tag:blogger.com,1999:blog-11345622747501136402024-03-05T04:48:44.966-08:00Agricultural Enthusiast and EconomistFood Security, Climate Change, Rural Development, Marketing, Supply Chain Management, Water Management and GenNext FarmingUnknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1134562274750113640.post-9495822216629114772015-09-16T16:24:00.002-07:002015-09-16T16:24:12.753-07:00Exercise No 3 Notes<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Exercise No. 3 Price Spread and Market Efficiency</span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"><br /></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Price Spread <o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> <o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Price spread is the difference
between the price paid by the ultimate consumer and that received by the producer
per unit of the commodity. <o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Market
Efficiency <o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> It is the ratio of total value of
goods marketed to the marketing cost.<o:p></o:p></span></div>
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<br /></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">ME = CP / ∑ (MC + MM)<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> where,
CP is the consumer’s purchase price, MC is the market cost and MM is the
marketing margins.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> This
is also called as Shepherd’s Index.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Model
Problem<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Marketing costs, margins and price
spread for tomato (</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Rs. / q)<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Sl. No.<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Particulars<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Channel I<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Channel II<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Channel
III<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Farmer<o:p></o:p></span></b></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">1<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Net price received by producer<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">426<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">607<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">679<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Village trader<o:p></o:p></span></b></div>
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<br /></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">2<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Price paid by village trader<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">426<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">3<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Marketing cost<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">37<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">4<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Profit margin<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">228<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">5<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Marketing margin<o:p></o:p></span></div>
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<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">265<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Wholesaler - cum - commission agent<o:p></o:p></span></b></div>
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<br /></div>
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<br /></div>
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<br /></div>
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<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">6<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Price paid by Wholesaler<o:p></o:p></span></div>
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<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">691<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">607<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">7<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Marketing cost<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">13<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">13<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">8<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Profit margin<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">265<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">301<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">9<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Marketing margin<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">278<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">314<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td colspan="2" style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 50.16%;" valign="top" width="50%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Retailer<o:p></o:p></span></b></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">10<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Price paid by Retailer<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">819<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">819<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">11<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Marketing cost<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">22<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">22<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">12<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Profit margin<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">271<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">271<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">13<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Marketing margin<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">294<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">294<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td colspan="2" style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 50.16%;" valign="top" width="50%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Consumer<o:p></o:p></span></b></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">14<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Price paid by consumer<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">1113<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">1113<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">679<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">15<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Producer’s share (%)<o:p></o:p></span></b></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">38<o:p></o:p></span></b></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">55<o:p></o:p></span></b></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">16<o:p></o:p></span></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Price spread <o:p></o:p></span></b></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">687<o:p></o:p></span></b></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">456<o:p></o:p></span></b></div>
</td>
<td style="border: none; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 10.36%;" valign="top" width="10%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">17<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 39.8%;" valign="top" width="39%">
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">Shepherd’s Index<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 15.44%;" valign="top" width="15%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">1.22<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 16.6%;" valign="top" width="16%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">1.73<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 17.78%;" valign="top" width="17%">
<div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "ヒラギノ角ゴ Pro W3";">-<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Solution:<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">(i)
Producer’s share = (Net price received by producer / Price paid by consumer)
*100<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> = ( 426 /
1113) *100 = 38 %<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">(ii)
Price Spread = Price paid by consumer - Net price received
by producer <o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> = 1113 - 426 = Rs. 687.<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">(iii)
Shepherd’s Index = CP / ∑ (MC + MM)<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> = 1113 /
(909) = 1.22<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Inference<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">The
price spread was very high at Rs. 686 / q (62 per cent) in Channel I and Rs.
456 / q (46 per cent) in Channel II. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The
Shepherd’s Index of
market efficiency was very
low for the tomato crop in Channel I (1.22) and low
in Channel II (1.73).<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Since Channel III involves direct
marketing by the farmers, there will be none of the market intermediaries
involved. Thereby, there will be no need for working out price spread or market
efficiency. But both the farmer and the consumer are benefitted here, as the
farmer is able to realize a better price for his produce and the consumer is
getting the vegetable at a comparatively low price.<o:p></o:p></span></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1134562274750113640.post-71247316422283878412015-09-16T16:08:00.002-07:002015-09-16T16:22:42.048-07:00Exercise No. 2 Notes<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Exercise No. 2 A Study of Input Marketing: Seeds</span></b><br />
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"><br /></span></b>
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Input
Marketing: An Introduction <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> In
the Indian marketing literature a dominant theme is agricultural marketing,
focusing mainly on the marketing of agricultural produce and that of agricultural
inputs. Agri-marketing has two aspects: (1) Input market, and (2) Output
marketing. For producing agricultural products, a large number of inputs are
needed. These include seeds, fertilizers, pesticides, agricultural implements
(tractors, pumpsets, etc.), cattlefeed, poultry feed, etc. Input marketing also
includes marketing of services such as diesel engine, repair, health care services.
These agricultural inputs are going to be the focus of this chapter. On the
other hand, output marketing includes marketing of food grains, vegetables,
milk, etc. Output marketing is an aspect of agricultural marketing. A timely
and adequate supply at fair prices of farm inputs - seeds, chemical
fertilizers, plant protection chemicals, farm equipment and machinery, labour,
electricity, diesel oil and credit help in the production of output. The
importance of purchased farm inputs has significantly increased in the recent
past with the technological break-through in Indian Agriculture.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Importance
of Farm Inputs<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Agricultural
inputs are at the heart of rural marketing and rural development. They support
farm production which is the source of income to a large rural population and
help create market for other consumable and durable products in rural areas.
Being industry processed, manufactured, packaged and branded products, they are
vehicles of modernization and rural development. But they differ in their
market as they have a derived demand, are less frequently brought, and are
expensive.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Why agri-inputs are of derived demand
in nature and stature?<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Unlike
consumer products, agricultural inputs are ‘derived demand products’. The
inputs are demanded not individually but a package because one input decides
the need for other inputs. Thus their demand complements each other. For
example, a local or hybrid seed will determine whether to use a fertilizer or a
pesticide, in the required quantity and quality. Further, the demand for inputs
are dependent upon: (<i>i</i>) weather in a season; (<i>ii</i>) cropping
pattern changes; (<i>iii</i>) nature and health of the crop; and (<i>iv</i>)
other facilities like government price policy, subsidies, loans and physical
facilities for the product. The demand keeps changing from season to season,
month to month and even week to week.<b><o:p></o:p></b></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Classification
of farm inputs<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Agricultural
inputs can be categorized into two types: Consumable and capital inputs (Fig. 1).
The former include manures and fertilisers, seeds, insecticides/pesticides,
diesel oil and electricity. On the other hand, capital inputs include tractor,
trailers, harvesters and threshers, pumpsets, and other implements.<o:p></o:p></span><br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9B1sKnT_Ela6uRgrWSgiJzAK2VBv7BWasFjW8U47yPHP254gmXh3u6TYFeXOGIuMyQqduC5YBD4v_2AOnUoOy8x2w2OKZi6VAMpngNVI_K9d6XV9oE8VV53EpC517n1wy4TN4Ca_h-_QI/s1600/1.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="123" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9B1sKnT_Ela6uRgrWSgiJzAK2VBv7BWasFjW8U47yPHP254gmXh3u6TYFeXOGIuMyQqduC5YBD4v_2AOnUoOy8x2w2OKZi6VAMpngNVI_K9d6XV9oE8VV53EpC517n1wy4TN4Ca_h-_QI/s320/1.png" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>Figure 1: Classification of Agricultural Inputs</b></td></tr>
</tbody></table>
</div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Efficient
marketing system for farm inputs</span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The importance of an efficient
marketing system for farm inputs may be judged by,<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(<i>i</i>)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
Farm products are produced in the countryside. The effect of change in
production methods can, therefore, be realized only if the farm inputs reach
the farmers in time at the least cost.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(<i>ii</i>)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
The use of modern inputs by farmers largely depends upon the spread of
information about them. The marketing system has to perform this function.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(<i>iii</i>)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
An efficient marketing system for farm inputs is essential for the development
of the inputs - manufacturing and supplying industries in the country.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Marketing environment of
agricultural inputs<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The growth of input markets is
influenced by a large number of price as well as non-price factors. A more
comprehensive framework can be used for understanding the market environment
for agricultural inputs in developing countries which should consist of: (1) The Agronomic Potential, (2) The
Agro-economic Potential, (3) The Effective Demand, (4) The Actual Consumption.<o:p></o:p></span><br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCBfSt_UHjMEcVBzuZno_d8j6kep1gTJKkUl84b1HpIZgyL7N_x8yqTw4Sy6z6gKf92z1zrCnL50bMPvhklI7IxLvyMYdtBnIfrMMQsSuhESkMtZdYklHkb0kp-CVhwP69Eq0UTcNzkE0F/s1600/2.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCBfSt_UHjMEcVBzuZno_d8j6kep1gTJKkUl84b1HpIZgyL7N_x8yqTw4Sy6z6gKf92z1zrCnL50bMPvhklI7IxLvyMYdtBnIfrMMQsSuhESkMtZdYklHkb0kp-CVhwP69Eq0UTcNzkE0F/s320/2.png" width="279" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>Figure 2: Marketing Environment Components for Agricultural Inputs</b></td></tr>
</tbody></table>
</div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"><b>Agronomic Potential<o:p></o:p></b></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Agricultural
inputs can be considered to be primarily yield saving or yield raising units.
Their basic usefulness to the farmer and therefore their potential comes
fundamentally from the quantity of yield they are able to raise or save. This
gives the ‘Agronomic Potential’. They may also help to ‘improve quality’. They
also help to ‘reduce the uncertainty or risk’ of obtaining good yields,
especially if they are used at the onset or for prevention of disease, e.g.,
pesticide. Research and development is typically necessary for the creation of
new agronomic potential for inputs. Expansion of irrigation raises the
agronomic potential.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Agro-Economic Potential<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Inputs
are typically expensive units. Unless the output that is gained due to the use
of inputs or lost due to its non-usage which is of substantial value, else
farmers will not use inputs. The price of the output must be significantly high
relative to the price of the input for agronomic potential to be transformed
into ‘agro-economic potential’. Thus, output markets and demands become
important determinants of agro-economic potential. Inputs to be used are
typically more in high value cash crops. Commercialization of agriculture can
be expected to expand the potential for input use and thereby widening the
scope of agri-business.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Effective
demand<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"> In other words, effective
demand is the actual demand in an economy supported by the
consumers’ capacity to pay. It comprises the quantity of a good
or service that consumers are actually buying at the
current market price. Demand is the quantity that consumers are able and
willing to purchase at each conceivable price. This type of demand can always
be called as effective demand as it is opposed to latent demand. A latent
demand is where a consumer is unable to satisfy their demand, whether it may be
due to lack of information about the availability of a product or due to lack
of money.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Actual consumption<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Even when effective demand has been
created, its actual consumption may be strongly restricted unless there is:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(<i>a</i>)
<i>Aggregate supply: </i>either through ‘production or import’. Factors that
determine this are: investment in production, the investment environment,
government policies, foreign exchange situation and other factors such trade
barriers and intellectual property rights protection, among other things.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(<i>b</i>)
<i>Distribution: </i>A large effective distribution system is developed for
catering to small farmers scattered over a large area. This is especially
difficult in the early stages when the volumes are small.<o:p></o:p></span></div>
<div align="center" class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Marketing of seeds<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Historically, the importance of seed
has been recognized since the Vedic times for increasing food production and quality.
However, organized production of supply of quality seed at the national level
started in 1963 as a consequence of the introduction of hybrid technology
during the start of the green revolution period (1961-65). The release of high
yielding dwarf varieties of wheat and rise by the mid 1960s gave further
impetus to the growth of the seed industry. During this period Seed Review Team
was constituted and Seeds Act, 1966, was enacted, and National Commission on
Agriculture was formed. During this period, the private sector took significant
steps into seeds business. By 1987, private companies were granted permission
for investment in seed sector. During 1988, New Policy on Seed Development was
introduced and it encouraged global seed companies to enter the seed business
in India.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Currently
there are more than 200 seed companies operating in India with majority being
in the private sector that includes national, global, regional and other seed
producing and/or selling companies. Besides, there are 10,000 dealers and
distributors of seeds across the country. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Following major categories of seed
companies operate in India:<o:p></o:p></span></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Seed
Firms without R & D: </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Which only
multiply certified seed of superior varieties/ hybrids developed by public
sector R & D systems;<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none;"><b><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Seed Firms with R & D: </span></b><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Which have initiated plant breeding
research to involve superior</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">hybrids, through
their own R & D programmes, while still primarily engaged in
multiplication</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">of seeds developed by the public sector;</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Multinational Company (MNC)
Subsidiaries: </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Which obtain breeding material from
their parent companies, isolate adaptable lines, make crosses and develop
superior hybrids, without disclosing their pedigree;<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Joint Sector Firms: </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Involve
both private and public capital, that multiply seeds of only publicly bred
hybrids/varieties; and<o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Public
Sector Firms: </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Government seed enterprises which
primarily play the role of developing seed trade, maintain foundation seed
stocks for sale, and Inter-state marketing of HYV seeds. These include
National Seeds Corporation and other govt. seed agencies. <o:p></o:p></span></li>
</ul>
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<b><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Structure of Seed Industry in India<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Seed sector in India is of two types
namely formal and informal. Informal sector is the one where farmers produce
seeds without following certification procedures and exchange it amongst
themselves. The formal type of seed sector follows seed certification
procedures and standards to produce a particular variety of seed.<o:p></o:p></span><br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEix9o9LUVgvc-DM_Br_mhVKcqVRTsr5nGE8kKEIdJYWdp4oRU6XHLrUloakMmSeqHn-p4sdNR5OW0x9-H_sKCZoHkzKQwZDPnHu_169DlEEniYKr4Foq0k8_u8322Qzyx2O9Xwm1mzOaaRn/s1600/3.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="208" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEix9o9LUVgvc-DM_Br_mhVKcqVRTsr5nGE8kKEIdJYWdp4oRU6XHLrUloakMmSeqHn-p4sdNR5OW0x9-H_sKCZoHkzKQwZDPnHu_169DlEEniYKr4Foq0k8_u8322Qzyx2O9Xwm1mzOaaRn/s320/3.png" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>Figure 3: Formal and Informal Seed Production Systems in India</b></td></tr>
</tbody></table>
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<b><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Major players in Seed Industry<o:p></o:p></span></b></div>
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<a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"> </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Indian
Seed Industry is one of the biggest seed<b> </b>market in the world and it involves
various<b> </b>institutions and organizations like Government<b> </b>institutions,
Public sector organizations, Research<b> </b>and academic laboratories and
Institutions and<b> </b>Private Sector. Ministry of Agriculture and the
Department of<b> </b>Seed Certification, Indian Council of Agricultural<b> </b>Research
(ICAR), State Agricultural Universities<b> </b>(SAU), National Seeds
Corporation (NSC), State<b> </b>Farm Corporation of India (SFCI), 15 State Seed
Corporations (SSCs), 22 State Seed Certification<b> </b>Centers and 104
notified Seed Testing Laboratories<b> </b>are major players in the seed
industry.<b> </b>Nearly 150 large private seed companies<b> </b>nationwide are
involved in seed production.<b><o:p></o:p></b></span><br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwqf1Lx7yPgUdQDJ_i18imkto4thmz7ZWoSKRatO1hecQ0CmhZ0Nz8mlJamMo6aMfJWMAlKVzwl0wM8zBSW_His9UWf-OCd9vRzOzHmHbeoLXN6hzS54gBykLfvwjtYSG_ixnG_Usl-vd8/s1600/4.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwqf1Lx7yPgUdQDJ_i18imkto4thmz7ZWoSKRatO1hecQ0CmhZ0Nz8mlJamMo6aMfJWMAlKVzwl0wM8zBSW_His9UWf-OCd9vRzOzHmHbeoLXN6hzS54gBykLfvwjtYSG_ixnG_Usl-vd8/s320/4.png" width="315" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Figure 4: Seed Supply Chain in India</td></tr>
</tbody></table>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Public and Private Marketing of
seeds: the difference<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"> Usually the public agencies are only involved in the
production and marketing of ‘high volume but low value seeds’ (eg. Paddy,
wheat) where is lesser profit, whereas the private companies are actively
engaged in either production or marketing or both of ‘low volume but value
seeds’ (eg. Vegetable seeds).<o:p></o:p></span></div>
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<b>Factors that influence seed industry<o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">1.
Seed Multiplication Ratio (SMR): </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">It is the number of
seeds to be produced from a<b> </b>single seed when it is sown and harvested.<b><o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">SMR = Seed Yield / Seed
Rate<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">2.
Seed Replacement Rate (SRR): </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Seed replacement rate
is the percentage of area<b> </b>sown out of total area of crop planted in the season
by using certified / quality seeds other than the farm saved seeds.<b><o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">SRR = X / Y x 100<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Where, X = Quantity of farmer saved
seed (‘grains as seeds’)<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Y = Quantity of quality seeds of a particular
variety reported to cover a given area.<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> This
is essential for maintaining genetic purity and quality seed production. The seed
replacement rate gives an idea about the quantity of the quality seeds used by
the farmers.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;">Marketing mix of seeds<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Marketing
of seeds is an area that needs careful analysis based on following four
parameters: (1) Production, (2) Pricing, (3) Place (Distribution), and (4)
Promotion.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Production<o:p></o:p></span></b></div>
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<span style="font-family: "Palatino-Roman","serif"; font-size: 10.5pt; line-height: 150%; mso-bidi-font-family: Palatino-Roman;"> </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Production
of seeds is carried out in a decentralized manner on individual farms. The
certified/ truthfully labeled seeds are produced by contract growers, either
selected from a number of villages scattered over a large area, or a few
villagers are selected for intensive coverage. The seed companies enter into a
contract with the growers for production and supply of quality seed. The
growers bear all costs and all risks. They are paid at a pre-agreed price only
after the quality of seed is tested and for quantity that passes through these
tests. If germination of parent seed/foundation seed goes down to 70 per cent
or lower, the growers are advised to<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">‘plough down’ (destroy the crop stand),
for pursuing the production till the end would be uneconomical. No compensation
is paid for this ‘plough down’ of the crop. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The
land facility for contract production of seeds is obtained in following ways:
(1) <b>Lease System</b>: In which seed company takes land on lease, supplies
all inputs, and undertakes risk of seed production; (2) <b>Collaboration: </b>In
which one company collaborates with another for procurement of raw seeds; (3) <b>Seed
Grower:</b> Under which a seed grower for procuring raw seed; and (4) <b>Seed
Production Organizers</b> <b>(SPOs): </b>In which companies appoint commission
agents called SPOs to identify growers and secure their area commitment for
seed production of variety hybrid during the season.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Following are the trade practices in
seed industry involving the growers, the Seed Production Organizers (SPOs) and
the seed company. They are as follows: (1) Foundation seeds are supplied to
growers; by the seed company, cost of which is borne by growth. (2) Growers bear
all operational expenses, generally (except under lease system of production. (3)
Financial inputs (in form of credit, loan, etc.) is provided to grower. (4)
Technical inputs and guidance is provided by the SPO (Seed Production Organizers).
(5) Transport is arranged by the grower, generally. (6) Processing facilities
are fixed by the SPOs. (7) Packing material is also arranged by the SPOs. (8)
Quality testing is done by the company. (9) Cost of rejection of seed (after
quality testing) is borne by the grower. (10) Processing expenses are borne
either by SPO or the grower. (11) Procurement (minimum) price is decided
collectively by Seeds-men Association, SPOs and growers. (12) Procurement and
payment is as per pre-agreed terms.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Pricing <o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Pricing strategies depend on
(uncertainties) in demand and government intervention (in pricing of seeds produced
by public sector organizations) which varies from state to state. Pricing
strategies of private sector are also influence by the pricing structure
following by the public sector. However, the final marketing price of certified
seed is the result of components as follows: (1) Seed Price, (2) Price paid to
the seed growers for raw seeds, (3) Storage and processing costs, (4)
Transport, distribution and marketing costs. Supply and demand obviously influences
pricing. Time trend and prices of other farm products also need to be
considered prior to pricing. <o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Distribution<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Companies
have a network of distributors and dealers. Public sector markets through (1) dealers
in private sector, (2) dealers in cooperative sector, (3) sale points and
depots, (4) departmental sales. The distributors, dealers and retailers are
paid commission by the companies on sale. Demand of seeds fluctuates depending
on season, monsoon, etc. Therefore, seed marketing at the micro level involves
matching of farmers needs with timely seed supply, and ensuring adequate supply
much ahead of the season. Storage at distribution points close to distributors/
dealers has to be ensured. Proper
storage of seeds is necessary. Hence, buffer godowns with proper storage
condition are must in end-use area.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Promotion<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The demand for hybrid seeds is
largely dormant and has to be awakened by creative use of promotional tools
that reach the cultivators. Customer contact programme has to be launched.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Promotional
media has to be effectively used to encourage purchase and to stimulate
awareness,<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">free samples of seeds can be distributed
to farmers. Video shows, exhibition, ‘Krishi Melas’, mobile vans, and wall
trolley painting are the most commonly used promotional tools by seed marketing
firms. Many companies resort to advertising on TV. Advertising in radio is a
cost-effective way of reaching farmers. Newspapers also can be used to for
advertisements. Cinema slides can also be deployed to focus on local
conditions, local dealers and seasonal crops. Hoardings in bazaars, bus stands,
etc. can be put up. Effectiveness of glow signboard, calendars and stickers can
also be explored. Posters, hand-bills can also be used for IEC (Information,
Education and Communication).<o:p></o:p></span></div>
<br />
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Post-sales service, including
technical help should also be provided and follow-up of complaints about seed
quality, etc. should be done. Farmers’ behaviour should be understood. Demand
Forecast is also an essential element to estimate the production requirements.
Companies should undertake forecasting exercise for each crop district-wise.
Forecasting can avoid over or under production, maximizing net returns, and
helps arranging logistics, working capital and decisions on payment. Forecasts
can be short-term, medium-term as well as long-term forecasts.<o:p></o:p></span></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1134562274750113640.post-60562222027075498082015-09-16T16:02:00.003-07:002015-09-16T16:05:34.920-07:00Exercise No. 1 Notes<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Exercise 1 </span><span style="text-align: left;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">Introduction to Agricultural Business Management</span></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The term agri-business was first introduced by
John Davis and Gold Berg in 1957 and their definition is as follows, “</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-style: italic; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri;">Agri-business is the sum total of all operations involved in the
manufacture and</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-style: italic; mso-fareast-font-family: Calibri;"> distribution
of farm supplies, production activities on the farm, storage, processing and
distribution of farm commod</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-style: italic; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">ities and items made from them” </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-style: italic; mso-bidi-font-weight: bold; mso-fareast-font-family: Calibri;">(John David and A. Gold Berg)</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-style: italic; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-bidi;">.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">In 1980s it was given three connotations: (1)
synonymous with term agriculture, (2) synonymous with agricultural economics
and (3) a modified concept of agriculture, excluding farming, or the off-farm
aspects of agriculture.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">At present, agribusiness is defined as all
business enterprises </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">that cater</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;"> far</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">mers / traders / consumers. Such </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">transaction</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">s</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;"> may involve either an input or a produce or service and encompasses
items such as:<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">1)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">Productive resources (feed, seed, fertilizer,
equipment, ener</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">gy, pesticides, machinery)</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo3; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">2)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">Agricultural commodities –</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">(raw and processed </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">or
manufactured </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">commodities of food
and fiber)<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">3)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">Facilitative services (credit, insurance,
marketing, storage, processing, transportation, packing, distribution</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">,
consultancy, soil testing</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">).</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> In
other words, agri-business is that sector of the economy which is concerned
with the production, processing and distribution of agricultural products,
including supplies (human labour, bullock labour, fertilizers, pesticides)
essential for farm production, various agricultural services (processing,
storage etc.) and also the economic agencies (financial institutions,
warehouses, marketing agencies etc.) that serve agricultural producers.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Agricultural
Economics Vs Agribusiness<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> Agribusiness
is different from the study of agricultural economics as agricultural economics
emphasizes on the economics of farm production alone whereas agribusiness in
addition to that, also takes in to account non-farm agricultural enterprises
(e.g. processing). Besides, in case of agribusiness thrust is given more on the
business outside the scope of the farm (e.g.) the pricing objective of a firm
includes not only profit maximization (of that of a farm) but also image
building of a farm firm as well as to insulate from competitors.<o:p></o:p></span></div>
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<br /></div>
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<br /></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">Scope for Agribusiness in India<o:p></o:p></span></b></div>
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<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">India is endowed with varied ago-climate,
which facilitates production of temperate, sub-tropical and tropical
agricultural commodities.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">There is growing demand for agricultural
inputs like feed and fodder, inorganic fertilizers, bio-fertilizers.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">Biotechnology applications in agriculture have
vast scope in production of seed, bio-control agents, industrial harnessing of
microbes for bakery products.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">Export can be harnessed as a source of
economic growth. </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The size
of Indian food market is at least Rs. 450,000 crores (2014-15), which needs to
be exploited well before exploring the opportunities abroad. An average Indian
spends 53 per cent of his income on food.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">As a signatory of World Trade Organization</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> (WTO)</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">, India has vast potential to</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">improve it</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">s</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;"> present position in the World trade of
agricultural commodities </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">in </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">both raw and processed form.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">At present processing is done at primary level
only and the rising standard of living expands opportunities for secondary and
tertiary processing of agricultural commodities.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">8.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">The enhanced agricultural production throws
open opportunities for employment in marketing, transport, cold storage and
warehousing facilities, credit, insurance and logistic support services.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">9.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">Production of vegetables and flowers under
green house conditions can be taken up to harness the export market.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">10.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">There is wide scope for production and
promotion of bio-pesticides and bio-control</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> agents for crop
protection</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">11.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">The vast coastal line and internal water
courses provides enormous opportunity for production of marine and inland fish
and ornamental fish culture gaining
popularity with increase in aesthetic val</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">ue among the citizens
of India.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">12.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">The livestock wealth gives enormous scope for
production of meat, milk and milk products, poultry products etc</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">13.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">The forest resources can b</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">e
utilized for production of by</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">products
of forestry.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo4; tab-stops: list .25in; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: "Times New Roman";">14.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;">Beekeeping and apiary can be taken up on large
scale in India.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Management<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> Management
is the unifying and coordinating action, which combines different activities of
individuals or an organization through establishing an environment favourable
of performance thereby leading to the accomplishment of desired objectives.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Important
requisites/ tasks for success in business are:</span></b><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-fareast-font-family: Calibri;"><o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> Today,
the business has become very competitive and complex. This is mainly due to
changing taste and fashion of the consumers on the one hand, and introduction
of substitute and cheaper and better competitive goods, on the other.
Production has become customer-oriented catering their demands and wants. A
farmer / business firm owner has to give proper thought to this consideration
in order to make his business a successful one. The important requisites for
success in business are:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">1) Clean objectives<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">2) Planning<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">3) Sound organization<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">4) Research<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">5) Finance<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">6) Proper plant location, layout, and size<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">7) Efficient management<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">8)
Harmonious relationship with workers<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Agricultural
market and marketing management<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Market:
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">The
word market comes from the latin word “markatus” which means merchandise
or trade or a place where business is
conducted. Various terms used for describing markets in India are hats, painths,
shandies, santhais and bazzars.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The
term markets means not a particular market place in which things are bought and
sold but the whole of any region in which buyers and sellers are in such a free
communicate with, one another the price
of the same goods tend to equality, easily and quickly.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Marketing:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
Connects a series of activities involved in moving the goods from the point of
production to the point of consumption.</span> <span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">It is that part of
economics which deal with the creation of time, place and possession utilities.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Agricultural marketing</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">:
It is the study of all the activities, agencies and policy involved in the
procurement of farm inputs by the farmers and movement of agricultural products
from the farms to the consumers.<o:p></o:p></span></div>
<div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<b>Marketing
activities</b>: They are traditionally divided
on the basis of<span class="apple-converted-space"> </span><i>operational activities,<span class="apple-converted-space"> </span></i>such as sales and distribution,
and<span class="apple-converted-space"> </span><i>marketing service
activities<span class="apple-converted-space"> </span></i>which include
advertising, promotion and market research. <o:p></o:p></div>
<div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<strong>4 P’s in marketing:</strong>
In considering the needs of their customers, companies must think in terms of the<span class="apple-converted-space"> </span><i>product<span class="apple-converted-space"> </span></i>itself, the<span class="apple-converted-space"> </span><i>price<span class="apple-converted-space"> </span></i>of the product and the<span class="apple-converted-space"> </span><i>place<span class="apple-converted-space"> </span></i>where the farmer needs it, while
making sure that the existence of the product is known through effective<span class="apple-converted-space"><i> </i></span><i>promotion.<span class="apple-converted-space"> </span></i>These various components are
described in more detail below,<o:p></o:p></div>
<div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<b>Product</b>: The product
is the focus of marketing. Although many aspects of the product are not
marketing responsibilities (such as plant breeding, seed production and
processing), marketing is concerned with the product's attributes and what
these mean to the farmer. Such factors include quality, appearance and
performance.<o:p></o:p></div>
<div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<b>Price</b>: Price creates
sales revenue and is therefore important in determining the total value of the
sales made. Price is really determined by what farmers perceive as the value of
seed of a particular variety. It is important to understand how farmers value
seed as well as how much they are prepared to pay in relation to the benefit
they expect to earn.<o:p></o:p></div>
<div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<b>Place</b>: The place
factor deals with the various methods of transporting and storing seeds and
then making them available to the farmer. Getting the product to the right
place at the right time depends on the distribution system. The choice of
distribution method will depend on market circumstances and the nature of both
the seed and the farmer.<o:p></o:p></div>
<div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<b>Promotion</b>: Promotion
is the business of communicating with and influencing the customer. Although
the cost associated with promotion can be a significant element in the overall
cost of a product, successful seed promotion increases sales so that costs are
spread over a larger output. While increased promotional activity may be a
response to competitor activity or a new product launch, it is important to
maintain a constant flow of messages to the consumer as well as visibility in
the market place.<o:p></o:p></div>
<div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div style="line-height: 150%; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Characteristics of a developed market:<o:p></o:p></span></b></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(1)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">A
good market should provide commodities which the consumers want and are ready
to pay for.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(2)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">It
should provide wide variety of product but not so wide that create confusion
for consumers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(3)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">No
harmful products should be offered for sale in the market. Precautions should
be taken into protect consumers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(4)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The
information on the presence of goods in the market and their relative merits
should be available to the entire prospective consumer.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(5)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">There
should not be any sort of pressure on the consumers to buy products from a
particular trader.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(6)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The
retailing servants should be available in the market for small consumer.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(7)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Price
should be fair and uniform for the products for all categories of consumers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(8)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">There
should not be any inefficiency or waste in the market.<o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Characteristics of good marketing system:<o:p></o:p></span></b></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(1)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">There
should not be any government interference in free market transactions.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(2)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Market
should operate independently but systematic and orderly<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(3)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The
marketing system should bring demand & supply to gather and should establish
an equilibrium between the this two forces<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0.5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(4)<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The
marketing system should be able to generate employment.<o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Payoff
Matrix:<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">A pa</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">yoff
matrix depicts the probable value / expected value of each of the decision
alternatives, by displaying the various outcomes and the probabilities of their
occurrence. <o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Probability:
<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">A probability is the degree
of likelihood that a particular event will occur. It ranges in value from 0 (no
chance of occurring) to 1 (certain chance of occurring). <o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Expected
Value:<o:p></o:p></span></b></div>
<br />
<div class="MsoNormal">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"> </span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">The expected value of an
alternative course of action is the sum of values of all the predicted outcomes
for the alternative multiplied by their respective probabilities. </span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1134562274750113640.post-83137493878112463162015-09-13T23:43:00.002-07:002015-09-16T16:04:54.131-07:00Exercise No. 4 Questions <div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Exercise 4 A Study of Input
Markets: Fertilizers and Pesticides</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"><o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Date:<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">1)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
Name the major type of fertilizer that is not produced (but heavily used) in
our country?<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">2)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
The annual potential demand (as of 2011-12):<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">For Urea…………………………………………………………………………………………...<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">For Phosphorous………………………………………………………………………………….<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">- For Potassium…………………………………………………………………………………….<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">- For Biofertilizers…………………………………………………………………………………<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">- Overall fertilizer
consumption……………………………………………………………………<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">- Agro-chemical consumption………………………………………………………………………<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">-Estimated market size
for agro-chemicals…………………………………………………………<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">3)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Name
the state in which the bio-fertilizer usage is still not popular?<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> a) Punjab b)
Tamil Nadu c) Madhya Pradesh d) Maharashtra<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> ………………………………………………………<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">4)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
In India, the demand for fertilizers always tends to be price sensitive. <b>(True / False)<o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">5)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Fertilizers
can be classified in to _______ groups based on<b> _______________________<o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">6)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Expand
FCO_______________________________________<b><o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">7)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">In
India, fertilizers need to be marketed only by their __________________ and not
by any trade or brand name. <o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">8)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
Expand SPIC_________________________________________________________________<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">9)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Which
forms the major share of marketing costs of fertilizers?<b>__________________________<o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">10)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Expand
PACS<b>_______________________________________________________________<o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">11)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Which
crop accounts for maximum share of pesticide consumption?<b> ________________<o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">12)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The
market for pesticides in India is ________________________________ in nature.<b><br clear="all" style="page-break-before: always;" />
13) </b>Name the factors that determine the demand for fertilizers in India.
Elucidate.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">14)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
Write in brief about the classification of fertilizers.<o:p></o:p></span></div>
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US;"><br clear="all" style="page-break-before: always;" />
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">15)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
Do you think that government intervention is necessary to control fertilizer
prices? Why?<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">16)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">What
is the main scope of subsidizing fertilizers?<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">17)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
What are the types of credit facilities available in the fertilizer sector?<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">18)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
What is the major difference between Global and Indian Agro-chemicals market?<o:p></o:p></span></div>
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US;"><br clear="all" style="page-break-before: always;" />
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">19)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">What
are CFSCs? Cite some examples. What is their major contribution to Indian
agriculture?<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">20)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">What
is necessary for companies to retain their competitive advantage in a pesticide
market?<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">21)
</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Name
the factors that can contribute to growth in Indian crop protection market?<b><o:p></o:p></b></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">22)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
List out all the major challenges of Indian agro-chemical industry.<o:p></o:p></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1134562274750113640.post-83239121663214750862015-09-13T23:15:00.000-07:002015-09-16T16:05:09.942-07:00Exercise No. 4 Notes<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Exercise 4 A study of input
markets: fertilizers and pesticides</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"><o:p></o:p></span></div>
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<span style="font-family: Times New Roman, serif;"><b>Date: 14/09/2015</b></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Fertilizers can be described as any
substance, organic or inorganic, natural or artificial, that supplies one or
more of the chemical elements required for plant growth. It is the most
important among all the inputs purchased by the farmer. For boosting
agricultural output, the use of chemical fertilizers has an important role.
India’s soil, though varied and rich, is generally deficient in nitrogen,
phosphorus and potassium— three plant nutrients that together with organic
manure influence crop return. The use of fertilizers increases land
productivity and eases the nutrient constraints on multiple cropping and land
development programmes.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Product
<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Fertilizers are classified into
three groups based on the mix of nutrients— nitrogenous (N), phosphates (P) and
potassic (K). <o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Straight fertilizers:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
The fertilizers that have a single nutrient like N or P or K are called
straight fertilizers. Examples of such fertilizers are urea (that supply only
nitrogen) and single super phosphate and triple super phosphate (that supply
phosphate). <o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Compound fertilizers:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
The fertilizers that contain more than one nutrient are called compound and
complex fertilizers. For example, di-ammonium phosphate (DAP) is a complex
fertilizer that supplies both nitrogen and phosphate. <o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Specific-mix fertilizers:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
The fertilizer mixtures that supply all the three nutrients in proportions
required by different crops and for different regions are referred to by this
name.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Market
structure<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> In the present scenario, there are more than
57 large and 64 medium and small fertilizer production units under the Indian
fertilizer industry (as of 2011-12). The 57 large-sized fertilizer plants in
the country are manufacturing a wide range of nitrogenous, phosphatic and
complex fertilizers. Out of these, 29 units produce urea, 20 units produce
di-ammonium phosphate (DAP) and complex fertilizers, 13 plants manufacture
ammonium sulphate (AS), calcium ammonium nitrate (CAN) and other low-analysis
nitrogenous fertilizers. Besides this, there are about 64 medium and
small-scale units in operation producing single-super phosphate (SSP). The
annual potential demand for fertilizers was found growing at a rate of 4.5 per
cent per annum and the demand on 2011-12 was 18 million tonnes for urea, 8
million tonnes (Phosphorous) and 3 million tonnes (Potash) and the overall
fertilizer consumption as of 2011-12 was found to be at 147 kg / hectare.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Production of
fertilizers <o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The fertilizer industry made rapid
progress during the past decade. Fertilizers can be classified into two
categories— chemical and bio-fertilizers. There has been considerable increase
in the domestic production of fertilizers over the years but, not enough to
keep pace with the growth in consumption. Hence, to meet the growing demand,
the Government imports from other countries. Bio-fertilizers are bacterial
cultures mixed with an appropriate inert material, referred to as carrier.
Bio-fertilizers offer several advantages. First, they are based on low-cost
technology. Second, they supplement the availability of nitrogen and increase
the availability of native and applied phosphates. Third, they are eco-friendly
being a renewable source of energy. Bio-fertilizer usage is popular to a
reasonable extent in the states of Madhya Pradesh, Maharashtra and Tamil Nadu.
At present, there are about 110 units producing bio-fertilizers. Installed
capacity of the bio-fertilizer production is about 17,000 tonnes with an annual
production of 10,000 tonnes. The annual potential demand (2011-12) was estimated
to be around 40,000 tonnes.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Demand determinants <o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Fertilizer demand is influenced by
the following factors:<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(i)
Rainfall and irrigation facilities:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Adequate and
well-diversified rainfall gives the farmers confidence to invest in fertilizers
along with well-equipped irrigation facilities.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(ii)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
<b>Relative prices of fertilizers:</b>
Indian agriculture is characterized by small holdings and demand for
fertilizers tends to be price-sensitive. If there is significant price
differentiation between fertilizers, demand will move in favour of the cheaper
fertilizers, even if it is not the most appropriate one. <o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(iii)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
<b>Cropping pattern: </b>This determines
the need and timing of fertilizer purchases. <o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">(iv)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
<b>Government policy:</b> Government
policies and frameworks (subsidy and price controls) influence pricing,
production and distribution of fertilizers.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Brand names <o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> According to the Fertilizer Control
Order (FCO), fertilizers have to be marketed only by their generic name and not
by any trade or brand name. Usually, companies add their company name to the
generic name, for example Mangalore Chemicals and Fertilizers Ltd sells urea as
Mangala Urea. Southern Petrochemical Industries Corporation Ltd calls their
product SPIC Urea.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Labeling <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The bags should clearly indicate
product mixture details. The proportions of the three nutrients say, NPK 20:
20: 20, should be given.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Price <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Price is an important factor in the
purchase of fertilizers. The costs of the agricultural output is influenced by
fertilizer prices and the quantity of fertilizer used. For this reason,
Government intervention is considered necessary to control prices. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Price controls <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Presently, fertilizers except urea
have been de-controlled in view of the improved supply situation and with the
aim of reducing the burden of subsidy. However, de-control resulted in price
hikes. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Subsidy <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Subsidy aims at providing
fertilizers to the farmers at a price lower than its economic price.
Differential rate of subsidy on nitrogenous, phosphatic and potassic
fertilizers have been used to correct the imbalance in the use of nutrients by
the farmers. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Distribution system<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Fertilizers are produced only at select
locations and imported fertilizers arrive at seaports. The distribution system
has to carry out the functions of storage, transportation and sales to the
farmers spread throughout the country. The marketing costs are as follows:
freight accounts for 50– 55 per cent, the distribution margin accounts for 18
per cent and handling and storage for 10 per cent.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Storage <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> While fertilizer production is
continuous throughout the year, its use is seasonal. In India, there are two
main cropping seasons: (i) kharif (April– September) and (ii) rabi (October–
March). Fertilizers are stored before the onset of each season. Consumption is
characterized by a peak period followed by lean spells. Therefore, storage is
an important factor in fertilizer marketing and distribution. There are about
2,060 central and state warehouses with an aggregate capacity of 30.1 million
tonnes. In addition, the Food Corporation of India has a storage capacity of
23.95 million tonnes. The co-operatives have about 65,970 godowns with a
capacity of about 14.12 million tonnes. These godowns are used for storage of
food grains, fertilizers and other commodities.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Sales <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> There are 0.26 million fertilizer
sales points in the country, out of which 70 per cent are in the private sector
and the remaining 30 per cent are operated by either co-operative societies or
other public-sector institutions like State Agro-industries Corporations. The
different channel types are:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Traditional
channel:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> These include consignees, dealers, distributors,
wholesalers and retailers. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Direct
channel:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Some companies sell directly to farmers through
their company sales depots or service centres. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Co-operatives:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">
The pattern of fertilizer distribution in the co-operative sector varies from
state to state. Generally co-operative networks operate through a three-tier
system. However, in some states the system works on a two-tier basis. In a
number of states, the apex co-operative marketing federation functions as a
wholesaler. The village-level primary agricultural co-operative societies
(PACS) are the ultimate units in the co-operative structure. These societies
act as the retail sales points for fertilizers. Nearly 50 per cent of the total
PACS are involved in the fertilizer business. The village level societies
generally receive fertilizer supplies either directly from the co-operative
wholesaler, i.e. apex marketing federation or from primary district marketing
societies.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Credit facility <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Generally, two types of credit
facilities are available in the fertilizer sector for fertilizer distribution
and use. One type is distribution credit that a dealer uses for buying
fertilizers from the manufacturer or wholesaler. The second type is production
credit that a farmer uses for purchasing inputs such as fertilizers. Various
agencies provide credit to the agriculture sector in different forms. These
include co-operative banks, regional rural banks, commercial banks and other
agencies.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Promotion <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Farmers require advice in the choice
and application of scientific fertilizers. In view of this, promotion should be
a two-pronged one: Creating awareness of the different brands and mixes of
fertilizers Instructions on how to use fertilizers— timing, quantity and method
of application. Promotion for awareness can use mass media (radio, cinema
slides, wall paintings, hoardings, newspaper advertisements, krishi melas and
exhibitions) but, promotion aiming at education requires interactive media. It
is for this purpose that many private companies and government agencies have
their farm extension services.<o:p></o:p></span></div>
<div align="center" class="MsoNormal" style="line-height: 150%; text-align: center;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Pesticides<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> India is the fourth largest producer
of agrochemicals globally, after United States, Japan and China. The
agrochemicals industry is a significant industry for the Indian economy. The
Indian agrochemicals market grew at a rate of 11% from USD 1.22 billion in FY08
to an estimated USD 1.36 billion in FY09. At about 2 per cent, India accounts
for only a small part of the global agro-chemicals market; however, the
year-on-year growth is about 10 per cent in terms of value. <span style="background: white;">According to the report “India Pesticides Industry
Analysis to 2018”, India Pesticide market has reached INR 229,800 million (as
of 2011-12) and is projected to expand further with a compound annual growth
rate (CAGR) of 14.7 % from FY’2014-FY’2018.<span class="apple-converted-space"> </span></span> <span style="background: white;">The Indian crop protection market is expected to
witness a growth in its consumption owing to factors such as growing farmer
awarness, farmers prosperity, inclining demand for organic food, increased
focus on R&D, expansion of the contract farming and GDP growth.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> India’s agrochemicals consumption (as of
2011-12) is one of the lowest in the world with per hectare consumption of just
0.58 Kg/ha compared to US (4.5 Kg/ha) and Japan (11 Kg/ha). In India, cotton
accounts for the maximum share of pesticide consumption, around 40%, followed
by paddy (20%).<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="background: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"> Pesticides
industry in India has been broadly segmented into six categories including
insecticides, herbicides, fungicides, biopesticides, plant growth regulators
and rodenticides. Of the aforementioned, insecticides commanded the highest
share of around 45% in the overall pesticides market revenue. The pesticides
consumption in India has been unevenly spread across various regions. While the
country’s northern region forms majority of the pesticides consumption, the
eastern and north eastern region constitue the lowest share. Some of the major
pesticides consuming states in India include Andhara Pradesh, UP, Maharashtra
Punjab Haryana West Bengal, Gujarat, Kerala and Tamil Nadu.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Global differences <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The world market for agro-chemicals
is primarily dominated by herbicides, which has a 46 per cent share followed by
insecticides at 29 per cent and fungicides at 17 per cent. In sharp contrast,
in the Indian market, insecticides have the lion’s share of 65 per cent
followed by fungicides with 13 per cent. Herbicides have a share of only 10 per
cent. The low consumption of herbicides in India is on account of cheap labour
available for weeding operations. <span style="background: white;">Favorable
climatic conditions in North America and Europe drive herbicide consumption in
those areas. Insecticides usage has also gone down in developed markets with
increased usage of genetically modified (GM) crops.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="background: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"> Tropical
climatic conditions and high production of paddy, cotton, sugarcane and other
cereals in India drive the consumption of insecticides. Availability of cheap
labor for manual weed picking also contributed to low consumption of herbicides
in India. However, the trend is expected to change in future as herbicides,
now, are the fastest growing segment due to increasing farm labour wages in
India.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Regional differences <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The consumption pattern is skewed in
favour of certain states like Andhra Pradesh, Karnataka and Punjab where
scientific farming practices are given greater attention.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Seasonal differences <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Largely, pesticides are consumed by
two major kharif crops in India— cotton and paddy. Since, the two crops are
sown and reaped between the months of July and November, this is the peak
demand period for agro-chemicals. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Crop differences <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Cotton accounts for 40– 50 per cent of the pesticides
consumption while other crops like rice, vegetables and wheat consume less.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Extension services <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Corporate Farm Service Centres
(CFSC) such as ITC e-choupal, Tata Kisan Sansars, EID-Parry Argroline, Rallis
Kisan Kendra and Mahindra Krishi Vihars have been assisting farmers in
rationalizing the use of pesticides. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Exposure and literacy<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The exposure to global practices
through TV and the Internet as well as workshops and farmer meets organized by
corporate firms have had a positive influence on the pesticide-use practice of
farmers.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Market structure <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The domestic agro-industry has about
80 players in the organized sector and more than 6,000 in the small-scale
sector. More than 60 technical grade pesticides are manufactured indigenously
by 125 producers. Others are engaged in making pesticide formulations. There
are large numbers of subsidiaries of MNCs such as Monsanto Chemicals, Bayer
(India), Novartis (India) and Cyanmide Agro. R& D is a key factor in this
business. However, many Indian firms invest less in R& D. The top 10 companies
account for 80 per cent of the production. The formulators buy technical-grade
material and prepare various formulations for the ultimate users in different
concentrations for different crops and also for different types of pests and
diseases. The formulators are free to manufacture and market any combination or
concentration of pesticides or insecticides from the basic chemicals. They are
also free to use any trade or brand name for their products. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Nature of business <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Production in the agro-chemical
industry is essentially a conversion job. Raw materials and labour are the
major cost elements. Environmental considerations have resulted in high
regulation for the industry. The industry is basically generic in nature with
nearly 70 per cent of the molecules being off patent. In the off patent market,
wide distribution network, strong brand image and superior product quality are
major factors that help retain competitive advantage.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Product<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The products differ in form and use
for different crops. However, there are also products that are insect specific
and can be used for many crops. The products are mainly available in two forms,
i.e. powdered form and liquid form. The pesticides/ insecticides in powdered
form need dusters for application, while those in liquid form need sprayers for
application. Most of the farmers do not possess the applicators. They either
borrow from their neighbours or hire it from agro-input vendors.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Pricing<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> Pricing As there are no government
controls, prices of pesticides are determined by normal demand and supply
forces. Competition and excessive capacity build up together led to a steady
decline in the prices of generic products. In addition, discounts and credit
facilities are offered to win customers. Nearly 80 per cent business is conducted
against unsecured credit, the period for which varies from 30 to 120 days. As
they are generally purchased at the middle or the end of the crop cycle when a
farmer’s cash flows are lean, the incidence of bad debts can be quite high. In
this respect, products that target crops that have a shorter cash-to-cash cycle
such as paddy, or commercial crops, would be better placed than others. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Distribution <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The distribution of pesticides is
similar to that of fertilizers. It is carried out through state departments,
co-operatives and private dealers. There are about 79,000 outlets for pesticide
distribution in the country. The margins for the distributors range between 5
and 10 per cent and for the dealers it is between 10 and 18 per cent. To
promote cash sales, dealers often sacrifice a part of their margins and sell at
lower prices.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">Promotion <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;"> The promotional measures used to
promote agro-chemical products are usually the same as those used by fertilizer
manufacturers/ marketers. As the product is a problem-solver, farmers may try
to become aware of them on their own. However, inappropriate use of pesticides
will result in further problems. As such, it is important to activate opinion
leaders (peers, educated persons and sarpanch), local dealers, company farm-services
agents and agricultural scientists from agricultural departments and
universities to educate farmers on how and when to apply pesticides. The media
generally used for awareness creation are: television, newspapers, radio, wall
paintings, hoardings and cinema slides. The media for education include the
following: field demonstrations, farmers’ meets, agriculture fairs (kisan
melas), credit facilities and gifting applicators.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;">
<strong><span style="background: white; font-size: 12pt; line-height: 150%;">Industry challenges<o:p></o:p></span></strong></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="background: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 150%;"> Despite
the strong growth drivers, Indian agrochemicals industry faces challenges in
terms of low awareness among farmers (only 25-30% of the farmers are aware of
agrochemical products and their usage). With large number of end users spread
across the geography, managing inventory & distribution costs is a
challenge for the industry players. Apart from this, as per feedback from
leading industry players, rising sale of spurious<span class="apple-converted-space"> </span></span><span style="background: white; font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 150%;">pesticides<span class="apple-converted-space"><span style="color: #2591dc;"> </span></span>and increased use bio-pesticides pose a major threat to
industry growth. Effectiveness of current supply chain management (SCM)
practices in agrochemicals is another area of concern for the industry.
Companies face issues due to seasonal nature of demand, unpredictability of
pest attacks and high dependence on monsoons. Month end skews and high inventory
across the channel is perennial problem for the industry.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: 150%;">
<br /></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1134562274750113640.post-54643775262297257392015-09-13T23:03:00.001-07:002015-09-16T16:21:00.327-07:00Exercise No. 2 Extra Notes<div dir="ltr" style="text-align: left;" trbidi="on">
<div align="center" class="MsoNormal" style="text-align: center;">
<div style="text-align: left;">
<a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><b><span style="font-family: "Times New Roman","serif"; font-size: 12pt; line-height: 115%;">Ex. No. 2 Marketing of Agricultural Inputs: Seeds - Conceptual Clarity</span></b></div>
<div style="text-align: left;">
<a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><a href="https://www.blogger.com/blogger.g?blogID=1134562274750113640" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a><span style="font-family: Times New Roman, serif;"><span style="line-height: 18.4px;"><b>Date: 14/09/2015</b></span></span></div>
<b><u><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b>
<b><u><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Conceptual
Clarity<o:p></o:p></span></u></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Agronomic Potential<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Agro-economic Potential<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">It
is the capacity of inputs to lead to input-specific desired results.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">It
is the income generating capacity of all the inputs used up.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The
inputs have to be judiciously used for their desired results to be obtained.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The
price or value from the output or yield realized should always be greater
than the price of all the inputs used up to obtain the desired output.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">It
includes the individual potential of both the yield enhancing (e.g. seed, fertilizer)
as well as the crop protecting inputs (e.g. insecticide).<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">As
it considers only the yield component, it refers the overall impact of all
the inputs used up in a cropping cycle.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">For
e.g. The agronomic potential of seed/ fertilizer is in terms of ‘yield’; the
agronomic potential of pesticide is in terms of ‘pest control’ and that of
fungicide is in terms of ‘disease control’.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">For
e.g. The value of yield of paddy obtained as a result of the use of
fertilizers, manures, seed, crop protection chemicals, labour, and machinery
should always be greater than the value of all the inputs used up.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Inference for Price Spread and Marketing
Efficiency:<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> The value of Shepherd’s Index in Channel II (1.61) is
greater than that of Channel I (1.33). Thereby, the Marketing Efficiency is
better in Channel II when compared to Channel I. This refers that the price
spread is low in Channel II when compared to Channel I and the producers’ share
is also more in Channel II. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> In Channel III, as MC and MM are not given, it is not
possible to interpret Price Spread (PS) and ME. Moreover, as there happen to be
no intermediaries in Channel III, there is no need to find out PS. But if the
storage, transportation and marketing costs are given, then it may be possible
to find out ME in Channel III.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Effective Demand<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">Derived Demand<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The
willingness to pay backed by the capacity / ability to pay is called as
effective demand.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The
demand or usage of one input / product leading to the demand or use of
another input / product is referred to as derived demand.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">The
demand for an input/ product is self sufficient. It need not lead to the
demand for another.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">This
is a special case, whereby the demand for different inputs/ products
complements each other.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">For
e.g. The willingness of a farmer to buy a tractor after getting the required
bank loan. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;">For
e.g. The use of hybrid seeds necessitating the demand for fertilizers,
pesticides and other agro-chemicals.<o:p></o:p></span></div>
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