PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the...

149
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 A.P.M.C. IN KARNATAKA: A CASE STUDY OF GULBARGA DIVISION (File No. MRP(H)-1784/11-12/KAGU058/UGC-SWRO dated 24.09.2013) By Dr.SANGAPPA S.RAMPURE Principal Investigator, Department of Commerce & Management, Government First Grade College, Shorapur, District Yadgir Submitted to UNIVERSITY GRANTS COMMISSION SOUTH-WESTERN REGIONAL OFFICE, P.K. BLOCK, PALACE ROAD, BANGALORE AUGUST, 2015

Transcript of PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the...

Page 1: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE

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

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
Page 2: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE

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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of Pulses Mittal Publications Delhi-110035 1988

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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

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Analysis

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EM Steenkamp 1997 Agricultural Marketing and Consumer Behavior in a

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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

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21 Crawford I M 1997 Agricultural and Food Marketing Management

(Marketing and Agribusiness Texts 2)

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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)

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Marketing Policies in an African Context A Framework for Analysis (World

Bank Staff Working Paper) (No 743)

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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

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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
Page 3: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE

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
Page 4: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE

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
Page 5: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE

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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3 Acharya S S Agricultural Production Marketing and Price Policy-A Study

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4 Acharya S S M S Rathore and P R Sharma Agricultural Marketing - A

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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

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EM Steenkamp 1997 Agricultural Marketing and Consumer Behavior in a

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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
Page 6: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE

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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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
Page 7: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE

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
Page 8: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE

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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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
Page 9: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
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Page 19: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
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Page 21: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 22: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 23: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 24: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 25: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 26: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 27: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 28: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
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Page 30: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
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Page 32: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
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Page 34: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 35: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 36: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
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Page 38: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
Page 39: PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A …€¦ · Final Report of the work done on the Minor Research Project PERFORMANCE EVALUATION OF A.P.M.C. IN KARNATAKA: A CASE
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