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JanuaryMarch, 2003
Vol. XLV, No. 4
I. S. S. N.00021555
AGRICULTURAL
MARKETING
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A National Level Quar

terly Journal
Quarterly
on Agricultural Marketing
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Directorate of Marketing & Inspection
Ministry of Agriculture
(Deptt. of Agriculture & Co-operation)
Government of India
Shri R. C. A. Jain takes over as Secretary, Agriculture

Shri R. C. A. Jain, IAS (Bihar : 1968) is the new Union
Agriculture Secretary. A Law Graduate from Bombay University,
Shri Jain also holds Post Graduate Diploma in Development
Administration from Manchester University (U.K.). Shri Jain has
over 27 years of experience in Agriculture
and Rural
Development, at the State as well as Central level. Prior to taking
over as Secretary, Agriculture he held the post of Special
Secretary in the Union Home Ministry. Shri Jain was closely
associated with the Agriculture Ministry in the capacity of
Additional Secretary as well as Joint Secretary in his earlier
stint. He also served as Secretary Atomic Energy Commission,
Government of India during his career.
In his State Cadre, Shri Jain was Development Commissioner,
Industrial Development Commissioner and Secretary, Department
of Industries, Government of Bihar. As a Managing Director, he
served Bihar State Financial Corporation and Adityapur Industrial
Area Development Authority (AIADA), Jamshedpur Bihar. He also
served as Resident Commissioner, Government of Bihar at
New Delhi after his tenure as Development Commissioner in the
Bihar Government. In the initial days of his career, he worked as
District Magistrate, Director (Industries) as Administrator, Bihar
State Co-operative Land Development Bank, Patna.
2
/ws4/My Documents/107M&I-Cov
Agricultural Marketing
Mahabir Singh
Fresh
FOREWORD
The Directorate of Marketing and Inspection brings out quarterly journal Agricultural Marketing
as a research journal on the subject at national level. The dissemination of specialized information
on certain identified sectors of Marketing by publishing some issues as special issues from time
to time has been a significant feature. The present issue is one such special issue on Agricultural
Marketing Information System in some of the Asia and the Pacific countries.
The Agricultural Marketing sector covers different specialized activities. The market information
is one of the important facilitating functions in the Agricultural Marketing system. It facilitates
marketing decisions, directs the competitive process and simplifies marketing mechanisms. Accuracy,
Availability, Applicability and Analysis are the four 'A's of marketing information. If market information
systems are to have any meaning for farmers, the information they provide must be accurate,
timely and farmers must understand it. By knowing such information, a farmer may decide how
much to produce, when and where to sell and a trader may expand trade. Similarly, a consumer
may find out alternative source of supply.
There are several Ministries/Departments dealing with Agricultural Marketing including collection
and dissemination of market information as per their requirements. Many of these organizations
have their independent websites and floating market information on their portal for farmers/market
users. In addition to this, there are several areas of Agricultural Marketing in which farmers need
to be fully familiarized in order to improve price realization. Promotion of Nationally and
Internationally acceptable standards of grading and standardization, packaging and labelling, storage
and warehousing, Sanitary and Phyto-Sanitary measures and quality certification in farm sector will
enable trade and processing sector to undertake large scale agricultural marketing operations in
domestic as well as International markets. The computer based market information technology is
important for providing single window service to different market participants.
In order to assess the Market Information Service implemented in different countries in Asia
and the Pacific, the AFMA-Association of Food and Agricultural Marketing Agencies in Asia and
Pacific supported by Food and Agriculture Organization of the United Nations (FAO) and
Governments of AFMA member-countries organized a Regional Seminar on improving Agricultural
Marketing Information systems at Yangon, Myanmar between 3-8 February, 2003. The papers
presented as Agenda Paper from India, FAO Rome and Myanmar have been included in this issue
of the journal as special issue in addition to the summary of Agenda Papers from Bangladesh,
China, Indonesia, South Korea, Myanmar, Nepal, Pakistan, Philippines and Sri Lanka.
The Market Information System prevalent in different countries of Asia and the Pacific will
provide a comprehensive information on such an important aspect of Agricultural Marketing. It is
hoped that the readers will find the special issue informative and useful.
Agricultural Marketing Adviser

DatedMay, 2003
(P. K. AGARWAL)
to the Govt. of India.
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AGMARK
AGMARK
WITH AGMARK YOU ARE SURE TO BUY BEST AND PURE
PRODUCE OF INDIA
PRODUCE OF INDIA
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Printed by the Manager, Govt. of India Press, Faridabad and published by the Controller of Publications, Delhi 2002.
4
Mahabir Singh
Fresh
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SHRI PP.K
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Shri PP.K
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wal, I.A
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Agarwal,
I.A.S.
Andhra Pradesh, 1975) is the new Agricultural Marketing
Govtt . of India. Before taking up the present assignment on May 14,
Adviser to the Gov
2001, Shri Agar
wal was holding the post of Principal Secretar
Agarwal
Secretaryy in the Depar
Department
tment of
Irrigation and Command Area Development Deptt
Deptt.,., Gov
Govtt . of Andhra Pradesh at
Hyderabad. Earlier
ved in the Gov
Govtt. of Andhra Pradesh in the capacit
capacityy of
Earlier,, he has ser
served
Managing Director of the Andhra Pradesh Dair
Dairyy Development Co-operative Federation
Ltd., Hyderabad and of Sri Vajayarama Gajapati Corporation Sugars Ltd., Bhimasinghi,
Vijayanagar District
District..
During his field postings, Shri Agar
wal ser
ved as Collector and District Magistrate
Agarwal
served
of Kurnool, West Godavari and Vishakhapatnam Districts and as Commissioner
Commissioner,,
Municipal Corporation of Hyderabad.
In Gov
wal has earlier worked as Chief Executive of the
Govtt . of India, Shri Agar
Agarwal
National Co-operative Union of India at New Delhi.
OctoberDecember, 2001
Mahabir Singh
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Vol. XLVNo. 4
ISSN. 00021555
PAMA116, VOLXLV, No.4
500
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JANUARYMARCH, 2003
o`f"k foi.ku
AGRICULTURAL MARKETING
EDITORIAL BOARD
1. SHRI P. K. AGARWAL,
AGRICULTURAL MARKETING
ADVISER TO THE GOVT.
OF INDIA.
2. DR. G. R. BHATIA,
ADDL. AGRICULTURAL
MARKETING ADVISER.
3. SHRI H. P. SINGH,
JOINT AGRICULTURAL
MARKETING ADVISER.
4. SHRI D. N. TIWARI,
JOINT AGRICULTURAL
MARKETING ADVISER.
5. SHRI A. P. BHATNAGAR,
DIRECTOR (COLD STORAGE
AND REFRIGERATION).
6. DR. P. K. JAISWAL,
DIRECTOR OF
LABORATORIES.
7. SHRI G. H. DHANKAR,
DEPUTY AGRICULTURAL
MARKETING ADVISER.
8. SHRI LALLAN RAI
ASSISTANT AGRICULTURAL
MARKETING ADVISER
EDITOR
Page No.
CONTENTS
1.
Foreword
FAO/AFMA/Myanmar Regional Seminar on Improving
Agricultural Marketing Information System.
2.
Making Marketing Information Services Relevant to

Farmers.
Andrew W. Shepherd
3.
Development of Internet Based Agricultural Marketing

System in India.
G. H. Dhankar
4.
Agricultural Marketing Information System in Myanmar.

U. Kyaw Myint
16
5.
Agricultural Marketing System in Bangladesh

Muhammad Fazlur Rahman
Agricultural Marketing System in China
Yan Bo and Bu Yibio
Agricultural Marketing System in Indonesia
Ms. Gayatri K. Rana and Wenny Astuti
Agricultural Marketing System in Republic of South
Korea
T. H. Chung & Sam Lee
29
6.
7.
8.
9.
33
35
37
Agricultural Marketing System in Malaysia

D. W. I. B. Wan Daud & Pauzi Yaman
Agricultural Marketing System in Nepal
K. B. Shreshtha
40
11.
Agricultural Marketing System in Pakistan

Muhammad Iqbal Khan
47
12.
Agricultural Marketing System in Philippines
51
10.
42
Nelson C. Buenaflor
SHRI N. K. MISRA
MARKETING OFFICER
13.
Agricultural Marketing System in Sri Lanka

W. D. Gunatilke
IMPORTANT
The Journal may be had by sending subscription to the Controller of
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in his favour.
Annual Subscription :
InlandRs. 40.00
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}
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55
Inclusive of
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Exclusive of
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ANY ARTICLE PUBLISHED IN THIS JOURNAL CAN BE REPRODUCED PROVIDED DUE ACKNOWLEDGEMENT IS MADE TO THE SOURCE.
THE VIEWS EXPRESSED IN THE ARTICLE ARE THOSE OF THE AUTHORS AND NOT NECESSARILY OF THE DIRECTORATE OF MARKETING
& INSPECTION AND THE GOVERNMENT OF INDIA.
READERS MAY SEND POPULAR ARTICLES OF TOPICAL INTEREST IN HINDI AND ENGLISH TO THE EDITOR, AGRICULTURAL MARKETING,
DIRECTORATE OF MARKETING & INSPECTION, NEW C. G. O. BUILDING, N. H. IV, FARIDABAD-121001.
FAO/AFMA/Myanmar Regional Seminar on Improving Agricultural Marketing Information System

Conclusions and Recommendations
Food and Agriculture Organization (FAO)/Association of Food and
Agricultural Marketing Agencies in Asia and the Pacific (AFMA) organized a Regional Seminar on Improving Agricultural Marketing Information System at Yangon (Myanmar) from 3rd to 8th Feb., 2003. AFMA
member-countries participated in the seminar besides host country. From
India, the Food Corporation of India, National Co-operative Development
Corporation participated. The Seminar discussed at length about the
System of Agricultural Marketing Information System prevalent in the
member-countries of AFMA and for future development of Agricultural
Marketing Information. The conclusions and recommendations arrived
at the seminar are given below :
Editor
he seminar discussed four technical papers, 13 countries

reports and six special reports based on Market Information Services implemented by non-AFMA member organizations. It also made two days of field visits to Hlegu, Taik
Kyi and Insein townships to study various initiatives taken
by the Myanmar Government in agricultural marketing development including market information services.
The seminar arrived at the following conclusions and recommendations :
1.
2.
3.
The seminar expressed concerns about accuracy of information provided by some Government Market Information Services (MIS). It was felt that the main cause
of this problem was the lack of resources, to adequately
motivate price collectors and to ensure that they were
well trained.
In this connection, the seminar felt that market information should be regarded as a public service. It noted
that there were few examples in Asia of farmers paying for market information and, furthermore, small
farmers were in no position to pay for such information. The seminar urged governments to continue supporting national MIS. In the case of some countries
increased funding would be necessary if the MIS were
to remain sustainable.
The seminar noted with considerable interest the ways
in which the region's MIS were using modern technologies, including the internet, to process and disseminate
information. It felt that there was significant scope for
technical co-operation among developing countries
(TCDC)exchange to enable MIS in the region to learn

in detail of those technologies, and urged AFMA to
facilitate this endeavour.
4.
The seminar realized the need for some MIS to improve their skills in data analysis and recommended
FAO and AFMA to identify resources in order to carry
out training in this area.
5.
The seminar suggested that AFMA should develop

its own website to facilitate information exchange
among members. Ultimately, such a website could be
used to promote the regional exchange of marketing
informtion.
6.
The seminar stressed that farmers required assistance

in understanding and using market information. It noted
with interest the steps being taken by some AFMA
members in providing such advisory services. However, it also noted that most government agricultural
extension services remained production oriented rather
than market oriented. The seminar, therefore, urged the
governments to impart necessary training in marketing
aspects to extension staff. It also requested FAO to provide the necessary support in this regard.
7.
The seminar observed that timely dissemination of

relevent market information remained a major problem facing many MIS. Small farmers, in particular,
would have to depend on the broadcast media for many
years to come. It was noted that several MIS experienced problems in broadcasting prices on state-owned
media, for reasons of cost, lack of co-operation on the
:/ws4/My Documents/211M&I-2003
211 M&I/2003
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Mahabir Singh
part of the media or lack of government support. It urged

governments to rapidly address these constraints.
8.
9.
10.
equate time to broadcast necessary market information.

To begin with, it was suggested to utilize television
media for effective dissemination of marketing information, using running text on the TV screen at prime
time.
The seminar agreed that while information related to

collection and dissemination of prices is of vital importance to farmers, its scope and content needs to be
widened to enable them to face new marketing
challenges and receive better prices.
The seminar emphasized that as trade participation

grows with reduced trade barriers and development,
a country's ability to comply with sanitary and phytosanitary regulations becomes more important for
market access and for domestic consumers. Market
information services need to incorporate these elements to enhance competitiveness in the liberalized
market.
12.
The seminar felt that knowledge recorded and stored

on paper or other media needs to be transformed into
information for the benefit of farmers and other
stakeholders. Agencies involved in organizing MIS
should translate price time series and other marketing
information into a usable form for farmers and ensure
its dissemination.
Such information include, among others, standardization and grading, packaging and labelling, storage and
warehousing, sanitary and phyto-sanitary regulations,
marketing regulations, and requirements of export markets. Receiving information on each of these areas will
enable farmers to plan their production and sale in an
economically advantageous manner.
11.
The seminar noted that television is rapidly becoming

the preferred information source for farmers in most
countries of the region. At the same time, it realized
that it is difficult for television stations to devote ad-
____
AGMARK IS THE SYMBOL, QUALITY IS THE REALITY
JanuaryMarch, 2003
211M&I/2003
Mss. 2 to 86
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Mahabir Singh
Making Marketing Information Services Relevant to Farmers

ANDREW W SHEPHERD*
ormally, when I make a presentation on market

information I begin with a discussion of the benefits of
MIS. However, I think I can assume that we all know those
and will move on straight away to discussing how to make
information relevant to farmers.
2. Acccuracy, availability, applicability and analysis are the
four "As" of market information. If MIS are to have any
meaning for farmers the information they provide must be
accurate and farmers must understand to which product,
quality, etc. the prices refer. Further, even if prices are
completely accurate, they are of much use if they are only
available to farmers too late for them to use effectively. I will
spend most of this presentation looking at ways of quickly
disseminating information to farmers, both now and in the
future as the possibilities offered by new technology open
up. Thirdly, farmers need to be able to apply the accurate
information made available to them. This requires a
knowledge of how to convert prices they receive from the
MIS into a realistic price at their local market or farm gate.
Finally, farmers need long-term data, which has been analyzed
in such a way that they can make decisions about when to
plant and harvest and what new crops to diversify into.
Accuracy
3. Providing accurate information requires attention to a lot
of different issues. FAO has a publication on how to set up an
MIS and this goes into considerable detail about how to ensure
prices are accurate. It is not presently available in book form
but can be downloaded from our website. MIS need to ensure
that there is agreement on the variety of each product. On
one of my visits to Yangon I attended the annual Mango
Festival. There were 63 varieties of Mango on display. Clearly
the MIS cannot cover 63 varieties of one product but it does
need to make sure that when it reports on mango prices farmers
know which varieties are being referred to. Then there is the
question of quality. Does the price of mangoes refer to
beautiful, clean unblemished mangoes; to dirty, bruised
mangoes, or to something in between the two extremes? MIS
in each country need to agree on quality definitions and
consistently apply them throughout the country. Otherwise
you could have the situation where farmers who have poor
quality mangoes to sell would hear that the price was high in
Yangon market, and would go to the market, only to find that
the price quoted by the MIS was for the top quality. FAO
recommends that the concept of "Fair Average Quality" should
be used as the basis for price reporting.
4. The type of transaction can be confusing for farmers and

often, probably, for the price collectors themselves. In one
market there may be several types of transaction: farmer
selling to retailer; farmer selling to wholesaler; wholesaler
selling to retailer; trader selling to wholesaler; trader selling
to retailer; retailer selling to consumer, not to mention the
role of commission agents in some countries. Which price
does the MIS report on? There are two main criteria to be
adopted: which price is most useful to the farmer and,
balancing that, which price is easiest to collect. Whatever
transaction price is used, it must be used consistently. And
farmers must understand that that is the transaction type
referred to. It is not always easy to get the actual transaction
price and I must admit that collection of prices in markets is
a hard job. You cannot just go and ask the trader, because
often the price paid is subject to negotiation and the price the
trader quotes may not be the final price. And if prices vary,
how does the collector arrive at a suitable "average" to
broadcast on the radio. These are important issues, too
complex to go into here, but market information services do
need to develop clear guidelines to give to their collectors.
Availability
5. For information to be available and timely it should
preferably reach farmers on the same day on which it is
collected, or early on the following morning. The means
efficient MIS operation is essential and the local media must
be willing to cooperate. Efficient MIS dissemination usually
involves price collection early in the day, rapid completion
of price-collection forms and speedy distribution to the
relevant media. For crops that change price rapidly, such as
vegetables, prices should ideally be collected and disseminated
on a daily basis. Indonesia is one good example of this, but I
am sure there are others. Where faxes exist phones should
not be used as there is a risk of prices being misheard. Where
e-mail exists this should normally be used in preference to
faxes, to avoid the need for data to be entered on computer
twice, once in the provinces and once in HQ. In some
circumstances, however, it may be quicker for a data collector
to write prices on a price collection form and then fax this to
the local radio station and HQ, rather than going to the trouble
of first entering the information on a computer.
6. Of course, there is no need to collect data on a daily basis
and process it rapidly if you have not made arrangements to
broadcast the information. In Bangladesh, for example, only
* Sr. Marketing Officer, Agril. Management, Marketing and Finance Service, Agril. Support Division, FAO, Head Quarters, Vlale, delleTerme di caracalla
00100 Rome, Italy.
211 M&I/2003
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Mahabir Singh
a few grain prices are broadcast on the radio, and then

irregularly. Here in Myanmar the situation is even whorse as
no agreement has been reached for the broadcast of market
prices.
7. When we did the Indonesian study we found that every
farmer we met listened to the price broadcasts on the radio.
In theory, radio is best way of reaching farmers. However,
the assumes that farmers do, indeed, listen to local radio
stations. That cannot be taken for granted. When we were
working to set up the Cambodian MIS we asked farmers which
radio station they listened to. "Voice of America" was the
reply. I seriously thought of e-mailing Washington with daily
prices, with the request that they broadcast them. Three weeks
ago I was in Bangladesh. There farmers now prefer television
to radio. Although most cannot afford a TV there is always
one in a village and for a small fee farmers can watch every
night. Those that do listen to radio don't, like their counterparts
in Cambodia, think much of the local radio stations. However,
in Bangladesh the preference is for the BBC.
8. In some countries there are no local stations and broadcast
have to be on national radio. This makes it difficult to provide
sufficient information of relevance to farmers all over the
country. One programme every night with half an hour of
price would be rather boring. In other countries there are local
stations but they do not carry market prices. On the other
hand, I am sure you will hear later from Khamtanh Thadavong
how successful the new MIS was in getting collaboration from
all of the local stations in Laos. However, that success was
only achieved by making a small payment to the radio stations
and resources for such payments are already running out.
Many stations do want to be paid although, in general, we
recommend against this as most MIS are in no position to
pay. We believe that radio stations should regard MIS as
similar to the news, that is, it should be a public service. No
radio station asks the Meteorological Office to pay to
broadcast weather forecasts.
9. I just noted, television is becoming increasingly available
and in many countries even the poorest farmers have access.
However, television is invariably a national rather than a local
service and in broadcasting prices would have the same
problems as national radio. Bangladeshi farmers justifiably
pointed out to me that if Bangladesh TV could broadcast share
prices from the local stock market, of interest to about one
per cent of the population. However, it is not that simple, and
the reality is that we will have to use radio broadcasts for
many years to come. That means we will have to both persuade
the stations to broadcast prices and persuade televisionwatching or Voice of America listening farmers to switch to
the local radio station for a few minutes to listen to prices.
10. Alternative ways of making information available to
farmers include the use of the internet and e-mail. We will be
hearing from Mr. Dhankar about the use of the Internet in
India and I hope we will learn from him how farmers are able
to access market information in this way. Technology is

developing rapidly and the possibility for people in remote
areas to gain broadband access to the internet from satellite
transmission is developing rapidly. These days, the availability
of a suitable electricity supply is often a greater constraint
than the availability of internet technology. Nevertheless, the
fact that it is technically possible to get market prices to remote
areas by internet does not necessarily mean that it will happen.
Computers and internet subscriptions cost money and even if
a country can find the resources to set up a network of
"telecentres" there still has to be a means of getting the
information from the center to the farmer.
11. Mobile telephone transmission has been used by MIS
in at least two African countries. It may be a useful way for
traders to obtain information but smaller farmers will not
be able to afford a phone. Perhaps the programme of the
Grameen Bank in Bangladesh, where women are loaned
money to purchase a mobile phone, which they let other
villagers use for a fee, could be one possibility. Farmers
will, however, have to be able to afford both the phone call
and the fee charged by the MIS. It is unlikely that
information disseminated in this way will be sent out free
of charge.
12. Some televisions are equipped with a system called
Teletext, that enables viewers to access pages of information.
This system has been effectively used by the MIS Hungary,
for example. Farmers can be supplied with information free
of charge on a daily basis, and there are few limitations on
the amount of data that can be supplied. I understand that in
China fixed-line phones have been used to enable market
information to be accessed, for a fee. Touch-tone phones can
be used to specify the type of information required.
13. In terms of getting information to farmers to enable them
to make quick commercial decisions, the printed media is
generally unsuitable. Limiting dissemination to newspapers
and magazines is a major weakness of several MIS around
the world, including, as I have already noted, that have is
Myanmar. While the FAO project to set up the MIS here was
very well implemented, the prices are being collected
efficiently and on a regular basis, the fact that approval to
disseminate prices on the radio has not been obtained is a
cause for considerable concern. I take the opportunity of this
meeting to once again request the government to permit price
broadcasts.
14. In most countries a significant proportion of farmers is
illiterate, making it difficult for them to see price information
in daily newspapers. However, they can usually find someone
who can read for them. A bigger problem is that rewspapers
rarely reach rural areas. Magazines, such as the weekly
extension magazine used to disseminate information in
Myanmar, are useful for providing indications of long-term
trends, but of no value if farmers want to know the price in
Yangon market yesterday.
JanuaryMarch, 2003
211M&I/2003
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Mahabir Singh
Applicability
16. Prior to setting up an MIS, or revising an existing one, it
is necessary to carry out a detailed examination of how the
marketing system functions and to fully identify the needs of
farmers. This was well done by GTZ when it assisted
Indonesia in the 1980s. tomorrow, U Kyaw Myint and
colleagues will tell you how we approached the problem in
Myanmar.
17. So MIS need to try to give farmers information from
markets most applicable to them. However, this is not always
possible, for reasons of cost and logistics. Where it is only
possible to give prices for large city wholesale markets, then
farmers have to be helped to understand how to translate those
prices into something applicable to them. That is, they need
assistance in understanding the issues I raised at the beginning
of this presentation, concerning variety, quality, type of
transaction, etc. They also need to understand the costs
incurred between their farm gate and the city market. Such
information can be conveyed to them through radio braodcasts
and through extension workers. In the past, extension workers
have rarely been trained about marketing but extentsion
services are now beginning to recognize the importance of
their staff being able to advise on marketing and post-harvest
handling, as well as on production issues.
Analysis
18. Some MIS are good at providing timely price information
to farmers. Few, if any, are good at providing analysis of time
series of such information to enable farmers to plan off-season
production, to decide whether to diversify or to decide whether
to store in the expectation of higher prices later in the year.
MIS generally lack both the analytical skills and the time to
do such work. Some produce annual reports but it is difficult
for farmers to use such reports without assistance.
Resources for Sustainable Operation
possible (charges could be made for a newsletter but this would

take time to reach the subscribers. Radio is quick, but then it
is not possible to charge the users). Consideration could be
given to a two-tier system. Basic information could be
provided by radio for free to small farmers. Traders and large
farmers requiring more detailed information could be
supplied, for a fee, with more detailed information by e-mail
or phone.
21. Other revenue sources could include the provision of
consultancy services, either ad hoc market research services
or services based on analysis of the detailed information
already available to the MIS. This have been tried, for
example, by the MIS in Moldoya in the former Soviet Union.
A problem experienced there was that so much freelance
work was required in order to fund the MIS that staff did not
have enough time to implement the MIS property. There is
no reason why the private sector should not pay for
information. I was told in Bangladesh that agribusiness
companies often request specific reports from the Department
of Agricultural Marketing. Preparing such reports could, in
future, be used to fund the MIS. Other sources of funding,
particularly for radio braodcasts and written reports, could
be sponsorship and advertising. Myanmar's weekly reports
are surrounded by adverts and I am sure we shall see some
examples this week. However, small farmers generally have
limited purchasing power and are thus not a particularly
attractive market for advertisers, with the exception of input
suppliers.
22. If MIS cannot raise revenue it may not be possible to
reduce costs. In Bangladesh, for example, is it really necessary
to collect 399 prices from 128 rural markets? Little of the
information collected is ever disseminated. MIS need to
examine the data they collect from the standpoint of whether
they are now, or are ever likely, to use it.
The Future
19. If MIS are to be relevant they must provide information

on a consistent basis. Market information is not something
that can be broadcast for a week and then forgotten about for
a month. It has to be broadcast every day, every other day or
every week without fail. Governments should not initiate
MIS unless they are sure that resources will be available to
maintain the service. In most countries government support
is likely to be essential for many years to come.
20. In some cases farmers and traders can be charged
information. However, most small farmers would have trouble
in paying and, anyway, it is difficult to see how they could be
charged if the aim is to get information to them as quickly as
23. I hope I have raised some points that will both stimulate
discussion and also give you ideas for issues to cover in your
own presentations. How can we follow up this workshop? do
we need to look at the possibility of developing a market
information network for Asia, which can organize training?
Clearly, further work needs to be done in improving data
collection techniques and in improving analytical skills. How
can we promote exchange of market information within the
region. Can, for example, India lead the way with an Internetbased network? Finally, how do we address the needs of
extension officers to be trained in helping farmers understand
market information? FAO has lots of marketing training
materialshow do we get them to the extension worker?
^,xekdZ 'kq)rk dh igpku gS

6
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Development of Internet based Agricultural Marketing

Information System in India
G.H. DHANKAR*
Introduction
arket information is an important facilitating function

in the agricultural marketing system. It facilitates
marketing decisions, regulates the competitive market process
and simplifies marketing mechanisms. Regular, timely and
reliable market information is needed by farmers in planning
production and marketing, as well as by other market
participants in arriving at optimal trading decisions. In India,
where more than 75 per cent agricultural producers are small
and marginal farmers, marketing information service should
ideally be available to all. Removal of inter and intra-state
restrictions on storage and movement of agricultural
production in the country demand existence of complete and
accurate marketing information service to farmers to facilitate
better realization of prices for the produce marketed. Use of
computers can improve the availability and delivery of
information in a user friendly manner to farmers and other
market participants.
2. India has 28 States and 7 Union Territories. Almost all of
them have their own system of providing market information
to the farmers. However, these prevailing systems are mostly
based on conventional methods due to which communication
of information to target groups usually gets delayed losing
its relevance. The system is also limited to collecting data on
market arrivals and prices on transactions in the regulated
market yards and disseminating through various media like
radio, newspapers, blackboard display and public address
system at market places. In order to access larger markets,
farmers require also to know about the market requirement
in terms of quality, packing and safety standards and
conditions. In the absence of such awareness, their outreach
will continue to be restricted to local market places where
intermediaries take away a major share of the price.
3. Agricultural Marketing in the country is witnessing major
changes owing to liberalization and globalization of markets.
In this context, agriculture has to be market driven, more cost
effective, competitive, innovative and responsive to high tech
and IT applications. There is a need to build capacity of each
of the beneficiary group viz. the farmers, market functionaries
and others involved in the agricultural marketing activities.
Undertaking/utilizing marketing research to educate and train
farmers in 'Good Marketing Practices' and providing for
development of service appropriate to local requirements to
transform information emanating from various sources in a

simple and practically useful manner is considered need of
the hour.
4. FAO Agricultural Services bulletin 'Promoting Private
Sector Involvement in Agricultural Marketing in Africa
observes that although the private sector can, under some
circumstances, develop effective market intelligence systems,
there may be no incentives for large market traders to share
the information they collect as a by-product of their trading
activities with others. In fact, they may see it as giving away
market advantage. Lack of market knowledge may be seen
as a barrier to entry and government provision of a market
intelligence system could remove that barrier. Provision of
market information may also reduce any distrust of
government by the private sector, by making markets more
transparent.
5. It is likely that the effects in terms of improved arbitrage
will be limited, however, as arbitrage is more often prevented
by lack of finance or cost of transport, rather than simple lack
of information. Nonetheless, there is evidence that the market
information system instituted recently in Tanzania may have
improved spatial arbitrage1. A survey showed that most traders
listened to the thrice-weekly broadcasts. A number expressed
annoyance that grain which they had transported to the capital
achieved lower prices than those broadcast, presumably
because the opportunity for profit had been recognized by a
number of traders, and resulting inflow of grain had reduced
prices.
Internet Based System (AGMARKNET)A New
Dimention
6. Internet provides a completely new dimension to
information utilization. Free electronic text, images, software,
and many other forms of data are increasing the number,
volume, diversity, as well as the number of server/host.
Internet means free access, and has been, up till now operated
by the "Internal Principle" that is fundamentally different from
the "Conventional" commercial database distribution. Despite
a growing awareness and attempt to commercialize the
services and products within the internet, the market
information has been regarded as a public good in India
because of presence of large number of small and marginal
farmers who are unable to pay for information. Exploring on
* Deputy Agricultural Marketing Adviser, Dte. of Marketing & Inspection, Head Office, NH-IV, Faridabad
1
Promoting private sector involvement in agricultural marketing in Africa, FAO Agricultural Services bulletin 106, 1993.
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the internet for the farmers would provide wider marketing

opportunities & social acceptance for this new media, a
derivation from earlier, needs promotion. Basic functions of
transfer of knowledge, changing attitude, behaviour and skills
to the farmers of earlier media needs to be incorporated in
the new mediaInternet, so that it takes over traditional media
in the interest of the farmers.
7. Professor Eisuke Naito of National Centre for science
Information System, Tokyo, Japan defines information as "a
dynamic process in which a solution to a problem is gained
by consolidating knowledge judged to be matching the
solution seeking"2. Knowledge recorded and stored on paper
or any digital media is only in a static state without any action
for solution. Without decision making and the corresponding
action following a solution, the recorded knowledge and datagathering are not completely utilized. The agricultural
marketing information service envisages utilization of
recorded knowledge for solutionmaking it an information.
The distinct advantages of electronic media viz. instant access,
remote access, simultaneous access and high speed search
over volume of available knowledge form part of the internet
based marketing information service envisaged to be
developed.
8. A large amount of data with more accuracy can be stored
in computer, analyzed and retrieved within shortest possible
time. AGMARKNET will ensure dissemination of data
through network to any distance with the help of
communication devices for the benefit of farmers, traders,
consumers, etc. The improved communication system will
enable the producers to know about probable markets where
they can dispose of their produce more profitably. The traders
and consumers can also derive maximum advantage out of
their purchases at low communication cost. The modernization
of market information system, will lead to the efficiency in
the markets and increased participation of the farmers.
Objectives of the Network
9. The marketing information network, besides collecting and
disseminating market information on market arrivals and
prices, focuses on collection and dissemination of diversified
market related information to promote good agricultural
marketing practices to help farmers in better price realization
out of the sale of their produce. The objectives of the system
are to :
(i)
Establish a nation-wide market information

network for speedy collection and dissemination
of market information and data for its efficient and
timely utilization.
(ii)
Facilitate collection and dissemination of

information related to better price realization by
the farmers. This covers (a) market related
information such as market charges, transactional
methods, market functionaries, market laws, etc.

(b) price related information such as minimum,
maximum and model prices of varieties and
qualities transacted, total arrivals and dispatches
with destination, marketing costs and margins, etc.
(c) Infrastructure related information comprising
of facilities and services available to farmers with
regard to storage and warehousing, cold storage,
direct markets, grading, rehandling and repacking,
etc. (d) promotion related information covering
accepted standards and grades, packaging,
labelling, sanitary and phyto-sanitary requirements,
pledge finance, marketing credit and new
opportunities available in respect of better
marketing.
(iii)
Sensitize and orient farmers to respond to new

challenges in agricultural marketing by using IT
as a vehicle of extension.
(iv)
Improve efficiency in agricultural marketing

through regular training and extension for reaching
the region specific farmers in their own language.
(v)
Provide assistance for marketing research to

generate marketing information for its
dissemination to farmers and other marketing
functionaries at grassroot level to create and
ambiance of good marketing practices in the
country.
10. The internet based information system aims at providing

"single window" service, catering to diversified demands of
information. It will facilitate information sharing and
development of data infrastructure for enterprises, industry,
farmers, policy markets, academic organizations, government
agencies, etc. With development of information and data
infrastructure market places will perform role of information
service providers to expand markets. It will encourage
information exchange and dissemination for the benefit of
farmers and other market participants as well. Online
marketing information service will connect distant markets
and promote the efficient marketing in times to come.
Components and Contents
11. The components and contents of the system include :
(a)
Supply and installation of the hardware at

individual market places, State Agricultural
Marketing Boards/Directorates.
(b)
Development of software to be used by market

personnel in providing information.
(c)
Development of websiteAgmarknet portal at

national level : www.agmarknet.nic.in
Status and Opportunities of Database Development in Asia and Pacific, Asian Productivity Organisation, Tokyo, 1995.
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(d)
Training market personnel in (i) handling of

hardware and Agmarknet software, (ii) research
and analysis and (iii) refresher training.
(e)
Internet connectivity to individual market nodes
(f)
Development of state level portalssupply of

servers to state level Director of Marketing or State
Agricultural Marketing board.
(g)
Interactive workshops with Agmarknet nodes

personnel, state authorities, market participants and
marketing related agencies.
(h)
Preparation of 'Atlas of Agricultural Markets'

providing information in respect of each
commodity, major areas of production, movement
and storage and of market and consuming centers,
in a way useful to the users.
(i)
(j)
Preparation of commodity profiles for all major

commodities outlining the market requirements in
terms of quality, standards, labelling, packing,
storage, transportation, regulations, taxation,
warehousing, forward and future markets etc. in a
user friendly format.
Knowledge transfer systemcommodity profiles
containing entire market related information for
important commodities would be put on CD for
mass dissemination in areas where there is no
internet connectivity. Information in CD would be
in local languages with multimedia features to
enable transfer of knowledge to growers/traders.
The CDs will contain information for each
commodity in respect of :
(k)
Research and Updationthe knowledge

emanating from research studies conducted for
analyzing the prospects and opportunities for
agricultural marketing both at domestic and
international level will be uploaded periodically
on Agmarknet portal for dissemination.
(l)
Net information in Regional languageThe State

Agricultural Marketing Boards/Directorates of
marketing will periodically down load advisory
information generated at national level, formulate
strategies, translate it into local languages and
upload the same onto the state level portals to
facilitate market led extension to farming
community in local language through internet.
(m)
Receiving daily information on arrivals, prices etc.

from market centers through e-mail and uploading
it to Agmarknet portal for daily display on the
website, freely accessible to all.
(n)
Generation of reports based on analysis of data

available on the portal at national, state as well as
market level.
(o)
Develop mechanism to transform information on

portal into practically useful manner for farmers,
facilitating market-led extension.
(p)
Several Ministries in government of India take

decisions directly affecting the process of
Agricultural marketing in the country. Several
central institutions set up by government of India
viz. National Cooperative Development
Corporation (NCDC), National Agricultural
Cooperative Marketing Federation (NAFED),
Tribal Cooperatives Marketing Federation
(TRIFED), National Dairy Development board
(NDDB), National Horticulture Board (NHB),
Agricultural Produce Export Development
Authority (APEDA), etc., are directly involved in
implementing programs to strengthen agricultural
marketing in the country and to help farmers in
advantageous marketing of agricultural produce.
Then there are Commodity Boards and Export
Promotion Councils to promote export marketing.
All the relevant programs and policies of these
institutions need to be disseminated to the farm
producers and the target groups to enable them to
take full advantage of newer opportunities made
available by the Government. Many of these
organizations have their independent websites
hosted through NIC or other internet service
providers. The Agmarknet portal will provide
linkages to these sites to access marketing related
information to all market players through a single
source.
important producing areas and volume of

commodities grown;
important varieties in demand in national and

international markets;
phyto-sanitary standards, grading and

packaging requirements;
wholesale and retail outlets and important

trading and consuming centers;
marketing regulations related to the

commodities;
facilities for direct marketing to consumers and

processing units;
availability of institutional credit, storage, cold

storage & warehousing;
professional agencies providing marketing

services; and
marketing related schemes of the government

and public sector organizations.
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Administration of the Scheme

12. The agencies involved in execution of the agricultural marketing information network, with their responsibilities are :
Sl. No.
1.
Name of the Agency
Responsibilities
National Informatics Centre (NIC)A

Consultant on Turnkey Basis to the
Project.
The major responsibilities on NIC are as follows :
Procurement, Installation and maintenance of Hardware &

Software at the AGMARKET nodes, State Agricultural
Marketing Directorates/Boards and DMI;
Providing internet connectivity to the nodes;
Networking of AGMARKNET nodes, State Marketing

Directorates/Boards and DMI(Faridabad);
Imparting Training to the officials at all the three levels to ensure

effective use of the computing facilities;
Development and implementation of a customised application

software in the identified Agmarknet nodes and State Agricultural
Marketing Boards/Directorates and DMI to up-link data on daily
prices (Minimum, Maximum, Modal) [commoditywise,
varietywise, originwise, grade wise] and arrivals data
[commoditywise], to the respective State Marketing Boards/
Directorates and DMI Headquarters for upgrading in the
AGMARKNET server for Internet/Intranet Access;
Providing necessary support to the users for implementation of

the system;
Designating Nodal Officers in states for coordinating with the

users at AGMARKNET nodes;
Design and Develop Agricultural Marketing Portal for

DMI(Faridabad) as well as at State Levels;
Support services (Warranty and AMC) to AGMARKNET Nodes

for two years after the expiry of one year warranty period.
Restoration of Computer system at AGMARKNET Nodes due

to virus infection, mishandling, and voltage fluctuation. It will
also harmonize/integrate software package developed by the State
with Agmarknet to bring uniformity in data base and information.
Will manage national/state level portals developed under the
scheme.
Directorate of Marketing & Inspection

(DMI), Ministry of Agriculture, Govt of
India
(i)
Providing funds to NIC and State Governments for activities

envisaged under the scheme. This includes cost of hardware,
training, development of software, charges towards annual
maintenance & internet for first 3 years.
(ii)
Providing funds at market level for transforming information &

data generated on portal into education, training, extension
modules as practical inputs for farmers in realizing better prices.
Assisting research required to provide information through the
computer network.
(iii)
Liaison with the States in providing necessary technical inputs

(eg. Market wise, commodity wise, etc.) for System Requirement
Specification (SRS) by NIC.
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Sl. No.
4.
Name of the Agency
State Agricultural Marketing Boards/

Directorates of Marketing.
Market Places (Agricultural Produce

Market Committees)
Responsibilities
(iv)
To assist NIC for studying the requirements to facilitate

application development at Agmarknet nodes.
(v)
Liaison with Union Ministry, States, Market places & NIC for
implementation of the scheme and monitoring of its progress.
(vi)
Maintenance of national database on agricultural marketing and

the portal.
(vii)
To maintain, upload and update the national and state level

marketing portals, by consolidating data & information from
Agmarknet nodes in different States.
(i)
Identification of location of markets for connectivity under the

scheme based on importance of the market in commodity flow
patterns.
(ii)
Administration/implementation of the scheme at market level.
(iii)
Provide necessary administrative and financial sanctions for

markets for smooth implementation of the scheme.
(iv)
Liaison with State NIC units and DMI offices for monitoring of
progress, removal of impediments if any in day to day functioning
of the scheme.
(v)
Undertake research for which information through computer

network is to be provided to farmers. Transforming information
available for practical use by farmers & undertake market led
extension.
(vi)
Generate reports in local language at state level.
(i)
Provide site for installation of Agmarknet node comprising of

dust free computer room, power requirement, electrical points,
proper power connections, computer operator and a telephone
with STD facility. Bear operative expenses.
(ii)
Identify an employee to collect data and information every day

and send it to DMI through e-mail after training. Also ensure
correctness and authenticity of the data.
(iii)
Maintain site regularly & keep it operational. Liaison with State

Hqrs. To seek advice, solve operational problems.
(iv)
Ensure training of next incumbents in the event of transfer of

trained person.
(v)
Generate reports for local dissemination using customized

application software.
(vi)
Disseminate portal information to local farmers visiting market

places. Undertake marketing extension, transforming portal
information to practical use by farmers through Good Marketing
Practices & advice on better price realization under guidance of
State Marketing authorities.
(vii)
Remain in touch with Distt. Level NIC office for immediate

functional difficulties of the scheme/Agmarknet node.
(viii)
Bear expenses towards Annual Maintenance charges and internet

connectivity after 3 years.
(ix)
Use information network to undertake market led extension.
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Hardware and Software
Modest Beginning
13. A single vendor system has been adopted by NIC

for supply of hardware to facilitate system integration.
The vendor will supply and install the system : Computer,
Printer, Modem and Lotus Smart Suite at individual
Agmarknet node. He will also establish internet
connectivity through dial-up modem and demonstrate to
users on site. The vender will provide one year warrantee
and afterwards annual maintenance contract (AMC) for
subsequent 2 years. Hardware is test checked and certified
by the NIC before it is supplied to the nodes for
installation by the vendor. The software developed by the
NIC facilitate transmission of daily prices (minimum,
maximum & model) commodity wise, grade-wise,
variety wise, origin wise and arrivals data (commodity
wise) to the respective State Marketing Boards/Directorates
and DMI, Faridabad for upgrading in the Agmarknet
server for Internet/Internet Access. It will also facilitate
market-wise time series analysis of data. Since the
concerned Agricultural Marketing Departments and Boards
are to render service to the farmers through the network,
market portals are proposed to be evolved at appropriate
levels to facilitate information dissemination, so also
market led extension service. Agmarknet portal will have
linkages with state wise market portals during the years
to come under X Five Year Plan of the country.
15. Having developed Agmarknet portal and necessary

software, 170 markets identified by State Governments
were supplied with hardware during 2000-2001. Hardware
was installed and one week duration training of market
personnel at State level NIC units conducted in handling
hardware & software. The State Agricultural Marketing
Boards/Directorates numbering 40, involved in managing
the marketing system were also provided computer and
peripherals under the project. Personnel handling the
hardware at state Hqrs. were also trained in basics of
computer and handling software developed for the
purpose. Thus in all 210 nodes were covered in the
beginning year under the scheme. Indian agricultural
produce markets, by and large being multicommodity and
multifunctional, to begin with, 27 commodities have been
identified to report arrivals and wholesale prices. These
commodities are :
Networking
14. The Directorate of Marketing & Inspection, Faridabad
has been equipped with (i) one State-of-art FTDMA KU
Band VAST, (ii) a powerful computer server, and (iii)
software tools to facilitate the development of Agmarknet
as an INTRANET over NICNET. Most of the initially
developed nodes have already been linked to NICNET for
up-linking data, via Dial-up connection, through e-mail
services. Wherever feasible the internet connectivity will
be provided through local NIC offices. In other cases markets
obtain internet connectivity through any suitable local
Internet Service Provider (ISP) for up-linking the data. The
connectivity charges in such cases, are re-imbursed by NIC
to market committees, upto maximum of Rs. 3000/- per
annum as Internet Access Charge.The comprehensive data
base on prices and arrivals and other related aspects is
maintained at Agmarknet central data base for generating
various analytical reports. Necessary interface, using the
local language support, for transmitting the data will be
developed and customized at Agmarknet nodes, by NIC
state units. The training of marketing personnel under the
scheme is conducted by State level NIC units under
instructions from the NIC Headquarter, New Delhi.
Development Timetable
The development timetable for AMIS is indicated at
figure-1.
Cereals : Wheat, Maize, Paddy, Rice, & Sorghum.
Pulses : Bengal Gram, Red Gram, Green Gram,

Black Gram.
Spices : Ginger, Garlic, Red Chillies.
Fruits : Mango, Apple, Orange, Banana, Pineapple,

Grapes.
Vegetables : Onion, Potato.
Fibres : Cotton, Jute.
Oilseeds : Groundnut, Mustard, Soyabean,

Sunflower, Sesame.
But, the application software "AGMARK" facilitates for

all commodities being transacted in wholesale markets
for their use and analysis.
16. During the year 2001-2002, 600 places-573 Agmarknet
nodes, identified by the States and 27 DMI Offices were
covered under the scheme. Supply & Installation of
the hardware and training of personnel, however spilled
over to 2002-2003. Training in all States has been
completed by NIC. Installation of hardware at 700 nodes
have been completed & work at remaining nodes is likely
to complete by end of the financial year. Two interactive
workshops were held, one in February 2001 and other in
March 2002 with State Government officials, State level
NIC officers, DMI officers and representatives from market
places covered under the information network. State level
DMI officials have also been provided with computer
and internet facility to monitor the website. An individual
market enters the data in the prescribed format, using the
customized application software "AGMARK". The
information is either sent through State Govt. or direct to
DMI head Office, Faridabad. From Faridabad it is
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uploaded to the portal. The information flow is indicated

below :
17. The data from DMI Hqrs. is transferred to portal twice

in a day, first at 11.00 AM and then at 16.00 hrs. every day,
except on market/public holidays. As on 31.01.2003, out of
the total market centers covered under the scheme, 400
have become operational and send data to the portal. On an
average 300 markets are reporting fairly regularly to the
portal information on arrivals and prices. Inadequate
availability of Local Internet Service provider (ISP), in many
places, is delaying the internet connectivity at market centers
especially located in economically weaker/backward states.
Regularity in reporting data everyday to the portal is
observed by some 200-250 markets. However, there is a
time lag of 24 hours in reporting from some of the markets.
Efforts to streamline data reporting are made by the State
officials and DMI takes up regularly with the States progress
in this regard.
System to become Service
18. The efforts during 2000-2002 (IX Plan) remained
confined in its scope to collecting data on arrivals and
prices in respect of market transactions in wholesaleregulated markets. In order to facilitate market access of the
farm produce to larger markets and make the information
network system a service to the farmers, (i) the scope of
data collection and dissemination is expanded and (ii)
mechanism to translate the information into practical use
by farmers in realizing better prices is included during the
X Five Year Plan (2002-2007). The scope of information is
enlarged to provide farmers information with regard to
requirements of pack-size, packaging material, marketing
charges/costs, in domestic buying markets, facilities available
to farmers in destination market to schedule the produce to
suit buyer requirements, market rules & regulations of
destination market, if located outside the state, quantifying
time frame of supply, etc. Information on nationally and
internationally accepted standards, sanitary and phytosanitary conditions, etc. would also be made available to
facilitate direct marketing/greater market access.
19. The scheme provides for focused research required to
sensitize and orient farmers to respond to new challenges
though regular education, training and extension activities.

Market Committees, under the guidance of State Marketing
Authorities will design and conduct market-led extension
translating information from the network to practical use
and advice the farmers. Imparting knowledge at grassroot
level in areas such as market driven production program,
post harvest management, availability of marketing finance,
facilities for quality assurance and standards, grading,
certification, packaging, storage, transportation, contract
farming, direct marketing, alternative markets including
forward & future markets, commodity exchanges etc. is
envisaged under the information system. Training and
educational modules will be prepared in these areas after
proper research for reaching the region specific, crop specific
farmers in vernacular languages. Education, training &
extension related to Good Marketing Practices has therefore
been added to component of the earlier IX Plan activities
under "Agricultural Marketing Information Systems
Network", and re-designated it to "Marketing Research and
Information Network" during the X Plan.
Financial Involvement
20. Setting up agricultural marketing information network
covering 810 nodes during 2000-2001 & 2001-2002 under
the IX Five Year Plan involved an expenditure of Rs. 99.74
million.* The modified and diversified system envisaging
market led extension approach, translating information
system into service and covering 2000 more markets during
X Plan (2002-20032006-2007) period has been estimated
to cost Rs. 350 million over a period of five years. This
comprises of Rs. 280 million towards hardware, training,
maintenance, facilitation of market nodes and portals and
Rs. 70 million towards marketing research, education,
training & service to farmers to enable them to use
information on portal towards better price realization.
Average cost for setting up & operationalising one market
node has been around Rs. 100,000.
Project Coordination and Feedback
21. For proper coordination of the implementation of the
system and receipt of feedback for corrections, improvements
etc. a committee has been constituted at State level comprising
of officers from State marketing Departments/Boards, State
National Informatics Center and Directorate of Marketing &
Inspection. The Committee meets every month to review the
progress & remove the operating difficulties. A State level
committee comprising of chiefs of State Agricultural
Marketing board, Directorate of Marketing and DMI,
government of India is responsible to go into aspects of
transforming information into user friendly advice,
preparation of teaching aids for education, training and
extension to facilitate better price realization by the farmers.
Provision for outsourcing of requisite expertise in any of the
activities from operation & management of market node to
translating information into practical use/advice is inbuilt in
the system. Implementation Committee consisting of
Agricultural Marketing Adviser & Joint Secretary
(Agricultural Marketing) to the Government of India, Director
*IUS $=Rs. 49/-
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Mahabir Singh
General NIC, Dy. Director General NIC, Principal system

Scientist NIC and Nodal Officer, Marketing Research and
Information Network in the Head Office of the Directorate of
Marketing & Inspection is responsible for operation,
management and coordination of the project.
22. While putting the data on website information suspected
to be incorrect, incomplete is withheld for that day.
Concerned market authority is approached through e-mail,
telephone to assert correctness & subsequently information
is uploaded. The officers located at DMI Head Office
Faridabad who upload the infromation to the portal takes
care that information displayed is correct to the possible
extent. With a view to provide profile of individual market
on the web, informing everything about the marketing
system & infrastructure available, the market committees
are provided with formats to provide it on line by themselves
and update it also subsequently. Interactive workshops
with State Governments, State Level NIC, Representatives
of market committees, officers of DMI and NIC working in
States provide feedback and coordination mechanism.
Difficulties Experienced
23. The main difficulties experienced during 2 years of
launching of the system are :
(i)
Lack of understanding about importance of
reliable & timely information in decision making
while marketing the produce at market as well as
producer's level.
(ii) Delay in supply and installation of hardware
owing to local difficulties/indifference on the part
of both vendorsuppliers and market committees.
(iii)
Inadequate availability of Local ISPs in different
parts of the country.
(iv)
Transferring of staff trained for the scheme
without training the substitute. At times vacancy
remains unfilled for considerable time, lack of
alternative arrangement in the absence of regularly
trained person.
(v)
Casual approach to collection and reporting of
data/information. Lack of due regard to
authenticity of data.
(vi)
Irregularity in reporting of data. The number of
days a market reporting data varies from 1 to 25
days. Intermittent supply of data affects the
credibility of the portal.
(vii)
Tendency to discontinue reporting of data even
in case of minor faults or requirement of minor
investments in repairs, etc. or train personnel to
report data in case of need.
Future Perspectives
24. The scheme is considered as an important flagship of
the Government of India Schemes and efforts are afoot to
make it of real use/service to the farmers. It is hoped that
in course of time it would be a on-line marketing information
service useful to all the stakeholders in agricultural marketing
system of the country. It has an immense potential to service
all the market participants to face the new challenges

emerging out of liberalization and globalization of
agricultural sector.
25. Providing facility of electronic trading or e-commerce
on the market information portal to enable producers to
directly transact business with the buyers. This would enable
increasing volume of direct trading in standardized quality
products across the country, benefiting both the consumers
as well as the producers.
26. As trade participation grows with reduced trade barriers
and development, a countrys ability to meet and apply
sanitary and phyto-sanitary standards become more
important for market access and domestic consumers.
Applying such standards means building effective systems
to control or eradicate plant and animal diseases and to
ensure the safety of exported and imported food products.
Hazard Analysis and Critical Control Points (HACCP)
methodology is increasingly being implemented world-wide
to improve food safety and reduce the incidence of food
borne illness. I.T. has to play a significant role in the
dissemination of animal and plant health and food safety
sandards and regulations to farming community and other
people involved in the process of agricultural marketing to
enhance competitiveness of agricultural produce in the
liberalized market.
Conclusion
27. Today, virtually every business, educational institutions,
government agency, advertising agency, publishers and
newspapersany organization or individual whose very
existence depends on fast and accurate informationdraws
upon vast store houses of knowledge contained in the worlds
on-line database. Online information retrieval becomes
possible through computer network. Computer networks and
software technology are developed to electronically store,
search, retrieve and distribute millions of pages of
information and data instantaneously and facilitate
information empowerment to numberous persons
simultaneously.
28. Introduction of economic reforms, ushering in
liberalization policies, in the country has brought new
challenges to the marketing system including information
requirements. There are several areas of agricultural
marketing with farmers need to be fully familiarized in
order to improve price realization. Important areas amongst
these are standardisation and grading, packaging and
labelling, storage and warehousing, marketing infrastructure
including direct markets, SPS and marketing regulations,
forward and future markets and export markets. Awareness
on the part of farmers in each one of these areas will enable
to plan their production and sale in a manner economically
most advantageous to them. Advancement in communication
and information technology has made the world a smaller
place and a larger market at one go. To fully utilize the new
emerging trade opportunities for the benefit of farming
community internet based agricultural marketing information
service is considered sine-qua-non.
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Mahabir Singh
Agricultural Marketing Information System in Myanmar

U KYAW MYINT*
Introduction
griculture sector is dominant sector in Myanmar

economy. the countrys population is estimated to be
51 million of which 75 percent of population live in rural
area and their livelihood mainly rely on the agriculture and
livestock farming.
2. Myanmar has unique diverse ecological conditions and
for the forest-clad mountain, plateau, rivers, and vast plains.
Based on the agro-ecological zones, the country can be
divided into four major regions : delta region, central dry
zone region, coastal region and hilly region. Among the
regions, delta region and coastal region are located in the
Lower Myanmar and the remaining regions in Upper
Myanmar. There are three seasons: the hot and dry season
lasting from mid-February to mid-May, the rainy season
from mid-May to Mid-October and the cool season from
mid-October to mid-February.
3. During the rainy season, the southwest monsoon is the
major source of rainfall for the country. In addition to that,
it has not only many altitudes but also a wide range of
agro-ecological zones. thus, a large number of food and
cash crops are grown and the same crop can be produced
in different season. The best-known example is production
of green gram in central dry zone region in the rainy season
and in delta region in the cool season. The clearest example
is production of tomato, cabbage and cauliflower in the
monsoon season in highland area and in the cool season in
lowland area. Thus, major crops are available in the market
year-round.
4. Agricultural marketing remained regulated by the state
under the centrally planned economic system lasting about
a quarter to century. In 1988, the government adopted the
market oriented economic policy, gradually withdrawing
from direct involvement in agricultural marketing. Since
then, private sector comes to a play a larger role compared
to previous era.
5. The government monopolized rice marketing during the
centrally planned economic system, which lasted from 196263 to 1987-88. In 1988, the government has been steady in
its direct involvement in rice marketing. Presently, the
domestic marketing of rice is partially liberalized, while
rice export is still in the hands of government.
Major Agricultural Produce
6. In Myanmar, prominent agricultural produce in terms of
domestic marketing as well as export marketing are rice,
maize, wheat, pulses, culinary crops, oilseed crops,

vegetables and fruits which are summarized as follows :
7. Rice : Rice is the staple food for 51 million people of the
country. In addition to that, surplus of rice is exported to
obtain foreign exchange earnings to some extent. Thus, rice
is the most important crop to provide the growing demand
of domestic utilization. The surplus of rice is exported and
the export volume in 2001-2002 was 1 million metric ton.
8. People in Myanmar consume rice not only as staple food
for daily diet but also rice-based traditional snack such as
vermicelli, rice cake, rice noodle and sticky rice etc. The
rice consumption level in Myanmar is quite high, estimated
200 Kg. Per year. Generally speaking, rural people tend to
consume more rice compared to urban dweller. The annual
income threshold at which consumers start substituting
higher quality and more varied foods for rice is estimated
at round US$ 1500. This income threshold has not yet been
reached in Bangladesh, China, India, Indonesia, Myanmar,
the Philippines and Vietnam. Thus, rice is designated as
national crop in Myanmar to highlight its great importance.
9. In domestic market, the demand of rice is regarded as
relatively price inelastic. That means demand does not
change very much in response to price change. According
to the market reconnaissance, even though the rice price
goes up, consumers do not make significant reduction in
quantities consumed. By contrast, if the rice price goes down,
consumers can shift from the low quality of rice to good
quality one depending on the individual income and
preference.
10. In the domestic market, if the rice price starts to increase,
there is a tendency that quality of rice demanded by
consumers is also on the increase in the short term. The
reason is that some consumers in urban areas expect further
increase of rice price and try to purchase more than normal
consumption volume to secure the family requirement.
11. For the country as whole rice is surplus. However, central
dry zone region, hilly region and Tanintharyi Division in
coastal region located sourthern part of the country are not
sufficient in rice. Thus, rice from surplus area is marketed
to deficit area.
12. Maize : it is used as feed for poultry farms and
some are exported. Consumers do not buy maize rather
the products made from maize such as chicken. In
Myanmar, maize is planted in rainy season and cool
season. Maize planted in monsoon season contributes 80
*Consultant Myanmar Agriculture Service, Ministry of Agriculture and Irrigation, Yangon, Myanmar.
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percent of the countrys area sown. Some surplus of maize

is exported.
13. When newly harvested maize is coming to the market, local
traders prefer to buy the maize, which has 14 per cent of moisture
content. The reason is that if maize is too damp at the time of
purchasing, it will lose weight through drying out.
14. Wheat : Due to the limitation of agro-ecological zones,
wheat cannot be widely grown in this country. Major
producing area of wheat is located in hilly region and central
dry zone region. It can be grown in only cool season in
Myanmar. The countrys wheat production cannot match
the requirement of domestic utilization. Thus, wheat is
imported.
15. Pulses : Pulses are one of vegetable protein sources for
domestic consumption. Black gram and green gram are
consumed as sprout bean and pigeon pea is used as dhal.
The different types of soybean are marketed as bean card
(touhou), soybean milk and fermented soybean in the
domestic market. Most people in this country consume
garden pea as snack. Chickpea is consume as dhal and
many kinds of snacks.
16. The countrys pulses production and export volume have
increased dramatically during the market oriented economic
policy. it accounts for a lion share of export value in
agriculture sector. Pulses are mainly exported to India,
Indonesia, Europe, Middle East, Korea, Pakistan and Japan,
etc. by overseas trade. Some pulses such as green gram,
black gram, cowpea, rice bean, lablab bean and butter bean
are exported to China by border trade. Presently, the
countrys pulses export volume in 2001-2002 reached over
1 million metric ton.
17. Oilseeds Crop : Oilseeds crop are important for local
oil mills. There are five major oilseeds crop : groundnut,
sesame, sunflower, niger and mustard which are grown in
Myanmar. Sesame shares the largest sown area followed
by groundnut, sunflower, mustard and niger. Oilseeds crop
are grown in rainy season in central dry zone region and in
cool season in Delta region. The demand of oilseed crops
such as groundnut and sesame and niger are prominent

export items for the country.
18. Edible Oil : Edible oil is considered as the second most
important item after the staple food of rice. Although the
countrys edible oil production increases substantially, it
still does not meet the growing demand. To bridge the gap
between supply and demand, palm oil is imported from
neighboring countries, mainly from Malaysia.
19. In domestic market, there is a choice amongst groundnut
oil, sesame oil and supplemented palm oil. Imported palm
oil is accounted for over 100 thousand metric tons. Besides,
palm oil in 10 viss can from neighboring countries can be
found in the market. With regard to edible oil price
groundnut oil is the most expensive while palm oil is the
cheapest in the domestic market.
20. Culinary Crop : Onion, dried chilli, garlic and potato
are known as culinary crop. Among these crops, large
quantities of onion are exported to Malaysia, Indonesia and
China, etc. In addition to that, it is exported to China by
border trade. Only a small quantity of dried chilli is marketed
to China and Thailand by border trade.
21. Vegetables :Vegetables are perishable crop and cultivated
mainly for domestic consumption. In Myanmar, vegetables
can be grouped into two according to the origin of produce,
highland produce and lowland produce. The market price
fluctuates widely depending on the day-to-day supply and
demand volume. At times, over supply will force down
market price quite abruptly. Due to the attractiveness of
tourism business, off-season production of vegetables and
high value crop production is demanded by hotels and
restaurants. For example, squash, sweet pepper, cabbage
(red color) are produced in the surrounding areas of Yangon
City and Pyin-o-Lwin in Mandalay Division.
22. Fruit : Fruit production is also mainly targeted for
domestic consumption. Some fruits such as mango, plum,
watermelon and muskmelon are exported to China by means
of border trade. The prominent highland produce of fruits are
mandarin, pear, orange and apple etc. and lowland produces
of fruit are banana, durian, mango steen, pomelo, mango and
rambutan, plum, watermelon and muskmelon, etc.
Table-1
Major Crop Production, Surplus and Deficit Situation by Region
Region
Major crops
Surplus
Deficit
Delta region
Rice, pulses, oilseeds crop, jute, dried

chilli, lowland vegetables and fruits.
Oilseeds crop, pulses, onion, dried chilli,
garlic, maize, cotton, lowland vegetables
and fruits.
Rice, rubber, palm oil, lowland fruits such
as durian, rambutan and mangosteen, etc.
Rice, wheat, maize, pulses, oilseeds crop,
potato, highland vegetables and fruits.
such as apple, pear, mandarin and avocado
etc.
Rice pulses, lowland vegetables,

fruits and dried chilli.
Edible oil, sesame, maize,
lowland fruits.
Edible oil, onion, garlic and potato,

wheat.
Rice, wheat.
Rice, rubber, lowland fruits.
Rice, edible oil, pulses, culinary

crop, wheat.
Rice, edible oil, onion and some
pulses.
Central dry zone region
Coastal region
Hilly region
Union
Wheat, maize, pulses, highland

vegetables and fruits.
Rice, pulses, sesame, niger, onion,

dried chilli, maize and some fruits.
Wheat and edible oil.
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Agricultural Marketing System
23. The domestic marketing system is a finely tuned cooperation between farmers, primary collectors (village
brokers), collectors, town wholesalers in medium-sized
towns, largescale wholesalers in major markets in Yangon
and Mandalay city and traditional exporters who involve in
border trade with China, Thailand, India and Bangladesh.
24. The processing is required to transform from some
agricultural produce such as paddy, wheat, oilseed crop,
some pulses to rice, wheat flour, edible oil and split
chickpea, etc. For this, small-scale millers in rural areas
and large-scale millers are important role in domestic
marketing system. For example, large-scale millers purchase
paddy from farmer and milled rice is marketed to rice
deficit areas. Rice farmers in rural areas rely on smallscale mills for their family consumption and marketable
surplus.
25. A well-established pattern of inter-State/Division trade
flow can be found in the domestic marketing system, for
example, rice from Lower Myanmar, the largest rice surplus
area, to the rice deficit area of central dry zone region,
pulses and oilseeds crop in the opposite direction and
highland vegetables during the monsoon season from
Southern and Northern Shan State to the major markets in
lowland areas. The clearest example is seen that when
demand of pigeon peo increases from India, it moves from
Mandalay, the second largest City of the country, and major
producing areas in the central Dry Zone region of Yangon
market for oversea trade. The flow of commodities is highly
related to the export opportunity open up, for example, the
flow of onion from Yangon and Mandalay market to border
post when demand from neighboring countries is high. In
addition to that, pulses, onion and oilseeds crop from
Mandalay market and other markets in central dry zone
region normally moves to Yangon market and will be partly
diverted to Muse, when Chinese demand picks up.
Maize
Oilseeds crop
Pulses
Vegetables
-Tomato
-Cabbage
-Cauliflower
-Carrot
-Green chilli
-Snake gourd
Fruit
-Mandrain
-Durian
-Pear
-Banana
-Plum (Taiwan
variety)
Table 2
Marketing Unit Adopted by Traders and Exporters
Commodities
Marketing Unit
Wholesale
1
Rice
2
30 viss bag
Retail
3
One basket +
Pyi+
Tin+
Export
4
Metric ton
3
Viss
Viss
Viss
18 viss crate
20 viss crate
Piece
Piece
Viss
Viss
Bundle
Viss
Piece
Piece
Viss
Viss
Piece
Viss
Piece
Viss
Bunch
Cupboard crate
Piece
Piece
Piece
Hand
Piece
Product Quality
27. In domestic market, prices for different qualities vary
widely. For example, exported pulses are graded depending
on size, special quality (SQ), Fair Quality (FQ) and Fair
Average Quality (FAQ). Onion is graded depending on size:
big size (4 cm), medium size (3-4 cm) and small size (2
cm), which were introduced by onion exporters to meet the
demand of importing countries. For example, small size of
onion is preferred by Malaysia and Indonesia.
Table-3
Quality of Pulses and Onion for Export
Commodity
Quality
Size
Black gram and green gram
Special Quality (SQ)
3.25 mm
Gram
Fair quality (FQ)

Fair Average Quality
(FAQ)
2.75 mm
2.25 mm
Onion
Big size
Medium size
Small size
4 cm
3-4 cm
2 cm
28. A purchase pulse without cleaning and grading is called

raw stage. In domestic market to meet buyers demand,
exporters use machine for cleaning and grading to obtain
Ready cargo (RC) stage. For this, there is a slight reduction
in weights ranging from 2 to 2.5 per cent. Thus, price of
RC stage is more expensive compared to raw stage.
29. Sesame without foreign matter contents and less Free
Fatty Acid (FFA) is purchased with a good price for the
purpose of Japanese market. Farmers can fetch a good price
if they supply good quality to traders.
30. Regarding rice, each rice variety has three different
qualities such as low quality (auka), medium quality (alat-sa)
18
4
Metric ton
Metric ton
Metric ton
Note : + 8 tins = 1 Pyi, 16 Pyis = 1 basket (volume basis)

1 Metric ton = 1000 Kg = 612.395 viss
1 viss = 3.65 lb. or 1.63 Kg., 30 Viss bag = round about
50 Kg
Marketing Unit
26. There are bewildering number of marketing units, either
on weight or volume basis or by piece, bundle and bunch
etc. the major and more expensive commodities are traded
on weight base. Local traders normally use viss (1 viss =
1.63 kg) while exporters adopt standard unit of metric ton.
Different marketing units based on dry commodities and
horticultural crop are shown in table-2.
2
Viss
viss
Viss
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and first quality (ahtat-sa). These qualities relate to the million

quality in the domestic market.
31. Some retailers sell to un-grade lowland tomato to
consumers. The reason is that some consumers themselves
prefer to choose the quality and size. It is found out that some
consumers select over-ripe tomato for cooking and semi-ripe
tomato for eating later in the week. In super market, marketed
vegetables are good quality however prices are a little bit high
compared to neighborhood retail markets of Yangon City.
bottle gourd, snake gourd, radish and Roselle etc.
Relatively high-valued mangosteen and rambutan are

packed by crate. However, bunches of banana are
covered by banana leaves, which are used as packaging
material for the protection of damage of bananas during
the transportation. High value of Durian is packed by
bamboo basket.
From major producing areas to urban wholesale market,

some traders put the highland produce of tomato packed
by crate as a base into the truck and cabbage and
cauliflower without packing on the top.
Product variety
32. In many cases, there are significant differences between
price for different varieties. With regard to staple food of rice,
Pawsan rice variety is the most expensive variety while
Ngasein rice is the cheapest one. Preference of consumers
vary depending on difference of variety, for example, local
variety of tomato has a little bit sour taste while hybrid variety
has more flesh and more thick skin. Thus, choice of consumers
on product variety is highly related to preference and
individual income.
33. Big size of green gram (pe-di-shwewah variety) and
normal size of green gram variety are available in the domestic
market, all of which command different prices.
Packing Method
34. The packing method of marketed crops depends on type
and sometimes variety of produce, high-value or low-value,
responsible to transport damage, road condition such as paved
road or unpaved road, distance between major producing area
and terminal wholesale market and expected delivering time.
The various packing methods are practised by farmers and
traders, which are as follows:
For dry commodities such as rice, maize, pulses and

oilseeds crop and normally packed by polyethylene bag.
Polyethylene net bags are used to pack for onion, garlic

and potato. The reason is that it is easy for ventilation
during the transportation period.
To pack dried chilli and pigeon pea, the normal practice

is gunny bags.
Cabbage and thick-skinned varieties of durian are

loaded carefully piece by piece on a truck without
packing. The reason is that, outer leaves of cabbage
can prevent transport damage.
With regard to highland tomato, local traders in major

producing areas use crate, which contains normally 18
viss (1 viss = 1.63 Kg.).
As for lowland tomato, some traders pack in Bamboo

basket or crate depending on the distance between local
market and wholesale market.
Low-value of lowland vegetables are delivered to

wholesale markets without any packaging, for example,
Supply situation
35. There is much variation in the supply situation by crop
season. Generally speaking, when newly harvested crops
begin to supply to the market, prices start to decline. For
instance, black gram and pigeon pea are harvested once a
year. As for green gram, it is planted as rainy season crop in
central dry zone region and as cool season crop in delta region.
Thus, traders and exporters start marketing activities when
newly harvested crops begin to enter the market. And some
traders store them for speculative storage. Before the new
crop harvest, prices of black gram and pigeon pea show a
steep price increase when demand of importing countries
increases.
36. For may crops, there are months of shortage when price
goes up and also months of over supply or glut when price
drops. Price of vegetable is highly related to the supply
volume. Normally it shows high price at the start of the season.
The reason is that quantity supplied to market is low compared
to the peak season. At the end of season, its price rises again,
but not to the same level as at the start. The main reason is
diminishing supplies in the market.
Farmers and intermediaries
37. Agricultural marketing is achieved by a series of process.
For transferring agricultural produce from farmers to
consumers, various intermediaries play important role in
domestic marketing system, which is highlighted in this
section.
(a) Farmers
38. Generally speaking, farmers in this country can be
grouped into three: small, medium and large farmers
depending on land holding size and working capital. Most
farmers have surplus of sale and store for family consumption
and seed for next planning season. With regard to farmer
marketing, the major key points are mentioned as follows:
Some small farmers well immediately part their crops

after harvesting. The reason is that they need working
capital to grow second crop in time before losses of
soil residual moisture. In domestic market, newly
harvested crops enter the market and prices start to
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decline. The reason is that they cannot take advantage

of the subsequent rise in the price of crop.
crops and sent them to other town markets. These activities

can be found in assembly market.
Most large farmers store marketable surplus in the

expectation of higher price in later season.
(d) Town wholesalers and large scale wholesalers
As regards sale, it is found out that some farmers sell

their crop at farm, and some deliver their crop to the
nearest town. For example, surplus of paddy is delivered
to rice mills and milled rice is sold to millers or town
wholesalers in medium-sized towns. After milling,
broken rice and bran are delivered back to village for
feed.
Some farmers sell to primary collectors who sell

farmers produce on behalf of the farmers and seek the
best buyers who pay the highest price in the town. For
this, farmers pay a certain commission to the collectors.
Selling the crop before harvest on the tree is observed

in fruits such as durian, mangosteen and mango etc. in
major producing areas. Some orchid farmers sell their
crop before harvest.
With regard to lowland vegetables, farmers whose farm
is situated near the town deliver directly to the market
for retailing. However, they are found as mobile retailers
in the market. Some farmers deliver the vegetables to
the collection point where collectors purchase them and
sent to big markets.
41. Most wholesalers take advantage of temporal arbitrage

and spatial arbitrage. With regard to marketing, some involve
in commission basis and some normal trading. Besides, some
involve in inter-State/Division trade and sell to market
wholesalers in the same town. Some large-scale wholesalers
supply the crop to exporters. Some important activities of
wholesalers are summarized as follows:
Generally speaking, town wholesalers and large-scale

wholesalers have shop, warehouse, permanent hired
labourers and telephone etc.
Some wholesalers do the business on commission basis

and some involve in normal trading. Some engage in
both commission basis and normal trading.
Some town wholesalers sell the crop, which is sent from

major producing areas, and receive a commission from
sale value.
Some large-scale wholesalers purchase crop from major

producing areas and supply to exporters.
Some town wholesalers supply crops to market

wholesalers in neighborhood markets and involve in
inter-State/Division trade.
For crop collection, some town wholesalers in major

producing areas employ with agents and pay
commission to agents for purchasing. Some are paid
fixed rate of commission based on number of
purchasing quantities. Some provide working capital
without interest during the crop season.
Some farmers deliver their vegetables and dry

commodities to the assembly markets (5-Days assembly
market), which can be found in highland areas.
In some cases, some farmers deliver their crop by oxcart or horse-cart or small tractors with trailer and other
means to a collection point or to the traders depot or
mills.
Regarding marketing units, paddy is sold with volume

basis in the village while millers purchase paddy at their
mills by weight basis.
As regards sale, some practice cash on delivery system

and late payment sale. The normal duration of late
payment basis is 1 to 2 weeks.
Regarding transfer payment of buying value and sale

value, most wholesalers rely on private bank;
For transaction, wholesale price is quoted by weight

base.
For agricultural marketing, most wholesalers use not

only their own funds but also bank loan. The bank
lending interest rate is 15% per annum and the
wholesalers can borrow loan for one year. For this,
borrowers need immovable properties such as land,
home, warehouse and mill. The assessors estimate the
immovable properties based on the prevailing market
price and bank lawyers verify the title clearance. The
borrowers prove title clearance of their immovable
properties, tax, business license, balance sheet of
business and fire risk insurance to obtain the loan. The
reason is that bankers consider the purpose of loan,
amounts, repayment, term and security.
(b) Primary collectors (village brokers)

39. Some primary collectors buy and sell normally; others
receive a commission from collectors who established in
nearby town. Mostly they purchase crop at the farm and take
advantage of the difference between buying and selling price.
When demand for certain crop increases in the big market,
collectors or agents or primary collectors take this initiative
and start buying at farm.
c) Collectors
40. Collectors purchase crops from farmers and primary
collectors based on weight basis and sell to town wholesalers.
For example, farmers in onion major producing areas deliver
to collectors who seek the best buyers in the same town and
sell the crop on behalf of farmers. For this, farmers pay a
certain per cent commission to collectors. Some collectors
come to 5-days assembly market to buy vegetables and other
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(e) Market wholesaler

42. Generally speaking, market wholesalers have stall in the
market and sell to retailers in neighborhood markets in the
city or in the same town. Mostly they purchase rice and edible
oil from millers in the same town and rice, edible oil, pulses,
onion, dried chilli, garlic and potato is purchased from town
wholesalers. Market wholesalers in Yangon and Mandalay
market sell highland and lowland produce of vegetables and
fruits and receive 10 per cent commission from sale value.
For highland produce, some market wholesaler in Thiri
Mingalar market in Yangon City provide credit. This credit
which includes seed and cash for buying cow dung, chemical
fertilizer, irrigation fees and insecticide is provided via
wholesalers to the agents and farmers in Southern Shan State
one of the hilly region areas. The reasons for providing
working capital without interest to agents is to assure the
supply of large quantity of highland produce continuously in
the market during the rainy season. Some market wholesalers
in Yangon provide advance payment to orchid farmers as well
as agents in Mon and Kayin State to supply the lowland fruit
such as durian, mangosteen and rambutan etc. the provision
of advance payment is based on long standing relationship.
(f) Market retailers
43. Some retailers have permanent stalls in the market while
some are mobile retailers who can be found in medium-sized
towns and small towns. Especially, vegetable farmers directly
sell their own produce to consumers. In Yangon and Mandalay
City, retailers in neighbourhood markets purchase dry
commodities from market wholesalers. For perishable crop,
retailers come to wholesale market for day-to-day selling.
The reason is that vegetables are required fresh for their
selling.
(g) Millers
44. Rice millers, edible oil millers, wheat millers and chickpea
millers play vital role in the marketing system. The important
functions are summarized as follows:
Rice millers employ with agents for the collection

of paddy and pay fixed rate of commission and
purchase paddy from farmers at mills. Some millers
involve in inter-State/Division trade and sell to
wholesalers in the same town. Most millers store
the paddy for milling during the monsoon rice
planting period to supply regular buyers. Custom
milling and normal milling are practised. Regarding
source of finance, own fund and bank loan are used
for rice milling activities and rice marketing.
Oil millers purchase oilseeds crop from collectors
and town wholesalers. Some use agents to purchase
the crop and some purchase directly from town
wholesalers and traders in crop exchange center.
They sell edible oil to market wholesalers in the
same town and involve in inter-State/Division trade.
Small-scale millers in rural areas practise custom
milling for farmers marketable surplus. For their

working capital they use own money and bank loan.
Wheat millers purchase the crops from collectors and

town wholesaler. It is found out that imported wheat
flour is mixed with local produce, which is sold to
the market with different brand names.
Chickpea millers purchase the crop from collectors

or town wholesalers and store it for their milling.
The reason is that chickpea can be harvested once a
year and it is cool season product. In the same town
millers sell mainly to market wholesalers and
retailers. Some millers involve in inter-State/Division
trade.
(h) Transport brokers

45. Transport brokers are intermediaries between traders (or)
millers and truck owners or truck drivers. Actually, they are
important to move the agricultural produce from local market
to terminal wholesaler market or transit market. Transport
brokers receive a commission from the value of transport cost.
For this, truck owners or truck drivers pay a commission to
transport brokers. Transport cost of per viss is lower for dense
(heavy) commodity and higher for bulky (light) commodity.
The reason is that the truck cannot be loaded its full capacity
for bulky commodity. Common and snacks etc. are bulky
commodities and pulses, sesame, rice and culinary crop etc.
are dense commodities.
46. As regards dry commodities, transport brokers arrange
to load the commodity from traders warehouse and deliver
them in time to arrive terminal wholesale market or transit
market or exporters in Yangon. As for perishable crop, their
responsibilities are to arrive in time to the wholesale market,
not to lose the quanity during the transportation period. If the
loaded truck breaks down on the way, they arrange to find
out another truck to deliver the crops. The reason is that the
quality of perishable crops can deteriorate if the transportation
time is longer than as usual. Transport brokers do business
for both road and river transport.
(i) Exporters
47. Exporters in Yangon involve in oversea trade and
prominent export items are pulses, oilseed crops, onion and
dried chilli. In Mandalay city, exporters engaged in border
trade with China and traded pulses, oilseed crop, maize and
fruits such as watermelon, muskmelon, plum and mango to
China. Some large-scale wholesalers supply agricultural
produce to exporters who arrange the deal with buyers from
neighbouring countries for border.
48. Exporters in Yangon have a network of regular contacts
in other markets, mainly Mandalay, Monywa, Pakokku,
Myingyan, Hinthada, Taunggyi and Pyay and collect the crop
from major producing areas. Some town wholesalers in major
producing areas purchase crop on behalf of the exporter and
receive a commission from buying value. In doing so, the
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town wholesaler take responsibility for quality and prices

which are agreed with exporters. They inform daily prevailing
local market price and purchase the requested quantity.
Afterwards, purchased crops such as pulses and sesame are
sent to the warehouse in Yangon. The most important thing is
to issue quality of crop according to the exporters request.
The exporters bear the purchasing value, cost for loading and
transportation, packaging material and 1 per cent commission
of buying value to the town wholesale.
Marketing cost and margin
Table 5
Marketing cost and margin
(Kyat/piece)
Particular
Farmer Collector
1. Production cost
49. Some people look at prices paid to farmers and compare

them with the prices consumers pay for the same product.
They accuse traders who are exploiting the farmers because
the retail price paid by consumers is higher than the price
received by farmers. Simple comparison of farmer prices with
retail prices is a poor indicator of marketing efficiency as it
does not take into account the cost involved in moving produce
along the marketing chain from farmer to consumer.
50. As we discussed above, marketing cost such as cost of
produce preparation, packaging material cost, handling,
transportation cost, product losses, storage cost, processing
cost, capital cost, tax and fees are occurred in marketing
process. To realize the marketing cost along the marketing
chain from farmer to consumer, the survey results are set out
in the table.
Table 4
Comparison of lowland cabbage price along the marketing chain
Particular
margin along the marketing chain, table 5 shows the

different cost and margin from farmer to consumer.
Lowland cabbage price

(Kyat/piece)
Percent on
retail price
(%)
1.
Price received by the farmer in

Oakpho township, Western part
of Bago Division
14.50
34
2.
Selling price of collector in

Oakpho Township
23.40
54
3.
Wholesale selling price in Thiri

Mingalar market of Yangon city
26.00
60
4.
Retail price by consumers in

Bongalay market, one of
neighbourhood markets in
Yangon city
43.00
100
Market
retailer
26.00
6.50
2. Buying price
14.50
23.40
3. Selling price
14.50
23.40
26.00
43.00
4. Margin (3-2)
8.90
2.60
17.00
5. Marketing cost
1.04
6.95
4.00
6. Net margin
6.96
1.95
13.00
12000
12000
12000
7. Turnover (Pieces)
25
Note : Production and marketing cost was 7.54 Kyats (6.50+1.04). thus net
margin was 6.96 Kyats (14.50-7.54).
51. It is found out that the domestic marketing system is to a

large degree based on trust between regular partners. This is
clear from the fact that selling on commission basis is very
common which are mentioned as follows :
Table 6
Commission basis selling and buying
Agricultural
commodity
Selling based on commission basis
1. Vegetables and fruits 10 per cent commission on sale value

2. Dried chilli
3 per cent commission on sale value
3. Onion
4. Garlic
5. Potato
6. Oilseeds crop
1.5 per cent commission on sale value
7. Rice
50100 Kyats/30 viss bag in Mandalay market

2 per cent commission on sale value in
Pakokku market
20 Kyats/30 viss bag in Pyay market
2050 Kyats/30 viss bag in Yangon market
The major findings are:
Retail price paid by consumers was 43 Kyat per piece

of lowland cabbage. However price received by farmer
was 14.50 Kyat per piece.
If we compare the farmer price and retail price, the

farmer interviewed in Oakpho Township in western part
of Bago Division received only 34 per cent (14.50/
43x100) of retail price.
In this case, there is a question for casual readers who

exploit the farmers. To realize the marketing cost and
52. For normal trading, profit margin is highly related to

turnover, buying price, selling price and marketing cost
associated with handling cost, transport cost, storage cost,
processing cost, packaging cost, capital cost and other costs
such as tax, fee and commission. Regarding profit margin,
the most important thing is that traders endeavor to make a
reasonable profit in most of their transactions. If profit from
agricultural marketing fall below a certain level, they would
relinquish agricultural marketing and invest their capital and
precious time in other business. For example, if a trader
deposits 100 Kyats in bank, 10 per cent of interest will receive
for a year. If a trader use 100 Kyats in his or her business
22
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wholesaler
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from which the profit margin is lower than bank interest, this
trading is not attractive for long term. This is one of the
parameters to decide the profit margin return to the
wholesalers in agricultural marketing.
53. Based on the marketing cost and margin survey, profit
margins are generally fairly low, thanks to much competition
among collectors, wholesalers and millers.
information of export demand, prices in major

producing areas and supply situation etc. Daily activities
start at 8.30 A.M. to 11.00 A.M. in this centre with the
exception of public holiday and Sunday in Yangon and
public holiday and Sabbath days (lunar calender) in
Mandalay.
For their marketing activities and price setting, traders

in other markets such as Pathein, Mawlamyine, Pyay
and Bago etc. in Lower Myanmar and Myingyan,
Monywa, Pakokku and Magway etc. in Upper Myanmar
gather market information from their regular trading
partners in Yangon and Mandalay markets. At the same
time they exchange their local market information with
Yangon and Mandalay wholesalers.
Town wholesalers and large - scale wholesalers have

telephone and mobile telephone for gathering of market
information and trading.
Market Information System

54. With regard to market information, there are two types:
current market information and historical information. The
current market information can help farmers and traders,
which are summarized as follows :
For farmers
To negotiate with traders
To know which market to supply
To know when to sell
(c) Exporters
To know where to sell
For traders
To know whether to store
(d) Activities of Market Information Service (MIS)
(a) Farmers
Exporters have regular contacts in other markets and

gather market information from major producing areas.
Access to export market information on prices plays a
crucial role to decide buying the crop. They have export
market information from regular buyers from importing
countries.
To plan production
For price negotiation with traders, most farmers rely

on the market information from the nearest town. To
negoatiate with traders for better price, some farmers
rely on bus or boat driver, extension workers, the
Agribusiness News distributed by MIS and
neighbouring farmers in the same village come back
from nearest town market.
Another information sources is agents who come to
village to buy the crop. In this case, farmers compare
prices offered by agents and primary collectors.
Weekly journal The Agri-business News which is

published and distributed by Ministry of Agriculture
and Irrigation.
Monthly bulletin of Department of Agricultural

Planning (Ministry of Agriculture and Irrigation) in
Myanmar.
Display of daily prices on notice boards at major

producing area of lowland fruits.
Distribute export market information to crop exchange

center (Traders and Millers Association)
Market information of prominent horticultural crops
are planned to broadcast for farmers and traders in the
near future.
Most farmers choose the best trading partners such as

honesty and reasonable price offered to them.
(b) Town wholesalers, large-scale wholesalers and millers
Up-to-date market information is essential for

wholesalers. For this, large-scale wholesalers and town
wholesalers find out daily market information in crop
exchange centre. For example, wholesalers and
exporters in Yangon city go to the Yangon Division of
the Chamber of Commerce and Industry (crop exchangeable centre) located in Bayint Naung Market. In
Mandalay, the recand largest city of upper Myanmar,
wholesalers go to Brokers, Merchants and Millers of
the Maha Kahtein Daw Association (crop exchange
centre).
In these centres, they made buying and selling based

on their crop samples. Besides, they exchange market
(e) MIS sites
In the first stage, daily price collection was conducted

in Yangon and Mandalay city, starting from January
2000. Afterwards, Ministry of Agriculture and Irrigation
endeavoured to expand MIS sites depending on
marketing activities of local wholesale markets, crop
exchange centre and millers. At present, MIS staff gather
market information including wholesale selling price,
rice millers wholesale buying price of paddy and
assembly market price from 12 MIS sites. For this,
information on MIS sites, MIS quoted price, frequency
(daily/weekly/time off price collection) and price
collection of agriculture produce are mentioned in
annexA.
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Historical Market Information of Horticultural Crop

55. As was discussed in the introduction, highland produce
of tomato, cabbage and cauliflower from Southern and
Northern Shan State is supplied to central wholesale markets
of Yangon and Mandalay City and other markets in lowland
areas. The reason is that these types of vegetable cannot be
produced in the rainy season. However, tomato, cabbage
and cauliflower can be produced during the cool season in
lowland area. Thus consumers in lowland area rely on the
supply of highland area through the rainy season period
from May to October. In the domestic market, traders and
consumers classify depending on the origin of produce;
Shan produce (or) highland produce and lowland produce.
56. Crop production in line with market demand is
important. If production is done without consideration of
marketing aspect, extension service, costly agroinputs and
valuable resource could be wasted. Historical market
information assist farmers to make decision for the best
time to produce, to manage the quantity supplied to the
market and to decide when sell the crop based on seasonal
price movements.
57. To study the seasonal price pattern of some vegetable
and fruits, MIS staff gathered daily price collection in Thiri
Mingalar Market, vegetable and fruit wholesale market in
Yangon City.
season, cabbage price declined sharply due to huge

supplies. Its price reached 15 Kyats per piece, which was
not covered the production and marketing cost for cabbage
growers. The main reason is oversupply production in
major producing areas. Thus cabbage growers encountered
negative margin due to sharp price decrease. At the end
of the season, its price declined again. In year 20002001, seasonal price pattern of lowland cabbage showed
continuous increase from peak season to the end of the
season. The reason is that cabbage farmer reduced their
planting areas based on the last years experience. Thus,
quantity of lowland cabbage supplied to the market is
lower than quantity demanded.
Box 1. Cyclical nature of production

If prices in one year are bad, farmers will
often respond by planting less in the next year.
This will lead to lower production and higher
prices, so encouraging more plantings in the
following year and a consequent fall in prices.
This cyclical nature of production and prices
is quite common. Successful farmers are
sometimes those who do the opposite to what
is being done by other farmers.
Andrew W Shepherd (FAO)
Lowland produce of cabbage

58. During the lowland cabbage season of year
1999-2000, its price in Thiri Mingalar Wholesale Market
showed high price at the start of season. During the peak
59. During the year 2001-2002, seasonal price pattern of

cabbage shows fluctuation however its price is low compare
to last year 2000-2001.
Seasonal price pattern of lowland cabbage in Yangon market
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Wholesale price of lowland cabbage (Kyat/piece)

Year
Nov
Dec
1999-2000
2000-2001
34
25
2001-2002
Jan
Feb
Mar
Apr
May
41
29
15
21
17
35
57
65
102
49
66
50
70
Note: Daily price collection was conducted in January 2001. In 2001-2002, untimely rain occurred
during the last week of October in lower Myanmar that led to delay planting of cabbage.
(b) Lowland produce of tomato
Seasonal price pattern of tomato shows high price at the start
of the season. Thus, earlier crop nearly always obtain the
highest price. At the peak season, its price went down due to
increase supplies in the market. Afterwards, the price

increased again, but not to the same level as at the start. The
same seasonal price pattern can be observed during three
seasons, from 1999-2000 to 2001-2002.
Seasonal price pattern of lowland cabbage in Yangon market
Wholesale price of lowland tomato in Yangon market (Kyat. 18 viss)

Year
Nov
Dec
Jan
Feb
Mar
Apr
May
1058
499
554
483
608
1061
742
693
656
1196
2324
973
1299
1529
1999-2000
2000-2001
1901
2001-2002
Note: Daily price collection was conducted in January, 2000.
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(c) Highland produce of Choko

During the rainy season, price of bottle gourd is on the
rise due to less supply from main producing areas.
Consumers use bottle gourd as gourd fritter, curried
chicken with bottle gourd and curried bottle gourd At
this time most consumers purchase choko in spite of bottle

gourd. It is because bottle gourd is a bit pricey.
Thus, some consumers make substitute buying. It is found
out that seasonal price pattern of choko is similar to that
of lowland produce of tomato.
Seasonal price pattern of choko (Local variety) in Yangon market
Wholesale price of choko in Yangon market (Kyat/ 10 piece)

Year
Jul
Aug
Sep
Oct
Nov
Dec
2001
151
125
95
77
99
104
2002
235
194
142
129
160
155
(d) Highland produce of avocado

Avocado is used for fresh juice and it is more demanded
by consumers in summer season. Supply period of
avocado accounts for nine months, from rainy seson to
summer season, Avocado is supplied from Southern Shan
State to Yangon market. Seasonal price pattern of avocado

shows that its price level at the end of season is higher
than that of the starting season. According to the market
reconnaissance, quantity supplied to the market is on the
decrease during the end of the season.
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Seasonal price pattern of avocado in Yangon market
Wholesale price of avocado in Yangon market (Kyat/ 10 piece)

Year
Aug
2000-2001
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
174
184
141
138
143
168
177
201
255
332
528
2001-2002
273
218
257
159
181
2002-2003
282
327
315
291
292
(e) Lowland produce of durian (local variety)

For this fruit, the prominent major producing areas are Mon
State and Kayin State. The seasonal price pattern of durian
showed high price at the start of the season. It reached the

lowest level during the peak season. After that, it increased
again at the end of the season, but not to the same level at the
start of the season.
Seasonal price pattern of durian (Local variety) in Yangon market
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Wholesale price of durian (local variety) in Yangon market (kyat/piece)

Year
Mar
Apr
May
Jun
Jul
Aug
Sep
2000
741
495
395
189
187
242
250
540
202
235
280
265
216
176
176
180
208
2001
2002
658
60. To advise farmers on production and marketing, MIS

staff and extension worker need to be aware of seasonal
price pattern. In some cases, higher price is advantage
to growers however sales are limited in the market. In
addition to that, oversupply production will force down
prices however lower prices do not stimulate sales. Thus

extension workers should advise to farmers to take
advantage of market opportunities depending on upto-date market information and historical market
information.
____
AGMARK STANDS FOR PURITY AND QUALITY

BUY AGMARK PRODUCTS
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Agricultural Marketing System in Bangladesh

MUHAMMAD FAZLUR REHMAN*
Introduction
Need for bridging Information Gaps for Farmers
3. An information service, which collects and disseminates

regularly information on prices and supply conditions of
produce supply to a range of markets, analyses that
information to provide farmers with advice on seasonal
trends and identifies products that are in demand on domestic
and overseas markets is need of the time. Current service
capability of Market Information System is very poor due
to following limitations :
he nature of the Agriculture Marketing System in

Bangladesh is rather complex which stems from the
fact that there are innumerable small farmers spread all
over the country, where marketable surplus or marketed
quantity of the crops they grow is very small. Collection
of these widely dispensed and small-marketed quantities is
bound to be costly and insufficient. There are almost 13098
(DAM study 2000) small, medium amd big sized markets
in the country. In Bangladesh except the activities performed
in connection with Public Food Distribution System (PFDS)
and agriculture price and marketing policy decision of the
Govt. the trade in all agricultural products is largely handed
by the private sector. The general agricultural marketing
policy of the Government is to allow free play of the market
forces in determining the price and encourage larger
participation of the private sector. One of the reasons for
the low price received by growers, particularly small farmers,
is lack of market information, which also results inwide
inter-market price variation. Improvement of agricultural
market information services is a necessary condition both
for domestic market efficiency and to integrate domestic
agricultural market with regional and international market
for sustainable development of agricultural sector as well as
to ensue countrys long run food security.
Agricultural Marketing Information System
2. The specific needs of the different market actors are :
FarmersIn short run: to reduce risk, negotiate with traders
and decide when or whether to harvest. In the long run: to
plan production, diversify and assess storage viability.
Common sources of farmer market information are personal
visit to market, other farmers, traders, contractor, extension
workers, market information services and local offices of
Director General of Food. Constraints of getting information
through personal visits include (i) time consuming and costly
unless going to market to sell produce; (ii) have a shortterm perspective; (iii) have information only about crops
they produce and markets they sell to and (iv) reluctance to
share information. The traders do not see in their interest
to provide accurate information to farmers. They only know
about the crops and markets with which they deal. Extension
workers are rarely trained to assist farmers in marketing.
As such they are unable to help farmers with long-term
production planning and, anyway, receive no advice on this.
Although much information is collected, little reaches

farmers;
Information that does reach farmers is often out of

date and not something they are able to use in a
meaningful way;
Even if reliable and up-to-date information provided

farmers have no way of knowing how to make use of it.
Possible Areas of Rapid Development

4. There is need for :
Rapid review of existing marketing systems and of

the needs of farmers and traders for market
information;
Identification of pilot markets and other sites where

information should be collected for immediate
dissemination;
Review of uses to which existing MIS data is put;
Computer purchase;
A market information service for Bangladesh, which

on a pilot scale accurately collects market prices and
speedily disseminate them to farmers and traders;
Greater targeting of DAMs analytical work to the

needs of farmers;
Development of an export intelligence capacity in

DAM;
Following strategies may be considered for improving the

present system :
Staff trained in data collection, dissemination and

analysis;
*Director General of Food, Ministry of Food, Bangladesh Secretariat, DHAKA (Bangladesh).
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Increased use of modern technology for data

transmission (e-mail and internet); processing,
dissemination and analysis;
Availability of suitable dissemination channels;
Farmers aware of how to use market information and

extension officers able to advise them.
Performance Evaluation and Possible Action
kheshari, mustard/rapeseeds, potato, onion,

garlic, ginger, turmeric, chilli, bitter gourd, okra,
barbate, cauliflower cabbage, tomato, carrot,
local bean, bottle-gourd, patal, bringal, pumpkin,
papya green, banana, pineapple, mango, jack
fruits, watermelon, litchi, guava, apple, orange,
ruhi, hilsha, urea and TSP.
(ii)
Reduce resources allocated to non-priority activities.

Critically examine existing activities in terms of;
Is all information that is collected eventually

disseminated?
Who uses the information that is disseminated

and does the level of use justify the expenses?
Seek additional, sustainable resources;
MIS should concentrate to provided up-to-date and

accurate prices;
Assist in recommending how to overcome constraints

to dissemination, in particular the apparent reluctance
of radio stations to broadcast prices;
Consider whether the new MIS should be centralized

or decentralized;
Advise on resource mobilization, both internal and

external.
The Marketing Intelligence Wing of the Departments

are responsible for processing of all price data
collected from different markets of the country. The
daily commodity prices of Dhaka City are little
processed except some checking in the market price
schedules by the City Marketing Officer. Price data
collected are then simply compiled into a daily price
list of Dhaka city. In other cities price lists are also
prepared in the same way.
Almost no processing is involved for the daily price
list on paddy and rice and another on wholesale
harvest prices for seasonal crops, specifically
prepared for radio broadcasts. However, regular
processing of weekly wholesale and retail prices is
done by four Research Assistants. Immediately
after receipt of the filled-in price questionnaires
they examine them under the close supervision of
an expericenced Research Officer and transform
them into a countrywide weekly price bulletin.
These weekly prices are then compiled into a
monthly bulletin. All such processing task takes
more than a month. Final output as weekly price
bulletins come out in about two months, which
could be drastically reduced through computer
processing and printing of price data.
Organisations Providing Marketing Information

5.
Market information comes from the public sector and

private sector sources. The information of the public
sector is well organized whereas private sector market
information flows are scattered and come through
some daily newspapers.
Processing of growers price data does not follow

any definite time schedule. Two Research Assistants
at present are employed for checking, processing
and compilation of data. They work under the direct
supervision of a senior staff member of the
Department. While analyzing growers price special
care is taken of price differences between wholesale
harvest price and wholesale selling price in different
markets. All collected price data are used to prepare
an Annual Growers Price news, which is not
published regularly. Its publication at present is
late by one year, because of lack of trained
assistants.
Public Sector Market Information System

Directorate of Agricultural Marketing (DAM)
(i)
Price collection
Daily prices from all city and district markets

for about hundred commodities, including
agricultural input markets and livestock
products.
Weekly prices of over 150 commodities from

70 market centers (city, district and other major
markets)
Daily harvest prices of seasonal crops.
Monthly growers prices for more than 25

agricultural products from 128 rural assembly
markets.
The selected commodities for wholesale and

retail price collection include rice, wheat, masuri,
Processing and analysis of price data
(iii)
Dissemination of price information

Price information is disseminated mainly in three
forms such as (a) Price Lists, (b) Price bulletins
and (c) Annual and Occasional price reports.
Sometimes, it also prepares short notes as policy
briefs for the concerned Ministries when
needed.
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Means and Frequency of Dissemination of Market Information

Sl. No.
Type of Price/Target Group
Medium
Frequency
1.
Farmers
Radio, TV, Newspaper
Daily or thrice a week
2.
Farmers
Posting on Notice Board in Marketing

Offices and in Markets
3.
Traders
Radio, TV
4.
Traders
Newspapers
5.
Consumers
Radio, TV, Newspapers
Weekly, daily or thrice a week
6.
Government agencies
Bulletin, Reports and Newspapers
Weekly./Monthly
7.
Non-Govt. Agencies,
donors and others
Bulletin, Reports and Newspapers
Weekly/Monthly
6. The daily price list of Dhaka city is regularly sent to the

Secretary, Ministry of Agriculture by noon every day. This
keeps the Ministry well informed of current market prices
and their price trend. Price lists of all the four cities are
distributed to different organizations inclusive of the radio
stations according to their mailling lists. Radio broadcasts
are basically meant to make people aware of prevailing
market prices of agricultural commodities. The copies of the
Dhaka price list are sent to eleven public and private
organizations. The Rajshahi daily price list is sent to 17 such
institutions for information and necessary action, if any.
7. The weekly price lists containing wholesle and retail
prices are collected on every Wednesday. They are checked
and edited by a senior officer. In case of any abnormal
price information classification are sought from the
concerned offices either through posted letter or telephone
where available. Such clarification and editing take more
than a week.
8.
The weekly price is bulletion distributed to 50
Government and non-government agencies and other
institutions who are expected to be using them for their
own purposes.
9. Annual Growers; Price News Bulletin is sent to the
Bangladesh Bureau of Statistics (BBS), which uses it for its
Statistical Year Books. It also uses price data for estimating
the countrys national income. The report is claimed to
have been distributed to several other organizations
particularly to research institutes. Maximum use of price
of data have been by the agricultural research institutes and
the universities. In recent years with the adoption of free
trade policies the private sector is also coming up in the
establishment of dairy and poultry farms as well as
processing industries in horticultural crops. In all such
commercial ventures almost every entrepreneur asks for
growers price of different inputs and outputs.
10.
The DAM, for the use of the Prime Ministers
Secretariat, also prepares another weekly wholesale price
list on food and daily essentials. The commodities included
in the report are mainly of (1) three types of rice, (2) flour,
(3) three pulses (mung, lentil and kheshari), (4) mustard

and Soyabean oil, (5) dry chillies, (6) onions, (7) sugar and
(8) salt. The report examines weekly price fluctuations in
different districts and tries to explain price changes in
different regions, experiencing increases and decreases in
prices. Its copy is also disseminated to the Ministry of
Commerce for appropriate action.
All prices collected by District Marketing Officer are

mailed and reach Head Office two weeks after mailing;
They are then manually compiled and analyzed by

Research Officer and other staff members who are
few in number. Thus processing activities take a long
time;
However, use of e-mail has already been started and

the time log would shorten;
Directorate General of Food

11. The Directorate General of Food under Ministry of
Food deals with very selective food grain items such as
coarse rice, paddy, wheat and maize. This department
closely monitors the market sitution during the lean period
and the harvesting period. Government tries to ensure the
floor price for the producers and affordable price for the
consumers. In this regards Director General of Food :
Collects daily and weekly wholesale and retail prices

of rice, paddy, wheat and maize from city and district
markets through its field offices located throughout
the country in sixty-four districts.
After monitoring the fluctuation of price level and

stock position in public warehouses, govt. then
intervenes the market by Open Market Sale (OMS)
operation or drives into internal procurement if
necessity arises.
The Food Planning and Monitoring Unit (FPMU)

12. The Food Planning and Monitoring Unit of the Ministry
of Food is trying to establish an Early Warning & Food
Information System (EWFIS) to help collection and
dissemination of this timely information. This project is
JanuaryMarch, 2003
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Mahabir Singh
conducted in collaboration with other organizations such

Bangladesh Bureau of Statistics (BBS) Directorate of
Agriculture Extension (DAE), Ministry of Food, Ministry
of Agriculture, Bangladesh Meteorological Department
(BMD), Directorate of Plant Protection, Bangladesh Krishi
Bank and Bangladesh Bank. An early warning system on
food supplies involves development of early forecast of crop
production as well as the continuous monitoring of other
indicators relevant to the emerging short and medium term
food situation. Such a system could contribute significantly
to a better understanding of the current food situation and
short-term outlook and facilitate the likely appraisal and
advance planning of import, procurement and stockholding
requirements in order to ensure the availability of sufficient
foodgrains and their equitable distribution throughout the
country. Timely information about damage to crops by
natural calamities could also make it possible to consider
mid-season corrective measures in regard to soil, water and
crop management.
13. Using GIS, the pre-harvest forecast of area and yield
is possible. The pre-harvest forecasting of crop production
are based on early reporting of acreage and forecasting of
yield rates on the basis of biometrics observations, such as
plant density and development. In the early stages of making
production forecasts it will be necessary to collect and
analyze data on all factors influencing crop output and makes
the best possible judgement. These factors are weather,
pest attack and other natural factors & progress of
implementation of development programmes, particularly
the use of inputs like water, fertilizers, improved seeds,
pesticides etc. and with regards to the area planted.
14. Monitoring the prices at wholesale and retail level
of essential commodities is crucial for the government to
decide to intervene or not in the market. In this case,
the most difficult issue is the determination of standard
qualities to be priced in a country where there are

numerous varieties of commodities available that have
not been standardized.
Management of the Database
15. There are several improvements that can be made in
the collection and the management of agricultural statistical
data. First of all the quality can be improved by improving
the sampling frame, using better equipment, and processing
the data locally using computers. The data collected in the
field is most often collected using paper forms and then it
is transferred to regional offices and then to the control
offices of the Directorate General of Food through
computers Dial Up Network where some of it is entered in
computers and processed. The availability of microcomputers
have these days facilitated entering the data in regional
centres and then having it sent to the capital using modern
means of communications. The officers in the regional
offices are being trained properly, which ultimately would
help also calculate regional statistics and maintain local
statistical series with a little additional effort.
16. There is then the issue of processing and publishing
the data. Ultimately data re-collected to provide information.
This information should be available timely both for the
domestic market and for the international market. For
example, the availability of price information will help agents
in the markets to decide how much to import or how much
to exports and from which country. As we know, market
globalization has helped to reduce price fluctuations. This
is the reason why sharing information between countries is
so important. Therefore, there is a need to create an
international database. Like for example a series of daily,
weekly or monthly prices that can be accessed easily. Today
this process is becoming increasingly easier thanks to the
information superhighway.
USE, AGMARK GRADED SPICES
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Agricultural Marketing System in China

YAN BO1
n China the information working on grain and edible oil

started very late. The importance of information would not
be fully displayed until 1993 when the transformation of the
grain distribution from the planned economy to market one
took place. Meanwhile with the fast development of
marketability of grain distribution, there were more and more
organizations and information products for serving the grain
distribution.
2. As the special organization of the Chinese government
serving national grain & oil market, National Grain and Oil
Information Center serves the State Macro Control
Departments, farmers, traders and manufacturers as well, and
provides information on market price, analysis and policy
tendency. Price information, including the prices of rice,
wheat, corn and soyabean, consists of wholesale price,
retailing price, producers quotation, platform price and port
price. The Center publishes the information with e-mail,
publication and Internet, Grain & Oil Daily News, Grain
Market Weekly Report, Oil & Oil Seeds Market Weekly
Report, Grain Market Monthly Report Oil & Oil Seeds Market
Monthly Report, Grain Weekly Prices Report and Oil Weekly
Prices Report are released by e-mail, Grain & Oil Seed
Information for China & Foreign Market and World Grain &
Oil Market Monthly Report by publication, and information
on the Chinese Grain Information Web.
3. The major functions of the Chinese Grain Information
Web (www.grain.gov.cn) are (i) To collect and publish the
grain information on policy, price, market tendency; (ii) To
analyze and forecast, supervise the changes of the grain
and edible oil price and (iii) To make analysis on sorts of
subjects concerned with agriculture. Its serving targets are
organs of state-owned grain department, grain enterprises,
state-owned grain depots and other trade agency. Its main
contents include the following :
(i)
Grain and edible oil price both at home and abroad

consists of daily price report on grain and edible oil
retailing markets in some areas, weekly price report
on national grain and edible oil retailing markets,
current price on grain wholesale markets, price on
domestic major ports and stations, future price of
domestic grain, daily report of future price on
AND
BU YIBIO.2
commodity exchanges in Chicago, Canada, Tokyo,

Kansan and the price informatrion of US soyabean,
wheat and feed corns;
(ii)
Analysis of price changes and prediction of tendency

on grain edible oil and feed market at home and
abroad;
(iii)
Policies and regulations, mainly including the

relative grain policies and regulations from the State
Council; the relevant procuring and selling policies
from the State Development Planning Commission
the State Administration of Grain and the Provincial
Grain Bureaus; relative policies from other Ministries
and Commission; State policies on grain export and
import;
(iv)
Situation and trend of grain industry in every province in China;
(v)
Information on agricultural production and weather;
(vi)
Introduction of grain brand and refind grain products, and publication of supply and demand
information, commodity advertisements and
introduction of enterprises.
4. The information on the web is mostly collected from the

first hand data of provincial information websites on a regular
period of time, and reflects the latest trend of domestic and
external grain and edible oil market timely and correctly. Thus,
the timeliness, accuracy and authority of information on the
web are ensured. In addition, it plays the role of publishing
information and guiding market on grain and edible oil market
both domestically and internationally.
5. Apart from providing information to provinces in China,
the web exchange extensively information with many a
domestic and intermational agencies, such as the State
Economy and Trade Commission, the Ministry of Agriculture,
the State Statistics Bureau, the State Weather Bureau, the
Custom Office, China National Cereals, Oil & Food-stuffs
Import & Export Corporation, the Food and Agricultural
Organization of UN, USDA and French Wheat Association.
6. In accordance with the requirements of users, the web
provides the daily, weekly, monthly and annually reports
1. Director, Department of Policies and Regulations, State Administration of Grain, All, Muxidi Beili, Xicheng DistrictBeijing-100038. The Peoples
Republic of China.
2. Dy. Director, National grain and oil Information Centre, State Administration of grain, All, Muxidi Beili, Xicheng, DistrictBeijing-100038. The
Peoples Republic of China.
JanuaryMarch, 2003
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Mahabir Singh
on grain and edible oil markets at home and abroad, and

sends by e-mail to users the information products, which
include:
(i)
GRAIN, OIL & FEED INFORMATION FOR

CHINA & FOREIGN MARKET, Issued weekly,
mainly reporting the situation of the grain and oil
market world over.
(ii)
GRAIN & OIL MARKET SITUATION, issued

daily, reporting the tendency and important events
of domestic market.
(iii)
GRAIN & OIL DAILY NEWS, displaying the daily

market prices.
(iv)
GRAIN & OIL MARKET DATE, irregularly

published, mainly publishing analysis reports on
domestic and international grain and edible oil
market.
(v)
(vi)
(vii)
(viii)
(ix)
OIL & OILSEEDS MARKET WEEKLY REPORT,

OIL & OILSEEDS MARKET MONTHLY
REPORTS, focusing on the analysis and forecast
of oilseeds market.
8. Upon the collection and publication of information, all

members of AFMA should co-operate with one another
summarizing all members own information before
publishing it. Furthermore, they should exchange information
timely and establish a close relationship, which will facilitate
the development and extension of information working. The
summarized information will greatly support the trade
among the members of AFMA and provide better services
for the farmers and traders.
9. The export price of members of AFMA can be gained
by the co-operation with the ports or traders. All members
should collect their own prices and summarize them in
order to form the price information of members of
AFMA.
10. The major information sources of Chinese farmers are
other farmers, TV and broadcast. The Chinese farmers are
not sensitive to the price changes on future market and
international market.
Degree of importance
Other farmers
GRAIN MARKET WEEKLY REPORT, GRAIN

MARKET MONTHLY REPORT, focusing on the
analysis and forecast of grain market.
Traders/millers
Marketing boards
GRAIN & OIL MARKET TEN-DAYS REPORT,

making dynamic analysis on wheat, corn, rice, oilseed and their products as well.
Co-operatives/associations
Newspapers
INTERNATIONAL GRAIN & OIL MARKET

REPORT, INTERNATIONAL GRAIN & OIL
SHORT NEWS, issued daily, providing the latest
price on international grain and oil market.
Magazines
Radio/TV
Notice boards in markets
WORLD GRAIN & OIL DATE, issued monthly,

supplying the newest data on producers, trading,
consumption, stock and prediction of grain and
edible oil world-wide.
Internet
7. Now-a-days, the information service agencies for farmers and traders, in addition to National Grain & Oil
Information Center, there are many provincial grain &
information center, the Agriculture Ministry Information
Center and many other information company (information
web), include Chinese Agricultural Information Web,
Chinese Food web Foodec web, Chinese Soy web, etc.
Extension services
10
11
Personal visits
Others
9
12
11. During the operation of marketing information of AFMA

members, the existing issues are primarily concerned with
the collection, publication fees and degree of accuracy. In
addition, another problem is to make the information
accepted effectively by farmers.
^,xekdZ izekf.kr oLrq,a [kjhnsaA
34
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Agricultural Marketing System in Indonesia

GAYATRI K. RANA1
The Existing Market Information Service
onsidering the role of information in agricultural development, the government of Indonesia through the
Ministry of Agriculture had issued a daily Price Information
Service for highland vegetables and price information for
secondary food crop on Java, Sumatera, Sulawesi, Bali,
Kalimantan and Nusa Tenggara since 1979. At present, the
market information service has been developed in almost
all provinces of Indonesia covering three-level prices
(producer, wholesaler and retailer price). All production
and market areas, however, are not covered yet.
Consequently, not all types of price information are collected
from all collecting points, and it depends on the place
where information are gathered, whether as production or
consumer areas. The data collecting and recording could
be wholesale prices or retailer prices of certain commodities
that are popular and prominent in the collecting areas or
priority commodities at national level.
2. The wholesale prices for secondary crop are collected
and recorded from 16 provinces in Java, Sulawesi, Nusa
Tenggara and Kalimantan islands, whereas retailer prices
are collected from 26 provinces. The wholesale prices for
vegetables are collected and recorded from 20 provinces in
Java, Sumatera, Bali, Kalimantan and Sulawesi, while the
wholesaler prices of vegetables at producers level also
collected and recorded from 9 provinces. The wholesale
prices of fruits at producers level and consumers level are
also collected and recorded from 3 provinces, namely :
Jakarta, Bali and Yogyakarta.
Data Collection and Price level
AND
WENNY ASTUTI2
Retailer price in the retailer market is the selling

price from the retailer to the consumers.
4. To calculate the price, data needed for every

commodity is 5 (five) or minimal 3 (three) data. Data
that have been collected, rated by using rate without
extreme, means without using the highest and the lowest
data. For example:
The price data are: 175, 180, 170, 155, 165
Delete data: 180 and 155
Then rate from 175+170+165
=170
3
The average prices are then immediately sent to the
provincial headquarters where these are compiled into a
report for broadcast on the local radio station and are also
forwarded to the Central MIS unit in Jakarta.
Data Transmission
5. Up until now, the data from the production area sent
to the provincial office using the telephone, and then
from the provincial office to the Central MIS in Jakarta
using the telephone or facsimile. Whole price data received
from all provinces is calculated and sent to the mass
media (National Radio Broadcasting, Television,
Newspaper) on the same day by facsimile. Currently
'Ministry of Agriculture office still arranging the MIS
system in order to implement data transmission by
internet, using Ministry of Agriculture homepage (http:/
www. deptan. go. id)
Type of Commodity
3. The price data collected by special data collector with

interview the respondent both in production and consumption
area, every day for vegetable and every twice a day for
secondary food crops and fruits, and for retailer price
collected once a week. For those commodity the price
level collected are :
Wholesaler price in the consumption area is the

selling price from the wholesaler to the retailer.
Producer price in the collected market in the

production area is the selling price from the farmers
to the intermediate trader.
6. The type of commodity includes in the MIS are 17

vegetables, 7 secondary food crops (included rice) and 12
fruits. Accordingly to the various production and
consumption area, the type of commodity price data also
varied depending on the collection point. The criteria for
commodity to include in the MIS Systems are: The trading
volume, Price fluctuation and volatility, Marginal cost of
data collection, Processing and dissemination. The MIS has
grades and standards for product in which price data should
be collected. These grades and standards include: (a) Quality
of the product, (b) Packaging of the producer and (c)
Minimum transaction volume.
1. Head of Planning Division, Dte. General of Processing and Marketing of Agricultural Products, Ministry of Agriculture (MOA), Indonesia.
2. Head of International Horticultural Marketing Division, Ministry of Agriculture, Indonesia.
JanuaryMarch, 2003
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Dissemination of the Price Data
The International Markets Data
7. The collecting prices are daily broadcast by National

Radio (RRI) on the same day the prices are collected, at
8.05 PM from Monday to Friday. Prices are also reported
daily in provincial level at Local Radio Stations (Local RRI).
Besides broadcast through the radio, prices are published
daily/weekly on newspapers, magazines and bulletins, and
also display on a price board located in rural assembly
markets and the entrance of the major wholesale markets,
where the data collectors write down their price recording
as well as prices from other locations. An assessment of the
effects and impacts of the Price Information Services for
vegetables and secondary food crops showed that the farmers
are responding very positively and the service provides the
farmers with reliable price information.
The Problems
8. After the GTZ project finished in 1985, some problems
occurred related to system implementation:
All the budgets to operate the systems both in

Central MIS and Provincial MIS directly
depended on the government budgets. This makes
several part of this system sometimes could not
run as well as the purpose. However, the routine
activities to collect data through disseminating
by using radio and television were always done
in rountine, except publishing bulletin and
vademekum.
9. The International Markets Data is under the Directorate

General for Processing and Marketing of Agricultural
Product, on the International Markets Division. In this
international markets data that provided i.e. Export-import
data which collected monthly from the secondary source
Statistical Bureaualso international price data that collected
monthly from the internet. This data then analyzed and
disseminated in quarterly bulletin and yearly book, also
exposed in website.
Farmers Source of Information
10. The main sources of information regarding prices and
other agricultural aspects to the farmers have been changed,
if compared with the information before MIS
implementation, following data is in the rank of source
information, in order of importance:
Items
Rank
Other farmers
Traders/millers
Marketing boards
Co-operatives/associations
10
The accuracy of the data depends on the person

quality who is in charge, but sometimes
inaccurate data was received by central MIS, not
only from production area, but also wholesale
market.
Newspapers
Magazines
Radio/TV
The lack of qualified data analysts, because of

limited data used for analysis, i.e. other marketing
data, demand - supply data, which is not included
in the systems.
Notice Boards in markets
Relating to the market dynamic, there always

new changes in the market, like the development of production area and wholesale
market.
Internet
10
Extension Services
Personal visits
Other
11
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Agricultural Marketing System in Republic of South Korea

T. H. CHUNG1 & SAM LEE2
Why do we Need Information?
gricultural products are produced and supplied by

the independent decision-making of numerous
farmers. As a result, a continuous trend of over-production
and under-production leads to price instability in the
market. This price instability is not beneficial for either
producers of consumers. Furthermore, after the launching
of the WTO, the opening of agricultural markets has
expanded, increasing fluctuations in supply and causing
further price instability. There are many instances where
farmers are at a disadvantage in trade negotiations due to
a lack of information in comparison to buyers in the
market. Substantiation of market information improves the
farmers negotiability as well as improving the efficiency
of transport and shipping through the year and throughout
the country. By accurately surveying and collecting market
information on agricultural and fishery products, and by
providing this information to the end users (producers,
consumers, distributors, etc.) it can assist in the decision
making for shipment time and location to farms, and can
provide the data needed to make policies concerning price
stability measures and smooth supply logistics.
announces the farm sales index per agricultural and

livestock product and farm purchase price index, including
wages, household supplies, agricultural supplies, etc.
4. The Korea Rural Economy Institute (KREI) provides
the current agricultural observatory information on the
Internet through its web server. The Agricultural
Observatory
Information publishes the Agricultural
Prospect Information, Agriculture Farm Economy trends,
the Vegetable Fruit Observatory Monthly and the
Livestock Observatory Monthly. The Observatory Monthly
collects information through interview review or telephone
surveys with sample farms and monitor staff, and makes
comprehensive analysis by collecting the data of the
wholesale markets, distribution companies, product
inspectors, and other relevant institutions. It provides the
estimated area per region and cultivated area; the breeding
situation of each region; as well as harvest volume per unit
area, supply and inventory, exports and imports, and climate
information.
Organization of Agricultural Economy Information in
Korea
Concept and Definition of Agricultural Marketing

Information
2. Agricultural economic information is largely divided
into agricultural statistics, market distribution and
agricultural observatory information. This paper focuses on
market information that may be referred to as the market
information of the NACF.
3. Agricultural statistics information is the information
collected through surveys of fundamental production,
consumption, etc.; others, and the census data and
livestock statistics of the Ministry of Agriculture and
Forestry (MAF); and the production costs, farm household
economy and consumption volume surveys that the MAF
had been undertaking until 1998 when it was transferred
to the Korea National Statistics Office under the
Ministry of Finance and Economy (KNSO). The KNSO
collects and announces retail prices and price indices of
agricultural and fishery products. In addition, the Bank
of Korea (BOK) releases the wholesale price of
agricultural and fishery products. the NACF surveys and
1.
2.
Expert on Agril. Marketing Policies, Research Department, National Agril. Co-operative Federation (NACF), 75, 1-Ka Chungjeong-ro, Jung-Ku,
Seoul,Republic of Korea.
Manager, International Co-operation office, National Agril. Co-operative Federation (NACF), 75, 1-Ka Chungjeong-ro, Jung-Ku, SeoulRepublic of
Korea.
JanuaryMarch, 2003
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Collection of Marketing Information and Role of NACF

Details of Market Information and Surveying
Institution
5. Items for survey on agricultural and fishery product
market information:
Classification
No. of items
(No. of types)
Main items
1
Food
crops
8
(10)
Rice, sweet, rice, barely, bean, red

beans, green beans, sweet potato,
potato.
Vegetables
27
(42)
Radish, Chinese cabbage, cabbage,

lettuce, watermelon, melon, tomato,
strawberry, cucumber, garlic, onion
and others.
Agri.
Special
products: crops
4
(6)
Sesame, perilla japonica, peanuts,

mushroom.
Flowers
8
(24)
Chrysanthemum, rose, lily, tulip,

carnation, gladiolus, gerbera,
common gypsophila.
Fruit
10
(22)
Apple, pear, grapefruit, peach, tangerine, persimmon, chestnuts,

banana, kiwi, orange.
(Sub total)
57
(104)
Livestock products
13
(34)
Korean cow, beef,

chicken, eggs, etc.
pig, pork,
Fishery products
20
(26)
Mackerel, saury, Pollack,

brown sea weed, etc.
Total
90
(164)
Agricultural Fishery Marketing Corporation (AFMC) and

the NACF and NFCFthe producer organizations. Market
information surveyed under the management of the MAF
was implemented from 1977, and as of 2002, the survey
includes 90 items and 164 types. Items subject for survey
of each distribution stage and each surveying institution:
The price survey for each distribution stage,

includes : local price, wholesale price, intermediary
wholesale price and consumer price.
The local price is the farm acquisition price that is

assessed from the joint market for local agricultural
product or 5-day market. Prices for the agricultural
and livestock products are surveyed from the NACF,
while the fishery products are surveyed by NFCF.
The local grain price is surveyed by government

officials in agriculture for the grain price based on
40 kg at the nation-wide main rice production areas in
104 cities and guns (township) in the 5days interval.
The wholesale price is the auction price of

agricultural and livestock products and fishery
products estimated from the joint markets that are
independently operated by the NACF and the NFFC.
Intermediary and wholesale prices are the sale

prices of intermediary and wholesale stores. The
AFMC surveys the agriculture, livestock and
fishery product prices. The NACF survey only the
prices of 2 livestock products.
The consumer price is the sales price at the retail

stores of general retail markets. The AFMC surveys
48 agricultural and livestock products and 10
fishery products.
laver,
6. Under the general control of the Office of Agricultural

Information Statistics of the Ministry of Agriculture and
Forestry (MAF), the agricultural product market
information is collected by the National Agricultural
Products Quality Management Services (NAPQMS),
Price surveying institution and subject items per distribution stage

Classification
Government
officials in
agriculture
Local price
Grain price
AFMC
Wholesale price
Intermediary and
wholesale price
Agricultural
products (48)
Flowers (8)
Fishery
products (12)
Consumer price
Agricultural
products (43)
Livestock
products (5)
Fishery
products (10)
NACF
NFFC
Agricultural products
(18) Livestock products (10)
Fishery products (14)
Agricultural products (31)

Livestock products (2)
Fishery products
Livestock products (2)
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Sur
vey period, data input and sur
vey unit
Survey
survey
Each of the price is surveyed with either trip to

the site or an interview by the survey staff designated at a certain time in the morning of the
survey data by the branch office manager of the
applicable institution.
The consumer price is surveyed in the afternoon

of the survey data to allow computer input on the
following date. The data collected from the 5day markets shall be directly put through the independent computer network by the 13th hour of
the survey date.
The person undertaking the survey shall make

the survey for highest quality product and
medium product on the item as close to the period as possible. The survey is made on a transaction unit (box, ton, tube) and input is made by
converting it into the standard unit (kg., g).
termined in the joint market of agricultural products of the survey area, or in the 5-day markets
where there is the most agricultural product distribution volume. Each item is surveyed at 5 locations and the average price is calculated by converting them into the survey standards unit and is
entered into Computer on the survey data.
Rice is surveyed at one or more locations for the

wholesalers in the production area, the Rice
Processing Complex (RPC), processing plant and
NACF of the production site.
In the event that the prices for the consistent item,

consistent dimension, and consistent quality are
set several times a day, the price is surveyed
while it is the mainline of trading.
Considering the discontinuity and seasonality of

the shipment, the number of business subject for
survey should as many as possible for the survey,
and a certain time must be designated in the
morning to have a continuous survey by the same
person.
Separate from the price sur

vey
survey
vey,, there are also irregular
sur
veys
under
taken
on
the
transaction volume
surveys undertaken
For cattle, the local livestock co-operatives survey the number of appearing heads (entry
volume) and trading heads (trading volume)
for 68 cattle markets. The NACF member cooperative surveys the entry volume and trading
volume of agricultural products in 31 joint
markets. The local livestock co-operatives also
survey the number of auctioning heads of cows
and pigs.
The auction price of the joint market at the consumption area shall be converted into the survey
unit by surveying the auction price traded on the
survey date with the subject of the NACF joint
market in the area or similar joint market for
agricultural products. Beef and pork are
surveyed with the listed head number and the
auctioned head number of cows and pigs that are
placed for auction in the slaughterhouse, the
survey the average auction price per kg which is
announced after the auction.
For meat from the intermediary sales price of

livestock products, survey of price per kg
distributed to the retail stores is made. Eggs are
converted for the average price per 10 eggs after
surveying 3 wholesalers or more in the district.
The AFMC surveys the entry volume and trading

volume of 10 items of agricultural products for
the wholesale market in the consumption area.
Sur
vey status of agricultural product market informaSurvey
tion of NACF
8.
9. B. Wholesale price and intermediar

intermediaryy sales price
A . Local Price
The city and gun (township) branch of the NACF

shall survey the farm acquisition price that is de-
'AGMARK' ENSURES CONSUMERS' PROTECTION
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Agricultural Marketing System in Malaysia

D. W. I. b. WAN DAUD1 & PAUZI YAMAN2
Introduction
he paper outlines the market intelligence activities of

the Federal Agricultural Marketing Authority (FAMA)
Malaysia. The paper only covers the activity of FAMA, as
it is the main marketing agency in Malaysia, though other
agencies are also involved in marketing, collecting data and
small-scale research. FAMA was established as the sole
authority responsible for the co-ordination of all activities
in the field of marketing, the supervision of all aspects of
research and the investigation relying to marketing, The
co-ordinating role of FAMA was emphasized whereby
FAMA was created to become the focal point of formulating policies and instituting market improvements.
Marketing Information System (MIS)
2. Since its inception, FAMA has undertaken the collection of marketing data consistently. This activity of FAMA
is quite extensive and has been carried out throughout the
country covering several commodities and for selected export commodities, on an international basis as well. FAMAs
relative experience in building up marketing information is
unmatched by any public agency. It is the only marketing
agency, which has a data collection system that goes back
to more than 30 years.
has formulated on extensive restructuring of its Market

Intelligence Division to be a One Stop Agricultural Marketing Information Center for the nation.
Main Features of FFAMAs
AMAs Marketing Intelligence
Division
4. Increasingly FAMA is seen as providing the vital
market information and data to other agencies on production requirements, supply and demand positions as well as
market potential and the marketability of agricultural
produce domestically as well as internationally. FAMAs
market intelligence functions can be divided into 6 components which are : (a) Market surveillance, (b) Collectagric-food marketing/economic data, (c) Data integration
and analysis, (d) Marketing research, (e) Dissemination of
agriculture related information, (f) Advisory services for
policy making for the functions, FAMAs market intelligence role can be divided into 4 main activities. Each with
its own sub-activities as (a) Demand monitoring, (b)
Supply monitoring, (c) Market research, (d) Dissemination.
Demand Monitoring
3. To achieve some of the objectives of Third National

Agricultural Policy (NAP3) with respect to marketing, it is
essential that an important component in improving marketing is widespread access to market information. Data
collection, market research and systematic dissemination
of information has thus been emphasized as an area that
needs to be strengthened so that the agricultural sector as a
whole will have access to the required market information.
Being the premier marketing agency entrusted with the
marketing of agricultural produce in the country, FAMA
5. (i) Price collection : Prices are collected for both domestic and international levels. Domestic prices of agricultural produce are collected at farms, wholesales, retails and
ex-factories. The prices collected are relayed from the states
to the Market Intelligence Division at HQ through on-line
system. The prices are then analyzed by means of OLAP
(On Line Application Process). International prices are collected from secondary sources only at HQ level. Together
with the prices, the supply and demand situation is also
closely monitored. Commodities covered include cocoa,
coffee, coconuts, pepper, fruits, vegetables, livestock and
fishery. The items covered and the frequency of price collection are given below:
Sl. No.
Number of Places
Item
2
Price Level
3
Frequency
1.
Vegetables
Ex-farm
Ex-Wholesale
Ex-Retail
40 places
12 places
25 places
3 times/week
Daily
3 times/week
2.
Fruits
Ex-farm
Ex-Wholesale
Ex-Retail
40 places
12 places
25 places
3 times/week
Daily
3 times/week
3.
Poultry
Ex-farm
Ex-Wholesale
Ex-Retail
35 places
12 places
36 places
3 times/week
Daily
3 times/week
1. & 2. Director General and Director, Federal Agril. Marketing Authority, Ministry of Agriculture, Malaysia, Bangunam, FAMA Point Lot 17304, Jalan
Persiaram Satu Bandar Baru Selayang, 68100 Batu Caves, Selangor Darul EHSAN, (MALAYSIA).
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4.
Eggs
(Chicken & Duck)
Ex-farm
Ex-Wholesale
Ex-Retail
35 places
12 places
36 places
3 times/week
Daily
3 times/week
5.
Salted eggs
Ex-retail
8 places
3 times/week
6.
Beef
Ex-retail
26 places
3 times/week
7.
Bacon
Ex-retail
10 places
3 times/week
8.
Mutton
Ex-retail
26 places
3 times/week
9.
Fresh water fish
Ex-pond
Ex-wholesale
Ex-retail
4 places
4 places
4 places
3 times/week
3 times/week
3 times/week
(ii) Monitoring of Exports and Imports: The import and

export of agricultural produce are also monitored at all
import/export points. This yields immediate information,
which can be utilized for various purposes including developing and acting as an early warning system for fast remedial action if necessary.
(vi) Market mapping : This is an activity similar to the mentioned under demand monitoring. The diference between the
two is that under supply monitoring the activity is carried out
at farm level, as compared to market centers. Market mapping at farm level yields data on production areas and trends
and listing of farmers involved in production.
(iii) Market Mapping: This activity involves monitoring the

inflow and outflow of agricultural produce of every district
in the country. Market mapping yields vital information regarding market potential, the list of marketers involved, as
well as consumption levels and patterns throughout the
country.
Market Research
Supply Monitoring
(iv) Monitoring supply of agricultural produce : Data on the
supply of agricultural produce is collected based on the location, variety, quantities and time of harvest. Other factors
considered are weather conditions, farm management and
acreage. The flow of produce from the farms to the sales
centers is also given emphasis to lessen dislocations. For
short-term crop, census method is employed. The sampling
method is used for long-term crops.
(v) Analysis of Data and Forecasting : The data on the supply
of agricultural produce is then analyzed for short-term forecasting. Tis activity alerts everyone involved in the marketing chain on the supply positions of the commodities involved
to facilitiate ease of marketing.
(vii) Compared to the two earlier activities of demand and

supply monitoring, the market research activity of FAMA is
much more formal using established research techniques.
FAMA from time to time also engages professional research
consultants to carry out specific studies.
(viii) Current emphasis in research by FAMA is on consumption trends, overseas market research, commodities
competitiveness study, supply chain management studies,
etc.
Data Processing
(ix) Data processing is a support activity to all data collection and market research conducted by FAMA. It plays an
important role, as it processes, stores and produces all marketing data and information collected. At the moment, FAMA
has 16 standalone systems that perform various functions.
However, by the middle of 2003, all standalone systems will
be integrated to speed up data processing and enable webbased functions.
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Agricultural Marketing System in Nepal

K. B. Shreshtha*
Introduction
arketing Information System (MIS) is a set of standard or process of collecting, storing, processing,
analyzing, retrieving and dissemination of information to
suit the needs of various planners, researchers, traders,
consumers and farmers for their decision making. The information aid farmers, traders, government officials and
consumers to perform their activities effectively and efficiently leading to proper allocation of resources through
increased competition in the markets. MIS also covers information relating to all agricultural produce. Agricultural
marketing information system (AMIS) is a sub-system within
marketing information system (MIS). As agriculture is the
major segment of marketing in Nepal and slso being our
main concern, in this paper we will be using MIS and AMIS
interchangeably. Marketing information include information
on prices, market arrival, market trend, commodity movement, supply and demand outlook, trade and so on. By
knowing such information, a trader may expand trade, a
farmer may decide how much to produce, when and where
to sell. Similarly, a consumer may find out alternative source
of supply. Also, correct information help minimizing risk
and uncertainties and assists in enhancing competitiveness
in the market.
Existing Domestic Market Information Services for
Farmers and Traders
2. In Nepal, Marketing information service in the public
sector was carried out by the Agricultural Economic Section of the then Department of Agriculture in a limited
scale from 1960 and later upgraded as the Economic Analysis and Planning Division of the Ministry of Agriculture.
This Section/Division was initially involved in collecting
retail price in important urban market outlets of the
Kathmandu Vallely and later expanded to commercially
important districts covering agricultural commodities. This
activity was expanded in terms of geographical coverage,
types of prices, commodity coverage with the establishment of the then Department of Food and Agricultural
Marketing Services (DFAMS) in 1972. The Department also
carried out the analysis of information. Although dissemination of information was greatly improved, one of the
major features of DFAMS was mainly to serve the policy
makers and planner. Wholesaler and producer price collection was limited. The information were not disseminated
through public media for wider use.
3. In the year 1992/93, DFAMS was merged and the

Marketing Development Division (MDD) evolved under
the Department of Agriculture and since then MDD is
carrying out all the activities that used to be done by
DFAMS. The objective of MDD has been to increase the
efficiency of marketing information system and to promote and improve price information to help farmers to
plan their production inline with market demand. Schedule their harvests at the most profitable times, decide to
which markets they should send their produce and help
the farmers to negotiate with traders for better price.
MDDs primary target groups are farmers and secondary
are consumers, traders, government officials, policy makers and researchers. The information system of MDD
included (i) Collection procedures; (ii) data processing
and analysis; (iii) information dissemination and publication; (iv) market flow and exchange network.
Information Collection System
4. Information are collected from 75 Agricultural
Development Offices (SDO), 12 export and import points
near border, one wholesale market (Kalimati Fruit and
Vegetables wholesale market), Ministry of Agriculture
(MOA), concerned agencies like Agriculture Input Pvt.
Ltd., Custom Office, Trade Promotion Centre, Nepal Food
Corporation (NFC). In these activities planning officers
and MDD staff are involved. In gathering information
already structured formats are used. The ADO offices
have programmes (annual) to send information to
MDD.
5. MDD adopts the following method of information collection: (i) farmgate price; three llaka (area) are selected
from 9 llaka. From each selected llaka a ward or village is
selected. From each selected ward or village 3 sample farmers are selected and prices are collected on monthly basis
for two months after harvest for seven agricultural commodities; (ii) wholesale price: for each commodity 3 respondents are selected using the list and the average price
is calculated; (iii) retail price: prices are collected from
three different sellers and average price of these are calculated and reported; (iv) border price: prices are collected
from a sample of three wholesalers and three retailers in the
border towns. The processed information is disseminated
through annual bulletin published by MDD, and Kalimati
Wholesale Market prices for important vegetables are broadcasted daily in radio:
*General Manager, Nepal Food Corporation (NFC), P. O. Box-987, Bhadrakali Plaza, Kathmandu, Nepal.
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Frequency
(a)
The district offices prepare and send district and

border price fortnightly.
(b)
Staff of MDD at Kalimati Market send prices of

vegetable and fruits daily as well as weekly.
(c)
Some of the information like total annual quantity

of fertilizer procured and sold are received annually.
6. Information are collected at day time. Coverage includes 53 commodities from wholesalers, 62 from retailers,
49 from borders are covered, 7 commodities and some of
the input prices are collected from farm gate. Market center
coverage and criteria of market selection: Almost all markets of 75 districts are covered and one wholesale market
(Kalimati) is covered. The market selection criteria are : (a)
Type of commodities produced in the districts, (b) transacted volume of a commodity, (c) border area, (d) wholesale market and (e) exportable commodities. Selection and
No. of Respondents Criteria: (a) 3 to 5 traders are selected
to collect various types of information; (b) experienced respondents; and (c) formats are used for collecting information. For data processing and analysis; Windows package is
used and the Special issue (annual report) is prepared and
circulated widely.
7. dissemination and Publication: (a) The time lag between data collection and dissemination is four months in
case of information through reports; (b) In case of radio
broadcast the time lag is around 13-15 hours. Frequency
and Time of Dissemination:Right after the end of fiscal
year one time. Radio-Daily, morning 3 minutes. Form of
report-special issue (annual). Medium of Dissemination :
(a) Kalimati wholesale price daily from Radio Nepal language; (b) Compiled information through publication in
English language.
8. Market Information Flow and Exchange Network: (a)
Planning officers in districts and MDD staffs are involved
in collecting and dissemination of information; (b) Kalimati
wholesale marketMDD staffs; (c) Farmers to farmers;
(d) Traders to farmers and (e) Traders to traders.
Limitations and Problems include : (a) Lack of policy resulting unsuitable organizational structure for MDD to handle MIS and no growth of market centers; (b) fragmented
markets and difficulty to communicate, low volume of
trade due to the subsistance farmers, non-magnetized
economy of some hill areas; (c) question of relevancy,
accessibility, adequacy, accuracy effectiveness and (d) delays
in collection, reporting, transmission and dissemination.
Marketing Information System of Kalimati Fruit and
Vegetables Wholesale Market
a wide range of vegetables and fruits to be grown. To

provide necessary marketing services to farmers, HMG/N
established a wholesale Market in Kalimati in 1987 through
Department of Food and Agricultural Marketing Services
(DFAMS) and then Marketing Development Division (MDD)
under the Ministry of Agriculture. The need to bring improvement in the state of Kalimati Market was identified as
a priority by JMG and the United Nation Capital Development Fund (UNCDF). In 1990, the Kalimati Wholesale
Market Project (KWMP) Agreement was signed to construct and equip market facilities at Kalimati. The Kalimati
Wholesale Market is currently implementing marketing
information system with the objectives of :
(a)
Collection of data relating to volume/price.
(b)
Broadcast daily wholesale prices of major fruit and

vegetables by Radio Nepal.
(c)
Disseminate information to the farmers traders

government officials and others.
(d)
Provide necessary management services e.g. transportation facilities, cleaning and garbage facilities,
Telecommunication facilities etc. to the wholesalers and retailers of Kalimati market.
(e)
Provide necessary technical support service to the

traders of Kalimati market.
(f)
Formulate farmers/traders/transporters consultative

committees.
(g)
Make provision of continuous collection, documentation monitoring and evaluation of agricultural

market information.
The major target groups of the agricultural marketing

information are :
(i) Farmers; (ii) traders; (iii) consumers; (iv) researchers; (v) Government officers and (vi) others.
10. Market information Collection
(i)
Collection of information on prices :- Wholesale

prices for a wide variety of vegetables and some
fruits are collected twice a day in the market. The
timing of data collection is 7 Oclock morning and
1 Oclock afternoon.
(ii)
Estimation of market arrivals :- The estimation of

the volume of produce entering into the market is
obtained from loaded vehicles entering the market.
Standard formats are used for this purpose.
(iii)
Other market information recording apart from

above two information collection system, the
Kalimati Market maintains a separate daily record
of prices and volumes by source of commodity.
9. Nepal has a diversity of climatic conditions with

agricultural land located from the Terai Southern plains at
sea level to high northern mountain peaks. The allows for
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Data Processing and Analysis

11. Kalimati Market uses computer software package for
data processing and analysis. It has designed Excel sheet
for market price collection. Market price of each commodity collected from five respondents during morning and
afternoon is calculated as minimum, maximum and average
prices. Also analysis includes:
(i)
Comparative weekly average wholesale prices of

some commodities in the afternoon.
(ii)
Comparative monthly average wholesale prices in

the morning and afternoon.
(iii)
Weekly minimum, maximum and average wholesale price of fruit and vegetables in the morning.
(iv)
Weekly minimum, maximum and average wholesale prices of fruit and vegetables in the afternoon.
(v)
Weekly market arrivals of some fruit and vegetables.
(vi)
Besides, monthly data analysis is also carried out.
12.
Information Dissemination and Publication

(i)
Broadcasting of price information by Radio

Nepal.
(ii)
Publication of prices on notice board.
(iii)
Publication of weekly Kalimati Market Information.
Besides, the Kalimati Fruit and Vegetable wholesale

Market Development Board is providing the telephone
services to its client. The Kalimati fruit and vegetables
wholesale market has also its own limitations. It suffers
from lack of trained manpower technical services,
Marketing Act, infrastructural facilities, coordination among
different agencies and so on.
Private Sector Efforts
13. MIS of Agro Enterprises Centre (AEC): To accelerate
the market oriented and private sector driven agricultural
development in Nepal, Agro Enterprise Centre (AEC) of
the Federation of Nepalese Chambers of Commerce and
Industry was established in September 1991. It provides
timely marketing services and information to entrepreneurs,
services sector, policy maker, etc. AEC consider that without market information the private sector agricultural marketing can not function. Collection and dissemination of
agricultural marketing information should be relevant and
accurate both of the domestic and international
markets.
Agricultural Marketing Information Services
14. AEC has a system of collecting market information of
different agricultural commodities of both local as well as
that of international markets. Such information usually
contains current market price, volume transacted, source of

supply varieties and grades. AEC is receiving daily agricultural marketing information of different fruit and vegetables being traded at the Kalimati Fruit and Vegetables
Wholesale Market. Similarly, such information is regularly
coming to AEC from Butwal, Narayanghat Chamber of
Commerce and Industry through fax. Regional Liaison
offices of AEC at Mahendranagar, Tulsipur and Dharan from
time to time, send pertinent agricultural marketing information of different districts. AEC receives regular agricultural
marketing information on vegetable seed, floriculture,
Angora rabbit, silk and honey through the AECs supported
commodity associations.
Agricultural Marketing Information Dissemination
15. AEC disseminates local and international market information of different agricultural commodities received
at AEC. AEC has been regularly publishing monthly price
information bulletin comprising of market prices of different commodities like spices, dry fruits, cereals, oilseeds,
rubber, dairy, sugar, coffee, seeds, vegetables, fruits, flower,
herbs of major markets (Kathmandu, Butwal, Narayanghat
and Indian & Pakistani market, Japan, Middle East, Europe
and America). Annual subscription fee for this bulletin is
Rs. 100.00 AEC regularly dispatches commodity market
information received from Kalimati Fruit and Vegetables
Wholesale Market (KFVWM), to its Regional Liaison
offices. Similarly, market price information of Birtamod,
Dharan, Tulsipur markets is being transmitted to KFVWM.
AEC is also publishing and distributing monthly newspaper
Krishi Uddyan Samachar consisting of pertinent information of different commodities.
16. A landmark of MIS in the private sector begins back
from 1998 when AEC on an experiment basis started collecting the daily wholesale market prices and publishing
the Daily wholesale Market Bulletin regularly including
information of three major wholesale markets of Nepal
Birtamod, Dharan and Kalimatiwith a very limited number
of commodities under fruits, vegetables and spices, etc. At
present, AEC has the coverage of 18 domestic wholesale
markets 3 Indian border town wholesale market and Delhi
market for fresh fruits, vegetable, spices, etc. Chronological
growth of AECs MIS is outlined below:
Year
Market
1998 Britamod, Dharan, Kathmandu, Butwal,

Tulsipur.
1999 Narayanagardh, Pokhara, Nepalganj,
Mahendranagar, Biratnagar, Dhankuta,
Hetauda, Tansen, Damauli, Ghorahi,
Birendranagar.
2000 Delhi, Bareilley, Pilivit, Khatima.
2001 Birganj, Janakpur
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17. At present, the database of MIS holds a wide range

of commodities under Fruits (2 items), Vegetables (48
items), Spices (19 items), Herbs (94 items), Oil and oil
seeds (3 items), Pulses (10 items), Grain (2 items), Sugar,
Coffee (Arabick and Robusta), Tea (CTC and orthodox
of different grades) Livestock (3 items), Hony Dairy (1
item) Seeds (3 items) headings. MIS user of AEC are
Wholesale traders, consumers, farmers, different
national/international government and non-government
organization associated with agricultural development,
researchers, etc. Data sources of AECs are web
pages, newspapers/periodic bulletin, organizations/markets.
AEC publishes a wide range of publication daily and
periodically such as Daily Bulletins, Monthly Bulletins,
Yearly Bulletins, comparison of wholesale and retail
prices, etc. All the publications having information on
market prices are based on the daily collection of different wholesale, retail, future and spot market prices. In
addition Rural Urban Partnership Programme (RUPP) has
jointly launched an exclusive web page
www.agaripricenepal.cum-on agri market information on
the 17h August 2002 in coordination with MOAC/MDD.
and neighbour could be the main sources of information in

village whereas in urban areas radio/TV may be important
source of information. However, in general, among various
sources of information, order of importance are as follows:
Ranking of order of importance
Sources
The Network
Eastern
Birtamod, Biratnagar, Dharan,

Dhankuta, Sankhuwasabha.
Central
Kathmandu, Hetauda,
Narayanangardh, Janakpur.
Western
Butwal, Tansen, Byas, Pokhara.
Kailali, Mahendranagar.
19. Farmers see the nearest market and the main source of
information. The nearest market, haat bazaar (periodical
village market) assembly markets, village traders, friends
Trader/millers
Co-operatives/association
Personal visit
Extension services
Newspapers
Radio/TV
Magazines
Notice boards in market
Internet
10
Marketing boards
11
Other
12
In agricultural marketing information system, it is

widely expressed that there is duplication of efforts,
lack of standardization, inadequate network for
information flow with no clarity of target group and
cost ineffective services. There exist a complete lack
of co-ordination and integration of agricultural marketing information services among various agencies.
MIS is confronted with problem of adequacy, relevancy, accessibility and effectiveness of market
information. In order to improve the accuracy of data
collection, district offices need strengthening in
terms of staff capabilities and logistics.
Delays in collection and reporting under the MDD

system there are delays in reporting of prices from
districts and information is published after a gap of
four months in four monthly.
User information service, the present information

service mainly serves the need of the policy makers
rather than producers and traders.
Lack of information exchange systemThe usefulness of information is further limited by the absence
of information exchange system between and among
the major production/trading locations for important commodities.
Provision of information to producersThere are

burning issues of seasonal gluts and scarcities due
to poor access to market.
Role of AFMA Member in MIS

18. Nepal Food Corporation (NFC) is the only member of
AFMA from Nepal. The role of NFC in disseminating domestic market information to farmer is limited. NFCs prices
are used by the farmers to plan their production i.e. to allocate their land for cultivation of different crops. In fact NFC
may be taken as a great user of information disseminated by
the national MIS. In formulation its plan and program, NFC
mainly uses the market information disseminated by the
Ministry of Agriculture and Co-operative, the Marketing
Development Division (MDD). Some of the sources of export market price are periodicals, bulletin and price information published by the Trade Promotion center of Nepal. This
center publishes price and commodity information of various countries and places. Price and other information exchange is done only when it becomes necessary.
Other farmers
20. Constraints/Limitation of MIS
Mid-Western Ghorahi, Tulsipur, Salyan,

Nepalganj, Birendranagar, Surkhet.
Far-Western
Rank
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Importance and need for market information

serviceMOAC should play facilitating role by providing minimum of critical information need to private sector.
Prioritization of information serviceIn order to
make data collecting simpler and clients need oriented it is imperative to coverage of districts, commodities and type of price to be collected such as
farm gate, wholesale, retail and border need to be
identified and prioritized as per the resources available for collection, processing and dissemination
purpose.
Users orientationIt is better and pragmatic to provide a few important market information, that are
relevant and useful than to present volumes of information.
Transmission and dissemination of information

exchange information from the MDD to district agriculture development offices in a speedy manner
through fax, telephone or other electronic media.
Analysis & reportingthe annual basis reporting

should be made in quarterly basis.
Lack of efficient managementData collectors are

de-motivated so they are to be motivated for correct
data collection.
Lack of uniform standard weights and grades not

done while marketing information except some
commodities.
Prioritization of Radio Broadcast TimeInstead of

in the morning of next day, prices should be broadcasted in the same day.
Regular Interaction among the market participants

In order to strengthen the market information
services regular interaction among the market
participant regarding the performance and

relevancy of market information is necessary.
Some Recommendations
21. The proceedings of the national seminar on AMIS in
Nepal (June 10-11, 1998) has made many recommendations.
Some of them are as under:
(i)
Integrated AMISAs it has been realized that AMIS

in Nepal is disintegrated. There is absence of reliable source of MIS. Small farmers, the major stakeholders are not benefited out of present system of
AMIS. Therefore, an integrated MIS having participation of Govt. cooperative and private sector has
been suggested.
(ii)
Develop and approve marketing policy and formulate Agricultural Marketing Act.
(iii)
A separate apex body with the responsibility marketing development policy, programs and co-ordination should be set up.
(iv)
Coverage of AMIS should include livestock, diary,

fishery, stock, cost of marketing information, export
market, inputs supply, etc.
(v)
Target group should be clearly defined and their

needs in order to priority.
(vi)
Information dissemination should be client oriented

and take into account their need. Price, market arrival, demand and supply situation should be disseminated in daily basis in case of highly perishable
commodities, weekly or fortnightly basis.
(vii)
Logistics such as Electronic facilities for quick transmission, analysis and dissemination, technical capability including up-to-date knowledge of hardware
and software training should be developed and an
integrated AMIS should also be developed.
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Agricultural Marketing System in Pakistan

Muhammad Iqbal Khan*
Introduction
gricultural marketing information comprises information of all the activities, functions and institutions involved to move farm produce from the primary production
point to the ultimate consumption point. Marketing information of agricultural produce is as important as production itself as it plays very crucial role not only in stimulating production and consumption, but also in increasing the pace of
economic development. The success of the any agricultural
development programmes rests ultimately on the efficiency
of the marketing information system.
2. Trading in large number of agricultural and livestock
products is freely permitted and is entirely in the hands of
private enterprise. Coarse grains, spices and condiments, fruits
and vegetables, sugarcane products, gram and pulses, meat
milk and eggs are some of the main commodities which fall
under this category. Their internal movement is practically
free and their market prices are determined by supply and
demand and other market forces. The local administration
may fix the price of items such as meat, milk and eggs which
come under their jurisdiction.
3. The public sector intervenes in one way or another in
main foodgrain, sugarcane, cotton and tobacco marketing.
The nature of this interferences depends on the specific objective, e.g., wheat procurement at seasonally fixed prices is
made to meet the food requirements of general consumers
and ensure suitable prices to the growers. Similarly, rice is
procured for export and to provide incentive to growers to
increase production by ensuring them better prices. For cotton, it announces the prices of both lint and seed cotton each
season. The ginners have thus to purchase seed cotton from
growers at fixed prices and sell lint at specified prices. Minimum prices for different grades of tobacco are also fixed seasonally and tobacco companies are not allowed to buy from
growers at lower prices.
Information System
4. Although a marketing information system has developed in the country for many years, services under it are
by no means adequate. Price collection, compilation and
dissemination comprise a small part of overall marketing
information service and do not assist various beneficiaries/users in fully realizing their goals. Informaltion
on market arrival/supply, sale volume, seasonal variation
in regional production/supply, quantum and direction of
movement to various markets within and outside the
country, net availability and future supply and demand
projections are conspicuously absent. The development
of a more broad-based and informative system of data
collection, compilation, analysis and dissemination is limited by the lack of resource commitment to marketing,
insufficient trained personnel and unsatisfactory response
by private sector trading to market inquiries. This has
hampered indepth analysis of price movements, intermarket price comparison (market transparency) and the
calculation of marketing cost and margins, resulting in
limited ability to suggest any truly constructive viable
policies and measures toward marketing development and
pricing.
5. Practical training in market research and information
services or in other related aspects of its activities are inadequate. Academic courses are, however, available in educational institution which should be backed by field training.
Market training also lacks centralization and coordination.
Individual agencies undertake their own training programs.
Agencies Involved in the Information System
6. A number of Federal and Provincial agencies are involved in this exercise. They include the Agricultural and
Livestock Products Marketing and Grading Department
(ALPMGD), the Federal Bureau of Statistics (FBS), the
provincial government departments/agencies and trade associations and producer groups. Brief description of each
agency is as follows:
(a) Agricultural and Livestock Products Marketing and
Grading Department (ALPMGD) Federal Agencies: At the
federal level, agricultural marketing is the responsibility
of the Department of Agricultural and Livestock Products
Marketing and Grading under the Ministry of Food, Agricultural and Co-operatives. Details of its market intelligence activities and other compilations include the following :
*Managing Director, Pakistan Agil storage and Services corporation, Ltd., 54Lawrence Road, P. O. Box-1247 LAHORE (PAKISTAN).
JanuaryMarch, 2003
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Price Review
Frequency
No. of Commodities covered
Circulation to
Wholesale and retail
Monthly
14 commodities in 10 important
markets
Ministry of Finance
Draft summary
Monthly
Potato, onion and pulse
MINFAL/Press
Fortnightly
Poultry and egg at Karachi
MINFAL/Press
Wholesale
Fortnightly
Potato, onion, maize at Karachi,

Lahore, Peshawar and Quetta.
Ministry of Commerce
Wholesale
Week-end
Khandsari and Gur in important

markets
MINFAL/Press
Wholesale
Weekly
Cotton, wool, hide and skin and

cotton seed from Karachi market
Ministry of Commerce
Wholesale
Monthly
Rice, cotton, tobacco and wool

in Karachi market and wheat in
Faisalabad
MINFAL/Press
Wholesale
Monthly-average
Milk in important markets
Federal Bureau of Statistics/

Press
Wholesale
Monthly
40 agricultural and livestock

products
Ministry of Defence/Press
Wholesale
Week-ened and
corresponding last
years prices
Patato and onion at Karachi

and Lahore markets
Export Promotion Bureau/

Press
Wholesale
Daily
13 items in Karachi market

Press
Wholesale
Weekly
Exportable green vegetables

in Karachi market

Press
Wholesale
Daily and weekly
Fresh fruit and vegetables in

Karachi market and potato and
onion in important provincial
markets
Agric. Marketing and

Storage/Press
Daily
Wheat Flour in important

markets
MINFAL/Press
Daily and Corresponding

last years prices
4 pulses important market
MINFAL/Press
Note : MINFAL stands for Ministry of Food, Agriculture and Livestock.
(b) Federal Bureau of Statistics (FBS) : It collects prices of

general items and those of agricultural origin to construct
price index, it is merely a data gathering and reporting and it
does not carry out amalysis.
(c) Export Promotion Bureau : Export Promotion Bureau is an attached department of the Ministry of Commerce and was established in 1963 with the sole aim of
providing the Pakistan export community with update
marketing information. the Bureau aims at micro level
contact with buyers and sellers. It processes the enquiries received from importers abroad and guides exports.
Enquiries received from importers as well as from
Pakistani trade offices abroad are disseminated to exporters in Pakistan by the IAC through :
(i)
Computerized information on Exporters/Manufacturers and Foreign Buyers.
(ii)
Global import/export statistics alongwith comparisons with other markets.
(iii)
A well organized library catalogued in 7 sections

containing trade directories and information on products, export marketing, quality control, GSP, design, packing, customs tariff, trade fairs and exhibitions, costing & pricing and statistics.
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(iv)
International and local periodicals/journals relating

to export trade.
(v)
Photocopying, microfiche print-outs, computer

print-outs and diskette copying facilities.
(d) Provincial Government Department/Agencies : Those

involved at this level include the Economic and Marketing
Directorates/ Cells in three provinces other than Sindh where
the Bureau of Supply and Prices to a larger extent and the
Bureau of Statistics to a lesser extent are engaged in maintaining price index.
(e) Local Agencies : The wholesale prices of 60 Agricultural Commodities such as wheat, rice, sugar, cotton, pulses,
grams, vegetables, fruits etc. from the market are collected
by 450 market Committees of the entire country at the time
of open auction. Then the retail prices are formulated on the
basis of the collected wholesale prices. Thereafter, both the
retail and wholesale prices are disseminate by the Market
Committee to the District Management through circulation.
For benefit of growers/general public these rates are disseminated on the Rate Boards installed at the main Grain, Food
and Vegetable Markets, the Provincial Agricultural directorate of Economic and Marketing.
(f) Trade Associations and producer Groups : Trade association such as the food and Grain Merchants Group
and the Karyana (spices) MerchantsGroup issue daily
market reports on prices of their respective commodities
and supply them to member merchants and various
government bodies.
Dissemination of Market Information Service
7. The agricultural market information is disseminated
through the following media :
(a) Radio : On the same day in the afternoon, these rates
alongwith other information broadcasted through various
Radio Stations of the country on the same evening for the
benefit of the growers, sellers/consumers. Agriculture Programme Broadcast from the radio stations alongwith timings
of the Punjab Province is as follows :
Station
Name of Programme
Time
Lahore-I
Jithey tere Hul

Wagdey
1817 to 1830 hours
Lahore-II
Khet Khet Haryali
1200 to 1300 hours
Faisalabad
Sohini Sandal
Dharti
1817 to 1920 hours
Rawalpindi
Wasney Rahan
Garan
1904 to 1930 hours
Multan
Utam Kheiti
1817 to 1900 hours
Bahawalpur
Dharati Bakkht
Bahar
1910 to 1955 hours
(b) Television : Rates of the important agricultural Commodities and allied information are also televised by the
Pakistan Television daily as under :
Station
Name of Programme
Time
PTV-1
Tijarti Khabrain
21.30 hours (PST)
PTV World
Kissan Time
1300 to 1400 hours

(PST) This programme is seen in 23
countries of the
world.
(c) Print Media : All the leading newspapers cover the

agricultural commodity rates in their publications but the
comprehensive coverage is being arranged in English in Daily
Business Recorder and in Urdu in Daily Tijarat.
Problems
8. The main problems associated with operation of market
information services in Pakistan are:
(a) Collection costs: The farmers have to be visited personally by the Agriculture Department staff, resultantly the
cost of the operation is much more than the developed countries.
(b) Accuracy: Since the information regarding crop cultivation and thrashing is mostly collected through personal visits
by Provincial Agricultural Extension staff, hence it is accurate to greater extent.
(d) Village markets: Due to lack of communication the village markets remain ignorant about the prices prevailing in
the surrounding markets as well as in the other parts of the
country resultantly village sellers have no other option except to sell their commodities on the rates offered by the local middleman. The lack of market information often deprives
them from their genuine right and causes them financial loss.
(e) Dissemination costs: Presently the dissemination cost is
well within limits, but it is likely to enhance in future with
the advancement of media and improvement of literacy level
of the community involved in this profession.
Ranking in order of importance comprise of Newspaper,
Magazines, Radio/TV, Boards in the market, Extension Service, Traders/Millers, Other farmers, Personal visits and
others.
Recommendations
9. Communication Infrastructure : Communication infrastructure forms the backbone in any commercial/economic
activity but more so in the case of foodgrains since these have
to be first transported from the Farms spread over in the rural
areas and then to the market/storage points and ultimately to
the distribution centers close to consumption areas to the
market storage points and ultimately to the distribution centers
close to consumption areas. Construction of additional farm
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roads is recommended. Presently only 50% of the villages

are having farm roads.
10. Market Committees: There is both a need to have a
uniform system in the entire country and also make these
bodies more representatives to include growers, traders and
personnel from the procurement agencies. Their role also
needs re-defining and they must also provide the requisite
facilities.
11. Education: Our farmers are generally illiterate corresponding to low literacy rate in the country. Government is
making concerted efforts to improve the literacy rate as well
as computer education in the country. There is still, however,
much to be desired.
12. Expansion of Market Information: Agricultural and livestock Products Marketing and Grading Department at present
has staff at only 10 markets to collect prices from 10 divisions, while 11 others in the country go unreported. It is recommended that coverage to additional 11 Divisions as given
below be expedited.
Province
Existing coverage
Additional Coverage
Sindh
Karachi, Hyderabad, Sukkur
Jacobabad, Mirpurkhas,
D. G. Khan,
Punjab
Multan, Lahore,
Faisalabad,
Rahimyar Khan, D.
G. Khan, Sialkot,
2
Rawalpindi and
Islamabad
Mianwali
NWFP
Peshawar
Abbotabad, Swat, D.I.

Khan, Bannu, Kohat
Balochistan
Quetta
Khuzdar, Turbat,
Laraloi, Kalat.
Role of AFMA
13. The exchange of views between the AFMA members is
restricted to Seminars/Workshops only. A system should be
introduced where the AFMA members remain in touch to
disserminate the Market Information to each other on regular
basis.
Conclusion
14. Although, the present market information system has
achieved significant progress in the past, yet it continues to
be lacking in many respects and is found defective in
certain aspects. Therefore, to improve the prevailing situations, the Government of Pakistan for the first time has
given due consideration to this section and has allocated a
huge amount of Rs. 700 million for this sector in 10 years
prospective development plan 2001-11. On successful completion of this plan in the year 2011, market information
system will be in a position to furnish more authentic and
comprehensive information to the local as well as foreign
community regarding Pakistans Agriculture.
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Agricultural Marketing System in Philippines

Nelson C. BUENAFLOR*
he Philippines has recognized the importance of

strengthening the market information system. The legal
framework on domestic marketing system was already set
up under Republic Act 8435 or the Agriculture and Fisheries
Modernization Act (AFMA). This framework specifies the
need for a modern information technology network in
agriculture for proper matching of production (supply) and
market demand. One important component is the
establishment of the National Information Network (MIN)
in the whole country with the Department of Agriculture as
the focal point. In the case of corn, the National Food
Authority has made inroads in providing market information,
including the establishment of a special system the
Electronic system of Training in Agriculture.
B.
BAS Market Price Monitoring
4. the Bureau of Agricultural Statistics (BAS) is the major

agency of the Philippines under the Department of
Agriculture mandated to provide an agricultural statistical
system for the need of policy makers, planners farmers,
fisher folk and entrepreneurs. Established in January 1987
through Executive Order No. 116, the bureaus structural
organization was further expanded and strengthened in year
2000 to comply with the requirements of the Agriculture
and Fisheries Modernization act of 1997. (AFMA)
Specifically, EA 116 provides that BAS shall be responsible
for :
THE EXISTING MARKETING INFORMATION

SYSTEM
Collection, compilation and official release of

agricultural statistics;
A. The National Information Network, the BAS and

NFA
Exercise of technical supervision over all data

collection centers; and
Co-ordination of all agricultural statistics and

economic research activities of all bureau,
corporation and offices under the DA.
2. The Department of agriculture is now setting up a

National Information Network (NIN) from the Department
down to the regional, provincial, and municipal offices,
which shall be linked with the various research institutions
for easy access to data agriculture and fisheries research
and technology. The NIN shall provide information and
marketing services related to agriculture and fisheries in the
following: (a) supply data; (b) demand data, (c) price and
price-trends; (d) product standard for both fresh and processed agricultural and fisheries products; (e) directory of
co-operatives, traders, key market centers, processors and
business institutions; (f) research information and technology; (g) international, regional and local market forecasts;
and (h) resource accounting data.
3. The setting up of the NIN is not yet complete, but
some headway was already accomplished such as the
established of the Local Area Network (LAN) of all Regional
field Offices of the DA and their inter-connection with the
DA Wide Area Network (WAN). Meanwhile, statistical
data related to marketing such as farm gate, retail and
wholesale prices are provided by the Bureau of Agricultural
Statistics (BAS). The National Food Authority (NFA) is
another agency that provides agricultural marketing services.
Also, the Act requires to (i) Serve as the central

information source and server of the NIN; and (ii) Provide
technical assistance to end users in accessing and
analyzing product and market informationn technology.
5. One of the continuing activities of BAS is the monitoring
of wholesale and retail prices of agricultural commodities
which is part of its major responsibility to gather and
disseminate timely, reliable and accurate marketing
information. This task of price collection at both wholesale
and retail levels is being undertaken by virtue of RA 4148
enacted on June 20, 1964. Primarily, this aims to implement
a comprehensive marketing information system for
unprocessed agricultural products traded in major local
provincial market centers and strategic terminal markets
nation-wide. Currently, the bureaus monitoring system
focuses on the following :
(a)
Wholesale Price Monitoring (WPM) Under

this statistical activity, price level and changes
in agricultural commodities traded in big
President and CEO, Quedan and Rural credit guarentee Corporation (QUEDANCOR), QUEDANCOR Centre, 34 Panay Avenue QUEZON city,
Philippines.
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amounts at major markets and wholesale or

50
cities are regulatrly monitored. the
commodities covered are grouped according to
Cereals, Fruit vegetables, Leafy vegetables,
Beans and legumes, Nuts, Condiments, Roots
and tubers, Poultry and eggs, Meat and fishery
products, fruits and commercial crops. Since
wholesale trading varies depending on the
market centers, the frequency of wholesale
price collection likewise varies by area.
Respondents for wholesale price collection are
wholesalers who buy from farmers, raisers,
fisher folk and fellow traders and those who
sell in bulk to other wholesalers, wholesalerretailer and retailers.
(b)
Retail Price Monitoring (RPM) This is

another statistical activity which monitors retail
price levels and changes from almost 114
markets in 79 provinces and cities including
Metro Manila. Under this, commodities
monitored include Cereals, Fruit vegetables,
Leafy vegetables, Beans and legumes, Nuts,
Condiments, Roots and tubers, Poultry and
eggs, Meat, Fish and fishery products, fruits.
The bureau collects retail prices every Monday,
Wednesday and Friday from 7 A.M. to 9 A.M.
However, the number of commodities
monitored markets varies by province which
can have as many as 77139 items to be
covered. Respondents are retailers who sell
their commodities to consumers.
6. For both wholesale and retail price monitoring, five

(5) respondents are selected from a list of traders doing
business in a given market or collection point. In cases of
unavailability of respondents, a replacement or substitute
may however, take the place of the principal respondent.
Data collection is conducted either through direct interview
or asking the price from the seller or the buyer; or by
listening to the actual transaction between a buyer and a
seller. The mrket reporter assigned to each area/market,
use structured price collection forms for this purpose.
7. The next step is data analysis to include the observations
on the market situation. Data processing on one hand, is
done electronically at the Provincial Operations Centers
using a customized program while regional and national
consolidation is done at the BAS Central Office. The
bureau also hires approximately 1,800 surveyors per quarter
to undertake monitoring activities for rice and corn alone.
C NFA Market Price Monitoring
gathers and processes primary and secondary data on food

commodities which are indispensable for management in
its major decisions and policies. together with BAS, these
two agencies coordinate regularly to link information on
agricultural crop production and marketing. Also, the NFA
has an existing MIS principally responsible for data
collection and processing, analysis and information
dissemination. These are undertaken through :
(a)
Grains Industry Situationer (GIS) This

includes information and data on grains
inventory, prices and the agencys marketing
operations such as procurement, distribution
and imporation. The GIS report is submitted to
NFA management and copies are distributed to
the Bangko Sentral ng Philipinas, National
Economic and Development Authority and the
National Security Council on a weekly basis.
(b)
Cereal and Sugar Pricesthis reports include

the prevailing market prices of rice, corn and
sugar nation-wide and is genertated two times a
week Aside from this, a weekly report is also
prepared for the comparative cereal prices
monitored by both NFA and BAS. This report
however, is only for the internal use of NFA in
its daily operations and decision-making. Also,
a monthly report is generated on the wholesale
prices of well-milled and premium rice which
are gathered from major trading areas in manila,
Dasgupan, Binondo and Divisoria.
(c)
NFA Rice DistributionThis is another

submitted by NFA to the National statistics
Office on a monthly basis specifically containing
the sales of NFA rice from all of its provincial
offices to accredited grains businessmen,
institutions and end-consumers.
(d)
Report on Registered Grains Businessmen

Aside from the aforecited reports, the NFA
also produces a status report on its licensing
and registration program or specifically a report
on registered grains businessmen which is
submitted to management on a monthly and
biomonthly basis.
(e)
Corn Stock Inventory and Prices This is a

bi-monthly report illusrating the current corn
stock balances by the governmant commercial
and household sectors which are presented
together with prevailing market prices at
varying levels.
(f)
Market Review A report underlining the

grains situation including the present stock
inventories, domestic and international market
prices and production estimates. This is
submitted on a quarterly basis and mailed to
8. The National Food Authority (NFA) is another agency

of the Philippine government tasked to undertake
agricultural marketing services. Primarily responsible for
ensuring food security and rice stabilization, the NFA also
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farmers and other stake-holders for information

and reference purposes.
(g)
Estimated Commercial Marketing Costs for Rice

and Corn These are two sets of reports
containing estimated of the marketing cost at
farm and at the wholesale and retail levels
which are prepared using the prevailing market
prices and NFA support prices.
(h)
Estimated Landed Costs of Rice and Corn

Alongside the aforecited reports on the estimated
commercial marketing costs for rice and corn is
an estimated landed costs for imported rice and
corn in the domestic market. This comprises
all incidental costs that will be acquired in
importing these commodities from foreign
markets to the Philippine market. The average
world market prices are the basic inputs
contained in this report which are generally
obtained from sources such as the FAO Food
Outlook, the US Grains Perspective and the
local broadsheet Business world.
(i)
Electronic System of Trading in Agriculture (ETrade) Project A major facet of the Agencys
computerization program is the e-TRADE
project which is a computer-based corn trading
system specifically set up as an information
exchange center and clearing house. Under
this program, various information (including
prices, marketing costs, buyers and volume of
requirements) are gathered by major corn
producing areas in Luzon and Mindanao through
a network of Provincial Trading Centers (PTC)
which are linke to the Manila Trading Center
(MTC). The latter on one hand, provides
Manila-based corn users direct access to some
vital information such as the availability of
corn deposits in participating source provinces,
depositors, volumes specifications and prices,
among others. These reports are generated by
the NFAs Business Development and Promotion
Department which is responsible for ensuring
that the data collected, processed and analyzed
revert back to all stake-holders in the grains
indusry through access to useful marketing
information.
D Farmers as Users of Information

9. The farmers still depend on trader-millers as their main
sources of information on prices, prospective buyers and
volume demanded. This can be attributed to the fact that
this sector practices as a mobile buying scheme while some
trader-millers practice contract buying. There are also
some big trader-millers who monopolize the entire process
by financing the planting requirements of farmers and by
going around production areas togather various marketing
information. Aside from trader-millers, another good sources

of information are the farmers themselves. For one, they
tend to approach other farmers in their desire to get the
information they need. Co-operatives/associations come in
next as another sources of information by extending the
privilege of accessing vital marketing information to its
members that will eventually assist them in finding a good
market for their produce. The other major information
source for the farmers sector is broadcast/media or radio/
television. One broadcast media catering to this is the
Market News Service (MNS) of the Bureau of Agricultural
Statistics (BAS) which disseminates information on a daily
and weekly basis. Through the MNS, a Radio Script on
Retail Selling Prices of Selected Commodities is provided
to radio and television stations for airing in a designated
segment of a specified radio/television program. A onepage bulletin called the BAS Media Service and the BAS
Media Service situationer are also submitted on a weekly
basis featuring prevailing wholesale and retail prices, price
ranges of commodities, supply and demand conditions,
sources and other updates in Metro Manila.
The Role of NFA as Market Information Server
10. The NFA accumulates numerous information from its
daily marketing operations and interaction with both the
government and the private sector. NFA launched an Early
Warning System (EWS) to complement its existing MIS to
serve the needs of the agency and its stake-holders. The
agencys EWS is a marketing information system that
provides a signal when to implement measures in case of
emergency. As one of the members of the Association of
Food Marketing Agencies in Asia and the Pacific (AFMA),
the ASEAN Food Security Reserve Board (AFSRB) and as
a recipient of the Food and Agriculture Organization of the
United Nations (FAO), the NFA also has the responsibility
to provide these associations with relevant information that
will assist them in promoting and developing their countrys
grains market. Part of these is the submission of quarterly
reports on the Phillipine Food Grains Situation to the
AFSRB Secretariat particularly to the Food Security
Information System. The system was established to serve as
a tool for providing a fast and reliable information and
analysis on the food security situation at the national and
sub-national levels including all factors influencing food
availability, stability in supplies and access to food.
11. Also the agency has an existing National Food Security
Information System (NFSIS) which can be accessed through
a sub-homepage under the ASEANWEB at
www.NGA.Gov.PH. The homepage of NFA and other Asean
member countries the efficient and effective operation of
the ASEAN Food Security Reserve.
12. Further, the Philippine government has been initiating
efforts in compliance to the World Food Summit Plan of
Actions request for governments to develop a National
Food Insecurity and Vulnerability Information and
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Mapping system (FIVIMS). Discussions are also currently

underway for drawing up the responsibilities of each
concerned government office in the collection of food
security data and information. Moreover, areas of
assistance for the Philippines have been identified during
the visit of the FIVIMS Task force in the country which
include the :
Development of methodologies;
Models for measuring vulnerability;
Creation of composite indicators;
Networking scheme (to include data ownership).
13. At present, the agencys participation in FIVIMS is

through the NFA Rice Distribution and Distribution
Monitoring system for Pro-Poor Programs. Under these
pro-poor programs are the Tindahan ni Gloria Labandera

Rolling Stores (NFA-operated, Participating Partners, Tinda
Bangda, Rolling Stores in Hotspot Areas), the Targeted
Rice Distribution Program and the Coconut Farmers Food
Access Program.
14. With the various information and services illustrated
in the marketing information systems of BAS and NFA, it
is farmers prudence to optimize and utilize said information
for their marketing advancement. Further, this sector should
be provided with appropriate orientation and training
programs hand in hand with sustained market assistance
services primarily for this purpose and for enterpreneurial
skills development. Given all these marketing support and
the availability of timely, precise and significant marketing
data coupled with the right skills, the Filipino farmer, will
in all likelihood, achieve an efficient and profitable standing
in the socio-econmic ladder.
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Agricultural Marketing System in Sri Lanka

W. D. GUNATILKE
Introduction
he private sector in Sri Lanka is expected to play a

major role in production and marketing while the state
sector expected to play a supportive role in facilitating
them and improve the living standards of the farmer
population. The Market Information System is completely
based on private sector participation. Most of the farmers
receive this information on pricing of those products from
the leading traders in these areas. Purchasing power is
frequently with the private traders in the areas in the period
of harvest. Farmers are perpetually subjected to market
these produce at cheaper rates as there is no other means to
market these products. Despite the fact that state
organizations declare a stable pricing for the produce of
farmers distinctive difference comes into existence on
comparison to actual market price. In Sri Lanka, three
organizations, namely Hector Kobbakaduwa Agrarian
Research and Training Institute (HARTI), Department of
Census and Statistics (DCS) and Central Bank of Sri Lanka
(CBSL) are mainly involved in collection of marketing
statistics as discussed in the following sections.
Hector Kobbakaduwa Agrarian Research and Training
Institute
2. The Marketing and Food Policy Division (MFPD) of
HARTI, which was established in 1979 is responsible for
collection of market statistics. The mechanism for collection
of market information was developed in 1980 under the
external assistance from USAID. However, coverage of
marketing statistics was limited to collection of prices and
production statistics from limited areas. Retail prices were
gathered from ten principal cities plus Colombo, capital of
the island, which includes 11 retail markets. Wholesale
price collection was carried out in two main markets,
Colombo and Kandy and producer prices were collected
from major producing areas within the designated areas.
Geographical coverage increased from 10 locations to 35
locations outside the capital city. Motor cycles were provided
to the field staff and fax machines were given for data
transmission to the Colombo office. The processing of data
is fully computerized.
3. MFPD has its own staff to collect information. There
are two categories. Statistical Assistants (10 appointed under
the USAID project in 1980 and Investigators appointed
under the UNDP project in 1994. The former group is in
permanent category and the later group is on causal basis

and it is expected to make them permanent after completion
of the project in July this year. Wholesale prices are
collected once a week. Sample size is ten for wholesalers
and five for retailers. Traders have been chosen purposively
due to two reasons. First, there is no sample frame for
random selection. Second, respondents who cooperate
strongly could be selected purposively. Schedules have
been prepared for data collection. Instructions have been
given to conduct informal interviews to collect additional
information such as reasons for price changes and supply
areas in relation to wholesale prices. Producer prices are
gathered from farmers from the first collecting point such
as fair. No adjustments are made to reduce cost incurred by
farmers such as transport. Prices are sent to the Colombo
office through fax in the same week. CIF prices for imported
commodities are obtained from the Department of Customs.
Information on production, which includes cultivated extent,
crop damage and expected yield is sent by the district
agricultural offices monthly by post. Stocks held by
government organizations such as CWE and MPCS are
reported monthly. In addition to weekly price collection, a
daily price collection programme form three principal
markets, namely Colombo, Kandy, and Dambulla was
commenced in 1955 for selected food items in order to
disseminate prices on air.
4. Data analysis is carried out in the Colombo Office.
Descriptive statistics such as range and average are worked
out and price comparisons are made as compared to last
week and last year for the same period. Weekly information
is published in the Weekly Food Commodities Bulletin,
which is released every Friday and monthly analyses are
included in the Monthly Food Information Bulletin, which
is issued in the third week of the following month. In
addition, daily wholesale prices of important commodities
such as rice, chillies, onions, potatoes and vegetables are
sent to printed and electronic media both government and
private for dissemination and by fax to daily users.
Weekly Food Commodities Bulletin
5. This is the publication of marketing and food policy
division of Hector Kobbakaduwa Agrarian Research Institute.
It is a weekly publication containing information relating to
wholesale and retail prices of food commodities. The
information is analyzed and presented as prevailing prices.
*Food Commissioner, Food Commission's Department-330, Union place, Colombo-2 (SRI LANKA).
JanuaryMarch, 2003
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Mahabir Singh
It includes price of essential food items such as rice, dried

chillies, potato, pulses, vegetables, coconut, fruits, fresh
fish, dried fish, eggs and meat. Marketing and food policy
division of the Hector Kobbakaduwa Agrarian and Training
Institute (HARTI) is responsible for market information in
Sri Lanka. Data analysis is done in Colombo Office
(HARTI). Range, average and percentage are calculated on
weekly and monthly basis. In addition, price trend and
seasonal variation have been analyzed. Information is
disseminated through both printed and electronic media.
The institute publishes two bulletins. Weekly Food
Commodities Bulletin and Monthly Food Information
Bulletin. Those bulletins carry information on price and
supply situation in the country.
Further Improvements
9. Sri Lankas economy now links with global and the
country has to face with international competition in trading
goods. This has been a challenge for us and to react to this
we need a well established market Intelligence system. This
includes:
(i)
Marketing Information System (MIS)This covers

collection, processing and reporting of the
marketing statistics. MIS is now operating
satisfactory but further inprovements are required.
Coverage of market information is inadequate.
Too much emphasis has been given to prices. For
instance retail prices are collected from some small
towns such as Galgamuwa and Tissa. In addition
to prices, market information includes marketing
costs, market arrivals, price and production
forecasts, stock assessments and consumption. In
addition to the domestic market, information on
international markets should be included into the
system.
(ii)
Marketing Extension Service (MIS)This envisages

education of farmers on selection of crops based
on market requirements, time of planting
preparation of products for the market, time of
sale and selection of market outlets. the present
extension system is not adequately equipped to
provide the necessary advice to farmers on this
line. The aim of the marketing extension service
is increase in farm income through obtaining
maximum possible returns.
(iii)
Marketing Advisory Service (MAS)this includes

providing guidelines to the parties concerned such
as policy makers for making policies and investors
for market opportunities. Hence, it is required to
undertake detailed studies. A wealth of price
information is available, but very little analysis has
been carried out. It is important to undertake
studies to identify factors affecting pricing and to
understand relationship between price and demand
(demand elasticity). In addition to price studies,
market studies to identify organization and
operation of commodity markets need to be
conducted. Detailed studies provide valuable inputs
for long term policy formulation.
The Department of Census & Statistics

6. The Department of Census and Statistics is the central
government agency responsible for the collection,
compilation, analysis and dissemination of the data
requirements of the government and other users. There
regular publications are statistical pocket book, statistical
abstract and various bulletins.
Colombo Consumers Price Index (CCPI)
7. The methodology utilized in the compilation of the
CCPI is the Laspayers price index formula. About 220
items are chosen for pricing and these includes most of the
popular goods and services people buy in the way of food,
clothing, household goods, transport and other services.
Weekly price data are collected from selected markets in
Colombo city every month specially for food items. Retail
prices of a variety of food items consist of average food
basket of a working class household. It covers Colombo
city and several other suburban areas. The price collection
programme is designed to cover both the private trader and
co-operative establishments. A supervisor is also attached
to each team of Data collection officers who conduct
random check on the data collected.
Dissemination of Data
8. The main functions of the Department of Census and
statistics is the supply of statistical data requirements to the
government organization and other users. Some of the
important steps for dissemination of data are as follows:
(i)
Opening up a sales counter in the Department

premises in addition to the Government Publication
Bureau.
(ii)
Dissemination of data through magnetic media i.e.

diskettes and CDs.
(iii)
Opening up an information unit

facilities.
(iv)
Establishment of a department web site.

(www.statistics.gov.lk)
with e-mail
Central Bank of Sri Lanka

10. There is a country-wide data collection system under
Central Bank of Sri Lanka. Under this program, Central
Bank collects producer and retail prices of major food
commodities from 100 centres. Data on retail prices are
collected on a weekly basis while producer prices re obtained
on bimonthly basis. a special training is given to the
investigation and seminars, and workshops are conducted
on a regular basis to exchange views on production patterns
56
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Mahabir Singh
and specific problems that exist. The data furnished by the

investigators are subject to close scrutiny and verification
with test data collection in the field by the officers of
Central Bank. Written instructions have been given to each
investigator. Accordingly, retail prices are collected form
shops and fairs.
11. Data compiled from the Central Bank have been
published on a regular basis. Market prices are published
on a regular basis in a table form in various publications
of Central Bank, such as monthly statistical Bulletin,
Economic and social statistics and the Annual Report.
12. Market statistics are also required to maintain the
minimum price support programmes for rice and 12 other
commodities such as chillies, onions, potatoes, maize and
green gram. The Government still continues this program
in order to safeguard farmers at harvesting time. The
Government revises minimum prices from time to time
in consultation with Ministry of Agriculture and the
Ministry of trade. Market prices in the domestic and
international market and cost of production are the
important information used in calculating minimum prices.
In addition co-operative Wholesale Establishment and
Multi-purpose Cooperative Societies require price
information to decide their procurement prices when they
cannot purchase items at a minimum price. Also
government owned marketing organizations use open
market prices to fix their retail prices.
15. Local newspapers play a prominent role in the

process of dissemination of market information. Significant
factor here is that certain newspapers are available
everywhere as its coverage is almost countrywide.
Following newspapers are within the reach of every
national including rural farmers (i) Daily NewsEnglish
publication of Associated newspapers of Ceylon Ltd.
(www.dailynews.lk) (ii) Dinamina (in Sinhala) (iii)
Thinakaran (in Tamil).
16. Within the advancement of new technology number
of mobile phone users have been significantly increased
among traders and producers. SMS (Short Message
Service) is an inbuilt facility in the mobile phone to
exchange views in written form at a very cheap rate.
Mobile phones become highly advantageons for farmers
to know of product pricing directly from the traders.
Further, it avoids unnecessary complexities like the
intervention of middlemen in the process of trading their
goods.
Ranking of source of information rogarding prices and other
aspects of agricultural markets
Rank
1
13. The largest wholesale market for rice is located at Pettah

in the city of Colombo. Entry of new participants in to the
rice market has been limited due to lack of space, inadequate
capital and absence of information. However, the number of
traders have increased after 1997 when the economic policy
reforms were implemented. Only experienced traders are
familiar with price behaviour. Farmers seem to prefer private
traders because they purchase at the farm gate.
14. Other organizations providing market information in
Sri Lanka are (i) price Processing and Development Centre
(RPDC) in Anuradhapura, (ii) Sri Lanka Broadcasting
Corporation (SLBC), (iii) Daily news papers (daily News,
Dinamina (Sinahala Thinakaran {Tamil}, (iv) Mahaweli
Authority, (v) Private radio and TV stations.
Other farmers
Traders/millers
Notice boards in market
Marketing boards
Cooperatives/association
Extension services
Newspapers
Radio/TV
Magazines
Personal visit
10
Internet
11
Other
12
JanuaryMarch, 2003
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Mahabir Singh
List of Radio/TV Stations presently Broadcasting Marketing Information

Name of programme
Institution
Location
e-mail address
1. Vegetable wholesale prices
Commercial Service of the

Sri Lanka Broadcasting Corporation (Sinhala)
Torington Square, Colombo-07.
slbcweb 3. lanka, net
2. Vegetable prices
Commercial Service of the

Sri Lanka Broadcasting Corporation (Sinhala)
3. Vegetable prices
Tamil Sevai Ondru of the Sri

Lanka Broadcasting Corporation
4. Welandapola
Lakhanda
Wickramasinghepura, Battaramulla
itnch@sit.lk
5. Market News
Sirsa/Yes FM
Depanama, Pannipitiya
6. Market Prices
Independent Tele Network
Wickramasinghepura, Battaramulla
itnch@sit.lk
7. Wholesale Prices
TNL Radio (English Service)
Dampe, Piliyandala
itnch@sit.lk
8. Regional Prices
Mahaweli Community Radio
Mahailluppalama, Anuradhapura
9. Weekly Market Review
Swadeshiya Sevaya of Sri Lanka

Broadcasting Corporation
Independence Square, Colombo-07.
slbcweb3lanka.net
Swadeshiya Sevaya of Sri Lanka

Broadcasting Corporation
Independence Square, Colombo-07.
slbcweb3lanka.net
10. Govilam Sangarawa
Abstract of Daily News Newspaper Pettah Market Prices

Wholesale Prices
Item
Retail Prices
22-01-2003
Week ago
*1
Month
Ago *2
22.01.2003
Week ago
(average)
Month ago
(Average)
Samba Rice
43-46
43-46
38-46
48.00
48.00
45.05
Sakulu Raw Rice
29-30
28-30
27-30
34.00
34.00
33.58
Beans
50-55
45-55
10-80
70.00
70.00
60.05
Cabbage
30-35
25-35
15-30
60.00
60.00
39.89
Carrot
50-60
70-80
40-90
100.00
106.67
76.05
Tomatoes
40-45
30-50
30-60
60.00
58.33
66.89
Pumpkin
8-10
10-12
8-18
20.00
22.00
24.47
Snakegourd
25-30
25-30
10-30
40.00
38.33
31.21
Brinjals
20-25
50-60
25-80
48.00
76.67
58.00
Ash Plantains
35-40
35-40
20-40
55.00
46.00
44.89
Big Onion (Imported)
18-21
18-21
15-30
26.00
28.00
30.58
Potatoes (N. Eliya)
50-52
48-50
50-58
60.00
60.00
62.63
125.00
135.00
130-140
145.00
150.00
150.00
48.00
48.00
48-49
56.00
56.00
56.00
4.60
4.60
4.40-5.70
4.70
4.70
5.38
16-17
15-17
15-17
18.00
17.33
17.95
Dried Chillies (Imported)

Dhal
Egg (Each)
Coconut (Each)
58
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Mahabir Singh
Kelawalla
150.00
120-130
90-160
230.00
296.67
190.53
Balaya
110.00
80-100
70-120
120.00
120.00
103.16
Salaya
60.00
50-60
30-80
70.00
70.00
62.63
Paraw
200.00
140.-180
120-240
210.00
193.33
150.83
Rice: Wholesale pricesMaradagahamula (Rs. per Kg)

Item
22.01.2003
Week age *1
Month
ago *2
Samba Kekulu
37-39
37-39
34-38
Raw White Kekulu
24-25
24-25
24-25
Raw Red
28-29
28-29
28-29
Nadu
24-25
24-25
24-26
*1Lowest and highest prices prevailed during the week.

*2Lowest and highest prices prevailed during the month.
Source : Central Bank of Sri Lanka.
JanuaryMarch, 2003
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Mahabir Singh
LET
"AGRICULTURAL MARKETING"
(QUARTERLY JOURNAL)
BE
YOUR MEDIUM
OF
PUBLICITY
The Pre-payable rates are :
Period
Full page
Half page
Quarter page
4 Issues (Year)
Single issue
Rs. 800/Rs. 250/-
Rs. 500/Rs. 150/-
Rs. 350/Rs. 100/-
N.B. : The rates are increased by (i) 50% for 1st Opening page and outside back cover; and (ii) 25% for Inside
front Cover and Inside back cover for which full page advertisements are accepted.
Apply for further particulars to :
The Controller of Publications

Department of Publications
Civil Lines
DELHI-110 054
Telephone No. 23812527
60
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fof/k lkfgR;
izdk'ku
fof/k lkfgR;
izdk'ku
fof/k lkfgR;
izdk'ku
fof/k lkfgR;
izdk'ku
fof/k lkfgR;
izdk'ku
JanuaryMarch, 2003
61
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Mahabir Singh

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tuojh&&ekpZ] 2003

A National Level Quar

foi.ku ,oa fujh{k.k funs'kky;

Shri R. C. A. Jain takes over as Secretary, Agriculture

Agricultural Marketing Adviser

'kq)rk vkSj DokfyVh dk ,xekdZ iSekuk]

ikS"k&&pS=] 1924&25 'kd

Making Marketing Information Services Relevant to

Development of Internet Based Agricultural Marketing

Agricultural Marketing Information System in Myanmar.

Agricultural Marketing System in Bangladesh

Agricultural Marketing System in Malaysia

Agricultural Marketing System in Pakistan

Agricultural Marketing System in Philippines

Agricultural Marketing System in Sri Lanka

FAO/AFMA/Myanmar Regional Seminar on Improving Agricultural Marketing Information System

he seminar discussed four technical papers, 13 countries

(TCDC)exchange to enable MIS in the region to learn

The seminar suggested that AFMA should develop

The seminar stressed that farmers required assistance

The seminar observed that timely dissemination of

Fresh & Pagination

part of the media or lack of government support. It urged

equate time to broadcast necessary market information.

The seminar agreed that while information related to

The seminar emphasized that as trade participation

The seminar felt that knowledge recorded and stored

The seminar noted that television is rapidly becoming

AGMARK IS THE SYMBOL, QUALITY IS THE REALITY

Fresh & Pagination

Making Marketing Information Services Relevant to Farmers

ormally, when I make a presentation on market

4. The type of transaction can be confusing for farmers and

Fresh & Pagination

a few grain prices are broadcast on the radio, and then

to access market information in this way. Technology is

Fresh & Pagination

possible (charges could be made for a newsletter but this would

19. If MIS are to be relevant they must provide information

^,xekdZ 'kq)rk dh igpku gS

Fresh & Pagination

Development of Internet based Agricultural Marketing

arket information is an important facilitating function

transform information emanating from various sources in a

Fresh & Pagination

the internet for the farmers would provide wider marketing

Establish a nation-wide market information

Facilitate collection and dissemination of

methods, market functionaries, market laws, etc.

Sensitize and orient farmers to respond to new

Improve efficiency in agricultural marketing

Provide assistance for marketing research to

10. The internet based information system aims at providing

Supply and installation of the hardware at

Development of software to be used by market

Development of websiteAgmarknet portal at

Fresh & Pagination

Training market personnel in (i) handling of

Internet connectivity to individual market nodes

Development of state level portalssupply of

Interactive workshops with Agmarknet nodes

Preparation of 'Atlas of Agricultural Markets'

Preparation of commodity profiles for all major

Research and Updationthe knowledge