The under-utilisation of potential of the country’s agriculture lies in the fact that in India there is dire need of services that are essential for development. A single factor cannot be held responsible for absence of facilities but lack of innovations in marketing practices has been a major curse till recent past. In India, institutional innovations have emerged recently to overcome the issues which farmers face. These innovative organisations/ practices can provide growers an array of services including better management of their produce, better market access, negotiating power, access to information and knowledge.
It is imperative to recognise the critical role of these innovative organisations/practices to be more effective in supporting farmers to uplift their socio-economic status. Institutional innovation has a deeper and fundamental meaning which defines the rationale for the existence of such bodies in developing an environment, which is more democratic. Such innovation should not only be a supportive mechanism for the stakeholders but also a model that can be replicated.
There is a need to bring institutional innovations in APMC by redefining the roles of stakeholder, using information technology, dismantling the present trade-offs and expanding the approach of APMC to that of being service organisation to make them economically viable for farmers. There is also a necessity to make the agricultural markets environmentally sustainable by making them responsive toward the recycling of waste, maintaining the energy of ecosystem of market.
Though the APMCs in the country are being criticised and are facing bleak future, the APMC at Vadodara has established itself as a centre of excellence in catering to the need of farmers by promoting three market yards – Sayajipura, Hathikhana and Kewdabaug. Hathikhana market of the APMC is the oldest established in 1958 while Sayajipura is the latest.
Sayajipura market yard has been developed on 30 acres consisting of 259 shops-cum-godown of grains, vegetables and pulses. The auction takes place in a covered place. All the vegetables that enter the market are packed in different sizes and packing material. The market is well-equipped with a cold storage of 3,750 tonnes which has been beneficial to famers and traders in enabling them to store their produce in the market itself.
Other features of the yard are wide approach road, private telephone exchange, 100-tonne ripening chamber for banana, mango and papaya, organic waste converter, an information system to address issues relating to farmers and soil health laboratory.
The integrated model of APMC Sayajipura with all basic infrastructure as well as modern concepts in agriculture marketing attracted peak arrival of fruits mainly banana, papaya and mango. The ripening chamber of 100-tonne capacity has been optimally utilised by traders for ripening banana and papaya. The post-harvest facilities such as cold storage and ripening chambers for perishable horticulture produce serve as an effective tool for getting better return for the produce and also help in avoiding wastage at markets. The APMC has the right focus in explaining the concept of environmental sustainability of a market yard.
Prior to establishment of Sayajipura market, the yearly average income of APMC Vadodara was limited to ₹149 lakh, while the same was worked out to ₹493 lakh in post-establishment period of Sayajipura market. During 2011, when the cold storage facility was started, arrivals grew by 12 per cent compared with previous year. Against this during the same year, the arrival has halved in Hathikhana market yard. Similarly during 2012, the Sayajipura market yard started facility of ripening chamber. The market again witnessed a growth of 11 per cent whereas the pace of growth in Hathikhana market yard was 8 per cent only.
Currently, study indicates that with establishment of modern infrastructure, the income and arrival of the APMC Vadodara has increased manifold. The modern infrastructure helped in attracting regular flow of produce and thus reduced variability both in prices and arrival. It is recommended that based on the produce pattern in the market area of APMC, the modern infrastructure should be promoted at yard level so that produce flows are regular in the yard and markets are more stabilised.
Authors are associated with National Institute of Agricultural Marketing, Jaipur. Views are personal.