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MARKET–LED EXTENSION

Presented ByChinmaya Nanda

1st Year M.F.ScFisheries Extension

CIFE, Mumbai

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CONTENTS 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

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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.

INTRODUCTION

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• 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.

Contd.

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What is Market Led Extension ?

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.

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NEED

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

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• 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.

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• 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.

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ASPECTS PLE MLE1. Purpose Transfer of

TechnologyOptimum returns out of

the Investment 2. Expected results Adoption of package

of practices High returns to

investment 3. Farmer viewed

asProducer 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

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OBJECTIVE

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.

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The extensionist should also provide marketinformation, training and consultancy on market and business management forfarmersBut how can we provide suchMarket consultancy?

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Market Oriented production

Market Intelligence

Market Analysis

Market Information Service

Use of Technology

Appropriate Extension Approaches.

DIMENSIONS OF MARKET-LED EXTENSION

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CHALLENGES IN AQUACULTURE MARKETING SYSTEM

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

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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.

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WHAT THE MARKETING EXTENSION ENVISAGES

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.,

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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.

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Roles of Extension in Lightof Market Led Extension

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.

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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.

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PROBLEMS1. 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….

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SUGGESTIONS

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

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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.

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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 reforms7. Formation of Market-Led Extension Policies and its implementation.8. Workshop on Market-Led Extension at regional level

Contd.

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CONCLUSION

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.

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

1. http://www.manage.gov.in/studymaterial/MLE-E.pdf.2. http://www.slideshare.net/sunilagbhu/market-led-exten

sion.

3. http://www.slideshare.net/123456789preety/market-led-extension-27033739.

4. http://www.slideshare.net/MaheshKansotia/market-led-extention.

ONLINE REFERENCES

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THANK YOU

Thank You