ECONOMIC ANALYSIS OF BOVINE MARKETING IN ORGANISED CATTLE FAIRS OF RAJASTHAN

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1 ECONOMIC ANALYSIS OF BOVINE MARKETING IN ORGANISED CATTLE FAIRS OF RAJASTHAN THESIS SUBMITTED TO THE NATIONAL DAIRY RESEARCH INSTITUTE, KARNAL (DEEMED UNIVERSITY) IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF DOCTOR OF PHILOSOPHY IN AGRICULTURAL ECONOMICS BY GOUTAM DAS M.Sc. (Dairy Economics) DIVISION OF DAIRY ECONOMICS, STATISTICS & MANAGEMENT NATIONAL DAIRY RESEARCH INSTITUTE ( I.C.A.R.) KARNAL (HARYANA), INDIA 2013 Regn. No

2 DEDICATED TO MY BELOVED PARENTS

3 ECONOMIC ANALYSIS OF BOVINE MARKETING IN ORGANISED CATTLE FAIRS OF RAJASTHAN BY GOUT AM DAS ~.~., ~,"~r~ THESIS SUBMITTED TO THE NATIONAL DAIRY RESEARCH INSTITUTE, KARNAL (DEEMED UNIVERSITY) IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF DOC TO R OF PHILOSOPHY IN AGRICUL TURAL ECONOMICS ~.H~. Lt. 13 EXj;~ ~XA~INER Approved by MAJOR ADVIS, r;. /'.: IN( & CHAIRMAN 1. Dr. K. K. Datta Members of Advisory committee: Principal Scientist & Head, DES&M Division, NDRI 2. Dr. Smita Sirohi Principal Scientist, DES&M Division, NDRI 3. Dr. Ravinder Malhotra Principal Scientist, DES&M Division, NDRI 4. Dr. Raka Saxena Senior Scientist, NCAP 5. Dr. B. S. Meena Senior Scientist, Dairy Extn. Division, NDRI ~ (/.~l ' t~1 _U:;-~_lb!-~/L 1 ~ ~ Mf~~ m"~~~i\\'(',

4 DES&M DIVISION NATIONAL DAIRY RESEARCH INSTITUTE (DEEMED UNIVERSITY) KARNAL (HARY ANA), INDIA Dr. D. K. Jain Principal Scientist CERTIFICATE This is to certify that the thesis entitled, "ECONOMIC ANALYSIS OF BOVINE MARKETING IN ORGANISED CATTLE FAIRS OF RAJASTHAN" submitted by GOUT AM DAS towards the partial fulfilment of the requirement for the award of the degree of DOCTOR OF PHILOSOPHY in AGRICULTURAL ECONOMICS of the NATIONAL DAIRY RESEARCH INSTITUTE (DEEMED UNIVERSITY), Kamal (Haryana), India, is a bonafide research work carried out by him under my supervision, and no part of the thesis has been submitted for any other degree or diploma. Dated: f1#' April, 2013

5 II ACKNOWLEDGEMENT JI It gives me immense pleasure to express my heartiest gratitude to my Guide and Major Advisor, Dr. D. K. Jain, Principal Scientist, Dairy Economics, Statistics & Management Division, NDRI, Kamal for his valuable guidance, continuous encouragement & moral support during the entire period of the study. I feel proud to be a researcher under his inspiring guidance. I sincerely thank advisory committee members, Dr. K. K. Datta (Head, DES&M Division), Dr. Smita Sirohi (Principal scientist, DES&M Division), Dr. Ravinder Malhotra (Principal scientist, DES&M Division) & Dr. Raka Saxena (Senior scientist, NCAP) and Dr. B. S. Meena (Senior Scientist, Dairy Extension Division) for their guidance, valuable suggestions & cooperation from time to time throughout my research work. It am thankful to Dr. J. P. Dhaka, (Emeritus Scientist, DES&M Division) for his valuable guidance during the difficult periods of my research work. Further, I express my gratitude to Dr. S. S. Lathwal (Senior Scientist, LPM Division), Dr. Shiv Prasad (Head, LPM Division) and Dr. Arun Pandit (Senior Scientist, CIF,RI) for their valuable suggestions. I' am extremely thankful to the officials of the Department of Animal Husbandry, Government of Rajasthan, particularly to Dr. Rajesh Verma, Dr. Prakash Sharma and Dr. Narender Choudhury for helping me during data collection. I am thankful to the friendly people of Rajasthan who were very helpful. I am extremely grateful to my seniors, friends and beloved juniors of NDRI for their help and cooperation throughout my study at NDRI. I express my gratitude to the NDRI and UGC for providing the required technical and financial assistance during my study. Where emotions are involved words cease to have meaning but only feelings in paying my most heartfelt gratitude to my adored father who took pains in bringing me at this stage in the absence of my late mother. Today when I am going to complete my Ph.D., the person whom I miss the most in the world is my mother who dreamt of my successful career since my childhood and never kept any pre-condition before me. My tearful tribute goes to this most beloved person whom I will never get back in this life. Last but not the least, I am also thankful to those directly or indirectly during my study at Kamal. people who had helped me Dated: April, 2013 (Goutam Das) ~ '..

6 CONTENTS Chapter Title Page No. 1. INTRODUCTION Livestock sector in India Specification of the problem Objectives Limitations of the study Organisation of the study 7 2. REVIEW OF LITERATURE Organisational and functional structure of cattle fairs/markets Marketing channel, marketing cost, market margin, price spread and marketing efficiency Factors influencing the market price of bovine Reasons for sale and purchase and constraints faced by different marketing functionaries PROFILE OF THE CATTLE FAIRS IN RAJASTHAN Background of the state level cattle fairs Brief description of the state level cattle fairs Objectives of the state level cattle fairs Facilities provided by various departments METHODOLOGY Sampling design Data collection Analytical framework RESULTS AND DISCUSSION Socio-economic profile of the sellers and buyers Age group-wise distribution of sample sellers and buyers across selected fairs Educational level of sample sellers and buyers across selected fairs Occupation wise distribution of sample sellers and buyers across selected fairs 71

7 Chapter Title Page No. 1.2 Organisational and functional structure of the cattle fairs/markets Organisational structure of the cattle fairs Market functionaries Sources and destinations of animals Mode of transportation used by sellers and buyers Types of animals assembled and transacted in the selected cattle fairs/markets Distribution of bovine transacted by sample sellers and buyers according to type and breed in the selected cattle fairs/markets Method of transaction and sale price fixation Fee structure Income and expenditure of cattle fairs Degree of sellers and buyers concentration in the Fairs Condition of entry and exit Marketing channel, marketing cost, market margin, price spread and marketing efficiency Marketing of cattle bullocks Marketing channels Marketing cost Price spread and marketing efficiency Marketing of milch cows Marketing channels Marketing costs Price spread and marketing efficiency Marketing of milch buffaloes Marketing channels Marketing cost Price spread and marketing efficiency Mean prices of different categories of bovine Mean prices of bullocks of different breeds Mean prices of lactating cows of different breeds Mean prices of dry cows of different breeds Mean prices of lactating buffaloes of different breeds Mean prices of dry buffaloes of different breeds 186

8 Chapter Title Page No. 5.5 Factors influencing the fair/market price of different kinds of bovine Factors influencing the price of cattle bullocks Factors influencing the price of lactating cows Factors influencing the price of dry cows Factors influencing the price of lactating buffaloes Factors influencing the price of dry buffaloes Reasons of sale and purchase of bovine and constraints faced by different marketing functionaries Reasons for sale of cows/she-buffaloes Reasons for purchase of cows/she-buffalo es Reasons for sale of cattle bullocks Reasons for purchase of cattle bullocks Reasons for sale of buffalo bulls Reasons for purchase of buffalo bulls Constraints faced by sellers Constraints faced by buyers SUMMARY AND CONCLUSIONS Summary of the study Conclusions Policy recommendations 242 BIBLIOGRAPHY i viii ANNEXURES I - II

9 LIST OF TABLES Table No. Title Page No. 3.1 State level cattle fairs of Rajasthan Livestock transaction in the 10 state level cattle fairs during to Temperament score card Age group-wise distribution of sellers and buyers across selected fairs Distribution of sellers and buyers according to education level across selected fairs Occupation wise distribution of sellers and buyers across selected fairs Mode of transportation adopted by sellers and buyers in the selected fairs Different types of animals assembled in the selected cattle fairs during Number and Compound Annual Growth Rate (CAGR) of cattle, buffalo and total animal assembled in the selected cattle fairs during to Different types of animals transacted in the selected cattle fairs during Number and Compound Annual Growth Rate (CAGR) of cattle, buffalo and total animal transacted in the selected cattle fairs during to Ratio of transacted of animals to assembled animals in the Selected cattle fairs during Total bovine transacted by sample sellers and buyers in the selected cattle fairs Breed-wise distribution of bovine in selected cattle fairs Fee structure in the organised cattle fairs of Rajasthan Income and expenditure from the selected cattle fairs during

10 Table No. Title Page No Compound Annual Growth Rate (CAGR) (in %) of income and expenditure (in Rs.) of the selected cattle fairs during to Sources of income from the state level cattle fairs Size distribution and coefficient of inequality of bovine sellers across selected cattle fairs Size distribution and coefficient of inequality of bovine buyers across selected cattle fairs Distribution of bullocks across different marketing channels in selected cattle fairs Average cost of farmer seller in marketing of bullocks (Channel 1: Farmer Farmer) Average cost of farmer buyer in marketing of bullocks (Channel 1: Farmer Farmer) Average cost of local trader seller in marketing of bullocks (Channel 2: Farmer - Local Trader - Farmer) Average cost of farmer buyer in marketing of bullocks (Channel 2: Farmer - Local Trader - Farmer) Average cost of farmer seller in marketing of bullocks (Channel 3: Farmer - Local Trader) Average cost of local trader buyer in marketing of bullocks (Channel 3: Farmer - Local Trader) Average cost of distant trader seller in marketing of bullocks (Channel 4: Farmer - Distant Trader - Farmer) Average cost of farmer buyer in marketing of bullocks (Channel 4: Farmer - Distant Trader - Farmer) Average cost of farmer seller in marketing of bullocks (Channel 5: Farmer - Distant Trader) Average cost of distant trader buyer in marketing of bullocks (Channel 5: Farmer - Distant Trader) Average cost of local trader seller in marketing of bullocks (Channel 6: Farmer - Local Trader - Distant Trader) Average cost distant trader buyer in marketing of bullocks (Channel 6: Farmer - Local Trader - Distant Trader) 122

11 Table No. Title Page No Price spread and marketing efficiency in bullock marketing (Channel 1: Farmer Farmer) Price spread and marketing efficiency in bullock marketing (Channel 2: Farmer - Local Trader - Farmer) Price spread and marketing efficiency in bullock marketing (Channel 4: Farmer - Distant Trader - Farmer) Price spread and marketing efficiency across different bullock marketing channels Distribution of milch cows across different marketing channels in selected cattle fairs Average cost of farmer seller in marketing of milch cows (Channel 1: Farmer Farmer) Average cost of farmer buyer in marketing of milch cows (Channel 1: Farmer Farmer) Average cost of local trader seller in marketing of milch cows (Channel 2: Farmer - Local Trader - Farmer) Average cost of farmer buyer in marketing of milch cows (Channel 2: Farmer - Local Trader - Farmer) Average cost of farmer seller in marketing of milch cows (Channel 3: Farmer - Local Trader) Average cost of local trader buyer in marketing of milch cows (Channel 3: Farmer - Local Trader) Average cost of distant trader seller in marketing of milch cows (Channel 4: Farmer-Distant Trader-Farmer) Average cost of farmer buyer in marketing of milch cows (Channel 4: farmer - Distant Trader - Farmer) Average cost of farmer seller in marketing of milch cows (Channel 5: Farmer - Distant Trader) Average cost of distant trader buyer in marketing of milch cows (Channel 5: Farmer - Distant Trader) Average cost of local trader seller in marketing of milch cows (Channel 6: Farmer - Local Trader - Distant Trader) Average cost of distant trader buyer in marketing of milch cows (Channel 6: Farmer - Local Trader - Distant Trader) 150

12 Table No. Title Page No Price spread and marketing efficiency in milch cow marketing (Channel 1: Farmer Farmer) Price spread and marketing efficiency in milch cow marketing (Channel 2: Farmer - Local Trader - Farmer) Price spread and marketing efficiency in milch cow marketing (Channel 4: Farmer - Distant Trader - Farmer) Price spread and marketing efficiency across different milch cow marketing channels Distribution of milch buffaloes across different marketing channels in selected cattle fairs Average cost of farmer seller in marketing of milch buffaloes (Channel 1: Farmer Farmer) Average cost of farmer buyer in marketing of milch buffaloes (Channel 1: Farmer Farmer) Average cost of local trader seller in marketing of milch buffaloes (Channel 2: Farmer - Local Trader - Farmer) Average cost of farmer buyer in marketing of buffaloes (Channel 2: Farmer - Local Trader - Farmer) Average cost of farmer seller in marketing of milch buffaloes (Channel 3: Farmer - Local Trader) Average cost of local trader buyer in marketing of milch buffaloes (Channel 3: Farmer - Local Trader) Average cost of distant trader seller in marketing of milch buffaloes (Channel 4: Farmer - Distant Trader Farmer) Average cost of farmer buyer in marketing of milch buffaloes (Channel 4: Farmer - Distant Trader Farmer) Average cost of farmer seller in marketing of milch buffaloes (Channel 5: Farmer - Distant Trader) Average cost of distant trader buyer in marketing of milch buffaloes (Channel 5: Farmer - Distant Trader) Price spread and marketing efficiency in milch buffalo marketing (Channel 1: Farmer Farmer) Price spread and marketing efficiency in milch buffalo marketing (Channel 2: Farmer - Local Trader - Farmer) 178

13 Table No. Title Page No Price spread and marketing efficiency in milch buffalo marketing (Channel 4: Farmer - Distant Trader - Farmer) Price spread and marketing efficiency across different milch buffalo marketing channels Mean prices of bullocks of different breeds Mean prices of lactating cows of different breeds Mean prices of dry cows of different breeds Mean prices of lactating buffaloes of different breeds Mean prices of dry buffaloes of different breeds Factors influencing the price of cattle bullocks Factors influencing the price of lactating cows Factors influencing the price of dry cows Factors influencing the price of lactating buffaloes Factors influencing the price of dry buffaloes Mean score for reasons for sale of cows/she-buffaloes and associated ranks Mean score for reasons for purchase of cows/she-buffaloes and associated ranks Mean score for reasons for sale of cattle bullocks and associated ranks Mean score for reasons for purchase of cattle bullocks and associated ranks Mean score for reasons for sale of buffalo bulls and associated ranks Mean score for reasons for purchase of buffalo bulls and associated ranks Mean score for constraints reported by sellers and the associated ranks Mean score for constraints reported by buyers and the associated ranks 227

14 LIST OF FIGURES Figure No. Title After Page No. 3.1 Map of Rajasthan showing different districts Map of Nagore district of Rajasthan Map of Bharatpur district of Rajasthan Map of Ajmer district of Rajasthan Organisational structure of state level cattle fairs of Rajasthan 74

15 LIST OF PLATES Plate No. Title After Page No. 1. Bullocks in Ramdev cattle fair of Nagore A shop in Ramdev cattle fair of Nagore A view of Veer Tejaji cattle fair of Parbatsar Buffalo bulls in Veer Tejaji cattle fair of Parbatsar Milch buffaloes in Jaswant cattle fair of Bharatpur A view of seller with milch cow in Jaswant cattle fair of Bharatpur A view of Puskar cattle fair of Puskar (Ajmer) A glimpse of foreign tourists in Puskar cattle fair 86

16 ABSTRACT An efficient livestock marketing system is an important component of livestock development. Majority of the livestock trade is carried out through unorganised markets in India as organised livestock markets are limited. Rajasthan has 10 state level organised cattle fairs that provide important platform for transaction of different livestock species. In spite of the importance of cattle fairs in socio-economic life of Rajasthan, both the number of assembled and transacted animals has been decreasing over the years. The present study on Economic Analysis of Bovine Marketing in Organised Cattle Fairs of Rajasthan was undertaken to answer this declining performance through a detailed study of existing organisational and functional structures, channels operating for transaction of different livestock species along with associated costs and marketing efficiency in each channel, factors affecting prices of different animals and most importantly, the constraints faced by different marketing functionaries. Out of 10 cattle fairs, 4 cattle fairs viz., Ramdev, Veer Tejaji, Jaswant and Puskar were selected on the basis of maximum average bovine transaction during to A sample of 30 sellers and 30 buyers from each cattle fair were selected randomly for primary data collection. Tabular and statistical analysis formed the basis of analytical framework. Cattle fairs of Rajasthan were controlled by Department of Animal Husbandry, Govt. of Rajasthan. Sellers, buyers and traders were the major marketing functionaries and brokers were banned. Arrival of cattle, buffalo and total animals declined with a Compound Annual Growth Rate (CAGR) of , and per cent while transaction declined at a CAGR of -1.51, and per cent respectively over to However, income and expenditure during same period grew at a CAGR of 4.93 and 4.04 per cent respectively. There was ban on male cattle below 3 years age from going to other states which discouraged its purchase by outside buyers. Out of total bovine transacted by sample sellers and buyers, bullocks accounted for major share (30.80 %) followed by milch cow (17.68 %), cattle young stock (12.58 %), buffalo bull (12.17 %) and milch buffalo (10.88 %). Further, bovine sellers were relatively more inequitably distributed than bovine buyers. Six marketing channels viz., (I) Farmer-Farmer, (II) Farmer-Local Trader- Farmer (III) Farmer-Local Trader IV) Farmer-Distant Trader-Farmer (V) Farmer-Distant Trader and (VI) Farmer-Local Trader-Distant Trader existed for marketing of different kinds of bovine. The most efficient channel was Farmer-Farmer for all bovine categories as producer s share in consumer s rupee was highest in it. Age, general appearance, breed were significant factors that influenced prices of bullocks. In case of lactating cows, milk yield, breed and general appearance whereas in case of dry cows, general appearance, mammary system and breed were the major factors that affected prices. Further, breed, milk yield and general appearance for lactating buffaloes and general appearance, mammary system and breed for dry buffaloes were major factors that influenced prices. Immediate cash requirement and scarcity of feeds & fodder were the major reasons for sale of different types of bovine. Rearing for milk purpose was the main reason for purchasing milch animals whereas, use in agricultural operations & transportations were main reasons for purchasing cattle bullocks & buffalo bulls. For sellers, inadequate infrastructure as well as feeds and fodder at fairs whereas for buyers, inadequate infrastructure as well as feeds and fodder at fairs and delay in Rawanna date were major constraints. Development of infrastructure, permission to buyers to leave after transaction, withdrawal of ban imposed on male cattle below 3 years age for taking to other states, improving market information services and supply of technological inputs in adequate quantity are suggested to improve the performance of cattle fairs of Rajasthan.

17 र जस थ न क स गठ त पश म ल म ग ज त य व पणन क आर थ क व श ल षण

18 CHAPTER - 1 Introduction

19 1. INTRODUCTION 1.1 LIVESTOCK SECTOR IN INDIA In India, livestock is one of the major components of mixed farming. According to the 18 th Livestock Census (Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, Government of India), India possesses the largest livestock population (57 % of the world s buffalo and 14 % of the cattle population) after Brazil. India possesses million livestock out of which cattle constitutes million, buffalo million, goat million and sheep million. Contribution of livestock sector to the total GDP was 3.64 per cent in (National Accounts Statistics- 2012, Government of India).While the share of agricultural GDP to the total GDP has been declining, share of livestock GDP to the agricultural GDP has been steady i.e., from per cent in to per cent in (National Accounts Statistics-2012, Government of India). Besides having vast regular income and employment potential, livestock sector provide not only milk, egg, meat, wool, dung, bone, hooves and draft power but also stabilizes farm income in rural areas. Sustenance of rural livelihood is directly and positively linked with livestock sector. Therefore, a balanced programme of diversified agriculture with animal husbandry activities is of great importance for rural development. 1.2 SPECIFICATION OF THE PROBLEM Today, the development of livestock sector has been recognised by government as an instrument for poverty alleviation among rural masses. Efficient livestock marketing practices have also been considered as an important component of livestock development as it helps in accelerating and sustaining livestock rearing by increasing income (Sharma and Singh, 1998). In spite of huge potential, it has been seen that livestock marketing in India is not being carried out on systematic lines. Still a major chunk of livestock trade 1 Introduction

20 is carried out through unorganised markets involving different middlemen and unnecessary market charges. In India, organised livestock markets/fairs are found only in some states like Rajasthan, Punjab and Haryana and few more. In the past, several studies on livestock marketing were conducted by different researchers in different regions of India. Jain and Khan (2007) studied the cattle markets of Chattisgarh and found that the markets were unorganised and a big chunk of the sale price of seller was shared by middlemen. Arora and Pandey (1992) found that the share of producer/breeder in consumer s rupee was only 68 per cent in the large market as compared to 73 per cent in small markets of Haryana. Pandit (2005) studied the cattle and goat marketing in West Bengal and identified six marketing channels for cows out of which farmer-farmer channel was found to be the most efficient both for cows and goats. Autkar et al. (1996) while studying the buffalo marketing in Akola district of Maharashtra found that type of breed, order of lactation and milk yield per day were the preferential characters for determining the price of a buffalo in the markets. Rajarajan (2000) studied the factors influencing the prices of milch cattle in Tamil Nadu and found that milk yield was the single largest factor which determines the market price of milch cattle. Conduction of these kinds of location specific research is very much relevent as resource endowment varies from region to region in India. Location specific research can examine the local problems and prospects in a comprehensive manner and thus help the policy makers in formulating successful location specific livestock marketing and development programmes. Rajasthan which has 10.4 per cent (3,42,239 sq.km.) of the country s total geographic area, is endowed with different kinds of livestock. Animal husbandry in Rajasthan is closely interwoven with agriculture and plays an important complimentary role in shaping the rural economy by providing gainful employment and regular flow of income to small and marginal farmers, agricultural labourers, farm women and other deprived sections. Further, livestock contributes a large portion of the draft power for agriculture, with approximately 50 per cent of the cattle population and 25 per cent of the 2 Introduction

21 buffalo population being employed as draft power for cultivation in the state. However, the most significant aspect of livestock sector is that it contributes 10 per cent of total GDP of the state (Report of Working Group on Animal Husbandry & Dairying, 11th Five Year Plan). Development of livestock sector thus has a significant beneficial impact in generating employment and reducing poverty in rural areas. Therefore, livestock development is a critical pathway to rural prosperity in the state. As per the 18 th Livestock Census (2007), Rajasthan has million livestock (which include Cattle, buffalo, Sheep, Goat, Pig, Camel, Horse and donkey) out of which bovine constitute million (12.41 million cattle and million buffaloes). The statistics of 18 th Livestock Census (2007) further indicates that there has been a significant change in the dynamics of cattle and buffalo population i.e., per cent increase in cattle and per cent increase in buffalo population as compared to 17 th Livestock Census (2003). Presently, Rajasthan has about 6.11 per cent of country s cattle population and per cent of buffalo population and contributes over 10 per cent of total milk production in the country. The per capita availability of milk in Rajasthan is 395 grams/day (Basic Animal Husbandry Statistics, 2010). Since Rajasthan is endowed with various breeds of different livestock species, the marketing of livestock through cattle fairs have immense importance in the socio-economic matrix of the state from time immemorial. The cattle fairs act as important platform for sale and purchase of livestock adding to the income of livestock owners / breeders and traders in the state. For livestock marketing, 10 state level cattle fairs are organised every year by the Directorate of Animal Husbandry, Government of Rajasthan in different parts of the state under the State Level Cattle Fair Act, These cattle fairs are held on the traditional dates (tithi) and month (mah) in accordance with the Hindu calendar year. The performance of state level cattle fairs in Rajasthan during to in terms of the number of animals brought ranges from lakh and sold ranges from thousand (including cattle, camels, buffaloes, and other livestock). Total 3 Introduction

22 turnover and revenue received by the government have significantly increased during the period. Revenue received by the government through state level cattle fairs is being used for the development of sites for these fairs. The animal breeders earn about Rs crores annually through the sale of the animals. Besides these state level cattle fairs, nearly 250 cattle fairs having the duration of 2-3 days are also being organised by different agencies like municipality, panchayat samities, gram panchayats. The heritage of Rajasthan and its cultural diversities are well projected in the various state level cattle fairs. These fairs are conducted with the aim to draw the attention to the scientific and technical developments in the animal husbandry sector and to motivate the people for developing and rearing elite animals. Cows and buffaloes are economically explored for dairy purposes. The bullocks are preferred for draught purpose due to their lightweight and because of their being more active in nature. Therefore, cows serve dual purpose for breeding dairy stock and drought bullocks. The dynamic changes in livestock sector of Rajasthan are evident not only in terms of changes in the livestock population especially cattle and buffalo, but also in the marketing pattern. In spite of the increase in the livestock population in 18 th livestock census as compared to previous census, the number of animals both assembled and transacted in the state level cattle fairs has been decreasing over the years. In the past, two studies were conducted on the cattle fair of Rajasthan by different researchers (Varghese and Sharma, 1996; Sharma and Singh, 1998). However, there was no study that could assess the existing marketing system comprehensively as well as answer the question of declining trend in assembling and transaction of animals. Therefore, there are still various issues relating to livestock marketing that have been left untouched and need comprehensive research for assessing the efficiency of present livestock marketing system in the state and improve it further. Firstly, studying the organisational and functional structure of cattle fairs/markets will focus on different marketing functionaries involved; types of livestock marketed and their composition; fee structure; degree of sellers and buyers concentration etc. The degree of sellers and buyers concentration in the markets will examine the extent of inequality in the 4 Introduction

23 size distribution of sellers and buyers in the market. Secondly, studying the marketing costs, market margin, price spread and marketing efficiency of different channels involved in the marketing of different bovine are other important economic indicators to investigate as these reveal as to how much percentage of buyer s rupee is received by the farmer-seller, the margin earned by the trader, marketing cost incurred by sellers and buyers and finally the efficiency of marketing for a specific marketing channel. It will further indicate whether it is the increased marketing cost that leads the sellers and buyers not to come to the state level cattle fairs or there are some other reasons. Thirdly, factors responsible for price variation is of considerable importance for investigation as it will indicate the impact of different factors on price variations of bovine in the cattle fairs/markets. Fourthly, the identification of various reasons for selling and buying of bovine and the constraints faced by different market functionaries involved in the cattle fairs/markets is equally important. It will help in making policy recommendations to the state level controlling authority of these regulated cattle fairs to minimise the problems faced by the sellers, buyers and other functionaries involved in the marketing of animals. So, a comprehensive study of the bovine marketing in Rajasthan would analyse all the relevant aspects of marketing and would help to comprehend the problem of bovine marketing as a component of livestock development in the state in a better perspective. Keeping all the above relevant aspects in view, the present study has been conducted on the topic Economic Analysis of Bovine Marketing in Organised Cattle Fairs of Rajasthan with the following specific objectives: 1.3 OBJECTIVES 1. To study the organisational and functional structure of selected cattle fairs. 2. To estimate the marketing cost, market margin, price spread and marketing efficiency of different bovine marketing channels. 3. To examine the factors influencing the market price of different kinds of bovine. 5 Introduction

24 4. To identify the reasons for sale and purchase of bovine and the constraints faced by different marketing functionaries. 1.4 LIMITATIONS OF THE STUDY Research studies in the field of social sciences where we deal with human beings are rarely free of limitations. Sometimes such studies are far from the control of researchers. These limitations may be more acute with the research scholars who are faced with the constraints in terms of limited resources and time. Some of the limitations observed by the researcher during the present study are listed below: 1. The data were collected by personal interview method. The respondents in the cattle fairs did not maintain any record. Though every effort was made to record information as accurate as possible, the estimates might be affected by non-sampling errors such as under or over reporting by the respondents as their information were largely based upon the memory. Further, the possibility of providing intentionally wrong information by the respondents could also not be ruled out. 2. Time series data were available on the number of animals assembled and transacted as well as income and expenditure from the cattle fairs. Therefore, to get the idea of performance of these state level cattle fairs over the year, compound annual growth rates were calculated for all the above aspects. However, there were no time series data regarding the prices of different animals and therefore, variation and growth pattern with regard to animal prices could not be worked out. 3. Out of six different marketing channels identified for different kinds of bovine, data could be obtained for three channels over the entire length; however, the ultimate buyers with respect to three other channels could not be traced and therefore, data for these channels could be obtained up to the point of reach. 4. The findings of the study were based on the information collected from the limited number of respondents from four state level 6 Introduction

25 organised cattle fairs out of ten and therefore, these findings cannot be generalized for the whole state as well as other states where unorganised livestock marketing system also co-exist. 1.5 ORGANISATION OF THE STUDY The study has been presented in six chapters. Chapter 1 introduces the problem and also covers objectives and limitations of the study. In chapter 2 review of literature pertaining to the study is presented. A profile of the study area is given in chapter 3. A detailed methodology used in the course of study is presented in chapter 4. Chapter 5 deals with the results along with their discussion. Finally, chapter 6 deals with the summary and conclusions emerged from the study. 7 Introduction

26 CHAPTER - 2 Review of Literature

27 2. REVIEW OF LITERATURE A comprehensive review of literature regarding the research problem under study is very important in order to establish the body of existing knowledge and compare the findings of the project with the others. Keeping in view the objectives of the present investigation, earlier research findings and reports which have a bearing directly or indirectly on the investigation have been delineated in the present chapter under the following sub-headings: 2.1 Organisational and functional structure of cattle fairs/markets 2.2 Marketing channel, marketing cost, market margin, price spread and marketing efficiency 2.3 Factors influencing the market price of bovine 2.4 Reasons for sale and purchase and constraints faced by different marketing functionaries 2.1 ORGANISATIONAL AND FUNCTIONAL STRUCTURE OF CATTLE FAIRS/MARKETS Market structure generally refers to those characteristics which exert considerable influence on the nature of competition as well as pricing within the market. It analyses the market competitiveness by studying the buyers and sellers concentration in the market. Market shares of buyers and sellers measures such concentration. Marketing cost, market margin, price spread and marketing efficiency naturally depends on the structure of a livestock market. Several studies have been undertaken in the past by researchers in India. The available literature on this important aspect of livestock marketing has been reviewed in the following paragraphs. Sidhu and Johl (1966) studied the structure of cattle markets in Punjab and observed that cattle fairs over there have developed typical institutions and structures like buyers, sellers, dealers, brokers, contractors and market 8 Review of Literature

28 organizing authorities. Producers were classified into professional breeders and cultivators whereas dealers were classified into professional cattle dealers and nomadic cattle dealers. They further observed that for assembling and distribution of animals in the markets, the shares of producers and dealers were 35 and 65 per cent respectively. The cattle fairs were organised by concerned panchayat samities or municipal committees. They controlled and supervised the activities of the various functionaries involved in the market and collected market charges. Singh (1979) studied the marketing practices of buffalo in Haryana state and observed that there were four important agencies involved in the marketing of buffalo. These were producers, wholesale dealers, nomadic or vanderer dealers and slaughter stock dealers. Further, he found that the important market functionaries involved were brokers, mela choudharies, registration clerks, change man and contractors. It was found that majority of buffaloes (> 50 %) were sold through direct negotiation between buyers and sellers in the market, while sales through brokers were accounted for about 40 per cent. Further, he observed that about 40 per cent producers finance their marketing operations from their own savings. The next important source was money lenders (26%). The institutional agencies contributed only 2.5 per cent in the buffalo trade financing. He further reported that the regular staff which includes one cattle fair officer, one cattle fair inspector one accountant and one peon at each cattle fair circle headquarter were appointed by the state government. Arora (1983), while studying the bullock market structure in Haryana worked out the degree of buyers and sellers concentration separately for small, medium and large markets. He found that bulk of the sellers in all the markets had sold on an average 1 to 3 animals, followed by 4 to 6 animals, while 50 to 51 per cent of the buyers had purchased 3 or less number of animals. The coefficient of inequality i.e., Gini Concentration Ratio increased for sellers from to and for buyers it decreased from to in the year over Further, he observed that 56 per cent of the bullocks were sold almost every year in the age group of 1 to 2 9 Review of Literature

29 years. With regard to the breed wise distribution of bullocks, he observed that 80 per cent of the bullocks sold were of the Haryana breed. There were no restriction on the entry and exit in the bullock market in Haryana. Talukdar and Singh (1995) studied the market structure of cattle in Meghalaya state and found that the market functionaries involved were Itinerant Trader cum Wholesaler (ITW), Distant/Local Wholesaler (DLW), Butcher cum Retailer (BCR) and Wholesaler cum Retailer (WCR). They found vertical integration in the cattle market. About 80 per cent of the sellers in the beef cattle market were ITWs and 95 per cent of the buyers were BCR. Brokers as catalyst were prominent in the cattle market. They found that out of total arrival of beef cattle, 80 per cent were local and regional origin whereas about 20 per cent were brought from other states. They reported that the coefficient of inequality i.e., Lorenz Coefficient was 0.79 in case of sellers and 0.82 in case of buyers and sellers concentration in the market was more evenly distributed whereas, buyers were oligopsony in nature. They found that the number of buyers had a positive relationship with the price of cattle whereas the number of sellers and price indicated an inverse relationship. There was no market intelligence service in the cattle market and price was set by bargaining through open disposal. Pandey et al. (1996) studied the structure of cattle fairs in Haryana and revealed that there were four cattle fair circles viz., Karnal, Hisar, Rohtak and Rewari wherein Deputy Commissioner was the administrative head. The cattle fair officers co-ordinated the programme at these circles while the Joint Secretary to the Government of Haryana, Development and Panchayat Department coordinated the programme at the state level. They reported that the animals transacted were broadly differentiated into milch, drought and breeds of origin. The milch cows were mainly of Haryana breed, non-descript and cross-bred. Similarly, the milch buffaloes were of Murrah breed and nondescript. Heifers of cow and buffalo belonging to above categories were also marketed and priced on the basis of their age. Camels and Haryana bullocks were also transacted. They observed that the prices were set by bargaining 10 Review of Literature

30 through open disposal. They didn t find any market intelligence service but found horizontal integration in those cattle fairs. Varghese and Sharma (1996), while studying the existing livestock marketing system in Rajasthan reported that the cattle fairs were of two types viz., state level cattle fairs limited to 10 in number and local level cattle fairs such as municipality, panchayat samiti, and gram panchayat which together accounted for 250 in number. The state level cattle fairs were organised by the Department of animal Husbandry and District Animal Husbandry Officer was designated as Mela Officer who looked after all the arrangements. The local level fairs rested with the local authorities. Further they revealed that the cattle constituted the large chunk of animals sharing per cent of the total animals arrived and per cent of the total animals sold in the state level cattle fairs. The other important animals species sold through cattle fairs were camel and buffalo which accounted for and 7.70 per cent respectively of the total arrivals. The buyers and sellers generally found to finalise the deal on mutual bargaining basis and once the deal was finalised, the dealers were to be entered on a white slip obtainable from mela agents. Singh et al. (1996) while studying the role of cattle fair in livestock marketing in Haryana found that Hisar circle cattle fair comprised of Hisar, Sirsa and Bhiwani districts which organised 33 to 44 cattle fairs annually and exchanged about 32 to 40 thousands animals (mainly drought animals such as bullock, camels and male young stock of cow) during to Fluctuating trends were observed in respect of number of animals bought and sold, total turnover and revenue received by the government. Grover et al. (1997), while studying the cattle fairs of Haryana observed that the fairs were generally controlled by the state government since The whole state has been divided into 4 cattle fair circles namely, Rohtak, Hisar, Rewari and Karnal where each circle has been put under the supervision of cattle fair officer. Producer and wholesale dealer were the marketing agencies involved in those cattle fairs who were again subdivided into professional producers/breeders, cultivator producer and nomadic / 11 Review of Literature

31 wanderer dealer, slaughter stock dealer respectively. Brokers, mela chudharies, registration certificate writers, change man, water man, chowkidars, sweepers etc. were the market functionaries involved in the cattle fairs. Gill et al. (1998) studied the comparative efficiency of buffalo marketing systems in organised and unorganised sectors of Punjab. They found that unorganised sector was more efficient than the organised sector as price spread were higher in organised sector than unorganised sector. However, there were many demerits in the unorganised buffalo marketing sector. Many a time the ultimate buyer, village agents or local traders were found to offer higher prices, but did not make full cash payment on the spot and delayed payment to the producer-seller. Because of malpractices in the unorganised sector, about 82 percent of the producer-sellers were found to sell their buffaloes in the organised markets. Sharma and Singh (1998) while studying the organisational and operational structures of the regulated cattle markets of Rajasthan found that the cattle fairs could be classified into two categories namely, state cattle fairs and local panchayat cattle fairs. They observed that all the 12 state cattle fairs were regulated and organised by Government of Rajasthan. The District collector was the chairman of mela committee and looked after all the arrangements made by various state departments and coordinated their activities. Arrangement of cattle fairs was managed by the Director of Animal Husbandry Department of Rajasthan. They observed that price was fixed by direct negotiation between sellers and buyers as no broker was involved in the marketing of livestock. The livestock transacted in those cattle fairs were differentiated as milch, drought, species and breeds of origin. They further segmented the livestock market according to the origin of buffalo local cattle breed as well as crossbred cattle. Market arrivals were mainly dominated by cattle, male buffalo and camel. Rao et al. (2001) studied the dairy animal markets in six districts i.e., Srikakulam, Vizianagaram, Visakhapatnam, East Godavari, West Godavari and Krishna of Andhra Pradesh. They found that majority of the cattle markets 12 Review of Literature

32 were controlled by regulating bodies. Cattle fairs were observed to be held weekly or bi-weekly. The farmers were the major assembling agents. The number of animals arrived and sale were depended on the popularity of the market and the percentage sale was found slightly higher in unregulated markets. In all the markets, buffaloes were the major dairy animal sold. Among the various categories of animal marketed, milch cattle constituted the major group and dry animals the least. The animals were sold mainly either by mutual agreement or through brokers. Among the two agencies, brokers were found to play key role. Pandit and Dhaka (2004) studied the structure of livestock markets in central alluvial plains of West Bengal and found that all the livestock markets i.e., Birohi, Mayapur and Pandua were largely controlled by private sector having no organised machinery to control the trade except Birnagar market which was owned by Birnagar Municipality and leased out to a private agency on annual basis. They found that owners recruit managers, supervisors, slip writers, sweepers etc. on daily wage basis. Price was fixed by mutual negotiation between sellers and buyers or through brokers. Majority of the market arrivals consisted of cows, bullocks and goats. The breeds found in the market were local non-descript, Jersey, and crossbred for cows; local nondescript, Haryana and Bihar breed for bullocks and Black Bengal and Jamunapari for goats. Majority of the buyers and sellers were found to have sold and purchased one to three animals. There was no entry barrier in the market and there were irregularities in the market fee structure. Burark and Jogi (2007) studied the existing organisation and structure of animal fairs and animal exchange markets developed under Agricultural Development Project in Rajasthan. They found that there were around 260 animal fairs held in the state; of these 10 were state level fairs. Most of the markets were found to operate only once in a year. Duration of selected market fairs ranged from one week to one month. The organizers of the fair used to provide the necessary facilities at the fair site and collect fee such as entry fee and rawanna. The buyers from outside the state had to pay sales tax. 13 Review of Literature

33 Jain and Khan (2007) studied the structure and working of cattle markets and fairs in Chhattisgarh and found that the marketing system of cattle in Chhattisgarh is very poor. Cattle markets and fairs were mostly organised nearby Raipur, Durg, Bilaspur, Jagdalpur, Janjgir and Ambikapur districts during particular season on some notified days. Cattle were brought for sale from distant locations of Madhya Pradesh, Haryana, Maharashtra, Andhra Pradesh, Uttar Pradesh, Orissa and Bihar. Middlemen shared big chunk of the sale price of seller in this system. In Tulsi-Baradera and Kharora cattle markets a commission of 2 and 1.5 percent, respectively were charged from the seller. Shukla and Hussain (2007) studied the live animal marketing pattern in the six cattle fairs, three each from Moradabad and Aligarh district of Western Uttar Pradesh. In Moradabad cattle fairs, the aggregate percent of transaction of total arrival was 26.23, and per cent of cows, buffaloes and bullocks, respectively while in Aligarh fairs 25, 26, 21, 43 and 43 per cent of cows, buffaloes, bullocks, sheep and goats, respectively. The study showed that the charge paid by the buyers was Rs. 40 per animal and Rs. 10 per small ruminant. The system of marketing through cattle fairs was seasonal. Singh and Verma (2007) studied the structure of livestock markets in Bundelkhand region of Uttar Pradesh and found that the livestock markets were largely controlled by the private sector. The farmer seller was found to have little knowledge about the market arrivals, prevalent prices. Transaction of milch animal and small ruminants were negligible. Majority of the sellers were from local areas whereas the buyers were mostly from other states in most of the markets. Based on the above studies relating to organisational and functional structure of livestock markets/fairs in India, it can be concluded that unorganised livestock marketing system is predominant over organised livesock marketing system in India. Organised marketing systems are found only in some states like Punjab, Haryana and Rajasthan and few more states. Organised markets/fairs are well structured and controlled by the government department/municipality/nagar panchayat whereas unorganised markets do 14 Review of Literature

34 not have proper structure and operating mechanism. In the organised markets, necessary facilities at the market/fair site are provided by the authorities for nominal charges like entry fee, sales tax and Rawanna while in unorganised markets necessary facilities are rarely found. Further, being unstructured and privately controlled, unorganised markets are more exploitative in nature as compared to organised markets. There is no barrier on the entry and exit in the organised markets. In unorganised markets even though there is no entry barrier, yet there were irregularities in the market fee structure where sellers and buyers need to pay huge market fee per animal. 2.2 MARKETING CHANNEL, MARKETING COST, MARKET MARGIN, PRICE SPREAD AND MARKETING EFFICIENCY While studying the marketing of a commodity through a particular marketing channel, marketing cost, market margin and price spread are important things to be studied as these reflect many facets of marketing and price structure as well as the efficiency of that channel. Marketing costs and margins influence the return to the farmer/seller on the one hand and cost to the consumer/buyer on the other. The knowledge of price spread helps in improving the operational efficiency of marketing while marketing efficiency is essentially an indicator of the degree of market performance. The absolute values of these indicators vary from channel to channel and are influenced by the route, the type, number and combinations of functionaries involved in moving the animal from producer/seller to buyer. The available literature related to the marketing cost, market margin, price spread and marketing efficiency has been discussed in the following sections. Makhijani (1961) found that the itinerant dealers played an important role in assembling and distribution of dairy cattle. The brokers were the only functionaries operated at almost every stage of cattle marketing. Further, he reported that there were three important units of sale namely, per head, per pair and per group and out of these the most widely adopted unit of sale was per head. The prices were settled by the private treaty or negotiations and under cover method, but most of the sales were conducted by private treaty method. 15 Review of Literature

35 Rathod et al. (1978) studied the bullock marketing costs in relation to the price paid by the buyers and stated that the net price received by the sellers revealed that differences between the two prices represented the marketing costs incurred by the sellers, and that in terms of percentage to the price paid by the buyers, these costs were worked out to be 4.01 per cent. The difference between average gross price paid by the buyer and the net price received by the seller constituted the marketing cost incurred by the buyer which ultimately accounted for 3.12 per cent. They found that the total transportation cost incurred by the seller and buyer together constituted 7.13 per cent to the gross price paid by the buyer. The breakup of cost components revealed that the brokerage formed per cent, own expenses per cent, transportation cost per cent and the cost of preparing the animal was 1.99 per cent of total marketing cost. Patil et al. (1979) conducted a study in Dhule market of Maharashtra and found that the total average cost of marketing was Rs and Rs per cow and buffalo respectively. In total cost of marketing, transportation cost was the major component which accounted for and per cent for cow and buffalo respectively. Expenditure on feed was the next major component of total marketing cost. It was found that the owner s share in consumer s rupee was about 67 per cent in cow and 73 per cent in buffalo. Aiyasamy et al. (1980) conducted a study on marketing of cattle in Coimbatore district of Tamil Nadu state and observed that the charges on brokerage alone accounted for 59 per cent of total marketing cost. They also estimated the range of price spread as to per cent in different channels of cattle marketing. The price spread was observed to be higher among the animals where more number of intermediaries was involved. The producer s share in consumer s rupee was highest in Farmer-Farmer channel with per cent of local/nd breeds and per cent for crossbreds. They further reported that in case of wholesale merchants, the trade margin was higher with 30 per cent of the consumer s rupee for calves and per cent for dry cows. 16 Review of Literature

36 Singh and Patel (1982) conducted a study in Haryana on buffalo marketing and observed that the most common channel of marketing was Producer-Consumer. While studying the marketing cost and margin in that channel, they found that buffalo seller spent maximum amount on the feeding of buffalo prior to sale which accounted for about 78 per cent of total marketing cost. The next major item of cost was the brokerage charges. On the other hand the major item of cost for buyer was the transportation cost which accounted for about 50 per cent of the total marketing cost. The registration charges constituted about 22 per cent of marketing cost. They found that the producer s share in consumer rupee was about 80 per cent. Singh (1988), while studying the buffalo marketing in Haryana observed that the transportation cost from producer to final buyer constituted about 11.5 per cent of consumer s price, of which about 7 per cent was incurred by buyer. He found that market charges constituted about 5.5 per cent of the consumer s rupee. In case of buffalo exported from Haryana, the producer s share was only 50 per cent, whereas in other cases it was about 80 per cent of the price paid by final buyer. The trader s margin was estimated to be about 35 per cent. Kareemulla (1990) studied the performance of cattle markets in Chittor district of Andhra Pradesh and observed that the contact between farmers with or without brokers form the most prevalent marketing channel for cattle. The marketing channel that predominated for beef cattle was Farmer-Village trader-wholesale trader-butcher-consumer. He concluded that net share of producer in the consumer s rupee was around 90 per cent for drought, milch and dual purpose cattle where the intermediaries were less or absent. He observed that the brokerage was the sole item contributing to the price spread at village level whereas the producer s share was as low as 40 per cent in case of channel VI for beef cattle, with more number of intermediaries. The average distance covered by the sellers in the study area varied from 4 km to 22 km in channel I and 9 km to 31 km in channel II. Arora and Pandey (1992) studied the marketing cost and margin in cattle trade in the most common channels of different markets in Haryana. 17 Review of Literature

37 They worked out the average marketing cost incurred by the sellers and buyers for different markets separately. They found that before selling the bullocks, the seller had to incur the maximum expenses on feeding which was about 74, 78 and 72 per cent in small, medium and large markets respectively. It was further observed that in case of buyers, transportation was the major cost item which was higher in large markets as compared to small and medium markets. As far as market margin was concerned, they found that the share of producer/breeder in consumer s rupee was only 68 per cent in the large market as compared to 73 per cent in small markets. Kumar (1992) conducted a study on economics of goat rearing for milk and meat production in the tribal areas of Ranchi district of Bihar and observed that there were mainly two channels namely, Producer-Consumer and Producer-Trader-Consumer. He observed that around 95 per cent of marketing of goat is accomplished through the Producer-Consumer channel. Further, he observed that labour cost was the major item in goat marketing both for the sellers and buyers. Its share was per cent of the total marketing cost incurred by sellers in different markets, whereas it was around 30 to 60 per cent by buyers. Among other major items of marketing costs, transportation charges, market fees and expenditure on feeding were significant. They observed that the average total marketing cost incurred per goat was Rs. 25 by sellers and Rs. 36 by buyers. The share of producer in consumer s rupee was found to be the highest in Jaltanda market (90.44%) and the lowest in Sons market (86.13%). Mondal and Pandey (1993a) conducted a study on marketing of milch buffaloes in Haryana state and observed that the buffalo sellers had to incur the maximum expenditure on feed and labour before the sale of buffaloes. For buyers, the major cost item pertained to market charges. In general, small markets were relatively more efficient as compared to other markets. They found that producer-consumer channel was the most efficient channel in buffalo trade amongst different categories of markets. The net share of producer (rearer/breeder) in the consumer s (final buyers) price of buffalo pertained about 88 per cent. Of the total marketing cost, being 12 per cent of 18 Review of Literature

38 final buyer s price, the producer/seller had to incur about 5 per cent and remaining by the consumer (buyer). Kareeemulla and Srinivasan (1994) studied the cattle marketing in Chittor district of Andhra Pradesh and identified eight marketing channels i.e., I) Farmer-Farmer, II) Farmer- Village trader-farmer, III) Farmer- Village trader- Wholesale trader- Farmer, IV) Farmer- Wholesale trader- Farmer, V) Farmer- Wholesale trader- Village trader- Farmer, VI) Farmer- Village trader- Wholesale trader- Butcher- Consumer, VII) Farmer- Wholesale trader- Butcher- Consumer and VIII) Farmer- Butcher- Consumer. They found that about 32 per cent of the milch cattle were marketed through channel I, followed by 31 per cent through channel II, 18 per cent through channel V and 14 per cent through channel III. In case of drought cattle, 62 per cent were marketed through channel I followed by 27 per cent through channel II and 6 per cent through channel III. It was also found that the undercover method of pricing ruled the state. Dixit and Shukla (1995) examined the efficiency of different marketing channels in the marketing of goats in Etawah district of Uttar Pradesh. As many as 10 marketing channels were identified in relation to the transaction of goat in the study area. The Farmer-Itinerant trader-wholesale trader was found to be the most efficient channel followed by Farmer - Itinerant trader - Farmer, and Farmer-cum-Goat keeper Wholesale trader. The producer s share in consumer s rupee ranged from about 52 to 99 per cent in different markets. The marketing cost and market margins per goat were found to be the highest in the Ekdil market which was the smallest of the selected markets. In general, Jaswantnagar was the most efficient market and Ekdil the least efficient one. Further, these markets were found to be spatially integrated. Talukdar and Singh (1995) examined the pattern and efficiency of beef cattle marketing in Meghalaya state and observed that the total marketing cost was Rs. 300 in first channel (Cattle rearer - Butcher-cum-Meat retailer Consumer) and Rs. 312 in second channel (Cattle rearer Itinerant tradercum-wholesaler - Butcher-cum-Meat retailer Consumer) per animal with the 19 Review of Literature

39 average carcass weight of 75 kg., while the other channels were found to be expensive. In the first channel price spread was the lowest which was per cent of the consumer s rupee. Producer s share in consumer s rupee was per cent in channel I and per cent in channel II, whereas the marketing efficiency was found to be the highest in channel I (7.41%). Autkar et al. (1996) studied the buffalo marketing in Akola district of Maharashtra and observed that cost of buffalo marketing incurred by producer per buffalo was Rs which constituted per cent share in consumer rupee. The major expenses comprised of transport charges which was worked out to be Rs per buffalo. The expenses incurred by the wholesaler were worked out to be Rs per buffalo which shared per cent in consumer rupee. The wholesaler profit margin was Rs per buffalo which shared per cent in consumer s rupee. Gauraha and Jain (1996) studied the economics of livestock marketing in rural areas of Madhya Pradesh and found that there were broadly two major channel i.e., I) Farmer Farmer and II) Distant Farmer Village Merchant Farmer on drought animals marketing. About 64 per cent of total animals were marketed through channel II. The major marketing cost of channel I and II were transportation, labour charges and market fees. Further, the farmer s share in consumer s rupee was the highest in Farmer-Farmer channel (96.55%) and lowest in Distant Farmer Village Merchant Farmer channel (74.02%). The net margin of village merchant was about 18 per cent in the other channel. Jadav et al. (1996) studied the marketing of buffalo and crossbred cows in Dhule market of Maharashtra and observed that the average marketing cost of Holstein Friesian, Jersey and local cow was Rs , Rs , and Rs respectively. In the total marketing cost, transportation cost was about 30 to 47 per cent. The net profit per cow obtained by the traders was Rs. 155 to Rs In case of buffaloes, the marketing cost was estimated to be Rs , Rs and Rs for Jaffarbadi, Mehsana and local buffalo respectively. In case of buffalo marketing also, the major share of the total marketing cost was occupied by 20 Review of Literature

40 transportation charge which was found to vary from 21 to 59 per cent for different breeds of buffaloes. The net profit obtained by the traders in buffalo marketing was found to vary between Rs to Rs per buffalo. Krishnaiah (1996) studied the livestock marketing around Hyderabad of Andhra Pradesh and observed that the price spread was maximum in case of slaughter animal with per cent of consumer s rupee followed by milch cattle with per cent and draft cattle with per cent. Mishra et al. (1996) studied the costs and margins in the marketing of livestock in Jabalpur district of Madhya Pradesh and observed that the marketing margins were directly associated with the length of marketing channel or involvement of number of intermediaries. It was observed that intermediaries earned maximum profit i.e., more than 50 per cent of the total marketing margins in case of buffaloes followed by bullocks and cows. The producer s share in consumer s rupee was the highest in Producer-Consumer channel. Further, it was found that producer s share was the maximum in case of buffaloes and bullocks i.e., about 85 to 90 per cent of consumer s rupee. Patel (1996) observed that the major constituents of marketing cost of sellers in buffalo trading in Haryana state were feeding expenses followed by transportation cost, while for buyers these were market charges followed by transportation cost. Producer-Consumer channel was found to be the most efficient channel as compared to Producer-Broker-Consumer channel. They also observed the fact that small markets were relatively more efficient than the larger ones. Rasane et al. (1996) while studying the marketing of buffaloes and crossbred cows in Dhule market of Maharashtra calculated the average cost of marketing for cows and Jaffarbadi buffaloes. They observed that the average marketing cost per animal was Rs , Rs and Rs for Holstein Friesian, Jersey cows and Jaffarbadi buffaloes respectively. Other major items of cost were expenditure on feeds and fodder, trader s own expenditure for cows and amount paid to dalals, expenditure on feeds and fodder and trader s own expenditure for buffaloes. 21 Review of Literature

41 Rahane et al. (1996) studied the marketing of slaughter animals in Deonar market of Mumbai and found that the marketing of slaughter animals for export were routed through dealers to exporters especially in the case of she-buffaloes and sheep. However, the beef and meat reached to the local consumers via dealers-wholesalers-retailers. Per animal marketing cost incurred by dealers of slaughter animals had the lions share in assemble market for all categories of slaughter animals. Further, the transport cost was found to be the major item of expenditure. Singh and Ranganathan (1996), while studying the marketing practices of livestock meat in Jabalpur district of Madhya Pradesh observed that the price spread of animal varied greatly according to weight of animal as well as marketing channel involved. They observed three marketing channels for selected livestock markets. These were a) Livestock farmer/producer- Retailer-Mandi trader-consumer; b) Livestock farmer/producer- Wholesaler/Village collector- Mandi trader-consumer; c) Livestock farmer/producer-wholesaler/village collector- Retailer-Mandi trader- Consumer. Majority of the respondents in the study area were observed to use the third channel for livestock meat marketing followed by channel second and first. Producer s share in consumer s rupee was the highest for goat meat followed by bullock and buffalo meat. Singh and Singh (1996) examined the marketing practices of livestock in Jabalpur district of Madhya Pradesh and observed that price spread of livestock varied according to age, health, type of breed and production of milk etc. Marketing cost and margins were found to be maximum for bullock and crossbred cow respectively, while minimum for local breed of cow. Sharma et al. (1997) while studying the marketing of milch animals in regulated cattle fairs in Punjab found that the share of producer in consumer s rupee was maximum in channel I (Producer-Consumer) followed by channel II (Producer-Broker-Consumer), channel V (Producer-Broker-National trader), channel III(Producer-Local trader-broker-consumer) and channel IV(Producer-Local trader-broker-national trader) for milch buffalo. A similar pattern was found in case of producer s share in consumer s rupee for local 22 Review of Literature

42 cow and crossbred cow. The total price spread in marketing of milch buffaloes ranged from Rs in channel I to Rs in channel IV, while it ranged from Rs to Rs for local cows and from Rs to Rs for crossbred cows. They concluded that channel I emerged as the most efficient channel for all types of milch animals. Khan and Rao (1997), while studying the marketing of milch buffaloes in Karnataka estimated the total cost of transaction. They estimated the overall average marketing cost of the seller as Rs and Rs for local/nd and upgraded buffalo respectively. It was observed that of all the items, the highest was the cost of preparation which was found to be Rs (59.40%) for local/nd buffalo and Rs (58.42%) for upgraded buffalo followed by brokerage and transportation cost. While analyzing the buyer s cost structure, they found that the overall cost incurred by the buyer for the purchase of local/nd buffalo was Rs and for upgraded buffalo, it was found to be Rs The major items of expenditure were brokerage and transportation cost, which accounted for Rs (28%) and Rs (27.50%) for local buffalo, whereas the major expenditure incurred by the buyer of upgraded buffalo was the personal expenditure of Rs (28.37%), insurance premium of Rs (27.12%) and transportation cost of Rs (17.92%). The total transaction cost incurred by the buyers and sellers was observed to be Rs and Rs for local/nd and upgraded buffaloes respectively. In case of local/nd buffaloes, seller s and buyer s share in the total transaction cost was and per cent respectively and in case of upgraded buffaloes, these were and per cent respectively. Khan (1998) studied the economics of draft cattle marketing in Karnataka and observed that the overall transaction cost incurred by the respondents of the local breeds was less as compared to that of improved breeds of bullocks. The total cost incurred by the sellers was observed to be Rs for local breeds and Rs for improved breeds. Similarly, per unit total cost incurred by the buyers was Rs and Rs for local and improved breed of bullocks respectively. The per unit total transaction 23 Review of Literature

43 cost was worked out to be Rs and Rs for local and improved breeds respectively. Out of the total cost incurred by the sellers, the cost of preparation was the highest, accounting for per cent for local breed and per cent for improved breed. In case of buyers, the cost of brokerage formed the major item of expenditure to the tune of per cent per animal of local breed and per cent per bullock of improved breed. Khan and Rao (1998) studied the slaughter cattle marketing in Karnataka and estimated the cost incurred by sellers and buyers. They found that the average total cost incurred by the seller was Rs for local/nd and Rs for upgraded buffaloes. The major cost component was the cost of preparation which accounted for and per cent for local/nd and upgraded buffaloes respectively. They also calculated the overall cost incurred by the buyer as Rs and Rs for local/nd and upgraded buffaloes respectively. Further, they observed that the transportation cost formed the major cost component which accounted for and per cent for local/nd and upgraded buffaloes respectively. Sharma and Singh (1998) worked out the marketing cost and price spread for different types of animals in cattle markets of Rajasthan. The cost of marketing of bullock, cow calf and male buffalo was found to be Rs. 607, Rs. 568 and Rs. 524 respectively. They observed that among the different components of marketing cost, transportation cost was the highest for bullock (35.42%) and cow calf (27.73%), while for male buffalo, labour cost was the highest accounting for per cent of the total cost of transaction. Further, they found that the net producer s share in buyer s rupee was per cent for bullocks, per cent for male buffalo and per cent for cow calf. Dhaka et al. (1999) studied the marketing margin and price spread of buffalo marketing in Punjab, Himachal Pradesh and Western Uttar Pradesh and revealed that producer s share in buyer s rupee was the highest (86.86%) in Western Uttar Pradesh followed by Punjab (85.05%) and Himachal Pradesh (81.82%). Further, they found that the cost incurred by both local traders and buyers in terms of percentage was higher in Himachal Pradesh followed by Punjab and Western Uttar Pradesh. They found that the 24 Review of Literature

44 marketing cost was the lowest (Rs ) in Punjab followed by Western Uttar Pradesh (Rs ) and Himachal Pradesh (Rs ). Rajarajan (2000), while studying the cattle marketing in Coimbatore district of Tamil Nadu, estimated the marketing cost and price spread separately for three different channels. The channels identified were: I) Farmer-Village trader-broker-buyer; II) Farmer-Broker-Buyer and III) Farmer- Buyer. It was observed that the channel I was the most commonly adopted and accounted for 55 per cent of the total transactions. The marketing cost was the highest for channel I and the lowest in channel III. The marketing cost was found to be Rs per crossbred cow and Rs per local/nd cow. Sellers accounted for about 52 and 53 per cent of the total transaction cost for crossbred and local/nd cows respectively, whereas in case of buyers, the corresponding figures were 48 and 47 per cent for crossbred and local/nd cows respectively. In general, cost of marketing for crossbred cows was higher than that of local/nd cows in all the three channels. Among the various items of cost, transportation charges and cost of preparation were the major components in seller s cost structure, while transportation and brokerage charges were the major items in buyer s cost structure in all the three channels. Further, the study revealed that among the three channels, the producer received the maximum share in consumer s rupee in channel III (93.58% for crossbred and 92.04% for ND cows). The price spread was the highest in channel I due to the involvement of more number of intermediaries. The marketing efficiency was the highest (12.20%) in channel III and the lowest (3.69%) in channel I. Singh and Singh (2001) studied the Livestock Marketing in Eastern Uttar Pradesh. They found that cattle fairs were the main transaction places. The average marketing cost per animal for Murrah buffalo, Haryana cow, crossbred cow and horse in dewa fair were Rs. 1431, Rs. 1521, Rs and Rs in channel I (Livestock breeder-buyer/local trader) and Rs. 3314, Rs. 3563, Rs and Rs in channel II (Local trader-outside trader- Livestock breeder), respectively. 25 Review of Literature

45 Bhatia et al. (2004) studied the marketing economy of goat and its milk in Haryana. They found that for live goat sale, channel IV (Farmer-Village middlemen-local trader-wholesaler) was the most popular channel followed by channel III (Farmer-Village middlemen- Wholesaler). Moreover small farmers had highest sales through channel I (Farmer-Farmer) followed by channel IV(Farmer-Village middlemen-local trader-wholesaler); but the medium farmers had the highest sales through channel IV(Farmer-Village middlemen-local trader-wholesaler) and large farmers through channel III(Farmer-Village middlemen- Wholesaler). Both commission and transportation charges together constituted the lion s share into the marketing costs incurred by different categories of farmers followed by the miscellaneous charges. Further, it was found that for live goat, the share of farmers in consumer s rupee was the lowest in channel IV and the highest in channel I. Pandit and Dhaka (2005) studied price spread of bullock marketing in Central Alluvial Plains of West Bengal and identified seven marketing channels for bullock marketing i.e., I) Farmer-Farmer, II) Farmer-Broker- Farmer, III) Farmer-Local Trader-Farmer, IV) Farmer-Local Trader-Broker- Farmer, V) Farmer-Outside Trader-Farmer, VI) Farmer-Outside Trader- Broker-Farmer and VII) Farmer-Outside Trader-Local Trader-Farmer. It was found that price spread was lower in the channels where small number of market players were involved and consequently channel I turned out to be the most efficient. The study also showed that animal preparation, transportation and labour were the major cost items for sellers whereas, the buyers spent relatively more on transportation, labour, market fees and levy. Brokerage was also a major item of cost both for seller and buyer. From the above studies, it can be concluded that there are different channels for the marketing of animals In India. The types of channels vary from region to region as well as animal to animal. Animals are not only transacted through two party channel i.e., Farmer-Farmer/Producer- Consumer but also through other different forms of channels involving either broker or trader or both between producer and consumer and thus enlarging 26 Review of Literature

46 the length of channels. However, one common thing which is observed is that Farmer-Farmer/ Producer-Consumer channel is predominant across India for animal transaction. Most of the buyers liked to purchase animals directly from the producer/breeder as the effective price is comparatively less as compared to other channels involving more than two parties. When broker and trader are involved in between producer farmer and consumer buyer, they take away a large share of value paid by ultimate buyer. Therefore, almost all studies concluded that Farmer-Farmer/Producer-Consumer channel is the most efficient channel of animal marketing and producer s share in consumer s rupee is the highest in this channel as compared to other long channels. As far as price spread is concerned, it varied from channel to channel as well as from animal to animal and therefore, generalisation cannot be made with its regard. In some areas, transportation cost occupied predominant share in total marketing cost of sellers and buyers while in other places the feeding of animal at market or brokerage or market fee accounted for major share. So, region specific research is the need to explore various channels and analyse the marketing cost, price spread, marketing efficiency etc. of these channels in specific animal markets/fairs. 2.3 FACTORS INFLUENCING THE MARKET PRICE OF BOVINE The market price of an animal depends on both the quantitative and qualitative characters besides the bargaining power of the seller and buyer. The quantitative characters like level of milk production, age, order of lactation, stage of lactation, stage of pregnancy in the case of milch stock and age in the case of male ones; and the qualitative characters such as condition of health, colour and other confirmation characteristics are the major factors which influence the pricing of an animal. The factors of qualitative nature are purely subjective and cannot be measured. A number of researchers have examined the contribution of various factors towards determining the market price of animals from different parts of the country. The relevant literature regarding the factors responsible for determining the market price of animals are reviewed below. 27 Review of Literature

47 Raut and Singh (1974) studied the factors influencing the prices of different categories of bovine in Tamil Nadu, Andhra Pradesh, Maharashtra and Haryana. The study revealed that though the regression coefficients of age and order of lactation were not significant, these were found to be negative for buffaloes in milk. The regression coefficient for milk yield was highly significant for both buffaloes and cows in milk indicating that it was the single largest factor accounting for the variations in price. Moreover, dry pregnant buffaloes and cows attained the maximum price when they were 65 months and 60 months of age and 4 months and 6 months of pregnancy respectively. In case of bullock, the age was observed to be the significant factor and maximum price could be fetched when a bullock attained 45 months of age. Rathod et al. (1978) examined the net effect of age, colour, breeds, season and year on bullock price variations by fitting quadratic econometric model and empirically verified with the data obtained from local cattle market. It was observed that at the age of 5 th year, the bullock could fetch the maximum price in the market. Further, the study revealed that the white coloured bullocks fetched average price, while the red and black bullocks fetched prices below the average and the mixed coloured bullocks commanded highest prices. The local bullocks fetched average price, while Khillar bullocks were observed to have fetched a price premium. They also found that relatively higher prices were obtained when the bullocks were sold in the winter season and lower prices during the summer season. It was found that almost all the factors were statistically significant. Aiyasamy et al. (1980) studied the cattle marketing in Coimbatore district of Tamil Nadu and identified type of breed, milk yield, age, colour, number of calving, shape of horn, length of leg and tail, briskness of the animal and other characters like location and placement of Suli (whirls) as the factors which influence the prices of animals. It was observed that the cattle within the age group between 2 to 4 years fetched higher prices. In case of milch cattle, price varied with the order and stage of lactation. They also observed that bright coloured animals fetched good price. Besides these 28 Review of Literature

48 characters, bargaining capacity of the sellers and buyers was found to be another decisive factor for fixing the price of cattle. Arora and Pandey (1983) examined the seasonal variations in bullock prices in the cattle markets of Haryana. The bullock prices were observed to be the maximum in the month of August because the traders were found to be free to purchase the animals after they have finished their Kharif operations. The bullock prices were found to be increasing from October onwards, mainly because of the increased demand of these bullocks for Rabi operations. The study revealed that the price declined in the month of February to May owing to the lean periods of agricultural operations. The study also revealed that in the month of July, the price was found to be the lowest which was attributed to the market glut as the trader did not come to purchase the animals, as they were engaged with the Kharif operations. Arora and Pandey (1984), in an another study on the price variations in cattle markets of Haryana observed that the quantitative characters like, colour, season, breed, length of tail, year (good, bad or normal), need of the buyer and seller etc., were responsible for the premium or discounts in bullock prices. The quadratic regression model explained the significant relationship between age and price of bullocks and concluded that at the 6 th year of age, the bullocks fetched maximum price in the market. It was found that the Rajasthani breed and white coloured bullocks had a price premium over Haryana breed and mixed coloured bullocks. They also observed that short tailed bullocks had a price premium as compared to medium tailed bullocks, but long tailed bullocks had a price discount. Urgent need of the seller was found to have price premium over the normal need. Further, it was observed that the maximum prices of bullocks were obtained in the rainy season while both the winter and summer seasons were found to have price discount. Gangwar (1985) conducted a study based on the data collected for a period of two years viz., and from Haryana on factors responsible for variations in buffalo prices and observed that the price was influenced more by milk yield than the order of lactation. The prices were found to be high at the early stage of lactation and were not significantly 29 Review of Literature

49 different between middle and later stage of lactation. He also observed that at the later stage of lactation, pregnancy of animal was considered more important than the stages of lactation. Further, it was observed that the price of buffalo declined after the fourth lactation. It was observed that for dry buffaloes, prices were higher between 2 nd and 4 th lactation and later on the prices were observed to have declined sharply. Buffalo prices were found to have declined by Rs as order of lactation increased by one. Singh (1988), while studying buffalo marketing in Haryana analyzed various parameters of marketing. He observed that the prices of buffaloes were found to be the highest in the month of July and August as this was the calving season of these animals. On the other hand, price was observed to the lowest in the month of April as majority of buffaloes went dry or were in advanced stages of lactation resulting in to lower demand. It was found that milk yield had a significant and positive impact on the prices of buffaloes in the market. However, significant negative relationship was observed between price and order of lactation and stage of lactation. He observed that in case of dry and pregnant animals, age and stage of pregnancy had significant but negative and positive effect, respectively. About 80 per cent variation in the price could be attributed to these factors. Agarwal et al. (1989) conducted a study to suggest the most significant factors influencing the sale price of animals for fixing the price of dairy animals. The data on sale price of dairy animals sold through public auction during at NDRI farm, Karnal were used in the study and found that linear regression model was the best fit for further interpretation of the results. It was concluded that age at first calving or orders of running lactation along with milk yield on the previous day of disposal and lactation yield in the running lactation were found to have contributed significantly to the sale price of animals in milk. The animals which were in milk and non-pregnant, the milk yield on the previous day of disposal and animals which were dry and pregnant, the stage of pregnancy at disposal were found to be the most significant factors influencing the price. The variations explained by the 30 Review of Literature

50 regression model ranged from 29 per cent in Karan Fries to 59 per cent in Zebu cows for milk and pregnant animals. Mishra and Nayak (1991) conducted a study to analyze the factors influencing the prices of bullocks in Orissa and reported that the prices of bullock remained high in the summer followed by the rainy and winter season. Age was observed to have significant impact on price and found that price decreased after bullock attained the age of 3.5 years. It was further observed that animals having white coat colour and good temperament had price premium over non-white and vicious, dull temperament animals. Kareemulla and Srinivasan (1992) studied cattle attribute indexing and its linkages with the price. It was found from the study that bullocks fetched the highest prices at the age group between 4.5 to 7 years. The results of the regression analysis revealed that the price of milch cattle and buffaloes were significantly influenced by milk yield whereas in case of bullocks, by feature index. It was found that one additional litre of milk fetched a price increase of Rs and Rs. 266 for milch cow and buffalo, respectively. In case of bullock, one point increase in feature index would increase the bullock price by Rs Mondal and Pandey (1993b) studied the factors influencing the market price of lactating Murrah buffaloes in Haryana state and observed that there were a positive and significant relationship between market price and milk yield. Order of lactation also was found to have significant effect on price. The study further established the fact that a freshly calved lactating Murrah buffalo in 2 nd order of lactation and with above 10 litres of milk yield per day fetched the maximum price in the market. The quantitative factors namely, milk yield, order of lactation and stage of lactation together accounted for a share of about 57 per cent in the average market price of lactating Murrah buffaloes. Among the quantitative characters, general appearance had the highest score in the market price followed by breed, size of teats, temperament as well as attachment and placement of udder. These characters together accounted for a share of about 9 per cent in the market price of Murrah buffaloes. 31 Review of Literature

51 Pawar and Thrombre (1993) conducted a study on the factors affecting market prices of pregnant cows in Maharashtra and observed that pregnancy number, breed and their interaction effect were the significant factors. They suggested that farmer might sell their pregnant cows during 2 nd to 4 th pregnancy in order to get optimum market prices. They further observed that cattle rearers should better replace their local cows with crossbred cows for getting higher returns. Shanmugam and Balakrishnan (1994) studied the factors influencing the price prices of bullock and milch animas marketed in Tamil Nadu. They fitted a quadratic econometric model to determine the net effects of age breed and season on price variations of bullock and milch animal in the market. Their study revealed that Jersey and Sindhi crossbred cows fetched a price premium of Rs over local cows. It was observed that the milch animal commanded maximum value in 4 th lactation whereas, in case of bullocks, Kangeyam breed fetched a price premium of Rs over the local bullocks and at the age of 7 th year, it was found to have commanded the maximum price in the market. Mondal and Pandey (1995) studied the factors influencing the market price of dry pregnant Murrah buffaloes in Haryana using the cross sectional data for the year It was observed that both the quantitative variables included in the linear regression model namely, stage of pregnancy and age were statistically significant. It was observed that at the 9 th month of pregnancy stage and between the age of 5 th and 6 th years, a dry buffalo could command the highest price in the market. The study revealed that in every hundred rupees market price of dry pregnant buffalo the respective share of stage of pregnancy and age pertained to about Rs. 48 and Rs. 15 only. Further, Murrah breed, long sized tail, mixed tail colour, cool and calm temperament, normal sized teats, rear attachment and placement of udder had positive and significant impact on the price. Autkar et al. (1996), studied the buffalo marketing in Akola district. He observed that type of breed, order of lactation and milk yield per day were the preferential characters for determining the price of a buffalo in market. They 32 Review of Literature

52 found that animal prices were not displayed on the notice board. They concluded that animal markets in that area were unorganised and exploitative in nature. Patil and Kawadgave (1996) conducted a study for the empirical verification of quantitative and qualitative characters influencing the prices of lactating cows in Maharashtra state. He used both linear and Cob-Douglas models and observed that milk yield had positive and highly significant effect on market price of all three breeds of cows (Deoni, Red Kandhahari, and Crossbred). Further, order of lactation was found to have positive impact on the price of Deoni and Red Kandhahari with the exception in case of crossbred where it exerted negative and significant effect. Further, it was found that stage of lactation had positive but non-significant effect on the price of all the breeds. Singh et al. (1996) while studying the factors affecting the market price of lactating buffaloes in Haryana observed that the milk yield had the greatest contribution towards the market price of lactating buffaloes followed by stage of lactation and order of lactation. Among the quantitative characters, the poor general appearance accounted for the highest price discount. This was followed by non-descript breeds, broken udder, male calf-at-heal, erratic temperament and abnormal size of teats. It was concluded that a freshly calved buffalo of third lactation and yielding about 14 litres of milk per day had the ability to fetch the maximum price in market. Suryawanshi et al. (1996) identified the factors responsible for the variations in the prices of bullocks in the markets of Maharashtra as outward appearance, number of rings in the horns and number of lower front teeth. They observed that at 2 to 3 years of age bullock realized the lowest prices and then it increased with the advancement of age and remained constant between 8 to 10 years and then decreased. Khan and Rao (1998) analyzed the marketing of slaughter cattle in Karnataka and reported that the major factors considered by the buyers of beef cattle were body weight, status of health and age of the animals. There was no effect of age on the price of local breed. On the contrary, there was an 33 Review of Literature

53 appreciable effect of age on the price of young upgraded breeds of animal than the aged animals, because of tenderness of beef/meat. Moreover, crossbred cattle were found to have commanded the highest price in the market. Waghamare et al. (2000) studied the seasonal variations in arrival, disposal and prices of crossbreed cows in regulated markets of Western Maharashtra and observed that the market arrivals of crossbred cows were higher in winter, but the disposal and price were higher in summer. They found that the market arrival and price had a positive correlation. But, the prices and disposal was found to have moved in the opposite direction indicating positive relationship between price and demand for crossbred cows. The multiple correlation analysis of arrivals, disposal and prices revealed that the arrival and disposal of crossbred cows were determined by the non-price considerations. Rajarajan (2000) used multiple linear regression model for quantifying the factors influencing the prices of milch cattle in Tamil Nadu. Their study revealed that milk yield was the single largest factor which determined the market price of a milch cattle. The results revealed that price increased by Rs for an increase in one litre of milk yield. Order of lactation and presence of inauspicious marks had negative but significant impact. Further, good general appearance, udder with high rear attachment and well forward placement and crossbred influenced the price positively as well as significantly. It was further found that in every hundred rupees market price of milch cows, the share of milk yield, order of lactation and stage of lactation were about Rs , Rs and Rs respectively. It can be concluded from the above studies that there are different factors that influence the market price of animals. Some of these factors are quantitative in nature while others are qualitative. Further, factors influencing the prices of animals vary from animal to animal. From the earlier studies, it was found that bullock pricing in a market largely depend on age, general appearance, body capacity, temperament, colour, season, breed, inauspicious marks and training etc. For milch cattle and buffalo pricing, age, 34 Review of Literature

54 milk yield in running lactation, milk yield in the previous lactations, order of running lactation, number of lactation completed, stage of lactation, general appearance, mammary system, temperament, calf-at-heal, breed and inauspicious marks etc. are important. 2.4 REASONS FOR SALE AND PURCHASE AND CONSTRAINTS FACED BY DIFFERENT MARKETING FUNCTIONARIES The studies conducted in different parts of India so far have revealed that there have been several constraints in livestock marketing faced by different market functionaries. However, the nature and degree of marketing problems were found to vary from region to region and also from market to market in the same region due to differences in the resource endowment pattern and socio-economic conditions. The constraints identified in different markets located across different agro-climatic regions and socio-economic conditions by researchers have been discussed in the ensuing section. Jayaraman (1961) studied the structure of cattle markets in India and concluded that there was a need for effective regulation of these markets to overcome various inadequacies existed in the system. He observed various malpractices such as clever tricks and illegal means were adopted by buyers as well as intermediaries to compel the owners to sell their animals at lower prices. Further, he found the market charges very high and the markets lacked different amenities like water troughs, provision of shelter, light etc. both for human and animals brought for transaction. Makhijani (1961) conducted a study on the marketing system of dairy animals and found that a person willing to purchase a dozen or more dairy animals had often to spend a week or more in selecting the animals, recording their milk yield and finally coming to mutually settled prices for the animals. The marketing system he observed was quite unsatisfactory and needed improvement. He observed that there was a greater need for proper standardization of dairy animal marketing which would ultimately provide a boost to animal breeding. He suggested the organisation of cattle breeding societies in breeding areas to maintain breeding and production records of the member s herd. They could also bring the buyers in home to take the 35 Review of Literature

55 advantage of selecting the animals on the basis of actual performance records instead of selecting the animals merely on the basis of single day yield of milk. Minhas (1966) conducted a study on the malpractices and price variations in the cattle fairs of Punjab and observed that the cattle trade of Punjab was full of foul practices which varied with the size of the cattle markets. He found that the extent of malpractices depended on character and personality of the market authority. It was further found that some authorities encouraged intermediaries to indulge in corruption for their own interests. Sidhu and Johl (1966) studied the structure of cattle markets in Punjab state and indentified different marketing problems. It was found that the market charges in the cattle fairs were excessively high and varied from district to district. Organisation structure and control of the cattle fairs in the markets were heterogeneous in character and vested with the non-technical organisations which were involved in collecting the fees and paying less interest in the development of the trade in the markets. It was observed that the sellers were eventually left at the mercy of brokers and other marketing agencies involved. There were no incentives to the producers to produce better types of animals. The buyers were also found to be uncertain about a fair deal in the markets. They suggested that the cattle fairs were needed to be organised properly by bringing them under the control of a apex body at the state level for better coordination of the functions. Fisher (1969) studied the cattle markets and emphasized the need for regulated markets for effective control of the malpractices adopted by various marketing agencies. He estimated that only 10 to 15 per cent of the livestock entering in to the markets were sold because of excess of supply over demand. Patil et al. (1979) observed that the price negotiations were reached in an unauthorized manner. They observed that the undercover system prevailed in those markets where the buyers were kept completely under darkness and this needed to be eliminated. Due to restricting on the 36 Review of Literature

56 movement of animals between the states, the animals were brought to the markets in an illegal manner that leads to higher marketing costs and ultimately increases the cost of final buyers in the market. Therefore, the free movement of animals accross different states was suggested by them to lower the marketing cost. Aiyasamy et al. (1980) studied the marketing of cattle in Coimbatore district of Tamil Nadu and identified that different problems existed in the cattle markets of Tamil Nadu. The basic infrastructure in the market like cattle shed, watering yard, cleaning and boarding facilities were observed to be inadequate or even absent in some markets. They suggested that the panchayet union of that area should pay attention to make these facilities available at reasonable cost. It was further observed that the brokers frequently used different code words and the actual price at which the animals were transacted remain unknown to both buyers and sellers. They were not allowed to interact freely and some time the merchants did not allow the farmer buyer to take a close look at the animal in the market. They suggested a organised trade practice in the markets. Kareemulla and Srinivasan (1992) studied the cattle marketing in Chittor district of Andhra Pradesh and indentified the major marketing problems through opinion analysis. They observed that pricing procedure adopted in the market was unfair. The undercover method of pricing was still prevalent in the cattle trade of the district. The facilities in the markets were observed to be very poor. They suggested better regulation of the cattle markets. Mondal and Pandey (1993a) studied the cattle market of Haryana and observed that the market charges were higher in the state as compared to the neighboring states. They felt the need for quick and cheap mode of transportation for animals. Further, it was suggested that the regulation of cattle markets was essential for reducing the marketing costs on the one hand and livestock improvement on the other. 37 Review of Literature

57 Talukdar and Singh (1995) studied the pattern and efficiency of cattle marketing in Meghalaya. They observed that the transportation was the main problem in marketing of animals. It was observed that the high cost of transportation was responsible for the increase in the wholesale price of cattle in the state. Traders had to walk for days together to reach the animal market due to lack of proper transportation facilities. They suggested that meatprocessing plant should be established for stabilizing the retail prices further. Gauraha and Jain (1996) conducted a study on animal marketing in the rural areas of Madhya Pradesh and identified major problems faced by the farmers in animal marketing. Non availability of suitable place for livestock marketing, higher market fees and monopoly of village merchant were the major problems faced by the farmers. It was observed that the markets were unorganised, exploitative and imperfect. They suggested the need for better regulation as well as development of better infrastructure facilities in the markets for the benefits of the farmers. Autkar et al. (1996) studied the buffalo marketing in Akola district of Maharashtra. They observed that market information and market intelligence services were absent for buffalo marketing. Structure of the buffalo markets in the district was unorganised and the middlemen were involved in the exploitation of farmer buyer. Jadhav et al. (1996) studied the marketing of milch animals in Maharashtra and identified different marketing problems. They observed that inadequate market space and unhealthy atmosphere in the market place were the major problems in livestock marketing in the state. The faulty under cover method of marketing were adopted in pricing. Patel (1996) studied the buffalo trading in Haryana state and identified different marketing problems faced by different market functionaries. Their study pointed out that higher registration fees, higher sale tax, higher transportation cost, lack of boarding and lodging facilities, adoption of malpractices, under pricing by purchy (slip) writers, presence of unauthorized brokers, lack of security, lack of feeds, water and health care were major 38 Review of Literature

58 problems faced by different market functionaries. It was suggested that the government should provide cheap credit for buffalo trading, facilities for recording the buffalo trading data and make provision for better market regulation. Pandey et al. (1996) conducted a study on the cattle fairs of Haryana and observed that the market intelligence service in the fairs was absent. The sellers and buyers often hide the actual sale/purchase which affected the income of the government from the cattle fairs. Lack of ground space, inadequate infrastructure facilities and financial limitations for holding the fairs were also observed in the state. Mishra et al. (1996) while studying the livestock marketing in Jabalpur district of Madhya Pradesh identified different marketing problems as perceived by different market functionaries. They observed that the shed for animals, saray for sellers and buyers and drinking water availability for both the animals and traders were insufficient in the market. The market area was observed to be insufficient for accommodating the animals brought for sale and the whole area looked muddy and dirty especially during the rainy season. Rasana et al. (1996) studied the marketing of buffalo and cow in Maharashtra and identified different marketing problems faced by market functionaries. Their study pointed out that the water facility was inadequate and the available water was salty and deleterious in the market yard resulting in to ill-health and reduction in milk yield of animals. There was no provision of security in the market yard and there was complete absence of lodging and boarding facilities for the farmers and traders. They observed that the traders had the problems of recovery of dues in case of cash receipt issued by market committee to the purchaser. They suggested the strengthening of basic infrastructure facilities like drinking water lodging and boarding arrangements, cleanliness of market yard, security arrangement etc. They further suggested better regulation of the marketing trade for effective marketing of animals. 39 Review of Literature

59 Suryawanshi et al. (1996) while studying the marketing of draft animals in Maharashtra found that the farmers encountered the problems of deceiving by the brokers because of hatha system of sale. The study further revealed that there were inadequate infrastructural facilities, high market charges and no guarantee of the performance of animals. The most important problems faced by the traders were non-availability of loan from the financing institution, high transportation cost, high brokerage and additional expenses due to delay in sale. They suggested the elimination of unauthorized way of price negotiations, standardization of brokerage and market fees in order to reduce the marketing cost and increase the producer s share in consumer s rupee. Singh and Ranganathan (1996) studied the livestock meat marketing in Jabalpur district of Madhya Pradesh and identified different problems faced by different market functionaries. They found that major problems according to the intermediaries were related to transportation, storage, housing during sale, feed and fodder at the time of sale and non-availability of market information etc. They suggested the formation of co-operative societies, regulation of the livestock markets and developing the organisational facilities to overcome these problems. Grover et al. (1997) while studying the organisational structure and functioning of cattle markets in Haryana identified various problems faced by different market functionaries involved. Their study pointed out that the market charges and registration charges were high and there was presence of unauthorized brokers in the cattle fairs. The dealers were often unnecessarily harassed by police personal at check posts and were charged. There was lack of shelter for night stay, inadequate water facilities, and poor arrangements for human health care. Khan and Rao (1998) studied the slaughter cattle marketing in Karnataka state and observed that transportation was the major problem in that area. They suggested the availability of community transport vehicles for reducing the cost of selling. Further, they suggested that the slaughter cattle owners should be provided with better infrastructure facilities and guidance for getting competitive price. 40 Review of Literature

60 Khan and Sonad (1998) while studying the cattle marketing in Karnataka revealed that the majority of the farmer rearers were not satisfied with the pricing of their animals. The study revealed that the brokers often adopted the unfair practices. Further, the study revealed that the infrastructure facilities available in the markets were inadequate. Sharma and Singh (1998) while studying the cattle markets in Rajasthan observed that the nonavailability of market intelligence and market information were the major problems in cattle marketing. Proper regulation of cattle markets and widening of livestock marketing network were suggested by them. Further, they suggested the strengthening of market intelligence system for efficient marketing. Kumar and Singh (1999) while studying the goat marketing in Chhotanagpur plateau identified various malpractices. The study revealed that the registration charges were taken from both the buyers and sellers in the markets although the rules permitted the charges to be taken from the buyers only. Buyers did not get the sale receipts and most of the times no records were maintained for transaction. Wholesalers were observed to make late payments to the village traders and commission agents. It was found that the markets were controlled by the local, influential and private contractors and farmers could not get justice for any complaint. Rajarajan (2000) found different constraints in the marketing of milch animals in Coimbatore district of Tamil Nadu state. According to sellers, unremunerative prices were the most important problem. Other major problems faced by the sellers were found to be the absence of market regulation, lack of infrastructure facilities, high market charges, exploitation by middlemen, inadequate transportation facilities, and lack of market information in descending order. The most important problem faced by the buyers was the malpractices adopted by the sellers and traders. Other problems faced by them were high market charges, lack of hygiene and sanitation in the market, lack of basic amenities, lack of facilities for assessing the quality parameters and grading, overcrowding of animals in the market yard and lack of market information etc. He suggested market regulation, strengthening of market 41 Review of Literature

61 information service, arranging community transport service and standardization of brokerage for efficient marketing. Beohar et al. (2007) studied the livestock marketing problems in Madhya Pradesh and suggested policy reforms to overcome those problems. They selected three agro-climatic zones, namely, Malva plateau, Central Narmada Valley and Satpura Plateau in M.P. Three cattle markets, namely, Ujjain, Itarsi and Mohangaon were selected purposively from the respective districts on the basis of arrival and disposal of cattle. They found that nonavailability of credit, lack of funds, insurance facilities, marketing charges, involvement of intermediaries, non-cooperative role of local bodies and high animal prices were the major constraints reported by the buyers in all the three selected markets. The problem of unlicensed intermediaries, drinking water, feed/fodder and lack of cattle sheds were also found in the study area. From the above studies it can be concluded that there are several constraints faced by different market functionaries in India. However, the nature and degree of marketing constraints vary from region to region and also from market to market in the same region due to differences in the resource endowment pattern and socio-economic conditions. It was further observed that even the organised livestock markets are not free from problems such as lack of infrastructure, poor sanitation, absence of market intelligence, prevalent of malpractices and many others. Therefore, it is necessary to look at the problems of specific markets/fairs at one time and solve these problems with available resources in that area. As far as the reasons of selling and buying are concerned, these were more or less same in various parts of the country as the people engaged in livestock marketing have by and large similar socio-economic background. 42 Review of Literature

62 CHAPTER - 3 Profile of the Cattle Fairs in Rajasthan

63 0 3. PROFILE OF THE CATTLE FAIRS IN RAJASTHAN 3.1 BACKGROUND OF THE STATE LEVEL CATTLE FAIRS Livestock production is an integral part of farming and contributes substantially to nutritional security and poverty alleviation through increased household income. Animal husbandry in Rajasthan is closely interwoven with agriculture and plays an important complimentary role in the rural economy. The state is rich in cattle, buffalo, sheep, goat, camel and horse wealth. As per the 18 th livestock Census (2007), the state has million cattle, million Buffalo, million sheep, million goats and 0.21million pigs. Apart from these, the poultry population is 5.01 million. In spite of scientific and technological advancement in mechanised farming large number of agricultural operations continues to depend on bullocks for draught power and dung for organic manure and fuel, supporting the farming community especially having small and marginal land holdings. Since Rajasthan State is endowed with varied livestock wealth, the cattle fairs have immense importance in the social and cultural matrix of the state from time immemorial. Ten state level cattle fairs organised under the State level cattle Fair Act 1963 are held on the traditional dates (tithi) and months (mah) in accordance with the Hindu Calendar Year (Table 3.1). The heritage of Rajasthan and its cultural diversities is well projected in the various state level fairs that attract even many foreign tourists. The state level cattle fairs of Rajasthan are unique because these fairs deal with the transaction of large number of different kinds of livestock like cattle, buffalo, sheep, goat, camel, horse etc. The animal rearers earn approximately Rs Crores annually from these cattle fairs. The annual arrival and sale of the animal species and breeds traded in these livestock fairs are according to utility in the state livestock sector. Cows and buffaloes are economically explored for dairy purposes whereas the bullocks are preferred for draught purpose. Out of 10 cattle fairs, three fairs are held in the Nagaur district alone and two in 43 Profile of f the Cattle Fairs in Rajasthan

64 Jhalawar district and remaining one each in the districts of Karauli, Barmer, Hanumangarh, Bharatpur, and Ajmer (Figure3.1). Besides, these 10 state level cattle fairs approximately 250 cattle fairs-cum-livestock exchange markets are organized under the authority of local bodies like Municipality, Table 3.1: State level cattle fairs of Rajasthan Month of Name of the Cattle Fair District Hindi Tithi Organisation 1.Ramdev Cattle Fair, January - Magha Shukla 1 - Nagaur Nagaur February Magha Shukla Mahashivratri Cattle Magha Shukla 15 - Karauli February Fair, Karauli Phalgun Krishna 7 3. Mallinath Cattle Fair, Chaitra Krishan 11 - Barmer March - April Tilwada Chaitra Shukla Baldev Cattle Fair, Chaitra Shukla 1 - Nagaur March - April Merta City Chaitra Shukla 15 5.Gomtisagar Cattle Baisakh Shukla 13 - Jhalawar May Fair, Jhalrapattan Jyaistha Krishna 5 6.Veer Tejaji Cattle Fair, Sawan Shukla 15 - Nagaur August Parbatsar Bhadra krishna 15 7.Gogameri Cattle Fair Hanumangarh September Bhadra Shukla 15 August - Sawan Shukla 15-8.Jaswant Exhibition & September - Ashwin Shukla 5 - Bharatpur Cattle Fair October Ashwin Shukla 14 9.Puskar Cattle Fair, Kartik Shukla 8 - Ajmer November Puskar Mangsir Krishna 2 10.Chandrabhaga Cattle November- Kartik Shukla 11 - Jhalawar Fair, Jhalarapatan December Mangsir Krishna 5 Source: Department of Animal Husbandry, Government of Rajasthan. Nagar Parishad, Panchayat Samiti and Gram Panchayats. A brief description of these10 state level cattle fairs along with their socio-economic importance are given below: 3.2 BRIEF DESCRIPTION OF THE STATE LEVEL CATTLE FAIRS Ten state level cattle fairs are organised every year by the Department of Animal Husbandry, Government of Rajasthan in different parts of the state under the State Level Cattle Fair Act, These cattle fairs are held on the 44 Profile of f the Cattle Fairs in Rajasthan

65 Figure 3.1: Map of Rajasthan showing different districts

66 traditional dates (tithi) and month (mah) in accordance with the Hindu calendar year. Ramdev cattle fair is organised at Nagaur city in Nagaur district from Magha Shukla 1 to Magha Shukla 15. Cattle bullock, buffalo bull, camel, horse and sheep are brought for transaction in Ramdev cattle fair. In fact this cattle fair is famous for Nagori breed of cattle bullock which has great demand in India as an excellent draft animal capable of carrying heavy weight as well as agricultural operations. The origin of this breed is Nagaur district itself. Haryana bullock, Murrah bull, Marwari camel, Marwari and Chokla breed of sheep and Marwari horse are other attractions of this cattle fair. However, milch cattle and buffalo are not transacted in this fair. The economy of Nagaur district largely depends upon the available livestock resources. Farmers mainly from the desert area of the district, earn their livelihood from livestock resources because lack of rain water for crop cultivation. Different cultural programmes, animal competitions etc. are organised by the Department of Animal Husbandry to attract people, animal rearers, traders and foreign tourists. A large number of foreign tourists visit this fair every year. Maha shivratri cattle fair is organised by the Department of Animal Husbandry at Karauli city of Rajasthan from Magha Shukla 15 to Phalgun Krishna 7every year on the eve of Maha Sivratri. Cattle, buffalo, horse, camel, sheep and goat are transacted in this cattle fair. However, this cattle fair is mainly famous for Haryana bullock. Sellers and buyers from different districts of the state as well as other states come to this fair. During the fair, exhibitions are organised to disseminate modern technologies and increase the knowledge level of farmers. Mallinath cattle fair is organised by the Department of Animal Husbandry at the Tilwada city of Barmer district from Chaitra Krishan 11 to Chaitra Shukla 11since Animal rearers with Tharparkar and Kankrej breeds of cattle bullock and young stock, Malani breed of horse and good camel breeds come to this fair from faraway places like Gujarat, Punjab and Uttar Pradesh. Special temporary station is established by the Northern Railway every year for the convenience of transportation of animals to various destinations. 45 Profile of f the Cattle Fairs in Rajasthan

67 Baldev cattle fair is organised at the Merta city of Nagaur district every year from Chaitra Shukla 1 to Chaitra Shukla 15 since Merta city is the famous railway station of Northern Railway. Further, this city is connected by roads with Puskar and Ajmer. This cattle fair is also famous for Nagori breed of cattle bullock. Cattle, buffalo, horse and camel are mainly transacted in this fair. People from different states come to this fair for transaction of animals. Gomtisagar cattle fair is the centre of animal transactions in the Jhalrapattan city of Jhalawar district. This cattle fair is organised every year by the Department of Animal Husbandry from Baisakh Shukla 13 to Jyaistha Krishna 5 since Malvi breeds of animals are the main attraction of this fair. Department of Animal Husbandry, Government of Rajasthan has been continuously working for the improvement of the infrastructure and other facilities at the fair for the people coming to this cattle fair. Veer Tejaji cattle fair is organised every year from Sawan Shukla 15 to Bhadra krishna 15 at Parbatsar sub-division of Nagaur district since Cattle, buffalo, horse and camel are mainly transacted in this cattle fair. However, this cattle fair is famous for Nagori bullock and camel. Department of animal Husbandry organises Gogameri cattle fair every year at Gogameri of Hanumangarh district from Sawan Shukla 15 to Bhadra Shukla 15. Gogameri is connected with Delhi and Jaipur by both bus and rail services. This cattle fair deals with the transaction of cattle, buffalo, horse, camel, sheep, goat and other livestock species. Transaction of Rathi and Haryana breeds of cattle bullock along with camel are the main attraction of this cattle fair. This cattle fair is being organised by the Department of Animal Husbandry, Government of Rajasthan since Jaswant exhibition and cattle fair deals with the transaction of cattle, buffalo, horse, camel, sheep and goat. However, this cattle fair is famous for Haryana bullock. This cattle fair is organised every year at the head quarters of Bharatpur district from Ashwin Shukla 5 to Ashwin Shukla 14. Farmers and traders not only from different districts of Rajasthan, but also from Haryana, Punjab, Uttar Pradesh and Madhya Pradesh come to participate in this fair. During the fair period, people come from faraway places and open small shops of different durable and non- 46 Profile of f the Cattle Fairs in Rajasthan

68 durable items. Not only cultural porgrammes for entertainment, but also exhibitions are organised to disseminate modern technologies and increase the knowledge level of farmers. Puskar cattle fair is organised every year from Kartik Shukla 8 to Mangsir Krishna 2 at Pusker of Ajmer district. The Mughal emperors first time initiated the Puskar fair in Due to increased demand of horses for the Mughal army, Jahangir turned the Kartik fair of Puskar into an animal fair in This animal fair continued till 1650 and thereafter it got disturbed several times due to war and could not take place. During the British rule, this animal fair started again in 1818 and gained momentum. As a result, foreign tourists started coming to this fair since 1976 and now the number of the tourists visiting this fair is at its peak. Now a days, cattle, buffalo, horse and camel are transacted in this fair. Local people of Puskar and Ajmer earn considerable income from tourism through this fair. Chandrabhaga cattle fair is organised at the bank of Chandra Bagha river of Jhalarapatan city of Jhalawar district every year from Kartik Shukla 11 to Mangsir Krishna 5. Department of Animal Husbandry, Government of Rajasthan took the charge of organising this fair since Earlier this cattle fair was organised by the Municipality of Jhalarapatan city. Cattle, buffalo, horse, camel, sheep and goat are transacted in this cattle fair. During the fair, various cultural programmes as well as exhibitions are organised by different departments and NGOs. 3.3 OBJECTIVES OF THE STATE LEVEL CATTLE FAIRS State level cattle fairs of Rajasthan reflect the socio-economic life and tradition of Rajasthan. The Department of Animal Husbandry, Government of Rajasthan organises the state level cattle fairs with the following objectives: 1. To provide better marketing platform to the farmers and traders for transaction of different kinds of livestock species. 2. To make the people dealing with livestock resources more conscious about the sustainable development of livestock species. 47 Profile of f the Cattle Fairs in Rajasthan

69 3. To make the livestock business a viable and profitable activity through the publicity of new prgrammes launched by the state as well as central government for the economic betterment of the large section of rural people of the state. 4. To make latest scientific knowledge and technology available to the animal rearers through exhibitions. 5. To influence the farmers for rearing improved breeds through the organisation of animal competition for different types of livestock species during the cattle fairs. 6. To publicize the unique breeds of the state to the rest of the world. 3.4 FACILITIES PROVIDED BY VARIOUS DEPARTMENTS Different departments of Rajasthan Government extend help by providing different facilities to the people coming to the state level cattle fair so that these could become successful in attracting people. Arrangements are made for drinking water for people as well as animals in the fair. Department of electricity takes care of the lighting arrangements. For the protection of the people and maintenance of law and order situation in premises of fair, temporary police stations are established during the fair. For entertaining the people, local artists, Regional Publicity Departments and Rajasthan Tourism Development Corporation organise attractive cultural programmes and film show during the fair. Simultaneously, scientific exhibitions are organised to improve the knowledge level of farmers. Separate cells are established to solve the problems of people and disseminate important announcements with regard to events taking place during the fair. Arrangements of extra buses and trucks are made by the Transportation department for the movement of people as well as animals during the fair. Even adequate facilities are arranged by the postal department also during the fair. 48 Profile of f the Cattle Fairs in Rajasthan

70 CHAPTER - 4 Methodology

71 4. METHODOLOGY This chapter deals with the sampling design adopted, sources and method of data collection and the analytical framework. These are presented and discussed in the following sections: 4.1 SAMPLING DESIGN Multistage sampling technique with the first stage as Rajasthan, second stage of selection as cattle fairs in the state and subsequent stage as random selection of buyers and sellers was adopted for the present study. Rajasthan was selected purposively because it has a well established network of state level organised cattle fairs. Further, Rajasthan has about 6.11 per cent of country s cattle population and per cent of buffalo population and contributes over 10 per cent of total milk production. Livestock sector contributes 10 per cent to the total state GDP (Report of Working group on Animal Husbandry & Dairying, 11 th Five Year Plan ). Out of the 10 state level cattle fairs, both cattle and buffalo in huge numbers along with other livestock are being transacted in 6 cattle fairs (Ramdev, Veer Tejaji, Jaswant, Puskar, Chandra Bhagha and Baldev). Among these 6 cattle fairs, 4 cattle fairs i.e., Ramdev cattle fair of Nagaur city of Nagaur district (Figure 4.1), Veer Tejaji cattle fair of Parbatsar city of Nagaur district, Jaswant cattle fair of Bharatpur city of Bharatpur district (Figure 4.2) and Puskar cattle fair of Puskar city of Ajmer district (Figure 4.3) were selected due to highest average number of bovine transacted during the last ten years i.e., to (Table 4.1). For the purpose of primary data collection, a predetermined sample of 30 sellers and 30 buyers from each of the selected cattle fair/market was selected randomly. Thus the total sample consisted of 120 sellers and 120 buyers. Further, among the various species of livestock, the marketing transactions with respect to cattle and buffalo were considered for detailed data collection during the calendar year Methodology

72 Table 4.1: Livestock transaction in the 10 state level cattle fairs during to (in nos.) Name of the cattle fair Types of Animals Total Animal Total Bovine Average Bovine Gomatisagar cattle fair C + Others Gogameri cattle fair C + Others Veer Tejaji cattle fair C + B + Others Jaswant cattle fair C + B + Others Puskar cattle fair C + B + Others Chandra Bhaga cattle fair C + B + Others Ramdev cattle fair C + B + Others Shivratri cattle fair C + Others Mallinath cattle fair C + Others Baldev cattle fair C + B + Others C = cattle, B= buffalo and Others = camel, horse, sheep, goat and donkey. ** Puskar cattle fair is selected over Baldev cattle fair because of its historical importance even though average bovine transaction of Puskar cattle fair is less than Baldev cattle fair during this period. 50 Methodology

73 Figure 4.1: Map of Nagaur district of Rajasthan

74 Figure 4.2: Map of Bharatpur district of Rajasthan

75 Figure 4.3: Map of Ajmer district of Rajasthan

76 4.2 DATA COLLECTION Primary data were collected using pre-structured schedule and personal interview of the sellers, buyers and intermediaries on different aspects such as organisational set up of cattle fairs/markets; fee structure; marketing agencies involved; general characteristics of buyers and sellers; type and breed wise transaction of livestock; transportation used by sellers and buyers; marketing cost incurred by different marketing agencies; price received by sellers & paid by buyers; various quantitative and qualitative factors affecting the price of bovine; reasons for sale and purchase of bovine and problems faced by different marketing functionaries. Secondary time series data were collected from the Directorate of Animal Husbandry, Government of Rajasthan, Jaipur on the number of different kinds animals assembled and transacted, expenditure incurred and income accrued from the cattle fairs over the last fifteen years ( to ). Further, secondary data on the livestock scenario of Rajasthan obtained from 17 th and 18 th Livestock Census Report and Basic Animal Husbandry Statistics of various years published by Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, Government of India were also collected for this study. 4.3 ANALYTICAL FRAMEWORK Organisational and functional structure of livestock markets Organisational structure of a market refers to those organisational characteristics which influence the nature of competition, pricing and affect the conduct of business in the market. Functional structure, on the other hand refers to the functioning of market under a given organisational set up. Organisational and functional structure influences the pricing, nature of competition and price spread in a market. In this section the following aspects of livestock markets were investigated: a) Organisational set up of cattle fairs; b) Market functionaries involved; c) Sources and destinations of animals; 51 Methodology

77 d) Mode of transportation used by sellers and buyers; e) Types of animals assembled and transacted in the selected cattle fairs/markets during the study period; f) Trend in the marketing i.e., arrival and transaction of bovine over the years; g) Distribution of bovine transacted by sample sellers and buyers according to type and breed in the selected cattle fairs/markets during the study period; h) Method of transaction and sale price fixation; i) Fee structure; j) Income and expenditure of cattle fairs; k) Degree of sellers and buyers concentration as measured by the number and size distribution of sellers and buyers in the fairs; l) Condition of entry and exit. For studying the organisational and functional structure of the state level cattle fairs, mostly tabular analysis was done using the cross sectional data collected from the sample sellers and buyers during the study period i. e. calendar year However, as part of the analysis trend over the years, Compound Annual Growth Rate (CAGR) was calculated for assembled and transacted animals as wells as income and expenditure of the cattle fairs using secondary time series data for the last 15 years. Further, Lorenz Concentration technique was used to determine the degree of sellers and buyers concentration in the selected fairs/markets. Gini Concentration Ratio was worked out using the following formula: L = 1 i (Q i + Q i-1 ) Where, L = Gini Concentration Co-efficient of sellers and buyers p i = Proportion of sellers/buyers in the i th group Q i = Cumulative proportion of sales/purchase in i th group Q i-1 = Cumulative proportion of sales/purchase in (i-1) th group K = Total number of groups 52 Methodology

78 Closer the GCR to 1, greater the degree of inequality in the size distribution of sellers/buyers, whereas, closer the GCR to 0, greater the degree of equality in the size distribution of sellers/buyers Marketing channel, marketing cost, market margin, price spread and marketing efficiency Identification of different marketing channels Marketing channels are the alternative routes of product flows from producers to consumers (Kohls and Uhl, 1980). The routes, type, number and combination of marketing functionaries involved in the marketing of different commodities in a given place at a particular period of time influence the marketing efficiency. To identify different marketing channels involved in the animal transaction, different routes traversed by the animals from farmer-seller till it reached the ultimate buyer were traced and recorded. From these recordings, important marketing channels involved in the transaction of animals under study were identified. Estimation of marketing cost Marketing cost is the actual cost incurred by each agency involved in the marketing channel right from the preparation of animal for sale till it reaches the ultimate buyer. This cost normally includes preparation cost, transportation cost, feeding cost at the market, brokerage, market fee, labour charges, levy, seller s and buyer s own expenses, miscellaneous cost etc. The individual cost components were estimated as follows: 1. Cost of preparation Cost of preparation included expenses on extra feeding before taking the animal to the market, cost of grooming, washing and decorating the animal together with labour charges. 53 Methodology

79 a) Extra feeding cost: The value of purchased feeds and fodder were taken into account, while the farmer s own feeds and fodder were valued at the prevailing market prices. b) Cost of grooming, washing and decoration: Value of the item required for cleaning and decorating the animal along with labour charges for this purpose were recorded. 2. Transportation cost: This cost is incurred on taking the animal from where it was reared to the market place. Here the vehicle charges were considered as the transportation cost. It is incurred by both the sellers and buyers. Buyers transportation cost included the cost of taking the animal from the market to his home. 3. Market fee: The market fees paid by buyer and seller to the contractors of the market for buying and selling the animal were considered. 4. Own expenses: It included the expenditure on food, travelling and other sundry items incurred by the sellers and buyers. 5. Feeding at market: The expenses incurred on feeds and fodder for animal at the market place by the sellers and buyers were considered. 6. Labour cost: Labour cost was calculated on the basis of time devoted by the sellers and buyers from the start the journey until he reaches back home and was valued at the prevailing wage rates of permanent labour. The value of hired labour was also recorded as per the information provided by the respondents. 7. Miscellaneous expenses: It included other expenses incurred by sellers and buyers, if any, like oiling, shoeing in the horns of bullock, veterinary charges, rope purchased for tying etc. All the individual cost components were apportioned using the standard animal units given by Singh( 1998a) as follows: Animal Equivalent unit 1. Cattle and buffalo above 3 years age A cow with or without calf or a calf of 2 years age A bull of 2 years age or above A yearling heifer or bull A weaned calf of less than 1 years Younger calves Methodology

80 Estimation of market margin Net market margin of the trader was calculated as the difference between price received by trader and total cost incurred by him. Estimation of price spread In livestock marketing, price spread is the difference between the price paid by the ultimate buyer and the net price received by the original farmer seller of animal. It influences the returns to the farmer seller on the one hand and the price paid by the buyer on the other. The knowledge of price spread helps in improving the operational efficiency of marketing. The price spread includes: i) The cost involved in the movement of animal from seller to buyer ii) The profits of various market functionaries involved in the movement of animal from seller to buyer. Producer s share in the buyer s rupee was calculated with the help of following formula: Producer s share in the buyer s rupee = (P p C p )/P B Where, P p = Price received by the producer C p = Market cost incurred by the producer P B = Price paid by the ultimate buyer Estimation of marketing efficiency Marketing efficiency is the measure of ability of marketing agencies to move the animal from the farmer-seller, at the minimum cost by extending maximum service, to the ultimate buyer. It is an important determinant of market performance. Not only the sellers, but also the buyers get benefited from an efficient marketing system. Reduction in the marketing cost and margins of the intermediaries involved is the key indicator of increased marketing efficiency and increased share of producer in buyer s rupee. 55 Methodology

81 Marketing efficiency of different marketing channels were calculated using the Shephard s formula as follows: ME = (V/I)-1 Where, ME = Index of marketing efficiency V = Value of the animal at the ultimate buyer s level I = Gross marketing cost including margin/price spread Higher value of the index indicates the higher marketing efficiency and vice-versa Mean prices of different breed categories of bovine Average unit price, standard deviation and coefficient of variation were worked out for different kinds of bovine across various categories of breeds under different groups i.e., lactating cow, dry cow, cattle bullock, lactating buffalo and dry buffalo etc. Finally, standard normal deviate test was employed to examine the difference between the mean prices of two independent sample categories. Different categories of bovine examined were: for lactating and dry cow - local ND, indigenous and cross breed; for cattle bullock- local ND, Nagori and Haryana; for lactating and dry buffalolocal ND and Murrah breed Factors affecting the market price of different kinds of bovine Multiple regression analysis was carried out to access the degree of influence of various quantitative and qualitative factors on the prices of different kinds of bovine in the cattle fairs. Multiple regression models were fitted for five different categories of bovine i.e., cattle bullock, lactating cow, dry cow, lactating buffalo and dry buffalo. A large number of factors/variables influence the prices of bovine and these factors may vary from one type of bovine to others. Choice and specification of variables have considerable importance in the regression analysis. Even if a single relevant variable is omitted or an unwanted variable is included, the fitted model becomes biased 56 Methodology

82 in the economic sense (Heady and Dhillon, 1961). For the analysis of bullock pricing, age, general appearance, body capacity and temperament were taken as quantitative variables and breed, inauspicious marks and training were taken as qualitative variables. For lactating cow price analysis, quantitative variables included were age, milk yield, order of running lactation, stage of lactation, general appearance, mammary system and temperament whereas qualitative variables were calf-at-heal, breed and inauspicious marks. In case of dry cow quantitative variables included were age, average milk yield in the previous lactation, number of lactations completed, general appearance, mammary system and temperament whereas qualitative variables included were breed and inauspicious marks. The variables included in the lactating and dry buffalo pricing model were same as the variables included in the lactating and dry cow pricing model. Specification of regression model The nature of relationship existed between the dependent and independent variables determine the choice of a particular form of model in regression analysis. The most important functional forms used by different researchers for the analysis of livestock pricing in the past have been linear and quadratic model. However, as concluded by Foote and Fox (1954), it is difficult to choose mathematical form of a function a priori from the data before their actual estimation. Final selection of a model requires a number of initial trials. The regression functions used in this study for different categories of bovine were as follows: A. Cattle bullock Y = f (X 1, X 2, X 3, X 4, D 1, D 2, D 3, D 4, ) Where, Y X 1 = Unit price of bullock (in Rs.) = Age (in years) X 2 = General appearance expressed in standard score. 57 Methodology

83 X 3 = Body capacity expressed in standard score X 4 = Temperament expressed in standard score. D 1 = Dummy variable for breed with value 1 for Haryana and 0 otherwise (base = Local ND). D 2 = Dummy variable for breed with value 1 for Nagori and 0 otherwise (base = Local ND). D 3 = Dummy variable for inauspicious marks with value 1 for presence and 0 for absence (base = no marks). D 4 = Dummy variable for training with value 1 for trained and 0 otherwise (base = no training). B. Lactating cow Y = f (X 1, X 2, X 3, X 4, X 5, X 6, X 7, D 1, D 2, D 3, D 4, D 5 ) Where, Y X 1 = Unit price of lactating cow (in Rs.) = Age (in years) X 2 = Milk yield on the previous day (in lt. /day) X 3 X 4 = Order of running lactation (in no.) = Stage of lactation (in days) X 5 = General appearance expressed in standard score. X 6 = Mammary system expressed in standard score. X 7 = Temperament expressed in standard score. D 1 = Dummy variable for calf at-heal with value 1 for female calf and 0 otherwise (base = no calf). D 2 = Dummy variable for calf at-heal with value 1 for male calf and 0 otherwise (base = no calf). 58 Methodology

84 D 3 = Dummy variable for breed with value 1 for indigenous and 0 otherwise (base = Local ND). D 4 = Dummy variable for breed with value 1 for crossbred and 0 otherwise (base = Local ND). D 5 = Dummy variable for inauspicious marks with value 1 for presence and 0 for absence (base = no marks). C. Dry cow Y = f (X 1, X 2, X 3, X 4, X 5, X 6, D 1, D 2, D 3 ) Where, Y X 1 = Unit price of dry cow (in Rs.) = Age (in years) X 2 = Average milk yield in the previous lactation (in lt. /day) X 3 = Number of lactations completed X 4 = General appearance expressed in standard score. X 5 = Mammary system expressed in standard score. X 6 = Temperament expressed in standard score. D 1 = Dummy variable for breed with value 1 for indigenous and 0 otherwise (base = Local ND). D 2 = Dummy variable for breed with value 1 for crossbred and 0 otherwise (base = Local ND). D 3 = Dummy variable for inauspicious marks with value 1 for presence and 0 for absence (base = no marks). D. Lactating buffalo Y = f (X 1, X 2, X 3, X 4, X 5, X 6, X 7, D 1, D 2, D 3, D 4 ) 59 Methodology

85 Where, Y X 1 = Unit price of lactating buffalo (in Rs.) = Age (in years) X 2 = Milk yield on the previous day (in lt. /day) X 3 X 4 = Order of running lactation (in no.) = Stage of lactation (in days) X 5 = General appearance expressed in standard score. X 6 = Mammary system expressed in standard score. X 7 = Temperament expressed in standard score. D 1 = Dummy variable for calf at-heal with value 1 and 0 otherwise (base = no calf). for female calf D 2 = Dummy variable for calf at-heal with value 1 for male calf and 0 otherwise (base = no calf). D 3 = Dummy variable for breed with value 1 for Murrah and 0 otherwise (base = Local ND). D 4 = Dummy variable for inauspicious marks with value 1 for presence and 0 for absence (base = no marks). E. Dry buffalo Y = f (X 1, X 2, X 3, X 4, X 5, X 6, D 1, D 2 ) Where, Y X 1 = Unit price of dry buffalo (in Rs.) = Age (in years) X 2 = Average milk yield in the previous lactation (in lt. /day) X 3 = Number of lactations completed 60 Methodology

86 X 4 = General appearance expressed in standard score. X 5 = Mammary system expressed in standard score X 6 = Temperament expressed in standard score. D 1 = Dummy variable for breed with value 1 for Murrah and 0 otherwise (base = Local ND). D 2 = Dummy variable for inauspicious marks with value 1 for presence and 0 for absence (base = no marks). In the regression analysis, the score regarding general appearance, mammary system of cow and buffalo were given on the basis of expert opinion by using Dairy Cow Unified Score Card developed by Dairy Cattle Association of America. The details of Dairy Cow Unified Score Card are given as follows: General appearance-30 points a) 10 points: Breed characteristics; head- clean cut, proportionate to body; muzzle- broad with large and open nostrils; jaws- strong; eyes- large and bright; forehead- broad and moderately dished, bridge of nose straight; ears- medium and alertly carried. b) 10 points: Shoulder blades- set smoothly and tightly against the body; back- straight and strong; loin- broad and nearly level; rumplong wide and nearly level from hock bones to pin bones, clean-cut and free from patchiness; thurls- high and wide apart; tail head set level with backline and free from coarseness; tail- slender. c) 10 points: legs and feet- bone flat and strong, pasterns short and strong, hocks cleanly molded; feet- short, compact, well rounded, with deep heel and level sole; fore legs- medium in length, straight, wide apart and squarely placed; hind legs- nearly perpendicular from hock to pastern from the side view and straight from the rear view. 61 Methodology

87 Dairy characters-20 points 20 points: Neck- long, lean and blending smoothly into shoulders, clean cut throat, dewlap and brisket; withers- sharp; ribs- wide apart, rib bones wide, flat and long; flanks- deep and refined; thighs- incurving to flat, wide apart from the rear view, providing ample room for the udder and its rear attachments; skin- loose and pliable. Body capacity-20 points a) 10 points: Barrel- strongly supported, long and deep; ribs highly and widely sprung; depth and width of barrel tending to increase toward rear. b) 10 points: Heart girth- large and deep with well sprung fore ribs blending in to the shoulders; full crops; full at elbows; wide chest floor. Mammary system-30 points a) 10 points: Udder- symmetrical, moderately long, wide, deep, strongly attached, showing distinct cleavage between halves, no quartering on sides, soft, pliable and well collapsed after milking, quarters evenly balanced. b) 6 points: Fore udder- moderate length, uniform width from front to rear and strongly attached. c) 7 points: Rear udder- High, wide, slightly rounded fairly uniform width from top to floor and strongly attached. d) 5 points: Teats- uniform size, of medium length and diameter, cylindrical, squarely placed under each quarter, plumb and well spaced from side and rear views. e) 2 points: Mammary veins- large, long, tortuous and branching. The score regarding general appearance and body capacity of cattle bullock were given on the basis of expert opinion by using Dairy Bull Unified 62 Methodology

88 Score Card developed by Dairy Cattle Association of America with modification. The details of Dairy Bull Unified Score Card are given as follows: General appearance-45 points a) 15 points: Breed characteristics; head- clean cut, proportionate to body; muzzle- broad with large and open nostrils; jaws- strong; eyes- large and bright; forehead- broad and moderately dished, bridge of nose straight; ears- medium and alertly carried. b) 15 points: Shoulder blades- set smoothly and tightly against the body; back- straight and strong; loin- broad and nearly level; rumplong wide and nearly level from hock bones to pin bones, clean-cut and free from patchiness; thurls- high and wide apart; tail head set level with backline and free from coarseness; tail- slender. c) 15 points: legs and feet- bone flat and strong, pasterns short and strong, hocks cleanly molded; feet- short, compact, well rounded, with deep heel and level sole; fore legs- medium in length, straight, wide apart and squarely placed; hind legs- nearly perpendicular from hock to pastern from the side view and straight from the rear view. Dairy characters-30 points 30 points: Neck- long, lean, with medium crest and blending smoothly into shoulders, clean cut throat, dewlap and brisket; withers- sharp; flanks- deep and refined; thighs- incurving to flat, wide apart from the rear view; skin- loose and pliable. Body capacity-25 points a) 12 points: Barrel- strongly supported, long and deep; ribs highly and widely sprung; depth and width of barrel tending to increase toward rear. 63 Methodology

89 b) 13 points: Heart girth- large and deep with well sprung fore ribs blending in to the shoulders; full crops; full at elbows; wide chest floor. The score regarding temperament of cow and buffalo was given on the basis of expert opinion by using Temperament Score Card (Table 4.2) developed by Tulloh (1961) and modified by Mishra et. al., (1975) as follows: Table 4.2: Temperament score card Temperament Description of Temperament Score Docile The animal stands quietly, rarely moves except to raise or lower head, never gives any trouble; extremely docile during milking and preparation of milking; animal is ideal milker. 1 The animal stands quietly in stall; not bothered by Slightly the preparation of milking or milking itself; but may Restless move frequently shifting weight from side to side; 2 may flick tail occasionally; gives very less trouble. Restless The animal moves almost continuously; flicks tail frequently; snorts; may lift feet occasionally during preparation of milking but doesn t kick; may be stubborn. 3 The animal appears very restless during Nervous preparation; moves around a lot; may lift feet occasionally during preparation of milking but 4 doesn t kick; quivers when hand is placed at the back; flicks tail. Aggressive The animal is very restless during preparation of milking; struggles violently; kicks at milker; attacks observer by butting; moves from side to side; very difficult to handle; bellows and froths at the mouth Methodology

90 The score regarding temperament of cattle bullock was given on the basis of expert opinion by using Temperament Score Card developed by Tulloh (1961) and modified by Mishra and et al. (1975) with modification Reasons for sale and purchase and constraints faced by different marketing functionaries Garret s Ranking Technique (Garret, 1979) was used to rank the reasons/constraints faced by different marketing functionaries. The respondents were asked to assign rank to different reasons/constraints faced by them with respect to their opinion. The ranks given by them were converted into percent position with the help of following formula: Percent position = Where, R ij = Rank given for i th reason/constraint and j th individual N j = Number of reasons/constraints ranked by the j th individual The percent position of each rank was then converted into scores by referring to the table given by Garret. Thereafter, for each reason/constraint, the scores of individual respondents were added and divided by the total number of respondents. The mean score for all the reasons/constraints were arranged in descending order and thus ranks were assigned to each reason/constraint. Possible reasons for sale enquired were: Immediate cash requirement Scarcity of feed and fodder Uneconomic Sterility Poor draft capacity Unwanted characteristics Drought Replacement Defect Surplus animals Lack of supervisory manpower 65 Methodology

91 Possible reasons for purchase enquired were: Profit making through selling at a later time Milk purpose Agricultural operations purpose Pair matching Breeding purpose Festival purpose Transport operation Slaughtering purpose Possible constraints faced by sellers enquired were: Lack of infrastructure (shelter for human and animal, light, drinking water for human and animal, adequate space for animal assembling, parking space, fence) Inadequate input availability (green and dry fodder) lack of market intelligence (information on prices & market charges) High market charges (market tax & brokerage) Cheating by middlemen Difficulty in animal transportation Lack of health facilities for animals Lack of hygiene and sanitation in market yard Unremmunerative price Harassment at check points Possible constraints faced by buyers enquired were: Lack of infrastructure (shelter for human and animal, light, drinking water for human and animal, adequate space for animal assembling, parking space, fence) Inadequate input availability (green and dry fodder) Lack of market intelligence (information on prices & market charges) High market charges (brokerage) Malpractices adopted by seller & broker Difficulty in animal transportation Lack of health facilities for animals Lack of hygiene and sanitation in market yard High market price Lack of security at night Harassment at check points 66 Methodology

92 CHAPTER - 5

93 5. RESULTS AND DISCUSSION Commensurate with the objectives set forth for the present study entitled Economic Analysis of Bovine Marketing in Organised Cattle Fairs of Rajasthan, the collected data were subjected to tabular and statistical analysis with the help of well devised methodology. This chapter presents all the results, interpretation and discussions that emerge out of the present study. The results of the study are discussed under five major sections for the sake of expositional convenience. The first section deals with the profile of the sellers and buyers who were engaged in the transaction of different kinds of bovine in the state level cattle fairs of Rajasthan. The second section deals with the organisational and functional structure of the cattle fairs/markets. The third section deals with the identification of different marketing channels and then calculating the marketing cost, market margin, price spread and marketing efficiency. The fourth section deals with the mean prices of different kinds of bovine. The fifth section deals with various quantitative and qualitative factors that affect the market price of different kinds of bovine. The sixth section deals with the identification and prioritization of different reasons responsible for sale and purchase of different kinds of bovine and also constraints faced by various market functionaries in the fairs. 5.1 SOCIO-ECONOMIC PROFILE OF THE SELLERS AND BUYERS The various socio-economic characteristics of the sellers and buyers play an important role in their decision making with regard to selling and buying of animals. The study of these aspects of sellers and buyers helps us to understand who are the people engaged in the transaction of animals in the fairs and as to what is their socio-economic background in terms of age, occupation, education level etc. Therefore, the distribution of sample sellers and buyers into different age groups, educational groups and occupational groups is very important before studying the bovine marketing in details. The results of the frequency distribution of the sellers and buyers according to age, education and occupation are discussed in the ensuing sections: 67

94 5.1.1 Age group-wise distribution of sample sellers and buyers across selected fairs Distribution of sample sellers and buyers across different fairs according to different age groups is presented in Table 5.1. The overall picture shows that majority of the sellers (45.00 %) and buyers (48.33 %) were in the age group of years followed by per cent sellers and per cent buyers in the age group of years, per cent sellers and per cent buyers in the age group of less than 30 years and the remaining per cent sellers and 9.17 per cent buyers were in the age group of more than 50 years. Across different fairs, it was found that in case of Ramdev cattle fair, majority of the sellers (46.67 %) and buyers (50.00 %) were in the age group of years. In case of Veer Tejaji cattle fair, per cent sellers and per cent buyers, while in Jaswant cattle fair, per cent sellers and per cent buyers and in case of Puskar cattle fair, per cent sellers and 40 per cent buyers were in the age group of years which were found to be the maximum shares in the respective fairs. It clearly shows that livestock marketing is a stressful activity and the years age group people not only can bear this stress, but also have the experience and knowledge about the intricacies of livestock marketing Education level of sample sellers and buyers across selected fairs Table 5.2 shows the distribution of sample sellers and buyers across different fairs according to educational level. Overall it was observed that majority of sellers (50.00 %) and buyers (45.00 %) were primary educated followed by illiterate sellers (39.17 %) and buyers (40.83 %), secondary educated sellers (9.17 %) and buyers (10.83 %) and the rest of the sellers (1.67 %) and buyers (3.33 %) had the education level of higher secondary and above. Across the fairs, it was found that in case of Ramdev cattle fair, majority of the sellers (50.00 %) and buyers (43.33 %) were primary educated. In case of Veer Tejaji cattle fair, majority of the sellers (46.67 %) and buyers (46.67 %) were illiterate. But, in case of Jaswant cattle fair, 68

95 Table: 5.1 Age group-wise distribution of sellers and buyers across selected fairs (in nos.) Age group Ramdev Veer Tejaji Jaswant Puskar Overall (Years) Sellers Buyers Sellers Buyers Sellers Buyers Sellers Buyers Sellers Buyers < (16.67) (13.33) (10.00) (6.67) (13.33) (10.00) (13.33) (16.67) (13.33) (11.67) (46.67) (50.00) (40.00) (56.67) (43.34) (46.67) (50.00) (40.00) (45.00) (48.33) (26.66) (30.00) (36.67) (26.66) (30.00) (33.33) (23.34) (33.33) (29.17) (30.83) > (10.00) (6.67) (13.33) (10.00) (13.33) (10.00) (13.33) (10.00) (12.50) (9.17) Total (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) Figures in the parentheses indicate percentage of total sellers and buyers. 69

96 Table: 5. 2 Distribution of sellers and buyers according to education level across selected fairs (in nos.) Education Ramdev Veer Tejaji Jaswant Pushkar Overall Level Sellers Buyers Sellers Buyers Sellers Buyers Sellers Buyers Sellers Buyers Illiterate (36.67) (40.00) (46.66) (46.66) (36.67) (43.34) (36.67) (33.33) (39.16) (40.84) Primary (50.00) (43.34) (43.34) (40.00) (53.33) (40.00) (53.33) (56.67) (50.00) (45.00) Secondary (10.00) (13.33) (10.00) (6.67) (10.00) (13.33) (6.67) (10.00) (9.17) (10.83) Higher Sec. & above (3.33) (3.33) - (6.67) - (3.33) (3.33) - (1.67) (3.33) Total (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) Figures in the parentheses indicate percentage of total sellers and buyers. 70

97 majority of the sellers (53.33 %) were primary educated and buyers (43.33 %) were illiterate. In case of Puskar cattle fair, majority of the sellers (53.33 %) and buyers (56.67 %) were primary educated. The present observation is in tune with the findings of Pandit (2004) who also found that most of the sellers and buyers engaged in the marketing of cattle in the Central Alluvial Plains of West Bengal were primary educated. Therefore, it can be said that practical knowledge and experience about the livestock marketing is more important for the sellers and buyers and formal education does not play much important role for efficient performance of livestock marketing activities Occupation wise distribution of sample sellers and buyers across selected fairs Distribution of sample sellers and buyers across different fairs according to occupation is presented in Table 5.3. As far as the sellers are concerned it was found that on the whole most of the sellers were farmers (51.67 %) who were engaged in livestock rearing/farming and trade followed by livestock traders (34.17 %) who were not engaged in livestock farming but earns margin through the sale of animals at fair after purchasing them from others on earlier occasions and thereafter others (8.33 %) which included vegetable seller, shop owner, carpenter etc. who rear livestock and enters the marketing business as subsidiary occupation, and finally the labourers (5.83 %) who were also engaged in livestock farming as subsidiary occupation and enters the business of livestock marketing as subsidiary business. Occupation-wise distribution of buyers reveals that majority of the buyers were farmers (45.83 %) who purchased the animals for rearing purpose followed by livestock traders (40.00 %) who mainly purchased the animals for earning margin through sale at a later stage, labourers (7.50 %) who purchased animals for rearing as subsidiary occupation and finally others (6.67 %) who also purchased animals for rearing as subsidiary occupation. Similar findings were reported by Pandit (2004) who also found that most of the sellers and buyers engaged in the marketing of livestock in the Central Alluvial Plains of West Bengal were farmers. 71

98 Table: 5.3 Occupation wise distribution of sellers and buyers across selected fairs (in nos.) Occupation Farmer Livestock trader Labourer Others Total Ramdev Verr Tejaji Jaswant Puskar Overall Sellers Buyers Sellers Buyers Sellers Buyers Sellers Buyers Sellers Buyers (50.00) (43.33) (46.67) (50.00) (53.34) (43.33) (56.67) (46.67) (51.67) (45.83) (40.00) (36.67) (33.33) (40.00) (33.33) (40.00) (30.00) (43.33) (34.17) (40.00) (6.67) (13.33) (10.00) (3.33) (3.33) (6.67) (3.33) (6.67) (5.83) (7.50) (3.33) (6.67) (10.00) (6.67) (10.00) (10.00) (10.00) (3.33) (8.33) (6.67) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) Others includes vegetable sellers, shop owner, carpenter etc. Figures in the parentheses indicate percentage of total sellers and buyers. 72

99 5.2 ORGANISATIONAL AND FUNCTIONAL STRUCTURE OF THE CATTLE FAIRS/MARKETS Organisational structure of a cattle fair/market is the organisational characteristics which influence the nature of competition, pricing and affect the conduct of business in the fair/market. On the other hand, functional structure refers to the functioning of market under a given organisational set up. Organisational and functional structure exerts considerable influence on the pricing, nature of competition and price spread in a fair/market. The findings of different aspects of organisational and functional structure of the state level cattle fairs of Rajasthan are presented under various sub-sections as under: Organisational structure of the cattle fairs The ten state level cattle fairs of Rajasthan were organised and controlled by the Department of Animal Husbandry, Government of Rajasthan under the Rajasthan State Cattle Fair Act Each of these cattle fairs are organised once in a year at fixed places and dates across different districts of Rajasthan. The organisational structure (Figure5.1) of the state level cattle fairs of Rajasthan revealed that at the apex level there is an Officer In-charge of cattle fair who is appointed by the state government for the overall management and control of the fairs. At the second layer of organisational structure there is a cattle fair committee constituted by state government to assist the Officer In-charge of the fair in performing his duties. The cattle fair committee consists of nominated official members not exceeding 13 including chairman and vice-chairman and non-official members not exceeding 8 including Member of Legislative Assembly, Gram Pradhan etc. Deputy Collector is the Ex-officio Chairman, Joint Director of Animal Husbandry (Range) is the Ex-officio Vice-chairman and Officer In-charge of cattle fair is the Ex-officio Secretary. At the lowest level there are various sub-committees appointed by the Cattle fair committee to look into the specific activities during cattle fair. These sub-committees include office committee, inaugural/closing ceremony committee, animal competition committee, electricity, tent and 73

100 water management committee, red slip/white slip issuing committee, cultural committee, rent collection committee, health certification committee, Rawanna committee to look in to the departure of buyers besides many more committees. Red slip is the entry pass issued by In-charge of outpost to the sellers who come to the fair for selling animals and white slip is the printed form of bill of sale issued by a person authorized by the Officer In-charge. No person can purchase animals without obtaining white slip where signature of both the sellers and buyers are taken. Fair tax is paid by purchaser of animal presenting the white slip and thereafter the receipt slip is issued to them. The organised cattle fairs were also found prevalent in Punjab as reported by Sidhu and Johl (1966) and in Haryana reported by Grover et al. (1997) where government plays an important role in the organisation and control of fairs. However, in West Bengal, the animal markets were unorganised and controlled by the private individuals (Pandit, 2004) Market functionaries The market functionaries involved in a cattle fair/market depends on the structure of that fair/market. It was found that in the state level cattle fairs of Rajasthan, the market functionaries include cattle fair Office In-charge, members of cattle fair committee, people under various sub-committees for performing different activities and most importantly the sellers, buyers and traders. It is important to note that the brokers were completely banned in the state controlled organised cattle fairs of Rajasthan which is not the case as reported by Sidhu and Johl (1966) and Grover et al. (1997) in Haryana, Singh (1979) in Punjab and Pandit and Dhaka (2004) in West Bengal. This ban on brokers was considered as a good practice for both sellers and buyers in Rajasthan as they need not pay unnecessary brokerage to the brokers Sources and destinations of animals It was observed that animals i.e., majority cattle, buffalo, camel, horse, goat and sheep etc. came mainly from different districts of Rajasthan i.e., Nagaur, Bharatpur, Ajmer, Tonk, Jodhpur, Bikaner, Bhilwara, Dausa, Sikar, Pali, Swai Madhopur, Churu, Jhunjhunun, Alwar, Jalor, Kota, Dholpur etc. However, cattle and buffalo were also brought for sale from the neighboring 74

101 Organisational Structure Officer In-charge of Cattle Fair Fair Committee (Official Members & Non-official Members) Official Member- 13 Maximum [ Including Chairman i.e. DC & Vicechairman i.e. Joint Director of Ani. Husb. (Range) ] Non-official Member- 8 Maximum [ Including Pramukh, Pradhan, MLA ] Office committee Inaugural / closing ceremony committee Animal competition committee Electricity, tent and water committee Red slip / white slip committee Cultural committee Rawanna committee & many others Figure5.1: Organisational structure of state level cattle fairs of Rajasthan

102 states like Haryana, Uttar Pradesh and Madhya Pradesh. As far as the destinations of animals were concerned, it was found that animals were not only purchased by the buyers of Rajasthan but also by the buyers of different states like Haryana, Uttar Pradesh, Punjab, Madhya Pradesh and Gujarat Mode of transportation used by sellers and buyers Table 5.4 shows the distribution of sample sellers and buyers on the basis of mode of transportation used by them. In case of sellers it was found that overall most of the sellers used big truck (29.16 %) for transporting their cattle and buffalo followed by mini trucks (28.33 %), pick-up (19.17 %), walking (17.50 %) and tractors (5.83 %). In case of buyers, it was found that majority of the buyers used mini trucks (32.50 %) for transporting cattle and buffalo followed by big trucks (30.83 %), walking (16.67 %), pick-up (15.00 %) and tractor (5.00 %). This clearly shows that in the state level cattle fairs of Rajasthan a sellers or buyers mostly carry relatively more number of animals than only one or two animals and therefore, they mostly use trucks, pick-up and tractor for the transportation of animals Types of animals assembled and transacted in the selected cattle fairs/markets Although the study involved the analysis of different aspects of bovine marketing in particular in the organised cattle fairs of Rajasthan, an attempt was made to see what were different kinds of animals assembled and transacted in the selected cattle fairs during the study period of 2011 based on the secondary data. Further, a time series analysis of both assembled and transacted animals was carried out to examine the trend in number of assembled and transacted animals over the last 15 years ( to ) in terms of both absolute value and Compound Annual Growth Rate (CAGR). It is evident from the Table 5.5 that during the study period (2011), in Ramdev cattle fair, cattle dominated the arrival (57.74 %) followed by camel (35.73 %), horse (4.37 %), buffalo (2.10 %), goat (0.06 %) and others(donkey, ass, mule etc.) which were negligible. In Veer Tejaji cattle fair also 75

103 Table: 5.4 Mode of transportation adopted by sellers and buyers in the selected fairs (in nos.) Mode Ramdev Veer Tejaji Jaswant Pushkar Overall Sellers Buyers Sellers Buyers Sellers Buyers Sellers Buyers Sellers Buyers Walking (20.00) (16.67) (23.33) (16.67) (13.33) (16.67) (13.33) (16.67) (17.50) (16.67) Pick-up (16.67) (20.00) (26.67) (13.33) (20.00) (10.00) (13.33) (16.67) (19.17) (15.00) Mini-Truck (23.33) (26.67) (26.67) (33.34) (33.34) (40.00) (30.00) (30.00) (28.33) (32.50) Big-Truck (36.67) (30.00) (20.00) (33.33) (26.67) (30.00) (33.34) (30.00) (29.16) (30.83) Tractor (3.33) (6.66) (3.33) (3.33) (6.66) (3.33) (10.00) (6.66) (5.84) (5.00) Total (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) Figures in parentheses indicate percentage of total sellers and buyers. 76

104 Table: 5.5 Different types of animals assembled in the selected cattle fairs during 2011 (in nos.) Cattle Buffalo Horse Camel Goat Others Total animals Ramdev Veer Tejaji Jaswant Pushkar Overall (57.74) (72.19) (61.00) (24.18) (51.15) (2.10) (12.84) (32.80) (3.99) (10.07) (4.37) (0.15) (0.10) (25.01) (8.89) (35.73) (14.82) (5.12) (46.80) (29.69) (0.06) - (0.98) (0.02) (0.20) (0.00) (0.00) (100.00) (100.00) (100.00) (100.00) (100.00) Source: Department of Animal Husbandry, Government of Rajasthan. Figures in parentheses indicate percentage of total animals. 77

105 cattle dominated the arrival (72.19 %) followed by camel (14.82 %), buffalo (12.84 %) and horse (0.15 %). In case of Jaswant cattle fair, the majority of animals were cattle (61.00 %) followed by buffalo (32.79 %), camel (5.12 %), goat (0.98 %) and horse (0.10 %). However, Puskar cattle fair was dominated by camel (46.80 %) followed by horse (44.03 %), cattle (24.18 %), buffalo (3.99 %) and goat (0.02 %) only. A close look at the overall picture of the four selected cattle fairs revealed that cattle were the dominant (51.15 %) type of animals followed by camel (29.69 %), buffalo (10.07 %), horse (8.89 %), goat (0.20 %) and others which were negligible. The results of the time series analysis (Table 5.6) of assembled animals showed that in Ramdev cattle fair, the arrival of cattle declined during the last 15 years ( to ) registering a negative Compound Annual Growth Rate (CAGR) of per cent. However, the arrival of buffaloes registered a negligible increase in number of buffaloes with a positive CAGR of 0.59 per cent. As far as the total number of animals assembled are concerned, like cattle, it also declined with a negative CAGR of per cent. In Veer Tejaji and Puskar cattle fairs, the arrival of cattle, buffalo and total number of animals declined over the corresponding period. The CAGR of assembled cattle, buffalo and total animals were per cent, per cent and per cent respectively in Veer Tejaji cattle fair while these were per cent, per cent and per cent respectively in Puskar cattle fair. However, it was the Jaswant cattle fair where the arrival of cattle, buffalo and total animals showed an increasing trend over the corresponding period with CAGR of 3.17 per cent, 4.39 per cent and 2.25 per cent respectively. The overall analysis of the 4 cattle fairs showed that the arrival of cattle, buffalo and total animals declined during this period registering a CAGR of per cent, per cent and per cent respectively. As far as the transaction of animals during the study period (2011) is concerned, it is evident from the Table 5.7 that in Ramdev cattle fair, cattle dominated the transaction (67.63 %) followed by camel (28.21 %), buffalo (2.27 %) and horse (1.89 %). In Veer Tejaji cattle fair also, cattle dominated in 78

106 Table: 5. 6 Number and Compound Annual Growth Rate (CAGR) of cattle, buffalo and total animal assembled in the selected cattle fairs during to (in nos.) Ramdev Veer Tejaji Jaswant Pushkar Overall Year Total Total Total Total Total Cattle Buffalo Cattle Buffalo Cattle Buffalo Cattle Buffalo Cattle Buffalo animal animal animal animal animal CAGR (%) Compound Annual Growth Rate (CAGR) was calculated on the basis of the above secondary data obtained from Department of Animal Husbandry, Government of Rajasthan. 79

107 Table: 5.7 Different types of animals transacted in the selected cattle fairs during 2011 (in nos.) Cattle Buffalo Horse Camel Goat Total animal Ramdev Veer Tejaji Jaswant Pushkar Overall (67.63) (79.27) (81.79) (27.93) (65.74) (2.27) (11.28) (16.77) (1.39) (7.77) (1.89) - - (21.14) (4.91) (28.21) (9.45) (0.67) (49.54) (21.39) (0.77) - (0.19) (100.00) (100.00) (100.00) (100.00) (100.00) Source: Department of Animal Husbandry, Government of Rajasthan. Figures in parentheses indicate percentage of total animals. 80

108 the transaction (79.27 %) followed by buffalo (11.28 %), camel (9.45 %). In the case of Jaswant cattle fair, the majority of animals transacted were cattle (81.79 %) followed by buffalo (16.77 %), goat (0.77 %) and camel (0.67 %). However, in case of Puskar cattle fair, the dominant animals transacted were camel (49.54 %) followed by cattle (27.93 %), horse (21.14 %) and buffalo (1.39 %). However, a close look at the overall scenario of the four selected fairs, it can be said that cattle were the dominant (65.74 %) type of animals transacted in the fairs followed by camel (21.39 %), buffalo (7.77 %), horse (4.91 %) and goat (0.19 %) which were negligible. The results of the time series analysis (Table 5.8) of transacted animals showed that in Ramdev cattle fair, the transaction of cattle declined during the last 15 years ( to ) registering a negative Compound Annual Growth Rate (CAGR) of per cent. However, the transaction of buffalo registered a marginal increase in number with a positive CAGR of 0.86 per cent. Like cattle, the total number of animals transacted also showed a declining trend with a negative CAGR of per cent. In Veer Tejaji and Puskar cattle fairs, the transaction of cattle, buffalo and total animals showed a declining trend over the corresponding period. The CAGR of transacted cattle, buffalo and total animals were per cent, per cent and per cent respectively in Veer Tejaji cattle fair while these were per cent, per cent and per cent respectively in Puskar cattle fair. However, in Jaswant cattle fair, the transaction of cattle, buffalo and total animals increased over the corresponding period with CAGR of 5.59 per cent, 2.27 per cent and 4.30 per cent respectively. The overall analysis of the 4 cattle fairs showed that the transaction of cattle, buffalo and total animals declined during this period registering a CAGR of per cent, per cent and per cent respectively. The overall findings of the assembled and transacted animals in the four organised cattle fairs of Rajasthan were largely in conformity with the findings of Pandey et al. (1996) in Haryana and Gill et al. (1998) in Punjab who reported that cattle and buffalo were the dominant animals assembled and transacted in the cattle fairs across these states. However, the major 81

109 Table: 5.8 Number and Compound Annual Growth Rate (CAGR) of cattle, buffalo and total animal transacted in the selected cattle fairs during to (in nos.) Ramdev Veer Tejaji Jaswant Pushkar Overall Year Total Total Total Total Total Cattle Buffalo Cattle Buffalo Cattle Buffalo Cattle Buffalo Cattle Buffalo animal animal animal animal animal CAGR (%) *Compound Annual Growth Rate (CAGR) was calculated on the basis of the above secondary data obtained from Department of Animal Husbandry, Government of Rajasthan. 82

110 difference was that both the number of assembled and transacted camels and horses were significantly higher in Rajasthan which is not the case in other states like Haryana and Punjab where arrival and transaction of camels and horses were insignificant. The negative compound annual growth rate of both assembled and transacted animals observed in the present study is a cause of concern given the importance of state level cattle fairs in the socioeconomic life of Rajasthan. This may be due to various reasons. Firstly, there was complete ban by the Rajasthan High Court on male cattle below 3 years age from going to other states which discouraged its purchase by outside buyers. Secondly, the buyers were required to stay in the fairs and not allowed to leave even if they complete the purchase of animals which lead to increase in various marketing cost components such as feeds and fodder cost, own expenses and other miscellaneous costs. Thirdly, the buyers could not rely on the quality of animals as they are not familiar with the sellers who came mostly from distant places rather than nearer ones as in case of unorganised local markets where the sellers and buyers are mostly known to each other. Fourthly, there was a shortage of feeds and fodder in the fairs for animals. Fifthly, there was inadequate infrastructure in most of the cattle fairs both for animals and human beings which made it difficult for sellers and buyers to stay for a long period of time at the fairs. The analysis of the ratio of transacted animals to assembled animals (Table 5.9) during the study period (2011) revealed that in case of cattle this ratio was highest in Jaswant cattle fair (0.89) followed by Veer Tejaji cattle fair (0.62), Ramdev cattle fair (0.51) and Puskar cattle fair (0.37). In case of buffalo, this ratio was highest in Veer Tejaji cattle fair (0.50) followed by Ramdev cattle fair (0.47), Jaswant cattle fair (0.34) and Puskar cattle fair (0.11). As far as the total number of animals are concerned, this ratio was highest in Jaswant cattle fair (0.66) followed by Veer Tejaji cattle fair (0.56), Ramdev cattle fair (0.43) and Puskar cattle fair (0.32). A close perusal of the total number of different types of animals revealed the highest ratio (0.60) of transacted to assembled animals was for cattle followed by goat (0.45), buffalo (0.36), camel (0.33) and horse (0.26). It clearly indicated that among different types of animals, the gap between the supply and demand was 83

111 Table: 5.9 Ratio of transacted animals to assembled animals in the selected cattle fairs during 2011 Ramdev Veer Tejaji Jaswant Pushkar Overall Cattle Buffalo Horse Camel Goat Total animals

112 comparatively narrow in case of cattle followed by goat, buffalo, camel and horse. Relatively higher ratio of transacted to assembled animals is good from the point of view of popularity and success of these fairs Distribution of bovine transacted by sample sellers and buyers according to type and breed in the selected cattle fairs/markets In this section, an attempt has been made to look particularly at the different categories of bovine as well as their different breeds transacted by the sample sellers and buyers in the selected cattle fairs. The transacted animals were mainly differentiated into milch, drought and breeds of origin. A perusal of the Table 5.10 reveals that the total number of bovine i.e., cattle and buffalo transacted by the sample sellers and buyers in the four selected cattle fairs was 1471 out of which cattle constituted the majority viz., 994 ( %) followed by buffaloes viz., 477 (32.43 %). Further, out of total number of bovine transacted, cattle bullocks constituted the majority with per cent share followed by milch cows(17.68 %), cattle young stock (12.58 %), buffalo bulls (12.17 %), milch buffaloes (10.88 %), buffalo young stock (5.23 %), cattle calves (3.87 %) and cattle heifers (2.65 %), buffalo calves (2.52 %) and buffalo heifers (1.63 %). However, a comparison of transacted animals at individual cattle fairs revealed that in Ramdev and Veer Tejaji cattle fairs only cattle bullock, cattle young stock, buffalo bull and buffalo young stock were transacted and no milch cattle and buffalo were transacted. But in Jaswant and Puskar cattle fairs, milch cattle and buffalo along with their calves as well as heifers were also transacted in large number besides cattle bullock, cattle young stock, buffalo bull and buffalo young stock. Singh et al. (1996) while studying the role of cattle fair in livestock marketing in Haryana, also found that in Hisar circle cattle fair, drought animals such as bullock and male young stock of cow were the major animals transacted. Pandey et al. (1996) while studying the structure of cattle fairs in Haryana revealed that the animals transacted belonged to milch, drought category and breeds of origin. However, Rao et al. (2001) while studying the dairy animal markets of Andhra Pradesh reported that milch cattle constituted the major group of animals transacted in the markets. 85

113 Table: 5.10 Total bovine transacted by sample sellers and buyers in the selected cattle fairs (in nos.) Ramdev Veer Tejaji Jaswant Puskar Overall A. Cattle (1-5) (75.06) (63.49) (54.90) (80.00) (67.57) 1. Calf (6.62) (10.17) (3.87) 2. Heifer (4.41) (7.12) (2.65) 3. Milch cow (36.03) (38.31) (17.68) 4. Yong stock (23.69) (19.62) (2.70) (2.37) (12.57) 5. Cattle bullock (51.37) (43.87) (5.15) (22.03) (30.80) B. Total buffalo (24.94) (36.51) (45.10) (20.00) (32.43) 1. Calf (7.35) (2.37) (2.52) 2. Heifer (3.92) (2.71) (1.63) 3. Milch buffalo (30.88) (11.53) (10.88) 4. Young stock (6.73) (11.44) (0.98) (1.36) (5.23) 5. Buffalo bull (18.20) (25.07) (1.96) (2.03) (12.17) C. Total bovine (A+B) (100.00) (100.00) (100.00) (100.00) (100.00) Figures in parentheses indicate percentage of total animals. 86

114 Plate 1: Bullocks in Ramdev cattle fair of Nagaur Plate 2: A shop in Ramdev cattle fair of Nagaur

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