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Dec-2011/ Volume-1/Issue-5/Article No-14/229-240 ISSN: 2249-7196

*Corresponding Author www.ijmrr.com 229

INTERNATIONAL JOURNAL OF MANAGEMENT RESEARCH

AND REVIEW

FARMERS PREFERENCE AND PARTICIPATION IN VEGETABLE TRADE IN

PRIVATE WHOLESALE MARKET AT NASHIK

Sumit Chopade1, Ruchira Shukla*

2

1Student, ASPEE Institute of Agribusiness Management, Navsari Agricultural

UniversityNavsari, Gujarat-396450

2Associate

Professor, ASPEE Institute of Agribusiness Management, Navsari Agricultural

UniversityNavsari, Gujarat-396450

ABSTRACT

Terminal Markets (wholesale markets) will be established in a Public Private Partnership

(PPP) mode. The markets are linked to a number of collection centres and provide state-of-

the-art facilities for grading, transportation, storage, domestic marketing and exports

.Terminal Market concept has been conceptualized to give more remunerative returns to the

farmers from NHM by reducing post harvest losses of the fruits and vegetables of the farmers

and reducing the middlemen. Terminal Markets will be established in the big cities and these

markets will be linked to the production areas by means of collection centres. The terminal

market would operate on a Hub-and-Spoke Format wherein the Terminal Market (the hub)

would be linked to a number of Collection Centres (CC) (the spokes). The perishable

horticultural produce will be cleaned at the collection centres and by removing the waste at

the Collection centres it will be transported to the terminal markets. Terminal Markets and

the Collection centres will be connected by means of reefer vans thereby reducing post

harvest losses. It is proposed that horticultural produce arriving in the terminal market will be

graded and by pre-cooling, it will be stored in the cold storage. The produce in the terminal

market will be auctioned by way of electronic auction system. Export of horticultural produce

is also expected from the terminal market. It is proposed to establish modern marketing

infrastructures like electronic auctioning facility, pre-cooling, cold storage, ripening

chambers, grading packaging facilities, processing units and other allied infrastructures like

banks, post office etc.

Keywords: Market operations, Vegetables, farmers, Tomato and Onion.

INTRODUCTION

A private company has initiated the market operations at Nashik, Maharashtra from January

2009 & have been successfully able to attain around 25,000 MT’s of commodities including

Pomegranate, Grapes, and Tomato. In addition pilot testing of Vegetables was carried out in

Nov 2009 especially for Cole crops like Cabbage & Cauliflower. With these successes the

market has recently started Vegetable trade in its premises. In the previous commodities the

unique strength of the company in this business has been extensive backward linkages it has

established with the farmers with its rigorous exercise extended by the Promotional teams


Copyright © 2011 Published by IJMRR. All rights reserved 230

both through Village Promotions & Toll gates vehicle diversion. In the context of opening

new Vegetable trade in the private market, it has been a necessity to understand the needs of

the Farming community , understand their priorities & preferences & in turn to draw their

acceptance to newly established Private Market.

In the past the focus of Private Market at Nashik has been on a single commodity basis i.e.

Grapes, Pomegranate & Tomato. But with the inception of Vegetable market which

comprises up of a basket of vegetable commodities which requires pooling up of variety of

produce from various farm gates in order to ensure continuous supply of vegetable produce in

order to fulfill the requirements of the Traders demand.

A.P.M.C market at Nasik, nearby markets at Ozhar & Pimpalgaon which are the main

competitor for Private Market taking a considerable share of the Produce. It is therefore

necessary to convince the farmers to try and adapt to the opportunities at the newly

operational Private Vegetable Market. The above mentioned factors throw a major Challenge

to Private Market to successfully Publicize, Promote & create awareness amongst the farming

community. Keeping all these issues in mind , a study was conducted at the premium market

with the following objectives:

OBJECTIVES

1) To study the preference of markets by vegetable farmers in Nashik district and the

constraints faced by farmers in their respective selling markets.

2) To study the awareness and farmer’s perception regarding the private wholesale market.

3) To identify the important factors influencing farmers participation and the farmers

expectations regarding private wholesale market .

METHODOLOGY

To fulfill the aforementioned objectives of the study following methodology were adopted.

For the purpose of the study, Primary data was collected through personal interviews of the

Focus Group i.e. Vegetable Farmers & Farmer Groups. Secondary data was collected from

Internet, Journals, magazines & books. Judgmental sampling was carried out the study for the

identification & short listing of the Villages. Snow Ball Sampling was used for the selection

of Farmers in the Villages. 350 Farmers were surveyed from three Taluka namely Nasik,

Niphad & Dindori for the fulfillment of objective no. 1. Total 35 Villages in the three

Talukas were selected for the survey (10 Farmers per Village X 35 Villages = 350

Farmers).Another 50 Farmers were surveyed from Private Vegetable Market for the

fulfillment of objective No.2 and 3. Questionnaire with both open and close ended questions

was used as a survey tool for conducting the interviews.

RESULTS AND DISCUSSION

Cropping Pattern Of Surveyed Vegetable Farmers



The cropping pattern of the Vegetable farmers reveals that out of total 350 potential vegetable

farmers surveyed, 28% of the Area is under Cole crops namely Cabbage and cauliflower &

Carrot, 26% is by Tomato, then 17% by Cucurbits including all Gourds, 11% by the leafy

vegetables, and remaining 19% is by the other vegetables.

Preferred Selling Market

In the Nashik region there are three main APMC’s where farmers generally carry their

vegetable produce namely Nashik APMC which is the main market for vegetable and is

operational round the clock and has highest arrivals in all categories of vegetables, similarly

Ozhar APMC which is a sub yard of Pimpalgaon APMC handles considerable amount of

vegetables usually in lower volumes and Pimpalgaon APMC which is the main Market for

Tomato and Onion.



The above mentioned graph illustrates that out of the total surveyed 350 vegetable farmers, it

was found that 82% carry their vegetable produce to Nashik APMC which is the most

preferred Market among vegetable farmers because of well developed Buyer profile in the

market and more No. of Traders & Commission agents, 8% carry their produce to

Pimpalgaon APMC they are mostly Tomato and Onion farmers as only these commodities

are traded at this Market, 8% carry their produce to other markets and 2% carry there produce

to Ozhar APMC ,as this Market has arrivals in lower quantity & few no of traders available

for buying the produce.

Other Preferred Selling Market

Leaving apart the APMC’s of the Nashik, Ozhar and Pimpalgaon there are some other market

preferred by the farmer for the vegetable trade and have the considerable 8% preference

share. The other preferred market are as follows:

• Surat APMC (34%) has the largest share. Some farmers send their produce directly to the

Surat or Mumbai market themselves or in organized farmer groups.

• Some of the private traders especially in the Tomato procure the produce directly from

the farmer based on their relationship out side the APMC`s most preferably in important

junctions of the villages. These private traders have the 24% share .

• Private market at Nasik is preferred market for the 21% respondent out of the Other

Preferred markets.

• Reliance (9%) is also a preferred buyer by the farmers for the sale of the vegetables at

Reliance Fresh. They have their Procurement unit in the Chitegaon Phata in Niphad

Taluka.



Frequency of Visit to Market

Among the Farmers who visit the market themselves for the sale of the produce, Large

Number of Farmers (56%) of them Visit to the Market Twice in a Week (56.57%) followed

by the (40.57%) of the Farmer visit to market on a daily basis. Very Few Farmers Visit to the

market once in a Week (1.71) or Thrice in a week (1.14).

The frequency of market visit by a vegetable farmer depends upon the following factors like:

• Nature of vegetable Commodity Grown: Farmers Growing Cabbage, Cauliflower & leafy

Vegetables visit market daily. Farmers Growing Green Vegetables like Gourds, capsicum,

Pikador & other green vegetables visit the market twice a week. Leafy Vegetables Carried to

market everyday during days of High auction rates, But in cases of low auction rates farmers

prefer to carry on alternate days.

• Proximity of the Market

• Availability of Labors

• Transport facilities in comparison with other farmers.

5. Satisfaction with respect to Preferred Market



An attempt was made to find constraints of the vegetable farmers visiting their respective

preferred markets ,and in turn to get over those lacuna filled by provision of such missing

facilities in Private Market,350 farmers were surveyed in order to find out their real

aspirations, constraints, limitations.

Out of the total respondents most (68%) are satisfied with their preferred market. Remaining

32% of the respondents were unsatisfied with their preferred Market because of the various

reasons .These 32% of the Farmers who are Unsatisfied with their respective preferred

market which are an indication to Private Market to provide such missing facilities to these

unsatisfied farmers in Private Market in order to tap them..

Farmers satisfied with the preferred market

Out of 65% of the satisfied farmers who are satisfied with their respective preferred markets,

many farmers have indicated more than one factor to indicate multiple factors of

satisfaction towards their respective preferred market.

95% of the satisfied Farmers Surveyed has indicated that proximity to the market is a core

factor for their preference of the market. 71% of the farmers are Happy with the Price

Discovery through auction prices from the preferred market, which is in turn dependent upon

No. of Traders & competition in the market.37% farmers like Number of the traders in the

preferred market. 27% Farmers have the relationship with the Commission agents & Trader;

henceforth they prefer to visit the corresponding market.

Farmers Unsatisfied With Preferred Market.

Out of 32% of farmer who are unsatisfied with their respective preferred markets, 89%

farmers are getting poor services and 88% of farmers are facing less transparency,54% of the



respondents are not getting payment as per the schedule and 4% respondent facing improper

grievances handling. These above mentioned Factors if improvised by Premium Market can

create an opportunity for a new farmer base and can improve the arrivals.

Awareness regarding private market

Awareness regarding Private Market

62%

38%Yes

No

The above exhibit illustrates that the awareness among the respondents towards Private

Markets functioning, it was found that 62% of them were aware about existence of Private

Market and 38% were unaware about Private Market .

Some of aware farmers are not aware of the exact name of the market. But they know the

location and activities of the Vegetable Trade or activities of tomato and pomegranate trading

in the past season.Most of the Farmers know this Market by the name of Premier

Market(Marathi), Adgaon Market, Patra Market, Private Market/Khazgi Bazaar(in Marathi),

New Market/Navin Market(in Marathi) and Dalimb Market (in Marathi meaning

Pomegranate Market).

Awareness regarding Vegetable Trade in Private Market

Awareness regarding Vegetable

Trade in Private Market

43%

57%

Yes

No

The graph above illustrates that the awareness among the respondents about the Vegetable

Trade in Private Market. It was found that 43% of them were aware about the Vegetable

Trade in Private Market. Remaining 57% were unaware about it. Few farmers were aware

about the vegetable trade in private market but they were confused whether it is private or

public market, some people also have confusion if it was a sub yard of Nasik A.P.M.C.



Medium used to gain Agri related information

The above exhibit illustrates that the medium used by the respondents to gain Agri related

information, the respondents use more than one medium to gain the information. 99% of the

farmers have access to Newspaper for Agri related information followed by 98% each by

Television and Input dealers.The next preferred medium for Agri related information is 97%

by adjoining farmers similarly with other medium but least access is through Mobile SMS as

this service is offered by limited number of service providers. Even though very few farmers

access Agri related information through Mobile SMS, Yet most of them have indicated that

they would be interested to have Free SMS facility on Updates of Market Rates.

Private Market has a good opportunity to Prioritize the Promotional media in accordance with

the preferences of the farming community to provide Agri related information especially

market related information .

Source of Information on Vegetable Trade in Private Market

Source of Information on Vegetable

Trade in Private Market

10%

70%

2%2%

16%

Village Promotions Word of Mouth Telephonic calls

Tol l Gate Promotion Highway Visibili ty

Out of the 50 Farmers surveyed for the source of information on the Vegetable Trade in

Private Market, majority of them nearly 70% of them said the source of information was from

Word of Mouth of the vegetable trade, the other ancillary reason for the word of mouth is an

cumulative effect of the Village promotions performed by the Promotion team of Private

market.



As the market is visible from the National highway No.2 it converts around 16% of the

farmer’s towards Private Market. About 10% respondents are diverted towards the market

due to the Promotion carried out by the promotion team in the villages. 2% farmers are aware

of the Private Market through the telephonic calls . Promotional team of the market call to

these vegetable farmers and a comprehensive database is prepared .Remaining 2% are aware

by the toll gate promotion.

Visit to Private market in the last season

Visit to Private Market in Past

Season

4%

96%

Yes No

In the last season the trading activity of the pomegranate, grape berries & tomato were carried

out in Private Market.Out of the total 50 respondent 96% of the farmers hadn’t brought their

produce to the market, because of the following below mentioned reasons:

� Majority of Grape Berry & Tomato sold to Traders in local Trader settlements

� Very few Vegetable farmers in the area grow Pomegranate.

Remaining 4% are the regular farmers who visited Private Market in the last season who

carried Tomato & Grape Berry. It shows that most of the farmers are new from this season in

Private market for the vegetable trading.

Ranking of Private Market on various parameters

Private Market (Ranking)

Parameters Rank average Rank

Proximity 2.1 1

Short Auction Time 3.08 3

Immediate cash payment 3.68 4

Low Congestion 2.14 2

Fast Unloading 4 5



• On Proximity parameter, Farmers ranked it 1st as the Location of Private Market is

accessible to the Major Production belts of Niphad & Dindori.

• Low congestion was Ranked 2nd as Private Market location has a wide circulatory area,

and being new it incorporates easy movement of the Produce & sale.

• Short Auction time was ranked 3rd as the time taken for auction at Private Market is hardly

3 Hours from the time the farmer carries the produce to the market.

• Immediate Cash payment was ranked 4th as the Farmers get their cash paid on a daily

basis.

• Fast unloading is also an activity where majority of farmers say there should be an

improvement in Unloading activity as soon as the auction is finished.

Interested in Opportunities at Private Market

2%

34%

12%

52%

Farmers groups Extension

services

Promotional

offers/schemes

Information on

Auction Prices

Interested in Oppurtunities at Private Market

In terms of provision of soft services on the backward end to the farmers, it was tried to

investigate the kind of the opportunities the farmers would be interested which create the

win-win situation among farmer and market. So the suggestions were taken from the

respondent farmers:

Majority are of the farmers (52%) said they would like to get information on auction prices

of the commodities from the different market by various mediums such as Mobile SMS,

News Paper. Call Center etc. 34% of the remaining farmers like to get Extension Services-

information about the new farming practices, to increase the quality and production of the

produce. 12% farmers interested in the promotional offers and schemes such as higher arrival

of the day or of the week. And remaining very few farmers nearly 2% of the farmers are

interested in the farmer groups.

Suggestions for Improvement in Private Market

57%

26%

13%4%

Increase

Traders

Standardize

Auction

Timing

Increase

Vegetable

Basket

Increase

Labours

Suggestions for Improvement in

Private Market



In order to provide the better facilities to the farmers, the suggestions were taken from the

regular farmers who have been visiting Private Market on a regular basis to improvise it .

More than half (57%) have mentioned that there are very less trader in the private market. So

there is not the healthy competition between the traders and they are not getting the

maximum prices. So the market should make efforts to increase trader participation .Nearly

26% of the farmers are feeling that the auction timing is not opportune & feel that the

Auction time should be standardized. Nearly 13% of the Farmers requested for increasing

Vegetable Basket to Cole Crops & Leafy vegetables.

Expectations from Private Market regarding infrastructural facilities

The farmers have put upon their expectations starting from Input Shop to food court to cold

storage to Grading Facility to Farmers Rest House .10% of the Farmers had no expectations,

they have responded that it doesn’t matter to them with modern infrastructure & facilities.

67%

4%

13%

4% 7%2% 2%

Input Shop Price

Information

Display

Food CourtCold StorageGrading

Facil ity

Farmer Rest

House

Premium

Krishi

Manch

Expectations from Private Market

Among the 90% of the farmers who have shown willingness to Modern infrastructure &

facilities provided by Private Market the following are their expectations mentioned below:

• Majority of the Farmers around 67% of the farmers have opted for Input Shop as 1st

Expectation in Private Market.

• Followed by Food court as 2nd expectation by 13% of farmers and Grading Facility for

Tomato as 3rd expectation by 7% of farmers.

• So in Total 87% of the Farmers are have the following three expectations:

1. Input Shop

2. Food Court

3. Grading Facility

CONCLUSION

The arrivals in private markets depend upon two Factors: Bringing new vegetable Farmers

who carry their produce into Private Market and retention of regularly visiting Vegetable

Farmers to the Private Market. It is to be noted here that Farmers retention is a major issue as

they are critical in spreading Word of Mouth of the experiences gained through sale of

produce at Private Market. Also Based on the survey , Most of the farmers have got the

information of vegetable trade in Private Market through Word of Mouth, Hence giving a

right experience to the farmer is a must in the starting stages of a farmer visit. Giving farmers

access to better infrastructural facilities, better prices, enhancing trader participation,



including the trade of other vegetables and fruits and good promotion will help attract more

number of farmers and increase their participation.

REFERENCES

Anonymous (2011), Prospects of private wholesale markets – Case of Premium market

Nasik, CommodityIndia.com.

Edward Seidler (2001), Wholesale Market Development – FAO’s Experience,Paper prepared

for the 22nd Congress of the World Union of Wholesale Markets,Durban, South Africa

http://www.aimaind.org/ejournal/articlesPDF/6GirishTaneja122020071866552.pdf

Michael Warner, David Kahan and Szilvia Lehel(2008 ), Market-oriented agricultural

infrastructure: appraisal of public-private partnerships, Food and Agriculture Organization of

the United Nations ,Rome.

Patel Amit *,Sharma* Mahendra, Pandya Maurvi ,Public Private Partnership (PPP) Approach

–for sustainable development of APMCs in Gujarat, Conference on Global Competition and

Competitiveness of Indian Corporate, dspace.iimk.ac.in/bitstream/2259/435/1/21-28+.pdf

Steven M.Jaffee, (1992) How Private enterprise organised agricultural markets in

Kenya,Policy research Working paper on Agricultural policy by World bank

Steve Reiquam(2008) The Private Sector and Smallholder Agriculture:Best Practices with

Relevance to Mali, Zambia, India and Sri Lanka

http://www.worldaginfo.org/files/Agpedia.pdf

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