IMPORTANCE OF AGRICULTURE MARKET YARDS IN HIMACHAL PRADESH

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1 IMPORTANCE OF AGRICULTURE MARKET YARDS IN HIMACHAL PRADESH Sprya Sharma Assistant Architect, School of Architecture, AP Goyal University, Shimla, India ABSTRACT The Market Yard should ensure economic, legal and infrastructural conditions conductive to competitive market and the development of marketing structure to safeguard the interest of producer, seller and consumer. It should be designed so as to make agriculture Marketing a profitable and hygienic activity. Keywords: Agriculture Market Yard, Himachal Pradesh, APMC, Agriculture, APMC-Agriculture Produce Marketing Committee, Producers, Sellers 1. INTRODUCTION There seem to be three ways for a nation to acquire wealth. The first is by war, as the Romans did, in plundering their conquered neighbors. This is robbery. The second by commerce, which is generally cheating. The third by agriculture, the only honest way, wherein man receives a real increase of the seed thrown into the ground, in a kind of continual miracle, wrought by the hand of God in his favor, as a reward for his innocent life and his virtuous industry. -Benjamin Franklin 1.1 AGRICULTURE Agriculture refers to the production of food and goods through farming which refers nearly 10,000 years ago. It has played a key role in the development of human civilization. Farmer s Markets have always existed ever since mankind has farmed the land. Initially people would farm the land simply to provide food for themselves and their families but then people started selling their excess produce at the end of each harvest. This can be considered one of the first ever agriculture markets. 1.2 AGRICULTURE IN INDIA India ranks second worldwide in farm output. Agriculture and allied sectors like forestry and fisheries accounted for 13.7% of the GDP (gross domestic product) in 2013, about 50% of the workforce. India exported $39 billion worth of agricultural products in 2013, making it the seventh largest agricultural exporter worldwide and the sixth largest net exporter. Inspite of huge production of Fruits and vegetables, India s name is not uttered on the world map as a big player in this segment, in 2009 as mere 2 % of the India s total fruit and vegetable production 23

2 is processed which directly hampers the exportability of the produce from India. Because of the lack of proper facility for Grading, Certification and Testing, the produce what we export also remain very vulnerable regarding rejection on the quality front. 1.3 AGRICULTURE IN HIMACHAL PRADESH Agriculture being the main occupation of the people of Himachal Pradesh has an important role in the economy of the state. Agriculture contributes over 45% to the net state domestic product. It is the main source of income and employment in Himachal. Over 93% of the population in Himachal depends directly upon agriculture, which provides direct employment to 71% of its people. Himachal Pradesh has a range of agro climate conditions ranging from sub-tropical region from west southern part of west to dry temperate regions in north-west. This makes Himachal Pradesh ideal for the production of a wide range of horticulture crop and all most all kind of crop except those grown in coastal regions of the country can be grown here. Today Himachal Pradesh has emerged as an important fruit growing state of country. State is also producing flowers, vegetables, mushrooms, honey, tea, medicinal plants. Climates of Himachal Pradesh Zone description Low Hill and Valley areas near the plains Fruit crop Mango, Litchi, Guava, Loquat, Citrus Fig, Ber, Papaya, Early varieties of Grapes, Banana. Mid Hills (Sub Temperate) Stone Fruits (Peach, Plum, Apricot, Almond), Pear, Pomegranate, Pecan nut, Walnut, Kiwi Fruit, Strawberry 24

3 High Hills and Valleys in the interiors (Temperate) Cold and Dry Zone (Dry Temperate) Apple, Pear (Soft), Cherry, Almond, Walnut, Chestnut, Hazelnut, Strawberry. Apples,Drying type of Apricot, Almond, Chilgoza, Walnut,, Grapes FRUITS Himachal has acquired the status of fruit bowl of India. It is providing excellent quality of temperate fruits like apple, pear, stone fruits, nuts, etc and subtropical fruits like mango, litchi, guava; citrus, etc., new fruit crops like kiwi fruit, strawberry, olive, hazelnut, etc. introduced in recent years hold great promise for increasing the production of these fruits in future. The total area under fruits, which was only 792 hectares in 1950, has increased to 2.23 lakh hectares now. Similarly, the fruit production has also increased from 1200 MT in 1950 to 6.95 lakh tones in 2007.Horticulture generates gross domestic income of about Rs crore annually. DISTRICT WISE PRODUCTION OF FRUIT SHIMLA 52% KULLU 26% KINNAUR 5% KANGRA 6% OTHER 11% DISTRICT WISE AREA UNDER FRUIT CROPS SHIMLA 20% KULLU 12% KINNAUR 4% KANGRA 20% MANDI 15% Fig. 1 Fig. 2 APPLE ` Himachal Pradesh is one of biggest producers of apple in the country. Apple crop is mainly produced in Shimla, Kullu, Kinnaur and Solan districts of Himachal Pradesh. The Apple has brought prosperity to the State by contributing about 987 Crore in Gross Domestic Product, that is why Himachal Pradesh is known as "Apple State of India". Apple is so far the most important fruit crop of Himachal Pradesh which constitutes 47% of the total area under fruit crops and about 83% of the total fruit production. PEAR Himachal Pradesh has taken a lead in India, having a pear cultivated area of about 7,470 hectare. Which is next to apple and plum among temperate fruits with total production is around 10,000 tones 25

4 CHERRY Cherry, is a delicious fruit, rich in protein, sugar and minerals and has more calorific value than apple. With over 2,000 hectares of land under cherry cultivation and production of 438 tonne in 2008, Himachal Pradesh that has emerged as the second largest cherry producing state in the country after Jammu and Kashmir VEGETABLES Himachal Pradesh has adopted a diversification approach that demands for a focus on the production of off-season vegetables that include potato, ginger, soyabean, oilseeds, and pulses. At present, about 41,500 hectare area constitutes vegetable production and the production level of those vegetables is 7.85 lakh tonne MEDICINAL PLANTS Himachal is going in for massive plantation of indigenous species, especially medicinal plants, to not just boost its depleting green cover but also transform the hill state into a herbal one. Some famous medicinal plants are Amla, ritha, bheda, harar, aloe vera etc. 1.4 AGRICULTURE MARKETING The mechanics of marketing includes harvesting, grading and sorting of crops and packing, transport, storage, processing, distribution and selling of products. Various activities should be provided as part of the market in an organized and systematic manner to ensure that the flow of produce is smooth and facilities are utilized in most efficient way. Due to lack of efficient agriculture markets in India up to 40% of the total agriculture is being sold outside through unrecognized and unregulated channels OVERVIEW OF INDIAN AGRICULTURE MARKET HISTORY In several agricultural sectors, India is the world s leading or one of the largest producers. According to the study in 2007, the total turnover of Indian food market is approximately Rs crores (US $ 69.4 billion), out of which, the share of value-added food products is around Rs crores (US $ 22.2 billion) EXPORTS Drop in share of agriculture in total export is because agricultural products, such as jute and cotton, which were exported in the raw form in the 1950s, have been exported as cotton yarn,. Only 2% of total agriculture products in India are processed though the demand of processed goods is increasing globally. 26

5 EXPORT. Fig. 3 CHART SHOWING DROP IN SHARE OF AGRICULTURE IN TOTAL FUTURE FORECASTS Recent reports states that agriculture plays an important, though declining role in Indian economy. Its contribution in overall GDP fell from 30 % in the early nineties, to below 17.5% in INDIAN AGRICULTURE MARKETS ARE CHARACTERIZED BY Lack of cleaning and grading before sale. Lack of standard weights and packages. Absence of storage facility supported by financial backup forcing immediate sale. Lack of transparent transactional methods TO AVOID THESE DRAWBACKS WE NEED Introducing modern and efficient marketing practices. Market has not remained mere place for marketing but also function as place for receiving of information about new technologies and modern methods of agriculture Setting up common modern and efficient post harvest infrastructure for handelin, cleaning, grading, packing and cold storage. Establishing practices such as electronic auctioning, market intelligence system etc. Improving hygienic and sanitary condition at market yard Streamlining traffic to overcome congestion. Providing rest and recreational facilities for market functionaries such as traders workers like house, hotel, shopping center. Transparency in marketing activity by adoption of electronic auctioning. 1.5 APMC The H.P.State Agricultural marketing Board has been established under the H.P. Agricultural Produce Marketing act, 1969 in Under this State has been divided into different Agricultural Produce marketing committees act was formulated with a aim to improve the condition of agriculture marketing in state. 27

6 1.5.1 MAIN FEATUREs OF HIMACHAL PRADESH MARKETING BOARD HPMB is set up with the twin objective of development of marketing infrastructure, setting up of market/ sub market yards and regulation of sale- purchase of agricultural produce FOR FUTURE PROJECTS Himachal Pradesh marketing board is entrusted with over all supervision and control of all the existing market committees, development of new market, improvement in market services and to provide additional facilities like grading and standardization. Introduction of new modern concepts in marketing. Application of post harvest quality control To reduce the gap between technology available and technology applied Reduce wastage and harvest losses. As per HPMB rules arthis,commission agents in APMC buy agriculture produce from producers and they have to pay one percent of it to APMC. This is called the committee fund which is spent on various activities like maintaining the market, betterment o agriculture produce etc AGRICULTURE PRODUCE MARKETING COMMITTEE: Main objective of the marketing committee is regulation of marketing of fruits and vegetables. The purpose of regulation is to ensure orderly marketing to safe guard the interest of producers, sellers and consumers by eliminating various mal-practices like under weight, short payment, delayed payment, unauthorized deductions and indulgence of too many intermediaries. As per the himachal pradesh agricultural and horticultural produce marketing (development and regulation) act, Definition of Agricultural produce means all produce and commodities, whether processed or unprocessed, of agriculture, horticulture, apiculture, sericulture, livestock and products of live stock, Fleeces (raw wool) and skins of animals, forest produce and fisheries.it also includes a mixture of two or more than two such products. Marketing means all activities involved in the flow of agricultural produce from the production points commencing from the stage of harvest till these reach the ultimate consumers, viz, grading, processing, storage, transport, channels of distribution and all other functions involved in the process. Committee is set up to take control over market ensuring benefits of producer,buyer nad consumer.committee consists of official and non officials MARKET YARD As per definition 28

7 Market yard in relation to a market area means a specified place and includes any enclosures, buildings or locality declared as such in any market area by the State Government. Its main objective is to provide marketing facilities like- auction platform, shops, godowns and other basic amenities to the users. HPMB has set up 45 Principal market yards/ sub market yards in the State. The market yards inspired the confidence of the sellers and buyers and the volume of trade of fruits and vegetables has doubled over the last 5-6 years. Inspite of fact that a no of markets have been established, still upto 40 percent of the total agriculture produce is sold outside through unrecognized and unregulated channels where exploitation of framers is rampant. 1.6 Design of the Agriculture Market Yard should respond to the following Objectives AIM The aim is to ensure economic, legal and infrastructural conditions conductive to competitive market and the development of marketing structure to safeguard the interest of producer, seller and consumer Fig. 4 Typical Plan of the Market Yard OBJECTIVES Following objectives should be considered while designing or achieving the aim 1. By facilitating smooth and safe traffic flow by Segregation Queuing and holding areas Sizing of road 2. By ensuring efficient and unhindered movement of men and material by Elimination of cross movement Protected pedestrian area Orientation 29

8 3. By providing a secure working environment free of unauthorized Activities, by safeguard the interest of producer, buyer and consumer Identify security zones Locate check points 4. By providing a comfortable working environment conforming to the best Health and safety standards, by Good Ventilation Good Lighting Good Sanitation Good Waste material disposal method 5. by optimizing construction costs and reduce construction time, by Design and selection of structural system 6. By incorporating flexibility, upgrade ability and expandability into design, by Material specifications Modular space planning Utility system design 7. By creating Zero waste facility, the following are proposed. Solid Waste Power Generation Direct benefit composting sell back to farmer. Complete feedback cycle. Waste Water Recycling and reuse Flushing, Gardening and cooling water for power plant. 8. By providing market intelligence and market information services thus providing transparency. 9. By providing pre-cooling, cold stores, grading etc facility hence reducing post harvest losses. 10. By providing infrastructure facility for growing need of traders and commissions agents at the market complex so that the producers need not to send their apples to distant market such as Azadpur Mandi at Delhi. 1.7 IMPORTANCE OF MARKETING BOARD IMPORTANCE IN PRESENT DAY CONTEXT GENERAL BENEFITS Brings greater transparency in transaction-electronic auction Reduce quality loss-use of modern technology. Enables faster handling of greater volumes-mechanized handling. Adds value to fetch better-cleaning, grading, packing etc. Use of common services reduces post harvest losses-storage facility such as shed, cold store. Provide market intelligence - agri information center Provide public convenience for farmers, traders and other functionaries-bank, rest rooms, hostel etc Provide modern post harvest and marketing infrastructures for export of apples and other produce from state. 30

9 1.7.2 SOCIO-ECONOMIC BENEFITS Project help producers get fair prices for their produce to realize higher income. Introduce modern marketing infrastructure and modern marketing practice for the first time in state. Makes the marketing system in the state more efficient and produce from H.P. more competitive. Farmers and traders get access to common post harvest service facilities, on rental basis, in the market yard without having to invest in cost infrastructure WHY HIMACHAL Due to lack of marketing committees and infrastructure facilities for traders and commission agents in state the producers who bring apples during peak harvest season to the market yard has to wait for days to sell his produce creating loss of time, loss of money and quality loss. The producers have to send their apples to distant market such as Azadpur Mandi at Delhi. This involves freight costs; uncertainties in terms of price realized and delayed sale receipts. One of the Asia's largest fruit processing unit is located in Parwanoo. Himachal has a large number of small and medium scale industries. Sitting agriculture produce market yard there will also help processing units and people will be influenced to set more processing units 1.8 The Market yard should have AUCTION HALLS Halls are to be provided at highway and bridge level as most goods will first go to auction halls. There will be receiving and distributing area.it is also done in halls. LARGE HALLS FOR GRADING AND PACKING From auction and display area, goods are brought to the grading and packing zone. These are connected to freight lift where by mechanical means goods will be transported to dispatch areas. TRANSPORTATION CORRIDOR It connects all areas of various activities within the building horizontally and vertically. COMMERCIAL COMPLEX -Offices for traders, marketing board office, bank, atm, dispensary, conference room, cyber cafe, canteen etc. GODOWNS WHOLESALE MARKET OF GRAINS AND VEGETABLES COLD STORAGE UNITS Goods are stored here if they are unsold and have to remain within the auction premises for more than 12 hours. LOADING AND UNLOADING AREAS PARKING SPACE For containers, trucks, small vehicles, etc. TRADITIONAL SHOP FOR LOCAL MARKET 31

10 OTHER SERVICES AREAS PETROLPUMP AGROMALL LIST OF FIGURES: Fig1- District wise production of Fruit Fig2-District wise area under fruit Prodction Fig3- Chart showing drop in share of agriculture in total export. Fig4- typical plan of a market yard REFERENCES Interviews and meeting at Agriculture Marketing Board Office Shimla, Material was provided by them WHOLESALE MARKETS: PLANNING AND DESIGN MANUAL, ISSUE 90 By J. D. Tracey-White 32