CHAPTER NO.1
INTRODUCTION Agriculture is the single largest sector of Pakistan¶s economy. It is a dominant driving force for growth and the main source of livelihood for 62% of the country¶s population. It accounts for 21% of the Gross Domestic Product (GDP) and employs 45% of the total work force. As such agriculture is the centre of the national economic policies and has been designed by the government as the engine of national economic growth and poverty reduction. The performance of agriculture sector has been weaker than target during 2009 as against the target of 3.8% and last year¶s performance of 2%. Agriculture this year is estimated to grow by 4% on account of bumper wheat, rice and maize crops estimated as 23.42, 6.9 and 4.0 million tones respectively. Major crops accounting for 32.8% of agriculture added registered stellar growth of 7.3% against 7.7% last year (GOP, 2010). Traditionally, the government establishes wholesale markets. There are stereotype designs for the wholesale market. Commission agents are allotted/sold space for shop, which are constructed at their own on almost standard pattern. No space is specifically allotted to sub wholesale or retail activity, which seems to an essential component of sale and purchase inside the wholesale markets (FAO, 1995). In Punjab there are 152 grain markets, 135 market committees. These wholesale grain markets are working satisfactorily, primarily for the benefit of growers. More grain markets are still needed to provide farmers with effective and p rofitable marketing outlets for their produce. The private sector plays an important role in the management, operation and control of wholesale markets. The wholesale who lesale marketing system in the private sector is comprised of number of institutions. However, for the growers, ³Commission Agent´ is the major institution because he is the person who is in direct contact with growers at market place. There are many instances in which commission agents have been reported to be charging higher marketing charges than is allowed under the law. These mainly include Chung, thalla, high rates of commission, high interest on advances etc. Although the government has established a system for support prices of selected agricultural crops but that too is manipulated by arhtis (Commission Agent) who are 1
involved in the procurement of major food crops from farmers and then selling the same to the procuring agencies. The situation is further aggravated by congested and poorly organized market places leading to higher marketing costs due to long waiting and delays (Mahmood, A. et al, 2002). Market committees are the statutory bodies, set-up by the government for day-to-day management of wholesale markets. A market committee is constituted by member drawn from amongst farmers (always in leading majority), traders, market operators, consumers and government nominees. The committee members are appointed by nomination while the chairman and vice-chairman are appointed through election from amongst the members. The Agricultural Produce Market Act; 1939 is the basic document that grants authority to the market committees to control and regulate various operations in the wholesale market. This act has been amended from time to time by the Provincial Governments to suit to their respective socio-economic and political conditions (GOP, 1988). It has been reported that wholesale marketing system of agricultural produce in general and horticultural produce in particular, is often inadequate in Pakistan. The existing system neither maximizes benefits to producers nor to consumers. Corrupt market intermediaries appear to fleece upon the small incomes of both the farmers and the consumers. It occurs due to the existence of the number of market imperfections viz., poor market management, poor market operation, poor market regulation etc. The wholesale markets are usually congested due to unsuitable location or an inappropriate mixture of wholesale and retail functions or as a result of mismanagement. The problem is further compounded by poor market organization as a result of defective planning, over-crowding, traffic jams, poor cleanliness and poor hygiene, lack of discipline, encroachments, unfair trade practices, poor and ineffective legislation etc. The reality of wholesale markets in country is the most of the basic principles of efficient wholesale marketing are not adhered to delays (Mahmood, A. et al, 2002).
2
Table 1.1: Area and Production of Major Crops (Area ¶000¶ hectares) (Production µ000¶ tones)
Targets the
Crops
for
Achievements 2010-11
2009-10
2008-09
Year 2010-11 Area
Production
Area
Production
Area
Production
Area
Production
Wheat
9045.0
25000.0
8805.0
«
9131.6
23310.8
9046.0
24032.9
Rice
2710.0
6176.1
2365.3
4823.3
2883.1
6882.7
2962.6
6952.0
Maize
1064.4
3536.4
938.6
3341.2
935.1
3261.5
1052.1
3593.0
Gram
1122.2
623.3
1068.3
«
1066.9
561.5
1080.6
740.5
Bajra
«
«
548.3
346.0
475.7
293.0
469.7
296.4
Jowar
«
«
221.1
139.1
248.4
154.1
262.7
164.5
Barley
«
«
82.6
«
71.4
86.0
81.5
Mung
228.83
159.36
137.2
77.1
183.3
118.7
219.7
157.4
Mash
30.14
15.10
23.7
11.2
24.1
10.7
27.6
13.7
Masoor
29.80
14.10
24.0
«
24.0
10.9
30.9
14.4
Tobacco
«
«
«
«
55.8
119.3
49.7
105.0
R & M Seed**
«
«
210.3
«
190.4
162.2
244.9
199.0
Sesamum
«
«
77.4
31.3
79.9
33.4
90.6
41.0
84.1
= Cotton production is in thousand bales of 375 lbs. each. ** = Including Canola. P= Provisional Provisional « = Not availa ble. Sources: Targets I) Federal Committee on Agriculture. 2) Planning & Development Division Achievements: Provincial Agriculture Departments
3
The present study has been planned with the purpose to seek information on the working of wholesale grain markets in Punjab in the context of these allegations. allegat ions. In particular the research seeks to explain the status of Faisalabad wholesale grain market. The specific managerial and operational aspects, physical facilities in the market, trade practices, and performance of public and private sector institutions shall thoroughly be examined and the factors influencing efficiency of the wholesale market investigated. The study is planned with the t he following objectives:
OBJECTIVES 1. To study the operational performance of Faisalabad wholesale grain market. 2. To identify the major constraints in the wholesale market management, operation and planning. 3. To find out marketing margins of various market functionaries in the wholesale marketing of major items. 4. To suggest measure for improving the working of wholesale grain markets in Punjab in general ant that of o f Faisalabad wholesale grain market in particular.
4
CHAPTER NO. 2
REVIEW OF LITERATURE Review of literature means to ³look again´ (re-view) at the literature in the related areas (Leady, 1989). It highlights the findings of related studies and eliminates the possibilities of unnecessary duplication of efforts. Mushtaq (1971), in case study entitled ³An Economic Appraisal of Institutional Frame work in the Marketing of Agricultural Commodities´ concluded that marketing margin was an increasing function of a number of intermediaries. This should apparently suggest that a decrease in marketing margin could be achieved by eliminating some of the intermediaries from the existing marketing channels. But after the quantification of the various services rendered by all the intermediaries, it became clear that except for the village dealer, the profit of all other intermediaries was justifiable under the present marketing conditions. Siddiqi (1979) conducted a study on Marketing of Agricultural products in Sindh in order to assess the complexity of marketing organizations. The study examined the infrastructure of marketing system, estimated production cost and marketing margins, analyzed price trends and computed per unit marketing cost and the break down of consumer spreading on selected fruits, vegetables and pulses. Nigam (2000) conducted a study on the performance of Agricultural wholesale market in India. He observed that most of the agricultural commodities markets operate under the normal forces of demand and supply and disposal of produce in the wholesale market were through open auction. While studying the problems, it was found that the shortage of unloading and parking areas, weighing facilities, storage areas, places to stay overnight due to marketing delays were major problems. Jatiyanuvat (2000) studied the agricultural wholesale marketing system in Thailand. He found that middlemen mainly determined the marketing systems of agricultural products in Thailand. He observed that there was a tendency that farmer could not negotiate favorable price because the products of good and bad qualities were mixed. Auction system with product grading could solve this problem. He observed that the cooperatives hardly played and role. 5
CHAPTER NO. 3
METHODOLOGY The present study should have been conducted at Punjab level. Keeping in view the limitation of a student¶s researcher in terms of finances and time, the scope of the present study was, however, confined to Faisalabad district. The research was undertaken on the following aspects of wholesale grain market. 1. Wholesale Market Management. 2. Wholesale Market operations and Regulations. 3. Wholesale Market Planning.
A. WHOLESALE MARKET MANAGEMENT y
MANAGEMENT
The managerial control of wholesale markets normally vests in the hands of the market committee (members of which are elected from amongst the growers), market intermediaries and others nominated by the government. The present research investigated managerial aspects of the wholesale market. The research looked at various aspects such as constitution and composition of market committees and the role of the market committee in discharging various functions. The limitations faced by the market commi co mmittee ttee in discharging the assigned role were also noted.
B. WHOLESALE MARKET OPERATIONS AND REGULATIONS y
MARKET OPERATION
Different activities are being carried out in the wholesale grain markets. As such, buying, selling and handling of produce, brought by the producers in the market are the major operations carried out in the market. Data on various market operations viz.; transaction methods, rentals, fees and charges, produce handling procedures, market information etc, is collected by interviewing a selected number of the gro wers, commission commission agents, pharias and retailers.
6
y
MARKET REGULATIONS
Wholesale markets are regulated under agriculture produce market ordinance, 1978 & general rules, 1979. Several amendments in the ordinance (rule) have been made overtime. The research investigated the relevance of various provisions of the ordinance. Under the prevailing socio-economics conditions of the market.
C. WHOLESALE MARKET PLANNING The spectacular growth of population in Faisalabad District has generated the need for proper planning of wholesale markets. This aspect has received paramount importance in view of expansion of the city and migration of population to the district from rural areas. The research sought to investigate various steps for proper planning. Various managerial, operational and planning aspects of market were studied by collecting primary data.
SELECTION OF RESEARCH AREA AND RESPONDENTS The research was conducted in the wholesale grain market of Faisalabad, which is a major international grain market.
SELECTION OF RESPONDENTS Five growers of major grains producer wheat, rice maize, Bajra and gram, were selected from the district at random. Five commission agents and pharias operating within the premises of Faisalabad grain market were also taken at random. Five retailers purchasing grains. Three market committee employees i.e. Secretary Market committee, inspector and sub-inspector were interviewed for the collection of necessary data on management, operation, control and regulation of the wholesale grain market.
COLLECTION OF DATA Separate questionnaires were developed for each group i.e. producer, commission agent, pharia, retailer and market committee employees. The questionnaires were filled in by the direct interview method with respondents.
7
DATA ANALYSIS Data collected were edited, tabulated and analyzed by employing appropriate statistical tools and the share of producer and different market intermediaries in the consumer rupee was calculated. In addition, marketing margins of commission agents, pharias and retailers were worked out by employing relevant re levant statistical tools. A. ARITHMETIC MEAN
Average= X =
X
/n
Where: X = value of o f the variable N = Number of observations X = Total sum of variable B. DETERMINATION OF MARKETING MARGINS OF MIDDLEMEN
Marketing margins of a middleman involved in the marketing of grains is the difference between total payments (costs + purchase price) made by a marketing middleman and prices received by him (sale price of grains). gra ins). This was calculated by using these t hese methods. Absolute margin of a middleman (Am) Am = Pr ± (P p +cm) Percentage margin of a middleman (Pm) Pm = {Pr ± (P p + cm) x 100} / Pr Am = absolute margin P p = purchase price of a middleman Pr = retail price of a middleman Cm = total cost of a middleman 8
C. DETERMINATION OF TOTAL COST OF MARKETING
Total cost incurred on marketing by producer and market functionaries involved in sale and purchase of grains till it reaches to ultimate consumers were computed by using following simple expressions: Ct = c1 + c2 + c3 +«+cn Ct = total cost C1 = cost of first item C2 = cost of second item « «
«
«
« «
«
«
« «
«
«
Cn = cost of nth item D. PRODUCER¶S SHARE IN CONSUMER¶S PRICE
It is the price received by producer expressed as percentage of the retail price (i.e. the price paid by the co nsumer). It was calculated by using the following formula: Ps = Pf / Pr x 100 Where Ps = producer¶s share in consumer¶s rupee Pf = producer¶s price Pr = retail price
9
LIMITATIONS Following limitations were encountered during the co urse of research study: 1. The respondents usually hesitated in providing the needed information and reserved especially while answering questions about their incomes, profits and about their actual volume of business. They concealed information due to various fears, regarding increased taxation on income and/or government measures to be taken for an effective tax recovery system. 2. Major restrictions encountered in data collection were lack of written records with almost all market functionaries involved in marketing process. There was a general tendency to inflate expenditure and deflate incomes by the market functionaries. However, every possible effort was made through cross-questioning in order to minimize the extent of errors. 3. Commission agents were reluctant to tell their accounts, although they maintained it. Pharia¶s and retailers did not keep record about their incomes and expenditure. The interviewer had to relay upon t heir verbal statements and personal assessment. An utmost effort was made to gain good degree of confidence and to elicit requested information during the process of data collection by introducing the respondents that the researcher was a university student and not a representative of any government department. d epartment.
10
Chapter No. 4
RESULTS AND DISCUSSION This chapter presents findings of research on the working of ³wholesale grain market Faisalabad´. The managerial operational & planning aspects of the market are thoroughly thrashed & loopholes in this regard outlined.
MARKET ORGANIZATION The organization of wholesale market largely depends on local socio-economic conditions and political situation of a given region. Market committee Faisalabad purchased the land for the establishment of new wholesale grain market in 1979-80. Commission agents were allotted space on property right basis for the construction of shops to build on standard design. The ownership of auction platforms, parking places etc. was, however, vested eighth the government.
BRIEF PROFILE NEW GRAIN MARKET FAISALABAD A new grain market was established on Dajkot road near at the end of Jhang bazaar, on an area of 15 Acer, 1 Kanal and 14 Marla on the state land by the market committee Faisalabad, where plots were allotted through open auction to the commission agents on property right basis. Table 4.1: Salient Feature of New Grain Market Faisalabad.
Market
New
market
Location
grainDajkot
Regulated/non- Operational
Date
regulated
operation(year) authority
road Regulated
Faisalabad
(public)
area 15
Acre,
Kanal, Marla
1 14
of Managing
1980
Market committee Faisalabad
11
PHYSICAL FACILITIES IN THE MARKET New grain market has been established with the financial assistance of market committee Faisalabad. The construction work of the market started in 1979. The work was completed within one and half year. Physical facilities in the market are very good there is a proper approach road in the market, Mosque and Banks in the market. Table 4.2: Provision of Major Physical Facilities in the Market .
Sr. #
Infrastructure
Number
1.
Shops
531
2.
Covered auction platforms
Nil
3.
Open auction platforms
283
4.
Offices
01
5.
Roads
05
6.
Truck stand
Nil
7.
Cycle stand
02
8.
Animal shed
Nil
9.
Guest-house
Nil
10.
Dispensary
Nil
11.
Mosque
02
12.
Weighing bridge
Nil
13.
Water tank
01
14.
Toilets
04
15.
Bank
05
16.
Post office
Nil
17.
Approach roads
03
12
AREA / SPACE ALLOTTED TO VARIOUS MARKET FUNCTIONARIES IN THE MARKET Commission agents, pharias and retailers were the main categories of middlemen operating in the market. The data on area allotted to these market functionaries by the market committee are presented in table 4.3. Table 4.3: Area / Space Allotted to Various Market Functionaries.
Categories
of
market Business place in the market
Business points allotted
functionaries Commission Commission agents
Shops
248
Retailers
Shops
78
Pharias
Shops
22
MARKET FUNCTIONARIES 1. ARHTIS / COMMISSION AGENTS
Commission agents are those individuals who sell products through auction in the market by charging their commission. The commission agents are licensed under the Punjab Agriculture Produce Markets Ordinance, 1978 and have their own business place in the market. 2. PHARIAS
The pharias (sub wholesalers) purchased commodities from commission agents in the market through open auction & subsequently sold that to retailers generally. Pharias have no business place in the market; they are station on, the roadside & in front of the covered auction platforms. The commission agents charge rent from the pharias for providing space to them. 3. RETAILERS
13
The retailers also operate within the wholesale market. They also purchased from wholesaler and than sell to ultimate consumer. Most of the operator enjoyed political backing for undertaking their business in the market.
MARKET MANAGEMENT The management of the market is the sole responsibility of the market committee. The government by its notification establishes a market committee for every notified area. Market committees all over the country were dissolved and the management of the wholesale markets placed under the co ntrol of administrators appointed by government.
CONSTITUTION OF MARKET COMMITTEE According to the Punjab Agricultural produce markets ordinance 1978, Faisalabad elected market committee consist of seventeen members as determined normally under law. Out of 17 members one member is appointed by government from amongst the employees of the Agricultural Department, Government of Punjab. Table 4.4: Constitution of the Market Committee.
Members
Number
Growers
09
Traders / commission commission agents
05
Market operators
01
Consumer
01
Govt. Nominee
01
Total
17
The remaining members were appointed by the Govt. of a panel of name recommended by the Zila Council, equal to twice the number of vacancies in a manner provided under the act.
SALIENT FEATURES OF MARKET MANAGEMENT
14
Respondents were inquired about the performance of erstwhile elected management structure i.e. the market committee, 13.33% of the respondents opined that constitution of market committee was non-transparent while 13.33% viewed that duties and function of the market committee were not clearly understandable to them. Table 4.5: Salient Features of Market Committees (Total no. of respondents 15).
Sr. #
Statement
Strongly
Agree
Disagree
Not sure
02
02
Agree Constitution of market 1.
Committee was transparent And non-political
10
01
(66.67%)
(6.67%)
06
05
(13.33%) (13.33%)
The function of the market 2.
Committee were clearly Understandable to the
(40%)
02
02
(33.33%) (13.33%) (13.33%)
Different market functionaries Market committee discharge 3.
There functions to the Satisfaction of market
04
05
04
02
(26.67%) (33.33%) (26.67%) (13.33%)
Functionaries The department of E&M 4.
Regularly monitored the Activities of market
10
02
-
(66.67%) (13.33%)
03 (20%)
committee Appropriate institutional link 5.
Existed b/w relevant nation Building departments
06
05
(40%)
(33.33)
02
02
(13.33%) (13.33%)
DUTIES OF MARKET COMMITTEE The market committees performed various viz. use of market facilities, good conduct of market parties, adjudication of disputes arising out of market transaction, collection of 15
charges and fees maintenance of the market premises and related facilities collection and dissemination of market information etc. Almost 33.33% of the respondents viewed that rules and the market committee did not implement regulation. Table 4.6: Duties of Market Committee (Total no. of respondents 15).
Sr. # Major function/ duties of market Committee under the Act. 1. Enforcement of provisions of the Act and the rule and laws made
Progress of performance Yes 08
No
Not sure 05
(53.33%) (33.33%)
01 (6.67%)
There under the notifi not ified ed market Area 2. Licensing of various market function, And to renew, suspend or cancel 3. Market development
11
03
01
(73.33%)
(20%)
(6.67%)
06
04
05
(40%) 4. Collection of market fee & other charges
11
(26.67%) (33.33%) 02
02
(73.33%) (13.33%) (13.33%)
MARKET OPERATION Different types of business activities were undertaken within the market. Amongst others, major business activities include selling, buying, and ha ndling of the farm produce. The importance aspects of market o perations are discussed below. 1. MEANS OF TRANSPORTATION FOR BRINGING PRODUCE IN THE MARKET
A good road system and means of transpiration are the basic prerequisites for an efficient marketing system. The growers for bringing their produce in the market adopted different means of transportation. About 70% of growers were using trucks, 15% Mazda van, 5% pickups, 5% trolley and remaining 5% used various other o ther miscellaneous means of transport (rehra, cartload).
16
Table 4.7: Different Means of Transporting Produce in the Market.
Sr. no.
Mode of transportation
Growers relying on transport (percent)
1.
Truck
70
2.
Mazda van
15
3.
Pickup
5
4.
Trolley
5
5.
Miscellaneous (Cart / Rehra, etc.)
5
2. SALIENT FEATURES OF MARKET OPERATIONS
The produce is brought into the market at the risk of sellers and remains as such till it is sold. Though under the statutory provisions, market management and the commission agents are obliged to arrange for proper space, shelter and safety of the produce.
Table 4.8: Market operation.
Sr.# Statement
Strongly
Agree
Disagree
Not sure
03
02
(20%)
(13.33%)
04
03
Agree 1.
Market committee, ensures Fair trade practices in the Market
2.
02
(13.33%) (53.33%)
Trading hour in the market Are strictly followed followed by
-
Various market functionaries 3.
4.
08
Damages or loss of produce
08
(53.33%) (26.67%)
(20%)
08
06
01
(53.33%)
(40%)
(6.67%)
-
07
04
02
02
Sufficient market information Is provided to all the market
17
Functionaries by the market
(46.67%) (26.67%) (13.33%) (13.33%)
committee
DATA ON EXPENDITURE BY EACH OF THE VARIOUS MARKET FUNCTIONARIES 1. GROWER¶S EXPENDITURE
i.
Transportation,
packing
and
loading. ii.
iii.
Other deduction.
iv.
Labor charges.
Commission.
2. COMMISSION AGENT¶S EXPENDITURE
i.
Shop rent
v.
ii.
Electricity, telephone.
vi.
Management charges. Taxes.
iii.
Entertainment.
vii.
Bank interest if any.
iv.
Water charges.
viii.
Miscellaneous.
3. PHARIA¶S EXPENDITURE
i.
Adda rent.
ii.
Labor charges.
iii.
Carriage
iv.
&
v. other
handling
vi.
Market association fee. Wastage. Munshiana.
charges.
4. RETAILER¶S / BUYERS EXPENDITURE (IN GRAIN MARKET)
i.
Cleaning.
v.
ii.
Washing.
vi.
iii.
Grading.
vii.
iv.
Labor.
Transportation. Electricity. Loss in wastage.
18
MARKET INSPECTION Market inspection is needed to ensure compliance with sanitary standards and regulation, weights and measures, grades and standards, and where appropriate price control. This is usually done through visits by sub-inspectors, and whom action is supplemented by inspector of market administration thus to make sure that market regulation and fair-trading practices are observed.
MARKET REGULATION Almost 26.67% of the market functionaries recorded that market committee employees over charged the licensee fee and 53.33% did not agree with the statement that satisfactory inspection and quality control measure. About 16.7% respondents opined that market committee did not have suitable arrangement for the disposal of solid waste. And 33.33% of the unauthorized produce and encroachments. Table 4.9: Market Regulation.
Sr.#
Statement
Strongly
Agree
Disagree
Not sure
agree 1.
2.
3.
Charging of license fee
Satisfactory arrangement
Disposal of solid waste
07
04
02
02
(46.67%)
(26.67%)
(13.3%)
(13.33%)
04
08
01
02
(26.67%)
(53.33%)
(6.67%)
(13.33%)
08
07 (46.67%)
-
-
07
04
04
-
(46.67%)
(26.67%)
(26.67%)
04
05
02
03
(26.67%)
(33.33%)
(13.33%)
(2%)
(53.33%) 4.
5.
Kind of encroachments
Unauthorized sale of produce
19
MARKET MARGIN A marketing margin is the percentage of the final weighted average selling price taken by each stage of the marketing chain. The margin must cover the costs involved in transferring produce from one stage st age to the next and provide a reasonable return to those doing the marketing. In this if a farmer receive 2250 rupee per quintal of wheat, then the artist get his 37.75 rupee commission, the processor gain 72.8 rupees and retailer get his profit 142 rupees and now the gross market margin is 250 rupees and net market margin is 214.8 rupees and the end consumer price is 2500 rupees of wheat / Q. in table 4.10. Table 4.10: Marketing Cost, Margin and Profit of wheat
Reno. 1. 2. 3. 4.
Item Selling price of farmer/ purchase of wholesaler Commission Commission paid by farmer @ rs.1.5% Farmer net price Processor (cost)
Rs./Q 2250 37.75 2216.25
i. ii. iii. iv. 5. 6. 7. 8. i. ii. iii. iv. v. 9. 10. 11.
Wholesale price Broker share Palledare @ 1.20% Total cost of wholesaler Wholesaler sale price/ retailer purchase price Gross margin of wholesaler Net margin of wholesaler Retailer (cost) Retailer purchase price Transportation cost Market fee / Q Misc. Total cost of retailer Retailer sale price / consumer purchase price Gross margin of retailer Net margin of retailer
2250 0.20 27 2277.20 2350 100 72.8 2350 02 01 05 2358 2500 150 142
20
_ Gross market margin in the supply chain = 250 0 2250 = 250 Net market margin = 214.8 %age share of the farmer in the consumer price = farmer net price/consumer price X 100 = 250/2500 X 100 = 90% %age share of the who wholesaler lesaler in the consumer price = profit of wholesaler/consumer price X 100 = 72.8/2500 X 100 = 2.92% %age share of the retail in the co nsumer price = profit of retailer/consumer price X 100 = 142/2500 X 100 = 5.68%
21
Chapter no. 5
SUMMARY, CONCLUSION & SUGGESTIONS This chapter seeks to summarize important findings of research on the working of grain market Faisalabad. A comprehensive study on the subject may be conducted at the Punjab level so that market imperfections are thoroughly highlighted and understood at higher level. The present research has, however, identified some of the weaknesses in the managerial, operation and planning aspects of market.
SUMMARY OF MAIN FINDINGS 1. A new market was established with the financial assistance of the market committee Faisalabad, where the shops are allotted to commission agents through auction. The physical infrastructure including street light, covered auction platform has not been provided but some other facilities like approach road, roads with in the market, water supply, telephone, shops and light have been provided in the market. 2. At present, about 248 commission agents and 78 retailers do their businesses in the market. 3. About 70% of the respondents were happy with the physical facilities available in the market. 4. Market committee was setup in the provinces for managing day-to-day operation of the regulated wholesale market. 5. The response of respondents about constitution of the elected market committee and their role in performing various duties assigned to them was very encouraging. About 30% of the respondents opined that the constitution of the market committee was non-transparent. Some of the respondents believed that the market committee, did not discharge their functions properly according to law. 6. Market committee performed many functions in the wholesale market starting from the provision of basic infrastructure to the collection of market fee and other charges. 7. Different means of communication were adopted by the growers for bringing the produce in the market. The produce from far flung areas brought by Trucks & Mazda vans. Etc. 22
8. Open auction is the prefer mod of sale but sale by negotiations through the commission agents (under-cover bidding) was common. 9. Commission agents and other market operators are not obliged to charge remuneration higher than prescribed limits. Nevertheless commission agents in the market charged higher rates of o f commission. commission. 10. The produce is brought to the market at the risk of sellers and remains as such till it is sold. The different market operations viz; storage, buying, and selling etc are not properly performed. Trade malpractice and higher rate of commission are quite common in the market.
SUGGESTIONS 1. The biggest problem is the absence of proper physical facilities in the market. These physical facilities like covered sheds and guesthouse for the growers should be provided. 2. Pharias have no business place in the market. They are compelled to pay rent to the commission agents, which is illegal. This practice should be stopped by the market committee. 3. The market committee should improve its supervisory and monitoring role, as there prevailed many mal-practices in the market due to the laxity shown by the committee in this regard. The market committee should protect the interest of growers so that they are able to get a fair price of their produce. 4. Market committee should effectively and efficiently check the auction on road. 5. Market committee should be invigorated to check the illegal compulsory deduction viz; Chung, munshiana and water charges etc. which are made from the sale proceeds of growers in the market. The committee should ensure that the commission agents do not charge illegal commi co mmission ssion from the growers. gro wers. 6. In the present marketing system the retailer¶s net margins were found relatively higher. Effective competition to retailers through weekly marketing system (itwar Bazaar) may be created to reduce their margin. Growers should be encouraged to organize their own marketing out-lets by setting up retail shops in different localities of the town/ cities for the sale of their produce. pro duce. 23
REFERENCES 1. Mushtaq, M. 1971. An economic appraisal of institutional framework in the marketing of agriculture commodities. A case study of T.T. Singh Market. M.Sc. thesis, University of Agriculture Faisalabad. 2. Siddiqi, S. A. 1979. Marketing of Agricultural Products in Sindh. Sindh Agriculture University, Tando Jam, Pakistan. 3. Anjum, I. M. 2000. Operations of Agricultural wholesale Market. A case study of Pakistan. Asian Productivity Organization, Tok yo, Japan. 4. Haque, M. M. 2000. Operations of Agricultural wholesale Market. A case study of Bangladesh. Asian Productivity Organization, Tokyo, Japan. 5. Nigam, A. 2000. Operations of Agricultural wholesale Market. A case study of India. Asian Productivity Organization, Tokyo, Japan. 6. Iqbal, N. 2006. Wholesale Market Management and Operation. An Appraisal of Wholesale Fruits & Vegetable Market in Rahim Yar Khan. 7. Agricultural statistics of Pakistan 8. Pakissan.com 9. Amis.pk
24
