaries working in market face numerous
problems in orange fruit trading Farmers either sell their produce to the pre-harvest
contractor before harvest or they sell it in the nearby Agricultural Produce Market
Committee
When the farmers sell their produce in the Agricultural Produce Market
Committee they face following problems
High commission charges
High transportation and loading and unloading charges
No guarantee of remunerative prices
Delayed payment by commission agents
Functionaries working in the market also face various problems The pre-
harvest contractors who purchase the fruits from the farmers face the problems while
dealing with the farmers These problems arise mainly due to
Lapses on the part of farmers in the management of garden resulting in
deterioration of quality of fruits
Problems of natural calamities (theft of fruits losses due to rains pest etc)
Problems of storage facilities (lack of cold storage at local place)
Packing problem (costly packing material and non-availability of skilled
labour)
12
Transport problems (high transportation cost and non-availability of transport
means in time)
Grading problems (non-availability of suitable mechanical graders)
The success or failure of any market depends upon the functionaries existing
in the market Hence the role of functionaries is very important in smooth conduct of
market functions
It is compulsory according to KAPM (R) Act 1966 for every functionary
functioning in the APMCs to take a valid license from the respective APMC where it
is established by paying the necessary fees to the APMCs
Description of Market Functionaries
Following is the list of important functionaries existing in different APMCs of
the study area
i) Commission agents ii) Traders
iii) Retail traders iv) Weighmen
v) Hamals vi) Lady hamals
vii) Transporters viii) Cartmen
ix) Brokers x) Exporters
xi) Importers xii) Processors
xiii) Ginners xiv) Pressors
xv) Crushers xvi) Stockiest
xvii) Warehousemen
It is very essential to understand each of these functionaries and their activities
in detail
i) Commission Agents
Commission agent means a person who in the ordinary course of business
makes or offers to make a purchase or sale of agricultural produce on behalf of the
owner or seller or purchaser of such agricultural produce for commission
13
Commission agents are called so because of the commission they take from
the traders on the total sales as fixed by the government They facilitate farmers to
sell the agricultural produce brought into market yard for a good price at an
appropriate time However as per the bye-laws of market committees some person
cannot act both as commission agent and trader
Commission agents are the connecting link between the farmers and the
buyers When the crop grown by the farmer enters the market it goes to the
systematically channalised commission agents
The agents help the market committee to classify the goods brought by the
farmers and getting them weighed by the specified weighmenThese agents sell the
goods in the market on behalf of farmers and if a farmer does not want to sell his
goods for the time being at the prevailing market price the agents stores the goods in
their godowns and takes the responsibility of preserving the goods These agents not
only help the buyers to get a variety of goods at a place but also help the farmers to
sell their goods effortlessly In the form of market fee the buyer has to pay 1 percent
of the sale price of goods which is collected by the agents and credited to the market
committee Agents also have the responsibility of crediting the total amount of the
sales to the farmers The agents enjoy the right to extract the full amount of the
produce from the buyers
ii) Traders
Trader means the person who buys notified agricultural produce either for
himself or as agent of one or more persons for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of domestic
consumption
The trader will fix a reasonable price for the farmers produce in consolation
with the commission agents and with the consent of the farmers they purchase the
produce and the full amount will be paid to the commission agents Sometimes the
traders buy the produce for their own business purposes or on behalf of big companies
or businessmen Under these circumstances the goods will be sent to the respective
people
14
iii) Retail Traders
Retail trader mean the person who holds in stock at a time not exceeding
fifteen quintals of two or more kinds of agricultural produce together or not
exceeding six quintals of a single agricultural produce
The major function of a retail trader is to undertake retail salesRetail sale
means the sale of notified agricultural produce to a consumer for domestic
consumption not exceeding such quantity as the market committee may by bye laws
or standing orders determine
Usually they buy agricultural produce from the market yard and sell it in retail
market established in cities They assist the small buyers in procuring the agricultural
produce in small quantities for the purpose of domestic use
iv) Weighmen
As their name itself suggests the weighmen supervise the weighment of the
agricultural produce entering into the APMC yard
Certain produce such as cotton get weighted as soon as they enter the market
yard while the rest of the produce are weighted after sales Under these
circumstances it becomes the duty of the weighmen to safeguard the interest of the
farmers and to see that there is no discrepancy in weighing their goods Day to day
report of the produce weighed along with their weighment slip has to be filed with the
market committee by the weighmen It is the duty of these weighmen to visit the
various shops in the market yard and to supervise the weighing of different goods
v) Hamals
In order to facilitate the smooth functioning of the various activities of the
marketing committee hamals perform a very special duty As these people perform a
strenuous physical work they are called hamals
The work of the hamals start with the produce entering into the market yard
and ends with the produce going out of the yard When the farmer brings his produce
15
into the market yard either by a cart tractor or by lorry the hamals unload the
produce at the commission agents shops If the produce is cotton the hamals get it
weighted immediately after unloading and if the produce are other than cotton they
are stored in the godowns of the commission agents On the day of the tender or
auction the samples of the various produce are kept aside by the hamals who help the
traders to fix a reasonable price for the produce After the completion of business
deals except cotton all other produce are weighed and loaded into the vehicles of the
traders To perform these various tasks the hamals charge the amount fixed by the
APMC and get it from the concerned parties
vi) Lady Hamals
The female hamals who are working in APMCs by procuring a valid license
are known as lady hamals Along with the male hamals lady hamals are also found
in some of the APMCs like Hubli Gadag and Ranebennur They perform activities
like screening cleaning assisting males hamals in weighment keeping samples for
tender etc
vii) Transporters
In the preview of market committee the people who help to transport the
goods from one place to another are called transporters The tractors and truckers are
performing the duties of transporters Transporters are considered to be the important
market functionaries working in APMC yard These peoples are helping the farmers
to bring the agricultural produce from the place of production or agricultural yard to
market yard Existence of large number of transporters in the market yard helps for
the smooth functioning of marketing activities
viii) Cartmen
Along with the modern transportation facilities such as trucks and autos still
cartmens are playing greater role for the smooth functioning of market activities
Loading and unloading of bags from trucks to godown and vice-versa are performing
by cartmens When the agricultural produce need to transfer from one place to another
place within the market yard is done by cartmen
16
ix) Brokers
Brokers are the agents middle menrsquos in the market working as link between
farmers and buyers In many ways brokers are assisting the farmers by giving
valuable advises with regard to financing of selling to get better prices At the same
time they also help by supplying bulk agriculture produce to buyer
x) Exporters
Exporter means the person other than a producer who exports goods or cause
goods to be exported on onesrsquo own account or as agent of another person from the
market area outside such area for the purpose of selling processing manufacturing or
for any other purpose except for the purpose of onersquos own domestic consumption
The meaning of exporter shall not include a public carrier
At times when there is a bumper crop the poor farmer has to incur heavy
losses During such moments of crisis the exporters come into the scene and purchase
the crops from the farmers and export the same to some other markets for sale or
processing This brings about a balance between the demand and supply and saves the
farmers from the crisis
xi) Importers
Importer means the person other than a producer who imports goods or causes
goods to be imported one onersquos own account or as agent of another person from the
outside market area with in the such area for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of onersquos own domestic
consumption The definition of importer shall not include a public carrier
Function of Importers
As and when there is scarcity of any goods in the market and there is a lot of
demand for the same and considering the overall demand and supply of the market
the importers import the goods from different markets and sell them in the local
market
17
xii) Processors
The goods purchased at the market yard have to undergo different stages and
processes to finally reach the customer In order to facilitate this work different people
perform their duties These people are called processors viz gins press
decorticators oil mills flour mills and dal mills etc these different industries perform
their own essential duties
These industrialists perform their duties to see that the goods available in the
market in their crude form are made ready for use After having purchased the goods
they make them ready for use with the help of these processors On certain occasions
the processors themselves purchase the goods process them and self them when they
are ready for use These processors also should have the license from the market
committee
xiii) Ginners
They are the licensed functionaries who are performing ginning activities of
cotton by procuring valid license from APMCs The purchasers of cotton want to
convert their unginned cotton into ginned cotton In such case ginners will help them
to gin their cotton and separate pure cotton from cotton seeds
xiv) Pressors
Once the cotton is ginned it will come to pressors for conversion into cotton
bales where licensed pressors undertake the work of pressing In order to transport
the cotton from the place of growing and marketing to textile mills at different places
they have to be systematically packed in compact form of cotton bails The ginned
cotton will come to press of the pressors where they press and pack it properly into
cotton bales
xv) Crushers
There are certain licensed crushers who perform the activity of crushing oils
seeds into oil The traders who buy oil seeds from the market wants to convert it into
oil for further marketing and transportation In such case crushers situated near the
various market yards will help them to get pure oil by getting their seeds crushed and
screened at their crushing units
18
xvi) Stockiest
The people who purchase the produce at the market yard and store it for some
time and then sell it are called stockiest The stockiest also should have license
When all the farmers bring their produce to the market yard there will be glut in the
market supply and deficiency of the purchasers which cause the prices to come down
Under these circumstances to protect the farmer from the loss the stockiest purchases
the goods at the market yard and stock it in their storehouse to sell them when there is
a demand for that commodity
xvii) Warehousemen
The farmers are provided with the warehouses to store the produce which
come under the jurisdiction of the market committee ldquoWarehouserdquo means any
building structure or other protected enclosure which is or may be used for the
purpose of storing agricultural produce being goods on behalf of the depositors but
does not include cloak rooms attached to hotels railway stations the premises of
other public carriers and the life The person who supervises the warehouse activities
is called warehouseman
A farmer may not want to sell his produce because of the fall in the prices or
may want to store the goods for the purpose of sowing but does not have enough
space to store Having realized this problem of the farmers the government has
provided the warehouses in all the important market yards so that the farmers can
store their goods as long as they want to
The main task of the warehousemen is to stock the goods of the farmers
properly by sprinkling pesticides and protecting them from the insects and pests and
to return the goods of the farmers to them when they ask for it While performing this
task the warehousemen charges certain amount which is specified by the
government The farmer has to pay the amount towards stocking of his goods
In this way for the smooth sailing of the market committees activities each
and every market functionary has to perform his duties systemically
19
Market Functionaries in Selected Market An Overview
In all the selected APMC for the present research work ie 15 APMC there
were 26194 market functionaries operating in various markets of this division The
district wise and sample wise break up of the same is revealed in the tables from 21
to 25
As on the 2007-98 the total of local market participant in three APMC taken
for the present research is Gulbarga-5099 Bidar-2790 Koppal-5234 Raichur-7182
and Bellary-5889 There are 2046 lsquoArsquo class traders 1786 lsquoBrsquo class traders 1410 lsquoCrsquo
class traders 6920 lsquoDrsquo class traders 2794 commission agents 1496 exporters 1526
importers 676 stockiest 358 processors 172 crushers 203 ginners 28 pressers 29
warehousemen and 10775 hamals operating in the various markets in the Gulbarga
division The highest number of traders commission agents and other functionaries
are in Raichur district Bellary district followed by Gulbarga district being nearly 13
of the total number in the division
Market Functionaries at Selected APMC in Gulbarga District
Gulbarga APMC is a very big APMC in the Gulbarga district as compared
with other APMC in the same district Table 41 explains the total market
functionaries working in the not only Gulbarga APMC but also APMC Shorapur and
APMC Shahapur It is far as size is considered APMC Shahapur is a small APMC in
the Gulbarga district
The below Table 21 reveals that the total number of market functionaries
which was 3536 in 2009-10 in Gulbarga APMC has increased by around 124 percent
in 2013-14 It is evident from the same that coolies traders exporters importers and
processors holding maximum share in total market functionaries in the total
participants in the market
In case of the APMC Shorapur the total position of market participant was
gradually increased during first three years ie from 576 in 2009-10 to 845 in 2010-
11 and 910 in 2011-12 but it decreased to 845 in 2012-13 Again coolies and traders
were become the major portion in total market participants followed by commission
agents and retailers
20
Table-21
Licensed Market Participants in Selected APMCs of Gulbarga District
Sl No Market Participant
APMC Gulbarga APMC Shorapur APMC Shahapur
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 407 419 418 405 426 60 203 254 178 180 37 60 51 46 128
2 Commission agents 227 235 234 213 218 45 58 64 58 69 17 17 17 17 22
3 Exporters 419 424 424 411 416 10 32 11 03 03 28 35 32 25 130
4 Importers 405 411 409 391 396 08 24 09 02 02 25 30 38 25 126
5 Retailers 105 108 108 94 106 25 76 26 02 02 20 32 30 23 51
6 Processors 350 358 356 341 348 01 02 02 01 01 01 01 01 01 10
7 Ginners 14 15 15 15 16 01 02 01 01 01 01 01 01 01 05
8 Pressers 04 04 04 04 04 03 04 02 01 01 02 02 02 02 05
9 Stockiest 28 30 30 25 28 14 42 16 01 01 10 15 12 10 15
10 Weighmen 75 78 77 75 75 13 14 14 14 14 02 02 02 02 05
11 Crushers 15 18 18 18 18 03 05 04 01 01 02 02 02 02 06
12 Warehousemen 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01
13 Coolies 1444 1545 1540 1476 1485 378 373 496 571 560 75 92 99 99 110
14 Transporters 42 54 52 41 43 08 09 10 11 11 28 33 33 18 58
Total 3536 3700 3686 3510 3580 576 845 910 845 847 249 323 321 272 672 Source Annual reports of APMC for 2009-10 to 2013-14
21
The situation in APMC Shahapur was not much different when it compared to
APMC Gulbarga and APMC Shorapur A steady growth in total market participants
was registered in 2013-14 ie 672 with annual aggregate growth of 3398 percent
during the period under research Traders commission agents and coolies were
acquired majority position in total market functionaries
The below Table 22 depicts the total licensed market participants operating in
the selected APMCs of Bidar district A keen observation of year wise growth in the
various categories of market participants shows that coolies are steadily increased in
APMC Bidar from 68 in 2009-10 to 140 in 2013-14 In APMC Bhalki it was from 49
in 2009-10 to 56 and in APMC Aurad from 19 to 34 during the same period
It is interesting to note in Bidar APMC that stockiest were the dominant
portion in total market functionaries followed by experts commission agents and
importers The same situation was also found in other five APMCs ie Bhalki and
Aurad which are taken as sample from the Bidar district The percentage of stockiest
as on 2013-14 in total market participant was in Bidar APMC 1694 Bhalki APMC
ndash 1850 and 1859 in APMC Aurad
22
Table-22
Licensed Market Participants in Selected APMCs of Bidar District
Sl No
Market Participant
APMC Bidar APMC Bhalki APMC Aurad
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 171 182 195 186 196 151 153 146 156 160 110 115 128 138 142
2 Commission agents
145 151 180 175 190 136 139 145 150 156 102 112 115 128 132
3 Exporters 150 162 175 12 172 139 141 148 151 155 89 95 98 108 112
4 Importers 141 145 161 152 162 120 122 126 120 122 85 92 95 98 104
5 Retailers 10 15 28 25 35 05 06 09 10 10 03 04 06 08 08
6 Processors 03 04 04 03 04 02 02 02 02 02 01 01 01 01 01
7 Ginners 02 02 02 02 02 01 01 01 01 01 01 01 01 01 01
8 Pressers 01 01 01 01 01 01 01 01 02 01 01 01 01 01 01
9 Stockiest 193 198 220 205 215 150 151 154 155 161 106 112 115 119 123
10 Weighmen 33 42 55 52 65 23 24 26 28 30 13 15 21 28 30
11 Crushers 02 02 03 02 03 01 01 01 01 01 01 01 01 01 01
12 Warehousemen 01 01 01 01 02 01 01 01 01 01 01 01 01 01 01
13 Coolies 68 70 110 110 140 49 50 52 57 56 19 24 30 35 37
14 Transporters 10 05 15 24 23 08 08 09 13 13 04 06 08 12 17
Total 930 980 1150 1100 1210 787 800 821 846 870 536 580 621 687 710 Source Annual reports of APMC for 2009-10 to 2013-14
23
The overall growth in the market participants in Bidar district from the same
table reveals that the annual aggregate growth in APMC Bidar was highest ie 602
percent over the previous year it was 210 percent in APMC Bhalki and 649 percent
in APMC Aurad This clearly indicates that APMC Aurad is fast growing APMC in
terms of market functionaries followed by APMC Bidar and APMC Bhalki
A cursory look at the below Table 43 reveals that coolies traders
commission agents and importers are the major category of market functionaries
operating in the selected APMCs in the Koppal district during five years study period
ie 2009-10 to 2013-14 are presented in Table 23 The total number of market
functionaries in APMC Koppal which was 1054 in 2009-10 increased to 1186 in
2013-14 with percentage growth of 1188 during period under study In case of
APMC Gangavati it was 1034 percent negative and in APMC Kustagi positive
growth of 1752 percent during the same period The number of traders increased
marginally during the study period but the number of commission agents was
marginally decreased in all the three APMC selected from the Koppal district as
sample the other market functionaries increased in large numbers thus making the
proportion at commission agents to drop A broad view of licensed market
functionaries in selected APMC in Koppal depicts that APMC Gangavati was leading
APMC in terms of total market participants followed by APMC Koppal and APMC
Kustagi during five years plan period
24
Table-23
Licensed Market Participants in Selected APMCs of Koppal District
Sl No Market Participant
APMC Koppal APMC Gangavati APMC Kustagi
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 115 108 127 116 144 518 480 456 479 497 106 95 103 63 88
2 Commission agents 102 107 90 98 107 468 417 360 380 387 141 139 142 124 153
3 Exporters 95 123 92 115 105 511 480 455 489 495 90 77 80 46 65
4 Importers 123 146 120 122 103 598 479 455 488 496 17 12 13 08 64
5 Retailers 15 22 14 15 14 124 98 72 90 87 11 11 14 11 -
6 Processors 04 05 04 05 06 95 91 87 90 97 02 02 02 02 02
7 Ginners 02 02 02 02 02 - 02 - - - - - - - -
8 Pressers 02 02 02 02 02 - - - - - - - - - -
9 Stockiest 60 179 58 70 65 518 480 453 488 495 52 52 63 - -
10 Weighmen 10 15 09 08 10 03 03 04 04 03 06 06 06 06 06
11 Crushers 05 11 05 06 08 04 01 02 02 02 03 03 02 02 -
12 Warehousemen 02 04 02 03 04 02 02 02 02 02 01 01 01 01 01
13 Coolies 452 502 450 544 535 553 370 324 393 417 372 363 345 273 468
14 Transporters 067 118 59 33 36 26 13 16 15 14 04 05 03 02 02
15 Temporary purchasers - - - - - - - - - - 45 41 - - 150
Total 1054 1344 1034 1139 1186 3423 3001 2784 2995 3069 850 807 774 538 999 Source Annual reports of APMC for 2009-10 to 2013-14
25
Table 24 shows the year wise actual market participants who were licensed to
operate in the market yard during 2009-10 to 2013-14 in the selected APMC for the
sample in the Raichur district The total market functionaries in the APMC Raichur
decreased during the second year ie 2010-11 from 3622 to 3407 The average
decrease during the research period was 228 percent This was due to decrease in the
traders as well as coolies
When we observed market functionaries cooperation in the APMC Sindnoor
if was little different situation when it compared to APMC Raichur The total market
participants were shown an increasing trend except in the year 2010-11 it was
decreased from 2193 in 2009-10 to 1852 The overall growth in the market
functionaries during five years research period was 2782 percent which was a good
sign compared to APMC Raichur This growth indicates the growth of agriculture
marketing in APMC Sindnoor yard From the same table it can also be seen that
during 2010-11 and 2011-12 the total licensed market participants in APMC
Lingasugur were decreased but again during last two years of study period it shown
upward trend From these above analysis it can be said that APMC Sindnoor and
APMC Lingasugur were performed better during the plan period as compared to
APMC Raichur
26
Table-24
Licensed Market Participants in Selected APMCs of Raichur District
Sl No Market Participant
APMC Raichur APMC Sindnoor APMC Lingasuguar
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 409 422 431 403 415 312 260 304 305 304 104 99 88 106 115
2 Commission agents 216 214 222 224 218 317 265 280 288 279 83 92 81 101 100
3 Exporters 382 381 401 416 401 288 256 301 308 307 97 77 71 103 105
4 Importers 377 392 420 400 410 288 256 273 276 269 77 79 71 103 110
5 Retailers 22 23 206 - - NA NA NA NA NA 20 18 18 16 16
6 Processors 57 55 63 65 401 14 17 20 19 17 05 06 06 04 04
7 Ginners 10 16 16 15 16 01 01 01 01 - - - - - -
8 Pressers 05 05 04 03 04 01 01 01 01 01 05 04 04 04 04
9 Stockiest 388 377 398 409 19 289 257 300 308 293 75 94 81 106 110
10 Weighmen 89 89 87 87 87 16 16 16 15 14 14 14 14 14 14
11 Crushers 18 26 24 20 19 02 02 01 01 - - - - - -
12 Warehousemen 02 02 02 02 02 07 05 06 07 06 01 01 01 01 01
13 Coolies 1591 1357 1354 1434 1478 634 516 856 1286 1313 40 02 08 Nil 79
14 Transporters 46 48 44 42 50 24 - - - - 10 08 08 04 Nil
Total 3622 3407 3672 3520 3520 2193 1852 2359 2815 2803 531 494 451 562 859 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
27
Table 25 indicates the trends in the growth of total licensed market
functionaries who were operating during the period under consideration in the
selected APMCs in the Bellary district A comparative study of three APMCs selected
in Bellary district shown in the table 25 indicates that APMC Bellary has the largest
market functionary followed by APMC Hospet and APMC Siraguppa The total
market participants in APMC Bellary was ranged in between 3235 to 3865 in APMC
Hospet it was between 738 to 1481 and in APMC Siraguppa between 659 to 1007
The study of individual market participants in total market participants in selected
APMCs in Bellary district was also clearly shown that coolies were occupied the
major percentage in total followed by exporters importers and traders during the plan
period From the above analysis it was clear to conclude that district APMC ie
Bellary APMC was fully developing in terms of increase in market functionaries but
effort is needed from the officials of APMC in Hospet and Siraguppa to take some
measures to increase the market functionaries for the smooth running of marketing
activities in the yard
28
Table-25
Licensed Market Participants in Selected APMCs of Bellary District
Sl No Market Participant
APMC Bellary APMC Hospet APMC Siraguppa
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 435 441 538 462 485 121 123 136 150 141 115 120 146 176 198
2 Commission agents 352 368 448 382 371 75 77 84 103 88 10 10 12 09 08
3 Exporters 412 437 531 452 484 121 123 136 150 141 120 120 147 177 198
4 Importers 415 430 527 442 473 121 123 136 150 141 120 120 147 177 198
5 Retailers 102 115 101 120 95 76 74 93 95 95 - - - - -
6 Processors 45 45 47 45 55 26 24 24 23 24 42 43 46 45 59
7 Ginners 26 27 29 25 17 - - 27 24 24 - - - - -
8 Pressers 20 20 22 20 09 NA NA NA NA NA - - - - -
9 Stockiest 420 430 518 421 463 120 123 136 150 141 130 134 159 178 198
10 Weighmen 16 16 16 16 16 03 03 04 04 04 - - - - -
11 Crushers 26 26 26 25 18 04 02 02 02 02 - - - - -
12 Warehousemen 01 01 01 01 01 02 02 02 02 02 02 02 03 03 03
13 Coolies 920 902 1018 1213 910 262 173 373 429 668 120 128 237 145 145
14 Transporters 45 48 43 02 04 14 14 12 14 10 0 0 0 0 0
Total 3235 3306 3865 3626 3401 945 738 1165 1193 1481 659 677 897 910 1007 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
29
Sample size
The main refrain of this part of research study is the detailed analysis of the
primary data collected from the respondents ie market participants from APMC
about marketing services provided by the APMCs in five districts of Gulbarga
division Three APMCs from each district on the basis their performance ie best
performer average performer and low performer taken for the study The details of
the responses obtained on various services offered at APMCs yard and their level of
satisfaction towards it in the light of the statistical data obtained through the
questionnaires addressed to market participants such as commission agents hamals
traders graders etc are shown in the following part
The deep analysis of the responses from the sample size of market participants
has provided good insight into the dimensions of the marketing services and the
quality of those services rendered to the farmers seller of agriculture produce The
analysis has been done with necessary theoretical backs drops of each of the services
related to the marketing activities in the APMC yard
Table-26
District Wise Sample Size of Market Participants
Name of District Frequency Percentage Cumulative Percentage
Bidar 25 2000 2000
Gulbarga 25 2000 4000
Koppal 25 2000 6000
Raichur 25 2000 8000
Bellary 25 2000 10000
Total 125 10000 -
Source Field survey
Table 26 provides the information about the district wise frequency of sample
chosen for the present study The total sample for the study was 125 market
participants Gulbarga division constitutes of five districts from each districts 25
respondents were selected
30
Profile of Market Participant
An attempt has also been made in this part to study the socio-economic and
demographic factors of the market participants in order to examine the significant
relationship if any exist in between their profile and performance
Age Group
The age composition of the various market participants covered in the study
areas reveals some significant trends The details of the age of respondents of district
wise are provided in the following table
Table-27
Age Wise Classification of Market Participant
Sl No Name of APMC
Age of Respondent (in years) Total Below
20 21 ndash 40 41 ndash 60 60 and
above 1 Gulbarga - 18
(720) 6
(240) 01
(40) 25
(200) 2 Bidar - 18
(720) 6
(240) 01
(40) 25
(200) 3 Koppal - 18
(720) 5
(200) 01
(40) 25
(200) 4 Raichur - 18
(720) 6
(240) 02
(40) 25
(200) 5 Bellary - 18
(720) 7
(280) 01
(40) 25
(200) Total 000
(000) 90
(720) 29
(232) 06
(46) 125
(100) Source Field study Note Figures in brackets indicates percentage to total It is evident from the Table 27 that more than 34th of the total respondents
from market participants ie 90 belonged to the age group of 21- 40 years 232
of respondents belonged to the age group of 4160 years while smaller number of ie
of respondents which constitutes 48 of total respondents are in the age group of 61
years and above It is revealing to note that no number respondents Out of total 125
respondents belonged to below 20 years of age group
31
Status of Educational Qualification
The data collected through personal interview with regarding education
qualification of all market participants operating in the APMC in Gulbarga division
has provided Some useful details about their educational status which is considered
to be most significant factor in discharging their duties and responsibilities more
efficiently and effectively The detail of educational qualifications of sample group of
market participants is shown in below Table 28
Table-28
Qualification Wise Classification of Market Participant
Sl No Name of APMC
Educational Qualification Total Below
Primary Secondary Degree PG and
others
1 Gulbarga 01 (40)
11 (440)
03 (120)
10 (400)
25 (200)
2 Bidar 01 (40)
09 (360)
03 (120)
12 (480)
25 (200)
3 Koppal 01 (40)
10 (400)
03 (120)
11 (440)
25 (200)
4 Raichur 01 (40)
09 (360)
02 (80)
13 (520)
25 (200)
5 Bellary 02 (80)
11 (440)
04 (160)
08 (320)
25 (200)
Total 06 (48)
50 (400)
15 (120)
54 (432)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total It is learnt from the above Table 28 that 432 of respondents were post
graduates and other technical qualifications such ITI and other diploma qualifications
40 of the sample respondents were qualified upto higher secondary followed 12 of
respondents were graduates Only 6 were belonged to the primary category It is
however significant to note that higher secondary education and other technical
education qualification holders were majority in total sample size ie 40 to 432
as compared to degree holders ie only 12 of sample size
32
Religious Composition of Sample
Religion of respondents is more dominating factor in occupation for their
livelihood Researcher has also tried to accumulate the data about the religion of
respondents through interview schedule In the present study respondents religion was
broadly classified in 4 category ie Hindu Muslim Christian and others
Table-29
Religion Wise Classification of Marketing Participant
Sl No Name of APMC
Religion Total
Hindu Muslim Christian Others
1 Gulbarga 22 (880)
02 (80)
01 (40)
- 25 (200)
2 Bidar 22 (880)
03 (120)
- - 25 (200)
3 Koppal 21 (840)
04 (160)
- - 25 (200)
4 Raichur 21 (840)
04 (160)
- - 25 (200)
5 Bellary 23 (920)
01 (40)
01 (40)
- 25 (200)
Total 109 (872)
14 (172)
02 (060)
00 (000)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total
From the above Table 29 it is clear that majority ie 872 of total sample
size operating in study area of Gulbarga division belonged to Hindu religion followed
by Muslim religion ie 112 of sample group This is in conformity with the pre
dominantly Hindu dominant population composition of the area as compared to
Muslim religion If can be interpreted from the above that sample size comprised of
minor number ie 160 of respondents belonged to the Christian religion
33
NATURE OF PARTICIPANTS
The success or failure of any market depends upon the functionaries existing
in the market Hence the active participation of all types of functionaries is very
important in smooth conduct of market functions In order to facilitate for smooth
marketing of agriculture commodities each and every market is provided with
different market functionaries It is compulsory according to KAPM (R) Act 1966 for
every functionary functioning in the APMCs to take a valid licence from respective
APMC by paying necessary fees An analytical account of the market functionaries
operating in different selected markets are given in Table 210
Table-210
Nature of Participant
Sl No
Name of participant
Name of APMC Total
Gulbarga Bidar Koppal Raichur Bellary
1 Commission Agent
11
09
08
10
12
50 (400)
2 Hamalas 04
03
04 05 04 20 (160)
3 Trader 07 08 08 06 06 35 (2800)
4 Grader 01 01 01 01 01 5 (400)
5 Processor - 01 01 01 - 3 (240)
6 Broker 01 03 03 02 01 10 (80)
7 Others 01 - - - 01 02 (160)
Total 25 (200)
25 (200)
25 (200)
25 (200)
25 (200)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
A cursory look at the Table 210 reveals that commission agents traders and
hamals are the major market functionaries in the market Out of total 125 participants
34
respondents 40 percent were playing the role of commission agents 28 percent of
them were acting as traders and hamals constitute 16 percent The percentage of
broker grader and processor in selected sample size was 8 4 percent and 24
percent respectively The above figures shows whose role very important in market
place
Experience in Market Yard
Market participants experience in the market yard will helps to understand the
level of their satisfaction with regard to the economic benefit from the job and their
attitude towards it Satisfied market participant in APMC will strict to a single job for
a long period The details of their years of experience in market yard in the area
under study of sample size is given in the below table
Table-211
Years of Experience in Market Yard
Sl No Particulars
Experience in Market Yard
Below 10 11 ndash 20 21 ndash 30 30 and above Total
1 Gulbarga 02 18 03 02 25 (200)
2 Bidar 01 17 04 02 25 (200)
3 Koppal 01 21 03 - 25 (200)
4 Raichur 02 18 04 01 25 (200)
5 Bellary 02 22 01 01 25 (200)
Total 8 (64)
96 (768)
15 (120)
6 (48)
125 (10000)
Source Field survey Note Figures in brackets indicates percentage to total
Table 211 exhibits the experience of the respondents in the market yard of
125 market yard of 125 market participant respondents Out of total sample size
768 are laying in between 11-20 years of experience in the market yard 15
35
respondents which constitute 12 of sample group had an experience of 21-30 years
in the market yard Below 10 years and above 30 years of experience in market yard
of respondents were 64 and 48 of sample respondents Finally to conclude about
the market yard experience old market participant were high in number as compared
to the new market participants ie less than 10 years of experience in market yard
Motivational Factors ndash Sample Study
The word lsquomotivationrsquo comes from the Latin meaning ldquoTo moverdquo it generally
means an inner or outer drive to meet a need or a good This is the impelling force
which draws the human from his house and inspires her to start something on his own
The variables comprise of heredity more profitable uncertain induced
unemployment and others Accordingly by incorporating the above the researcher
has asked the respondents to rank the motives of their present profession Their
responses were presented in the following table
Table-212
Motivated Factors of Profession
Sl No Particulars
Motivated Factors Total
Heredity More Profitable
Uncertain Induced
Un Employment Others
1 Gulbarga 22 - 02 01 - 25 (200)
2 Bidar 16 03 06 - - 25 (200)
3 Koppal 18 03 03 01 - 25 (200)
4 Raichur 22 01 02 - - 25 (200)
5 Bellary 23 01 01 - - 25 (200)
Total 101 (808)
8 (64)
14 (112)
2 (16)
00 (00)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total It is evident from the Table 212 that heredity was the most dominant motive
with 8080 of sample size This group distinctively falls under ldquopushrdquo category of
profession who resorted to this profession because of same compulsions This
compulsion cited were death of Kartha to supplement meager income at home etc
36
This way followed by uncertain induced with a percentage of 1120 of
sample size The respondents quoted few reasons for choosing their profession such
as poverty no alternative jobs to do and lower education etc 64 of total
respondents opinioned that they were chosen this profession because of more
profitable
Satisfaction with Marketing Practices
In the process of marketing there are three dimensions these are time space
and form The marketing function is having a one or the combination of these three
dimensions While performing these functions the different functionaries are rewarded
for their services at every level The marketing cost the market margins and the
competition in the market is different to product to product Similarly the market
functions very from product to product for example the marketing of grains are
having different functions than that of the marketing of vegetables Respondentrsquos
satisfaction level towards these marketing practices are shown in below table
Table-213
Satisfaction of Marketing Practices
Sl No Particulars Level of Satisfaction
Total Satisfied Unsatisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 24 (960)
01 (40)
25 (200)
4 Raichur 24 (960)
01 (40)
25 (200)
5 Bellary 23 (920)
02 (80)
25 (200)
Total 118 (944)
7 (56)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
37
Table 213 shows the district wise market participant respondents level of
satisfaction towards marketing practices It could be seen from the above table that
more than 94 of respondents are of the opinion that the quality of marketing
practices practiced in the APMC yard is fully satisfied and rest of respondents ie 56
percent were fully expressed that the marketing practices are unsatisfied
The level of satisfaction in Gulbarga district APMC Koppal district APMC
and Raichur district APMC was above 96 but it was 9200 in Bidar and Bellary
From the above opinion and analysis of responses it can be concluded that few steps
are necessary to take by APMCs to make 100 satisfaction in for marketing
practices
Farmerrsquos Activeness
Market participants were interviewed with an intension to extract their level of
satisfaction in the farmerrsquos activeness in the APMC yard in selected units
Respondents are given two option regarding farmers active involvement in marketing
of their produce ie satisfied or unsatisfied The results of the investigation are
presented in Table 214
Table-214
Satisfaction with Farmers Activeness in APMC
Sl No Particulars Satisfaction with Farmers
Total Satisfied Unsatisfied
1 Bidar 13 (520)
12 (480)
25 (200)
2 Gulbarga 18 (720)
07 (280)
25 (200)
3 Koppal 10 (400)
15 (600)
25 (200)
4 Bellary 21 (840)
04 (160)
25 (200)
5 Raichur 15 (600)
10 (400)
25 (200)
Total 77 (616)
48 (384)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
38
Table 214 gives the respondents level of satisfaction with the farmerrsquos
activeness in marketing activities in APMC yard More than 61 of market
participant respondents fully satisfied with farmers activeness but 38 of them are
fully unsatisfied and suggested to participate actively in marketing activities Few
number of farmers physically visiting and actively involved during the sale of their
produce An awareness programme from APMC is very necessary to help farmers and
to motivate them to involve in marketing activities
Facilities at APMC
Basic infrastructure at APMC yard is very much essential for smooth
functioning of marketing activities The selected APMC for present study has
provided necessary facilities such as water canteen communication transport and
banking and finance etc to the market participants But all the participants
respondents are unable to get those facilities The percentage of functionary
respondents who have availed these facilities and those who have deprived of the
facilities are given in the Table 215
Table-215
Facilities at the APMC Yard
Sl No
Facilities at APMC
Name of District Total Gulbarga Bidar Koppal Raichur Bellary 1 Water 20
(1886) 19
(1792) 22
(2075) 23
(2169) 22
(2075) 106
(848) 2 Canteen 14
(2121) 13
(1969) 12
(1818) 11
(1667) 16
(2424) 66
(528) 3 Communication 24
(2264) 21
(1981) 20
(1886) 22
(2075) 19
(1792) 106
(848) 4 Market
information 22
(2075) 20
(1886) 19
(1792) 24
(2264) 21
(1981) 106
(848) 5 Transport - - - - - - 6 Health and
sanitation 11
(2291) 09
(1875) 08
(1667) 10
(2083) 10
(2083) 48
(384) 7 Banking and
Finance - - - - - -
8 Others - - - - - - Total 125
(1000) Source Field survey Note Figures in brackets indicates percentage to total
39
A glance over the above Table 215 reveals the various facilities provided at
APMC yard in selected sample size More than 84 of functionary respondents
opinioned positively about water facility 52 of them about canteen 38 about
health and sanitation etc It is to be noted here that no single APMC has provided
transportation facilities and banking and finance which is very vital in marketing
Satisfaction about Facilities
APMCs have provided several infrastructure facilities to market participants
These facilities provided by APMC to market functionaries helps them to provide
good services to farmers efficiently
Table-216
Level of Satisfaction about the Facilities
Sl No Name of the District
Level of Satisfaction Total
Fully Satisfied Not Satisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 23 (920)
02 (80)
25 (200)
4 Raichur 21 (840)
04 (160)
25 (200)
5 Bellary 21 (840)
04 (160)
25 (200)
Total 112 (896)
13 (104)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
It is observed from the Table 216 that a large number of market participants
(ie 896) were fully satisfied with the infrastructure facilities available inside the
market yard Nearly 104 percent expressed their dissatisfaction over the facilities
provided by APMCs Gulbarga APMC was considered to be better (9600) in
facilities as compared with other four districts selected for the present study Raichur
40
and Bellary districts APMCs had needed more important in terms of facility to satisfy
market functionaries Market participants are directed to fallow the specified
techniques These techniques are prescribed by the Indian standards institute The
techniques suggests to use proper ingredients in specified proportions The graded
processed goods bear ISI label indicating that it contained the graded and good quality
if the product The selected market participants were also asked about the quality of
marketing functions The analysis of Table 217 revel that more than 76 of
respondents had satisfied the quality of marketing function in five districts whereas
more than 20 of them not satisfied with quality of services in the market yard
41
Table-217
Level of Satisfaction with Quality of Marketing Services
Quality of Services
Gulbarga Bidar Koppal Racihur Bellary Total Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Assembling 19 06 19 6 21 4 19 06 19 06 125
(100) Processing 22 03 22 03 23 02 22 03 22 03 125
(100) Grading 15 10 16 09 14 11 15 10 15 10 125
(100) Storing - 25 - 25 - 25 - 25 - 25 125
(100) Weighment 12 14 10 13 11 12 14 14 13 15 125
(100) Banking and finance
04 21 03 22 02 23 04 21 04 21 125 (100)
Rest house 02 23 01 24 02 23 02 23 03 22 125 (100)
Insurance - 25 - 25 - 25 - 25 - 25 125 (100)
Source Field survey Note Figures in brackets indicates percentage to total
42
CHAPTER-III CUSTOMER PERCEPTION ABOUT MARKETING
MANAGEMENT OF APMC IN GULBARGA DIVISION
INTRODUCTION
In keeping with very little of the research the survey is conducted to
supplement the evaluation through the primary data These attempts bring out the
basic problems and difficulties if any in the implementation of the APMCs Act
through state agricultural marketing board Different types of schedules are used for
evaluating the working of the APMC act However the agricultural marketing is
clearing a midwife between agricultural production and agricultural marketing on the
one hand and the former beneficiaries on the other hand But the farmers might have
direct link what so ever with marketing agencies therefore a schedule for the farmers
which has been different from what we have used for market participants As such the
marketing participant of the agriculture market are the main pillars for
implementation of the schedule The questionnaire has been personally given to
farmers of the sample groups and the researcher had a detailed personal discussion
with the market participants with regard to working or agriculture marketing The
main focus of the study was evaluation of management of agricultural produce
marketing committees in Karnataka from the point of farmers therefore our survey
schedule covers the background of farmers and market functionaries such as age
education religion family background source of incomes land holdings of both
farmers and market participant were collected Some of these aspects have been
discussed in the following paragraphs
43
Table-31
District Wise Selection of Farmers Sample Size
Name of the District Frequency Percentage Cumulative
Percentage
Gulbarga 50 200 200
Bidar 47 188 388
Koppal 49 196 584
Raichur 52 208 792
Bellary 52 208 1000
Total 250 1000 -
Source Field survey
Table 35 provides the information about the district wise selection of member
farmers which have been chosen for the present study The total sample size for the
study was 250 farmers Raichur and Bellary district form 2080 percent each and
Gulbarga district form 2000 percent and Bidar and Koppal district 188 percent and
196 respectively The member of farmers selected for the purpose of was equally
distributed to all five districts with little change in percentage The reason for that is to
identify the district among the five districts where APMCs are working upto the
aspirants of farmers
44
Table-32
Age Wise Classification of Agriculturist
APMCs District
Age in Years Total
Below 20 20 ndash 40 41 ndash 60 61 and above
Bidar 01 22 21 03 47 (186)
Gulbarga 01 23 23 03 50 (200)
Koppal 01 23 22 03 49 (196)
Raichur 01 24 24 03 52 (208)
Bellary 02 24 24 02 52 (208)
Total 06 (240)
116 (4640)
114 (4560)
14 (56)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It could be found from the Table 32 that 4640 percent of farmer respondents
were aged between 20-40 years 45-60 percent in between 41-60 years and 5-6
percent above 61 years Only 240 percent of total sample size were aged below 20
years The above figures about the age of agriculturists cleared that young and middle
aged formers are more actively participated in the APMC yard when compared to old
age farmers
Educational Qualification of Farmers
The level of the education of the farmers is one of the most important factor
which governs many more factors such as deciding the cropping pattern crop
rotation use of different inputs in farming optimum time of cultural practices and
where to sell the agricultural produce The following table shows the educational
qualifications of the farmer respondents
45
Table-33
Education Wise Classification of Respondents
Name of the APMCs
Educational Qualification
Total Literate Illiterate
Primary Secondary Degree PG and Others
Gulbarga 25 (500)
15 (300)
4 (80)
02 (40)
4 (80)
50 (200)
Bidar 23 (4894)
15 (3191)
03 (638)
02 (425)
4 (852)
47 (188)
Koppal 25 (5102)
16 (3265)
03 (612)
- (00)
5 (1021)
49 (196)
Raichur 26 (500)
16 (3076)
03 (576)
03 (576)
4 (772)
52 (206)
Bellary 28 (5385)
16 (3076)
03 (576)
- (00)
5 (963)
52 (208)
Total 127 (5080)
78 (3120)
16 (640)
07 (280)
22 (880)
250 (100)
Source Field study
Note Figures in bracket indicates percentage to total
From the above Table 33 it could be seen that out of the total 250 farmers
respondents selected for the present study 5080 percent of them are having primary
level of education 3120 percent of them have studied upto secondary Only 640
percent of total sample size possessed graduate level education followed by 280
percent post graduate and other qualification The illiterate percentage of respondents
total sample size is 880
Sources of Incomes
There are different sources of incomes available to farmers such as agriculture
income business self employment and employment in other organizations
Agriculture income is considered as major source of income to them and other
sources of incomes are secondary importance The details of their sources of incomes
along with agriculture incomes is shown in the table below
46
Table-34
Sources of Income of Respondents
Sl No
Name of the Market
Source of Income Total
Agriculture Business Employment Others
1 Gulbarga 40 (800)
6 (120)
2 (40)
2 (40)
50 (200)
2 Bidar 38 (8085)
5 (1063)
2 (1425)
2 (427)
47 (188)
3 Koppal 39 (7959)
5 (1020)
2 (408)
3 (613)
49 (196)
4 Raichur 42 (8076)
6 (1154)
3 (576)
1 (194)
52 (208)
5 Bellary 42 (8076)
6 (1154)
2 (385)
2 (385)
52 (208)
Total 201 (8040)
28 (1120)
11 (440)
10 (40)
250 (1000)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 34 that 8040 of respondents were having
agriculture income and 1120 percent had business income followed by 440 percent
and 40 percent of respondents from employment and other sources respectively This
will clearly indicates the much dependency of farmer respondents on agriculture for
income to meet the cost of livelihood This fact was same in five districts selected for
the study
Annual Gross Income
The farmers are getting incomes not only from agriculture but also from the
other sources discussed in previous table The gross annual income of the farmers
itself indicates the standard of living and their life style As far as in other farmers are
concerned they fully depend on agriculture for their livelihood Due to uncertainty in
agricultural production their annual income is getting fluctuation which results suicide
of many farmers in Karnataka
47
One side no guaranteed regular income and the other side rise in prices of
consumable goods forced them for borrowing money from outside to meet cost of
living and agricultural expense The researcher collected information about annual
gross income of respondents and shown in below table
Table-35
Annual Gross Income of Respondents
Sl No Annual income (Rs) Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 50000 to 150000 8 (160)
8 (1702)
8 (1632)
9 (1731)
9 (1730)
42 (166)
2 150001 to 250000 18 (360)
17 (3617)
17 (3469)
19 (3654)
18 (3462)
89 (356)
3 250001 to 350000 14 (280)
13 (2766)
14 (2857)
15 (2885)
15 (2885)
71 (289)
4 350001 to 45000 5 (100)
5 (1063)
5 (1022)
5 (962)
6 (1154)
26 (104)
5 450001 and above 5 (100)
4 (852)
4 (1020)
4 (768)
5 (769)
22 (88)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 35 that 166 percent of the respondents
were having the income of Rs 50000 ndash 150000 per annum income category and
356 percent had an income between Rs 150001 to Rs 250000 The percentage of
respondents in the Rs 250001 to 350000 range was found to be 289 percent
whereas those with an income less than Rs 450000 but above Rs 350001
accounted for 104 percent of the respondents The respondents with an annual
income greater than Rs 450000 made up the remaining 88 percent of the total
sample size It is learnt from the study that the farmers were from different types of
age groups education qualification and income range
48
Type of Family
Type of the family also determines the income of farmers When the partition
of agriculture land take place it badly affects on the quantity of agriculture
production If agriculture activities are carried out in joint family leads bulk
production and minimization of agriculture cost The data regarding the type of family
was also collected through schedule of questionnaire prepared for the farmers is
shown in below table along with their percentage to total sample size
Table-36
Type of Family of Farmer Respondents
Sl No Particulars Type of Family
Total Nuclear Family Joint Family Individual
1 Gulbarga 36 (1988)
14 (2029)
- 50 (2000)
2 Bidar 34 (1878)
13 (1884)
- 47 (1880)
3 Koppal 35 (1933)
14 (2028)
- 49 (1960)
4 Raichur 37 (2044)
15 (2173)
- 52 (2080)
5 Bellary 39 (2157)
13 (1886)
- 52 (2080)
Total 181 (7240)
69 (2760)
- 250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table depicts the classification of respondents on the basis of type
of family ie nuclear family or joint family 7240 percent of sample size are
belonged to nuclear family and remaining 2760 percent are living still in joint family
This clearly indicated that majority of preferred not to stay with joint family but want
to be in nuclear family
49
Family Size
Family size means the number of family members staying together in a single
family The farmers were also asked about the number of members living together
which helps to know their tendency towards big family or small family Big family
with small agriculture land holding found to be different to manage economic needs
and vice versa Keeping this point in mind data was collected about the size of family
members and is shown in Table 37
Table-37
Family Size of Respondents
Sl No Name of the Market Family Members
Total Below 4 4 ndash 8 8 ndash 12 Above 12
1 Gulbarga 15 (2027)
27 (2000)
05 (2083)
03 (1764)
50 (2000)
2 Bidar 14 (1891)
25 (1851)
05 (2083)
03 (1764)
47 (1880)
3 Koppal 15 (2027)
24 (1777)
06 (2500)
04 (2353)
49 (1960)
4 Raichur 15 (2027)
31 (2296)
04 (1667)
02 (1176)
52 (2080)
5 Bellary 15 (2028)
28 (2076)
04 (1667)
05 (2943)
52 (2080)
Total 74 (2960)
135 (5400)
24 (960)
17 (680)
250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table presents the classification of the respondents on the basis of
the size of the family members The category is done family below four members 4
members to 8 farmers respondents which constitute 54 percent of the sample group
had members between 4-8 and 2960 percent of sample size had family members
below 4 followed by 960 percent and 680 percent had 8-12 members and above 12
members respectively
50
Agriculture Land Holdings
The annual gross income of the respondents largely depends on the agriculture
land holdings by the farmers an attempt has been made to collect the details of the
agriculture land holding by the farmer respondents The size of the land holdings and
socio economic conditions of the farmers play an important role in farming as well as
marketing activities The size of the land holdings by sample size selected for the
present study is shown in the below table
Table-38
Total Agriculture Land Holdings
Sl No
Name of the Market
Total Agriculture Land Holding Total Below 5
Acres 5 ndash 10 Acres
11 ndash 15 Acres
Above 16 Acres
1 Gulbarga 3 (60)
20 (400)
9 (180)
18 (360)
50 (2000)
2 Bidar 3 (638)
19 (4042)
9 (1915)
16 (3405)
47 (188)
3 Koppal 3 (0612)
20 (4082)
9 (1837)
17 (3569)
49 (1960)
4 Raichur 4 (769)
21 (4038)
10 (1923)
17 (327)
52 (2080)
5 Bellary 4 (769)
21 (4038)
9 (1730)
18 (3463)
52 (208)
Total 17 (68)
101 (404)
46 (184)
86 (3440)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above Table 38 revels that 404 percent of the total respondents are small
farmers (ie 5 acres or more but less than 10 acres) 3440 percent of sample groups
are large farmers ie 16 acres or more than 16 acres and only 68 percent of
respondents are having less than 5 acres of cultivating land (marginal farmers)
Major Crops Grown
Generally agriculture crops are grown on basis and depending on the agro
climatic conditions as well as the socio-economic conditions of the farmers The study
51
was conducted to know the major crops grown by the farmer respondents selected for
the present study
Table-39
Annual Crop Grown in Land
Crop Quantity in Quintals
Total 1-25 26-50 51-75 76-100 100 and
above
Red gram 10 50 22 06 10 98
Green gram 96 16 04 - - 116
Black gram 22 38 04 64 - 128
Jawar 99 36 04 02 - 141
Maize 11 33 19 - 02 65
Bajra 07 02 05 07 04 25
Bengal gram 09 35 12 - 36 92
Sugarcane 21 08 04 08 - 41
Others 06 08 12 06 - 32 Source Field study
The quantity of crop grown by the farmers annually is given in the above
Table 39 The data about the different crop grown by the sample size of farmers are
shown in quantity along with the percentage of each crop to total crop grown by the
sample farmers
The table reveals that 5640 percent of the farmers respondents cultivate jowar
followed by 4640 percent farmers ever growing green gram red gram (3920)
maize (26) Black gram (2560) percent Bengal gram (368) and sugarcane
(1640) other crops grown constitute 5120 to total which included onions
groundnuts pulses chillies wheat and paddy etc
It can be seen clearly from the same table that red gram jowar green gram
and black gram are cultivated by the farmer respondents partially for self consumption
purpose and partially for selling It could also be noted from the same those
commercial crops like sugarcane bajra maize chillies sunflower paddy and onions
52
find a major portion in the cropping pattern of the farmer respondents This clearly
indicates the higher degree of commercialization of agricultural production by the
farmers in the Gulbarga division
Preference of Sale of Agriculture Produce
Marketing today is becoming more complicated with the advancement of the
civilization The commodity to be marketed must be of value It shouldnrsquot be a free
gift of the nature easily available for mere picking The farmer wish to have the
maximum share in the price of the products and on other side he wish to purchase the
inputs at the minimum price As he is interested to maximize his profits on sale of his
agriculture produce he will always in search for the market place where he can get
good price An attempt has been made in schedule to acquire information about the
preference of sale of agriculture produce by the sample respondents is shown in the
Table 310 and 311
Sale of Agriculture Produces
Table-310
Sale of Agriculture Produces
Sl No
Name of Market
Sale of Agriculture Produces Total
Sample Open Market APMC Confirmation Other
1 Gulbarga 21 (200)
46 (200)
080 (200)
01 (2500)
50 (2000)
2 Bidar 20 (1905)
43 (1870)
078 (1950)
-- 47 (188)
3 Koppal 21 (200)
45 (1956)
078 (1950)
01 (2500)
49 (196)
4 Raichur 22 (2095)
48 (2086)
083 (2075)
01 (2500)
52 (208)
5 Bellary 21 (200)
48 (2088)
081 (2025)
01 (2500)
52 (208)
Total 105 (420)
230 (920)
04 (16)
04 (16)
250 (100)
Source Field survey Note Figure in bracket indicates percentage to total
53
After the development of regulated markets farmers preferred to sell their
agriculture produce in the APMC yard this was clear in the Table 310 The response
of sample size was collected about sale of the agriculture produce 92 percent of
sample size preferred to sold only in the APMC market as to overcome from the
problems and malpractices in the open markets and 42 percent in open market 16
percent of sample each in confirmation market and other type of sale
Table-311
Preference of Sale of Agriculture Produces by Respondents
Sl No
Name of the Market
Preference of Sale Total Sample Local
Market Taluks Market
District Market
Other State
1 Gulbarga 23 (200)
23 (2035)
25 (2016)
01 (250)
50 (200)
2 Bidar 22 (1913)
21 (1858)
23 (1855)
01 (2500)
47 (188)
3 Koppal 23 (200)
22 (1946)
24 (1935)
-- 49 (196)
4 Raichur 24 (2086)
24 (2124)
26 (2096)
01 (2500)
52 (208)
5 Bellary 23 (2001)
23 (2037)
26 (2098)
01 (2500)
52 (208)
Total 115 (460)
113 (452)
124 (496)
04 (160)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The above table gives the preference of sale of agriculture produce by the
farmer respondents Researcher has discussed with the respondents and mobilized the
data whether they prefer to sell their agricultural produce in local market taluka or
district market
Higher percentage of farmers ie 4960 is sold their agricultural produce in
the district to get better price compared to local market 46 percent of them opinioned
that they are selling their produce in local markets due to infrequency of
transportation facilities and to save the expenditure from bringing produce to district
or taluk market Some farmer respondents ie 4520 percent are sold near to taluka
market and rest of them (160 percent) through direct sale to whole seller retailer or
brokers etc
54
Mode of Transportation
Most of the agricultural goods are not consumed at the places of their
production They are required to be transported in the various stages of the market
Right from lifting of the produce from the threshing floor to its ultimate consumer the
transportation is required to the farmer to bring the agricultural produce to the market
The various means of transport are used These are bullock carts horse tanga tractor
trolleys trucks etc Transport being the most important function of marketing In case
of transport in the rural India though in modern days its importance is declining now
the power operated means like tractors trolley trucks are being used but still bullock
cart and horse tonga is an important means of transport in agricultural marketing The
study had been conducted to know the mode of transport means used by the farmer
respondents to transport the agricultural produce from farm place to market place
same is presented in the table
Table-312
Mode of Transportation of Agriculture Produce by Respondents
Sl No
Name of the Market
Mode of Transportation Total Sample Bullock
Cart Tractor and
Trucks Hired
Vehicles Own
Vehicle 1 Gulbarga 18
(200) 16
(1928) 21
(1963) 01
(2500) 50
(200) 2 Bidar 17
(188) 15
(1807) 20
(1869) - 47
(188) 3 Koppal 18
(200) 16
(1928) 21
(1963) 01
(2500) 49
(196) 4 Raichur 19
(2111) 17
(2048) 22
(2056) 1
(2500) 52
(208) 5 Bellary 18
(2009) 19
(2289) 23
(2149) 01
(2500) 52
(208) Total 90
(360) 83
(322) 107
(428) 04
(160) 250
(100) Source Field study Note Figures in bracket indicates percentage to total It can be seen from the above table that maximum ie more than 42 percent
of our farmer respondents were transported their agriculture produce through hired
vehicle followed by 360 percent of them through bullock cart owned by themselves
Modern means of transportation such as tractors and trucks are used by 322 percent
of sample size The above figure in table indicates that dependency on traditional
55
mode of transportation was decreasing when it compared to modern mean to
transportation
Market Charges
As per the bye laws approved by the chief marketing officer according to the
Act market charges are levied by the market committees In all selected market
committees for the present study in the Gulbarga division only three types of market
charges are levied to the farmers for sale of his agricultural produce in the regulated
markets One commission to commission agent which is fixed at 2 in all the markets
but other market charges different from one market to another market depending upon
the decisions to this effect by the respective market committees A part from
commission all APMCs in the sample size charges hamali and weighment charges In
some APMCs cleaning charges are also levied for cleaning the produce which is
included in other markets in hamali Thus no unauthorized deductions are made now
in any of the markets in the division Few secretaries of the APMCs during the field
study opined that the charges are quite nominal and the services rendered are more
valuable than the charges and they cannot be quantified
Table-313
Market Charges by APMC
Sl No Name of Market Market Charges Total Sample Very Low Very High Fair Average
1 Gulbarga 03 (60)
15 (300)
10 (200)
22 (440)
50 (200)
2 Bidar 02 (425)
15 (3191)
11 (2340)
19 (4044)
47 (188)
3 Koppal 02 (408)
14 (2857)
11 (2245)
22 (4490)
49 (196)
4 Raichur 03 (576)
16 (3076)
10 (1923)
23 (4423)
52 (208)
5 Bellary 02 (384)
17 (3269)
10 (1923)
23 (4424)
52 (208)
Total 12 (480)
77 (3080)
52 (2080)
109 (4360)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total From the above table it could be seen that 4360 percent of farmer respondents
are of the opinion that APMC is charging average ie neither too high nor too low
market charges on the sale of agricultural produce by the farmers On the other hand
56
3080 percent of farmer respondents dissatisfied with the market charges by the
APMC as they expressed that market charges are very high in APMC yard as
compared with open market Though 480 percent of them are fully satisfied and
2080 percent of respondents were reacted positively about the market charges
Carrying Costs
In case of agricultural marketing the transport cost is to be paid by the farmer
if he is selling the produce in the market but if he is selling to the village trader the
cost is to be paid by the trader Carrying cost is the most important cost in the process
of agricultural marketing The carrying cost is more important in context of place
utility of product The efficiency of the marketing is dependent on reducing the cost
of carrying Generally the cost of carrying of bullock cart is higher as compared to
the power operated means A survey was conducted to ascertain the opinion of the
farmer respondents towards the carrying cost paid by them in study area and the data
so collected was shown in the table below
Table-314
Carrying Cost Paid by Respondents
Sl No Name of Market Carrying Cost Total Sample Very Low Very High Fair Average
1 Gulbarga 06 (1200)
10 (2000)
03 (600)
31 (6200)
50 (200)
2 Bidar 05 (1063)
09 (1915)
03 (638)
30 (6384)
47 (188)
3 Koppal 06 (1224)
09 (1836)
02 (408)
32 (6532)
49 (196)
4 Raichur 07 (1346)
11 (2115)
03 (576)
31 (5963)
52 (208)
5 Bellary 06 (1153)
11 (2115)
04 (769)
31 (5963)
52 (208)
Total 30 (1186)
50 (2000)
15 (580)
155 (6234)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above table shows the carrying costs paid by the farmer respondents to
carry the goods from one place to another place with in the market yard One thing is
clear from the above table that more than 60 of respondents are satisfied with
carrying costs paid by them But minor percentage ie 20 percent of respondents not
57
satisfied saying transporters were charging heavy cost and 580 percent were
opinioned that transportation cost paid by them was neither high or nor low but it was
fair From these data analysis maximum number of farmers respondents were fully
and partially satisfied with carrying cost paid in the market yard
Facilities Provided at APMC
Table-315
Facility Provided at APMC
Particulars
Districts Grand Total
Gulbarga Bidar Koppal Raichur Bellary
Yes No Yes No Yes No Yes No Yes No Yes No Total
Water 26 23 27 24 26 24 27 23 27 23 133 (5320)
117 (4680)
250 (100)
Toilet 4 46 4 43 4 45 5 47 5 47 22 (5320)
228 (9120)
250 (100)
Canteen 13 37 12 35 12 37 13 39 12 39 62 (2480)
188 (7520)
250 (100)
Communication 27 23 26 23 27 22 26 24 27 25 135 (5400)
115 (4600)
250 (100)
Shopping property
21 29 20 27 20 29 20 32 20 32 101 (4040)
149 (5960)
250 (100)
Market information
28 22 27 20 27 22 29 23 29 23 140 (5600)
110 (4400)
250 (100)
Other facilities (if any)
29 21 28 19 28 21 30 22 30 22 145 (5800)
105 (4200)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Table-316
Coefficient Correlation between Varieties with in Facilities Provided by APMC
Sl No
Facilities by APMC
Facilities by APMC
Water Toilet Canteen Commu-nication
Shopping Property
Market Information
Other Facilities
1 Water 1000 235() 535() 984() 749() 428() (a)
2 Toilet 235() 1000 474() 230() 376() 218() (a)
3 Canteen 535() 474() 1000 526() 693() 505() (a)
4 Communication 984() 230() 526() 1000 749() 411() (a)
5 Shopping property
749() 376() 693() 749() 1000 705() (a)
6 Market information
428() 218() 505() 411() 705() 1000 (a)
7 Other facilities (if any)
(a) (a) (a) (a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
58
The coefficient correlation calculated between the variables (one variable with
the another variable) within the facilities provided by APMC is shown in the above
table Each variable is positively correlated with other variable
Table-317
lsquotrsquo - Test Values
One-Sample Statistics
Facilities by APMC N Mean Std Deviation
Std Error Mean
Water 250 14680 5000 3162E-02
Toilet 250 19120 2839 1795E-02
Canteen 246 17480 4351 2774E-02
Communication 250 14600 4994 3158E-02
Shopping Property 246 15894 4929 3143E-02
Marketing Information 250 14400 4974 3146E-02
Other Facilities 145 20000 0000(a) 00000 Note a) Cannot be computed because the standard deviation is 0
One-Sample Test
Facilities by APMC
Test Value = 0
t Df Sig
(2-tailed) Mean
Difference
95 Confidence Interval of the
Difference
Lower Upper
Water 46424 249 000 14680 14057 15303
Toilet 106500 249 000 19120 18766 19474
Canteen 63015 245 000 17480 16933 18026
Communication 46225 249 000 14600 13978 15222
Shopping Property 50573 245 000 15894 15275 16513
Marketing Information
45776 249 000 14400 13780 15020
59
Dissemination of Market Information
The dissemination of market information is most important so to make the best
use of this information There is no use of collection of data if it is not disseminated
well in time There are different sources for dissemination of market information such
as news papers radio and television department of government post and telephone
etc
The different news papers published in English Hindi and regional languages
are publishing the information about piracy of various commodities in different
markets There are periodical magazines and journals published weekly fortnightly or
monthly Radio and television is depicting the news about markets and broadcast and
televise the information about prices daily in its programmes The various department
of the government publish various reports concerned with agricultural marketing The
traders exchange the information about prices and arrivals in different markets
through telephone or through letters Price bulletins are published by directorate of
marketing and inspection providing information about prices and personal contact
between farmer to farmers farmer to trader etc is also a source of information The
following table provides the details of responses of source of market information
Table-318
Sources of Market Information
Sl No Particulars Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 Newspaper 32 (2013)
30 (1886)
31 (1950)
33 (2075)
33 (2015)
159 (636)
2 Radio and TV 42 (1981)
40 (1886)
42 (1981)
44 (2075)
44 (2075)
212 (848)
3 Dept of government 05 (2083)
05 (2083)
05 (2083)
05 (2083)
04 (1667)
24 (96)
4 Post and telephone - - - 01 (5000)
01 (5000)
02 (08)
5 Personal contact - - - 01 (5000)
01 (5000)
02 (08)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
60
A comparative analysis of sources of market information reveals that 848
percent of farmer respondents obtained the market information through radio and
television followed 6360 percent from newspapers and 372 from price bulletins
about the market 96 of total sample size depended on the various departments of
the governments such as directorate of economics and statistics of the central
government directorate of economics and statistics of the sates the agricultural
marketing departments of states etc about the prices in different regulated markets
Personal contact and post and telephone sources of market information is considered
to be a least sources from respondents
Table-319
Defects in Market Information
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Ignore retail prices 11 (2200)
10 (2553)
10 (2041)
11 (2115)
11 (2115)
53 (212)
2 Delay in news 13 (2600)
12 (2553)
13 (2653)
14 (2692)
14 (2692)
66 (2640)
3 Wide range of prices 05 (1000)
06 (1277)
06 (1224)
06 (1154)
07 (1346)
30 (1200)
4 Incomplete information
08 (1600)
08 (1702)
08 (1632)
09 (1730)
08 (1538)
41 (1640)
5 Illiteracy 07 (1400)
07 (1489)
07 (1428)
08 (1538)
08 (1538)
37 (148)
6 Others 06 (1200)
04 (851)
05 (1020)
04 (769)
04 (769)
23 (920)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
From the above table it can be seen that farmers are getting different
advantages for grading the products Their response is not homogenous ie 38
percent of the farmers are supported grading in easy marketing of the agriculture
produce 9680 percent are favoured grading in establishing to face competition and
61
128 percent of sample group opinioned about the grading that it will helps in
obtaining higher prices Only 6 of them favoured to reduction of cost of marketing
and 64 to easy to get finance facilities
Table-320
Ranking of Defects in APMC
Defects in APMC Ranking of Defects
Total First Second Third Fourth
No advance fund 32 (120)
216 (864)
02 (08)
02 (08)
250 (100)
Difficulty of storage 230 (920)
14 (560)
4 (160)
04 (160)
250 (100)
Lack of transportation 10 (40)
20 (80)
218 (872)
02 (080)
250 (100)
Lack of grading 10 (40)
179 (716)
02 (080)
59 (236)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The survey of APMC defects to rank on the basis of the respondents
preferences is shown in the above table 92 of the total respondents were opinioned
that the major defect in the APMC yard is difficulty of storage facilities followed by
no advance fund to farmers to meet the pre harvest expenses which constitute 864
of sample group
Table-321
Coefficient Correlation between Variables within Defects in Regulated Markets
Sl No
Defects in Regulated Markets
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 No Advance Money 1000 -354() 763()
2 Difficulty of Storage -354() 1000 044
3 Lack of Transport 763() 044 1000 Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
62
The details of the coefficient correlation calculated between all the variable of
defects in regulated markets are given in the above table Some variables within the
defects in regulated markets are found positive and negative correlated with each
other
Table-322
Correlation between Facilities Provided by APMC with Effects in Regulated
Markets
Sl No Facilities by APMC
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 Water - 269 () 058 - 218 ()
2 Toilet - 114 074 - 057
3 Canteen - 059 - 097 - 116
4 Communication - 276 () - 0062 - 222 ()
5 Shopping property - 173 () - 008 - 166 ()
6 Market information - 293 () - 141 () - 232 ()
7 Other facilities (if any)
(a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant The above table shows the computed result of correlation between the
facilities provided by the APMC to the farmers in the APMC with the defects
prevailing in the market yard The correlation was found significant between water
facilities communication facility shopping property and market information with no
advance money with a value -0269 -0276 -0173 and -0293 respectively The
correlation was insignificant between toilet and canteen facility in the market yard
with the no advance money
Difficulty of storage in the market yard is one of the most severe problem
found in the selected APMC yard The correlation between difficulty of storage with
the facilities by APMC were found insignificant in all cases except with market
information ie - 0141 But with lack of transport defect in the market yard the
63
correlation was insignificant between toilet and canteen with the transport defect with
a value of -0057 and -0116 respectively
Table-323
Facilities to Improve Market Efficiency
Facilities Ranking of Facilities
Total First Second Third Fourth Fifth
Trade more commodities 24 (96)
173 (692)
49 (196)
02 (08)
02 (08)
250 (100)
Increase in facilities 221 (884)
22 (880)
03 (12)
02 (08)
02 (08)
250 (100)
Role of government 34 (136)
29 (116)
175 (700)
06 (240)
06 (240)
250 (100)
Representative from farmers 04 (160)
20 (80)
10 (40)
212 (848)
04 (160)
250 (100)
Reduction in market fee 04 (16)
100 (400)
55 (220)
41 (1640)
50 (200)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-324
Coefficient Correlation between Variables of Facilities to
Improve Market Efficiency
Sl No
Facilities to Improve Market
Efficiency
Facilities to Improve Market Efficiency More
Commodities to Trade
Increase in
Facilities
More Role of Government
Representation From Framers
1 More commodities to trade
1000 419() -316() 355()
2 Increase in facilities
419() 1000 -619() 048
3 More Role of Government
-316() -619() 1000 336()
4 Representation from Framers
355() 048 336() 1000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
64
The above table depicts the values of the coefficient correlation calculated
between the variables of facilities suggested by the farmer to improve market
efficiency in the APMC yard
Table-325
Correlation between Facilities Provided with Facilities to Improve Market
Efficiency
Sl No
Facilities Provided by
APMC
Facilities to Improve Market Efficiency More
Commodity to Trade
Increase in
Facilities
More Role of Government
Representation from Farmers
1 Water -221() 098 -212() -167() 2 Toilet -100 -300() 220() 181() 3 Canteen -028 -076 -129() -089 4 Communication -218() 103 -222() -167() 5 Shopping
property 057 019 -249() 008
6 Market information
-073 116 -353() -176()
7 Other facilities (if any)
(a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The data collected about the opinion of the farmer respondents towards the
facilities provided by APMC is correlated with the suggestions obtained from them to
improve market efficiency further was given in the above table The result of
correlation is shown significant between water and communication facilities with
more commodities need to be allowed to trade under notified agriculture crops in the
APMC yard the correlation value is -0221 and -0218 respectively
A negative correlation between toilet and increase in market facilities ie -03
clearly indicates that APMC should concentrate on other facilities to improve market
efficiency other than toilet facility The government is required to play a vital role in
the APMC yard to improve the market efficiency by providing financial assistance to
APMC officials enabling them to provide essential facilities to the farmers and market
functionaries The correlation was negatively correlated between the facilities
provided by APMC listed in the above table except in toilet facility ie positive
correlation 0220 The highest negative correlation was computed between market
65
information with government role ie -0353 followed by -0249 (between shopping
property with government role) The farmersrsquo representation in the market committee
is also one of the important aspect in availing market facilities The correlation
between farmers representation with market facilities shows negative except in toilet
facility it is positive correlation ie 0181
Table-326
Correlation between Defects in Regulated Markets with Facilities to Improve
Market Efficiency
Sl No
Defects in Regulated Markets
Facilities to Improve Market Efficiency
More Commodities to
Trade
Increase in Facilities
Role of Government
Reduction in Market Fees
1 No advance money
611 () 039 343 () 439 ()
2 Difficulty of storage
-118 043 139 () 019
3 Lack of transport facility
500 () 059 445 () 895 ()
4 Lack of Gradation facility
-0115 0410 135 () 117
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The defects in the regulated markets were ranked by the farmers on their
preferences were also attempted to correlate with the additional facilities to be
provided to improve the market efficiency The correlation was positively correlated
between no advance money and lack of transport facility with the more commodities
to be permitted to trade in the market yard with value 0611 and 0500 respectively
No negative correlation was found between any of variables between defects in
regulated markets with the farmers opinions to improve market efficiency ie
increase in facilities Reduction in the market fees and charges is the another way for
the APMC officials to improve the market efficiency the correlation result is positive
with the market defects ie highest positive correlation with lack of transport facility
66
with reduction in market fees (0895) followed by no advance money with reduction
in market fees (0439) and (0117) between lack of gradation and reduction in market
fees Government role was also positively correlated to over come from all the defects
prevailing in the regulated market in the direction to improve market efficiency (the
correlation result was ranged between 0135 to 0445) Few defects were highly
correlated and others defects were less correlated with role of government variable
67
Table-327
Pearson Correlations
Correlations 18a 18b 18c 18d 19a 19b 19c 19d 19e
Pearson Correlation 18a 1000 -354() 763() 735() 611() 039 343() 439() 469() 18b -354() 1000 044 131 -118 043 139() 019 072 18c 763() 044 1000 911() 500() 059 445() 895() 898() 18d 735() 131 911() 1000 987() (a) 987() 948() 947() 19a 611() -118 500() 987() 1000 419() -316() 355() 1000() 19b 039 043 059 (a) 419() 1000 -619() 048 (a) 19c 343() 139() 445() 987() -316() -619() 1000 336() 1000() 19d 439() 019 895() 948() 355() 048 336() 1000 1000() 19e 469() 072 898() 947() 1000() (a) 1000() 1000() 1000
Sig (2-tailed) 18a 000 000 000 000 546 000 000 000 18b 000 510 276 065 508 033 781 611 18c 000 510 000 000 377 000 000 000 18d 000 276 000 000 000 000 000 19a 000 065 000 000 000 000 000 000 19b 546 508 377 000 000 491 19c 000 033 000 000 000 000 000 000 19d 000 781 000 000 000 491 000 000 19e 000 611 000 000 000 000 000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
68
Infrastructure Facilities in the APMC Yard
Efficient marketing infrastructure such as wholesale retail and assembly
markets and storage facilities is essential for costndasheffective marketing to minimize
post harvest losses and to reduce health risks Markets play an important role in rural
development income generation food security developing rural market linkages and
gender issues Planners need to be aware of how to design markets that meet a
communityrsquos social and economic needs and how to choose a suitable site for a new
market In many cases sites are chosen that are inappropriate and result in under use
or even no use of the infrastructure constructed It is also not sufficient just to build a
market attention needs to be paid to how that market will be managed operated and
maintained In most cases where market improvements were only aimed at
infrastructure upgrading and did not guarantee maintenance and management most
failed within a few years The details of the availability of infrastructure and farmers
opinion is shown in the following tables
69
Table-328
Infrastructure Facilities in the APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
Available Not Available Available Not
Available Available Not Available Available Not
Available Available Not Available Available Not
available Total
Transport 32 18 35 12 36 13 39 13 42 10 184 (7360)
66 (2640)
250 (100)
Cold storage 02 48 02 45 01 48 03 49 06 46 14 (560)
236 (9440)
250 (100)
Storage 35 15 38 09 36 13 37 15 40 12 186 (7440)
64 (2560)
250 (100)
Processing 30 20 35 12 38 11 41 11 38 14 182 (7280)
68 (2720)
250 (100)
Grading 28 22 40 07 41 08 40 12 37 15 186 (7440)
64 (2560)
250 (100)
Weighment 45 05 42 05 41 08 45 07 44 08 217 (8680)
33 (1320)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
70
Table-329
Satisfaction of Infrastructure Facilities in APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
S NS T S NS T S NS T S NS T S NS T S NS T
Transport 30 20 50 31 16 49 35 14 42 34 18 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Cold storage 01 49 50 - 47 47 - 49 49 01 51 52 02 50 52 04 (160)
246 (9840)
250 (100)
Storage 32 18 50 29 18 47 27 22 49 33 19 52 38 14 52 159 (6360)
91 (3640)
250 (100)
Processing 25 25 50 28 19 47 31 18 49 38 14 52 35 17 52 157 (6280)
93 (3720)
250 (100)
Grading 22 28 50 35 12 47 36 13 49 37 15 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Weighment 41 09 50 36 11 47 40 09 49 42 10 52 42 10 52 201 (8040)
49 (1960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total S ndash Satisfied NS ndash Not Satisfied T ndash Total
71
Defects in Weighing
As a rule when produce enters the market every agricultural produce has to
be weighed in the presence of the licensed weighmen and the receipt for weighment
has to be given to the farmer But even this system has certain defects as follows
Meager number of weighmen
Time of weighment of the produce
Old weighment equipments
The details of weighing practices in the APMC yard and the farmer
respondents opinion is shown in the following table
Table-330
Causes of Defects in Weighing
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Absence of licenced weigh man
20 19 19 18 19 95 (3800)
2 Under weighting 25 22 24 26 25 122 (4880)
3 Favouring for buyer
05 03 02 03 03 16 (640)
4 Faulty weights 00 02 01 02 02 07 280)
5 Faulty weight machineries
00 02 03 03 02 10 (400)
6 Others 00 00 00 00 01 01 (040)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Farmer respondents were identified under weighing was followed by the
absence of licensed weigh men and faulty weigh machines
72
Table-331
Importance of Grading of Produce
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Easy marketing 18 (3600)
17 (3617)
19 (3877)
20 (3846)
21 (4038)
95 (3800)
2 Reduction of cost 05 (1000)
03 (638)
02 (408)
02 (384)
03 (576)
15 (600)
3 Higher prices 05 (1000)
02 (425)
08 (1632)
10 (1923)
07 (1346)
32 (128)
4 Encourage competition
20 (4000)
18 (3829)
15 (3061)
19 (3653)
20 (3846)
92 (3680)
5 Easy to get finance 02 (400)
07 (1489)
05 (1020)
01 (192)
01 (192)
16 (640)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Processing of Produce
In agriculture marketing process was not an important function The most of
the commodities were selling in their original form But in modern age with change
in the tastes and preferences of the people and with the introduction of new
technology like refrigerator milling and banking of food grains the consumers
demand for processed goods has increased So in the modern system of marketing the
processing has become a most important function of the marketing
By processing we mean the change of the form of the product before its
consumption The processing of the agricultural products is having the advantages
such as add the value in the product converts into edible form preservation for longer
period use of surplus food less cost of production wide extent of the market and
generation of employment The study about the opinion of farmer respondents
towards the importance of processing in agriculture marketing was conducted and the
result is shown in the below Table 332
73
Table-332
Importance of Processing of Produce
Sl No
Particulars Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Add the value 45 (9000)
43 (9149)
45 (9184)
47 (9038)
47 (9038)
227 (9080)
2 Preservation for longer period
38 (7600)
36 (7660)
37 (7551)
40 (7692)
39 (7500)
190 (760)
3 Less cost of production
10 (1000)
09 (1915)
09 (1837)
10 (1923)
10 (1923)
48 (1920)
4 Wide extent of the marketing
03 (600)
03 (638)
03 (612)
03 (576)
04 (769)
16 (640)
5 Use of surplus food 01 (200)
- 01 (204)
01 (192)
01 (192)
04 (160)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The Table 332 reveals that the importance of processing of agriculture
producing in marketing more than 90 percent of farmer respondents are fully agreed
that processing definitely going to add the value to the agriculture producing in
marketing At the same time 76 percent of sample group are favoured that processing
helps in preservation of agriculture produce for longer period and 1920 percent and
640 percent of farmer respondents are opined that processing of agriculture produce
is important for less cost of production and wide extent of the marketing respectively
Only a minor percent ie 160 supported the processing helps to use of surplus food
From the above analysis it can be said that processing not only helps to farmers but
also to buyer of agriculture produce in many ways
74
Satisfaction towards Insurance Facilities
Table-333
Level of Satisfaction of Insurance Facilities
Sl No Satisfaction Level Agriculture Insurance
Total Insured Non-Insured
1 Satisfied 238 (9917)
02 (083)
240 (9600)
2 Unsatisfied 10 (10000)
- 10 (400)
Total 248 (9920)
02 (080)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Finance Requirements
According to Pyle ldquoMoney or credit is the lubricant that facilitates the
marketing machinerdquo there can be obstacles in performing various activities in case
there are inadequate funds to meet the expenditure involved in these functions The
biggest need of finance is to purchase the stock of agriculture produce and to meet the
agriculture expenses for farmers In the agricultural marketing the finance is having
more importance because of the nature of agricultural marketing The production is
seasonal and there is rush in the market at the time of harvest Huge amount is
required to farmers to meet fertilizers and pesticides expenses and to buyer for the
purchase of stock to get it stored and for its processing So the finance is required to
be arranged either by the owned fund or by taking loan Though the rate of interest
adds in the price of the commodity and the persons who is making this expenditure
realizes it as the reward of the function performed by him The researcher has
undertaken the study of finance facilities at the APMC yard other sources of credit
other than banking the factors affects the requirements of finance by agricultural
marketing firm as well as farmers and the interest paid on the credit the results of the
farmers opinion was collected and shown in the Table 334 335 336 and 337
75
Table-334
Satisfaction of Banking Facilities at APMC
Sl No Level of Satisfaction Availability of Banking Facilities
Total Available Not Available
1 Satisfied - 15 (602)
15 (600)
2 Unsatisfied 01 (10000)
234 (9398)
235 (9400)
Total 01 (040)
249 (9960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total The Table 334 depicts the farmerrsquos responses towards the availability of
banking facilities in the APMC yard and their satisfaction towards such services in the
market yard In all the APMCs of Gulbarga division which covers five districts only
6 of the respondents were satisfied and rest of 940 percent of farmers respondents
were unsatisfied for the non-availability of banking facilities in the yard
Table-335
Other Sources of Credit Facilities
Sl No Particulars Districts Total Gulbarga Bidar Koppal Raichur Bellary 1 Whole seller 09
(1800) 08
(1702) 08
(1632) 10
(1923) 10
(1923) 45
(1800) 2 Retail seller 05
(1000) 04
(851) 05
(1020) 05
(961) 04
(769) 23
(920) 3 Commission agents 32
(6400) 31
(6595) 32
(6531) 34
(6538) 33
(6346) 162
(6480) 4 Broker 03
(600) 03
(638) 03
(612) 03
(576) 03
(576) 15
(600) 5 Others 01
(200) 01
(212) 01
(204) 00
(000) 02
(385) 05
(200) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total The researcher has also attempted to collect the opinion from the farmers
about the availability of other sources of credit facilities to the buyer of agriculture
produce and to farmers The other sources of credit to farmers other than bank
includes wholesaler retailer commission agents and brokers Majority of farmer
76
respondents ie 6480 percent of sample size said that commission agents are most
easy source of credit followed by whole seller ie 18 percent and retailer seller ie
920 and brokers only 6 percent
Ranking the Factors of Finance Requirements
As the financial requirements in the agricultural marketing can play a big role
as stimulation of agricultural production and to promote the interest of agricultural
community There are two types of finance requirements one fixed capital which is
required for the building furniture office instruments etc to carry on the business of
agricultural market Second requirement variable capital this is required to purchase
of stocks to make the payment of transportation labourers bills and refreshments
etc The researcher during his field study has attempted to point out and tried to rank
the main factors for finance requirements The data so collected is shown in the Table
336
Table-336
Ranking the factors of finance requirements
Sl No
Finance Requirements
Ranking Finance Requirements Total
First Second Third Fourth Fifth
1 Nature of crop 123 (4920)
50 (2000)
35 (1400)
23 (920)
19 (760)
250 (100)
2 Terms of payments 84 (3360)
16 (640)
31 (1240)
105 (4200)
14 (560)
250 (100)
3 Economic conditions 09 (360)
132 (5280)
63 (2520)
25 (1000)
21 (840)
250 (100)
4 Fluctuations of prices 15 (600)
26 (1040)
104 (4160)
47 (1880)
58 (2320)
250 (100)
5 Volume of crop 19 (760)
26 (1040)
17 (680)
50 (2000)
138 (5520)
250 (100)
Total 250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
77
The above Table 336 shows that the ranking of finance requirements by the
farmer respondents Out of 250 sample respondents 123 farmers respondents ranked
first the nature of crop which determines the quantum of finance requirements
followed by 5280 percent towards economic conditions as ranked second and
fluctuation of prices ie 41 percent as third and terms of payment as fourth position
followed by volume of crop as fifth
Interest Paid on Bank Credit
Table-337
Interest Paid on Bank Credit
Sl No Particulars Interest Paid on Bank Credit
Total Very low Very high Average
1 Gulbarga 30 (6000)
12 (2400)
08 (1600)
50 (2000)
2 Bidar 27 (5745)
11 (2340)
07 (1915)
47 (1800)
3 Koppal 29 (5918)
12 (2449)
07 (1428)
49 (1920)
4 Raichur 32 (6154)
12 (2307)
08 (1538)
52 (2080)
5 Bellary 32 (6154)
13 (2500)
10 (1923)
52 (2080)
Total 150 (6000)
60 (2400)
40 (1600)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Services of Commission Agents
Commission agents are the main marketing functionaries operating in the
APMC yard among the other market participants They provide the necessary link in
the marketing of agricultural produce to the farmers They supply the necessary data
and useful assistance in the marketing of agricultural produce of the farmers They
help farmers in availing the services like assembling storing grading and finance etc
Hence the farmers are provided with channel of distribution by the APMC by
78
licensing these intermediaries and regulating their services The farmer respondents
were approached for obtaining their views about the quality of services covering
defects with commission agents commission paid to commission agents and their
satisfaction with commission agents The following Tables ie 338 339 and 340
gives the results of the survey data
During the field work by the researcher investigated to identify the defects
with commission agents from the farmers The data so collected are compiled and
shown in the Table 338 The major defect with the commission agent was they are
more favourable to the buyer which constitutes 68 percent of sample size 20 percent
of farmers respondents were pointed out the misguide by the commission agent to
farmers at the time of sale is the second major defects followed by high commission 8
percent lack of knowledge 320 and other defects constitutes 080 percent More than
70 percent of farmer respondents are taken the help of commission agents in selling
their agricultural produce out of that 5960 percent of farmers only satisfied with
services given by commission agents The 74 farmer respondents which constitutes
2960 percent of total sample group neither obtaining any form assistance in
marketing their produce and nor satisfied with services given by them
Table-338
Satisfaction towards Commission Agents
Sl No Level of Satisfaction Service from Commission Agents
Total Yes No
1 Satisfied 104 (5910)
45 (6081)
149 (5960)
2 Unsatisfied 72 (4090)
29 (3919)
101 (4040)
Total 176 (7040)
74 (2960)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
79
Table-339
Defects with Commission Agents
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Favoruable
to buyer 34
(6800) 32
(6808) 33
(6735) 35
(6730) 36
(6923) 170
(6800) 2 High
commission 04
(800) 04
(851) 04
(816) 05
(962) 03
(576) 20
(800) 3 Misguide 10
(1000) 09
(1915) 10
(2041) 10
(1923) 11
(2115) 50
(2000) 4 Lack of
knowledge 02
(400) 02
(425) 02
(408) 02
(385) 00
(000) 08
(320) 5 Others 00
(000) 00
(000) 00
(000) 01
(192) 01
(192) 02
(080) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
Table-340
Commission Paid to Agents
Sl No Particulars Commission Paid to Agents
Total Very Low Very High Average
1 Gulbarga 06 (1200)
18 (3600)
26 (5200)
50 (2000)
2 Bidar 08 (1702)
17 (3617)
22 (4680)
47 (1800)
3 Koppal 06 (1224)
17 (3469)
25 (5102)
49 (1920)
4 Raichur 06 (1153)
19 (3654)
27 (5192)
52 (2080)
5 Bellary 04 (769)
19 (3654)
30 (5769)
52 (2080)
Total 30 (1200)
90 (3600)
130 (5200)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
The responses of the farmers regarding the charges of the commission by the
commission agents clearly indicates that the commission agents charges excess
80
amount well above prescribed rate this can be found from the dissatisfaction of
farmers ie 36 percent of sample size Changing more than the prescribed by the act
by the commission agent is one of the marketing malpractices prevalent in the APMC
In general strict vigilance over such marketing malpractice is needed to safeguard the
interest of the farmers It is unfortunate to learn that a very small number of ie 12
percent of the sample group farmers have complained against the high commission
charged by the commission agents At the same time 52 percent ie more than one
half of the total sample size positively favoured towards the commission charges by
the commission agents saying that commission paid is average neither to high or too
low
Table-341
Cost of Cooli to Hamals
Sl No Particulars
Cooli to Hamals Total
Very High Very Low Average 1 Gulbarga 07
(200) 09
(1800) 40
(8000) 50
(2000) 2 Bidar 02
(425) 08
(1702) 37
(7872) 47
(1800) 3 Koppal 02
(408) 08
(1633) 39
(7959) 49
(1920) 4 Raichur 02
(385) 09
(1730) 41
(7885) 52
(2080) 5 Bellary 01
(192) 09
(1730) 42
(8076) 52
(2080) Total 08
(320) 43
(1720) 199
(7960) 250
(10000) Source Field survey Note Figures in bracket indicates percentage to total Table 341 depicts the cost of cooli paid to hamal in the market yard Hamals
are working in the APMC for loading and unloading of agriculture produce Farmer
respondents were satisfied with the cost of cooli to hamal it constitute 7960 percent
of total sample size only 320 percent of total told that hamals are charged high cooli
and 1720 percent of them totally satisfied with the charges paid to hamals Table 341
gives the level of satisfaction towards the services given by hamals Large number of
farmers are partly satisfied which constitute 6080 percent 376 percent fully satisfied
81
and 240 percent not at satisfied It is suggestible to the APMC to take measures to
control the hamals and their services to farmers
Level of Satisfaction with Hamals Services
Table-342
Level of Satisfaction with Hamals Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (3800)
30 (6000)
01 (200)
50 (2000)
2 Bidar 17 (3617)
29 (6170)
01 (213)
47 (1800)
3 Koppal 18 (3673)
28 (5714)
03 (612)
49 (1920)
4 Raichur 19 (3654)
32 (6153)
01 (192)
52 (2080)
5 Bellary 21 (4038)
33 (5962)
00 (000)
52 (2080)
Total 94 (376)
150 (6080)
06 (240)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Cooperation from APMC Officials
Along with the services from different market functionaries to farmers
cooperation from the APMC officials is also very important to farmers to boost their
psychological factors to bring their agricultural produce to APMC yard for sale A
good cooperation definitely creates belongingness in the minds of farmers The data
was collected through questionnaire about the level of satisfaction with the
cooperation from APMC officials and defects with them The information gathered is
shown in Table 343 and 344
82
Table-343
Level of Satisfaction with APMC Officials Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (2021)
08 (2105)
23 (1949)
50 (2000)
2 Bidar 17 (1809)
06 (1579)
24 (2033)
47 (1880)
3 Koppal 16 (2021)
05 (1315)
28 (2373)
49 (1960)
4 Raichur 20 (2127)
10 (2632)
22 (1864)
52 (2080)
5 Bellary 22 (2340)
09 (2368)
21 (1780)
52 (2080)
Total 94 (3760)
38 (1520)
118 (4720)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-344
Defects with APMC Officials
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Non-
cooperative 36
(200) 40
(2222) 40
(2222) 45
(250) 19
(1055) 180
(7200) 2 Favourable to
buyer 42
(1953) 43
(2000) 32
(1488) 41
(1907) 57
(2651) 215
(8600) 3 Laziness 18
(200) 17
(1888) 15
(1667) 20
(2222) 20
(2222) 90
(3600) 4 Expect money 08
(200) 06
(150) 05
(1250) 09
(2250) 12
(300) 40
(1600) 5 Improper
market data 14
(200) 13
(1857) 12
(1714) 14
(200) 17
(2429) 70
(2800) 6 Others - - 03
(300) 04
(400) 03
(300) 10
(400) Total 50
(2000) 47
(1880) 49
(1960) 52
(2080) 52
(2080) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
83
Malpractice Experience at APMC Yard
The major malpractices faced by the farmer respondents in the selected
APMCs while selling their agricultural produce in the study area is presented in the
Table 345
Table-345
Farmers Malpractice Experience at APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Inadequate grading
38 40 39 32 46 195
2 Inadequate packing
32 28 17 31 46 137
3 Unfavourable weightment
44 43 41 47 46 221
4 Excess samples 18 15 20 14 15 82
5 Inadequate supervision
21 23 28 22 25 119
6 Excess market charges
36 32 38 28 36 170
7 More favourable to buyer
41 42 43 48 49 223
8 Others 05 14 13 09 17 56
Total 50 (200)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The highest percentage of farmer respondents (221) are of the opinion that
unfavourable weighment in the sale is the major malpractice experienced by them
The second highest percentage of farmer respondents who are of the opinion that in
adequate grading by the buyer while selling their produce The third major
malpractice being taking excess market charges by commission agents as arbitrary
deduction in the sale amount of produce The next major malpractice (137) opined by
farmer respondents is regarding inadequate packaging to sale produce The other most
84
dominating and prevailing malpractice was found by the researcher is more
favourable to the buyer and improper weighment of their produce (223) in the market
yard For of respondents specified other malpractices as high wastages and non
payment of amount etc Inspite of all these malpractices affecting of the farmers it is
quite essential for all the APMCs in the study area should take some connective
measures to eliminate such malpractice Since the main purpose of the APMCs is to
regulate all marketing activities In the field study the steps taken by the APMC to
eliminate malpractice as expressed their views by the farmer respondents were
recorded very few percent of farmer respondents are of the opinion that APMC is
excising supervision over the malpractice regarding to selling and pricing the
commodity They also satisfied with the intervention of APMC officials to eliminate
malpractices in weighment grading activities but the farmer respondents were not at
satisfied with the APMC for not taking any steps to eliminate malpractices in payment
of sale price by the buyer to farmers
Disputes in APMC
So many disputes can arise among the farmers traders and middlemen over
the quality the grade the deductions and payment settlement etc The market
committees settles such disputes so the farmers as well as middlemen may not waste
their time and marketing in the court
During the field study the researcher has investigated to find out the opinion
of the farmers for main causes of disputes in the APMC yard The compiled
information is presented in the following Table 346
85
Table-346
Causes for Disputes in APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Price of produce
23 (2054)
20 (1786)
21 (1875)
24 (2143)
24 (2143)
112 (4480)
2 Quality of produce
10 (1786)
08 (1429)
05 (892)
11 (1964)
22 (3928)
56 (2240)
3 Weightment 30 (1974)
31 (2039)
32 (2105)
28 (1842)
31 (2039
52 (6080)
4 Timing of payment
37 (1989)
38 (2043)
40 (2150)
32 (1720)
39 (2096)
186 (7440)
5 Grading of produce
08 (1509)
10 (1887)
07 (1320)
11 (2075)
17 (3207)
53 (2120)
6 Warehousing 05 (1250)
08 (200)
07 (1750)
06 (1500)
14 (350)
40 (1600)
7 Others 18 (200)
15 (1667)
24 (2667)
25 (2777)
08 (888)
90 (3600)
Total 50 (2000)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Majority of respondents have disputes with commission agents as well as the
traders and few of them have disputes with hamals From the Table 346 it could be
seen that one of the major reasons for dispute being untimely payment (Delay in
payment) to farmer ie seller of agricultural produce Nearly more than half of the
respondents (7440) have opined that they are not being paid as per the provisions of
Act ie immediately after the sale of produce The next major causes of dispute being
weighment of produce Marketing three fifth of the respondents are not happy with
the weighment system prevailing in the market The third major causes of disputes is
being price of the produce About one third of the respondents (4480) have opined as
determination of the price of produce is also one of the major factor for the disputes
The other reasons of the disputes in the APMC yard in the Gulbarga division was
86
found are regarding quality of produce (2240) warehousing (1600) as determined by
farmers Very few of respondents feel that there is no reasons for disputes in the
APMC yards
As far as settlement of disputes are concerned farmer respondents are
preferred for settlement of disputes with traders at the level of secretary of the APMC
A part from that they also some time preferred to solve disputes through the dispute
committee where disputes are settled by arbitration Only 5 percent of the farmer
respondents from the sample size are of the opinion that disputes are settled by the
court of law In Gulbarga division of APMC maximum disputes were settled at
secretary level it calls for efficient secretaries in APMCs
Farmers respondents were also asked about the level of satisfaction in
settlement of disputes Nearly more than 40 percent of respondents are satisfied with
settlement of disputes However 30 percent of respondents are not fully satisfied with
settlement of disputes rest of the sample group were not given any response in this
regard
Quality of Services in APMC Yard
The sale of the agricultural produces by the farmers in the APMC yard
depends on the various services and their quality provided by the APMCs to the
farmers It is the true that if the services provided by APMCs to farmers are very
good large number of farmers bring their produce to the APMC market for sale
instead of open markets This definitely attracts more number of traders and market
functionaries to the market This results an impetus in getting not only good price for
their produce but also a competitive cost to the traders The farmer respondents were
asked to assess the quality of market services provided by the APMCs the responses
of respondents who expressed their level of satisfaction and dissatisfaction to different
facilities provided is presented in the following table
87
Table-347
Quality of Services at APMC
Quality of Services Name of APMC
Total Gulbarga Bidar Koppal Raichur Bellary
Very good 04 (200)
04 (200)
04 (200)
03 (150)
05 (250)
20 (80)
Good 41 (2930)
38 (1881)
40 (1980)
42 (2079)
41 (2029)
202 (808)
Bad 02 (250)
01 (1250)
01 (1250)
02 (250)
02 (250)
08 (320)
Very bad 01 (200)
01 (200)
02 (200)
01 (200)
-
05 (20)
Either bad good 02 (1333)
03 (200)
02 (1333)
04 (2667)
04 (2667)
15 (600)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total It could be observed from the above Table 347 that 8080 percent of farmer
respondents are of the opinion that the quantity of services provided by the APMC is
good 320 percent of total sample size of farmer respondents are if the opinion that it
is bad and 80 percent of the respondents are of the opinion that it is very good It is
to say satisfy that 8880 percent of farmer respondents are of the opinion that the
service provided by APMC is good and above average Hardly 520 percent of the
respondents expressed that the service provided are bad or very bad and 60 percent of
them neither opinioned bad nor good ie they were neutral
88
Table-348
Customary Deduction
Name of the APMCs As per Bye Laws More than Bye Laws Total
Gulbarga 05 (100)
45 (900)
50 (200)
Bidar 04 (851)
43 (9149)
47 (188)
Koppal 05 (1020)
44 (8980)
49 (1960)
Raichur 05 (961)
47 (9039)
52 (2080)
Bellary 07 (1346)
45 (8654)
52 (2080)
Total 26 (1040)
224 (8960)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
The study was conducted to know the farmers responses towards the
customary deductions from the sale of agricultural produce Sample groups were
given option whether customary deductions were as per bye laws or more than bye
laws Large number of farmer ie more than 89 of sample size were strongly
opinioned that customary deductions were not according
89
CHAPTER-IV PERFORMANCE EVALUATION OF APMCs
All the regulated markets working in Karnataka are distinct organization
created under the special clause with the objective of bringing the socio-economic
changes not only in the agricultural marketing sector but also economy as a whole
The existence of regulated markets creates an environment that is more favourable to
the existence of competitive conditions and to bring about the harmonious relations
between the farmers and market functionaries These organizations have the special
features as compared with the other organizations so the service of funds of regulated
markets and uses of the regulated market would be different keeping this the
following para attempted to analyze their financial performance in terms of their
profit position and growth in profit income position expenditure position and other
relevant financial aspects
A) Sources of Income of Regulated Markets
As far as regulated market are concerned they are non-profit or non-trading
organizations established with the objective of providing marketing services facilities
and other amenities for the producer of agricultural products who is in need of these
services for the facilitation of the sale of their produce To ensure smooth and
efficient services to farmer seller APMCs are required to own their establishments
and staff such as commission agent trader hamal and others who are carrying out
various markets functions ie grading processing weighment etc Hence APMCs
need finance to meet their administrative and management expenses of a recurring
and non-recurring nature of expenses The basic infrastructures are needed in the
provision of amenities and other facilities requiring capital investment for creating
these facilities in the market yard Establishment of infrastructure facilities not only
enough but also they need to be maintained the SC maintenance expenses is of
recurring in nature APMCs also need to have the permanent staff to do all the
functions in the market yard involves the fixed expenditure in the form of salaries
wages etc This necessitates the APMCs to have the permanent and regular sources of
income to meet all these regular expenses of fixed in nature and some portion of
recurring expenditure
90
APMCs are also required to meet the recurring expenditure such as
maintenance of road expenditure building godowns market yard vehicles and
machinery After the initial investment in these facilities from the borrowed capital
APMCs need to make payment of interest on loans tax charges payment of salaries
printing and stationery etc are to be paid periodically The different sources of
incomes through which the APMCs are earning revenue are shown in the following
parts along with the various expenditures by the APMC in the market yard
I) Market Fees
The APMCs Act and other laws relating to the agricultural marketing has
authorized all the regulated markets to levy and collect the market fees on the
agricultural produce bought for sales in the market yard The collection of the market
fees is the major source of income to the market committee and also the major source
of finance which determines to a very great extent the pace of development of market
yards both in terms of facilities and infrastructure
In traditional agricultural marketing market fees were collected on the basis of
the quantity bought for sale but these days the Acts and rules have been amended
more suitably giving maximum power to market committee to collect market fees on
the advalorem basis The chief items of the marketing charges are the market fee that
should be paid to the market committee the weighment fee commission brokerage
hamali charges and grading charges etc
In Karnataka in the beginning the market fees imposed on the buyers at the
rate not exceeding 30 paise per Rs100- of produce bought The APMC Act was
amended in 1973 August by an ordinance and the market fee to be levied was raised
to one rupees and the ordinance was however replaced by an act The rate of market
fees on every arrivals of cattle is Rs5- for each animal and rupee one for every sheep
and goats
The act also given some provisions for cooperative society doing business
within the market yard market fees shall be imposed and collected at the rate of 80
paisa per Rs100- of produce bought whereas in case of any other traders it is at the
91
rate of one percent on their total purchases ie one rupees per 1000 rupees This may
be considered as the cause for slow growth of agricultural marketing in Karnataka in
general and Gulbarga division in particular
II) License Fees
The various market functionaries who are operating in the regulated markets
of the state are the commission agents trader broker store keeper grader stockiest
importer exporter and any other functionary are imposed licence fee by the market
committee The license fee is the second main source of income to regulated market
This fee is collected in lum-sum as specified in the APMC act annually from each
applicant The total sum of income from license fees depends on the number of
market functionaries and the rate of license fee for various categories of market
functionaries
APMCs are authorized by KAPM (I) Act 1966 to impose and collect the
license fees from each category of market functionaries The maximum license fee
that could be levied under the act by the market committee on different types of
functionaries are Rs200 from traders and commission agents Rs100- each from
broker processor exporter importer ginner and crusher Rs25- from retail trader
and a nominal amount of Rupees 5 from hamal or cart man
III) Penalty
Penalties for evasion of payment of fee are imposed by the market
committees Section 65 (A) or KAPM Act 1966 empowers the regulated market
committee to punish with fine of not less than 12 percent But this penalty should not
exceed 30 percent on the amount of market fee If the penalty is not paid within the
specified time under bye laws made under section 65 of the act in it desecration also
recover similarly and pay over to the market committee or the board such amount
IV) Other Income Sources
APMCs collect market fees license fees and penalty from defaulters the
market committees are also generating the incomes from the following sources
a) Income from own properties
b) Income from deposits
92
c) Sale of books and forms
d) Sale of grass and cow dung
e) Fire fighter rent
f) Transfer fees and registration fees
g) Sale of plots etc
1) Income Position of Selected Regulated Markets
The income information of 15 APMCs ie three APMCs from each districts
in Gulbarga division were collected by the researcher from their annual reports and
other financial statements The component of the various income sources and their
respective figures provide a good insight to their financial performance The trends in
the growth of total incomes and individual incomes over a five year study period ie
2009-10 to 2013-14 helps in understanding the performance of all the selected
APMCs
I) Income Position of Gulbarga APMC
The income position of selected APMCs in Gulbarga district over the five
years study period are shown in the Table 41 below
Table 41 reveals a steady growth in income to the Gulbarga APMC in all the
years of study Conspicuously the total income from all sources to APMC was
Rs21976lakhs in 2009-10 while it was increased to 87054 lakhs in 2013-14 with a
annual aggregate growth of 5922 percent over the previous years When we look at
the figures of market fees holds the lions share in contributing income which range
between 8605percent to 9294 percent The same fact was also found in the APMC
Shorapur and APMC Shahapur In APMC Shorapur the percentage of market fees in
total income was in between 8420 percent to 9745 percent In case of Shahapur
APMC it ranges between lowest 6422 percent to highest of 6610 percent The other
major sources from where the APMC generated income were license fees levy and
licence fee penalty and other incomes generated was in total percentage fall between
906 percentage to 1995 percent in Gulbarga APMC In Shahapur and Shorapur
APMC penalty income was negligible it was Rs 031 lakhs to Rs 891 lakhs in
Shorapur APMC and Rs 126 lakhs to Rs 563 lakhs in Shahapur APMC during the
period under study
93
Table-41
Statement of Income of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 25106
(8605) 27111 (8763)
39233 (9155)
68713 (9294)
79170 (9094)
2 License Fees 321 (110)
487 (157)
561 (130)
664 (089)
733 (084)
3 Levy and License Fee 2069 (709)
1822 (58)
1981 (462)
2055 (277)
2382 (273)
4 Penalty 1180 (404)
642 (207)
519 (121)
625 (084)
1177 (135)
5 Interest on Deposits and other Income
500 (172)
574 (293)
558 (132)
1575 (256)
3592 (414)
Total 21976 (100)
30936 (100)
42852 (100)
73932 (100)
87054 (100)
Sl No APMC Shorapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 6012
(9039) 5647
(9281) 9607
(9745) 11365 (9079)
18674 (8420)
2 License Fees 104 (156)
106 (174)
078 (079)
117 (093)
117 (052)
3 Levy and License Fee 128 (192)
120 (197)
054 (054)
338 (270)
486 (219)
4 Penalty 200 (300)
101 (166)
031 (031)
206 (164)
891 (401)
5 Interest on Deposits and other Income
207 (313)
110 (182)
088 (011)
491 (394)
2008 (908)
Total 6651 (100)
6084 (100)
9858 (100)
12517 (100)
22176 (100)
Sl No APMC Shahapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1436
(8422) 1563
(7854) 1722
(7163) 3888
(7793) 5812
(6610) 2 License Fees 080
(469) 114
(572) 219
(910) 250
(501) 679
(772) 3 Levy and License Fee 034
(199) 042
(211) 0158 (657)
269 (539)
1071 (1218)
4 Penalty 126 (739)
183 (919)
196 (815)
204 (408)
563 (640)
5 Interest on Deposits and other Income
029 (171)
088 (444)
109 (455)
378 (759)
667 (76)
Total 1705 (100)
1990 (100)
2404 (100)
4989 (100)
8792 (100)
Source Annual reports of APMC Gulbarga 2009-10 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
94
It can be concluded from the above three APMCs in Gulbarga district that
Gulbarga APMC leading first in generating income Shorapur APMC is in second
position followed by APMC Shahapur
II) Income Position of Bidar APMC
Three APMCs from the Bidar district were selected for the comparative study
The income level of these three APMCs for the five years research period is presented
in the Table 42
The income generated by the APMC Bidar was lower in the beginning years
of research period ie it was Rs 18275lakhs in 2009-10 Rs16443 lakhs in 2010-11
and Rs17575 lakhs in 2011-12 During end years of research period it increased to
Rs31805 lakhs in 2012-13 and Rs 30420 lakhs in 2013-14 A critical look of the
figures in all the years of selected APMCs in Bidar district indicates that market fees
was the major component of total income of APMC which comprises an approximate
of 7910 percent in lowest side and 9554 percent in highest side Lowest market
fees percentage was recorded in APMC Aurad during 2012-13 and the highest
percentage was registered in 2013-14 in AMPC Bidar
95
Table-42
Statement of Income of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 16744
(9162) 15043 (9148)
15593 (8870)
29256 (9198)
29065 (9554)
2 License Fees 486 (265)
363 (220)
436 (248)
688 (216)
577 (1089)
3 Levy and License Fee 320 (175)
239 (145)
334 (190)
477 (149)
338 (111)
4 Penalty 600 (328)
466 (283)
515 (293)
719 (226)
202 (066)
5 Interest on Deposits and other Income
125 (070)
332 (204)
697 (397)
665 (211)
238 (08)
Total 18275 (100)
16443 (100)
17575 (100)
31805 (100)
30420 (100)
Sl No APMC Bhalki 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1424
(8431) 1232
(8999) 2423
(8846) 3596
(8304) 5871
(8544) 2 License Fees 096
(568) 081
(591) 163
(595) 293
(676) 306
(445) 3 Levy and License Fee 123
(728) 021
(153) 043
(156) 189
(436) 214
(311) 4 Penalty 022
(130) 017
(124) 034
(124) 138
(318) 222
(323) 5 Interest on Deposits and other
Income 024
(143) 018
(133) 076
(279) 114
(266) 258
(377)
Total 1689 (100)
1369 (100)
2739 (100)
4330 (100)
6871 (100)
Sl No APMC Aurad 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 903
(8014) 886
(8478) 887
(8431) 1333
(7910) 1617
(7922) 2 License Fees 093
(825) 081
(775) 083
(788) 123
(729) 132
(646) 3 Levy and License Fee 055
(488) 054
(516) 052
(494) 118
(700) 181
(886) 4 Penalty 006
(053) 004
(038) 012
(114) 051
(302) 050
(241) 5 Interest on Deposits and other
Income 069
(615) 020
(193) 018
(173) 060
(359) 061
(302)
Total 1126 (100)
1045 (100)
1052 (100)
1685 (100)
2041 (100)
Sources Annual reports of APMCs Bidar for 2003- 04 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
96
The other major sources contributing to the income of the APMCs in Bidar
district were license fee which was 646 percent to 625 percent in Aurad APMC
445 percent to 676 percent in APMC Bhalki and 216 percent to 1089 percent in
Bidar district APMCs The total income of Bhalki APMC was not constantly
increased during the study period It was fell to Rs 1369 lakhs in 2010-11 but it
increased during last three years of research period reached to Rs 6871 lakhs in
2013-14 As far as APMC Aurad is concerned it was inceased only in 2012-13 and
2013-14 As far as APMC Aurad is concerned it was increased only in 2012-13 and
2013-14 It was fall in 2010-11 and 2011-12 ie Rs 1045 lakhs and Rs 1052 lakhs
respectively It can be seen in table 42
III) Income Position of Koppal APMC
The statement of income of selected APMCs in Koppal district for the five
years ie 2009-10 to 2013-14 are given in table 43 The income of Koppal APMC
Gangavati APMC and Kustagi APMC were collected and analyzed in the following
paragraphs
The income generation in each of the five years by the APMCs selected as
sample in Koppal district was in APMC Koppal it was between Rs 3709 lakhs in
2009-10 to Rs 11032 lakhs in 2013-14 In APMC Gangavati a recorded
performance was found in earning incomes ie Rs 51692 lakhs in 2009-10 increased
rapidly to Rs91123 lakhs in 2013-14 APMC Kustagi was found to be least
performance in generation of the income The highest income was colleted by it was
Rs 3346 lakhs in 2013-14 and lowest was found in 2009-10 ie Rs 1341 The
annual aggregate growth in income generation by Koppal APMC was 3948 percent
per year The overall growth in APMC Gangavati income was 7628 percent over the
beginning year of research period The overall growth of percentage in the income of
APMC Kustagi during the five years study period was 14952 percent
97
Table-43
Statement of Income of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3269
(8813) 4072
(6961) 5675
(9119) 5682
(8775) 10021 (9083)
2 License Fees 090 (242)
110 (188)
101 (162)
097 (149)
106 (096)
3 Levy and License Fee 062 (167)
193 (329)
133 (213)
187 (288)
207 (187)
4 Penalty 104 (280)
211 (360)
146 (234)
178 (271)
255 (231)
5 Interest on Deposits and other Income
184 (498)
1263 (2162)
168 (272)
331 (517)
443 (403)
Total 3709 (100)
5849 (100)
6223 (100)
6475 (100)
11032 (100)
Sl No APMC Gangavati 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 49044
(9487) 67016 (9724)
75834 (9692)
74674 (9363)
84042 (9223)
2 License Fees 236 (045)
287 (042)
311 (039)
303 (038)
569 (062)
3 Levy and License Fee 703 (135)
515 (074)
807 (103)
716 (089)
1038 (114)
4 Penalty 189 (036)
212 (030)
267 (034)
258 (032)
317 (034)
5 Interest on Deposits and other Income
1520 (297)
887 (130)
1020 (142)
3804 (478)
5157 (567)
Total 51692 (100)
68917 (100)
78239 (100)
79755 (100)
91123 (100)
Sl No APMC Kustagi 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1214
(9052) 1234
(9167) 1384
(8216) 2079
(8266) 2516
(7519) 2 License Fees 024
(178) 029
(215) 031
(184) 036
(143) 041
(122) 3 Levy and License Fee 014
(104) 016
(118) 026
(154) 055
(218) 063
(188) 4 Penalty 001
(007) 001
(007) 003
(017) 007
(027) 018
(054) 5 Interest on Deposits and other
Income 088
(659) 066
(493) 240
(1429) 338
(1346) 708
(2117)
Total 1341 (100)
1346 (100)
1684 (100)
2515 (100)
3346 (100)
Sources Annual reports of APMCs Koppal for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
98
The glance at the each income figures with respect to three APMC in Koppal
district reveals that market fees again dominant ie 6961 percent to 9724 percent to
total income of the APMC Other important heads from which the income was
derived were license fee 096 to 242 in Koppal APMC 038 to 062 in
APMC Gangavati and 122 to 215 in APMC Kustagi during the period under
consideration ie 2009-10 to 2013-14 The penalty fees collected by the APMC
Kustagi and APMC Gangavati were almost below one percent to total income and this
was above 2 percent in APMC Koppal A sizeable income ie 498 percent to 2117
percent has also been contributed under the head interest on deposits and other
income The trend in this income was more or less similar during all the years of
research period
IV) Income Position of Raichur APMC
The income position and growth in income position of selected APMCs in
Raichur district was presented in the Table 44 The income was shown for the study
period ie 2009-10 to 2013-14 Riachur is considered to be a commercial street the
volume of business is high as compared to the Lingasugur Sindnoor APMC has
acquired a good position in the Raichur district as compared to other APMC in the
district
Table 44 gives the various incomes acquired by the selected APMC in the
Raichur district Raichur as a commercial centre there would be large number of
market functionaries and large volume of transactions Hence the total income of the
market was obviously quite high (around Rs120202 lakhs annually) During 2009-10
the total income of APMC Raichur was Rs 48932 lakhs APMC Sindnoor was Rs
20629 lakhs and APMC Lingasugur was just Rs 2907 lakhs It was shown an
increasing trend in all the three APMC selected in Raichur district during all the five
years of research period Income was found in the year 2013-14 in the sample APMC
from Raichur district Income from the other sources ie penalty interest on deposits
sale of shops godowns and sale of books and forms were much higher as compared to
the corresponding incomes in the other years of study Such an increase in the total
income was noticed in the Table 44
99
Table-44
Statement of Income of Selected APMCs in Raichur District
(Rs In lakhs)
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 45972
(9395) 55687 (9542)
68293 (9491)
82847 (8275)
106917 (8894)
2 License Fees 314 (064)
326 (056)
335 (046)
336 (033)
347 (028)
3 Levy and License Fee 1218 (248)
1463 (250)
1525 (211)
1540 (153)
1617 (134)
4 Penalty 218 (044)
250 (040)
269 (037)
289 (028)
313 (026)
5 Interest on Deposits and other Income
1210 (249)
630 (110)
1528 (215)
15105 (1511)
11008 (918)
Total 48932 (100)
58356 (100)
71950 (100)
100117 (100)
120202 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 18106
(8776) 21418 (9410)
28650 (9523)
33937 (7914)
45905 (9281)
2 License Fees 212 (102)
209 (091)
238 (079)
226 (052)
258 (052)
3 Levy and License Fee 1029 (498)
658 (1289)
613 (203)
1569 (365)
1292 (261)
4 Penalty 819 (396)
309 (135)
386 (128)
2080 (485)
1108 (224)
5 Interest on Deposits and other Income
464 (228)
166 (075)
197 (067)
5069 (1184)
892 (182)
Total 20629 (100)
22760 (100)
30084 (100)
42881 (100)
49456 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 2016
(6934) 2361
(6367) 3457
(5687) 3702
(5632) 4221
(5582) 2 License Fees 084
(288) 161
(434) 219
(360) 379
(576) 397
(521) 3 Levy and License Fee 493
(1695) 552
(1488) 817
(1344) 871
(1325) 1017
(1344) 4 Penalty 032
(110) 064
(172) 186
(306) 213
(324) 286
(378) 5 Interest on Deposits and
other Income 282
(973) 570
(1539) 1399
(2303) 1408
(2143) 1641
(2172)
Total 2907 (100)
3708 (100)
6078 (100)
6573 (100)
7562 (100)
Sources Annual reports of APMCs Raichur for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
100
In order to see the composition of the total revenue of Raichur Sindnoor and
Lingasugur APMCs the income statement of 2009-10 to 2013-14 was considered A
detailed analysis at the figures in the table 44 indicates that a market fee was the
major contributor to the total income which contributed to the tune of 5582 percent
to 9542 percent The other major sources of revenue to the APMC are interest on
deposits (182 to 2172) Penalty income was contributed average in APMC
Sindnoor moderate in APMC Raichur and minor contribution in APMC Lingasugur
V) Income Position of Bellary APMC
In Bellary district development activities undertaken by the department of
agriculture are about increasing yield of kharif season and other seasons under
irrigation this has naturally increased the market turnover in the Bellary district
APMC The details of the income collected by the sample APMCs in Bellary district
is shown in the Table 45
Table 45 gives the details of an account of income of the APMCs selected
from the Bellary district for the analysis purpose A birdsrsquo eye view of the total
income figures during financial years indicate that the annual average income of the
APMC of Bellary was around Rs 33660 lakhs except during the first three years of
the study period The market fees collected during the study years was also ranged in
between the 8165 in 2009-10 to 8942 in 2013-14 Levy and license fees were
contributed to the extent of 306 to 806 to total income and penalty amount was
just only to 075 to 462 to total incomes
101
Table-45
Statement of Income of Selected APMCs in Bellary District
(Rs In lakhs)
Sl No APMC Bellary 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 13400
(8165) 19398 (8680)
24037 (8514)
35774 (8865)
54510 (8942)
2 License Fees 316 (192)
343 (153)
0392 (139)
399 (098)
346 (056)
3 Levy and License Fee 1323 (806)
1529 (684)
2001 (708)
1912 (473)
1870 (306)
4 Penalty 320 (194)
370 (165)
462 (163)
451 (111)
458 (075)
5 Interest on Deposits and other Income
1052 (643)
706 (318)
1338 (476)
1816 (453)
3775 (621)
Total 16411 (100)
22346 (100)
28230 (100)
40352 (100)
60959 (100)
Sl No APMC Hospet 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3458
(8051) 4335
(7629) 5075
(7924) 5561
(8158) 6811
(7884) 2 License Fees 089
(207) 086
(151) 097
(151) 108
(158) 132
(152) 3 Levy and License Fee 407
(948) 592
(1041) 636
(993) 663
(972) 892
(1032) 4 Penalty 041
(095) 166
(292) 215
(335) 217
(318) 289
(334) 5 Interest on Deposits and
other Income 300
(699) 503
(887) 381
(597) 267 (39)
515 (598)
Total 4295 (100)
5682 (100)
6404 (100)
6816 (100)
8639 (100)
Sl No APMC Siraguppa 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 9054
(9160) 11330 (9131)
25909 (9352)
31838 (9237)
45500 (8285)
2 License Fees 068 (068)
071 (057)
107 (038)
108 (031)
105 (019)
3 Levy and License Fee 363 (367)
341 (274)
491 (177)
492 (142)
535 (097)
4 Penalty 019 (019)
047 (037)
054 (019)
089 (026)
096 (017)
5 Interest on Deposits and other Income
381 (386)
619 (501)
1143 (414)
1939 (564)
8676 (1582)
Total 9885 (100)
12408 (100)
27704 (100)
34468 (100)
54912 (100)
Sources Annual reports of APMCs Bellary for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
102
As far as APMC Hospet and APMC Siraguppa are considered the market fees
collected by these APMCs were became major sources of income followed by levy
and license fees and penalty It is noticed from the same table that APMC Siraguppa
has made history in generation of income during 2012-13 and 2013-14 ie it earned
Rs 34468 lakhs and 54912 lakhs incomes respectively Almost the income was
jumped five times to beginning year income ie 9885 lakhs This clearly carries the
message that APMC Siraguppa was not performed consistency in financial
performance APMC Hospet has ensured stability in the performance but in terms of
amount of collection it was positioned third place in selected APMC in Bellary
district
B) Uses of Incomes by APMCs
1) Market Committee Fund
Incomes received by the market committees in the form of market fees
licence fees and other fees or incomes by way of penalty are used as per the Section
90 of KAPM (R) Act of 1966 All expenditure incurred by the committee under or for
the purposes of this Act shall be defrayed out of the market fund and any surplus
remaining at the close of each market year after such expenditure has been met shall
be credited to the permanent fund of the committee within the three months of the
close of the year and it shall be used only towards incurring the expenditure of
permanent nature such as construction of buildings acquisition of lands or such other
purposes as the Director of Agricultural Marketing may specify
After meeting all such expenditure excess shall be invested in state
cooperative Apex bank or other cooperative banks or government savings banks
account The KAPM (R) Act 1961 clearly defined the purposes for which the market
committee fund may be expanded beyond the above mentioned The fund so created
should be allowed to uses for the purpose laid down in this Act ie providing
facilities in the market areas payment of allowances arrangement of amenities such
as grading and standardization collection and dissemination of market information
settlement of disputes payment of interest on borrowed loans etc
103
II) Contribution to Consolidated Fund
All the marketing committees are bound to contribute some amount to
Karnataka State Agriculture Marketing Board The Director of Agricultural Marketing
estimates the approximate expenditure likely to be incurred by the state government
during a particular financial year an account of salary and other allowances and
election of the members of the market committees Taking all these estimated
expenditures under section 91 of the KAPM Act the Director of Agricultural
Marketing shall by order determine the percentage of gross receipts that every
market committee must and should contribute to the state consolidated fund of the
state
III) Contribution to KSAM Board
Agriculture section 92 of the Karnataka produce marketing Act has made a
provision to create ldquoMarketing Development Fundrdquo and it is managing by the KSAM
board Every market committee is required to contribute every month to the board 5
percent of the gross receipts during the previous calendar month
IV) Other Expenditures
A part from the contribution to market committee fund contribution to state
consolidated fund and contribution to KSAM Board market committees are also
necessary to meet the other expenses regularly such as administration expenses which
includes salary to staffs printing and stationary legal fee advertisement rent
electricity bill and maintenance charges Expenditure to provide amenities to market
functionaries and farmers and other miscellaneous
Expenditure Position of Selected APMCs in Gulbarga District
In this part an effort is made to analyze data relating to the total expenditures
incurred and components of expenditures with respective figures to get the depth of
knowledge about the trends in growth of expenditures over a period of 5 years
between 2009-10 to 2013-14
104
Table-46
Trends in Growth of Expenditure of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga
Years 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 I Contribution to state
consolidated fund 15732 (7016)
13575 (6562)
18231 (7200)
33150 (7215)
35676 (7225)
II Contribution to KSAM board
1933 (862)
1484 (750)
2216 (875)
4024 (876)
4197 (850)
III Administrative expenses 2708 (1208)
2396 (1211)
3076 (1215)
5514 (1200)
6004 (1216)
IV Expenditure on amenities
1713 (764)
1832 (926)
1327 (524)
2532 (551)
2696 (546)
V Miscellaneous 337 (150)
496 (251)
472 (186)
727 (158)
805 (163)
Total 22423 (100)
19783 (100)
25322 (100)
45947 (100)
49378 (100)
2 APMC Shorapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
1359 (4500)
4146 (4052)
4140 (4050)
3340 (3890)
2439 (5220)
II Contribution to KSAM board
473 (1565)
1751 (1711)
1750 (1712)
1556 (1812)
905 (1936)
III Administrative expenses 665 (2216)
2587 (2528)
2581 (2525)
2128 (2478)
1182 (2530)
IV Expenditure on amenities
440 (1458)
1586 (1550)
1534 (1501)
1285 (1496)
107 (228)
V Miscellaneous 079 (261)
070 (159)
005 (212)
277 (324)
040 (086)
Total 3020 (100)
10234 (100)
10223 (100)
8586 (100)
4673 (100)
3 APMC Shahapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
363 (4801)
703 (6701)
920 (5742)
2480 (6688)
2308 (6454)
II Contribution to KSAM Board
054 (714)
064 (610)
067 (418)
081 (218)
074 (206)
III Administrative expenses 154 (2037)
128 (1220)
252 (1573)
501 (1351)
489 (1367)
IV Expenditure on amenities
065 (860)
072 (686)
143 (892)
263 (709)
258 (721)
V Miscellaneous 120 (1580)
082 (783)
22 (1375)
383 (1034)
447 (1252)
Total 756 (100)
1049 (100)
1602 (100)
3708 (100)
3576 (100)
Source Annual reports of APMC Gulbarga for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
105
As that of the income position the analyses of the pattern of expenditure also
important as the functions of the regulated markets are constrained by the financial
limitations Here the study of expenditure dimension of regulated market was felt
necessary The pattern of the growth in expenditure has shown a steady pace during
2012-13 and 2013-14 in APMC Gulbarga It was very lowest in 2010-11 ie 19783
lakhs The major items of expenditures to which Gulbarga APMC Shorapur APMC
and Shahapur APMC were diverted include contribution to state consolidated fund
expenditure on amenities and contribution to KSAM board During the research
period the share contribution to state consolidated fund was ranged between 6562
to 7223 in Gulbarga APMC this percent of share in total expenditure was in
between 3590 to 5220 in APMC Shorapur and in APMC Shahapur it was
4801 to 6701 At the same time the contribution to KSAM board was almost
below 20 to total expenditure in all three APMCs selected in Gulbarga district
The administration expenses was found to be second major item of
expenditure in sample units of Gulbarga district It was all most stable in Gulbarga
APMC ie 12 and above 2216 to 25305 in Shorapur APMC and 1220 to
2037 in the Shahapur APMC The other expenses such as the security facilities
rent taxes electricity printing and stationary charges etc remained as minor
expenditure
II) Expenditure position of selected APMCs in Bidar District
The expenditure statement relating to the selected APMCs in Bidar district is
shown in the below Table 47 The percentage of individual expenditure to total
expenditure for the period of five years is also presented in the same table
A glance on the statement of trends in growth of expenditure in the selected
APMC in Bidar district reveals that the Bidar APMC had an annual expenditure
around Rs 145 lakhs In case of APMC Bhalki annual average expenditure was
around Rs 2118 lakhs and in APMC Aurad this amount was Rs 1701 lakhs
106
Table-47
Trends in Growth of Expenditure of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
6600 (7141)
10883 (7016)
8645 (6625)
10623 (6740)
13753 (7267)
II Contribution to KSAM board
1761 (823)
1260 (812)
1370 (1050)
1668 (1058)
1972 (1042)
III Administrative expenses
1382 (1496)
1945 (1254)
1249 (957)
1597 (1013)
2292 (1211)
IV Expenditure on amenities
275 (298)
462 (298)
1019 (781)
986 (568)
759 (401)
V Miscellaneous 225 (242)
961 (620)
766 (587)
888 (621)
149 (079)
Total 9243 (100)
15511 (100)
13049 (100)
15762 (100)
18925 (100)
2 APMC Bhalki 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
503 (5164)
619 (5213)
768 (4931)
1245 (4777)
2284 (5359)
II Contribution to KSAM board
069 (711)
076 (640)
184 (1183)
334 (1281)
889 (2085)
III Administrative expenses
380 (3902)
426 (3586)
547 (3510)
918 (3525)
858 (2013)
IV Expenditure on amenities
011 (112)
031 (265)
041 (260)
087 (335)
189 (444)
V Miscellaneous 012 (211)
036 (296)
018 (116)
023 (082)
042 (099)
Total 975 (100)
1188 (100)
1558 (100)
2607 (100)
4262 (100)
3 APMC Aurad 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
365 (5577)
188 (3067)
256 (3514)
486 (4065)
2185 (4113)
II Contribution to KSAM board
048 (740)
093 (1516)
089 (1219)
182 (1517)
782 (1471)
III Administrative expenses
211 (3210)
186 (3050)
243 (3341)
361 (3016)
1521 (2862)
IV Expenditure on amenities
014 (221)
105 (1725)
121 (1661)
150 (1255)
751 (1415)
V Miscellaneous 018 (252)
041 (642)
019 (265)
018 (147)
074 (139)
Total 656 (100)
613 (100)
728 (100)
1197 (100)
5313 (100)
Source Annual reports of APMC Bidar for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
107
From the table 47 it was clear that administrative expenses constitute 957
to 1496 in total expenses in APMC Bidar it was as high as compared to APMC
Bidar and APMC Aurad ie 2013 to 3902 during the research period In Aurad
the situation was completely different ie it ranged between 2862 to 3341
during the same period ie 2009-10 to 2013-14
The trends in the contribution to state consolidated fund also showed an
increasing and decreasing trend in all the three APMCs in Bidar district during the
plan period In Bidar APMC it was registered lowest contribution to state
consolidated fund in the year 2009-10 ie Rs 6600 lakhs and the highest in Rs
13753 lakhs in 2013-14 Similarly in case of APMC Bhalki lowest was recorded in
2009-10 ie Rs 975 lakhs and highest in the year 2013-14 ie Rs 4262 lakhs But
in APMC Aurad beginning year ie 2009-10 it was Rs 365lakhs decreased to Rs
188 lakhs in 2010-11 and again increased to maximum Rs 2185 lakhs in 2013-14
Apart from a sizeable proportion of expenditure (ie 116 to 961) was made
under the head miscellaneous
III) Expenditure position of selected APMCs in Koppal
The trends in the growth of total expenditure incurred by the sample APMCs
in the Koppal district is presented for the five years period ie 2009-10 to 2013-14 in
the below Table 48
Table 48 depicts the expenditure position of three APMCs selected for the
present study in the Koppal district A detailed analysis of this indicates that the total
expenditures incurred by APMC Koppal were increased through out the study period
from Rs 2217 lakhs in 2009-10 to Rs 6862 lakhs in 2013-14 The same situation
was also found in case of APMC Gangavati ie Rs 29714 lakhs in 2009-10
increased to Rs 54160 lakhs in 2013-14 and in APMC Kustagi total expenditure was
Rs 4015 lakhs in 2009-10 raised to Rs 6295 lakhs in 2013-14
108
Table-48
Trends in Growth of Expenditure of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
1157 (5217)
1522 (5071)
2205 (5316)
2261 (5555)
4023 (5862)
II Contribution to KSAM board
143 (646)
224 (748)
307 (741)
287 (705)
537 (782)
III Administrative expenses
668 (3014)
944 (3147)
1167 (2813)
1101 (2704)
1720 (2506)
IV Expenditure on amenities
226 (1019)
267 (891)
333 (805)
332 (815)
480 (700)
V Miscellaneous 023 (104)
044 (143)
137 (325)
091 (221)
102 (150)
Total 2217 (100)
3001 (100)
4149 (100)
4072 (100)
6862 (100)
2 APMC Gangavati 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
15819 (5324)
23396 (5410)
28621 (5450)
27388 (5470)
29896 (5520)
II Contribution to KSAM board
1902 (640)
2422 (560)
2757 (525)
2753 (550)
3629 (670)
III Administrative expenses
8338 (2806)
12541 (2900)
15807 (3010)
14821 (2960)
15381 (2840)
IV Expenditure on amenities
3310 (1114)
4329 (1001)
4989 (950)
4657 (930)
4604 (850)
V Miscellaneous 345 (116)
558 (129)
342 (065)
451 (090)
650 (120)
Total 29714 (100)
43246 (100)
52516 (100)
50070 (100)
54160 (100)
3 APMC Kustagi 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2168 (5400)
2357 (5610)
2498 (5520)
2647 (5620)
3607 (5730)
II Contribution to KSAM board
225 (560)
189 (450)
288 (660)
363 (770)
535 (850)
III Administrative expenses
1169 (2913)
1195 (2845)
1326 (2930)
1232 (2615)
1711 (2718)
IV Expenditure on amenities
422 (1050)
405 (965)
319 (705)
396 (840)
319 (507)
V Miscellaneous 031 (077)
056 (130)
094 (185)
072 (155)
123 (195)
Total 4015 (100)
4202 (100)
4525 (100)
4710 (100)
6295 (100)
Source Annual reports of APMC Koppal for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
109
When we look at the percentage of specific expenditure in the total
expenditure contribution to state consolidated fund was major component ie in
Koppal APMC 5071 to 5862 in APMC Gangavati 5324 to 5520 and in
APMC Kustagi 54 to 5730 during the plan period However contribution to
KSAM Board constitute an annual average around Rs 3 lakhs per year in APMC
Koppal Rs 2693 lakhs per year in APMC Koppal Rs 2693 lakhs per year in
APMC Gangavati and Rs 32 lakhs per year in APMC Kustagi Administration
expenses also got secondary importance in the expenditure position followed by the
expenditure on amenities in the market yard Miscellaneous expenditure constitutes a
negligible percentage in the total expenditure
IV) Expenditure position of selected APMCs in Raichur
Table 49 depicts the year wise total expenditure spent by the sample
APMCs in the Raichur district during the five years period of study ie 2009-10 to
2013-14 Table 49 reveals that the expenditure incurred by the APMC Raichur was
not constantly increased It was decreased in 2010-11 and 2011-12 indicating that it
was more efficient in control of expenditure but during last two years of plan period it
increased from Rs44965 lakhs in 2009-10 to Rs67431 lakhs in 2013-14 with annual
aggregate growth over pervious year Rs4493 lakhs
In case of Sindnoor APMC the annual growth during the study period was
Rs3835 lakhs over the previous year As far as APMC Linagsugur is concerned this
was Rs 564 lakhs A keen observation on the expenditure statement of selected
APMCs in Raichur district points out that the APMC Raichur has got first rank in
terms of the total expenditure incurred among the selected APMCs in the district
followed by the APMC Sindnoor and APMC Lingasugur respectively As use well
contribution to state consolidated fund remained the dominating expenditure in the
total expenditure followed by expenditure on amenities Administration expenses and
contribution to KASM Board The state consolidated fund which was eaten away the
major position of total expenses (6535) to 7238 in Raichur APMC 5518 to
5730 in APMC Sindnoor and 5518 to 5730 in APMC Sindnoor and 5566 to
600 in APMC miscellaneous expenses remained minor expenses in total expenses
110
Table-49
Trends in Growth of Expenditure of Selected APMC in Raichur District
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 31862 (7086)
24764 (6535)
30247 (7100)
39880 (7238)
21275 (3155)
2 Contribution to KSAM board
3795 (0844)
5135 (1355)
5197 (1220)
6391 (1160)
3539 (525)
3 Administration expenses 5216 (1160)
4036 (1065)
4090 (960)
4849 (880)
(1550)
4 Expenditure on Amenities 2905 (646)
2065 (545)
2185 (513)
3471 (630)
(4210)
5 Miscellaneous 1187 (264)
1894 (500)
882 (207)
508 (092)
(560)
Total 44965 (100)
37894 (100)
42601 (100)
55099 (100)
67431 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 6283
(5655) 7740
(5518) 11182 (5685)
14152 (5690)
17353 (5730)
2 Contribution to KSAM board
833 (750)
1000 (713)
1241 (631)
1644 (661)
1968 (650)
3 Administration expenses 589 (530)
588 (419)
1017 (517)
1300 (523)
1332 (440)
4 Expenditure on Amenities 3350 (3015)
4418 (3150)
5959 (3030)
7496 (3014)
9443 (3118)
5 Miscellaneous 0050 (050)
280 (200)
270 (137)
279 (112)
188 (062)
Total 11111 (100)
14026 (100)
19669 (100)
24871 (100)
30284 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 1102
(5566) 1364
(5818) 2193
(5910) 2674
(6130) 2879
(6000) 2 Contribution to KSAM
board 127
(640) 331
(1431) 382
(1030) 689
(1580) 773
(1612) 3 Administration expenses 159
(804) 144
(614) 394
(1061) 267
(611) 362
(755) 4 Expenditure on Amenities 500
(2530) 483
(2060) 673
(1814) 628
(1440) 710
(1480) 5 Miscellaneous 092
(460) 023
(095) 069
(185) 104
(239) 074
(153) Total 1980
(100) 2345 (100)
3711 (100)
4362 (100)
4798 (100)
Source Annual reports of APMC Raichur for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
111
V) Expenditure position of selected APMCs in Bellary
In the Table 410 the details of the various expenditure incurred by the three
APMCs which are taken for the research as sample in the Bellary district are shown
clearly along with individual expenditure percentage to total
The total expenditure for all the five years of the study and the details of
expenditure under each heads along with the percentage to total of Bellary APMC
indicates that a rapid growth was found in total expenditure ie Rs 8835 lakhs in
2009-10 increased to Rs 33116 lakhs in 2013-14 with compound annual growth
during study years 27482 This compound growth in the APMC Hospet was found
to be negative in 2010-11 and 2013-14 and positive in 2011-12 and 2012-13 In case
of Siraguppa APMC the compound growth was 47147 during research period
112
Table-410
Trends in Growth of Expenditure of Selected APMC in Bellary District
(Rs In lakhs)
Sl No APMC Bellray
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
4477 (5067)
3860 (2767)
4820 (2026)
6933 (2811)
10076 (3042)
II Contribution to KSAM board
746 (844)
643 (461)
1803 (758)
1155 (468)
1679 (507)
III Administrative expenses
3310 (3746)
4673 (3350)
15965 (6711)
16011 (6490)
20499 (6190)
IV Expenditure on amenities
276 (312)
159 (114)
1190 (500)
558 (226)
838 (253)
V Miscellaneous 026 (031)
011 (007)
008 (005)
011 (005)
024 (008)
Total 8835 (100)
13946 (100)
23766 (100)
24668 (100)
33116 (100)
2 APMC Hospet 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2406 (7014)
2210 (7161)
2852 (6562)
2961 (6860)
2460 (7176)
II Contribution to KSAM board
320 (932)
216 (700)
416 (957)
429 (993)
317 (924)
III Administrative expenses
481 (1402)
418 (1354)
425 (978)
402 (931)
418 (1219)
IV Expenditure on amenities
114 (332)
101 (327)
269 (618)
219 (507)
125 (365)
V Miscellaneous 109 (320)
141 (458)
384 (885)
305 (709)
108 (316)
Total 3430 (100)
3086 (100)
4346 (100)
4316 (100)
3428 (100)
3 APMC Siraguppa 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
4088 (5154)
4055 (5011)
7662 (4813)
9122 (4313)
28595 (6310)
II Contribution to KSAM board
564 (711)
544 (672)
1238 (778)
1581 (748)
2626 (579)
III Administrative expenses
3030 (3820)
2903 (3587)
5026 (3157)
6919 (3271)
9763 (2154)
IV Expenditure on amenities
167 (211)
293 (362)
883 (555)
1477 (698)
2888 (637)
V Miscellaneous 082 (104)
297 (368)
1111 (697)
2051 (970)
1452 (320)
Total 7931 (100)
8092 (100)
15920 (100)
21150 (100)
45324 (100)
Source Annual reports of APMC Bellary for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
113
C) Profit Position
Profit is the excess of income over expenditures by the organization Profit is
the best indicator of the performance of any organization Higher the profit higher is
the efficiency and vice-versa APMCs are established not for profit motive but profits
remain important for their survival for future An attempt here is made to know profit
position by taking income and expenditure of all the selected APMCs in the Gulbarga
division and conclusion is drawn about their performance by comparing in APMC
with other APMC and also level of performance during the period under study
Table 411 depicts the year wise income expenditure and profitloss position
of the selected APMCs in the Gulbarga district The income of the three sample
APMCs from the Gulbarga district was shown an upward trend during the research
period ie 2009-10 to 2013-14 expect in the year 2010-11 the APMC Shorapur
income was down to Rs 6084 lakhs from Rs 6651 lakhs in 2009-10 When we see
the expenditure position of all the APMCs in the same table neither it was constantly
increasing or decreasing over a period of time it was showing zigzag trend Expect
the Shahapur APMC remained increasing during the plan period from Rs 756 lakhs
in 2009-10 to Rs 3576 lakhs in 2013-14
114
Table-411
Profit Position of Selected APMC in Gulbarga District
(Rs In lakhs)
Year Gulbarga Shorapur Shahapur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 29176 22423 6753 6651 3020 3631 1705 756 949
2010-11 30936 19783 11153 6084 10234 - 4150 1990 1049 941
2011-12 42852 25322 17530 9859 10223 0364 2404 1602 802
2012-13 73932 45947 27984 12517 8586 3931 4989 3708 1281
2013-14 87054 49378 37676 22176 4673 17502 8792 3576 5216
Source Annual Reports of Gulbarga APMC for 2009-10 to 2013-14
115
The detailed study of profit position of the selected APMC in Gulbarga district
also indicates that Shahapur APMC has made average amount of the profit in research
period without incurring any loss in the same period But APMC Shorapur had made
huge loss in the year 2010-11 ie Rs 4150 lakhs during heavy expenditures As per
APMC Gulbarga is concern profit was increased steadily from Rs 6753 lakhs in
2009-10 to Rs 37676 lakhs in 2013-14 with an annual aggregate growth of Rs 6184
lakhs per year
The Table 412 reveals that the profit or loss position of the selected APMCs
in Bidar district The analysis of profit of above APMCs in the table indicates that
Bidar APMC has positioned first in earning profit among three APMCs followed by
Bhalki APMC and APMC Aurad During the research period APMC Aurad had
incurred to Rs 3271 lakhs in 2013-14 The profit of Bidar APMC was ranged in
between Rs 932 lakhs to Rs 16042 lakhs and APMC Bhalki it was lowest to Rs
181 lakhs to highest Rs 2608 lakhs Both income and expenditure of Bidar APMC
was increased rapidly over a period time But in case of Aurad APMC the degree of
growth of expenditure was greater than the degree of growth in income which
reported slow growth in the profit The situation was different in case of APMC
Bhalki it was opposite and was almost 4 times increased in APMC Bhalki ie from
Rs 714 lakhs to Rs 2608 lakhs profit remained stable in APMC Aurad ie in
between Rs 323 lakhs to Rs 16042 lakhs in APMC Bidar during the period under
consideration
116
Table ndash 412
Profit Position of Selected APMCS in Bidar District
(Rs In lakhs)
Year Bidar Bhalki Aurad
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 18275 9243 9031 1689 975 714 1126 656 469
2010-11 16443 15511 932 1369 1188 181 1045 613 432
2011-12 17575 13049 4526 2739 1558 1181 1052 728 323
2012-13 31805 15762 16042 4330 2607 1722 1685 1197 487
2013-14 30420 18925 11495 6871 4262 2608 2041 5313 - 3271
Source Annual Reports of Bidar APMC for 2009-10 to 2013-14
117
The Table 413 deals with the trends in growth of income expenditure and
profit position of sample group of APMCs from the Koppal district Koppal district
APMCs were considered to be minor APMCs in the Gulbarga division A micro study
of these three APMCs in Koppal district reveals that APMC Gangavati was a leading
APMC in the Koppal district as it made super profit during the research period as
compared to APMC Koppal and AMPC Kustagi APMC Koppal has made average
profit ie Rs 1492 lakhs to Rs 4170 lakhs and APMC Kustagi has made normal
profit ie from Rs 540 lakhs to Rs 3995 lakhs during the five years study period
ie 2009-10 to 2013-14 Increased expenditures in APMC Koppal and APMC
Kustagi was eaten the profit
Profit position of the three APMCs from the Raichur district for the period of
five years ie 2009-10 to 2013-14 is shown in the Table 414 The table clearly
shows the year wise income position and its growth expenditure position and its trend
and the profit trend Among these three APMCs selected in sample from the Raichur
district Raichur APMC has earned highest amount of income which resulted highest
profit during the study period as compared to the APMC Sindhnoor and APMC
Lingasugur The profit of APMC Raichur was Rs20629 lakhs in 2009-10 increased
to Rs 45018 lakhs in 2013-14 during the research period During the same period
the profit of APMC Sindhnoor was increased from Rs 9518 lakhs to Rs 19171
lakhs and APMC Lingasugur from Rs 1327 to Rs 2201 lakhs with percentage
growth of almost 100 and 9026 respectively
118
Table-413
Profit Position of Selected APMCs in Koppal District
(Rs In lakhs)
Year Koppal Gangavati Kustagi
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 3709 2217 1492 51692 29714 21977 1185 645 540
2010-11 5849 3001 2848 68917 43246 25671 1346 775 571
2011-12 6223 4149 2074 78239 52516 25722 1684 1005 679
2012-13 6475 4072 2403 79755 50070 29684 2514 1469 1045
2013-14 11032 6862 4170 91123 54160 36963 10291 6295 3995
Source Annual Reports of Koppal APMC for 2009-10 to 2013-14
119
Table-414
Profit Position of Selected APMCs in Raichur District
(Rs In lakhs)
Year Raichur Sindnoor Lingusugur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 40895 19035 21859 20629 111111 9518 3761 2434 1327
2010-11 48932 44965 3966 22760 14026 8734 2907 1980 926
2011-12 58356 37894 20462 30084 19669 10414 3708 2345 362
2012-13 71950 42601 29348 42881 24871 18009 6078 3711 2367
2013-14 100117 55099 45018 49455 30284 19171 7562 4362 2201
Source Annual Reports of Raichur APMC for 2009-10 to 2013-14
120
The Table 415 reveals the year wise profit made by the sample APMCs in the
Bellary district APMC Hospet has made least profit during all five years research
period but it increased from Rs 864 lakhs in 2009-10 to Rs 5211 lakhs in 2013-14
APMC Bellary had achieved significant progress in earning profit as compared to
APMC Siraguppa The profit of APMC Bellary steadily increased around 4 times
over the beginning year ie Rs 7576 lakhs in 2009-10 to Rs 27843 lakhs in 2013-
14 But the APMC Sirguppas profit was highest recorded in 2011-12 and 2012-13 ie
Rs 11784 lakhs and Rs 13315 lakhs respectively
121
Table-415
Profit Position of Selected APMCS in Bellary District
(Rs In lakhs)
Year Bellary Hospet Siragoppa
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 16411 8835 7576 4295 3430 864 9885 7931 1954
2010-11 22346 13946 8399 5682 3086 2596 12408 8092 4316
2011-12 28230 23786 4444 6404 4346 2058 27704 15920 11784
2012-13 40352 24682 15670 6816 4316 2499 34466 21150 13315
2013-14 60959 33116 27843 8639 3428 5211 59912 45324 9587
Source Annual Reports of Bellary APMC for 2009-10 to 2013-14
122
CHAPTER-V FINDINGS SUGGESTIONS AND CONCLUSION
FINDINGS
1 During field study the researcher found that all the APMCs working in
Gulbarga division are suffered storage facilities in general and cold storage
facilities in particular This calls for medium and big producers to take storage
facilities by paying heavy fees to private service provider
2 The field investigation resulted that the farmers have been experienced
difficulties in getting timely payment even after the sale of their produce
3 It is learnt from the field study of market participant that larger participant
were qualified upto secondary and the technical qualification such as ITI
Diploma etc Education among market participant is considered to be most
significant factor in discharging their duties and responsibilities more
efficiently and effectively
4 The analysis of nature of participant in the agricultural market revealed that
commission agents were dominant in the total market participant followed by
traders with 25 of sample group and Hamalas which constitute 16 of
sample size
5 Macro studies of facilities at the APMC yard in five districts of Gulbarga
division opinioned the lack of facilities ie Non-availability of drinking water
canteen transport and communication facilities etc One sample lsquoTrsquo test was
applied and the result shows that lsquotrsquo values ranged for above facilities between
46425 to107000 Mean difference was found between 14400 to 2000
6 The correlation between two variable ie advance money and number of
commodities was +0611 which is insignificant Similarly the correlation
between transport facility and role of government in market and graduation
facility with more representatives from farmers resulted 0445 and 0948 also
in significant but the only significant factor found between difficulty of
storage and increase in facilities with a value of 0508
7 There are different sources of incomes available to APMC These sources may
be classified like market fees licence fees penalty etc Among these sources
123
of income market fees collected by APMC were major but other incomes are
also envisaged in KAPM (R) Act 1966
8 The expenditure position of the selected APMCs in Gulbarga division which
covers five districtrsquos found that major use of expenditure by each APMCs
were contribution to state consolidated fund and contribution to KSAM Board
which was ranged between 3042 to 7210 and 564 to 2630
respectively
9 There are only three charges allowed for deduction from the sale produced of
farmers in Gulbarga APMC division they are commission to agents Hamali
and weighment Field investigation by researcher found that these charges are
nominal
SUGGESTIONS
1 To achieve its (APMC Act) objectives and for effective implementation of its
bye law and policies it is suggested that APMCs should open its branches at
Hobli level so that they may help and guide the formers in marketing of their
grown agricultural produce
2 It is recommended to all APMCs in Gulbarga division to take efforts to stop
rural marketing to get better price An inspection team has to be formed to
stop local sales The team member should visit all the villages coming under
the jurisdiction of the APMC during Post harvest
3 Lots of changes have to be brought into the marketing activities in the APMC
yard Scientific grading and enlightment for all commodities in the market
yard be made compulsory in a phased manner
4 Illiteracy of formers and lack of Medias for communication of information has
been a big problem in rural as well as semi-urban areas The information
obtained should be in a position to help them in decision making Hence it is
recommendable to each APMC for equipping the intelligence cell and branch
offices with highly qualified and trained staff to perform the job quicker to
help producers at right time
5 The existing facilities of processing and storage in all the APMC of Gulbarga
division are inadequate This gap need to be filled up The local government
administrative bodies financial agencies and APMCs should motivate the
124
processing units to be set up and also more godowns are to be encouraged for
construction in these areas
6 Proper co-ordination between the financial agencies established by APMCs or
any other organization to be set up for this purpose is necessary This
definitely prevent the exploitation of farmers by private financiers This
problem needs to be tackled on priority basis in Gulbarga division
7 To avoid the injustice at the time of weighment of farm produce on arrival
and sale APMCs needs to make it compulsory to install electronic weighting
machines The issue of weighment note to the agriculturist by agents is made it
compulsory
8 As far as Gulbarga division APMCs are concerned they have completely
neglected the importance of two marketing services ie assembling and
processing The absence of these two services in the study area is a reflection
on its lethargic and indifferent attitude in providing a comprehensive package
of marketing services to the rural farmers
9 Lots of changes have to be brought into the payment to the farmers after sales
The strong actions against the defaulting commission agent should be
exercised and also cautioned against such delays on their part when any
complaint from the farmers regarding the delay In this regard formulation of
rigid policy is recommended at all APMCs
10 Some of the APMCs in Gulbarga division are still practicing mutual
negotiation method of sale this leads unfavourable price for the agricultural
produce Auction system of sale is made compulsory for all commodities
arriving in the market yard and negotiation method is to be prohibited
11 It was noticed from the market yard during the field visit different types of
malpractices on the part of the unscrupulous market functionaries In order to
eliminate this harassment to farmers the marketing committee has to detect
such unethical practices from market participants and they be severely
punished with fine and imprisonment
12 To improve the overall quality of services (marketing services and
infrastructure facilities) it is strongly advisable to marketing committees to
implement all the provisions lay down in KAPM (R) Act 1966 and rules in
1968 along with suggestions made by Indian standards Institute (RSI) for the
benefit market functionaries in general and farmers in particular
125
13 A network of rural storage centres should be built on a priority basis in order
to prevent distress sales wastage and loss arising out of inadequate and
defective storage facilities
14 These storage centres may be constructed and managed by panchayats
cooperatives and other suitable agencies selected by the State Government
15 Farmers should be provided with receipts for the commodities stored by them
Each receipt should be a negotiable instrument to enable them to obtain credit
from banks
16 The banks should provide credit to the extent of 90 percent of the value of the
stocks stored by the farmers and the credit should be provided at concessional
rates of interest
17 Arrangements for the display of prices on notice boards at important public
places like hospitals schools panchayat ghars etc should be made
18 There must be proper coordination between market intelligence and policy
making departments so that the later may better understand the problem and
can make such adjustments in the information as may be called for
CONCLUSION
Indiarsquos long-neglected agriculture sector is all set to grow faster We have
improved a lot since independence In the last few years it has grown at an average
rate of 31 only and there is a need to step up the growth in this sector Then only
Indiarsquos GDP growth cross 9 and rural income and rural employment increases
It is time to APMCs to give concrete shape to the agro-industrial integration
by starting industrial units based on agricultural raw-materials This integration will
create a better economic atmosphere for the growth of the Karnataka region as well as
Gulbarga division
126
BIBLIOGRAPHY
1 Acharya S S and D P Chaudhri (Ed) Indian Agricultural Policy at Cross-
Roads Rawat Publications Jaipur 2001
2 Acharya S S and N L Agarwal Agricultural Prices-Analysis and Policy
Oxford and IBH Publishing Co Pvt Ltd New Delhi 1994
3 Acharya S S Agricultural Production Marketing and Price Policy-A Study
of Pulses Mittal Publications Delhi-110035 1988
4 Acharya S S M S Rathore and P R Sharma Agricultural Marketing - A
National Dialogue Institute of Development Studies Jaipur 1998
5 Agarwal N L Agricultural Prices and Marketing in India-An Analytical
Case Study of Rajasthan Mittal Publications Delhi-110035 1986
6 Agricultural Technology Management Agency MANAGE-NATP series 2
1999
7 Amarchand D and B Vardharajan An Introduction to Marketing Vikas Pub-
lishing House Private Ltd New Delhi 1980
8 Anne Margaret Thomson 1993 Promoting Private Sector Involvement in
Agricultural Marketing in Africa (Fao Agricultural Services Bulletin)
9 Bailey Norwood F and Jayson Lusk 2007 Agricultural Marketing and Price
Analysis
10 Barker J W 1990 Agricultural Marketing (Oxford science publications)
11 Berend Wierenga Aad van Tilburg Klaus Guumlnter Grunert and Jan-Benedict
EM Steenkamp 1997 Agricultural Marketing and Consumer Behavior in a
Changing World
12 Bill Malcolm Jack Makeham and Vic Wright 2006 The Farming Game
Agricultural Management and Marketing
13 Brian How R 1995 Marketing Fresh Fruits and Vegetables (An AVI Book)
14 Brunk M E and L B Darrah Marketing of Agricultural Products The
Ronald Press Company New York 1955
15 Campbell K O 1973 Agricultural Marketing and Prices Cheshire
Publishing Melbourne Australia
16 Carter S 1998 Global Agricultural Marketing Management (Marketing amp
Agribusiness Texts Series (Series 09005676 No 3)
127
17 Chakraborty and Krian Sankar 2009 Rural Markets and Agricultural
Marketing
18 Chandra Shekara P 2001 Private Extension in India Myths Realities
Apprehensions and Approaches
19 Chandrashekara P 2001 Private Extension Indian Experiences
20 Common Principles for Watershed Development 1999
21 Crawford I M 1997 Agricultural and Food Marketing Management
(Marketing and Agribusiness Texts 2)
22 Dennis Chiwele Pumulo Muyatwa-Sipula and Henrietta Kalinda (Paperback -
Jan 1998) Private Sector Response to Agricultural Marketing Liberalisation in
Zambia A Case Study of Eastern Province Maize Markets (Research Report
Nordiska Afrikainstitutet)
23 Desai G R and Arora S K 1999 Trainers Training manual for Participatory
Management on Watershed
24 Desmond ORourke A 1994 The World Apple Market (Fpp Agricultural
Commodity Economics Distribution amp Marketing)
25 Dieter Elz 1987 Agricultural Marketing Strategy and Pricing Policy (World
Bank Symposium)
26 Dixit R S 2006 Agricultural Marketing in India
27 Erdener Kaynak 1986 World Food Marketing Systems
28 Erdener Kaynak and Matthew Meulenberg 1995 Food and Agribusiness
Marketing in Europe
29 Euan Fleming and Hugh Coulter 1992 Agricultural Export Marketing South
Pacific The Future Role of Marketing Authorities (Pacific Policy Papers)
30 Farris P 1983 Future Frontiers in Agricultural Marketing Research
31 Fertilizer and product Guide 1997
32 Foxall G R1982 Co-Operative Marketing in European Agriculture
33 Geoffrey S Shepherd and Gene A Futnell 1982 Marketing Farm Products
Economic Analysis
34 George Angell 1986 Agricultural Options Trading Puts and Calls in the New
Grain and Livestock Futures Market
35 Giriappa S 2000 Institutions and agricultural marketing in a semi-commercial
system
128
36 Gupta A P Marketing of Agricultural Produce in India Vora and Co
Publishers Pvt Limited Mumbai 1975
37 Hughes D R HM Martin and MVan Nieuwkerk 1993 A Comparative
Study of Agricultural Marketing in the Netherlands and the United Kingdom
(Food Industry Perspectives Discussion Paper)
38 Inderjit Singh Lyn Squire and James Kirchner 1985 Agricultural Pricing and
Marketing Policies in an African Context A Framework for Analysis (World
Bank Staff Working Paper) (No 743)
39 Indian Society of Agricultural Marketing Vistas in Agricultural Marketing
1997
40 Jagdish Prasad Encyclopedia of Agricultural Marketing Vol I to VIII 2000
Mittal Publications Delhi-110035
41 Narain Dharam Distribution of the Marketed Surplus of Agricultural Produce
by Size-Level of Holdings in India 1950-51 Asia Publishing House New
Delhi
42 Nayyar H and P Ramaswamy Globalization amp Agricultural Marketing
Rawat Publications Jaipur 1995
43 Neelamegham S Marketing Management and the Indian Economy Vikas
Publishing House Pvt Ltd New Delhi 1978
44 Padberg D I C Ritson and L M Albisu 1997 Agro-Food Marketing
45 Polopolus LC and Jesus Alvarez 1991 Marketing Sugar and other
Sweeteners (Developments in Agricultural Economics)
46 Prabhakar Rao Marketing Efficiency in Agricultural Production Himalaya
Publishing House Mumbai 1985
47 Procurement guidelines under National Agricultural Technology Project
MANAGE-NATP series 4 2000
48 Raghavendran T 2001 Disbursement Procedure for World Funded Projects
(A Guide to Project Implementing Agencies) by MANAGE-NATP series 5
49 Rajagopal Development of Agricultural Marketing in India Print well Jaipur
1996
50 Ralph M Chite 2007 HTML Agricultural issues in the 109th Congress An
article from Congressional Research Service (CRS) Reports and Issue Briefs
129
51 Ramesh Chand and V P S Arora (Ed) Agricultural Input and Output
Market Reforms in India Advance Publishing Concept New Delhi-11 0064
2000
52 Ramesh Chand Agricultural Development Price Policy and Marketed Surplus
in India (Study of Green Revolution Region) Concept Publishing Company
New Delhi-11 0059 1991
53 Rao NGP Perumal N Ghosal SL 1997 Training for Agriculture
Development
54 Sarveshwara Rao and G Parthasarthy Regulated Markets and Public Policy
Book links Corporation Hyderabad
55 Secondo Tarditi Kenneth J Thomson Pierpaolo Pierani and Elisabetta Croci-
Angelini 1989 Agricultural Trade Liberalization and the European
Community
56 Seetharaman S P Agricultural Input Marketing Oxford and IBH Publishing
Co New Delhi
57 Singh J P and Kareem M A 2001 Economic Evaluation of Participatory
Adaptive Research Project
58 Singh J P 2000 Economic Evaluation of Manchal Watershed
59 Singh J P 2000 Socio Economic Dynamics and Development Strategy for
Participatory Adaptive Research Project (PAR)
60 Singh J P 2002 Evaluation of Participatory Adaptive Research Project K
H Vedini 2001 Agriculture Marketing Interventions amp Innovations
61 Singh Rajkumar Agricultural Price Policy in India Print well Publishers
Jaipur
62 Singh J P Chandrasekhar P Kumar TDS and Lakshmi Murthy
2000 Israelrsquos Agriculture (Achievement through innovation and
Technology)
63 Singhal A K 2009 Agricultural Marketing in India by publisher Anmol
Publications pages 246
64 Singhal AK 1989 Agricultural marketing in India
65 Singhal A K Agricultural Marketing in India Anmol Publications New
Delhi 1989
66 Southworth Herman Some Studies on Fresh Fruits and Vegetable Marketing
in Asia Agricultural Development Council Bangkok Thailand 1974
130
67 Subba Rao K Agricultural Marketing and Credit ICSSR New Delhi 1985
68 Tyagi D S Managing Indias Food Economy-Problems and Alternatives
Sage Publications India Pvt Ltd New Delhi 1990
69 Vedini K H 2000 Management Issues in Rainfed Agriculture in India
70 Venkateswarulu J 1999 Technical Manual on Watershed Management
(Series (II) Resource(III)Arable Cropping Systems (IV) Non-Arable
Cropping Systems (V) Non-farming Systems amp Watershed in Retrospect
Conservation)
71 Vijay Gaatha 2002 Agripreneurs Documents 24 success stories of
agripreneurs with 40 different types of projects
72 Vijender Agricultural Marketing in India The Mandi System
JOURNALSMAGAZINES
1 Indian Journal of Agricultural Economics - Quarterly The Indian Society of
Agricultural Economics 46-48 Esplanade Mansions MG Road Fort
Mumbai-400001
2 Agricultural Situation in India - Monthly Directorate of Economics and
Statistics Ministry of Agriculture Government of India New Delhi
3 Indian Agriculture in Brief - Annual Directorate of Economics and Statistics
Ministry of Agriculture Government of India New Delhi
4 Yojana - Monthly Ministry of Information and Broadcasting Government of
India New Delhi
5 Economic Survey - Annual Ministry of Finance Government of India New
Delhi
131
APPENDIX-I QUESTIONNAIRE
QUESTIONNAIRE FOR FARMERS
1) Name of the Farmerhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Name of the village and district helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3) Age (in years)
a) Below [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
4) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P G and others [ ]
5) Sources of income
a) Agriculture [ ] b) Business [ ]
c) Employment [ ] d) Others [ ]
6) Annual gross income (In Rs)
a) Agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Non agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
7) Type of family
a) Nuclear family [ ] b) Joint family [ ]
c) Individual (single) [ ]
8) Number of family members
a) lt 4 [ ] b) 4 ndash 8 [ ]
c) 8 ndash 12 [ ] d) 12 and above [ ]
9) Total agricultural land holding (In Acres)
a) Below 5 Acres [ ] b) 5 ndash 10 Acres [ ]
c) 11 ndash 15 Acres [ ] d) Above 16 Acres [ ]
10) Crops grown in land with quantity per annum
Qty (in Quintals)
a) Red gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Green gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) Black gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) Jowar helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
e) Maize helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
f) Bajra helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
132
g) Bengal gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
h) Sugarcane helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
i) Others helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
11) Sale of agricultural produces
a) Open market [ ] b) APMC [ ]
c) Confirmation Agriculture [ ] d) Others [ ]
12) Preference of sale of agricultural produce
a) Local market [ ] b) Taluka market [ ]
c) District market [ ] d) Other state [ ]
13) How you carry agricultural produce to APMC
a) Bullock cart [ ] b) Tractor and trucks [ ]
c) Hired vehicle [ ] d) Own vehicle [ ]
14) Market charges of the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
15) Carrying cost paid in the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
16) Facilities provided by the APMC
Yes No
a) Water [ ] [ ]
b) Toilet [ ] [ ]
c) Canteen [ ] [ ]
d) Communication [ ] [ ]
e) Shopping property [ ] [ ]
f) Marketing information [ ] [ ]
g) Other facilities (if any) [ ] [ ]
17) Sources for dissemination of marketing information
a) News paper [ ]
b) Radio and Television [ ]
c) Dept of the government [ ]
d) Post and Telephone [ ]
e) Price bulletins [ ]
f) Personal contact [ ]
133
18) Rank the defects in regulated markets
a) No advance money [ ]
b) Difficulty of storage [ ]
c) Lack of transport facility [ ]
d) Lack of gradation facility [ ]
19) Rank the facilities to improve market efficiency
a) More number of commodities [ ]
b) Increases in facilities [ ]
c) More role of government [ ]
d) More representation from farmers [ ]
e) Reduction in market fees [ ]
20) Weather APMC provides adequate transport services
a) Yes [ ] b) No [ ]
21) Weather APMC provides adequate storage facilities
a) Yes [ ] b) No [ ]
22) Does APMC has cold storage facilities at warehouse
a) Yes [ ] b) No [ ]
23) What is the monthly storage cost of your produce at APMC
Rs helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
24) Whether APMC helps you for processing of your produce
a) Yes [ ] b) No [ ]
25) Do you satisfied with processing services provided by processors
a) Yes [ ] b) No [ ]
26) Processing fees paid to processors
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
27) Whether grading facilities are available at the APMC
a) Yes [ ] b) No [ ]
28) Do you satisfied with grading services provided by graders
a) Yes [ ] b) No [ ]
29) Are the graders trustworthy
a) Trustworthy [ ] b) Not trustworthy [ ]
30) Whether APMC provides efficient weighment of produce
a) Yes [ ] b) No [ ]
134
31) Do you satisfied with cost charged for weighment of produce
a) Yes [ ] b) No [ ]
32) Whether electronic weighing balancesmachine have been installed in
markets
a) Yes [ ] b) No [ ]
33) Causes of the defects in weighing
a) Absence of licensed weighman [ ]
b) Under weighing [ ]
c) Favouring for buyer [ ]
d) Faulty weights [ ]
e) Faculty weight machines [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
34) Grading of produce helps in the ways
a) Easy marketing [ ]
b) Reduction of cost [ ]
c) Higher prices [ ]
d) Encourage competition [ ]
e) Easy to get finance [ ]
35) Whether APMC provides market information on time to time
a) Yes [ ] b) No [ ]
36) If lsquoNorsquo what are the defects in market information
a) Ignore retail prices [ ]
b) Delay in news [ ]
c) Wide range of prices [ ]
d) Incomplete information [ ]
e) Illiteracy [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
37) Processing of produce helps to you in the ways
a) Add the value [ ]
b) Preservation for longer period [ ]
c) Less cost of production [ ]
d) Wide extent of the market [ ]
e) Use of surplus food [ ]
135
38) Do you insure your agricultural produce at APMC
a) Yes [ ] b) No [ ]
39) Whether you satisfied with the insurance facilities at the APMC
a) Yes [ ] b) No [ ]
40) Whether bank credit faculties available at the APMC
a) Yes [ ] b) No [ ]
41) Are you satisfied with present banking facilities
a) Yes [ ] b) No [ ]
42) What are the other sources of credit facilities other than bank credit
a) Whole sellers [ ] b) Retail seller [ ]
c) Commission agents [ ] d) Others (specify)helliphelliphelliphelliphellip
43) Ranking the factors determining the finance requirements
a) Nature of crop [ ] b) Terms of payment [ ]
c) Economic condition [ ] d) Fluctuations of prices [ ]
e) Volume of crop [ ]
44) Interest paid on bank credit
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
45) Are you obtaining services form the commission agents at APMC
a) Yes [ ] b) No [ ]
46) Are you satisfied with services provided by licensed commission agents
a) Yes [ ] b) No [ ]
47) If lsquoNorsquo what are the defects with commission agents
a) Favourable to buyer [ ]
b) High commission [ ]
c) Misguide [ ]
d) Lack of knowledge [ ]
e) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
48) Commission paid to commission agents
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
49) Do you have given any complaint against agent to the APMC about more
commission
a) Yes [ ] b) No [ ]
136
50) Whether sufficient number of Hamals are available at the APMC
a) Yes [ ] b) No [ ]
51) The cost of cooli to Hamals
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
52) Are you satisfied with hamals services
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
53) Do you have given any complaint against hamals to APMC for high cooli
a) Yes [ ] b) No [ ]
54) Cooperation of officials of the APMC
a) Fully cooperated [ ] b) Partly cooperated [ ]
c) Not cooperated [ ] d) Neither cooperatenor not [ ]
55) What are the defects you found with APMC officials
a) Non-cooperative [ ] b) Favourable to buyer [ ]
c) Laziness [ ] d) Expect money [ ]
e) Improper market data [ ] f) Others (Specify) helliphelliphellip
56) Do you have given ay complaint to higher officer against defaulting
APMC officer
a) Yes [ ] b) No [ ]
57) Do you have experienced following malpractices at the APMC
a) Inadequate grading [ ]
b) Inadequate packing [ ]
c) Unfavourable weighment [ ]
d) Excess samples [ ]
e) Inadequate supervision [ ]
f) Excess market charges [ ]
g) More favourable to buyer [ ]
h) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
58) Do you have any disputes with buyer
a) Yes [ ] b) No [ ]
59) What are the main causes for disputes in APMC
a) Price of produce [ ]
137
b) Quality of produce [ ]
c) Weighment [ ]
d) Timing of payment [ ]
e) Grading of produce [ ]
f) Warehousing [ ]
g) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
60) Which is the best way for settling of market disputes
a) Secretary level [ ] b) Dispute committee [ ]
c) Arbitration [ ] d) Court [ ]
61) Whether market committee officers supervises the services
a) Yes [ ] b) No [ ]
62) Do you find that APMC helped you in getting better prices for your
produce
a) Yes [ ] b) No [ ]
63) Your opinion about quality of service at APMC
a) Very good [ ] b) Good [ ]
c) Bad [ ] d) Very bad [ ]
e) Either good or bad [ ]
64) What is your opinion about customary deduction
a) As per bye laws [ ]
b) More than systems [ ]
65) Give your suggestions for making improvement in quality of services at the APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
138
APPENDIX-II QUESTIONNAIRE FOR RESPONDENTS
A) Personal Information
1) Name of respondents helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Age of respondents in years
a) Below ndash 20 [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
3) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P and G and others [ ]
4) Religion
a) Hindu [ ] b) Muslim [ ]
c) Christian [ ] d) Others (Specify) helliphelliphelliphelliphelliphellip
5) Nature of participant in APMC
a) Commission agents[ ] b) Hamals [ ]
c) Trader [ ] d) Grader [ ]
e) Processor [ ] f) Broker [ ]
g) Others (Specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6) How long you are in market yard
a) Below 10 years [ ] b) 11 ndash 20 [ ]
c) 21 to 30 [ ] d) 30 and above [ ]
7) Factors motivated for choosing this profession
a) Heredity [ ] b) More profitable [ ]
c) Uncertain induced [ ] d) Unemployment [ ]
e) Other specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
8) Are you satisfied with present marketing practices at APMC
a) Yes [ ] b) No [ ]
9) If lsquoNorsquo give the reasons for unsatisfaction
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
10) Are you satisfied with farmerrsquos activeness in APMC
a) Yes [ ] b) No [ ]
139
11) If lsquoNorsquo suggest to make them more active in market yard
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
12) Are you getting following facilities at the APMC yard
a) Water [ ]
b) Canteen [ ]
c) Communication [ ]
d) Marketing information [ ]
e) Transport [ ]
f) Health and sanitation [ ]
g) Banking and finance [ ]
h) Other (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13) Do you satisfied the above facilities at the APMC yard
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
14) Are you satisfied with quality of marketing of services at the APMC
Services Fully
satisfied
Partly
satisfied
Not
satisfied
No
response
a) Assembling
b) Processing
c) Grading
d) Storing
e) Weighment
f) Banking and finance
g) Rest house
h) Insurance
15) What suggestions do you want for efficient operations of APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
140
APPENDIX-III
PHOTOGRAPHS
ENTRY GATE OF APMC
ROAD FACILITY INSIDE APMC
141
WEIGHING GROUNDNUTS IN APMC
PROCESSING OF GROUNDNUTS
142
FILLED COTTON BAGS
WEIGHING TUR IN APMC
143
STORING GROUNDNUTS OUTSIDE
PROCESSING GRADING AND WEIGHING BAJRA
144
FILLING OF SUNFLOWER IN BAGS
LOADING OF COTTON BY LABOURS
- Table-317
- lsquotrsquo - Test Values
- Table-327
- Pearson Correlations
-
3
itself to the management of APMCs in Karnataka in general and Gulbarga Bidar
Raichur Koppal and Bellary district APMCs in particular The total APMCs consist
for the present study is five APMCs from each district of study area
13 REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related
areas of the subject to find out and to fill up the research gaps Literature on
agricultural marketing can generally be found in a number of books that are available
on agricultural economics rural marketing and regulated markets Only very few
studies were undertaken on APMC and its performance in both agricultural marketing
and development The important studies relating to the present investigation are
referred below
Gopal Rao (1974) has undertaken the study on APMCs and has analyzed their
working in detail The author has confined his study to the four districts of Bombay
Karnataka region through a survey of the markets in the region
Ravirsquos (1975) work analyses the marketing problems of coconut and copra in
Tipatur and Arasikere regulated markets of Karnataka In this area coconut marketing
is dominated by village sales (66) followed by sales through commission agents
(16) and through wholesalers (about 11) and the rest directly by the farmers
(about 7)
Bhogappa (1982) has undertaken the study on ldquoMarketing of agricultural
produce in Gulbarga division of Karnatakardquo which covers only the APMCs of
Gulbarga Revenue Division He has made a special study of the effects of draught and
draught prone areas He has analyzed the special problems of the markets in ldquoAyacutrdquo
areas
Ramaswamy (1984) has submitted the thesis on ldquoA Critical Study of the
Working of Regulated Markets in Tamil Nadu with special reference to Coimbatore
and Periyar districtsrdquo This was the first attempt to assess the applicability of the Act
in Tamil Nadu which has thrown a light on cropping pattern
4
Rayudu (1985) highlighted the five aspects of cardamom marketing designed
by Cardomon Board The Board collects data on global requirements position of
supply conducting market survey for planning implementing and evaluation The
findings in this study could be useful in suitable applications for the finer aspects in
the marketing of similar products
Biradar (1989) observed that there was no incentive scheme for farmers It is
therefore necessary to start the incentive programmes like providing higher prices for
their commodities agricultural inputs at concessional rates and charging lower market
make regulated markets more attractive to the farmers These suggestions have a good
deal of subsidy components on the part of the Government
Selvamurugan and Mohan Sundaram (1990) in their study on the Coimbatore
district concluded that the crossandra in Coimbatore district concluded that the
corrssandra farmers share had been reduced from 3256 percent to 2423 percent
during the lean season Though the street vendors margin had also been reduced from
2328 to 1460 percent the share of commission agents and wholesalers had increased
to large extent ie from 4416 to 6107 per cent
Reddy (1991) conducted a study on marketing channels and marketing
margins of maize in Andhra Pradesh The study revealed that the producers share was
significantly high (8664 to 8687) in the case of Producer to Retailer to Consumer
channel as compared to corresponding share of producer (6314 to 7067) in case of
second channel ie Producer to Wholesaler to Retailer to Consumer
Nagraj and Chandrakant (1992) conducted a study on market performance of
perishables In the study the major marketing channel for vegetables was as below
Producer to Commission agent to Retailer to Consumer
The study could be of much relevance for researches in similar areas of agricultural
marketing
Biswas and Karpate (1994) observed the importance of Maharashtra State
Tribal Development Corporation (MSTDC) in marketing of minor forest produce
The tribal of the area were assured of basic minimum price for their produce notified
5
by the collector of the district The payments in normal course were made
immediately and saved them from exploitation by the middlemen
Mundinamani and Naik (1994) concluded that the per marketing cost of potato
was Rs 2074 as compared to Rs 2261 for brinjal Rs 2325 for onion Rs 2147 for
tomato Rs 5692 for dry chilly Rs 2975 for cotton and Rs 1936 for groundnut
The factors for differences in marketing cost of such agricultural produce need to be
probed by further studies
Atibudhi and Prusty (1995) have studied the marketing margins of Niger in
Rayagada district of Orissa The study concluded that the presence of co-operative
societies in marketing channel reduces the marketing margins and increases the
producers share in consumers rupee Marketing costs were the lowest in the co-
operative channel But marketing costs for storage procurement and transport were
higher for the same
Pawar (1996) has conducted a study on marketing surplus and price spread of
groundnut in Marathwada region of Maharashtra which is the most important
groundnut growing zone where 49 percent of the land is used to grow groundnut The
study concluded that distress sale of ground nut was found in small farmers but
medium and large farmers kept their surplus for future sale to get maximum price
Krishnaih (1998) has conducted a study to identify the marketing channels of
cotton and to analyze the price spread in these channels where he has suggested 7
different channels on distribution of cotton His effort is quite appreciable and it offers
for further research work on the topic However he found that while marketing of
cotton (kapas) majority of the farmers chose the channel in which the role of
commission agent was prominent
Paty (2000) applied the techniques of marketing information system the
agricultural marketing He has explained the concept with flow diagram of the
Integrated Agricultural Marketing Information System which is quite useful for its
practical applications
6
Basavaraj et al (2001) have made it very clear in their article that Karnataka
ranks fifth among the oil seed producing states in the country with an area of
1200135 hectares and a production of 945501 tones during 1994-95 Groundnut
sunflower safflower sesamum and castor were the major oil seeds produced in the
state They have made good policy implications in their study
Jayarathnam (2002) in her study on farmers market (Uzhavar Sandhai) in
Tamil Nadu pointed out the problems in cultivation transportation marketing and
pricing of vegetables Even she has given strengths weaknesses opportunities and
threats of vegetable marketing in Uzhavar Sandais of Tamil Nadu
Von Oppen and Gabadambi (2002) in their research paper have observed
market access impact on agricultural productivity lessons from thirteen chapters in
which they have concluded by stating market access and infrastructure are powerful
tools to commercialize agriculture in developing countries They increase aggregate
productivity initially via specialization and at a later stage via intensification
Sherman Roger (2007) undertook a study on market regulation gives readers
the economic intuition to analyze the history of antitrust and regulation diagnose
current corporate strategy and evaluate possible policy recommendations Roger
Sherman grounds modern examples in historical context and develops thought
provoking discussions to motivate readers from many different backgrounds
Introduction to market regulation competition as a market regulator problems for
competition as regulator
14 STATEMENT OF THE PROBLEM
The farming is largely dependent on the efficient marketing of the products
So the governments have to be very particular and watch all the market operations to
remain self-sufficient in food and to produce the goods for export to other countries
In the process of planning though the agriculture was given high priority for its
development but much attention was not given for the improvement of marketing
But in various states the agricultural marketing boards were established with the
objective to remove all the problems of markets and to regulate the markets for
increasing the efficiency in marketing It is found from various previous studies that
7
the regulated markets donrsquot have adequate and scientific grading facilities resulting in
substantial loss to the farmers excess charging of deductions in the form of
weighment commission etc are still prevailing at present in the regulated markets by
the commission agents or traders while making the payments to the farmers Hence
there is a need to undertake a study of the working of regulated markets in relation to
the responses of producer seller and other market functionaries regarding various
aspects of management of regulated markets The present research work attempted to
examine how the organized markets are working and to assess their role in
facilitating an orderly marketing of agricultural produce in the selected APMCs in
Gulbarga division
On the top of it the Gulbarga division is highly backward with all the
indicators of the backwardness which leaves considerable scope for exploitation by
the money lenders-cum-merchants These contrasts in the division call for different
approaches to marketing management and hence the study reveals interesting results
valuable for policy decisions This study of the division of Gulbarga is of immense
benefit for the economic strategy in the marketing of agricultural produce The study
is also aimed at pointing out various malpractices prevailing in the marketing
management lack of infrastructure storage facilities credit availability and effective
central markets this has resulted lack of innovations in agricultural production and
operations Many studies have been carried out to assess the impact of various
malpractices prevailing in marketing management on production of agricultural
produce However no study has been made to assess the role played by the APMCs in
the agricultural marketing in Gulbarga division highlighting whether these have
succeeded in achieving its objective if not what were the causes and what corrective
measures would have helped it in over coming the problems The present study is a
contribution in this direction
15 OBJECTIVES OF THE STUDY
The following are the objectives set for the study
1) To study the role of APMCs in filling the gaps and deficiencies regarding
agricultural marketing in Karnataka
2) To understand the amenities and facilities at the APMCs and to find out
inadequacies prevalent in APMCs in Gulbarga division
8
3) To know the trade practices in the area under consideration and the extent of
benefits to sellers through organized markets
4) To analyze the farmers responses towards regulated markets as well as market
participants
5) To critically examine the over all performance of APMCs and to identify the
area of improvement in the efficiency and also to offer suggestions to develop
an effective marketing system in Gulbarga division
16 RESEARCH METHODOLOGY
The study is mainly based on both primary data and secondary data The study
covers one broad division of the Karnataka state a survey method is adopted ie
through the pre-tested interview schedules addressed to the sample size of farmers and
market functionaries An unscheduled interview is also conducted to the regional
officials of KSAMB project officer and agricultural departments as well as APMCs
officials
Separate schedules were drawn tested and addressed to market committees
agricultural producers and market functionaries The questionnaires administered to
farmers were 250 in total at the rate of approximately 20 from each district market
All the farmers were representative producers for each market categorized on the
basis of the land holding and also marketable surplus brought to the market for sale
The questionnaire administered to the market participants were 150 in total
covering 20 market functionaries from each district in total sample size market
functionaries includes traders (wholesaler and retailer) commission agents exporters
importers processors and hamalies etc
17 SAMPLE DESIGN
A stratified random sampling method was adopted to drawn the final sample
The Gulbarga division consist of Bidar Gulbarga Raichur Koppal and Bellary
district from each district approximately 50 farmers were selected along with this 30
market functionaries from each district were selected
9
18 DATA ANALYSIS
The data collected from both primary and secondary was processed and
reduced to simple tables in order to present the matter clearly The suitable financial
statement analysis techniques were used to draw the correct conclusion Ratio
analysis which is most powerful and universally used technique for the analysis of
financial performance of APMCs in Gulbarga division
Analysis of variance technique is employed to test whether there is any
statistical significance in sales in different markets Apart from this averages and
percentages are used Graphs maps chart and diagrammatic representation of data
was suitably employed to highlight the significance of the data
19 PERIOD OF THE STUDY
The present study covers the period of five years commencing from 2009-10
to 2013-14 The performance of various items such as sales amenities infrastructure
and facilities of APMCs in Gulbarga division was studies for five years
Due to the wide operational activities of APMCs for agricultural marketing the
study period limited to five years to analyze its role in Karnataka with reference to
Gulbarga division
110 LIMITATIONS OF THE STUDY
The study is not completely free from limitations
1) The study is restricted only Gulbarga Division
2) Only five years period is taken for the purpose of the study because of time
constraints
3) The study is depending on the primary data also some of the respondents give
the poor response however every care has been taken to ensure that
authenticity of the data gathered
4) Some of the markets and the sub markets are so small and irresponsible that no
data is available nor any records of arrivals and disposals The records
maintained at the submarkets in the division are probably not available and
non reliable
10
111 CHAPTERISATION OF THE RESEARCH WORK
The whole research study has been presented in seven chapters
The First chapter deals with the introduction need of the study review of
some of important previous literatures statement of the problem
objectives of the study research methodology employed period of the
study limitations of the study techniques used for data analysis as well as
the chaptarisation of the study
The Second chapter deals with the various functions of the APMCs their
activities And also contains in brief about the trade practices preventing at
present in Gulbarga division as well as the data collected from the market
participants through questionnaire were analyzed to know the level of
satisfaction towards the preventing trade practices in selected APMCs in
Gulbarga division
Chapter Third deals with the opinion collected from the farmers towards
the marketing of their produce as well as their attitude towards regulated
market
Chapter Fourth deals with the financial performance and position during
five years of study period
The Fifth chapter deals with the findings suggestion and conclusions
11
CHAPTER-II FUNCTIONS AND TRADE PRACTICES ON APMCs
INTRODUCTION
The functionaries have their own set up They may be individuals partners or
cooperatives who may buy and sell on ready and future basis at a price determined by
forces of supply and demand Each functionary renders some services in the process
of marketing and also earns a varying margin of profit for himself This procedure
makes marketing rather complicated and inflates the price of the produce The nature
of some of the agricultural products eg their bulk form and perishability and their
seasonal availability further add to the complexity of agricultural marketing
Farmers and the various functionaries working in market face numerous
problems in orange fruit trading Farmers either sell their produce to the pre-harvest
contractor before harvest or they sell it in the nearby Agricultural Produce Market
Committee
When the farmers sell their produce in the Agricultural Produce Market
Committee they face following problems
High commission charges
High transportation and loading and unloading charges
No guarantee of remunerative prices
Delayed payment by commission agents
Functionaries working in the market also face various problems The pre-
harvest contractors who purchase the fruits from the farmers face the problems while
dealing with the farmers These problems arise mainly due to
Lapses on the part of farmers in the management of garden resulting in
deterioration of quality of fruits
Problems of natural calamities (theft of fruits losses due to rains pest etc)
Problems of storage facilities (lack of cold storage at local place)
Packing problem (costly packing material and non-availability of skilled
labour)
12
Transport problems (high transportation cost and non-availability of transport
means in time)
Grading problems (non-availability of suitable mechanical graders)
The success or failure of any market depends upon the functionaries existing
in the market Hence the role of functionaries is very important in smooth conduct of
market functions
It is compulsory according to KAPM (R) Act 1966 for every functionary
functioning in the APMCs to take a valid license from the respective APMC where it
is established by paying the necessary fees to the APMCs
Description of Market Functionaries
Following is the list of important functionaries existing in different APMCs of
the study area
i) Commission agents ii) Traders
iii) Retail traders iv) Weighmen
v) Hamals vi) Lady hamals
vii) Transporters viii) Cartmen
ix) Brokers x) Exporters
xi) Importers xii) Processors
xiii) Ginners xiv) Pressors
xv) Crushers xvi) Stockiest
xvii) Warehousemen
It is very essential to understand each of these functionaries and their activities
in detail
i) Commission Agents
Commission agent means a person who in the ordinary course of business
makes or offers to make a purchase or sale of agricultural produce on behalf of the
owner or seller or purchaser of such agricultural produce for commission
13
Commission agents are called so because of the commission they take from
the traders on the total sales as fixed by the government They facilitate farmers to
sell the agricultural produce brought into market yard for a good price at an
appropriate time However as per the bye-laws of market committees some person
cannot act both as commission agent and trader
Commission agents are the connecting link between the farmers and the
buyers When the crop grown by the farmer enters the market it goes to the
systematically channalised commission agents
The agents help the market committee to classify the goods brought by the
farmers and getting them weighed by the specified weighmenThese agents sell the
goods in the market on behalf of farmers and if a farmer does not want to sell his
goods for the time being at the prevailing market price the agents stores the goods in
their godowns and takes the responsibility of preserving the goods These agents not
only help the buyers to get a variety of goods at a place but also help the farmers to
sell their goods effortlessly In the form of market fee the buyer has to pay 1 percent
of the sale price of goods which is collected by the agents and credited to the market
committee Agents also have the responsibility of crediting the total amount of the
sales to the farmers The agents enjoy the right to extract the full amount of the
produce from the buyers
ii) Traders
Trader means the person who buys notified agricultural produce either for
himself or as agent of one or more persons for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of domestic
consumption
The trader will fix a reasonable price for the farmers produce in consolation
with the commission agents and with the consent of the farmers they purchase the
produce and the full amount will be paid to the commission agents Sometimes the
traders buy the produce for their own business purposes or on behalf of big companies
or businessmen Under these circumstances the goods will be sent to the respective
people
14
iii) Retail Traders
Retail trader mean the person who holds in stock at a time not exceeding
fifteen quintals of two or more kinds of agricultural produce together or not
exceeding six quintals of a single agricultural produce
The major function of a retail trader is to undertake retail salesRetail sale
means the sale of notified agricultural produce to a consumer for domestic
consumption not exceeding such quantity as the market committee may by bye laws
or standing orders determine
Usually they buy agricultural produce from the market yard and sell it in retail
market established in cities They assist the small buyers in procuring the agricultural
produce in small quantities for the purpose of domestic use
iv) Weighmen
As their name itself suggests the weighmen supervise the weighment of the
agricultural produce entering into the APMC yard
Certain produce such as cotton get weighted as soon as they enter the market
yard while the rest of the produce are weighted after sales Under these
circumstances it becomes the duty of the weighmen to safeguard the interest of the
farmers and to see that there is no discrepancy in weighing their goods Day to day
report of the produce weighed along with their weighment slip has to be filed with the
market committee by the weighmen It is the duty of these weighmen to visit the
various shops in the market yard and to supervise the weighing of different goods
v) Hamals
In order to facilitate the smooth functioning of the various activities of the
marketing committee hamals perform a very special duty As these people perform a
strenuous physical work they are called hamals
The work of the hamals start with the produce entering into the market yard
and ends with the produce going out of the yard When the farmer brings his produce
15
into the market yard either by a cart tractor or by lorry the hamals unload the
produce at the commission agents shops If the produce is cotton the hamals get it
weighted immediately after unloading and if the produce are other than cotton they
are stored in the godowns of the commission agents On the day of the tender or
auction the samples of the various produce are kept aside by the hamals who help the
traders to fix a reasonable price for the produce After the completion of business
deals except cotton all other produce are weighed and loaded into the vehicles of the
traders To perform these various tasks the hamals charge the amount fixed by the
APMC and get it from the concerned parties
vi) Lady Hamals
The female hamals who are working in APMCs by procuring a valid license
are known as lady hamals Along with the male hamals lady hamals are also found
in some of the APMCs like Hubli Gadag and Ranebennur They perform activities
like screening cleaning assisting males hamals in weighment keeping samples for
tender etc
vii) Transporters
In the preview of market committee the people who help to transport the
goods from one place to another are called transporters The tractors and truckers are
performing the duties of transporters Transporters are considered to be the important
market functionaries working in APMC yard These peoples are helping the farmers
to bring the agricultural produce from the place of production or agricultural yard to
market yard Existence of large number of transporters in the market yard helps for
the smooth functioning of marketing activities
viii) Cartmen
Along with the modern transportation facilities such as trucks and autos still
cartmens are playing greater role for the smooth functioning of market activities
Loading and unloading of bags from trucks to godown and vice-versa are performing
by cartmens When the agricultural produce need to transfer from one place to another
place within the market yard is done by cartmen
16
ix) Brokers
Brokers are the agents middle menrsquos in the market working as link between
farmers and buyers In many ways brokers are assisting the farmers by giving
valuable advises with regard to financing of selling to get better prices At the same
time they also help by supplying bulk agriculture produce to buyer
x) Exporters
Exporter means the person other than a producer who exports goods or cause
goods to be exported on onesrsquo own account or as agent of another person from the
market area outside such area for the purpose of selling processing manufacturing or
for any other purpose except for the purpose of onersquos own domestic consumption
The meaning of exporter shall not include a public carrier
At times when there is a bumper crop the poor farmer has to incur heavy
losses During such moments of crisis the exporters come into the scene and purchase
the crops from the farmers and export the same to some other markets for sale or
processing This brings about a balance between the demand and supply and saves the
farmers from the crisis
xi) Importers
Importer means the person other than a producer who imports goods or causes
goods to be imported one onersquos own account or as agent of another person from the
outside market area with in the such area for the purpose of selling processing
manufacturing or for any other purpose except for the purpose of onersquos own domestic
consumption The definition of importer shall not include a public carrier
Function of Importers
As and when there is scarcity of any goods in the market and there is a lot of
demand for the same and considering the overall demand and supply of the market
the importers import the goods from different markets and sell them in the local
market
17
xii) Processors
The goods purchased at the market yard have to undergo different stages and
processes to finally reach the customer In order to facilitate this work different people
perform their duties These people are called processors viz gins press
decorticators oil mills flour mills and dal mills etc these different industries perform
their own essential duties
These industrialists perform their duties to see that the goods available in the
market in their crude form are made ready for use After having purchased the goods
they make them ready for use with the help of these processors On certain occasions
the processors themselves purchase the goods process them and self them when they
are ready for use These processors also should have the license from the market
committee
xiii) Ginners
They are the licensed functionaries who are performing ginning activities of
cotton by procuring valid license from APMCs The purchasers of cotton want to
convert their unginned cotton into ginned cotton In such case ginners will help them
to gin their cotton and separate pure cotton from cotton seeds
xiv) Pressors
Once the cotton is ginned it will come to pressors for conversion into cotton
bales where licensed pressors undertake the work of pressing In order to transport
the cotton from the place of growing and marketing to textile mills at different places
they have to be systematically packed in compact form of cotton bails The ginned
cotton will come to press of the pressors where they press and pack it properly into
cotton bales
xv) Crushers
There are certain licensed crushers who perform the activity of crushing oils
seeds into oil The traders who buy oil seeds from the market wants to convert it into
oil for further marketing and transportation In such case crushers situated near the
various market yards will help them to get pure oil by getting their seeds crushed and
screened at their crushing units
18
xvi) Stockiest
The people who purchase the produce at the market yard and store it for some
time and then sell it are called stockiest The stockiest also should have license
When all the farmers bring their produce to the market yard there will be glut in the
market supply and deficiency of the purchasers which cause the prices to come down
Under these circumstances to protect the farmer from the loss the stockiest purchases
the goods at the market yard and stock it in their storehouse to sell them when there is
a demand for that commodity
xvii) Warehousemen
The farmers are provided with the warehouses to store the produce which
come under the jurisdiction of the market committee ldquoWarehouserdquo means any
building structure or other protected enclosure which is or may be used for the
purpose of storing agricultural produce being goods on behalf of the depositors but
does not include cloak rooms attached to hotels railway stations the premises of
other public carriers and the life The person who supervises the warehouse activities
is called warehouseman
A farmer may not want to sell his produce because of the fall in the prices or
may want to store the goods for the purpose of sowing but does not have enough
space to store Having realized this problem of the farmers the government has
provided the warehouses in all the important market yards so that the farmers can
store their goods as long as they want to
The main task of the warehousemen is to stock the goods of the farmers
properly by sprinkling pesticides and protecting them from the insects and pests and
to return the goods of the farmers to them when they ask for it While performing this
task the warehousemen charges certain amount which is specified by the
government The farmer has to pay the amount towards stocking of his goods
In this way for the smooth sailing of the market committees activities each
and every market functionary has to perform his duties systemically
19
Market Functionaries in Selected Market An Overview
In all the selected APMC for the present research work ie 15 APMC there
were 26194 market functionaries operating in various markets of this division The
district wise and sample wise break up of the same is revealed in the tables from 21
to 25
As on the 2007-98 the total of local market participant in three APMC taken
for the present research is Gulbarga-5099 Bidar-2790 Koppal-5234 Raichur-7182
and Bellary-5889 There are 2046 lsquoArsquo class traders 1786 lsquoBrsquo class traders 1410 lsquoCrsquo
class traders 6920 lsquoDrsquo class traders 2794 commission agents 1496 exporters 1526
importers 676 stockiest 358 processors 172 crushers 203 ginners 28 pressers 29
warehousemen and 10775 hamals operating in the various markets in the Gulbarga
division The highest number of traders commission agents and other functionaries
are in Raichur district Bellary district followed by Gulbarga district being nearly 13
of the total number in the division
Market Functionaries at Selected APMC in Gulbarga District
Gulbarga APMC is a very big APMC in the Gulbarga district as compared
with other APMC in the same district Table 41 explains the total market
functionaries working in the not only Gulbarga APMC but also APMC Shorapur and
APMC Shahapur It is far as size is considered APMC Shahapur is a small APMC in
the Gulbarga district
The below Table 21 reveals that the total number of market functionaries
which was 3536 in 2009-10 in Gulbarga APMC has increased by around 124 percent
in 2013-14 It is evident from the same that coolies traders exporters importers and
processors holding maximum share in total market functionaries in the total
participants in the market
In case of the APMC Shorapur the total position of market participant was
gradually increased during first three years ie from 576 in 2009-10 to 845 in 2010-
11 and 910 in 2011-12 but it decreased to 845 in 2012-13 Again coolies and traders
were become the major portion in total market participants followed by commission
agents and retailers
20
Table-21
Licensed Market Participants in Selected APMCs of Gulbarga District
Sl No Market Participant
APMC Gulbarga APMC Shorapur APMC Shahapur
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 407 419 418 405 426 60 203 254 178 180 37 60 51 46 128
2 Commission agents 227 235 234 213 218 45 58 64 58 69 17 17 17 17 22
3 Exporters 419 424 424 411 416 10 32 11 03 03 28 35 32 25 130
4 Importers 405 411 409 391 396 08 24 09 02 02 25 30 38 25 126
5 Retailers 105 108 108 94 106 25 76 26 02 02 20 32 30 23 51
6 Processors 350 358 356 341 348 01 02 02 01 01 01 01 01 01 10
7 Ginners 14 15 15 15 16 01 02 01 01 01 01 01 01 01 05
8 Pressers 04 04 04 04 04 03 04 02 01 01 02 02 02 02 05
9 Stockiest 28 30 30 25 28 14 42 16 01 01 10 15 12 10 15
10 Weighmen 75 78 77 75 75 13 14 14 14 14 02 02 02 02 05
11 Crushers 15 18 18 18 18 03 05 04 01 01 02 02 02 02 06
12 Warehousemen 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01
13 Coolies 1444 1545 1540 1476 1485 378 373 496 571 560 75 92 99 99 110
14 Transporters 42 54 52 41 43 08 09 10 11 11 28 33 33 18 58
Total 3536 3700 3686 3510 3580 576 845 910 845 847 249 323 321 272 672 Source Annual reports of APMC for 2009-10 to 2013-14
21
The situation in APMC Shahapur was not much different when it compared to
APMC Gulbarga and APMC Shorapur A steady growth in total market participants
was registered in 2013-14 ie 672 with annual aggregate growth of 3398 percent
during the period under research Traders commission agents and coolies were
acquired majority position in total market functionaries
The below Table 22 depicts the total licensed market participants operating in
the selected APMCs of Bidar district A keen observation of year wise growth in the
various categories of market participants shows that coolies are steadily increased in
APMC Bidar from 68 in 2009-10 to 140 in 2013-14 In APMC Bhalki it was from 49
in 2009-10 to 56 and in APMC Aurad from 19 to 34 during the same period
It is interesting to note in Bidar APMC that stockiest were the dominant
portion in total market functionaries followed by experts commission agents and
importers The same situation was also found in other five APMCs ie Bhalki and
Aurad which are taken as sample from the Bidar district The percentage of stockiest
as on 2013-14 in total market participant was in Bidar APMC 1694 Bhalki APMC
ndash 1850 and 1859 in APMC Aurad
22
Table-22
Licensed Market Participants in Selected APMCs of Bidar District
Sl No
Market Participant
APMC Bidar APMC Bhalki APMC Aurad
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 171 182 195 186 196 151 153 146 156 160 110 115 128 138 142
2 Commission agents
145 151 180 175 190 136 139 145 150 156 102 112 115 128 132
3 Exporters 150 162 175 12 172 139 141 148 151 155 89 95 98 108 112
4 Importers 141 145 161 152 162 120 122 126 120 122 85 92 95 98 104
5 Retailers 10 15 28 25 35 05 06 09 10 10 03 04 06 08 08
6 Processors 03 04 04 03 04 02 02 02 02 02 01 01 01 01 01
7 Ginners 02 02 02 02 02 01 01 01 01 01 01 01 01 01 01
8 Pressers 01 01 01 01 01 01 01 01 02 01 01 01 01 01 01
9 Stockiest 193 198 220 205 215 150 151 154 155 161 106 112 115 119 123
10 Weighmen 33 42 55 52 65 23 24 26 28 30 13 15 21 28 30
11 Crushers 02 02 03 02 03 01 01 01 01 01 01 01 01 01 01
12 Warehousemen 01 01 01 01 02 01 01 01 01 01 01 01 01 01 01
13 Coolies 68 70 110 110 140 49 50 52 57 56 19 24 30 35 37
14 Transporters 10 05 15 24 23 08 08 09 13 13 04 06 08 12 17
Total 930 980 1150 1100 1210 787 800 821 846 870 536 580 621 687 710 Source Annual reports of APMC for 2009-10 to 2013-14
23
The overall growth in the market participants in Bidar district from the same
table reveals that the annual aggregate growth in APMC Bidar was highest ie 602
percent over the previous year it was 210 percent in APMC Bhalki and 649 percent
in APMC Aurad This clearly indicates that APMC Aurad is fast growing APMC in
terms of market functionaries followed by APMC Bidar and APMC Bhalki
A cursory look at the below Table 43 reveals that coolies traders
commission agents and importers are the major category of market functionaries
operating in the selected APMCs in the Koppal district during five years study period
ie 2009-10 to 2013-14 are presented in Table 23 The total number of market
functionaries in APMC Koppal which was 1054 in 2009-10 increased to 1186 in
2013-14 with percentage growth of 1188 during period under study In case of
APMC Gangavati it was 1034 percent negative and in APMC Kustagi positive
growth of 1752 percent during the same period The number of traders increased
marginally during the study period but the number of commission agents was
marginally decreased in all the three APMC selected from the Koppal district as
sample the other market functionaries increased in large numbers thus making the
proportion at commission agents to drop A broad view of licensed market
functionaries in selected APMC in Koppal depicts that APMC Gangavati was leading
APMC in terms of total market participants followed by APMC Koppal and APMC
Kustagi during five years plan period
24
Table-23
Licensed Market Participants in Selected APMCs of Koppal District
Sl No Market Participant
APMC Koppal APMC Gangavati APMC Kustagi
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 115 108 127 116 144 518 480 456 479 497 106 95 103 63 88
2 Commission agents 102 107 90 98 107 468 417 360 380 387 141 139 142 124 153
3 Exporters 95 123 92 115 105 511 480 455 489 495 90 77 80 46 65
4 Importers 123 146 120 122 103 598 479 455 488 496 17 12 13 08 64
5 Retailers 15 22 14 15 14 124 98 72 90 87 11 11 14 11 -
6 Processors 04 05 04 05 06 95 91 87 90 97 02 02 02 02 02
7 Ginners 02 02 02 02 02 - 02 - - - - - - - -
8 Pressers 02 02 02 02 02 - - - - - - - - - -
9 Stockiest 60 179 58 70 65 518 480 453 488 495 52 52 63 - -
10 Weighmen 10 15 09 08 10 03 03 04 04 03 06 06 06 06 06
11 Crushers 05 11 05 06 08 04 01 02 02 02 03 03 02 02 -
12 Warehousemen 02 04 02 03 04 02 02 02 02 02 01 01 01 01 01
13 Coolies 452 502 450 544 535 553 370 324 393 417 372 363 345 273 468
14 Transporters 067 118 59 33 36 26 13 16 15 14 04 05 03 02 02
15 Temporary purchasers - - - - - - - - - - 45 41 - - 150
Total 1054 1344 1034 1139 1186 3423 3001 2784 2995 3069 850 807 774 538 999 Source Annual reports of APMC for 2009-10 to 2013-14
25
Table 24 shows the year wise actual market participants who were licensed to
operate in the market yard during 2009-10 to 2013-14 in the selected APMC for the
sample in the Raichur district The total market functionaries in the APMC Raichur
decreased during the second year ie 2010-11 from 3622 to 3407 The average
decrease during the research period was 228 percent This was due to decrease in the
traders as well as coolies
When we observed market functionaries cooperation in the APMC Sindnoor
if was little different situation when it compared to APMC Raichur The total market
participants were shown an increasing trend except in the year 2010-11 it was
decreased from 2193 in 2009-10 to 1852 The overall growth in the market
functionaries during five years research period was 2782 percent which was a good
sign compared to APMC Raichur This growth indicates the growth of agriculture
marketing in APMC Sindnoor yard From the same table it can also be seen that
during 2010-11 and 2011-12 the total licensed market participants in APMC
Lingasugur were decreased but again during last two years of study period it shown
upward trend From these above analysis it can be said that APMC Sindnoor and
APMC Lingasugur were performed better during the plan period as compared to
APMC Raichur
26
Table-24
Licensed Market Participants in Selected APMCs of Raichur District
Sl No Market Participant
APMC Raichur APMC Sindnoor APMC Lingasuguar
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 409 422 431 403 415 312 260 304 305 304 104 99 88 106 115
2 Commission agents 216 214 222 224 218 317 265 280 288 279 83 92 81 101 100
3 Exporters 382 381 401 416 401 288 256 301 308 307 97 77 71 103 105
4 Importers 377 392 420 400 410 288 256 273 276 269 77 79 71 103 110
5 Retailers 22 23 206 - - NA NA NA NA NA 20 18 18 16 16
6 Processors 57 55 63 65 401 14 17 20 19 17 05 06 06 04 04
7 Ginners 10 16 16 15 16 01 01 01 01 - - - - - -
8 Pressers 05 05 04 03 04 01 01 01 01 01 05 04 04 04 04
9 Stockiest 388 377 398 409 19 289 257 300 308 293 75 94 81 106 110
10 Weighmen 89 89 87 87 87 16 16 16 15 14 14 14 14 14 14
11 Crushers 18 26 24 20 19 02 02 01 01 - - - - - -
12 Warehousemen 02 02 02 02 02 07 05 06 07 06 01 01 01 01 01
13 Coolies 1591 1357 1354 1434 1478 634 516 856 1286 1313 40 02 08 Nil 79
14 Transporters 46 48 44 42 50 24 - - - - 10 08 08 04 Nil
Total 3622 3407 3672 3520 3520 2193 1852 2359 2815 2803 531 494 451 562 859 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
27
Table 25 indicates the trends in the growth of total licensed market
functionaries who were operating during the period under consideration in the
selected APMCs in the Bellary district A comparative study of three APMCs selected
in Bellary district shown in the table 25 indicates that APMC Bellary has the largest
market functionary followed by APMC Hospet and APMC Siraguppa The total
market participants in APMC Bellary was ranged in between 3235 to 3865 in APMC
Hospet it was between 738 to 1481 and in APMC Siraguppa between 659 to 1007
The study of individual market participants in total market participants in selected
APMCs in Bellary district was also clearly shown that coolies were occupied the
major percentage in total followed by exporters importers and traders during the plan
period From the above analysis it was clear to conclude that district APMC ie
Bellary APMC was fully developing in terms of increase in market functionaries but
effort is needed from the officials of APMC in Hospet and Siraguppa to take some
measures to increase the market functionaries for the smooth running of marketing
activities in the yard
28
Table-25
Licensed Market Participants in Selected APMCs of Bellary District
Sl No Market Participant
APMC Bellary APMC Hospet APMC Siraguppa
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
2013-14
1 Traders 435 441 538 462 485 121 123 136 150 141 115 120 146 176 198
2 Commission agents 352 368 448 382 371 75 77 84 103 88 10 10 12 09 08
3 Exporters 412 437 531 452 484 121 123 136 150 141 120 120 147 177 198
4 Importers 415 430 527 442 473 121 123 136 150 141 120 120 147 177 198
5 Retailers 102 115 101 120 95 76 74 93 95 95 - - - - -
6 Processors 45 45 47 45 55 26 24 24 23 24 42 43 46 45 59
7 Ginners 26 27 29 25 17 - - 27 24 24 - - - - -
8 Pressers 20 20 22 20 09 NA NA NA NA NA - - - - -
9 Stockiest 420 430 518 421 463 120 123 136 150 141 130 134 159 178 198
10 Weighmen 16 16 16 16 16 03 03 04 04 04 - - - - -
11 Crushers 26 26 26 25 18 04 02 02 02 02 - - - - -
12 Warehousemen 01 01 01 01 01 02 02 02 02 02 02 02 03 03 03
13 Coolies 920 902 1018 1213 910 262 173 373 429 668 120 128 237 145 145
14 Transporters 45 48 43 02 04 14 14 12 14 10 0 0 0 0 0
Total 3235 3306 3865 3626 3401 945 738 1165 1193 1481 659 677 897 910 1007 Note NA ndash Not Available Source Annual reports of APMC for 2009-10 to 2013-14
29
Sample size
The main refrain of this part of research study is the detailed analysis of the
primary data collected from the respondents ie market participants from APMC
about marketing services provided by the APMCs in five districts of Gulbarga
division Three APMCs from each district on the basis their performance ie best
performer average performer and low performer taken for the study The details of
the responses obtained on various services offered at APMCs yard and their level of
satisfaction towards it in the light of the statistical data obtained through the
questionnaires addressed to market participants such as commission agents hamals
traders graders etc are shown in the following part
The deep analysis of the responses from the sample size of market participants
has provided good insight into the dimensions of the marketing services and the
quality of those services rendered to the farmers seller of agriculture produce The
analysis has been done with necessary theoretical backs drops of each of the services
related to the marketing activities in the APMC yard
Table-26
District Wise Sample Size of Market Participants
Name of District Frequency Percentage Cumulative Percentage
Bidar 25 2000 2000
Gulbarga 25 2000 4000
Koppal 25 2000 6000
Raichur 25 2000 8000
Bellary 25 2000 10000
Total 125 10000 -
Source Field survey
Table 26 provides the information about the district wise frequency of sample
chosen for the present study The total sample for the study was 125 market
participants Gulbarga division constitutes of five districts from each districts 25
respondents were selected
30
Profile of Market Participant
An attempt has also been made in this part to study the socio-economic and
demographic factors of the market participants in order to examine the significant
relationship if any exist in between their profile and performance
Age Group
The age composition of the various market participants covered in the study
areas reveals some significant trends The details of the age of respondents of district
wise are provided in the following table
Table-27
Age Wise Classification of Market Participant
Sl No Name of APMC
Age of Respondent (in years) Total Below
20 21 ndash 40 41 ndash 60 60 and
above 1 Gulbarga - 18
(720) 6
(240) 01
(40) 25
(200) 2 Bidar - 18
(720) 6
(240) 01
(40) 25
(200) 3 Koppal - 18
(720) 5
(200) 01
(40) 25
(200) 4 Raichur - 18
(720) 6
(240) 02
(40) 25
(200) 5 Bellary - 18
(720) 7
(280) 01
(40) 25
(200) Total 000
(000) 90
(720) 29
(232) 06
(46) 125
(100) Source Field study Note Figures in brackets indicates percentage to total It is evident from the Table 27 that more than 34th of the total respondents
from market participants ie 90 belonged to the age group of 21- 40 years 232
of respondents belonged to the age group of 4160 years while smaller number of ie
of respondents which constitutes 48 of total respondents are in the age group of 61
years and above It is revealing to note that no number respondents Out of total 125
respondents belonged to below 20 years of age group
31
Status of Educational Qualification
The data collected through personal interview with regarding education
qualification of all market participants operating in the APMC in Gulbarga division
has provided Some useful details about their educational status which is considered
to be most significant factor in discharging their duties and responsibilities more
efficiently and effectively The detail of educational qualifications of sample group of
market participants is shown in below Table 28
Table-28
Qualification Wise Classification of Market Participant
Sl No Name of APMC
Educational Qualification Total Below
Primary Secondary Degree PG and
others
1 Gulbarga 01 (40)
11 (440)
03 (120)
10 (400)
25 (200)
2 Bidar 01 (40)
09 (360)
03 (120)
12 (480)
25 (200)
3 Koppal 01 (40)
10 (400)
03 (120)
11 (440)
25 (200)
4 Raichur 01 (40)
09 (360)
02 (80)
13 (520)
25 (200)
5 Bellary 02 (80)
11 (440)
04 (160)
08 (320)
25 (200)
Total 06 (48)
50 (400)
15 (120)
54 (432)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total It is learnt from the above Table 28 that 432 of respondents were post
graduates and other technical qualifications such ITI and other diploma qualifications
40 of the sample respondents were qualified upto higher secondary followed 12 of
respondents were graduates Only 6 were belonged to the primary category It is
however significant to note that higher secondary education and other technical
education qualification holders were majority in total sample size ie 40 to 432
as compared to degree holders ie only 12 of sample size
32
Religious Composition of Sample
Religion of respondents is more dominating factor in occupation for their
livelihood Researcher has also tried to accumulate the data about the religion of
respondents through interview schedule In the present study respondents religion was
broadly classified in 4 category ie Hindu Muslim Christian and others
Table-29
Religion Wise Classification of Marketing Participant
Sl No Name of APMC
Religion Total
Hindu Muslim Christian Others
1 Gulbarga 22 (880)
02 (80)
01 (40)
- 25 (200)
2 Bidar 22 (880)
03 (120)
- - 25 (200)
3 Koppal 21 (840)
04 (160)
- - 25 (200)
4 Raichur 21 (840)
04 (160)
- - 25 (200)
5 Bellary 23 (920)
01 (40)
01 (40)
- 25 (200)
Total 109 (872)
14 (172)
02 (060)
00 (000)
125 (1000)
Source Field study Note Figures in brackets indicates percentage to total
From the above Table 29 it is clear that majority ie 872 of total sample
size operating in study area of Gulbarga division belonged to Hindu religion followed
by Muslim religion ie 112 of sample group This is in conformity with the pre
dominantly Hindu dominant population composition of the area as compared to
Muslim religion If can be interpreted from the above that sample size comprised of
minor number ie 160 of respondents belonged to the Christian religion
33
NATURE OF PARTICIPANTS
The success or failure of any market depends upon the functionaries existing
in the market Hence the active participation of all types of functionaries is very
important in smooth conduct of market functions In order to facilitate for smooth
marketing of agriculture commodities each and every market is provided with
different market functionaries It is compulsory according to KAPM (R) Act 1966 for
every functionary functioning in the APMCs to take a valid licence from respective
APMC by paying necessary fees An analytical account of the market functionaries
operating in different selected markets are given in Table 210
Table-210
Nature of Participant
Sl No
Name of participant
Name of APMC Total
Gulbarga Bidar Koppal Raichur Bellary
1 Commission Agent
11
09
08
10
12
50 (400)
2 Hamalas 04
03
04 05 04 20 (160)
3 Trader 07 08 08 06 06 35 (2800)
4 Grader 01 01 01 01 01 5 (400)
5 Processor - 01 01 01 - 3 (240)
6 Broker 01 03 03 02 01 10 (80)
7 Others 01 - - - 01 02 (160)
Total 25 (200)
25 (200)
25 (200)
25 (200)
25 (200)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
A cursory look at the Table 210 reveals that commission agents traders and
hamals are the major market functionaries in the market Out of total 125 participants
34
respondents 40 percent were playing the role of commission agents 28 percent of
them were acting as traders and hamals constitute 16 percent The percentage of
broker grader and processor in selected sample size was 8 4 percent and 24
percent respectively The above figures shows whose role very important in market
place
Experience in Market Yard
Market participants experience in the market yard will helps to understand the
level of their satisfaction with regard to the economic benefit from the job and their
attitude towards it Satisfied market participant in APMC will strict to a single job for
a long period The details of their years of experience in market yard in the area
under study of sample size is given in the below table
Table-211
Years of Experience in Market Yard
Sl No Particulars
Experience in Market Yard
Below 10 11 ndash 20 21 ndash 30 30 and above Total
1 Gulbarga 02 18 03 02 25 (200)
2 Bidar 01 17 04 02 25 (200)
3 Koppal 01 21 03 - 25 (200)
4 Raichur 02 18 04 01 25 (200)
5 Bellary 02 22 01 01 25 (200)
Total 8 (64)
96 (768)
15 (120)
6 (48)
125 (10000)
Source Field survey Note Figures in brackets indicates percentage to total
Table 211 exhibits the experience of the respondents in the market yard of
125 market yard of 125 market participant respondents Out of total sample size
768 are laying in between 11-20 years of experience in the market yard 15
35
respondents which constitute 12 of sample group had an experience of 21-30 years
in the market yard Below 10 years and above 30 years of experience in market yard
of respondents were 64 and 48 of sample respondents Finally to conclude about
the market yard experience old market participant were high in number as compared
to the new market participants ie less than 10 years of experience in market yard
Motivational Factors ndash Sample Study
The word lsquomotivationrsquo comes from the Latin meaning ldquoTo moverdquo it generally
means an inner or outer drive to meet a need or a good This is the impelling force
which draws the human from his house and inspires her to start something on his own
The variables comprise of heredity more profitable uncertain induced
unemployment and others Accordingly by incorporating the above the researcher
has asked the respondents to rank the motives of their present profession Their
responses were presented in the following table
Table-212
Motivated Factors of Profession
Sl No Particulars
Motivated Factors Total
Heredity More Profitable
Uncertain Induced
Un Employment Others
1 Gulbarga 22 - 02 01 - 25 (200)
2 Bidar 16 03 06 - - 25 (200)
3 Koppal 18 03 03 01 - 25 (200)
4 Raichur 22 01 02 - - 25 (200)
5 Bellary 23 01 01 - - 25 (200)
Total 101 (808)
8 (64)
14 (112)
2 (16)
00 (00)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total It is evident from the Table 212 that heredity was the most dominant motive
with 8080 of sample size This group distinctively falls under ldquopushrdquo category of
profession who resorted to this profession because of same compulsions This
compulsion cited were death of Kartha to supplement meager income at home etc
36
This way followed by uncertain induced with a percentage of 1120 of
sample size The respondents quoted few reasons for choosing their profession such
as poverty no alternative jobs to do and lower education etc 64 of total
respondents opinioned that they were chosen this profession because of more
profitable
Satisfaction with Marketing Practices
In the process of marketing there are three dimensions these are time space
and form The marketing function is having a one or the combination of these three
dimensions While performing these functions the different functionaries are rewarded
for their services at every level The marketing cost the market margins and the
competition in the market is different to product to product Similarly the market
functions very from product to product for example the marketing of grains are
having different functions than that of the marketing of vegetables Respondentrsquos
satisfaction level towards these marketing practices are shown in below table
Table-213
Satisfaction of Marketing Practices
Sl No Particulars Level of Satisfaction
Total Satisfied Unsatisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 24 (960)
01 (40)
25 (200)
4 Raichur 24 (960)
01 (40)
25 (200)
5 Bellary 23 (920)
02 (80)
25 (200)
Total 118 (944)
7 (56)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
37
Table 213 shows the district wise market participant respondents level of
satisfaction towards marketing practices It could be seen from the above table that
more than 94 of respondents are of the opinion that the quality of marketing
practices practiced in the APMC yard is fully satisfied and rest of respondents ie 56
percent were fully expressed that the marketing practices are unsatisfied
The level of satisfaction in Gulbarga district APMC Koppal district APMC
and Raichur district APMC was above 96 but it was 9200 in Bidar and Bellary
From the above opinion and analysis of responses it can be concluded that few steps
are necessary to take by APMCs to make 100 satisfaction in for marketing
practices
Farmerrsquos Activeness
Market participants were interviewed with an intension to extract their level of
satisfaction in the farmerrsquos activeness in the APMC yard in selected units
Respondents are given two option regarding farmers active involvement in marketing
of their produce ie satisfied or unsatisfied The results of the investigation are
presented in Table 214
Table-214
Satisfaction with Farmers Activeness in APMC
Sl No Particulars Satisfaction with Farmers
Total Satisfied Unsatisfied
1 Bidar 13 (520)
12 (480)
25 (200)
2 Gulbarga 18 (720)
07 (280)
25 (200)
3 Koppal 10 (400)
15 (600)
25 (200)
4 Bellary 21 (840)
04 (160)
25 (200)
5 Raichur 15 (600)
10 (400)
25 (200)
Total 77 (616)
48 (384)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
38
Table 214 gives the respondents level of satisfaction with the farmerrsquos
activeness in marketing activities in APMC yard More than 61 of market
participant respondents fully satisfied with farmers activeness but 38 of them are
fully unsatisfied and suggested to participate actively in marketing activities Few
number of farmers physically visiting and actively involved during the sale of their
produce An awareness programme from APMC is very necessary to help farmers and
to motivate them to involve in marketing activities
Facilities at APMC
Basic infrastructure at APMC yard is very much essential for smooth
functioning of marketing activities The selected APMC for present study has
provided necessary facilities such as water canteen communication transport and
banking and finance etc to the market participants But all the participants
respondents are unable to get those facilities The percentage of functionary
respondents who have availed these facilities and those who have deprived of the
facilities are given in the Table 215
Table-215
Facilities at the APMC Yard
Sl No
Facilities at APMC
Name of District Total Gulbarga Bidar Koppal Raichur Bellary 1 Water 20
(1886) 19
(1792) 22
(2075) 23
(2169) 22
(2075) 106
(848) 2 Canteen 14
(2121) 13
(1969) 12
(1818) 11
(1667) 16
(2424) 66
(528) 3 Communication 24
(2264) 21
(1981) 20
(1886) 22
(2075) 19
(1792) 106
(848) 4 Market
information 22
(2075) 20
(1886) 19
(1792) 24
(2264) 21
(1981) 106
(848) 5 Transport - - - - - - 6 Health and
sanitation 11
(2291) 09
(1875) 08
(1667) 10
(2083) 10
(2083) 48
(384) 7 Banking and
Finance - - - - - -
8 Others - - - - - - Total 125
(1000) Source Field survey Note Figures in brackets indicates percentage to total
39
A glance over the above Table 215 reveals the various facilities provided at
APMC yard in selected sample size More than 84 of functionary respondents
opinioned positively about water facility 52 of them about canteen 38 about
health and sanitation etc It is to be noted here that no single APMC has provided
transportation facilities and banking and finance which is very vital in marketing
Satisfaction about Facilities
APMCs have provided several infrastructure facilities to market participants
These facilities provided by APMC to market functionaries helps them to provide
good services to farmers efficiently
Table-216
Level of Satisfaction about the Facilities
Sl No Name of the District
Level of Satisfaction Total
Fully Satisfied Not Satisfied
1 Gulbarga 24 (960)
01 (40)
25 (200)
2 Bidar 23 (920)
02 (80)
25 (200)
3 Koppal 23 (920)
02 (80)
25 (200)
4 Raichur 21 (840)
04 (160)
25 (200)
5 Bellary 21 (840)
04 (160)
25 (200)
Total 112 (896)
13 (104)
125 (1000)
Source Field survey Note Figures in brackets indicates percentage to total
It is observed from the Table 216 that a large number of market participants
(ie 896) were fully satisfied with the infrastructure facilities available inside the
market yard Nearly 104 percent expressed their dissatisfaction over the facilities
provided by APMCs Gulbarga APMC was considered to be better (9600) in
facilities as compared with other four districts selected for the present study Raichur
40
and Bellary districts APMCs had needed more important in terms of facility to satisfy
market functionaries Market participants are directed to fallow the specified
techniques These techniques are prescribed by the Indian standards institute The
techniques suggests to use proper ingredients in specified proportions The graded
processed goods bear ISI label indicating that it contained the graded and good quality
if the product The selected market participants were also asked about the quality of
marketing functions The analysis of Table 217 revel that more than 76 of
respondents had satisfied the quality of marketing function in five districts whereas
more than 20 of them not satisfied with quality of services in the market yard
41
Table-217
Level of Satisfaction with Quality of Marketing Services
Quality of Services
Gulbarga Bidar Koppal Racihur Bellary Total Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Fully
Satisfied Not
Satisfied Assembling 19 06 19 6 21 4 19 06 19 06 125
(100) Processing 22 03 22 03 23 02 22 03 22 03 125
(100) Grading 15 10 16 09 14 11 15 10 15 10 125
(100) Storing - 25 - 25 - 25 - 25 - 25 125
(100) Weighment 12 14 10 13 11 12 14 14 13 15 125
(100) Banking and finance
04 21 03 22 02 23 04 21 04 21 125 (100)
Rest house 02 23 01 24 02 23 02 23 03 22 125 (100)
Insurance - 25 - 25 - 25 - 25 - 25 125 (100)
Source Field survey Note Figures in brackets indicates percentage to total
42
CHAPTER-III CUSTOMER PERCEPTION ABOUT MARKETING
MANAGEMENT OF APMC IN GULBARGA DIVISION
INTRODUCTION
In keeping with very little of the research the survey is conducted to
supplement the evaluation through the primary data These attempts bring out the
basic problems and difficulties if any in the implementation of the APMCs Act
through state agricultural marketing board Different types of schedules are used for
evaluating the working of the APMC act However the agricultural marketing is
clearing a midwife between agricultural production and agricultural marketing on the
one hand and the former beneficiaries on the other hand But the farmers might have
direct link what so ever with marketing agencies therefore a schedule for the farmers
which has been different from what we have used for market participants As such the
marketing participant of the agriculture market are the main pillars for
implementation of the schedule The questionnaire has been personally given to
farmers of the sample groups and the researcher had a detailed personal discussion
with the market participants with regard to working or agriculture marketing The
main focus of the study was evaluation of management of agricultural produce
marketing committees in Karnataka from the point of farmers therefore our survey
schedule covers the background of farmers and market functionaries such as age
education religion family background source of incomes land holdings of both
farmers and market participant were collected Some of these aspects have been
discussed in the following paragraphs
43
Table-31
District Wise Selection of Farmers Sample Size
Name of the District Frequency Percentage Cumulative
Percentage
Gulbarga 50 200 200
Bidar 47 188 388
Koppal 49 196 584
Raichur 52 208 792
Bellary 52 208 1000
Total 250 1000 -
Source Field survey
Table 35 provides the information about the district wise selection of member
farmers which have been chosen for the present study The total sample size for the
study was 250 farmers Raichur and Bellary district form 2080 percent each and
Gulbarga district form 2000 percent and Bidar and Koppal district 188 percent and
196 respectively The member of farmers selected for the purpose of was equally
distributed to all five districts with little change in percentage The reason for that is to
identify the district among the five districts where APMCs are working upto the
aspirants of farmers
44
Table-32
Age Wise Classification of Agriculturist
APMCs District
Age in Years Total
Below 20 20 ndash 40 41 ndash 60 61 and above
Bidar 01 22 21 03 47 (186)
Gulbarga 01 23 23 03 50 (200)
Koppal 01 23 22 03 49 (196)
Raichur 01 24 24 03 52 (208)
Bellary 02 24 24 02 52 (208)
Total 06 (240)
116 (4640)
114 (4560)
14 (56)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It could be found from the Table 32 that 4640 percent of farmer respondents
were aged between 20-40 years 45-60 percent in between 41-60 years and 5-6
percent above 61 years Only 240 percent of total sample size were aged below 20
years The above figures about the age of agriculturists cleared that young and middle
aged formers are more actively participated in the APMC yard when compared to old
age farmers
Educational Qualification of Farmers
The level of the education of the farmers is one of the most important factor
which governs many more factors such as deciding the cropping pattern crop
rotation use of different inputs in farming optimum time of cultural practices and
where to sell the agricultural produce The following table shows the educational
qualifications of the farmer respondents
45
Table-33
Education Wise Classification of Respondents
Name of the APMCs
Educational Qualification
Total Literate Illiterate
Primary Secondary Degree PG and Others
Gulbarga 25 (500)
15 (300)
4 (80)
02 (40)
4 (80)
50 (200)
Bidar 23 (4894)
15 (3191)
03 (638)
02 (425)
4 (852)
47 (188)
Koppal 25 (5102)
16 (3265)
03 (612)
- (00)
5 (1021)
49 (196)
Raichur 26 (500)
16 (3076)
03 (576)
03 (576)
4 (772)
52 (206)
Bellary 28 (5385)
16 (3076)
03 (576)
- (00)
5 (963)
52 (208)
Total 127 (5080)
78 (3120)
16 (640)
07 (280)
22 (880)
250 (100)
Source Field study
Note Figures in bracket indicates percentage to total
From the above Table 33 it could be seen that out of the total 250 farmers
respondents selected for the present study 5080 percent of them are having primary
level of education 3120 percent of them have studied upto secondary Only 640
percent of total sample size possessed graduate level education followed by 280
percent post graduate and other qualification The illiterate percentage of respondents
total sample size is 880
Sources of Incomes
There are different sources of incomes available to farmers such as agriculture
income business self employment and employment in other organizations
Agriculture income is considered as major source of income to them and other
sources of incomes are secondary importance The details of their sources of incomes
along with agriculture incomes is shown in the table below
46
Table-34
Sources of Income of Respondents
Sl No
Name of the Market
Source of Income Total
Agriculture Business Employment Others
1 Gulbarga 40 (800)
6 (120)
2 (40)
2 (40)
50 (200)
2 Bidar 38 (8085)
5 (1063)
2 (1425)
2 (427)
47 (188)
3 Koppal 39 (7959)
5 (1020)
2 (408)
3 (613)
49 (196)
4 Raichur 42 (8076)
6 (1154)
3 (576)
1 (194)
52 (208)
5 Bellary 42 (8076)
6 (1154)
2 (385)
2 (385)
52 (208)
Total 201 (8040)
28 (1120)
11 (440)
10 (40)
250 (1000)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 34 that 8040 of respondents were having
agriculture income and 1120 percent had business income followed by 440 percent
and 40 percent of respondents from employment and other sources respectively This
will clearly indicates the much dependency of farmer respondents on agriculture for
income to meet the cost of livelihood This fact was same in five districts selected for
the study
Annual Gross Income
The farmers are getting incomes not only from agriculture but also from the
other sources discussed in previous table The gross annual income of the farmers
itself indicates the standard of living and their life style As far as in other farmers are
concerned they fully depend on agriculture for their livelihood Due to uncertainty in
agricultural production their annual income is getting fluctuation which results suicide
of many farmers in Karnataka
47
One side no guaranteed regular income and the other side rise in prices of
consumable goods forced them for borrowing money from outside to meet cost of
living and agricultural expense The researcher collected information about annual
gross income of respondents and shown in below table
Table-35
Annual Gross Income of Respondents
Sl No Annual income (Rs) Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 50000 to 150000 8 (160)
8 (1702)
8 (1632)
9 (1731)
9 (1730)
42 (166)
2 150001 to 250000 18 (360)
17 (3617)
17 (3469)
19 (3654)
18 (3462)
89 (356)
3 250001 to 350000 14 (280)
13 (2766)
14 (2857)
15 (2885)
15 (2885)
71 (289)
4 350001 to 45000 5 (100)
5 (1063)
5 (1022)
5 (962)
6 (1154)
26 (104)
5 450001 and above 5 (100)
4 (852)
4 (1020)
4 (768)
5 (769)
22 (88)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
It is evident from the above Table 35 that 166 percent of the respondents
were having the income of Rs 50000 ndash 150000 per annum income category and
356 percent had an income between Rs 150001 to Rs 250000 The percentage of
respondents in the Rs 250001 to 350000 range was found to be 289 percent
whereas those with an income less than Rs 450000 but above Rs 350001
accounted for 104 percent of the respondents The respondents with an annual
income greater than Rs 450000 made up the remaining 88 percent of the total
sample size It is learnt from the study that the farmers were from different types of
age groups education qualification and income range
48
Type of Family
Type of the family also determines the income of farmers When the partition
of agriculture land take place it badly affects on the quantity of agriculture
production If agriculture activities are carried out in joint family leads bulk
production and minimization of agriculture cost The data regarding the type of family
was also collected through schedule of questionnaire prepared for the farmers is
shown in below table along with their percentage to total sample size
Table-36
Type of Family of Farmer Respondents
Sl No Particulars Type of Family
Total Nuclear Family Joint Family Individual
1 Gulbarga 36 (1988)
14 (2029)
- 50 (2000)
2 Bidar 34 (1878)
13 (1884)
- 47 (1880)
3 Koppal 35 (1933)
14 (2028)
- 49 (1960)
4 Raichur 37 (2044)
15 (2173)
- 52 (2080)
5 Bellary 39 (2157)
13 (1886)
- 52 (2080)
Total 181 (7240)
69 (2760)
- 250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table depicts the classification of respondents on the basis of type
of family ie nuclear family or joint family 7240 percent of sample size are
belonged to nuclear family and remaining 2760 percent are living still in joint family
This clearly indicated that majority of preferred not to stay with joint family but want
to be in nuclear family
49
Family Size
Family size means the number of family members staying together in a single
family The farmers were also asked about the number of members living together
which helps to know their tendency towards big family or small family Big family
with small agriculture land holding found to be different to manage economic needs
and vice versa Keeping this point in mind data was collected about the size of family
members and is shown in Table 37
Table-37
Family Size of Respondents
Sl No Name of the Market Family Members
Total Below 4 4 ndash 8 8 ndash 12 Above 12
1 Gulbarga 15 (2027)
27 (2000)
05 (2083)
03 (1764)
50 (2000)
2 Bidar 14 (1891)
25 (1851)
05 (2083)
03 (1764)
47 (1880)
3 Koppal 15 (2027)
24 (1777)
06 (2500)
04 (2353)
49 (1960)
4 Raichur 15 (2027)
31 (2296)
04 (1667)
02 (1176)
52 (2080)
5 Bellary 15 (2028)
28 (2076)
04 (1667)
05 (2943)
52 (2080)
Total 74 (2960)
135 (5400)
24 (960)
17 (680)
250 (10000)
Source Field study Note Figures in bracket indicates percentage to total
The above table presents the classification of the respondents on the basis of
the size of the family members The category is done family below four members 4
members to 8 farmers respondents which constitute 54 percent of the sample group
had members between 4-8 and 2960 percent of sample size had family members
below 4 followed by 960 percent and 680 percent had 8-12 members and above 12
members respectively
50
Agriculture Land Holdings
The annual gross income of the respondents largely depends on the agriculture
land holdings by the farmers an attempt has been made to collect the details of the
agriculture land holding by the farmer respondents The size of the land holdings and
socio economic conditions of the farmers play an important role in farming as well as
marketing activities The size of the land holdings by sample size selected for the
present study is shown in the below table
Table-38
Total Agriculture Land Holdings
Sl No
Name of the Market
Total Agriculture Land Holding Total Below 5
Acres 5 ndash 10 Acres
11 ndash 15 Acres
Above 16 Acres
1 Gulbarga 3 (60)
20 (400)
9 (180)
18 (360)
50 (2000)
2 Bidar 3 (638)
19 (4042)
9 (1915)
16 (3405)
47 (188)
3 Koppal 3 (0612)
20 (4082)
9 (1837)
17 (3569)
49 (1960)
4 Raichur 4 (769)
21 (4038)
10 (1923)
17 (327)
52 (2080)
5 Bellary 4 (769)
21 (4038)
9 (1730)
18 (3463)
52 (208)
Total 17 (68)
101 (404)
46 (184)
86 (3440)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above Table 38 revels that 404 percent of the total respondents are small
farmers (ie 5 acres or more but less than 10 acres) 3440 percent of sample groups
are large farmers ie 16 acres or more than 16 acres and only 68 percent of
respondents are having less than 5 acres of cultivating land (marginal farmers)
Major Crops Grown
Generally agriculture crops are grown on basis and depending on the agro
climatic conditions as well as the socio-economic conditions of the farmers The study
51
was conducted to know the major crops grown by the farmer respondents selected for
the present study
Table-39
Annual Crop Grown in Land
Crop Quantity in Quintals
Total 1-25 26-50 51-75 76-100 100 and
above
Red gram 10 50 22 06 10 98
Green gram 96 16 04 - - 116
Black gram 22 38 04 64 - 128
Jawar 99 36 04 02 - 141
Maize 11 33 19 - 02 65
Bajra 07 02 05 07 04 25
Bengal gram 09 35 12 - 36 92
Sugarcane 21 08 04 08 - 41
Others 06 08 12 06 - 32 Source Field study
The quantity of crop grown by the farmers annually is given in the above
Table 39 The data about the different crop grown by the sample size of farmers are
shown in quantity along with the percentage of each crop to total crop grown by the
sample farmers
The table reveals that 5640 percent of the farmers respondents cultivate jowar
followed by 4640 percent farmers ever growing green gram red gram (3920)
maize (26) Black gram (2560) percent Bengal gram (368) and sugarcane
(1640) other crops grown constitute 5120 to total which included onions
groundnuts pulses chillies wheat and paddy etc
It can be seen clearly from the same table that red gram jowar green gram
and black gram are cultivated by the farmer respondents partially for self consumption
purpose and partially for selling It could also be noted from the same those
commercial crops like sugarcane bajra maize chillies sunflower paddy and onions
52
find a major portion in the cropping pattern of the farmer respondents This clearly
indicates the higher degree of commercialization of agricultural production by the
farmers in the Gulbarga division
Preference of Sale of Agriculture Produce
Marketing today is becoming more complicated with the advancement of the
civilization The commodity to be marketed must be of value It shouldnrsquot be a free
gift of the nature easily available for mere picking The farmer wish to have the
maximum share in the price of the products and on other side he wish to purchase the
inputs at the minimum price As he is interested to maximize his profits on sale of his
agriculture produce he will always in search for the market place where he can get
good price An attempt has been made in schedule to acquire information about the
preference of sale of agriculture produce by the sample respondents is shown in the
Table 310 and 311
Sale of Agriculture Produces
Table-310
Sale of Agriculture Produces
Sl No
Name of Market
Sale of Agriculture Produces Total
Sample Open Market APMC Confirmation Other
1 Gulbarga 21 (200)
46 (200)
080 (200)
01 (2500)
50 (2000)
2 Bidar 20 (1905)
43 (1870)
078 (1950)
-- 47 (188)
3 Koppal 21 (200)
45 (1956)
078 (1950)
01 (2500)
49 (196)
4 Raichur 22 (2095)
48 (2086)
083 (2075)
01 (2500)
52 (208)
5 Bellary 21 (200)
48 (2088)
081 (2025)
01 (2500)
52 (208)
Total 105 (420)
230 (920)
04 (16)
04 (16)
250 (100)
Source Field survey Note Figure in bracket indicates percentage to total
53
After the development of regulated markets farmers preferred to sell their
agriculture produce in the APMC yard this was clear in the Table 310 The response
of sample size was collected about sale of the agriculture produce 92 percent of
sample size preferred to sold only in the APMC market as to overcome from the
problems and malpractices in the open markets and 42 percent in open market 16
percent of sample each in confirmation market and other type of sale
Table-311
Preference of Sale of Agriculture Produces by Respondents
Sl No
Name of the Market
Preference of Sale Total Sample Local
Market Taluks Market
District Market
Other State
1 Gulbarga 23 (200)
23 (2035)
25 (2016)
01 (250)
50 (200)
2 Bidar 22 (1913)
21 (1858)
23 (1855)
01 (2500)
47 (188)
3 Koppal 23 (200)
22 (1946)
24 (1935)
-- 49 (196)
4 Raichur 24 (2086)
24 (2124)
26 (2096)
01 (2500)
52 (208)
5 Bellary 23 (2001)
23 (2037)
26 (2098)
01 (2500)
52 (208)
Total 115 (460)
113 (452)
124 (496)
04 (160)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The above table gives the preference of sale of agriculture produce by the
farmer respondents Researcher has discussed with the respondents and mobilized the
data whether they prefer to sell their agricultural produce in local market taluka or
district market
Higher percentage of farmers ie 4960 is sold their agricultural produce in
the district to get better price compared to local market 46 percent of them opinioned
that they are selling their produce in local markets due to infrequency of
transportation facilities and to save the expenditure from bringing produce to district
or taluk market Some farmer respondents ie 4520 percent are sold near to taluka
market and rest of them (160 percent) through direct sale to whole seller retailer or
brokers etc
54
Mode of Transportation
Most of the agricultural goods are not consumed at the places of their
production They are required to be transported in the various stages of the market
Right from lifting of the produce from the threshing floor to its ultimate consumer the
transportation is required to the farmer to bring the agricultural produce to the market
The various means of transport are used These are bullock carts horse tanga tractor
trolleys trucks etc Transport being the most important function of marketing In case
of transport in the rural India though in modern days its importance is declining now
the power operated means like tractors trolley trucks are being used but still bullock
cart and horse tonga is an important means of transport in agricultural marketing The
study had been conducted to know the mode of transport means used by the farmer
respondents to transport the agricultural produce from farm place to market place
same is presented in the table
Table-312
Mode of Transportation of Agriculture Produce by Respondents
Sl No
Name of the Market
Mode of Transportation Total Sample Bullock
Cart Tractor and
Trucks Hired
Vehicles Own
Vehicle 1 Gulbarga 18
(200) 16
(1928) 21
(1963) 01
(2500) 50
(200) 2 Bidar 17
(188) 15
(1807) 20
(1869) - 47
(188) 3 Koppal 18
(200) 16
(1928) 21
(1963) 01
(2500) 49
(196) 4 Raichur 19
(2111) 17
(2048) 22
(2056) 1
(2500) 52
(208) 5 Bellary 18
(2009) 19
(2289) 23
(2149) 01
(2500) 52
(208) Total 90
(360) 83
(322) 107
(428) 04
(160) 250
(100) Source Field study Note Figures in bracket indicates percentage to total It can be seen from the above table that maximum ie more than 42 percent
of our farmer respondents were transported their agriculture produce through hired
vehicle followed by 360 percent of them through bullock cart owned by themselves
Modern means of transportation such as tractors and trucks are used by 322 percent
of sample size The above figure in table indicates that dependency on traditional
55
mode of transportation was decreasing when it compared to modern mean to
transportation
Market Charges
As per the bye laws approved by the chief marketing officer according to the
Act market charges are levied by the market committees In all selected market
committees for the present study in the Gulbarga division only three types of market
charges are levied to the farmers for sale of his agricultural produce in the regulated
markets One commission to commission agent which is fixed at 2 in all the markets
but other market charges different from one market to another market depending upon
the decisions to this effect by the respective market committees A part from
commission all APMCs in the sample size charges hamali and weighment charges In
some APMCs cleaning charges are also levied for cleaning the produce which is
included in other markets in hamali Thus no unauthorized deductions are made now
in any of the markets in the division Few secretaries of the APMCs during the field
study opined that the charges are quite nominal and the services rendered are more
valuable than the charges and they cannot be quantified
Table-313
Market Charges by APMC
Sl No Name of Market Market Charges Total Sample Very Low Very High Fair Average
1 Gulbarga 03 (60)
15 (300)
10 (200)
22 (440)
50 (200)
2 Bidar 02 (425)
15 (3191)
11 (2340)
19 (4044)
47 (188)
3 Koppal 02 (408)
14 (2857)
11 (2245)
22 (4490)
49 (196)
4 Raichur 03 (576)
16 (3076)
10 (1923)
23 (4423)
52 (208)
5 Bellary 02 (384)
17 (3269)
10 (1923)
23 (4424)
52 (208)
Total 12 (480)
77 (3080)
52 (2080)
109 (4360)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total From the above table it could be seen that 4360 percent of farmer respondents
are of the opinion that APMC is charging average ie neither too high nor too low
market charges on the sale of agricultural produce by the farmers On the other hand
56
3080 percent of farmer respondents dissatisfied with the market charges by the
APMC as they expressed that market charges are very high in APMC yard as
compared with open market Though 480 percent of them are fully satisfied and
2080 percent of respondents were reacted positively about the market charges
Carrying Costs
In case of agricultural marketing the transport cost is to be paid by the farmer
if he is selling the produce in the market but if he is selling to the village trader the
cost is to be paid by the trader Carrying cost is the most important cost in the process
of agricultural marketing The carrying cost is more important in context of place
utility of product The efficiency of the marketing is dependent on reducing the cost
of carrying Generally the cost of carrying of bullock cart is higher as compared to
the power operated means A survey was conducted to ascertain the opinion of the
farmer respondents towards the carrying cost paid by them in study area and the data
so collected was shown in the table below
Table-314
Carrying Cost Paid by Respondents
Sl No Name of Market Carrying Cost Total Sample Very Low Very High Fair Average
1 Gulbarga 06 (1200)
10 (2000)
03 (600)
31 (6200)
50 (200)
2 Bidar 05 (1063)
09 (1915)
03 (638)
30 (6384)
47 (188)
3 Koppal 06 (1224)
09 (1836)
02 (408)
32 (6532)
49 (196)
4 Raichur 07 (1346)
11 (2115)
03 (576)
31 (5963)
52 (208)
5 Bellary 06 (1153)
11 (2115)
04 (769)
31 (5963)
52 (208)
Total 30 (1186)
50 (2000)
15 (580)
155 (6234)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The above table shows the carrying costs paid by the farmer respondents to
carry the goods from one place to another place with in the market yard One thing is
clear from the above table that more than 60 of respondents are satisfied with
carrying costs paid by them But minor percentage ie 20 percent of respondents not
57
satisfied saying transporters were charging heavy cost and 580 percent were
opinioned that transportation cost paid by them was neither high or nor low but it was
fair From these data analysis maximum number of farmers respondents were fully
and partially satisfied with carrying cost paid in the market yard
Facilities Provided at APMC
Table-315
Facility Provided at APMC
Particulars
Districts Grand Total
Gulbarga Bidar Koppal Raichur Bellary
Yes No Yes No Yes No Yes No Yes No Yes No Total
Water 26 23 27 24 26 24 27 23 27 23 133 (5320)
117 (4680)
250 (100)
Toilet 4 46 4 43 4 45 5 47 5 47 22 (5320)
228 (9120)
250 (100)
Canteen 13 37 12 35 12 37 13 39 12 39 62 (2480)
188 (7520)
250 (100)
Communication 27 23 26 23 27 22 26 24 27 25 135 (5400)
115 (4600)
250 (100)
Shopping property
21 29 20 27 20 29 20 32 20 32 101 (4040)
149 (5960)
250 (100)
Market information
28 22 27 20 27 22 29 23 29 23 140 (5600)
110 (4400)
250 (100)
Other facilities (if any)
29 21 28 19 28 21 30 22 30 22 145 (5800)
105 (4200)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Table-316
Coefficient Correlation between Varieties with in Facilities Provided by APMC
Sl No
Facilities by APMC
Facilities by APMC
Water Toilet Canteen Commu-nication
Shopping Property
Market Information
Other Facilities
1 Water 1000 235() 535() 984() 749() 428() (a)
2 Toilet 235() 1000 474() 230() 376() 218() (a)
3 Canteen 535() 474() 1000 526() 693() 505() (a)
4 Communication 984() 230() 526() 1000 749() 411() (a)
5 Shopping property
749() 376() 693() 749() 1000 705() (a)
6 Market information
428() 218() 505() 411() 705() 1000 (a)
7 Other facilities (if any)
(a) (a) (a) (a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
58
The coefficient correlation calculated between the variables (one variable with
the another variable) within the facilities provided by APMC is shown in the above
table Each variable is positively correlated with other variable
Table-317
lsquotrsquo - Test Values
One-Sample Statistics
Facilities by APMC N Mean Std Deviation
Std Error Mean
Water 250 14680 5000 3162E-02
Toilet 250 19120 2839 1795E-02
Canteen 246 17480 4351 2774E-02
Communication 250 14600 4994 3158E-02
Shopping Property 246 15894 4929 3143E-02
Marketing Information 250 14400 4974 3146E-02
Other Facilities 145 20000 0000(a) 00000 Note a) Cannot be computed because the standard deviation is 0
One-Sample Test
Facilities by APMC
Test Value = 0
t Df Sig
(2-tailed) Mean
Difference
95 Confidence Interval of the
Difference
Lower Upper
Water 46424 249 000 14680 14057 15303
Toilet 106500 249 000 19120 18766 19474
Canteen 63015 245 000 17480 16933 18026
Communication 46225 249 000 14600 13978 15222
Shopping Property 50573 245 000 15894 15275 16513
Marketing Information
45776 249 000 14400 13780 15020
59
Dissemination of Market Information
The dissemination of market information is most important so to make the best
use of this information There is no use of collection of data if it is not disseminated
well in time There are different sources for dissemination of market information such
as news papers radio and television department of government post and telephone
etc
The different news papers published in English Hindi and regional languages
are publishing the information about piracy of various commodities in different
markets There are periodical magazines and journals published weekly fortnightly or
monthly Radio and television is depicting the news about markets and broadcast and
televise the information about prices daily in its programmes The various department
of the government publish various reports concerned with agricultural marketing The
traders exchange the information about prices and arrivals in different markets
through telephone or through letters Price bulletins are published by directorate of
marketing and inspection providing information about prices and personal contact
between farmer to farmers farmer to trader etc is also a source of information The
following table provides the details of responses of source of market information
Table-318
Sources of Market Information
Sl No Particulars Districts
Total Gulbarga Bidar Koppal Raichur Bellary
1 Newspaper 32 (2013)
30 (1886)
31 (1950)
33 (2075)
33 (2015)
159 (636)
2 Radio and TV 42 (1981)
40 (1886)
42 (1981)
44 (2075)
44 (2075)
212 (848)
3 Dept of government 05 (2083)
05 (2083)
05 (2083)
05 (2083)
04 (1667)
24 (96)
4 Post and telephone - - - 01 (5000)
01 (5000)
02 (08)
5 Personal contact - - - 01 (5000)
01 (5000)
02 (08)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
60
A comparative analysis of sources of market information reveals that 848
percent of farmer respondents obtained the market information through radio and
television followed 6360 percent from newspapers and 372 from price bulletins
about the market 96 of total sample size depended on the various departments of
the governments such as directorate of economics and statistics of the central
government directorate of economics and statistics of the sates the agricultural
marketing departments of states etc about the prices in different regulated markets
Personal contact and post and telephone sources of market information is considered
to be a least sources from respondents
Table-319
Defects in Market Information
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Ignore retail prices 11 (2200)
10 (2553)
10 (2041)
11 (2115)
11 (2115)
53 (212)
2 Delay in news 13 (2600)
12 (2553)
13 (2653)
14 (2692)
14 (2692)
66 (2640)
3 Wide range of prices 05 (1000)
06 (1277)
06 (1224)
06 (1154)
07 (1346)
30 (1200)
4 Incomplete information
08 (1600)
08 (1702)
08 (1632)
09 (1730)
08 (1538)
41 (1640)
5 Illiteracy 07 (1400)
07 (1489)
07 (1428)
08 (1538)
08 (1538)
37 (148)
6 Others 06 (1200)
04 (851)
05 (1020)
04 (769)
04 (769)
23 (920)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
From the above table it can be seen that farmers are getting different
advantages for grading the products Their response is not homogenous ie 38
percent of the farmers are supported grading in easy marketing of the agriculture
produce 9680 percent are favoured grading in establishing to face competition and
61
128 percent of sample group opinioned about the grading that it will helps in
obtaining higher prices Only 6 of them favoured to reduction of cost of marketing
and 64 to easy to get finance facilities
Table-320
Ranking of Defects in APMC
Defects in APMC Ranking of Defects
Total First Second Third Fourth
No advance fund 32 (120)
216 (864)
02 (08)
02 (08)
250 (100)
Difficulty of storage 230 (920)
14 (560)
4 (160)
04 (160)
250 (100)
Lack of transportation 10 (40)
20 (80)
218 (872)
02 (080)
250 (100)
Lack of grading 10 (40)
179 (716)
02 (080)
59 (236)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total The survey of APMC defects to rank on the basis of the respondents
preferences is shown in the above table 92 of the total respondents were opinioned
that the major defect in the APMC yard is difficulty of storage facilities followed by
no advance fund to farmers to meet the pre harvest expenses which constitute 864
of sample group
Table-321
Coefficient Correlation between Variables within Defects in Regulated Markets
Sl No
Defects in Regulated Markets
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 No Advance Money 1000 -354() 763()
2 Difficulty of Storage -354() 1000 044
3 Lack of Transport 763() 044 1000 Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
62
The details of the coefficient correlation calculated between all the variable of
defects in regulated markets are given in the above table Some variables within the
defects in regulated markets are found positive and negative correlated with each
other
Table-322
Correlation between Facilities Provided by APMC with Effects in Regulated
Markets
Sl No Facilities by APMC
Defects in Regulated Markets
No Advance Money
Difficulty of Storage
Lack of Transport
1 Water - 269 () 058 - 218 ()
2 Toilet - 114 074 - 057
3 Canteen - 059 - 097 - 116
4 Communication - 276 () - 0062 - 222 ()
5 Shopping property - 173 () - 008 - 166 ()
6 Market information - 293 () - 141 () - 232 ()
7 Other facilities (if any)
(a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant The above table shows the computed result of correlation between the
facilities provided by the APMC to the farmers in the APMC with the defects
prevailing in the market yard The correlation was found significant between water
facilities communication facility shopping property and market information with no
advance money with a value -0269 -0276 -0173 and -0293 respectively The
correlation was insignificant between toilet and canteen facility in the market yard
with the no advance money
Difficulty of storage in the market yard is one of the most severe problem
found in the selected APMC yard The correlation between difficulty of storage with
the facilities by APMC were found insignificant in all cases except with market
information ie - 0141 But with lack of transport defect in the market yard the
63
correlation was insignificant between toilet and canteen with the transport defect with
a value of -0057 and -0116 respectively
Table-323
Facilities to Improve Market Efficiency
Facilities Ranking of Facilities
Total First Second Third Fourth Fifth
Trade more commodities 24 (96)
173 (692)
49 (196)
02 (08)
02 (08)
250 (100)
Increase in facilities 221 (884)
22 (880)
03 (12)
02 (08)
02 (08)
250 (100)
Role of government 34 (136)
29 (116)
175 (700)
06 (240)
06 (240)
250 (100)
Representative from farmers 04 (160)
20 (80)
10 (40)
212 (848)
04 (160)
250 (100)
Reduction in market fee 04 (16)
100 (400)
55 (220)
41 (1640)
50 (200)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-324
Coefficient Correlation between Variables of Facilities to
Improve Market Efficiency
Sl No
Facilities to Improve Market
Efficiency
Facilities to Improve Market Efficiency More
Commodities to Trade
Increase in
Facilities
More Role of Government
Representation From Framers
1 More commodities to trade
1000 419() -316() 355()
2 Increase in facilities
419() 1000 -619() 048
3 More Role of Government
-316() -619() 1000 336()
4 Representation from Framers
355() 048 336() 1000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
64
The above table depicts the values of the coefficient correlation calculated
between the variables of facilities suggested by the farmer to improve market
efficiency in the APMC yard
Table-325
Correlation between Facilities Provided with Facilities to Improve Market
Efficiency
Sl No
Facilities Provided by
APMC
Facilities to Improve Market Efficiency More
Commodity to Trade
Increase in
Facilities
More Role of Government
Representation from Farmers
1 Water -221() 098 -212() -167() 2 Toilet -100 -300() 220() 181() 3 Canteen -028 -076 -129() -089 4 Communication -218() 103 -222() -167() 5 Shopping
property 057 019 -249() 008
6 Market information
-073 116 -353() -176()
7 Other facilities (if any)
(a) (a) (a) (a)
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The data collected about the opinion of the farmer respondents towards the
facilities provided by APMC is correlated with the suggestions obtained from them to
improve market efficiency further was given in the above table The result of
correlation is shown significant between water and communication facilities with
more commodities need to be allowed to trade under notified agriculture crops in the
APMC yard the correlation value is -0221 and -0218 respectively
A negative correlation between toilet and increase in market facilities ie -03
clearly indicates that APMC should concentrate on other facilities to improve market
efficiency other than toilet facility The government is required to play a vital role in
the APMC yard to improve the market efficiency by providing financial assistance to
APMC officials enabling them to provide essential facilities to the farmers and market
functionaries The correlation was negatively correlated between the facilities
provided by APMC listed in the above table except in toilet facility ie positive
correlation 0220 The highest negative correlation was computed between market
65
information with government role ie -0353 followed by -0249 (between shopping
property with government role) The farmersrsquo representation in the market committee
is also one of the important aspect in availing market facilities The correlation
between farmers representation with market facilities shows negative except in toilet
facility it is positive correlation ie 0181
Table-326
Correlation between Defects in Regulated Markets with Facilities to Improve
Market Efficiency
Sl No
Defects in Regulated Markets
Facilities to Improve Market Efficiency
More Commodities to
Trade
Increase in Facilities
Role of Government
Reduction in Market Fees
1 No advance money
611 () 039 343 () 439 ()
2 Difficulty of storage
-118 043 139 () 019
3 Lack of transport facility
500 () 059 445 () 895 ()
4 Lack of Gradation facility
-0115 0410 135 () 117
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
The defects in the regulated markets were ranked by the farmers on their
preferences were also attempted to correlate with the additional facilities to be
provided to improve the market efficiency The correlation was positively correlated
between no advance money and lack of transport facility with the more commodities
to be permitted to trade in the market yard with value 0611 and 0500 respectively
No negative correlation was found between any of variables between defects in
regulated markets with the farmers opinions to improve market efficiency ie
increase in facilities Reduction in the market fees and charges is the another way for
the APMC officials to improve the market efficiency the correlation result is positive
with the market defects ie highest positive correlation with lack of transport facility
66
with reduction in market fees (0895) followed by no advance money with reduction
in market fees (0439) and (0117) between lack of gradation and reduction in market
fees Government role was also positively correlated to over come from all the defects
prevailing in the regulated market in the direction to improve market efficiency (the
correlation result was ranged between 0135 to 0445) Few defects were highly
correlated and others defects were less correlated with role of government variable
67
Table-327
Pearson Correlations
Correlations 18a 18b 18c 18d 19a 19b 19c 19d 19e
Pearson Correlation 18a 1000 -354() 763() 735() 611() 039 343() 439() 469() 18b -354() 1000 044 131 -118 043 139() 019 072 18c 763() 044 1000 911() 500() 059 445() 895() 898() 18d 735() 131 911() 1000 987() (a) 987() 948() 947() 19a 611() -118 500() 987() 1000 419() -316() 355() 1000() 19b 039 043 059 (a) 419() 1000 -619() 048 (a) 19c 343() 139() 445() 987() -316() -619() 1000 336() 1000() 19d 439() 019 895() 948() 355() 048 336() 1000 1000() 19e 469() 072 898() 947() 1000() (a) 1000() 1000() 1000
Sig (2-tailed) 18a 000 000 000 000 546 000 000 000 18b 000 510 276 065 508 033 781 611 18c 000 510 000 000 377 000 000 000 18d 000 276 000 000 000 000 000 19a 000 065 000 000 000 000 000 000 19b 546 508 377 000 000 491 19c 000 033 000 000 000 000 000 000 19d 000 781 000 000 000 491 000 000 19e 000 611 000 000 000 000 000
Note Correlation is significant at the 001 level (2-tailed) Correlation is significant at the 005 level (2-tailed) a Cannot be computed because at least one of the variables is constant
68
Infrastructure Facilities in the APMC Yard
Efficient marketing infrastructure such as wholesale retail and assembly
markets and storage facilities is essential for costndasheffective marketing to minimize
post harvest losses and to reduce health risks Markets play an important role in rural
development income generation food security developing rural market linkages and
gender issues Planners need to be aware of how to design markets that meet a
communityrsquos social and economic needs and how to choose a suitable site for a new
market In many cases sites are chosen that are inappropriate and result in under use
or even no use of the infrastructure constructed It is also not sufficient just to build a
market attention needs to be paid to how that market will be managed operated and
maintained In most cases where market improvements were only aimed at
infrastructure upgrading and did not guarantee maintenance and management most
failed within a few years The details of the availability of infrastructure and farmers
opinion is shown in the following tables
69
Table-328
Infrastructure Facilities in the APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
Available Not Available Available Not
Available Available Not Available Available Not
Available Available Not Available Available Not
available Total
Transport 32 18 35 12 36 13 39 13 42 10 184 (7360)
66 (2640)
250 (100)
Cold storage 02 48 02 45 01 48 03 49 06 46 14 (560)
236 (9440)
250 (100)
Storage 35 15 38 09 36 13 37 15 40 12 186 (7440)
64 (2560)
250 (100)
Processing 30 20 35 12 38 11 41 11 38 14 182 (7280)
68 (2720)
250 (100)
Grading 28 22 40 07 41 08 40 12 37 15 186 (7440)
64 (2560)
250 (100)
Weighment 45 05 42 05 41 08 45 07 44 08 217 (8680)
33 (1320)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
70
Table-329
Satisfaction of Infrastructure Facilities in APMC Yard
Infrastructure Facilities
Gulbarga Bidar Koppal Raichur Bellary Grand Total
S NS T S NS T S NS T S NS T S NS T S NS T
Transport 30 20 50 31 16 49 35 14 42 34 18 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Cold storage 01 49 50 - 47 47 - 49 49 01 51 52 02 50 52 04 (160)
246 (9840)
250 (100)
Storage 32 18 50 29 18 47 27 22 49 33 19 52 38 14 52 159 (6360)
91 (3640)
250 (100)
Processing 25 25 50 28 19 47 31 18 49 38 14 52 35 17 52 157 (6280)
93 (3720)
250 (100)
Grading 22 28 50 35 12 47 36 13 49 37 15 52 36 16 52 166 (6640)
84 (3360)
250 (100)
Weighment 41 09 50 36 11 47 40 09 49 42 10 52 42 10 52 201 (8040)
49 (1960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total S ndash Satisfied NS ndash Not Satisfied T ndash Total
71
Defects in Weighing
As a rule when produce enters the market every agricultural produce has to
be weighed in the presence of the licensed weighmen and the receipt for weighment
has to be given to the farmer But even this system has certain defects as follows
Meager number of weighmen
Time of weighment of the produce
Old weighment equipments
The details of weighing practices in the APMC yard and the farmer
respondents opinion is shown in the following table
Table-330
Causes of Defects in Weighing
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Absence of licenced weigh man
20 19 19 18 19 95 (3800)
2 Under weighting 25 22 24 26 25 122 (4880)
3 Favouring for buyer
05 03 02 03 03 16 (640)
4 Faulty weights 00 02 01 02 02 07 280)
5 Faulty weight machineries
00 02 03 03 02 10 (400)
6 Others 00 00 00 00 01 01 (040)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
Farmer respondents were identified under weighing was followed by the
absence of licensed weigh men and faulty weigh machines
72
Table-331
Importance of Grading of Produce
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Easy marketing 18 (3600)
17 (3617)
19 (3877)
20 (3846)
21 (4038)
95 (3800)
2 Reduction of cost 05 (1000)
03 (638)
02 (408)
02 (384)
03 (576)
15 (600)
3 Higher prices 05 (1000)
02 (425)
08 (1632)
10 (1923)
07 (1346)
32 (128)
4 Encourage competition
20 (4000)
18 (3829)
15 (3061)
19 (3653)
20 (3846)
92 (3680)
5 Easy to get finance 02 (400)
07 (1489)
05 (1020)
01 (192)
01 (192)
16 (640)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Processing of Produce
In agriculture marketing process was not an important function The most of
the commodities were selling in their original form But in modern age with change
in the tastes and preferences of the people and with the introduction of new
technology like refrigerator milling and banking of food grains the consumers
demand for processed goods has increased So in the modern system of marketing the
processing has become a most important function of the marketing
By processing we mean the change of the form of the product before its
consumption The processing of the agricultural products is having the advantages
such as add the value in the product converts into edible form preservation for longer
period use of surplus food less cost of production wide extent of the market and
generation of employment The study about the opinion of farmer respondents
towards the importance of processing in agriculture marketing was conducted and the
result is shown in the below Table 332
73
Table-332
Importance of Processing of Produce
Sl No
Particulars Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Add the value 45 (9000)
43 (9149)
45 (9184)
47 (9038)
47 (9038)
227 (9080)
2 Preservation for longer period
38 (7600)
36 (7660)
37 (7551)
40 (7692)
39 (7500)
190 (760)
3 Less cost of production
10 (1000)
09 (1915)
09 (1837)
10 (1923)
10 (1923)
48 (1920)
4 Wide extent of the marketing
03 (600)
03 (638)
03 (612)
03 (576)
04 (769)
16 (640)
5 Use of surplus food 01 (200)
- 01 (204)
01 (192)
01 (192)
04 (160)
Total 50 (200)
47 (180)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The Table 332 reveals that the importance of processing of agriculture
producing in marketing more than 90 percent of farmer respondents are fully agreed
that processing definitely going to add the value to the agriculture producing in
marketing At the same time 76 percent of sample group are favoured that processing
helps in preservation of agriculture produce for longer period and 1920 percent and
640 percent of farmer respondents are opined that processing of agriculture produce
is important for less cost of production and wide extent of the marketing respectively
Only a minor percent ie 160 supported the processing helps to use of surplus food
From the above analysis it can be said that processing not only helps to farmers but
also to buyer of agriculture produce in many ways
74
Satisfaction towards Insurance Facilities
Table-333
Level of Satisfaction of Insurance Facilities
Sl No Satisfaction Level Agriculture Insurance
Total Insured Non-Insured
1 Satisfied 238 (9917)
02 (083)
240 (9600)
2 Unsatisfied 10 (10000)
- 10 (400)
Total 248 (9920)
02 (080)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Finance Requirements
According to Pyle ldquoMoney or credit is the lubricant that facilitates the
marketing machinerdquo there can be obstacles in performing various activities in case
there are inadequate funds to meet the expenditure involved in these functions The
biggest need of finance is to purchase the stock of agriculture produce and to meet the
agriculture expenses for farmers In the agricultural marketing the finance is having
more importance because of the nature of agricultural marketing The production is
seasonal and there is rush in the market at the time of harvest Huge amount is
required to farmers to meet fertilizers and pesticides expenses and to buyer for the
purchase of stock to get it stored and for its processing So the finance is required to
be arranged either by the owned fund or by taking loan Though the rate of interest
adds in the price of the commodity and the persons who is making this expenditure
realizes it as the reward of the function performed by him The researcher has
undertaken the study of finance facilities at the APMC yard other sources of credit
other than banking the factors affects the requirements of finance by agricultural
marketing firm as well as farmers and the interest paid on the credit the results of the
farmers opinion was collected and shown in the Table 334 335 336 and 337
75
Table-334
Satisfaction of Banking Facilities at APMC
Sl No Level of Satisfaction Availability of Banking Facilities
Total Available Not Available
1 Satisfied - 15 (602)
15 (600)
2 Unsatisfied 01 (10000)
234 (9398)
235 (9400)
Total 01 (040)
249 (9960)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total The Table 334 depicts the farmerrsquos responses towards the availability of
banking facilities in the APMC yard and their satisfaction towards such services in the
market yard In all the APMCs of Gulbarga division which covers five districts only
6 of the respondents were satisfied and rest of 940 percent of farmers respondents
were unsatisfied for the non-availability of banking facilities in the yard
Table-335
Other Sources of Credit Facilities
Sl No Particulars Districts Total Gulbarga Bidar Koppal Raichur Bellary 1 Whole seller 09
(1800) 08
(1702) 08
(1632) 10
(1923) 10
(1923) 45
(1800) 2 Retail seller 05
(1000) 04
(851) 05
(1020) 05
(961) 04
(769) 23
(920) 3 Commission agents 32
(6400) 31
(6595) 32
(6531) 34
(6538) 33
(6346) 162
(6480) 4 Broker 03
(600) 03
(638) 03
(612) 03
(576) 03
(576) 15
(600) 5 Others 01
(200) 01
(212) 01
(204) 00
(000) 02
(385) 05
(200) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total The researcher has also attempted to collect the opinion from the farmers
about the availability of other sources of credit facilities to the buyer of agriculture
produce and to farmers The other sources of credit to farmers other than bank
includes wholesaler retailer commission agents and brokers Majority of farmer
76
respondents ie 6480 percent of sample size said that commission agents are most
easy source of credit followed by whole seller ie 18 percent and retailer seller ie
920 and brokers only 6 percent
Ranking the Factors of Finance Requirements
As the financial requirements in the agricultural marketing can play a big role
as stimulation of agricultural production and to promote the interest of agricultural
community There are two types of finance requirements one fixed capital which is
required for the building furniture office instruments etc to carry on the business of
agricultural market Second requirement variable capital this is required to purchase
of stocks to make the payment of transportation labourers bills and refreshments
etc The researcher during his field study has attempted to point out and tried to rank
the main factors for finance requirements The data so collected is shown in the Table
336
Table-336
Ranking the factors of finance requirements
Sl No
Finance Requirements
Ranking Finance Requirements Total
First Second Third Fourth Fifth
1 Nature of crop 123 (4920)
50 (2000)
35 (1400)
23 (920)
19 (760)
250 (100)
2 Terms of payments 84 (3360)
16 (640)
31 (1240)
105 (4200)
14 (560)
250 (100)
3 Economic conditions 09 (360)
132 (5280)
63 (2520)
25 (1000)
21 (840)
250 (100)
4 Fluctuations of prices 15 (600)
26 (1040)
104 (4160)
47 (1880)
58 (2320)
250 (100)
5 Volume of crop 19 (760)
26 (1040)
17 (680)
50 (2000)
138 (5520)
250 (100)
Total 250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
77
The above Table 336 shows that the ranking of finance requirements by the
farmer respondents Out of 250 sample respondents 123 farmers respondents ranked
first the nature of crop which determines the quantum of finance requirements
followed by 5280 percent towards economic conditions as ranked second and
fluctuation of prices ie 41 percent as third and terms of payment as fourth position
followed by volume of crop as fifth
Interest Paid on Bank Credit
Table-337
Interest Paid on Bank Credit
Sl No Particulars Interest Paid on Bank Credit
Total Very low Very high Average
1 Gulbarga 30 (6000)
12 (2400)
08 (1600)
50 (2000)
2 Bidar 27 (5745)
11 (2340)
07 (1915)
47 (1800)
3 Koppal 29 (5918)
12 (2449)
07 (1428)
49 (1920)
4 Raichur 32 (6154)
12 (2307)
08 (1538)
52 (2080)
5 Bellary 32 (6154)
13 (2500)
10 (1923)
52 (2080)
Total 150 (6000)
60 (2400)
40 (1600)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Services of Commission Agents
Commission agents are the main marketing functionaries operating in the
APMC yard among the other market participants They provide the necessary link in
the marketing of agricultural produce to the farmers They supply the necessary data
and useful assistance in the marketing of agricultural produce of the farmers They
help farmers in availing the services like assembling storing grading and finance etc
Hence the farmers are provided with channel of distribution by the APMC by
78
licensing these intermediaries and regulating their services The farmer respondents
were approached for obtaining their views about the quality of services covering
defects with commission agents commission paid to commission agents and their
satisfaction with commission agents The following Tables ie 338 339 and 340
gives the results of the survey data
During the field work by the researcher investigated to identify the defects
with commission agents from the farmers The data so collected are compiled and
shown in the Table 338 The major defect with the commission agent was they are
more favourable to the buyer which constitutes 68 percent of sample size 20 percent
of farmers respondents were pointed out the misguide by the commission agent to
farmers at the time of sale is the second major defects followed by high commission 8
percent lack of knowledge 320 and other defects constitutes 080 percent More than
70 percent of farmer respondents are taken the help of commission agents in selling
their agricultural produce out of that 5960 percent of farmers only satisfied with
services given by commission agents The 74 farmer respondents which constitutes
2960 percent of total sample group neither obtaining any form assistance in
marketing their produce and nor satisfied with services given by them
Table-338
Satisfaction towards Commission Agents
Sl No Level of Satisfaction Service from Commission Agents
Total Yes No
1 Satisfied 104 (5910)
45 (6081)
149 (5960)
2 Unsatisfied 72 (4090)
29 (3919)
101 (4040)
Total 176 (7040)
74 (2960)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
79
Table-339
Defects with Commission Agents
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Favoruable
to buyer 34
(6800) 32
(6808) 33
(6735) 35
(6730) 36
(6923) 170
(6800) 2 High
commission 04
(800) 04
(851) 04
(816) 05
(962) 03
(576) 20
(800) 3 Misguide 10
(1000) 09
(1915) 10
(2041) 10
(1923) 11
(2115) 50
(2000) 4 Lack of
knowledge 02
(400) 02
(425) 02
(408) 02
(385) 00
(000) 08
(320) 5 Others 00
(000) 00
(000) 00
(000) 01
(192) 01
(192) 02
(080) Total 50
(200) 47
(180) 49
(196) 52
(208) 52
(208) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
Table-340
Commission Paid to Agents
Sl No Particulars Commission Paid to Agents
Total Very Low Very High Average
1 Gulbarga 06 (1200)
18 (3600)
26 (5200)
50 (2000)
2 Bidar 08 (1702)
17 (3617)
22 (4680)
47 (1800)
3 Koppal 06 (1224)
17 (3469)
25 (5102)
49 (1920)
4 Raichur 06 (1153)
19 (3654)
27 (5192)
52 (2080)
5 Bellary 04 (769)
19 (3654)
30 (5769)
52 (2080)
Total 30 (1200)
90 (3600)
130 (5200)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
The responses of the farmers regarding the charges of the commission by the
commission agents clearly indicates that the commission agents charges excess
80
amount well above prescribed rate this can be found from the dissatisfaction of
farmers ie 36 percent of sample size Changing more than the prescribed by the act
by the commission agent is one of the marketing malpractices prevalent in the APMC
In general strict vigilance over such marketing malpractice is needed to safeguard the
interest of the farmers It is unfortunate to learn that a very small number of ie 12
percent of the sample group farmers have complained against the high commission
charged by the commission agents At the same time 52 percent ie more than one
half of the total sample size positively favoured towards the commission charges by
the commission agents saying that commission paid is average neither to high or too
low
Table-341
Cost of Cooli to Hamals
Sl No Particulars
Cooli to Hamals Total
Very High Very Low Average 1 Gulbarga 07
(200) 09
(1800) 40
(8000) 50
(2000) 2 Bidar 02
(425) 08
(1702) 37
(7872) 47
(1800) 3 Koppal 02
(408) 08
(1633) 39
(7959) 49
(1920) 4 Raichur 02
(385) 09
(1730) 41
(7885) 52
(2080) 5 Bellary 01
(192) 09
(1730) 42
(8076) 52
(2080) Total 08
(320) 43
(1720) 199
(7960) 250
(10000) Source Field survey Note Figures in bracket indicates percentage to total Table 341 depicts the cost of cooli paid to hamal in the market yard Hamals
are working in the APMC for loading and unloading of agriculture produce Farmer
respondents were satisfied with the cost of cooli to hamal it constitute 7960 percent
of total sample size only 320 percent of total told that hamals are charged high cooli
and 1720 percent of them totally satisfied with the charges paid to hamals Table 341
gives the level of satisfaction towards the services given by hamals Large number of
farmers are partly satisfied which constitute 6080 percent 376 percent fully satisfied
81
and 240 percent not at satisfied It is suggestible to the APMC to take measures to
control the hamals and their services to farmers
Level of Satisfaction with Hamals Services
Table-342
Level of Satisfaction with Hamals Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (3800)
30 (6000)
01 (200)
50 (2000)
2 Bidar 17 (3617)
29 (6170)
01 (213)
47 (1800)
3 Koppal 18 (3673)
28 (5714)
03 (612)
49 (1920)
4 Raichur 19 (3654)
32 (6153)
01 (192)
52 (2080)
5 Bellary 21 (4038)
33 (5962)
00 (000)
52 (2080)
Total 94 (376)
150 (6080)
06 (240)
250 (10000)
Source Field survey Note Figures in bracket indicates percentage to total
Cooperation from APMC Officials
Along with the services from different market functionaries to farmers
cooperation from the APMC officials is also very important to farmers to boost their
psychological factors to bring their agricultural produce to APMC yard for sale A
good cooperation definitely creates belongingness in the minds of farmers The data
was collected through questionnaire about the level of satisfaction with the
cooperation from APMC officials and defects with them The information gathered is
shown in Table 343 and 344
82
Table-343
Level of Satisfaction with APMC Officials Services
Sl No Particulars Level of Satisfaction
Total Fully Satisfied Partly Satisfied Not Satisfied
1 Gulbarga 19 (2021)
08 (2105)
23 (1949)
50 (2000)
2 Bidar 17 (1809)
06 (1579)
24 (2033)
47 (1880)
3 Koppal 16 (2021)
05 (1315)
28 (2373)
49 (1960)
4 Raichur 20 (2127)
10 (2632)
22 (1864)
52 (2080)
5 Bellary 22 (2340)
09 (2368)
21 (1780)
52 (2080)
Total 94 (3760)
38 (1520)
118 (4720)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Table-344
Defects with APMC Officials
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary 1 Non-
cooperative 36
(200) 40
(2222) 40
(2222) 45
(250) 19
(1055) 180
(7200) 2 Favourable to
buyer 42
(1953) 43
(2000) 32
(1488) 41
(1907) 57
(2651) 215
(8600) 3 Laziness 18
(200) 17
(1888) 15
(1667) 20
(2222) 20
(2222) 90
(3600) 4 Expect money 08
(200) 06
(150) 05
(1250) 09
(2250) 12
(300) 40
(1600) 5 Improper
market data 14
(200) 13
(1857) 12
(1714) 14
(200) 17
(2429) 70
(2800) 6 Others - - 03
(300) 04
(400) 03
(300) 10
(400) Total 50
(2000) 47
(1880) 49
(1960) 52
(2080) 52
(2080) 250
(100) Source Field survey Note Figures in bracket indicates percentage to total
83
Malpractice Experience at APMC Yard
The major malpractices faced by the farmer respondents in the selected
APMCs while selling their agricultural produce in the study area is presented in the
Table 345
Table-345
Farmers Malpractice Experience at APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Inadequate grading
38 40 39 32 46 195
2 Inadequate packing
32 28 17 31 46 137
3 Unfavourable weightment
44 43 41 47 46 221
4 Excess samples 18 15 20 14 15 82
5 Inadequate supervision
21 23 28 22 25 119
6 Excess market charges
36 32 38 28 36 170
7 More favourable to buyer
41 42 43 48 49 223
8 Others 05 14 13 09 17 56
Total 50 (200)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
The highest percentage of farmer respondents (221) are of the opinion that
unfavourable weighment in the sale is the major malpractice experienced by them
The second highest percentage of farmer respondents who are of the opinion that in
adequate grading by the buyer while selling their produce The third major
malpractice being taking excess market charges by commission agents as arbitrary
deduction in the sale amount of produce The next major malpractice (137) opined by
farmer respondents is regarding inadequate packaging to sale produce The other most
84
dominating and prevailing malpractice was found by the researcher is more
favourable to the buyer and improper weighment of their produce (223) in the market
yard For of respondents specified other malpractices as high wastages and non
payment of amount etc Inspite of all these malpractices affecting of the farmers it is
quite essential for all the APMCs in the study area should take some connective
measures to eliminate such malpractice Since the main purpose of the APMCs is to
regulate all marketing activities In the field study the steps taken by the APMC to
eliminate malpractice as expressed their views by the farmer respondents were
recorded very few percent of farmer respondents are of the opinion that APMC is
excising supervision over the malpractice regarding to selling and pricing the
commodity They also satisfied with the intervention of APMC officials to eliminate
malpractices in weighment grading activities but the farmer respondents were not at
satisfied with the APMC for not taking any steps to eliminate malpractices in payment
of sale price by the buyer to farmers
Disputes in APMC
So many disputes can arise among the farmers traders and middlemen over
the quality the grade the deductions and payment settlement etc The market
committees settles such disputes so the farmers as well as middlemen may not waste
their time and marketing in the court
During the field study the researcher has investigated to find out the opinion
of the farmers for main causes of disputes in the APMC yard The compiled
information is presented in the following Table 346
85
Table-346
Causes for Disputes in APMC
Sl No Particulars
Districts Total
Gulbarga Bidar Koppal Raichur Bellary
1 Price of produce
23 (2054)
20 (1786)
21 (1875)
24 (2143)
24 (2143)
112 (4480)
2 Quality of produce
10 (1786)
08 (1429)
05 (892)
11 (1964)
22 (3928)
56 (2240)
3 Weightment 30 (1974)
31 (2039)
32 (2105)
28 (1842)
31 (2039
52 (6080)
4 Timing of payment
37 (1989)
38 (2043)
40 (2150)
32 (1720)
39 (2096)
186 (7440)
5 Grading of produce
08 (1509)
10 (1887)
07 (1320)
11 (2075)
17 (3207)
53 (2120)
6 Warehousing 05 (1250)
08 (200)
07 (1750)
06 (1500)
14 (350)
40 (1600)
7 Others 18 (200)
15 (1667)
24 (2667)
25 (2777)
08 (888)
90 (3600)
Total 50 (2000)
47 (180)
49 (1960)
52 (2080)
52 (2080)
250 (100)
Source Field survey Note Figures in bracket indicates percentage to total
Majority of respondents have disputes with commission agents as well as the
traders and few of them have disputes with hamals From the Table 346 it could be
seen that one of the major reasons for dispute being untimely payment (Delay in
payment) to farmer ie seller of agricultural produce Nearly more than half of the
respondents (7440) have opined that they are not being paid as per the provisions of
Act ie immediately after the sale of produce The next major causes of dispute being
weighment of produce Marketing three fifth of the respondents are not happy with
the weighment system prevailing in the market The third major causes of disputes is
being price of the produce About one third of the respondents (4480) have opined as
determination of the price of produce is also one of the major factor for the disputes
The other reasons of the disputes in the APMC yard in the Gulbarga division was
86
found are regarding quality of produce (2240) warehousing (1600) as determined by
farmers Very few of respondents feel that there is no reasons for disputes in the
APMC yards
As far as settlement of disputes are concerned farmer respondents are
preferred for settlement of disputes with traders at the level of secretary of the APMC
A part from that they also some time preferred to solve disputes through the dispute
committee where disputes are settled by arbitration Only 5 percent of the farmer
respondents from the sample size are of the opinion that disputes are settled by the
court of law In Gulbarga division of APMC maximum disputes were settled at
secretary level it calls for efficient secretaries in APMCs
Farmers respondents were also asked about the level of satisfaction in
settlement of disputes Nearly more than 40 percent of respondents are satisfied with
settlement of disputes However 30 percent of respondents are not fully satisfied with
settlement of disputes rest of the sample group were not given any response in this
regard
Quality of Services in APMC Yard
The sale of the agricultural produces by the farmers in the APMC yard
depends on the various services and their quality provided by the APMCs to the
farmers It is the true that if the services provided by APMCs to farmers are very
good large number of farmers bring their produce to the APMC market for sale
instead of open markets This definitely attracts more number of traders and market
functionaries to the market This results an impetus in getting not only good price for
their produce but also a competitive cost to the traders The farmer respondents were
asked to assess the quality of market services provided by the APMCs the responses
of respondents who expressed their level of satisfaction and dissatisfaction to different
facilities provided is presented in the following table
87
Table-347
Quality of Services at APMC
Quality of Services Name of APMC
Total Gulbarga Bidar Koppal Raichur Bellary
Very good 04 (200)
04 (200)
04 (200)
03 (150)
05 (250)
20 (80)
Good 41 (2930)
38 (1881)
40 (1980)
42 (2079)
41 (2029)
202 (808)
Bad 02 (250)
01 (1250)
01 (1250)
02 (250)
02 (250)
08 (320)
Very bad 01 (200)
01 (200)
02 (200)
01 (200)
-
05 (20)
Either bad good 02 (1333)
03 (200)
02 (1333)
04 (2667)
04 (2667)
15 (600)
Total 50 (200)
47 (188)
49 (196)
52 (208)
52 (208)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total It could be observed from the above Table 347 that 8080 percent of farmer
respondents are of the opinion that the quantity of services provided by the APMC is
good 320 percent of total sample size of farmer respondents are if the opinion that it
is bad and 80 percent of the respondents are of the opinion that it is very good It is
to say satisfy that 8880 percent of farmer respondents are of the opinion that the
service provided by APMC is good and above average Hardly 520 percent of the
respondents expressed that the service provided are bad or very bad and 60 percent of
them neither opinioned bad nor good ie they were neutral
88
Table-348
Customary Deduction
Name of the APMCs As per Bye Laws More than Bye Laws Total
Gulbarga 05 (100)
45 (900)
50 (200)
Bidar 04 (851)
43 (9149)
47 (188)
Koppal 05 (1020)
44 (8980)
49 (1960)
Raichur 05 (961)
47 (9039)
52 (2080)
Bellary 07 (1346)
45 (8654)
52 (2080)
Total 26 (1040)
224 (8960)
250 (100)
Source Field study Note Figures in bracket indicates percentage to total
The study was conducted to know the farmers responses towards the
customary deductions from the sale of agricultural produce Sample groups were
given option whether customary deductions were as per bye laws or more than bye
laws Large number of farmer ie more than 89 of sample size were strongly
opinioned that customary deductions were not according
89
CHAPTER-IV PERFORMANCE EVALUATION OF APMCs
All the regulated markets working in Karnataka are distinct organization
created under the special clause with the objective of bringing the socio-economic
changes not only in the agricultural marketing sector but also economy as a whole
The existence of regulated markets creates an environment that is more favourable to
the existence of competitive conditions and to bring about the harmonious relations
between the farmers and market functionaries These organizations have the special
features as compared with the other organizations so the service of funds of regulated
markets and uses of the regulated market would be different keeping this the
following para attempted to analyze their financial performance in terms of their
profit position and growth in profit income position expenditure position and other
relevant financial aspects
A) Sources of Income of Regulated Markets
As far as regulated market are concerned they are non-profit or non-trading
organizations established with the objective of providing marketing services facilities
and other amenities for the producer of agricultural products who is in need of these
services for the facilitation of the sale of their produce To ensure smooth and
efficient services to farmer seller APMCs are required to own their establishments
and staff such as commission agent trader hamal and others who are carrying out
various markets functions ie grading processing weighment etc Hence APMCs
need finance to meet their administrative and management expenses of a recurring
and non-recurring nature of expenses The basic infrastructures are needed in the
provision of amenities and other facilities requiring capital investment for creating
these facilities in the market yard Establishment of infrastructure facilities not only
enough but also they need to be maintained the SC maintenance expenses is of
recurring in nature APMCs also need to have the permanent staff to do all the
functions in the market yard involves the fixed expenditure in the form of salaries
wages etc This necessitates the APMCs to have the permanent and regular sources of
income to meet all these regular expenses of fixed in nature and some portion of
recurring expenditure
90
APMCs are also required to meet the recurring expenditure such as
maintenance of road expenditure building godowns market yard vehicles and
machinery After the initial investment in these facilities from the borrowed capital
APMCs need to make payment of interest on loans tax charges payment of salaries
printing and stationery etc are to be paid periodically The different sources of
incomes through which the APMCs are earning revenue are shown in the following
parts along with the various expenditures by the APMC in the market yard
I) Market Fees
The APMCs Act and other laws relating to the agricultural marketing has
authorized all the regulated markets to levy and collect the market fees on the
agricultural produce bought for sales in the market yard The collection of the market
fees is the major source of income to the market committee and also the major source
of finance which determines to a very great extent the pace of development of market
yards both in terms of facilities and infrastructure
In traditional agricultural marketing market fees were collected on the basis of
the quantity bought for sale but these days the Acts and rules have been amended
more suitably giving maximum power to market committee to collect market fees on
the advalorem basis The chief items of the marketing charges are the market fee that
should be paid to the market committee the weighment fee commission brokerage
hamali charges and grading charges etc
In Karnataka in the beginning the market fees imposed on the buyers at the
rate not exceeding 30 paise per Rs100- of produce bought The APMC Act was
amended in 1973 August by an ordinance and the market fee to be levied was raised
to one rupees and the ordinance was however replaced by an act The rate of market
fees on every arrivals of cattle is Rs5- for each animal and rupee one for every sheep
and goats
The act also given some provisions for cooperative society doing business
within the market yard market fees shall be imposed and collected at the rate of 80
paisa per Rs100- of produce bought whereas in case of any other traders it is at the
91
rate of one percent on their total purchases ie one rupees per 1000 rupees This may
be considered as the cause for slow growth of agricultural marketing in Karnataka in
general and Gulbarga division in particular
II) License Fees
The various market functionaries who are operating in the regulated markets
of the state are the commission agents trader broker store keeper grader stockiest
importer exporter and any other functionary are imposed licence fee by the market
committee The license fee is the second main source of income to regulated market
This fee is collected in lum-sum as specified in the APMC act annually from each
applicant The total sum of income from license fees depends on the number of
market functionaries and the rate of license fee for various categories of market
functionaries
APMCs are authorized by KAPM (I) Act 1966 to impose and collect the
license fees from each category of market functionaries The maximum license fee
that could be levied under the act by the market committee on different types of
functionaries are Rs200 from traders and commission agents Rs100- each from
broker processor exporter importer ginner and crusher Rs25- from retail trader
and a nominal amount of Rupees 5 from hamal or cart man
III) Penalty
Penalties for evasion of payment of fee are imposed by the market
committees Section 65 (A) or KAPM Act 1966 empowers the regulated market
committee to punish with fine of not less than 12 percent But this penalty should not
exceed 30 percent on the amount of market fee If the penalty is not paid within the
specified time under bye laws made under section 65 of the act in it desecration also
recover similarly and pay over to the market committee or the board such amount
IV) Other Income Sources
APMCs collect market fees license fees and penalty from defaulters the
market committees are also generating the incomes from the following sources
a) Income from own properties
b) Income from deposits
92
c) Sale of books and forms
d) Sale of grass and cow dung
e) Fire fighter rent
f) Transfer fees and registration fees
g) Sale of plots etc
1) Income Position of Selected Regulated Markets
The income information of 15 APMCs ie three APMCs from each districts
in Gulbarga division were collected by the researcher from their annual reports and
other financial statements The component of the various income sources and their
respective figures provide a good insight to their financial performance The trends in
the growth of total incomes and individual incomes over a five year study period ie
2009-10 to 2013-14 helps in understanding the performance of all the selected
APMCs
I) Income Position of Gulbarga APMC
The income position of selected APMCs in Gulbarga district over the five
years study period are shown in the Table 41 below
Table 41 reveals a steady growth in income to the Gulbarga APMC in all the
years of study Conspicuously the total income from all sources to APMC was
Rs21976lakhs in 2009-10 while it was increased to 87054 lakhs in 2013-14 with a
annual aggregate growth of 5922 percent over the previous years When we look at
the figures of market fees holds the lions share in contributing income which range
between 8605percent to 9294 percent The same fact was also found in the APMC
Shorapur and APMC Shahapur In APMC Shorapur the percentage of market fees in
total income was in between 8420 percent to 9745 percent In case of Shahapur
APMC it ranges between lowest 6422 percent to highest of 6610 percent The other
major sources from where the APMC generated income were license fees levy and
licence fee penalty and other incomes generated was in total percentage fall between
906 percentage to 1995 percent in Gulbarga APMC In Shahapur and Shorapur
APMC penalty income was negligible it was Rs 031 lakhs to Rs 891 lakhs in
Shorapur APMC and Rs 126 lakhs to Rs 563 lakhs in Shahapur APMC during the
period under study
93
Table-41
Statement of Income of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 25106
(8605) 27111 (8763)
39233 (9155)
68713 (9294)
79170 (9094)
2 License Fees 321 (110)
487 (157)
561 (130)
664 (089)
733 (084)
3 Levy and License Fee 2069 (709)
1822 (58)
1981 (462)
2055 (277)
2382 (273)
4 Penalty 1180 (404)
642 (207)
519 (121)
625 (084)
1177 (135)
5 Interest on Deposits and other Income
500 (172)
574 (293)
558 (132)
1575 (256)
3592 (414)
Total 21976 (100)
30936 (100)
42852 (100)
73932 (100)
87054 (100)
Sl No APMC Shorapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 6012
(9039) 5647
(9281) 9607
(9745) 11365 (9079)
18674 (8420)
2 License Fees 104 (156)
106 (174)
078 (079)
117 (093)
117 (052)
3 Levy and License Fee 128 (192)
120 (197)
054 (054)
338 (270)
486 (219)
4 Penalty 200 (300)
101 (166)
031 (031)
206 (164)
891 (401)
5 Interest on Deposits and other Income
207 (313)
110 (182)
088 (011)
491 (394)
2008 (908)
Total 6651 (100)
6084 (100)
9858 (100)
12517 (100)
22176 (100)
Sl No APMC Shahapur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1436
(8422) 1563
(7854) 1722
(7163) 3888
(7793) 5812
(6610) 2 License Fees 080
(469) 114
(572) 219
(910) 250
(501) 679
(772) 3 Levy and License Fee 034
(199) 042
(211) 0158 (657)
269 (539)
1071 (1218)
4 Penalty 126 (739)
183 (919)
196 (815)
204 (408)
563 (640)
5 Interest on Deposits and other Income
029 (171)
088 (444)
109 (455)
378 (759)
667 (76)
Total 1705 (100)
1990 (100)
2404 (100)
4989 (100)
8792 (100)
Source Annual reports of APMC Gulbarga 2009-10 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
94
It can be concluded from the above three APMCs in Gulbarga district that
Gulbarga APMC leading first in generating income Shorapur APMC is in second
position followed by APMC Shahapur
II) Income Position of Bidar APMC
Three APMCs from the Bidar district were selected for the comparative study
The income level of these three APMCs for the five years research period is presented
in the Table 42
The income generated by the APMC Bidar was lower in the beginning years
of research period ie it was Rs 18275lakhs in 2009-10 Rs16443 lakhs in 2010-11
and Rs17575 lakhs in 2011-12 During end years of research period it increased to
Rs31805 lakhs in 2012-13 and Rs 30420 lakhs in 2013-14 A critical look of the
figures in all the years of selected APMCs in Bidar district indicates that market fees
was the major component of total income of APMC which comprises an approximate
of 7910 percent in lowest side and 9554 percent in highest side Lowest market
fees percentage was recorded in APMC Aurad during 2012-13 and the highest
percentage was registered in 2013-14 in AMPC Bidar
95
Table-42
Statement of Income of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 16744
(9162) 15043 (9148)
15593 (8870)
29256 (9198)
29065 (9554)
2 License Fees 486 (265)
363 (220)
436 (248)
688 (216)
577 (1089)
3 Levy and License Fee 320 (175)
239 (145)
334 (190)
477 (149)
338 (111)
4 Penalty 600 (328)
466 (283)
515 (293)
719 (226)
202 (066)
5 Interest on Deposits and other Income
125 (070)
332 (204)
697 (397)
665 (211)
238 (08)
Total 18275 (100)
16443 (100)
17575 (100)
31805 (100)
30420 (100)
Sl No APMC Bhalki 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1424
(8431) 1232
(8999) 2423
(8846) 3596
(8304) 5871
(8544) 2 License Fees 096
(568) 081
(591) 163
(595) 293
(676) 306
(445) 3 Levy and License Fee 123
(728) 021
(153) 043
(156) 189
(436) 214
(311) 4 Penalty 022
(130) 017
(124) 034
(124) 138
(318) 222
(323) 5 Interest on Deposits and other
Income 024
(143) 018
(133) 076
(279) 114
(266) 258
(377)
Total 1689 (100)
1369 (100)
2739 (100)
4330 (100)
6871 (100)
Sl No APMC Aurad 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 903
(8014) 886
(8478) 887
(8431) 1333
(7910) 1617
(7922) 2 License Fees 093
(825) 081
(775) 083
(788) 123
(729) 132
(646) 3 Levy and License Fee 055
(488) 054
(516) 052
(494) 118
(700) 181
(886) 4 Penalty 006
(053) 004
(038) 012
(114) 051
(302) 050
(241) 5 Interest on Deposits and other
Income 069
(615) 020
(193) 018
(173) 060
(359) 061
(302)
Total 1126 (100)
1045 (100)
1052 (100)
1685 (100)
2041 (100)
Sources Annual reports of APMCs Bidar for 2003- 04 to 2007 ndash 08 Note Figures in bracket indicates percentage to total
96
The other major sources contributing to the income of the APMCs in Bidar
district were license fee which was 646 percent to 625 percent in Aurad APMC
445 percent to 676 percent in APMC Bhalki and 216 percent to 1089 percent in
Bidar district APMCs The total income of Bhalki APMC was not constantly
increased during the study period It was fell to Rs 1369 lakhs in 2010-11 but it
increased during last three years of research period reached to Rs 6871 lakhs in
2013-14 As far as APMC Aurad is concerned it was inceased only in 2012-13 and
2013-14 As far as APMC Aurad is concerned it was increased only in 2012-13 and
2013-14 It was fall in 2010-11 and 2011-12 ie Rs 1045 lakhs and Rs 1052 lakhs
respectively It can be seen in table 42
III) Income Position of Koppal APMC
The statement of income of selected APMCs in Koppal district for the five
years ie 2009-10 to 2013-14 are given in table 43 The income of Koppal APMC
Gangavati APMC and Kustagi APMC were collected and analyzed in the following
paragraphs
The income generation in each of the five years by the APMCs selected as
sample in Koppal district was in APMC Koppal it was between Rs 3709 lakhs in
2009-10 to Rs 11032 lakhs in 2013-14 In APMC Gangavati a recorded
performance was found in earning incomes ie Rs 51692 lakhs in 2009-10 increased
rapidly to Rs91123 lakhs in 2013-14 APMC Kustagi was found to be least
performance in generation of the income The highest income was colleted by it was
Rs 3346 lakhs in 2013-14 and lowest was found in 2009-10 ie Rs 1341 The
annual aggregate growth in income generation by Koppal APMC was 3948 percent
per year The overall growth in APMC Gangavati income was 7628 percent over the
beginning year of research period The overall growth of percentage in the income of
APMC Kustagi during the five years study period was 14952 percent
97
Table-43
Statement of Income of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3269
(8813) 4072
(6961) 5675
(9119) 5682
(8775) 10021 (9083)
2 License Fees 090 (242)
110 (188)
101 (162)
097 (149)
106 (096)
3 Levy and License Fee 062 (167)
193 (329)
133 (213)
187 (288)
207 (187)
4 Penalty 104 (280)
211 (360)
146 (234)
178 (271)
255 (231)
5 Interest on Deposits and other Income
184 (498)
1263 (2162)
168 (272)
331 (517)
443 (403)
Total 3709 (100)
5849 (100)
6223 (100)
6475 (100)
11032 (100)
Sl No APMC Gangavati 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 49044
(9487) 67016 (9724)
75834 (9692)
74674 (9363)
84042 (9223)
2 License Fees 236 (045)
287 (042)
311 (039)
303 (038)
569 (062)
3 Levy and License Fee 703 (135)
515 (074)
807 (103)
716 (089)
1038 (114)
4 Penalty 189 (036)
212 (030)
267 (034)
258 (032)
317 (034)
5 Interest on Deposits and other Income
1520 (297)
887 (130)
1020 (142)
3804 (478)
5157 (567)
Total 51692 (100)
68917 (100)
78239 (100)
79755 (100)
91123 (100)
Sl No APMC Kustagi 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 1214
(9052) 1234
(9167) 1384
(8216) 2079
(8266) 2516
(7519) 2 License Fees 024
(178) 029
(215) 031
(184) 036
(143) 041
(122) 3 Levy and License Fee 014
(104) 016
(118) 026
(154) 055
(218) 063
(188) 4 Penalty 001
(007) 001
(007) 003
(017) 007
(027) 018
(054) 5 Interest on Deposits and other
Income 088
(659) 066
(493) 240
(1429) 338
(1346) 708
(2117)
Total 1341 (100)
1346 (100)
1684 (100)
2515 (100)
3346 (100)
Sources Annual reports of APMCs Koppal for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
98
The glance at the each income figures with respect to three APMC in Koppal
district reveals that market fees again dominant ie 6961 percent to 9724 percent to
total income of the APMC Other important heads from which the income was
derived were license fee 096 to 242 in Koppal APMC 038 to 062 in
APMC Gangavati and 122 to 215 in APMC Kustagi during the period under
consideration ie 2009-10 to 2013-14 The penalty fees collected by the APMC
Kustagi and APMC Gangavati were almost below one percent to total income and this
was above 2 percent in APMC Koppal A sizeable income ie 498 percent to 2117
percent has also been contributed under the head interest on deposits and other
income The trend in this income was more or less similar during all the years of
research period
IV) Income Position of Raichur APMC
The income position and growth in income position of selected APMCs in
Raichur district was presented in the Table 44 The income was shown for the study
period ie 2009-10 to 2013-14 Riachur is considered to be a commercial street the
volume of business is high as compared to the Lingasugur Sindnoor APMC has
acquired a good position in the Raichur district as compared to other APMC in the
district
Table 44 gives the various incomes acquired by the selected APMC in the
Raichur district Raichur as a commercial centre there would be large number of
market functionaries and large volume of transactions Hence the total income of the
market was obviously quite high (around Rs120202 lakhs annually) During 2009-10
the total income of APMC Raichur was Rs 48932 lakhs APMC Sindnoor was Rs
20629 lakhs and APMC Lingasugur was just Rs 2907 lakhs It was shown an
increasing trend in all the three APMC selected in Raichur district during all the five
years of research period Income was found in the year 2013-14 in the sample APMC
from Raichur district Income from the other sources ie penalty interest on deposits
sale of shops godowns and sale of books and forms were much higher as compared to
the corresponding incomes in the other years of study Such an increase in the total
income was noticed in the Table 44
99
Table-44
Statement of Income of Selected APMCs in Raichur District
(Rs In lakhs)
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 45972
(9395) 55687 (9542)
68293 (9491)
82847 (8275)
106917 (8894)
2 License Fees 314 (064)
326 (056)
335 (046)
336 (033)
347 (028)
3 Levy and License Fee 1218 (248)
1463 (250)
1525 (211)
1540 (153)
1617 (134)
4 Penalty 218 (044)
250 (040)
269 (037)
289 (028)
313 (026)
5 Interest on Deposits and other Income
1210 (249)
630 (110)
1528 (215)
15105 (1511)
11008 (918)
Total 48932 (100)
58356 (100)
71950 (100)
100117 (100)
120202 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 18106
(8776) 21418 (9410)
28650 (9523)
33937 (7914)
45905 (9281)
2 License Fees 212 (102)
209 (091)
238 (079)
226 (052)
258 (052)
3 Levy and License Fee 1029 (498)
658 (1289)
613 (203)
1569 (365)
1292 (261)
4 Penalty 819 (396)
309 (135)
386 (128)
2080 (485)
1108 (224)
5 Interest on Deposits and other Income
464 (228)
166 (075)
197 (067)
5069 (1184)
892 (182)
Total 20629 (100)
22760 (100)
30084 (100)
42881 (100)
49456 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 2016
(6934) 2361
(6367) 3457
(5687) 3702
(5632) 4221
(5582) 2 License Fees 084
(288) 161
(434) 219
(360) 379
(576) 397
(521) 3 Levy and License Fee 493
(1695) 552
(1488) 817
(1344) 871
(1325) 1017
(1344) 4 Penalty 032
(110) 064
(172) 186
(306) 213
(324) 286
(378) 5 Interest on Deposits and
other Income 282
(973) 570
(1539) 1399
(2303) 1408
(2143) 1641
(2172)
Total 2907 (100)
3708 (100)
6078 (100)
6573 (100)
7562 (100)
Sources Annual reports of APMCs Raichur for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
100
In order to see the composition of the total revenue of Raichur Sindnoor and
Lingasugur APMCs the income statement of 2009-10 to 2013-14 was considered A
detailed analysis at the figures in the table 44 indicates that a market fee was the
major contributor to the total income which contributed to the tune of 5582 percent
to 9542 percent The other major sources of revenue to the APMC are interest on
deposits (182 to 2172) Penalty income was contributed average in APMC
Sindnoor moderate in APMC Raichur and minor contribution in APMC Lingasugur
V) Income Position of Bellary APMC
In Bellary district development activities undertaken by the department of
agriculture are about increasing yield of kharif season and other seasons under
irrigation this has naturally increased the market turnover in the Bellary district
APMC The details of the income collected by the sample APMCs in Bellary district
is shown in the Table 45
Table 45 gives the details of an account of income of the APMCs selected
from the Bellary district for the analysis purpose A birdsrsquo eye view of the total
income figures during financial years indicate that the annual average income of the
APMC of Bellary was around Rs 33660 lakhs except during the first three years of
the study period The market fees collected during the study years was also ranged in
between the 8165 in 2009-10 to 8942 in 2013-14 Levy and license fees were
contributed to the extent of 306 to 806 to total income and penalty amount was
just only to 075 to 462 to total incomes
101
Table-45
Statement of Income of Selected APMCs in Bellary District
(Rs In lakhs)
Sl No APMC Bellary 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 13400
(8165) 19398 (8680)
24037 (8514)
35774 (8865)
54510 (8942)
2 License Fees 316 (192)
343 (153)
0392 (139)
399 (098)
346 (056)
3 Levy and License Fee 1323 (806)
1529 (684)
2001 (708)
1912 (473)
1870 (306)
4 Penalty 320 (194)
370 (165)
462 (163)
451 (111)
458 (075)
5 Interest on Deposits and other Income
1052 (643)
706 (318)
1338 (476)
1816 (453)
3775 (621)
Total 16411 (100)
22346 (100)
28230 (100)
40352 (100)
60959 (100)
Sl No APMC Hospet 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 3458
(8051) 4335
(7629) 5075
(7924) 5561
(8158) 6811
(7884) 2 License Fees 089
(207) 086
(151) 097
(151) 108
(158) 132
(152) 3 Levy and License Fee 407
(948) 592
(1041) 636
(993) 663
(972) 892
(1032) 4 Penalty 041
(095) 166
(292) 215
(335) 217
(318) 289
(334) 5 Interest on Deposits and
other Income 300
(699) 503
(887) 381
(597) 267 (39)
515 (598)
Total 4295 (100)
5682 (100)
6404 (100)
6816 (100)
8639 (100)
Sl No APMC Siraguppa 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Market Fees 9054
(9160) 11330 (9131)
25909 (9352)
31838 (9237)
45500 (8285)
2 License Fees 068 (068)
071 (057)
107 (038)
108 (031)
105 (019)
3 Levy and License Fee 363 (367)
341 (274)
491 (177)
492 (142)
535 (097)
4 Penalty 019 (019)
047 (037)
054 (019)
089 (026)
096 (017)
5 Interest on Deposits and other Income
381 (386)
619 (501)
1143 (414)
1939 (564)
8676 (1582)
Total 9885 (100)
12408 (100)
27704 (100)
34468 (100)
54912 (100)
Sources Annual reports of APMCs Bellary for 2009-10 to 2013-14 Note Figures in bracket indicates percentage to total
102
As far as APMC Hospet and APMC Siraguppa are considered the market fees
collected by these APMCs were became major sources of income followed by levy
and license fees and penalty It is noticed from the same table that APMC Siraguppa
has made history in generation of income during 2012-13 and 2013-14 ie it earned
Rs 34468 lakhs and 54912 lakhs incomes respectively Almost the income was
jumped five times to beginning year income ie 9885 lakhs This clearly carries the
message that APMC Siraguppa was not performed consistency in financial
performance APMC Hospet has ensured stability in the performance but in terms of
amount of collection it was positioned third place in selected APMC in Bellary
district
B) Uses of Incomes by APMCs
1) Market Committee Fund
Incomes received by the market committees in the form of market fees
licence fees and other fees or incomes by way of penalty are used as per the Section
90 of KAPM (R) Act of 1966 All expenditure incurred by the committee under or for
the purposes of this Act shall be defrayed out of the market fund and any surplus
remaining at the close of each market year after such expenditure has been met shall
be credited to the permanent fund of the committee within the three months of the
close of the year and it shall be used only towards incurring the expenditure of
permanent nature such as construction of buildings acquisition of lands or such other
purposes as the Director of Agricultural Marketing may specify
After meeting all such expenditure excess shall be invested in state
cooperative Apex bank or other cooperative banks or government savings banks
account The KAPM (R) Act 1961 clearly defined the purposes for which the market
committee fund may be expanded beyond the above mentioned The fund so created
should be allowed to uses for the purpose laid down in this Act ie providing
facilities in the market areas payment of allowances arrangement of amenities such
as grading and standardization collection and dissemination of market information
settlement of disputes payment of interest on borrowed loans etc
103
II) Contribution to Consolidated Fund
All the marketing committees are bound to contribute some amount to
Karnataka State Agriculture Marketing Board The Director of Agricultural Marketing
estimates the approximate expenditure likely to be incurred by the state government
during a particular financial year an account of salary and other allowances and
election of the members of the market committees Taking all these estimated
expenditures under section 91 of the KAPM Act the Director of Agricultural
Marketing shall by order determine the percentage of gross receipts that every
market committee must and should contribute to the state consolidated fund of the
state
III) Contribution to KSAM Board
Agriculture section 92 of the Karnataka produce marketing Act has made a
provision to create ldquoMarketing Development Fundrdquo and it is managing by the KSAM
board Every market committee is required to contribute every month to the board 5
percent of the gross receipts during the previous calendar month
IV) Other Expenditures
A part from the contribution to market committee fund contribution to state
consolidated fund and contribution to KSAM Board market committees are also
necessary to meet the other expenses regularly such as administration expenses which
includes salary to staffs printing and stationary legal fee advertisement rent
electricity bill and maintenance charges Expenditure to provide amenities to market
functionaries and farmers and other miscellaneous
Expenditure Position of Selected APMCs in Gulbarga District
In this part an effort is made to analyze data relating to the total expenditures
incurred and components of expenditures with respective figures to get the depth of
knowledge about the trends in growth of expenditures over a period of 5 years
between 2009-10 to 2013-14
104
Table-46
Trends in Growth of Expenditure of Selected APMCs in Gulbarga District
(Rs In lakhs)
Sl No APMC Gulbarga
Years 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 I Contribution to state
consolidated fund 15732 (7016)
13575 (6562)
18231 (7200)
33150 (7215)
35676 (7225)
II Contribution to KSAM board
1933 (862)
1484 (750)
2216 (875)
4024 (876)
4197 (850)
III Administrative expenses 2708 (1208)
2396 (1211)
3076 (1215)
5514 (1200)
6004 (1216)
IV Expenditure on amenities
1713 (764)
1832 (926)
1327 (524)
2532 (551)
2696 (546)
V Miscellaneous 337 (150)
496 (251)
472 (186)
727 (158)
805 (163)
Total 22423 (100)
19783 (100)
25322 (100)
45947 (100)
49378 (100)
2 APMC Shorapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
1359 (4500)
4146 (4052)
4140 (4050)
3340 (3890)
2439 (5220)
II Contribution to KSAM board
473 (1565)
1751 (1711)
1750 (1712)
1556 (1812)
905 (1936)
III Administrative expenses 665 (2216)
2587 (2528)
2581 (2525)
2128 (2478)
1182 (2530)
IV Expenditure on amenities
440 (1458)
1586 (1550)
1534 (1501)
1285 (1496)
107 (228)
V Miscellaneous 079 (261)
070 (159)
005 (212)
277 (324)
040 (086)
Total 3020 (100)
10234 (100)
10223 (100)
8586 (100)
4673 (100)
3 APMC Shahapur 2009-10
2010-11
2011-12
2012-13
2013-14
I Contribution to state consolidated fund
363 (4801)
703 (6701)
920 (5742)
2480 (6688)
2308 (6454)
II Contribution to KSAM Board
054 (714)
064 (610)
067 (418)
081 (218)
074 (206)
III Administrative expenses 154 (2037)
128 (1220)
252 (1573)
501 (1351)
489 (1367)
IV Expenditure on amenities
065 (860)
072 (686)
143 (892)
263 (709)
258 (721)
V Miscellaneous 120 (1580)
082 (783)
22 (1375)
383 (1034)
447 (1252)
Total 756 (100)
1049 (100)
1602 (100)
3708 (100)
3576 (100)
Source Annual reports of APMC Gulbarga for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
105
As that of the income position the analyses of the pattern of expenditure also
important as the functions of the regulated markets are constrained by the financial
limitations Here the study of expenditure dimension of regulated market was felt
necessary The pattern of the growth in expenditure has shown a steady pace during
2012-13 and 2013-14 in APMC Gulbarga It was very lowest in 2010-11 ie 19783
lakhs The major items of expenditures to which Gulbarga APMC Shorapur APMC
and Shahapur APMC were diverted include contribution to state consolidated fund
expenditure on amenities and contribution to KSAM board During the research
period the share contribution to state consolidated fund was ranged between 6562
to 7223 in Gulbarga APMC this percent of share in total expenditure was in
between 3590 to 5220 in APMC Shorapur and in APMC Shahapur it was
4801 to 6701 At the same time the contribution to KSAM board was almost
below 20 to total expenditure in all three APMCs selected in Gulbarga district
The administration expenses was found to be second major item of
expenditure in sample units of Gulbarga district It was all most stable in Gulbarga
APMC ie 12 and above 2216 to 25305 in Shorapur APMC and 1220 to
2037 in the Shahapur APMC The other expenses such as the security facilities
rent taxes electricity printing and stationary charges etc remained as minor
expenditure
II) Expenditure position of selected APMCs in Bidar District
The expenditure statement relating to the selected APMCs in Bidar district is
shown in the below Table 47 The percentage of individual expenditure to total
expenditure for the period of five years is also presented in the same table
A glance on the statement of trends in growth of expenditure in the selected
APMC in Bidar district reveals that the Bidar APMC had an annual expenditure
around Rs 145 lakhs In case of APMC Bhalki annual average expenditure was
around Rs 2118 lakhs and in APMC Aurad this amount was Rs 1701 lakhs
106
Table-47
Trends in Growth of Expenditure of Selected APMCs in Bidar District
(Rs In lakhs)
Sl No APMC Bidar
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
6600 (7141)
10883 (7016)
8645 (6625)
10623 (6740)
13753 (7267)
II Contribution to KSAM board
1761 (823)
1260 (812)
1370 (1050)
1668 (1058)
1972 (1042)
III Administrative expenses
1382 (1496)
1945 (1254)
1249 (957)
1597 (1013)
2292 (1211)
IV Expenditure on amenities
275 (298)
462 (298)
1019 (781)
986 (568)
759 (401)
V Miscellaneous 225 (242)
961 (620)
766 (587)
888 (621)
149 (079)
Total 9243 (100)
15511 (100)
13049 (100)
15762 (100)
18925 (100)
2 APMC Bhalki 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
503 (5164)
619 (5213)
768 (4931)
1245 (4777)
2284 (5359)
II Contribution to KSAM board
069 (711)
076 (640)
184 (1183)
334 (1281)
889 (2085)
III Administrative expenses
380 (3902)
426 (3586)
547 (3510)
918 (3525)
858 (2013)
IV Expenditure on amenities
011 (112)
031 (265)
041 (260)
087 (335)
189 (444)
V Miscellaneous 012 (211)
036 (296)
018 (116)
023 (082)
042 (099)
Total 975 (100)
1188 (100)
1558 (100)
2607 (100)
4262 (100)
3 APMC Aurad 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
365 (5577)
188 (3067)
256 (3514)
486 (4065)
2185 (4113)
II Contribution to KSAM board
048 (740)
093 (1516)
089 (1219)
182 (1517)
782 (1471)
III Administrative expenses
211 (3210)
186 (3050)
243 (3341)
361 (3016)
1521 (2862)
IV Expenditure on amenities
014 (221)
105 (1725)
121 (1661)
150 (1255)
751 (1415)
V Miscellaneous 018 (252)
041 (642)
019 (265)
018 (147)
074 (139)
Total 656 (100)
613 (100)
728 (100)
1197 (100)
5313 (100)
Source Annual reports of APMC Bidar for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
107
From the table 47 it was clear that administrative expenses constitute 957
to 1496 in total expenses in APMC Bidar it was as high as compared to APMC
Bidar and APMC Aurad ie 2013 to 3902 during the research period In Aurad
the situation was completely different ie it ranged between 2862 to 3341
during the same period ie 2009-10 to 2013-14
The trends in the contribution to state consolidated fund also showed an
increasing and decreasing trend in all the three APMCs in Bidar district during the
plan period In Bidar APMC it was registered lowest contribution to state
consolidated fund in the year 2009-10 ie Rs 6600 lakhs and the highest in Rs
13753 lakhs in 2013-14 Similarly in case of APMC Bhalki lowest was recorded in
2009-10 ie Rs 975 lakhs and highest in the year 2013-14 ie Rs 4262 lakhs But
in APMC Aurad beginning year ie 2009-10 it was Rs 365lakhs decreased to Rs
188 lakhs in 2010-11 and again increased to maximum Rs 2185 lakhs in 2013-14
Apart from a sizeable proportion of expenditure (ie 116 to 961) was made
under the head miscellaneous
III) Expenditure position of selected APMCs in Koppal
The trends in the growth of total expenditure incurred by the sample APMCs
in the Koppal district is presented for the five years period ie 2009-10 to 2013-14 in
the below Table 48
Table 48 depicts the expenditure position of three APMCs selected for the
present study in the Koppal district A detailed analysis of this indicates that the total
expenditures incurred by APMC Koppal were increased through out the study period
from Rs 2217 lakhs in 2009-10 to Rs 6862 lakhs in 2013-14 The same situation
was also found in case of APMC Gangavati ie Rs 29714 lakhs in 2009-10
increased to Rs 54160 lakhs in 2013-14 and in APMC Kustagi total expenditure was
Rs 4015 lakhs in 2009-10 raised to Rs 6295 lakhs in 2013-14
108
Table-48
Trends in Growth of Expenditure of Selected APMCs in Koppal District
(Rs In lakhs)
Sl No APMC Koppal
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
1157 (5217)
1522 (5071)
2205 (5316)
2261 (5555)
4023 (5862)
II Contribution to KSAM board
143 (646)
224 (748)
307 (741)
287 (705)
537 (782)
III Administrative expenses
668 (3014)
944 (3147)
1167 (2813)
1101 (2704)
1720 (2506)
IV Expenditure on amenities
226 (1019)
267 (891)
333 (805)
332 (815)
480 (700)
V Miscellaneous 023 (104)
044 (143)
137 (325)
091 (221)
102 (150)
Total 2217 (100)
3001 (100)
4149 (100)
4072 (100)
6862 (100)
2 APMC Gangavati 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
15819 (5324)
23396 (5410)
28621 (5450)
27388 (5470)
29896 (5520)
II Contribution to KSAM board
1902 (640)
2422 (560)
2757 (525)
2753 (550)
3629 (670)
III Administrative expenses
8338 (2806)
12541 (2900)
15807 (3010)
14821 (2960)
15381 (2840)
IV Expenditure on amenities
3310 (1114)
4329 (1001)
4989 (950)
4657 (930)
4604 (850)
V Miscellaneous 345 (116)
558 (129)
342 (065)
451 (090)
650 (120)
Total 29714 (100)
43246 (100)
52516 (100)
50070 (100)
54160 (100)
3 APMC Kustagi 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2168 (5400)
2357 (5610)
2498 (5520)
2647 (5620)
3607 (5730)
II Contribution to KSAM board
225 (560)
189 (450)
288 (660)
363 (770)
535 (850)
III Administrative expenses
1169 (2913)
1195 (2845)
1326 (2930)
1232 (2615)
1711 (2718)
IV Expenditure on amenities
422 (1050)
405 (965)
319 (705)
396 (840)
319 (507)
V Miscellaneous 031 (077)
056 (130)
094 (185)
072 (155)
123 (195)
Total 4015 (100)
4202 (100)
4525 (100)
4710 (100)
6295 (100)
Source Annual reports of APMC Koppal for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
109
When we look at the percentage of specific expenditure in the total
expenditure contribution to state consolidated fund was major component ie in
Koppal APMC 5071 to 5862 in APMC Gangavati 5324 to 5520 and in
APMC Kustagi 54 to 5730 during the plan period However contribution to
KSAM Board constitute an annual average around Rs 3 lakhs per year in APMC
Koppal Rs 2693 lakhs per year in APMC Koppal Rs 2693 lakhs per year in
APMC Gangavati and Rs 32 lakhs per year in APMC Kustagi Administration
expenses also got secondary importance in the expenditure position followed by the
expenditure on amenities in the market yard Miscellaneous expenditure constitutes a
negligible percentage in the total expenditure
IV) Expenditure position of selected APMCs in Raichur
Table 49 depicts the year wise total expenditure spent by the sample
APMCs in the Raichur district during the five years period of study ie 2009-10 to
2013-14 Table 49 reveals that the expenditure incurred by the APMC Raichur was
not constantly increased It was decreased in 2010-11 and 2011-12 indicating that it
was more efficient in control of expenditure but during last two years of plan period it
increased from Rs44965 lakhs in 2009-10 to Rs67431 lakhs in 2013-14 with annual
aggregate growth over pervious year Rs4493 lakhs
In case of Sindnoor APMC the annual growth during the study period was
Rs3835 lakhs over the previous year As far as APMC Linagsugur is concerned this
was Rs 564 lakhs A keen observation on the expenditure statement of selected
APMCs in Raichur district points out that the APMC Raichur has got first rank in
terms of the total expenditure incurred among the selected APMCs in the district
followed by the APMC Sindnoor and APMC Lingasugur respectively As use well
contribution to state consolidated fund remained the dominating expenditure in the
total expenditure followed by expenditure on amenities Administration expenses and
contribution to KASM Board The state consolidated fund which was eaten away the
major position of total expenses (6535) to 7238 in Raichur APMC 5518 to
5730 in APMC Sindnoor and 5518 to 5730 in APMC Sindnoor and 5566 to
600 in APMC miscellaneous expenses remained minor expenses in total expenses
110
Table-49
Trends in Growth of Expenditure of Selected APMC in Raichur District
Sl No APMC Raichur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 31862 (7086)
24764 (6535)
30247 (7100)
39880 (7238)
21275 (3155)
2 Contribution to KSAM board
3795 (0844)
5135 (1355)
5197 (1220)
6391 (1160)
3539 (525)
3 Administration expenses 5216 (1160)
4036 (1065)
4090 (960)
4849 (880)
(1550)
4 Expenditure on Amenities 2905 (646)
2065 (545)
2185 (513)
3471 (630)
(4210)
5 Miscellaneous 1187 (264)
1894 (500)
882 (207)
508 (092)
(560)
Total 44965 (100)
37894 (100)
42601 (100)
55099 (100)
67431 (100)
Sl No APMC Sindnoor 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 6283
(5655) 7740
(5518) 11182 (5685)
14152 (5690)
17353 (5730)
2 Contribution to KSAM board
833 (750)
1000 (713)
1241 (631)
1644 (661)
1968 (650)
3 Administration expenses 589 (530)
588 (419)
1017 (517)
1300 (523)
1332 (440)
4 Expenditure on Amenities 3350 (3015)
4418 (3150)
5959 (3030)
7496 (3014)
9443 (3118)
5 Miscellaneous 0050 (050)
280 (200)
270 (137)
279 (112)
188 (062)
Total 11111 (100)
14026 (100)
19669 (100)
24871 (100)
30284 (100)
Sl No APMC Lingasugur 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 1 Contribution to state
consolidated fund 1102
(5566) 1364
(5818) 2193
(5910) 2674
(6130) 2879
(6000) 2 Contribution to KSAM
board 127
(640) 331
(1431) 382
(1030) 689
(1580) 773
(1612) 3 Administration expenses 159
(804) 144
(614) 394
(1061) 267
(611) 362
(755) 4 Expenditure on Amenities 500
(2530) 483
(2060) 673
(1814) 628
(1440) 710
(1480) 5 Miscellaneous 092
(460) 023
(095) 069
(185) 104
(239) 074
(153) Total 1980
(100) 2345 (100)
3711 (100)
4362 (100)
4798 (100)
Source Annual reports of APMC Raichur for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
111
V) Expenditure position of selected APMCs in Bellary
In the Table 410 the details of the various expenditure incurred by the three
APMCs which are taken for the research as sample in the Bellary district are shown
clearly along with individual expenditure percentage to total
The total expenditure for all the five years of the study and the details of
expenditure under each heads along with the percentage to total of Bellary APMC
indicates that a rapid growth was found in total expenditure ie Rs 8835 lakhs in
2009-10 increased to Rs 33116 lakhs in 2013-14 with compound annual growth
during study years 27482 This compound growth in the APMC Hospet was found
to be negative in 2010-11 and 2013-14 and positive in 2011-12 and 2012-13 In case
of Siraguppa APMC the compound growth was 47147 during research period
112
Table-410
Trends in Growth of Expenditure of Selected APMC in Bellary District
(Rs In lakhs)
Sl No APMC Bellray
Years 2009-
10 2010-11 2011-12 2012-13 2013-14
1 I Contribution to state consolidated fund
4477 (5067)
3860 (2767)
4820 (2026)
6933 (2811)
10076 (3042)
II Contribution to KSAM board
746 (844)
643 (461)
1803 (758)
1155 (468)
1679 (507)
III Administrative expenses
3310 (3746)
4673 (3350)
15965 (6711)
16011 (6490)
20499 (6190)
IV Expenditure on amenities
276 (312)
159 (114)
1190 (500)
558 (226)
838 (253)
V Miscellaneous 026 (031)
011 (007)
008 (005)
011 (005)
024 (008)
Total 8835 (100)
13946 (100)
23766 (100)
24668 (100)
33116 (100)
2 APMC Hospet 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
2406 (7014)
2210 (7161)
2852 (6562)
2961 (6860)
2460 (7176)
II Contribution to KSAM board
320 (932)
216 (700)
416 (957)
429 (993)
317 (924)
III Administrative expenses
481 (1402)
418 (1354)
425 (978)
402 (931)
418 (1219)
IV Expenditure on amenities
114 (332)
101 (327)
269 (618)
219 (507)
125 (365)
V Miscellaneous 109 (320)
141 (458)
384 (885)
305 (709)
108 (316)
Total 3430 (100)
3086 (100)
4346 (100)
4316 (100)
3428 (100)
3 APMC Siraguppa 2009-10
2010-11 2011-12 2012-13 2013-14
I Contribution to state consolidated fund
4088 (5154)
4055 (5011)
7662 (4813)
9122 (4313)
28595 (6310)
II Contribution to KSAM board
564 (711)
544 (672)
1238 (778)
1581 (748)
2626 (579)
III Administrative expenses
3030 (3820)
2903 (3587)
5026 (3157)
6919 (3271)
9763 (2154)
IV Expenditure on amenities
167 (211)
293 (362)
883 (555)
1477 (698)
2888 (637)
V Miscellaneous 082 (104)
297 (368)
1111 (697)
2051 (970)
1452 (320)
Total 7931 (100)
8092 (100)
15920 (100)
21150 (100)
45324 (100)
Source Annual reports of APMC Bellary for 2009-10 to 2013-14 Note Figures in brackets indicates percentage to total
113
C) Profit Position
Profit is the excess of income over expenditures by the organization Profit is
the best indicator of the performance of any organization Higher the profit higher is
the efficiency and vice-versa APMCs are established not for profit motive but profits
remain important for their survival for future An attempt here is made to know profit
position by taking income and expenditure of all the selected APMCs in the Gulbarga
division and conclusion is drawn about their performance by comparing in APMC
with other APMC and also level of performance during the period under study
Table 411 depicts the year wise income expenditure and profitloss position
of the selected APMCs in the Gulbarga district The income of the three sample
APMCs from the Gulbarga district was shown an upward trend during the research
period ie 2009-10 to 2013-14 expect in the year 2010-11 the APMC Shorapur
income was down to Rs 6084 lakhs from Rs 6651 lakhs in 2009-10 When we see
the expenditure position of all the APMCs in the same table neither it was constantly
increasing or decreasing over a period of time it was showing zigzag trend Expect
the Shahapur APMC remained increasing during the plan period from Rs 756 lakhs
in 2009-10 to Rs 3576 lakhs in 2013-14
114
Table-411
Profit Position of Selected APMC in Gulbarga District
(Rs In lakhs)
Year Gulbarga Shorapur Shahapur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 29176 22423 6753 6651 3020 3631 1705 756 949
2010-11 30936 19783 11153 6084 10234 - 4150 1990 1049 941
2011-12 42852 25322 17530 9859 10223 0364 2404 1602 802
2012-13 73932 45947 27984 12517 8586 3931 4989 3708 1281
2013-14 87054 49378 37676 22176 4673 17502 8792 3576 5216
Source Annual Reports of Gulbarga APMC for 2009-10 to 2013-14
115
The detailed study of profit position of the selected APMC in Gulbarga district
also indicates that Shahapur APMC has made average amount of the profit in research
period without incurring any loss in the same period But APMC Shorapur had made
huge loss in the year 2010-11 ie Rs 4150 lakhs during heavy expenditures As per
APMC Gulbarga is concern profit was increased steadily from Rs 6753 lakhs in
2009-10 to Rs 37676 lakhs in 2013-14 with an annual aggregate growth of Rs 6184
lakhs per year
The Table 412 reveals that the profit or loss position of the selected APMCs
in Bidar district The analysis of profit of above APMCs in the table indicates that
Bidar APMC has positioned first in earning profit among three APMCs followed by
Bhalki APMC and APMC Aurad During the research period APMC Aurad had
incurred to Rs 3271 lakhs in 2013-14 The profit of Bidar APMC was ranged in
between Rs 932 lakhs to Rs 16042 lakhs and APMC Bhalki it was lowest to Rs
181 lakhs to highest Rs 2608 lakhs Both income and expenditure of Bidar APMC
was increased rapidly over a period time But in case of Aurad APMC the degree of
growth of expenditure was greater than the degree of growth in income which
reported slow growth in the profit The situation was different in case of APMC
Bhalki it was opposite and was almost 4 times increased in APMC Bhalki ie from
Rs 714 lakhs to Rs 2608 lakhs profit remained stable in APMC Aurad ie in
between Rs 323 lakhs to Rs 16042 lakhs in APMC Bidar during the period under
consideration
116
Table ndash 412
Profit Position of Selected APMCS in Bidar District
(Rs In lakhs)
Year Bidar Bhalki Aurad
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 18275 9243 9031 1689 975 714 1126 656 469
2010-11 16443 15511 932 1369 1188 181 1045 613 432
2011-12 17575 13049 4526 2739 1558 1181 1052 728 323
2012-13 31805 15762 16042 4330 2607 1722 1685 1197 487
2013-14 30420 18925 11495 6871 4262 2608 2041 5313 - 3271
Source Annual Reports of Bidar APMC for 2009-10 to 2013-14
117
The Table 413 deals with the trends in growth of income expenditure and
profit position of sample group of APMCs from the Koppal district Koppal district
APMCs were considered to be minor APMCs in the Gulbarga division A micro study
of these three APMCs in Koppal district reveals that APMC Gangavati was a leading
APMC in the Koppal district as it made super profit during the research period as
compared to APMC Koppal and AMPC Kustagi APMC Koppal has made average
profit ie Rs 1492 lakhs to Rs 4170 lakhs and APMC Kustagi has made normal
profit ie from Rs 540 lakhs to Rs 3995 lakhs during the five years study period
ie 2009-10 to 2013-14 Increased expenditures in APMC Koppal and APMC
Kustagi was eaten the profit
Profit position of the three APMCs from the Raichur district for the period of
five years ie 2009-10 to 2013-14 is shown in the Table 414 The table clearly
shows the year wise income position and its growth expenditure position and its trend
and the profit trend Among these three APMCs selected in sample from the Raichur
district Raichur APMC has earned highest amount of income which resulted highest
profit during the study period as compared to the APMC Sindhnoor and APMC
Lingasugur The profit of APMC Raichur was Rs20629 lakhs in 2009-10 increased
to Rs 45018 lakhs in 2013-14 during the research period During the same period
the profit of APMC Sindhnoor was increased from Rs 9518 lakhs to Rs 19171
lakhs and APMC Lingasugur from Rs 1327 to Rs 2201 lakhs with percentage
growth of almost 100 and 9026 respectively
118
Table-413
Profit Position of Selected APMCs in Koppal District
(Rs In lakhs)
Year Koppal Gangavati Kustagi
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 3709 2217 1492 51692 29714 21977 1185 645 540
2010-11 5849 3001 2848 68917 43246 25671 1346 775 571
2011-12 6223 4149 2074 78239 52516 25722 1684 1005 679
2012-13 6475 4072 2403 79755 50070 29684 2514 1469 1045
2013-14 11032 6862 4170 91123 54160 36963 10291 6295 3995
Source Annual Reports of Koppal APMC for 2009-10 to 2013-14
119
Table-414
Profit Position of Selected APMCs in Raichur District
(Rs In lakhs)
Year Raichur Sindnoor Lingusugur
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 40895 19035 21859 20629 111111 9518 3761 2434 1327
2010-11 48932 44965 3966 22760 14026 8734 2907 1980 926
2011-12 58356 37894 20462 30084 19669 10414 3708 2345 362
2012-13 71950 42601 29348 42881 24871 18009 6078 3711 2367
2013-14 100117 55099 45018 49455 30284 19171 7562 4362 2201
Source Annual Reports of Raichur APMC for 2009-10 to 2013-14
120
The Table 415 reveals the year wise profit made by the sample APMCs in the
Bellary district APMC Hospet has made least profit during all five years research
period but it increased from Rs 864 lakhs in 2009-10 to Rs 5211 lakhs in 2013-14
APMC Bellary had achieved significant progress in earning profit as compared to
APMC Siraguppa The profit of APMC Bellary steadily increased around 4 times
over the beginning year ie Rs 7576 lakhs in 2009-10 to Rs 27843 lakhs in 2013-
14 But the APMC Sirguppas profit was highest recorded in 2011-12 and 2012-13 ie
Rs 11784 lakhs and Rs 13315 lakhs respectively
121
Table-415
Profit Position of Selected APMCS in Bellary District
(Rs In lakhs)
Year Bellary Hospet Siragoppa
Income Expenditure Profit loss Income Expenditure Profit loss Income Expenditure Profit loss
2009-10 16411 8835 7576 4295 3430 864 9885 7931 1954
2010-11 22346 13946 8399 5682 3086 2596 12408 8092 4316
2011-12 28230 23786 4444 6404 4346 2058 27704 15920 11784
2012-13 40352 24682 15670 6816 4316 2499 34466 21150 13315
2013-14 60959 33116 27843 8639 3428 5211 59912 45324 9587
Source Annual Reports of Bellary APMC for 2009-10 to 2013-14
122
CHAPTER-V FINDINGS SUGGESTIONS AND CONCLUSION
FINDINGS
1 During field study the researcher found that all the APMCs working in
Gulbarga division are suffered storage facilities in general and cold storage
facilities in particular This calls for medium and big producers to take storage
facilities by paying heavy fees to private service provider
2 The field investigation resulted that the farmers have been experienced
difficulties in getting timely payment even after the sale of their produce
3 It is learnt from the field study of market participant that larger participant
were qualified upto secondary and the technical qualification such as ITI
Diploma etc Education among market participant is considered to be most
significant factor in discharging their duties and responsibilities more
efficiently and effectively
4 The analysis of nature of participant in the agricultural market revealed that
commission agents were dominant in the total market participant followed by
traders with 25 of sample group and Hamalas which constitute 16 of
sample size
5 Macro studies of facilities at the APMC yard in five districts of Gulbarga
division opinioned the lack of facilities ie Non-availability of drinking water
canteen transport and communication facilities etc One sample lsquoTrsquo test was
applied and the result shows that lsquotrsquo values ranged for above facilities between
46425 to107000 Mean difference was found between 14400 to 2000
6 The correlation between two variable ie advance money and number of
commodities was +0611 which is insignificant Similarly the correlation
between transport facility and role of government in market and graduation
facility with more representatives from farmers resulted 0445 and 0948 also
in significant but the only significant factor found between difficulty of
storage and increase in facilities with a value of 0508
7 There are different sources of incomes available to APMC These sources may
be classified like market fees licence fees penalty etc Among these sources
123
of income market fees collected by APMC were major but other incomes are
also envisaged in KAPM (R) Act 1966
8 The expenditure position of the selected APMCs in Gulbarga division which
covers five districtrsquos found that major use of expenditure by each APMCs
were contribution to state consolidated fund and contribution to KSAM Board
which was ranged between 3042 to 7210 and 564 to 2630
respectively
9 There are only three charges allowed for deduction from the sale produced of
farmers in Gulbarga APMC division they are commission to agents Hamali
and weighment Field investigation by researcher found that these charges are
nominal
SUGGESTIONS
1 To achieve its (APMC Act) objectives and for effective implementation of its
bye law and policies it is suggested that APMCs should open its branches at
Hobli level so that they may help and guide the formers in marketing of their
grown agricultural produce
2 It is recommended to all APMCs in Gulbarga division to take efforts to stop
rural marketing to get better price An inspection team has to be formed to
stop local sales The team member should visit all the villages coming under
the jurisdiction of the APMC during Post harvest
3 Lots of changes have to be brought into the marketing activities in the APMC
yard Scientific grading and enlightment for all commodities in the market
yard be made compulsory in a phased manner
4 Illiteracy of formers and lack of Medias for communication of information has
been a big problem in rural as well as semi-urban areas The information
obtained should be in a position to help them in decision making Hence it is
recommendable to each APMC for equipping the intelligence cell and branch
offices with highly qualified and trained staff to perform the job quicker to
help producers at right time
5 The existing facilities of processing and storage in all the APMC of Gulbarga
division are inadequate This gap need to be filled up The local government
administrative bodies financial agencies and APMCs should motivate the
124
processing units to be set up and also more godowns are to be encouraged for
construction in these areas
6 Proper co-ordination between the financial agencies established by APMCs or
any other organization to be set up for this purpose is necessary This
definitely prevent the exploitation of farmers by private financiers This
problem needs to be tackled on priority basis in Gulbarga division
7 To avoid the injustice at the time of weighment of farm produce on arrival
and sale APMCs needs to make it compulsory to install electronic weighting
machines The issue of weighment note to the agriculturist by agents is made it
compulsory
8 As far as Gulbarga division APMCs are concerned they have completely
neglected the importance of two marketing services ie assembling and
processing The absence of these two services in the study area is a reflection
on its lethargic and indifferent attitude in providing a comprehensive package
of marketing services to the rural farmers
9 Lots of changes have to be brought into the payment to the farmers after sales
The strong actions against the defaulting commission agent should be
exercised and also cautioned against such delays on their part when any
complaint from the farmers regarding the delay In this regard formulation of
rigid policy is recommended at all APMCs
10 Some of the APMCs in Gulbarga division are still practicing mutual
negotiation method of sale this leads unfavourable price for the agricultural
produce Auction system of sale is made compulsory for all commodities
arriving in the market yard and negotiation method is to be prohibited
11 It was noticed from the market yard during the field visit different types of
malpractices on the part of the unscrupulous market functionaries In order to
eliminate this harassment to farmers the marketing committee has to detect
such unethical practices from market participants and they be severely
punished with fine and imprisonment
12 To improve the overall quality of services (marketing services and
infrastructure facilities) it is strongly advisable to marketing committees to
implement all the provisions lay down in KAPM (R) Act 1966 and rules in
1968 along with suggestions made by Indian standards Institute (RSI) for the
benefit market functionaries in general and farmers in particular
125
13 A network of rural storage centres should be built on a priority basis in order
to prevent distress sales wastage and loss arising out of inadequate and
defective storage facilities
14 These storage centres may be constructed and managed by panchayats
cooperatives and other suitable agencies selected by the State Government
15 Farmers should be provided with receipts for the commodities stored by them
Each receipt should be a negotiable instrument to enable them to obtain credit
from banks
16 The banks should provide credit to the extent of 90 percent of the value of the
stocks stored by the farmers and the credit should be provided at concessional
rates of interest
17 Arrangements for the display of prices on notice boards at important public
places like hospitals schools panchayat ghars etc should be made
18 There must be proper coordination between market intelligence and policy
making departments so that the later may better understand the problem and
can make such adjustments in the information as may be called for
CONCLUSION
Indiarsquos long-neglected agriculture sector is all set to grow faster We have
improved a lot since independence In the last few years it has grown at an average
rate of 31 only and there is a need to step up the growth in this sector Then only
Indiarsquos GDP growth cross 9 and rural income and rural employment increases
It is time to APMCs to give concrete shape to the agro-industrial integration
by starting industrial units based on agricultural raw-materials This integration will
create a better economic atmosphere for the growth of the Karnataka region as well as
Gulbarga division
126
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67 Subba Rao K Agricultural Marketing and Credit ICSSR New Delhi 1985
68 Tyagi D S Managing Indias Food Economy-Problems and Alternatives
Sage Publications India Pvt Ltd New Delhi 1990
69 Vedini K H 2000 Management Issues in Rainfed Agriculture in India
70 Venkateswarulu J 1999 Technical Manual on Watershed Management
(Series (II) Resource(III)Arable Cropping Systems (IV) Non-Arable
Cropping Systems (V) Non-farming Systems amp Watershed in Retrospect
Conservation)
71 Vijay Gaatha 2002 Agripreneurs Documents 24 success stories of
agripreneurs with 40 different types of projects
72 Vijender Agricultural Marketing in India The Mandi System
JOURNALSMAGAZINES
1 Indian Journal of Agricultural Economics - Quarterly The Indian Society of
Agricultural Economics 46-48 Esplanade Mansions MG Road Fort
Mumbai-400001
2 Agricultural Situation in India - Monthly Directorate of Economics and
Statistics Ministry of Agriculture Government of India New Delhi
3 Indian Agriculture in Brief - Annual Directorate of Economics and Statistics
Ministry of Agriculture Government of India New Delhi
4 Yojana - Monthly Ministry of Information and Broadcasting Government of
India New Delhi
5 Economic Survey - Annual Ministry of Finance Government of India New
Delhi
131
APPENDIX-I QUESTIONNAIRE
QUESTIONNAIRE FOR FARMERS
1) Name of the Farmerhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Name of the village and district helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
3) Age (in years)
a) Below [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
4) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P G and others [ ]
5) Sources of income
a) Agriculture [ ] b) Business [ ]
c) Employment [ ] d) Others [ ]
6) Annual gross income (In Rs)
a) Agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Non agriculture helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
7) Type of family
a) Nuclear family [ ] b) Joint family [ ]
c) Individual (single) [ ]
8) Number of family members
a) lt 4 [ ] b) 4 ndash 8 [ ]
c) 8 ndash 12 [ ] d) 12 and above [ ]
9) Total agricultural land holding (In Acres)
a) Below 5 Acres [ ] b) 5 ndash 10 Acres [ ]
c) 11 ndash 15 Acres [ ] d) Above 16 Acres [ ]
10) Crops grown in land with quantity per annum
Qty (in Quintals)
a) Red gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) Green gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) Black gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) Jowar helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
e) Maize helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
f) Bajra helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
132
g) Bengal gram helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
h) Sugarcane helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
i) Others helliphelliphelliphelliphelliphelliphelliphelliphelliphellip
11) Sale of agricultural produces
a) Open market [ ] b) APMC [ ]
c) Confirmation Agriculture [ ] d) Others [ ]
12) Preference of sale of agricultural produce
a) Local market [ ] b) Taluka market [ ]
c) District market [ ] d) Other state [ ]
13) How you carry agricultural produce to APMC
a) Bullock cart [ ] b) Tractor and trucks [ ]
c) Hired vehicle [ ] d) Own vehicle [ ]
14) Market charges of the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
15) Carrying cost paid in the APMC
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
16) Facilities provided by the APMC
Yes No
a) Water [ ] [ ]
b) Toilet [ ] [ ]
c) Canteen [ ] [ ]
d) Communication [ ] [ ]
e) Shopping property [ ] [ ]
f) Marketing information [ ] [ ]
g) Other facilities (if any) [ ] [ ]
17) Sources for dissemination of marketing information
a) News paper [ ]
b) Radio and Television [ ]
c) Dept of the government [ ]
d) Post and Telephone [ ]
e) Price bulletins [ ]
f) Personal contact [ ]
133
18) Rank the defects in regulated markets
a) No advance money [ ]
b) Difficulty of storage [ ]
c) Lack of transport facility [ ]
d) Lack of gradation facility [ ]
19) Rank the facilities to improve market efficiency
a) More number of commodities [ ]
b) Increases in facilities [ ]
c) More role of government [ ]
d) More representation from farmers [ ]
e) Reduction in market fees [ ]
20) Weather APMC provides adequate transport services
a) Yes [ ] b) No [ ]
21) Weather APMC provides adequate storage facilities
a) Yes [ ] b) No [ ]
22) Does APMC has cold storage facilities at warehouse
a) Yes [ ] b) No [ ]
23) What is the monthly storage cost of your produce at APMC
Rs helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
24) Whether APMC helps you for processing of your produce
a) Yes [ ] b) No [ ]
25) Do you satisfied with processing services provided by processors
a) Yes [ ] b) No [ ]
26) Processing fees paid to processors
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
27) Whether grading facilities are available at the APMC
a) Yes [ ] b) No [ ]
28) Do you satisfied with grading services provided by graders
a) Yes [ ] b) No [ ]
29) Are the graders trustworthy
a) Trustworthy [ ] b) Not trustworthy [ ]
30) Whether APMC provides efficient weighment of produce
a) Yes [ ] b) No [ ]
134
31) Do you satisfied with cost charged for weighment of produce
a) Yes [ ] b) No [ ]
32) Whether electronic weighing balancesmachine have been installed in
markets
a) Yes [ ] b) No [ ]
33) Causes of the defects in weighing
a) Absence of licensed weighman [ ]
b) Under weighing [ ]
c) Favouring for buyer [ ]
d) Faulty weights [ ]
e) Faculty weight machines [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
34) Grading of produce helps in the ways
a) Easy marketing [ ]
b) Reduction of cost [ ]
c) Higher prices [ ]
d) Encourage competition [ ]
e) Easy to get finance [ ]
35) Whether APMC provides market information on time to time
a) Yes [ ] b) No [ ]
36) If lsquoNorsquo what are the defects in market information
a) Ignore retail prices [ ]
b) Delay in news [ ]
c) Wide range of prices [ ]
d) Incomplete information [ ]
e) Illiteracy [ ]
f) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
37) Processing of produce helps to you in the ways
a) Add the value [ ]
b) Preservation for longer period [ ]
c) Less cost of production [ ]
d) Wide extent of the market [ ]
e) Use of surplus food [ ]
135
38) Do you insure your agricultural produce at APMC
a) Yes [ ] b) No [ ]
39) Whether you satisfied with the insurance facilities at the APMC
a) Yes [ ] b) No [ ]
40) Whether bank credit faculties available at the APMC
a) Yes [ ] b) No [ ]
41) Are you satisfied with present banking facilities
a) Yes [ ] b) No [ ]
42) What are the other sources of credit facilities other than bank credit
a) Whole sellers [ ] b) Retail seller [ ]
c) Commission agents [ ] d) Others (specify)helliphelliphelliphelliphellip
43) Ranking the factors determining the finance requirements
a) Nature of crop [ ] b) Terms of payment [ ]
c) Economic condition [ ] d) Fluctuations of prices [ ]
e) Volume of crop [ ]
44) Interest paid on bank credit
a) Very low [ ] b) Very high [ ]
b) Fair [ ] d) Average [ ]
45) Are you obtaining services form the commission agents at APMC
a) Yes [ ] b) No [ ]
46) Are you satisfied with services provided by licensed commission agents
a) Yes [ ] b) No [ ]
47) If lsquoNorsquo what are the defects with commission agents
a) Favourable to buyer [ ]
b) High commission [ ]
c) Misguide [ ]
d) Lack of knowledge [ ]
e) Others (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
48) Commission paid to commission agents
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
49) Do you have given any complaint against agent to the APMC about more
commission
a) Yes [ ] b) No [ ]
136
50) Whether sufficient number of Hamals are available at the APMC
a) Yes [ ] b) No [ ]
51) The cost of cooli to Hamals
a) Very low [ ] b) Very high [ ]
c) Fair [ ] d) Average [ ]
52) Are you satisfied with hamals services
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
53) Do you have given any complaint against hamals to APMC for high cooli
a) Yes [ ] b) No [ ]
54) Cooperation of officials of the APMC
a) Fully cooperated [ ] b) Partly cooperated [ ]
c) Not cooperated [ ] d) Neither cooperatenor not [ ]
55) What are the defects you found with APMC officials
a) Non-cooperative [ ] b) Favourable to buyer [ ]
c) Laziness [ ] d) Expect money [ ]
e) Improper market data [ ] f) Others (Specify) helliphelliphellip
56) Do you have given ay complaint to higher officer against defaulting
APMC officer
a) Yes [ ] b) No [ ]
57) Do you have experienced following malpractices at the APMC
a) Inadequate grading [ ]
b) Inadequate packing [ ]
c) Unfavourable weighment [ ]
d) Excess samples [ ]
e) Inadequate supervision [ ]
f) Excess market charges [ ]
g) More favourable to buyer [ ]
h) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
58) Do you have any disputes with buyer
a) Yes [ ] b) No [ ]
59) What are the main causes for disputes in APMC
a) Price of produce [ ]
137
b) Quality of produce [ ]
c) Weighment [ ]
d) Timing of payment [ ]
e) Grading of produce [ ]
f) Warehousing [ ]
g) Others specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
60) Which is the best way for settling of market disputes
a) Secretary level [ ] b) Dispute committee [ ]
c) Arbitration [ ] d) Court [ ]
61) Whether market committee officers supervises the services
a) Yes [ ] b) No [ ]
62) Do you find that APMC helped you in getting better prices for your
produce
a) Yes [ ] b) No [ ]
63) Your opinion about quality of service at APMC
a) Very good [ ] b) Good [ ]
c) Bad [ ] d) Very bad [ ]
e) Either good or bad [ ]
64) What is your opinion about customary deduction
a) As per bye laws [ ]
b) More than systems [ ]
65) Give your suggestions for making improvement in quality of services at the APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
d) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
138
APPENDIX-II QUESTIONNAIRE FOR RESPONDENTS
A) Personal Information
1) Name of respondents helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
2) Age of respondents in years
a) Below ndash 20 [ ] b) 21 ndash 40 [ ]
c) 41 ndash 60 [ ] d) 61 and above [ ]
3) Educational qualification
a) Primary [ ] b) Secondary [ ]
c) Degree [ ] d) P and G and others [ ]
4) Religion
a) Hindu [ ] b) Muslim [ ]
c) Christian [ ] d) Others (Specify) helliphelliphelliphelliphelliphellip
5) Nature of participant in APMC
a) Commission agents[ ] b) Hamals [ ]
c) Trader [ ] d) Grader [ ]
e) Processor [ ] f) Broker [ ]
g) Others (Specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
6) How long you are in market yard
a) Below 10 years [ ] b) 11 ndash 20 [ ]
c) 21 to 30 [ ] d) 30 and above [ ]
7) Factors motivated for choosing this profession
a) Heredity [ ] b) More profitable [ ]
c) Uncertain induced [ ] d) Unemployment [ ]
e) Other specify helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
8) Are you satisfied with present marketing practices at APMC
a) Yes [ ] b) No [ ]
9) If lsquoNorsquo give the reasons for unsatisfaction
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
10) Are you satisfied with farmerrsquos activeness in APMC
a) Yes [ ] b) No [ ]
139
11) If lsquoNorsquo suggest to make them more active in market yard
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
12) Are you getting following facilities at the APMC yard
a) Water [ ]
b) Canteen [ ]
c) Communication [ ]
d) Marketing information [ ]
e) Transport [ ]
f) Health and sanitation [ ]
g) Banking and finance [ ]
h) Other (specify) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13) Do you satisfied the above facilities at the APMC yard
a) Fully satisfied [ ] b) Partly satisfied [ ]
c) Not satisfied [ ] d) Neither satisfied or not [ ]
14) Are you satisfied with quality of marketing of services at the APMC
Services Fully
satisfied
Partly
satisfied
Not
satisfied
No
response
a) Assembling
b) Processing
c) Grading
d) Storing
e) Weighment
f) Banking and finance
g) Rest house
h) Insurance
15) What suggestions do you want for efficient operations of APMC
a) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
b) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
c) helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
140
APPENDIX-III
PHOTOGRAPHS
ENTRY GATE OF APMC
ROAD FACILITY INSIDE APMC
141
WEIGHING GROUNDNUTS IN APMC
PROCESSING OF GROUNDNUTS
142
FILLED COTTON BAGS
WEIGHING TUR IN APMC
143
STORING GROUNDNUTS OUTSIDE
PROCESSING GRADING AND WEIGHING BAJRA
144
FILLING OF SUNFLOWER IN BAGS
LOADING OF COTTON BY LABOURS
- Table-317
- lsquotrsquo - Test Values
- Table-327
- Pearson Correlations
-