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Financial Daily from THE HINDU group of publications Monday, November 12, 2001 |
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AGRI-BUSINESS CORPORATE LETTERS LIFE MARKETS MENTOR NEWS OPINION INFO-TECH CATALYST INVESTMENT WORLD MONEY & BANKING LOGISTICS |
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AP rythu bazaars await revamp
Ch. Prashanth Reddy
HYDERABAD, Nov. 11
RYTHU Bazaars or farmers markets, established in Andhra Pradesh in 1999 for the benefit of both consumers and producers of perishable goods, are stated to be attracting one lakh quintals of vegetables every week.
According to the State Department of Marketing, over 6,000 farmers are availing the benefits of this direct marketing facility. The total turnover of vegetables and other essential commodities is about Rs 7.5 crore per week.
However, according to the studies conducted by various outside agencies, the functioning of 33 out of a total of 97 rythu bazaars across the State was not satisfactory. These bazaars are suffering from various bottlenecks.
While 20 bazaars are getting over 1000 quintals of vegetables per week, 28 are getting between 500 and 1000 quintals. In 16 bazaars, the weekly arrivals are 300-500 quintals per week and in 15 more the arrivals are 200-300 quintals. In 12 bazaars, the ar
rivals are 100-200 quintals and the remaining six are getting less than 100 quintals of vegetables per week.
The lacunae identified include improper location, middlemen menace, non-availability of all varieties of vegetables, improper pricing mechanism, inadequate groundwork at the field level, lack of adequate training to horticulture consultants, inadequate t
ransport arrangements, problems of storage and disposal of unsold produce.
To overcome locational problem, the Marketing Department has suggested that all the rythu bazaars closer to wholesale vegetable markets should be shifted to other places. The new locations should also be in the neighbourhood of consumers and accessible b
y direct transport for the farmers.
To eliminate middlemen, it suggested that adequate participation of farmers in the bazaars should be ensured. Similarly, involvement of self-help groups was sought for sale of vegetables not grown in the district. In all the bazaars, zero energy storage
units with appropriate capacity were suggested to be provided to store unsold stock.
The management of rythu bazaars is entrusted to the Joint Collectors at the district level and they manage through the Estate Officer and horticulture consultant.
Necessary funds required for running these bazaars are provided by the local Agricultural Market Produce Committees which have provided the infrastructure facilities such as shops, drinking water, electricity, parking, storage for unsold produce and weig
hing scales from their own funds.
The criteria for opening of a rythu bazaar are availability of an acre land and willingness of at least 250 vegetable growers to attend the bazaar.
The fixation of vegetables prices is done through a committee of farmers and the Estate Officer. The prices are generally fixed 25 per cent above the wholesale price and 25 per cent below the retail price.
The prices are fixed keeping in view that if they are higher than the local market rates, there is no incentive for the consumers to purchase from the bazaars.
Similarly, there is no incentive for the farmers to sell in the bazaars if the prices are fixed on par with or lower than the wholesale market rates.
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