Existing Schemes & Programs

Need for Training

  • To create awareness about the project.
  • To make understand project importance.
  • To help the Small and Marginal farmers .
  • To make farmer to get right price for his produce.
  • To understand importance of Marketing Activity.
  • To understand the need for PC at the Village level.
  • To understand the difference b/w Direct Marketing and MSP.
  • To upgrade the negotiation skills  of VOs/SRPs.
  • To improve the social and economic status of households.
  • To improve bargaining power and marketing skills.
  • To develop Communication skills.
  • Proper maintenance of commercial book keeping
  • Preparing for handling huge transactions  professionally.


  • Small fragmented holdings
  • Lack of initial investment—–Loans at high interest
  • Poor quality inputs/seeds
  • Not applying fertilizers /manures/pesticides in time
  • Delayed harvest, poor post harvest seasonal dependence
  • Poor per hect yield
  • Poor bargaining power, weak market intelligence
  • Tied up sales at low prices
  • Distress sale at harvest
  • Inability to hold produce for economic and infrastructure reasons
  • Selling every thing at wholesale rates and buying every thing in retail
  • Exploitation by commission agents/middlemen

No money for next season

Problems of the poor Producers

  • Low Price
  • Delayed Payment
  • Exploitation in Weighment
  • Traders malpractices
  • More expenditure on Transportation
  • No knowledge on Markets – Buyers
  • No Market Intelligence
  • Lack of Physical Infrastructure at Production centres including proper warehouses.
  • Dependency on traders for cash and kind loans.


Problems of Poor

  • Less Income
  • Low production
  • High expenditure
  • Risk

IKP Focus…

  • Increase income
  • Reduce expenditure
  • Increase wage days
  • Decrease Risk

Fixation of MSP

  • MSP is fixed by CACP (Commission of Agricultural costs and prices) every year
  • Important factors;
  • Cost of production
  • Changes in input prices
  • Input /out put price parity
  • Trends in market prices
  • Demand –Supply situation
  • Inter crop price seniority
  • Effect on industrial cost structure
  • Effect On General Price Level
  • Effect on cost of living
  • International market price situation
  • Of all the above factors, cost of production is the most important factor and it takes all operational and fixed demands/expenditure


Need for VOs Intervention in Marketing

  • To enable the rural poor to obtain the best price for their produce.
  • To reduce the malpractice in weighment and price reduction by traders.
  • To minimize the cost of inputs to the rural poor farmers.
  • To create the Marketing Facility at their door steps.
  • To provide assistance & build awareness to CBOs (VO/Ms) in developing micro enterprises.
  • To provide training & information on Markets
  • To reduce the hassles of the farmers by local trader.
  • To improve social and economic life of the Farmer and Household.
  • To train the farmer on quality aspects and grading.


Each family in the state should be out of poverty and 


  • Life with dignity
  • Equity within the family
  • Freedom from hunger
  • Decent Income: >Rs.5000 per month, 3 – 4 sources (agriculture, allied, non-farm, jobs in urban areas, etc)
  • Planned household expenditure
  • Risks managed – life, health, assets and incomes
  • Ø Shelter, education, and, health

Market Functions

  • Buying-quality, farmer certification,grading,processing
  • Weighment
  • Storing
  • Transporting, loading
  •  Financial aspects
  • Risk bearing


  • FCI
  • Marketing dept
  • Metrology
  • P.C members
  • Hamalies
  • Graders
  • Transporters
  • Advisory committee
  • Bankers
  • Rice mills/godowns
  • Revenue dept
  • Transport dept
  • Police dept

Types of Marketing costs

  • Packaging-cost of gunnies ,sutli,colors
  • Transport
  • Handling charges-filling into bags,weighment,netting,loading
  • Weighment losses;
  • Spillage-using old bags with wholes or failing to close the bags properly
  • Theft at center or during transportation
  • Moisture loss-purchase soon after harvest

purchase with high moisture with out testing

Cleaning ;If not properly cleaned Mills will deduct certain weight from gross weight

Damage in storage –if tarpaulins are not covered


from ground water & rain water

Insects and rodents

Excessive heat

Capital costs-

Other costs-misc-individually they may be smaller but  all added they can be significant


Estimated Investment/Expenditure

  • Godown rent
  • Opening charges
  • Transportation of equipment from MS/Market
  • Electricity charges
  • Water charges
  • Stationery charges
  • PC members wages
  • Book keeper wages
  • Watchman wages
  • Telephone charges
  • Bank deductions
  • Travel expenses

Misc charges

Rural godowns-Storage

  • Selection of site-Raised well drained site, easily accessable,protected from excessive moisture, excessive heat,insects,rodents
  • Selection of storage storage structure –sufficient space based on qty and proper aeration between two stocks
  • Drying and cleaning
  • Separate storage for old and new gunnies
  • Gunny bags should be kept on wooden crates or bamboo mats along with a cover of polythene sheet to avoid absorption of moisture from the floor
  • Regular inspection of stocks