Agricultural / Horticultural Marketing in Himachal Pradesh

 

In Himachal Pradesh, various types of fruits and vegetables are grown. The majority of marketable surplus is off season vegetables, Stone and pome fruits. The share of primary sector in State GVA is approximately 14%. This sector provides the livelihood to majority of population appox. 60% and also provide employment opportunities.

The marketing of fruits is done in traditional way in Himachal. Earlier big farmers collect the produce of themselves and nearby small framers and carry it to bigger markets like Delhi and Chandigarh for sale, where they have linkages with trader. There is no transparent method of price discovery. The farmers have to settle whatever price is afforded to them after deducting unregulated  transportation  and incidental charges.

The marketing model is depicted in following diagram.

Farmer  ------à Bigger Farmer----à  Arthiya (Commision Agent) in Delhi Market ---àTrader ---à Retailer------àConsumer.

The other method is that the big traders in big whole sale market send his agent to farmer filed. Where they final the local agent who source the produce on certain amount/ commission fixed. They have informal type of forward agreement of sale with farmer produce at the time of harvesting. All the grading packaging is practiced by the agent and transporter to wholesale market and then trader to retailer to consumer chain. The marketing model is as under:

Farmer---à Agents---à wholesale Markets---à Traders---à Retailer--à Consumer.

It is pertinent to mention here that in most of States the produce is to be sold in a APMC controlled wholesale market. Every produce goes to any part of country first go to whole market then further moves to retailer and consumer. Every transaction attracts incident charges, logistic charges, margin of stockholder. This leads to price increase on the  basic commodity and less realization of farmer share in consumer price.

In the state of Himachal the development of agri whole sale market started after  Year 2000. State is having 10 APMC upto 2000 there were only 34 market yards. In the year 2022, the number of local markets in state increased to 71.

After development of wholesale markets  in Himachal Pradesh, the trade was facilitated in following way.

1. Farmer got the option to sell the produce in nearby market, this helped him to plan harvesting, grading, packaging and transportation to nearby market as per his choice. This reduced the dependence of small marginal farmer on bigger famers or agent of trader. The cost of transportation has also reduced. Farmer has the knowledge of prevailing market rates in nearby mandi can manage the harvesting operations as per market trends. The commission agents/ trader marketing in these markets are local people hence farmer has frequent interactions and faith development activities with these traders. Since the transactions are happening within the state, hence farmer has more legal power to defend his right.

2. Due to the functioning of whole sale markets in production area. The traders operating in different parts of country are less dependent on bigger markets like Delhi and Chandigarh. Earlier they have to depend the mercy of big traders working in those wholesale market to source the produce. They were also exploited like farmer in these whole sale markets and have to procure whatever produce the wholesaler wants to sell them. The markets functioning in Himachal Pradesh offer the trader to directly purchase the desired produce in desired form, grade and packaging etc. and have the choice to market them directly in consumers located in throughout the country. This reduced one layer of marketing through Delhi Market, so the saving made through this channel can be offered in term of increased price to farmer or reduced price to consumer. As a result of this the trader from across the country are directly purchasing from the production area, due to larger participation the price offered to farmer is comparatively high.

3. Due to increased trading activity within the state, there are many secondary benefits. The produce brought into local mandis is in smaller vehicle like Pickups and Utility vehicles. This provides employment opportunity to local youth. The small vehicles from non-producing areas are also operating during marketing season and earning their livelihood. Since the produce is aggregated in local mandis and dispatched to distant market as per requirements hence various transport companies started operating in these markets during the season. Due to which large sized lorries started coming to state. Their movement has also brought down the general tariff rates not only for commodities but also the non agri commodities as they bring loads when come to Himachal take agri commodities during back journey. Local business  activities like hotels, restaurants, Dhabas, Motor Mechanics  and other related business are flourishing due to business of agri whole sale trade within the Himachal.   

 

NEW INNOVATIONS IN AGRI MARKETING

 In the year 2016, GOI has started a new scheme for agricultural marketing . The electronic National  Agricultural Market  ( e-NAM)  scheme is started with a vision to create a National whole sale  market equipped with latest technology. Since agricultural wholesale trade is scattered  throughout the country and every state has their own regulations /law. To make the system   uniform throughout the country, was very challenging task. Although efforts were made to make the uniform laws but due to different local conditions, it is taking long time than expected.

However, this scheme laid a foundation stone toward operating of a uniform trading platform and to make this happen  the focus was made  to standardize the quality  parameters,  developing  technology  to measure the quality  of produce,  quality based trading, prompt payment  through usage of technology. Due to this intervention various technology  driven start up  started  emerging into the agribusiness  supply chain and its good results will be visible in future.

Due to innovation in quality determination (Assaying), the other agencies involved  traditionally were also sensitized and they are also using the technology in their business operations.

The APMC in Himachal are also aligning with the changes  in ecosystem and developing their  makets as further ready markets. The HPSAMB  has taken the task of  interlinking of whole  sale market through  technology  giving special  focus on quality  lead  trading system. For market information, the board has developed  web portal  on which the prices of commodities  are uploaded  on daily basis. To reduce the hassles of market operation the licenses are made outline and made provision for unified license, which is valid throughout  the state. State is having market 19 markets integrated  on e-NAM and are equipped with  Assaying  labs for quality  assessment, e-trading hall for online trading, weighing  scales for  accurate weighments and dedicated  manpower  for timely  assistance.

To provide quality grading and sorting facilities, board is in process  of purchasing  movable  machinery, which can be taken to filed level for a proper grading  and sorting at minimum  prices. This will lead to quality and graded arrival in whole sale market.  C grade produce can  be directly taken to processing facility.

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