BRIEF
NOTE ON RYTHU
BAZARS
IN TELANGANA
Concept:
The Rythu Bazars
were established in the year 1999. The concept of Rythu Bazar was
developed to facilitate direct marketing between consumers and
farmers. There are 36 Rythu Bazars are working in the State with
temporary/semi-permanent
structures being funded by Agricultural Market Committees. No service
charges and no market fee is levied in Rythu Bazars. Vegetable
growers/farmers committee decide the selling price in Rythu Bazars.
District Administration is entrusted with the responsibility of
establishing and functioning of Rythu Bazars under the direct
supervision and control of Joint Collectors. Chief Executive Officer,
Rythu Bazars, coordinate at State level.
Further it is submitted that on
an average 3155 farmers participate in Rythu Bazars, daily selling
9,000 to 10,000 Qtls. of vegetables. The Farmers share in the
consumers rupee is estimated to be just 40 paise. The Large number of
small farmers are unable to effectively bargain for a better price in
the wholesale markets. It is therefore felt necessary to evolve an
alternate marketing strategy where both growers and consumers are
benefited through Rythu Bazars.
Regulated
Market Yards for fruits and vegetables are functioning only at few
centers in the State. The Marketing system for fruits and vegetables
is in the hands of middlemen. Middlemen exist at various levels
between the farmer and the consumer and exploit through malpractices
in weighments, handling and payments.
The farmer's share in the
consumer's rupee is estimated to be just 40 paise. In addition the
estimated losses in handling of vegetables in the traditional channel
of marketing is about 30 to 35%.
Large number of small farmers
are unable to effectively bargain for a better price in the wholesale
markets. Inefficiencies in wholesale markets result in a long chain
of intermediaries, multiple handling, loss in quality and increase
the gap between producer and consumer prices. Intermediaries and
system inefficiencies consume a disproportionate share of consumer
prices. Large number of small retailers, each handling small
quantities, create high overheads leading to high margins on produce.
Rythu Bazars will operate outside the purview of Agrl. Market
Committees to be managed by Estate Officers and under the control of
Joint Collectors.
It
was therefore felt necessary to evolve an alternate marketing
strategy where both growers and consumers are benefited through Rythu
Bazaars. Rythu Bazaars are thus planned for direct interface between
the farmers and the consumers eliminating middlemen. Rythu Bazars, if
function effectively, can act as price stabilisation centres.
OBJECTIVES:
The
objectives are
To
ensure remunerative prices to the farmers and provide fresh
vegetables to consumers at reasonable rates fixed everyday.
Facilitate
prompt realization of sale proceeds to farmers without any
deductions.
Curb
malpractices in weighments – provide vegetables with correct
weighments to consumers.
Provide
direct interface between farmers and consumers – eliminating
intermediaries in trade.
LOCATION
OF RYTHU BAZARS:
Rythu Bazars are located on
Government lands identified by the District Collectors. The location
shall have to be convenient both for the farmers and consumers. The
criteria for opening of new Rythu Bazars are the availability of
atleast one acre of land in strategic locations, and identification
of 250 vegetable growing farmers including 10 groups.
INFRASTRUCTURE
FACILITIES:
Required
infrastructure is provided in all Rythu Bazars with funds of
Agricultural Market Committees. The temporary structures in Rythu
Bazars are replaced by semi permanent structures to provide adequate
protection against sun/rain to the producers and the users alike.
The
Rythu Bazars shall have to ensure:
Adequate
number of Sheds for farmers to sell their produce.
Adequate
arrangements for supply of drinking water.
Toilet
facilities with proper sanitation
Proper
arrangements for parking of vehicles.
Arrangements
for removal of garbage and cleaning the Market by local body.
Facilities
for storage of unsold produce like Zero Energy Cool chambers.
Weighing
scales should be provided to all the farmers with proper arrangements
for issue and collection.
IDENTIFICATION
OF FARMERS/VILLAGES.
Proper
Identification of a cluster of villages and genuine farmers and their
marketing linkage to Rythu Bazars is key to the successful
functioning of a Rythu Bazar.
VILLAGES:
It is desirable to identify the
farmers from a cluster of 10-15
predominantly vegetable growing
villages to enable provision of horticulture services, inputs and
transportation arrangements to the Rythu Bazars effectively.
Horticulture Department may
identify such clusters
immediately for all the Rythu
Bazars.
FARMERS:
Identification of farmers shall
be done jointly by a team consisting of
(1) M.R.O.
(Tahsildar)
(2)Horticulture
Officer/Consultant
(3)Agricultural Officer, in the
villages.
In the absence of Horticultural
Officer/Consultant services of Assistant Director, Agriculture may be
utilised.
The team should finalise the
schedule of visits to the villages and publicise it adequately among
the vegetable growing farmers.
As per the schedule the team
should visit the villages and convene a meeting of vegetable growing
farmers.
In the meeting they should
explain about the advantages of the Rythu Bazars to the farmers
through provision of
a)Horticultural services
b)Seed supply at subsidized
rates
c)Transportation
arrangements
d)Price
mechanism
e)Elimination
of middlemen to motivate them to
reap the
benefits.
After the meeting,
the team should visit fields of the willing farmers and issue
temporary identity cards on the spot.
Temporary identity cards issued
should be replaced by laminated photo identity cards within a week.
Tenants may also be given
identity cards on field verification.
Farmers may be
formed into groups as per their choice. It may be explained to them
that each group can send one or more members on rotation for sale of
vegetables in Rythu Bazars. They may also be extended the benefits
given to the Self Help Groups by the government.
ISSUE
OF PHOTO IDENTITY CARDS:
Identity cards should
contain the following details:
Name of the farmer
Address
Extent of land
Vegetables grown
Photograph of farmer/ farmer
with his family members/and/ or farm servant.
f) In case of farmers groups,
photograph of the group members.
Photograph must be attested by
Horticultural Consultant.
Identity Card must be laminated
Register containing the details
of the Identity Cards issued shall
be maintained with
horticultural consultant and estate officer.
Validity
of Identity cards shall be six months from the date of issue.
Renewal
of the Identity cards shall be completed atleast 15 days
before expiry.
ALLOTMENT
OF SHOPS TO FARMERS BY ESTATE OFFICER
Only
the farmers/groups with valid photo identity cards should be allowed
to sell in Rythu Bazar.
The
Daily allotment of shops shall be on First
Come First Serve
basis on rotation.
No
one shall be allowed to occupy the same shop continuously.
Farmers shall not be allowed to
reserve the shop by keeping vegetables in the night.
PREVENTING
THE ENTRY OF MIDDLEMEN
Adequate
participation of farmers is the best way to prevent the entry of
middlemen.
The entry of middlemen
(retailers / wholesalers) defeats the purpose of setting of Rythu
Bazars.
No
seller shall be allowed to enter into Rythu Bazar without valid photo
identity card.
If
any farmer comes to Rythu Bazar without any identity card, he should
be directed to Horticulture Consultant for obtaining the identity
card.
The
bogus identity cards shall be cancelled immediately.
Farmers
should be allowed to sell the vegetables grown by them only.
Proper
selection of Self-Help Groups.
Self-help
Groups to sell only those vegetables which are not grown in the
District and other essential commodities supplied by the Government
Agencies.
Taking
deterrent action against the persons responsible for issuing
cards to ineligible persons.
Estate
Officer will be held responsible for allowing persons without proper
identity cards.
Frequent
surprise inspections by Joint Collector and others and leaving
their remarks in the inspection register without fail.
TRANSPORT
ARRANGEMENTS:
Joint
Collectors have to ensure adequate transport arrangement in
consultation with APSRTC after ascertaining specific requirement from
the estate officers and farmers.
SANITATION:
The
premises should be kept neat and clean.
Removal
of garbage, cleaning the market , maintenance of toilets may be
entrusted to the local body, private agency, or Self-help Group.
Required
funds for the above may be met from the income generated through
auction of parking space, canteen,etc.
Farmers
and Self Help Groups should clean the space allotted to them and put
the garbage at the places specified.
Funds
allotted to Rythu Bazars wherever necessary may be utilised for
proper sanitation in the market.
PRICE
FIXATION:
The
price fixation in Rythu Bazars shall be through a committee of
farmers and the Estate Officer.
Adequate
care should be taken to fix the prices realistically. If the prices
in Rythu Bazars are higher than the local market rate, there is no
incentive to consumers. And if the prices fixed are lower than the
wholesale market rates there is no incentives to farmers.
The
prices generally in Rythu Bazars shall have to be 25% above the
wholesale rates and 25% less than the local retail price.
Marketing
Department shall provide the wholesale prices to Estate Officer for
realistic price fixation.
Estate
Officer should also make his efforts to obtain the wholesale and
retail prices.
Whenever
Marketing Department is not able to provide wholesale prices by 6.00
A.M in the morning, previous day's wholesale price may be used.
For
the different varieties (clearly distinguishable) of the same
vegetable, different sale price may be fixed.
The
Estate Officers shall ensure that prices are displayed prominently at
strategic locations.
The
Estate Officers shall ensure strict enforcement of prices fixed.
All
disputes relating to sale of vegetables shall be resolved by the
Estate Officers.
LEASE
OF STRUCTURES / PARKING SPACE :
Rythu
Bazars should generate sufficient income for maintenance through
auction of parking space, canteen etc.
Joint
Collector is the competent authority for finalisation of auction.
The
money realised by way of auction shall be credited to Rythu Bazar
funds and the funds can be used for the purpose of
1. Sanitation.
2. Drinking water facilities.
Purchase
and repairs of weighing scales, and maintenance of Rythu
Bazars.
The
Estate officers shall maintain proper accounts / cash books etc.
Duties
of the Estate Officers :
The
Estate Officers are responsible for
Upkeep
and maintenance of Rythu Bazars.
Daily
allotment of space on First Come First Serve (FCFS) basis.
Provision
of weighing scales to farmers daily and collecting them back in the
evening.
Formation
of price fixation committees.
Convening
of the price fixation committee meetings everyday morning for
realistic price fixation.
Ensure
sales at the prices fixed.
Conducting
a meeting of all farmers once in a week to assess the functioning and
to take course corrections and send the minutes to Joint Collector
and Director of Marketing.
Prominent
display of prices at strategic points.
Use
of public address system for announcement of prices.
Prevention
of entry of middlemen.
Cleanliness
/ sanitation.
Proper
supply of power and water.
Proper
transport facilities to farmers.
Proper
recording of daily arrivals and sales.
Prompt
furnishing of returns and reports to the Joint Collectors / Director
of Marketing.
Encourage sale of vegetables not
grown locally by the Self-Help Groups.
Ensure
that the farmers sell vegetables mentioned in the identity card.
Co-ordinate
with Horticulture officers / consultants in timely distribution of
seed material / inputs to promote Horticulture production.
Prevent
entry of antisocial elements especially in the nights.
Proper
maintenance of Accounts and inspection Register.
Settle
disputes arising on account of quality, price etc between sellers and
purchasers.
Lease of space for parking /
canteen etc and realisation of lease amounts.
Organise
proper watch and ward.
Prompt
action on adverse news items relating to Rythu Bazars.
Problems
of transportation, middlemen, requirement of additional
infrastructure and other problems may be taken to the notice of Joint
Collectors as and when necessary.
ROLE
OF HORTICULTURAL CONSULATANTS:
Adequate
participation of farmers is sine-qua-non for the successful
functioning of Rythu Bazars and this is the primary responsibility of
Horticultural Consultant. Therefore, Horticulture Consultant should
motivate, identify and ensure regular attendance of vegetable growers
to reap the benefits of Rythu Bazars.
Visiting
Rythu Bazars regularly and assess the daily requirement of
vegetables.
Based
on the requirements, action plan should be prepared for production
and regular supply of vegetables by identifying required number of
farmers.
Regular
visits to identified villages and providing pre/post harvest
consultancy to the identified farmers.
Timely
supply of quality seeds at subsidised prices to the farmers.
To
guide the farmers in production of off-season vegetables.
To
organise training to vegetable growers.
To
maintain farmer-wise, village-wise, Mandal-wise area under different
vegetables and varieities and quantities produced and sold in Rythu
Bazars.
Assist
the Estate Officer in managing Rythu Bazar.
To
interact and coordinate with personnel of Agriculture, Horticulture
and
Marketing departments.
To
maintain tour diary and submit monthly diaries to Estate Officer,
Assistant Director of
Horticulture and Joint Collector.
Assistant
Director of Horticulture/Deputy Director of Horticulture shall send a
fortnightly report after inspection(s) in the prescribed proforma to
commissioner Horticulture, Director of Marketing and Joint Collector.
ROLE
OF AGRICULTURE OFFICERS
The
Agriculture Officers shall co-ordinate with Horticulture Consultants
in the distribution of Seed/Implementation of Horticulture production
plan.
Motivate
farmers in disposal of produce in Rythu Bazars.
Coordinate
with Horticulture Consultant in proper identification of
Villages/Farmers for Rythu Bazars.
Co-ordinate
with Horticulture Consultant/Estate Officer in elimination of
Middlemen in Rythu Bazars.
Coordinate
Estate Officers in managing Rythu Bazars.
ARRANGEMENTS
FOR SALE OF VEGETABLES NOT GROWN LOCALLY.
Vegetables
grown within the district to be sold only by the farmers.
Rythu
Bazars have to ensure availability of all vegetables whether grown
locally or not.
The
import and sale of vegetables not grown locally or not grown in that
season may be organised through self help groups.
Self
help groups shall not be allowed to sell the vegetables grown within
the district.
District
administration should assist the self help groups in procuring
vegetables through proper tie ups.
The
daily return of transactions at all Rythu Bazar are made available
through computer net work to aid decision making in the
transport of vegetables from the low price areas.
SALE
OF ESSENTIAL COMMODITIES IN RYTHU BAZARS:
All essential commodities except
rice may be sold through self help groups.
Sale
of rice at reasonable prices may be organised through the rice
Millers Associations.
Sale
of essential commodities viz., Rice, Oils, Pulses, Tamarind, Dry
chillies and Onions to be organized at all Rythu Bazars.
Govt. agencies (Civil Supplies
Corporation, OILFED, MARKFED) shall sell their commodities through
Self Help Groups.
SELF-HELP
GROUPS:
Care
should be taken to ensure that the Self Help Group functions as a
group and not as an individual in the conduct of transactions.
They
shall sell only those Vegetables not grown in the District.
Self
Help Groups should be encouraged to sell the vegetables not grown
locally and other essential commodities in the Rythu Bazars.
Joint
Collector should select Self Help Groups in consultation with PD,
DRDA and Municipal Commissioner based on group activity, savings
amount in the bank and their willingness to work for lower profit
margins.
Selected
groups should function with active participation of all the members
of the group and not by one or two individuals.
MAINTENANCE
OF REGISTERS/RECORDS.
The
Estate Officers shall ensure proper maintenance of Registers/Records
Reports and inspection register.
Furnish
daily reports of transactions as per format appended before
11.00 A.M.
Furnish
weekly returns of transactions as per proforma on every Friday.
Report
fortnightly on 1st
and 16th
of every month particular of as per proforma as check
memo on Rythu Bazar.
Maintain
the following Registers as per the format appended
Register
of inspections
Register
of Farmers
Register
of Dead stock
Register
of Self-help Groups.
Accounts
Register.
CONSTRUCTION
OF PERMANENT RYTHU BAZARS:
Keeping
in view the present and future requirements and the response from the
farmers and consumers, permanent Rythu Bazars are planned at all the
centres.
An
area of 1.00 acre is essential for construction of Rythu Bazars.
Construction
of permanent Rythu Bazars is entrusted to APIIC for speedier
execution.
The
permanent Rythu Bazars shall be occupied as and when execution is
completed.
COMMUNICATION
FACILITIES :
Telephone,
Fax and Computers should be installed in all Rythu Bazars.
The
Estate Officers shall use the above for prompt submission of returns
and receipt of information for better management.
Networking
of all Rythu Bazars enable Estate Officers in realistic price
fixation and helps the farmers, Self Help Groups in taking
advantage of the prevailing prices in different markets.
TRAINING:
Commissioner,
Horticulture and Director of Marketing shall organise training
programs at periodic intervals for Estate Officers and Horticulture
Consultants.
ROLE
OF JOINT COLLECTORS:
Joint
Collectors are responsible for the effective functioning of Rythu
Bazars in the district.
The
Joint Collectors shall hold periodical meetings with farmers/
Consumers and take corrective measures.
Appointment
of Estate Officers and Horticulture Consultants.
Holding
weekly meetings with Estate Officers.
Inspection
of atleast one Rythu Bazar every week.
Coordinate with APSRTC officials
for adequate transport arrangements.
Ensure
proper co-ordination of Agriculture, Horticulture, Revenue,
Marketing, Transport and Local Bodies for the smooth functioning of
the Rythu Bazar.
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