MSc

The study entitled “Group marketing system for Fruits and vegetables in Kerala” was undertaken with the following objectives:
To analyse the marketing behaviour of commercial fruits and vegetables farmers and to evaluate the structure, conduct and performance of Swasraya Karshaka Samithies (SKSs) promoted by Vegetable and Fruit Promotion Council, Keralam (VFPCK).
The study was conducted in Thrissur and Palakkad districts which accounted for the largest volume of business through SKSs. Commercial farmers and traders of fruits and vegetables constituted the population of the study. For the study, five SKSs were selected from each district randomly. From the area of operation of each SKS, ten member farmers who marketed their produce through SKS and five farmers who marketed their produce otherwise were selected randomly to constitute the sample of farmers. Similarly five traders selected from each SKS constituted the sample of traders. Data were collected from the sources through personal interview method by administering separate pre-tested structured schedules to farmers and traders. The data thus obtained were analysed by using bivariate tables, percentages, satisfaction indices, and ranking.
Analysis of the socio-economic profile of the farmers revealed that older generation are more interested in farming than younger generation. The analysis also brought out the predominance of men in agriculture, and they possessed vast experience in farming. The results indicate that marginal and small holdings dominate the agricultural sector in the study area.
Analysis of the annual income of the farmers showed that the number of farmers with an annual income of Rs.1,00,000 and above was higher among SKS farmers than Non-SKS farmers. The share of income from fruits and vegetables in the total agricultural income was higher for SKS farmers.
‘Better price for the produce’ followed by regular market for the produce, ‘better measurement and grading practices in the market’, ‘feeling of farmers own organisation’ were the most important reasons for farmers to take membership in SKS.
Regarding the ownership pattern of cropped land of the farmers, the share of farmers cultivating on leased land was more among the SKS farmers than Non-SKS farmers. The SKS also attracted farmers with larger area under fruits and vegetables cultivation to its fold. The selected farmers depended more on man made sources of water than natural sources for irrigation and the majority of the farmers used either electric pump or diesel pump for irrigation.
Majority of the SKS farmers preferred VFPCK as the main source of seeds for cowpea, bittergourd and amaranthus. In the case of nendran the most preferred source of suckers was traders. When the Non-SKS farmers preferred own sources and fellow farmers for the purpose. The main source of suckers of nendran was traders.
Analysis of the different varieties of crops preferred by farmers revealed that in the case of nendran farmers in general preferred Mettupalayam, Kottayam and Manjeri varieties. In the case of cowpea Lola was the most preferred of SKS farmers and Non-SKS farmers preferred Lola, Local and Vyjayanthi varieties. Regarding bittergourd when SKS farmers showed a strong preference towards Preethi, Non-SKS farmers mostly preferred Local variety. Arun was the most preferred variety of amaranthus SKS farmers and Kannara Local by Non-SKS farmers. In the case of ivy gourd majority of SKS farmers preferred Sulabha variety while Non-SKS farmers preferred Local variety.
The main sources of planting material for farmers were VFPCK, KAU, traders and fellow farmers. KAU was the only institutional agency which supplied all types of planting materials. Out of the four sources of planting materials, KAU was the dearest and VFPCK the cheapest. Majority of the SKS farmers availed credit from commercial banks linked to SKS when majority of the Non-SKS farmers preferred money lenders and traders for their credit needs.
The SKS farmers harvested nendran coinciding with the SKS market days. Cowpea, bittergourd and ivy gourd were harvested thrice a week by majority of the SKS farmers. Vast majority of Non-SKS farmers harvested nendran weekly. Majority of the Non-SKS farmers harvested cowpea and amaranthus thrice in a week. In the case of bitter gourd and ivy gourd majority harvested two days in a week.
SKS was the prime source of market information to SKS farmers while traders constituted the main source of information to Non-SKS farmers. The SKS farmers were better placed with regard to scientific marketing practices. All the produces except amaranthus and cowpea were graded and sold in SKS. Only nendran and bitter gourd were graded in Non-SKS market.
Majority of the SKS farmers used plantation leaves for packing nendran. Plastic bags were used for packing other crops. Majority of the farmers in Non-SKS markets marketed nendran without packing.
The main reason for selling the produce outside the SKS market was farm gate collection by the traders. The important means of transportation for SKS farmers was tailed autorikshaw and head load for majority of Non-SKS farmers.
Price fluctuation was the only one risk perceived by SKS farmers, while the Non-SKS farmers perceived the risk of unsold produce, physical damage, and default in payment besides price fluctuation. In order to manage the price risk a majority of the SKS farmers sold the produce to the same trader even at a lower price when Non-SKS market sold to other traders.
Regarding the realization of credit sales, 90 per cent of the SKS farmers received payment within a week while majority of the Non-SKS farmers received payment within two weeks.
Lack of adequate processing and storage facilities were reported as the most serious problems faced by the commercial fruits and vegetables farmers. The SKS farmers were found better trained than Non-SKS farmers.
While analyzing the structure of SKS market, it was found that majority of the sample traders were wholesalers. Majority of them had more than five years experience in fruits and vegetables trade. Majority of them had more than five years experience with the SKS. Regarding the admission in SKS, vast majority of the traders found the rules simple.
Seasonality analysis of the market for the selected crops disclosed that the farmers especially nendran farmers realized the best price during Onam season as demand outstripped the supply during the season. The SKS market exhibited conditions of ‘slightly concentrated oligopsony’. Market power concentration analysis showed that in Elevenchery, Pariyaram and Thottipal the market power was highly concentrated in top four traders compared to other SKSs.. However the market power was less concentrated in top four traders in markets like Kottayi, Kanjirapuzha, Viyyakurishi and Pazhayannur.
Conduct of the SKS market revealed that majority of the traders waited till the close of the market to buy the produce at a lower price as the price used to cool down towards the end of the market. The purchased produce were fed by the traders to the end markets situated far and wide from the SKS. Majority of the traders operated in more than one market. Regarding the management of price risk the traders signed forward contracts with their retailers and regulated their purchase from SKS according to the price and quantity contracted with their customers.
The Marketing Efficiency Index for all the selected crops except bittergourd was the highest in SKS market compared to other markets as the marketing cost was the lowest in the SKS market. The farmers were ‘highly satisfied’ and the traders were ‘highly satisfied’ with the working of the SKS market.
The VFPCK, through its group based production and marketing approach has been able to give a fillip to the vegetable and fruit cultivation in Kerala. The Swasraya Karshaka Samithies (SKSs) promoted VFPCK have enabled the farmers to enhance their production and productivity through scientific cultivation practices. The SKS market owned and operated by the farmers have enabled the farmers to realise better price for their produce by setting up best trade practices and price discovering mechanism.