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Transcript

Hello friends, I am sure you have enjoyed the discussion on the cyber extension in your previous class. In today’s class we will be discussing about the concept of market led extension. So the concept of market led extension as the title itself explanatory, you can very well understand that. The concepts of marketing has emerged as the market led extension. Now in today’s context the farmers are having the major issue associated with marketing of their produce. During the green revolution era, immediately after the independence, till the 70’s that we can say, the major concern was on enhancing the agricultural production as well as productivity.

In the post green revolution era, we have achieved the desired levels of production and productivity. And today we are having the surplus production as well as we are achieving the higher levels of productivity. The major problem that is emerging out of these processes is. Where to market the produce? And how to get the remunerative price for the agricultural produce. So this is what is the core issue of the discussion on the market led extension. How a farmer can change his approach of production and marketing, so that he can realize the best possible price in the market.

Let us come to the discussion on the need for the market led extension. The need for market led extension emerges by converting the production led extension system to the market led extension system. In case of production led extension the emphasis was on enhancing the agricultural production. That is what I have already said, and how to increase the productivity levels. But in case of market led extension, the emphasis is on what exactly are the needs of the market. What are the needs of our consumers? And based on their needs we are going to change our production practices. That is what is market led extension emphasizes upon. Then the need for the market led extension is, due to the orientation of the extension system with the knowledge and skills related to the market. So we can sensitize the extension system to orient themselves towards analysis of the market needs as well as educating the farmers accordingly. So that they will emerge as the successful producers based on the needs of the market.

Then minimization of the cost of production so that they can maximize their profit. So there is a perfect relationship between these two. Introduction of the export oriented product. So this is what is the outcome of the analysis of the markets. And that is what is extension is emphasizing upon. So that how can we start producing the products, which are having export orientation number one or the available produce, it should get the remunerative price in the international market. That is another approach. Then modernization of the wholesale markets or new markets with new agricultural policy is another need for the market led extension.

Now coming to the objectives of market led extension. The first and foremost objective is conversion of agricultural sector into profit oriented business. So with this objective the market led extension is operating upon. But till date the general perception among the masses, whether he is a farmer or a nonfarmer or anybody else. They are of the opinion that agriculture is a business of loss. So how to have the paradigm shift is the major challenge with which the market led extension is working upon as a first objective. Then strengthening the research-extension-farmer linkages between various departments at various levels, so that we can achieve the desired levels then. Strengthening of the marketing linkages to farmers by involving the information technology applications in agricultural marketing. In the cyber extension efforts we have already seen some of the examples like the portals like the Gyandoot, initiative of the Government of Madhya Pradesh. AGMARKNET, initiative of the Ministry of Agriculture. Then Tarahaat.com which is catering the needs of the farmers of the Uttar Pradesh.

All these are some of the indicative examples wherein information technology is largely being utilized for marketing the agricultural produce. Then the wider use of electronic and mass media for agricultural extension. So because of which the government has established the channels like the Kisan channel and good number of private channels are also coming out with the discussion on issues associated to the agriculture by giving the current market price at regular intervals in the morning and in the evening hours. And these are some of the efforts that are being made to satisfy the objectives of market led extension. Now looking at a brief information regarding the agricultural markets in India. So there are 6261 wholesale markets and 20,870 rural primary markets, in total we have 27131 markets available in India for sale of the agricultural produce. The problems that the farming community is facing related to the marketing include. That can be broadly divided into three broader headings like production related, marketing related and extension related.

The first and foremost problem related to the production is the seasonality of agricultural production, supply not uniform throughout the year. So that is because of the crop. Because the crop is a living system, biological system. It has its own specific season to be produced in which and the it is available in that particular season only. Unless the industrial products which are season neutral, agricultural products cannot be. Even then there are efforts that are going on to make the crops photo insensitive, so that the same crop can be grown in every season, and it is available in the market as per the demands in the market. That is the issue of research. But as on date this is the issue. Perishability of the produce. Unlike industrial products, majority of the agricultural produce, specially the fruits and vegetables are highly perishable in nature. So they have a definite life span. If it is not sold within that particular period, it is not going to fetch any price in the market. And this is what is the weak point that is being exploited by the traders at different levels. And ultimately they are exploiting the farmers also, because of which they are not realizing the remunerative prices in the market.

Bulkiness of the production because of which the transportation is coming into the picture. So for a small handset of a mobile, we are paying about 15000, it takes a very less amount of space. But to fetch the same 15000 farmer has to transport tons of tomatoes. You see the bulkiness of the produce. Tons of other vegetables, you see the bulkiness of the produce. And then he may or may not get the price for that. So that is what is the difference between the industrial produce and the agricultural produce.

Then the problems related to the market. Non-availability of market intelligence. The information technology tools and techniques applicable to marketing system are still emerging. Efforts are going on, experimentations are going on. Largely we don’t have that appropriate market intelligence system. Even though the efforts are going on in this direction. May be in due course of time we will come out with those solutions. Then existence of many middlemen, who are creating good number of issues associated with the marketing of agricultural produce. They are not allowing the farmers directly to enter into the market and sell it, because that was the traditional system, that has been, is being followed over a period of time. But it takes its own time to come out of that system. But this is another important issue related to the market.

Then inferior quality of the produce. So farmer himself is not much aware of the quality aspects. So wherein the educational efforts are essential, now the extension is concentrating on that. But right now that is another issue associated with the marketing. Then coming to the problems related to the extension. The first and foremost one is, the lack of communication skills. This has been emphasized in outcome of evaluation of various projects that we have discussed so far. The extension professionals are loaded with the technological aspects. But they are lacking the extension skills, under which communication skill is one of the important one which needs to be enhanced. Then lack of credibility of extension professionals, because largely the extension services are being provided by the public extension system, wherein there is lack of commitment which has been observed over a period of time. And because of that the extension system is not having much credibility.

Then insufficient information related to the market as per the available information. So except few experiments involving the web based applications in supplying the information related to market, majority of the extension efforts are not at all concentrating on the marketing of the produce. And that is how, and there are a series of such problems associated with the extension services also. So these are the problems that are related to the market led extension. But over a period of time how can we overcome these things, so that’s what is the major issue. Now let us understand the paradigm shift from the production led extension to the market led extension. How it is different from the production led extension? What we are emphasizing on the market led extension.

Coming to the purpose. What is the purpose? In case of production led extension, it is the transfer of production technologies. We are transferring the technology to the farmer and our job is over. But in case of market led extension it is enabling the farmers to get optimum returns out of the enterprise. What is that enterprise? Crop husbandry. So in the production led extension we transfer the technology and the job of extension is over. But in case of market led extension, they are supporting the system, till they get the remunerative price. What are the expected results? In case of production led extension it is the delivery of message. Adoption of the package of practices by most of the farmers. It is up to that level only the production led extension system is limited. But in case of market led extension, they are going to ensure higher returns for the farmers. And that is what is the priority of the Government of India. They have also set the target that by 2022, the farmer’s income should be doubled by adopting various ways and means.

Farmers are seen as, in case of production led extension, it is only the progressive farmer or a high level producer. But in case of market led extension, we are going to observe farmer as a businessman or the agripreneur, rather than only the progressive farmer. The moment we say that he is a businessman, so he is analyzing his own risks. And he is adopting the technologies for higher production as well as its efficient marketing and ultimately to get the better prices, and that is where he is doing the business. The focus in case of the production led extension is seed to seed and achieving the higher yield levels. But in case of market led extension, the emphasis is on rupee to rupee. What is your investment and what is your output. And what is your cost-benefit ratio. Whether it is more than 1 and to what extent that we can think of. And if it is less than 1 it is not at all remunerative, which is not at all concern in case of production led extension.

The as far as the technology is considered in case of production led extension. The fixed package recommended for the agro-climatic zone is being transferred to the farmers. While in case of market led extension, the diverse baskets of package of practices, suitable to local situations of the farming systems are provided to the farmers.

Then coming to the extension interactions is by providing the message, training, motivating and recommendations in case of production led extension. While in case of market led extension, we are going to involve them as an active participant for joint analyses of the issues and varied choices for adoption and consultancy. Coming to the linkages, so in case of production led extension. It is research extension and then the role of the farmer comes into the picture. But in case of market led extension, it is the research- extension-farmer extended by the market linkages. It not stops with the farmer. So we are going beyond the farmer for providing the market linkages also in case of market led extension. The role of extension is limited to the mode of delivery and providing feedback to the research system. But in case of market led extension establishment of marketing and agro-processing linkages, between the farmer and the markets as well as the processors. So that he ultimately he realizes the best possible output, price and everything in case of market led extension.

The maintenance of the records in case of production led extension. Farmers are not having the habit of maintaining the records. While in case of market led extension, it is highly emphasized upon maintenance of the records. So that farmer should see his production activity as an enterprise. And he is forced to understand the cost-benefit ratio, and the profit that is being generated out of this enterprise. That’s what is the priority that is given in case of market led extension.

Coming to the support of the information technology. It is emphasis is on the production technology in case of production led extension. But in case of market led extension it is the market intelligence, wherein information from various corners are gathered. So what exactly is the price of a commodity, in which market and how it is behaving over a period of time. All these things are being analyzed as a part of market intelligence, and it is provided to the farmers. So these are the major differences between the production led extension and the market led extension.

Coming to the challenges before the market led extension. The rapid changes in the information technology and the need for collection of the relevant information is one of the important challenge. The behavior of a particular agricultural produce in a particular market and its behavior over the season as well as the entire financial year. It is very difficult to analyze and understand and to convince it to the farmers, so that he can come out with some other products as well as services in the coming season. So this is the biggest challenge. We need to understand and we need to behave accordingly and we need to develop the strategies accordingly.

Then the generation of data on market intelligence is another important task. There are good number of issues associated with development of the market intelligence issues. Because if you don’t have appropriate information regarding the behavior of price of a particular commodity on the market. You cannot have the appropriate market intelligence. Without that input, so what is that you are going to process. So that is what is the basic issue here. Then reorganization of extension system is one of the major challenge, suitable to the market led extension. And the strong communication skills with credibility of extension professionals is another challenge, which is being faced by the market led extension.

To conclude we can say that the focus of extension functionaries need to be extended beyond production. That is what is the major focus, the market led extension is emphasizing on. And farmer should be sensitized on various aspects of quality, consumer’s preference, market intelligence, processing and value addition and other marketing information. So while producing the agricultural product for the benefit of his end-users or the consumers. The consumer preference should also be taken into account by the farmer. That is what is being emphasized in case of market led extension. So put together, satisfying the needs of the consumers as well as the market is of the primary importance in case of market led extension. The efforts in this direction are being carried out by the extension professionals to see that market led extension carries the weight in due course of time.

With this we are coming to the close of today’s discussion. And in the next class we will be discussing about the Farmer Field School.

Thank You.