Economic analysis of arrivals and prices of pulses in Maharashtra state of India

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1 Economic analysis of arrivals and prices of pulses in Maharashtra state of India Dr. Rachana Patil and Vineel Bhurke Assistant Professor - Rural Management at Welingkar Institute of Management Development and Research, Mumbai Pulses occupy a unique position in Indian agriculture by virtue of their high protein content (upto per cent) and ability to convert atmospheric nitrogen into useful form. This makes pulses one of the cheap sources of protein for human consumption. Hence pulses are also called as poor man s meat. Farmers always desire to get reasonable price for their farm produce. Prices depend upon the arrival of the commodities in the Agricultural Produce Market committee (APMC). Akola district is one of the major pulses (Red gram Green gram and Black gram) trading centre in India had been selected for the study. Moving average method was used to calculate the seasonal indices of pulses. Major seasonal movements were observed in the arrivals and prices of the pulses in the different months of the year. As arrivals increased, prices decreased and vice versa. Key words: Pulses, Seasonal Indices, Arrivals and Prices, APMC Introduction Pulses occupy a unique position in Indian agriculture by virtue of their high protein content and ability to convert atmospheric nitrogen into useful form. Pulses coupled with their capability of returning large amounts of dry matter to soil, play an important role in maintaining the good physical condition of the soil and thereby its productivity. Pulses are considered as source of protein, the protein content in pulses is about per cent. This makes pulses one of the cheap sources of protein for human consumption. Thus, pulses are called poor mans meat. Marketing system for farm product and also for the agricultural inputs for agricultural production plays an important role in the national economy. Marketing plays a crucial role not only in stimulating production and consumption but in accelerating the pace of economic development. It has been described as the most important multiplier of rural development. The agricultural marketing system plays a dual role in economic development. In countries where resources are primarily agricultural, farmers always desire to get reasonable price for their farm produce. But price depends upon the production of commodity in the APMC. Objective The objective of the present research was to study the seasonal indices of arrival and prices of pulses (particularly, Red gram, Green gram and Black gram). Methodology Akola district of Maharashtra was selected for the study as it is one of the major pulse trading centre in India, hence, the research is predominantly based upon secondary data. The secondary data were collected for the period to 1-211, 12 years time series data of red gram, green gram and black gram were collected from APMC Akola, Maharashtra. Statistical tools Seasonal Indices of pulses Seasonal Index related to Arrival and Prices of pulses were calculated by moving average method with the given formula. Moving Av. for that month Seasonal Index = X Average of Moving Average > RJEBS: Volume: 3, Number: 7, May-214 Page 2

2 Result & Discussions Seasonal Indices of Arrivals and Prices of Pulses Seasonal indices of arrivals and prices of pulses in Akola market were worked out to indicate the up and down swings that occur with some regularity during different months in a year. Red gram, Green Gram and Black gram were the important pulse crops in Akola Market of Maharashtra. Seasonal indices of arrivals and prices of Red gram in Akola Market Seasonal variations of arrivals and prices of Red gram are shown in Table-1. Table 1: Seasonal indices of arrivals and prices of Red gram in Akola Market Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fig. 1: Seasonal indices of monthly Arrivals and Prices of Red gram in Akola Market 35 5 Arrival Prices Seasonal variation of arrivals and prices of Red gram in Akola market are shown in Table-1 and depicted in Fig-1. Red gram is relatively a long duration crop and its harvesting commences in > RJEBS: Volume: 3, Number: 7, May-214 Page 21

3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC December. Arrivals in APMC market start rising from December with arrivals of new crop and continue rising up to Jan (34.63), where it is at its peak in Akola Market. There onwards, the arrivals start declining continuously and the lowest arrivals (1.12) were observed in the pre-harvest month, namely, November in Akola market. As regards price indices of Red gram, it was highest in the month of July (133.52) and the lowest price indices were observed in the post harvest month, i.e., October (83.3) in Akola market. Declining trend is from July to October and increasing trend is from October to July. Prices of the Red gram crop were slightly fluctuating between seasons over a period of time in the selected market. Seasonal indices of arrivals and prices of Green gram in Akola Market Seasonal variations of arrivals and prices of Green gram in Akola market are shown in Table 2. Table 2: Seasonal indices of monthly arrivals and prices of Green Gram in Akola Market Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fig. 2: Seasonal indices of arrivals and prices of Green Gram in Akola Market Arrival > RJEBS: Volume: 3, Number: 7, May-214 Page 22

4 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Seasonal indices show that maximum arrivals were seen in the month of September (399.1). From there on, the arrivals declined steadily till next March. From March to September, it is again an increasing trend. The period between March and July witnessed minimum arrivals of green gram in the selected market. The maximum prices were obtained in the month of pre-harvest period, i.e., March (11.77) to July (125.41) and minimum prices were obtained in the post-harvest period, with a lowest in the month of September Seasonal indices of arrivals and prices of Black gram in Akola market Seasonal variations of arrivals and prices of Black gram in Akola market are shown in Table-3. Table 3: Seasonal indices of arrivals and prices of Black gram in Akola Market Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fig. 3: Seasonal indices of arrivals & prices of Black gram in Akola Market 35 5 Prices Arrivals > RJEBS: Volume: 3, Number: 7, May-214 Page 23

5 The seasonal variations of arrivals and prices of black gram in Akola market are shown in Table-3 and depicted in Fig- 3. Seasonal indices show that maximum arrivals of black gram were seen in the period of September ending (317.45) to January (14.26). Highest arrivals of black gram were reported in the month of September (317.45). Thereafter, the arrivals steadily dropped. During the period between February and August, the arrivals of black gram were minimum in the selected market. It was lowest in the month of August (24.56). With regard to prices of black gram there were lots of variations. There were two peaks observed in terms of prices, i.e. January (143.55) and July (121.12). Rural Management Model: In the peak season prices of produce dropped down due to flourish arrival. However, for fulfilling the pressing need of money, farmers distress-sell their produce at a lesser price. It affects adversely on their socio economic status. Government is trying to help them to overcome these constraints up to some extent. There is scope for the private sector and public sector organizations need to take initiative by developing win win model of effective price discovery mechanism. This will ensure sustainable development in rural income, such that farmers can sell their produce when prices are scaled up. Thus this rural constraint can be managed by effective rural management model. Conclusion: Study depicted that pulses (red gram, green gram and black gram) are the important commodities in Agricultural Produce Market Committees (APMC) Akola. Arrivals of Red gram in APMC market start rising from December with arrivals of new crop and the lowest arrivals (1.12) were observed in the pre-harvest month, i.e. November. As regards price indices it shows declining trend was from July to October and increasing trend was from October to July. Highest arrivals of black gram were reported in the month of September (317.45). With regard to prices of black gram there were lots of variations. There were two peaks observed in terms of prices, i.e. January (143.55) and July (121.12). Seasonal indices of green gram show that maximum arrivals in the month of September (399.1). While maximum prices were obtained in the month of pre-harvest period, i.e., March (11.77) to July (125.41) and minimum prices were obtained in the post-harvest period, Study concluded that, as arrivals increased, prices decreased and vice versa. To overcome this constraint private sector and public sector organizations need to take initiative by developing lucrative, win win model of price discovery mechanism for sustainable development in rural income levels. References: Singh, R.I., Parasad, V., Singh, R.K. and Dingar, S.M Seasonal price movement and storage cost of wheat and paddy in Uttar Pradesh. Indian J. Agric. Econ., 34(4). Chahal, S. S., Rohit Singla and Poonam Kataria. 4, marketing efficiency and price behaviour of green peas in Punjab. Indian Journal of Argil. Mktg 18(1) Jadhav, S.V. 3. Economic analysis of market arrivals and prices of major pulses in Marathwada. M.Sc. (Agri.) thesis, submitted to Marathwada Agricultural University, Parbhani. Parminder, Singh, Suhag, K.S. and Jain, R.. Analysis of prices and arrivals of rapeseed and mustard in Haryana. Ind. Jour. Agric. Mktg., 14(2). > RJEBS: Volume: 3, Number: 7, May-214 Page 24