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Market led extension

This document discusses the shift from production-led extension to market-led extension in agriculture. It notes that while production-led extension focused on increasing productivity, farmers were not realizing remunerative prices for their produce. Market-led extension aims to build farmers' capacity to earn higher returns by focusing on market strategies and linkages. The roles of extension would expand beyond production advice to include market information, quality guidelines, and business training to help farmers access markets. Challenges include the small size and scattered nature of markets as well as the influence of intermediaries. Training programs and collective action are suggested to help farmers and extension workers develop new skills and approaches for market-led extension.

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Presented By Chinmaya Nanda 1st Year M.F.Sc Fisheries Extension CIFE, Mumbai 1
 Introduction  What is Market Led Extension ?  Need  Paradigm Shift from Production-led Extension to Market Led Extension  Objectives  What The Marketing Extension Envisages  Challenges in aquaculture marketing system  Roles of Extension in Light of Market Led Extension  Problems  Suggestions  Conclusion  References 2
During last 50 years emphasis was given on PRODUCTION-LED EXTENSION (PLE). But the farmers at individual level are not realizing remunerative prices for their produce. They prone to sell their produce “AS IS WHERE” basis. Globalization of the market demanded a paradigm shift i.e. from production to market led production. 3
• For best realization of returns on their investments, risks and efforts, a farmer has to develop market strategies for trade, globally. • Keeping this in view, MANAGE started working on the concept of ‘Market-Led Extension’ and a beginning was made through a three day National Workshop on Market- Led Extension at MANAGE during 18th-20th December, 2001. 4 Contd.
Market led extension is the market-ward orientation of fisheries through extension, which includes fisheries & economics that acts as a perfect blend for reaching the door steps of farming community with the help of appropriate technology. 5
Why market led extension? • Increasing productivity is the traditional role of extension • Individual farmers not realising remunerative price • Build the capacity of farmers to earn more • Market led extension still a peripheral issue in the extension scenario • A manufacturer is keen to get reliable supplies in terms of quality, timing and cost 6
• Globalization of markets and increased competition – a tough task for extension • Need for efficiency and innovation in both production and marketing • Translation of consumer demand in non-subsistence sector • Marketing extension is complementary to other systems • Interdependence between rural credit, inputs and farmer’s organizations Contd. 7
• Farmers need to transform themselves from more producers-sellers in the domestic market to producers cum sellers in a wider market. The questions confronting the farmers are:  What to produce ?  When to produce ?  How much to produce?  When and where to sell ?  At what price to sell?  In what form to sell? Ques: How to achieve this? Ans: MARKET LED EXTENSION Cont. 8
ASPECTS PLE MLE 1. Purpose Transfer of Technology Optimum returns out of the Investment 2. Expected results Adoption of package of practices High returns to investment 3. Farmer viewed as Producer Agripreneur , Aquapreneur 4. Focus Seed to Seed Rupee to Rupee 5. Linkages R-E-F R-E-F extended by market linkages 6. Importance of maintaining record/data keeping Not important Important Note - PLE – Production led extension , MLE – Market led extension R-E-F – Researcher –Extension – Farmer Paradigm Shift from Production-led Extension to Market Led Extension 9
1. Conversion of Agriculture and allied sector into a profit oriented business. 2. Strengthening R-E-F linkages – between various department at various levels. 3. Strengthening market linkages to farmers – IT application in Agricultural marketing. 4. Wider use of electronic mass media for Extension. 10
The extensionist should also provide market information, training and consultancy on market and business management for farmers But how can we provide such Market consultancy? 11
 Market Oriented production  Market Intelligence  Market Analysis  Market Information Service  Use of Technology  Appropriate Extension Approaches. DIMENSIONS OF MARKET-LED EXTENSION 12
Market size is small & scattered Dominant private trade & intermediaries Direct marketing (Farmer-consumer) is negligible Transport and storage facilities is unsatisfactory Risk absorption capacity low Transport & storage difficulties Grading, standardization and processing are poor 13
Price fluctuations Financing is still a major concern Lack of bargaining power Perishability Delayed payment to produce Harnessing Information Technology Employing the tools of Market intelligence Extension cadre development Contd. 14
 Advise on product planning - Even for small farmers, the concept of product planning i.e. the careful selection of varieties to be grown with market ability in mind, is an important starting point.  Marketing information - The farmers need information on two aspects of marketing viz., current price and market arrival information and forecasting of market trends.  The information should be area specific, variety specific buyer specific etc., 15
 Advise on establishing and operating markets – to establish and operate markets on their own to save from exploitative elements.  Operating within the framework of marketing rules and regulations, the rural population will be able to protect their interests better when they visit distant wholesale or terminal markets. Contd. 16
 SWOT analysis of the market:  Organization of Farmers’ Interest Groups (FIGs)  Supporting and enhancing the capacities of locally established groups under various schemes /programmers  Enhancing the interactive and communication skills of the farmers  Establishing marketing and agro-processing linkages between farmers’ groups, markets and private processors. 17
 Educating the farming community.  Direct marketing: farmers need to be informed about the benefits of direct marketing.  Capacity building of FIGs in terms of improved production, post harvest operations, storage, transport and marketing.  Regular usage of internet facility and Production of video films of success stories of commodity specific farmers. Contd. 18
1. Production related  Seasonality of production: Supply not uniform throughout the year.  Perishability of produce: Problem of storage.  Bulkiness of production: Transportation problem. 2. Market related  Non – availability of MI: Lack of information about the market.  Existence of many middleman  Inferior quality of produce. 3. Extension related  Lack of communication skills.  Lack of credibility.  Insufficient information related with market and many more…. 19
1. Training program for extension worker Module 1 Basic concepts and issues in agriculture markets and marketing (and links with agricultural extension) Collection, processing and dissemination of market information 20
Module 2 Reflection on application of module 1 Helping farmers access markets: collective action, business linkages and other (based on needs assessment during mentoring phases) Contd. 21
2. To introduce market-oriented approach into extension subjects. 3. Development of local market and promoting local consumption. 4. Entrepreneurial training to farmers. 5. Linking farmers to markets. 6. Market reforms 7. Formation of Market-Led Extension Policies and its implementation. 8. Workshop on Market-Led Extension at regional level Contd. 22
 The focus of the extension functionaries need to be extended beyond production.  Farmers should be sensitized on various aspects on quality, consumer’s preference, market intelligence, processing and value addition and other marketing information.  This will help the farming community to realize high returns for the produce, minimize the production costs, and improve the product value and marketability. 23
1. SHARMA, D. and CHAND, M., 2014. Market-led extension: issues and challenges for extension personnel. International Journal of Farm Sciences, 4(3), pp.201-206. 2. Kumar, R., Singh, B.P. and Kaswan, S., 2012. Production Driven To Market Driven Extension Approach. Indian Research Journal of Extension Education, Special Issue, 2. 3. Kokate, K.D., Kharde, P.B., Patil, S.S. and Deshmukh, B.A., 2016. Farmers’-led extension: experiences and road ahead. Indian Research Journal of Extension Education, 9(2), pp.18-21. 4. Iqbal, M., 2014. Capacity building through extension education. International Journal of Agricultural Extension, pp.93-100. 5. Dey, S., Market – Led Extension Strategies for Fish Farmers and Fish Marketing Agents of Nadia District, West Bengal, unpublished thesis 2014-16, ICAR-CIFE, Mumbai. 6. Gauraha, A.K., N. Lakpale and Hulas Pathak. 2012. Training manual on Model Training Course on Market Led Extension. Organized at Directorate of Extension Services, IGKV, Raipur from 18-25 September, 2012 : 156 pages. REFERENCES 24
25 ONLINE REFERENCES
THANK YOU 26