Probems Related To The Elements Of Marketing

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Probems Related To The Elements Of Marketing

1. PACKING : Soon after the completion of coloring process, tendered nuts are ready for marketing. It will be packed in a gunny bag and top end mouth of the bag is stitched or tied with a rope. Dried nuts or white variety chali will be ready for marketing when it is packed in a gunny bag and tied. No special packing is used when the crop is sold in the primary market.

2. STORING : As regards to processed arecanut, after the packing, storage becomes inevitable marketing function, as it has to be stored in the farmers house itself or in the assembling and distributing markets, in order to sell only when good rate prevails. Generally, both variety of nut are stored in a single or double gunny bags and kept in dry rooms. The nuts in storage can be protected from infection by sulphur fumigation which also helps for bleaching the color of the nut. T.S.S , T.A.P.C.M.S. like societies are providing storage facility to the farmers. Whenever, upward trend prevails in the market it acts as a boon. In case rates come down even after storing, it becomes bane to the farmers.

3. ASSEMBLING OF THE NUTS : The long chain of intermediaries and ignorance of the growers are the main causes for this state of affairs. The growers in the study area did not know commercial grading, more over, they feel that it is not commercial to grade commercially when quantity sold is less in volume. Therefore, the producers sell the arecanut after having done traditional grading in the primary market. These days, it is also coming in practice that the producer can sell in the form of immatured, unhusked, sundried ripe nuts, boiled and dried nuts, (with or without grading) and outright sale of crops.(crop contracting).Therefore, the further processing, which needs expert handling, and it is undertaken by the assemblers.

CROP CONTRACTING

In the 1990’s new system, so called crop contracting emerged in the marketing scene. As a consequence, ‘Crop Contractor’ or ‘Palaguttigedar’ could enter the areca market in a unique way. Before the harvest they meet the farmers concerned and ask the selling the rate of crop. If the deal is finalized, they take the crop after effecting the payment as per the deal and undertake processing work. Then they sell in the open market wherever it fetches a good rate. In some cases big landlords of the village go in for such business, and accept crop contract from small formers and again they sell it through CAS or Co-societies. Out worldly, it seems like smooth sailing for small farmers and those who can not undertake harvest activity on their own, because of lack of time and preoccupation in the other professions. Another reason for entering into crop contact agreement is that severe problems of seasonal and casual labors. Some farmers want to get rid of tensions from market fluctuations and other problems of processing and marketing. However, it is not so simple, as it appears.
One side, it makes the farmer lazy and to lose in value received. Major effect of crop contract is a stumbling blow to co-operative movement in the Dist. Because, majority of the ‘Crop Contractors’ sell the arecanut directly to the ultimate consumers or final traders without bill. It encouraged second sale. Ultimately loss is to the Government in the form of sales tax, loss to the A.P.M.C. in the form of getting started as latest trend after 1991, gradually people started experiencing the demerits of it. However, the complexity of problems in production, processing, selling have resulted the farmers to embrace this new channel of marketing. Comparatively in Malnadu region crop contracting business is flourishing than the coastal area.

PRACTICES OF SECOND SALE

Another major vapulation for the areca market in the Dist. in second sales. Here private traders have entered through the back door. Unlike crop contractors, traders who have involved in second sales are really a stumbling blow for the development of market. A portion of damage done by second sale traders is more than the crop contractors. Second sale has effected on co-operative movement and those agencies do the validate business legally paying taxes and following norms of market practices. Why second sale takes place? Because trader attract the farmers saying that they offer little more than the prevailing market price, in the regulated market. In the process by violating the norms and practices of marketing, trader saves Rs.800 per qtl. of areca on an average; and just they sacrifice Rs.200/- to Rs.250/- transferring to the farmers in the form of attractive rate than the market rate. Enchantment of corrupt practices of traders, greediness of farmers, support extended by the transport operators and helpless situation of APMCS are practically responsible for this phenomena.
Problem of second sale is highest in Honnavar, Bhatkal, and Kumta area. Therefore, in coastal region people are worried, who really wants to enjoy the fruits of co-operation and stability in areca marketing. Comparatively less second sale is seen in lower level in the Malnadu region. However, it is there in higher level between CAS and FTS. Because of credit linked marketing practice followed by the co-societies, and transport facilities provided from the village societies etc. are contributing factors to keep little distance from the Second Sale Traders (SSTS). For the progress and prospects of areca market is concerned, immediate attention is to be given to curb this second sale practice.

ISSUES OF GUTKHA BANNING

     Just as areca is the main ingredient for product like gutkha, areca marketing has direct connection with gutkha production. Since gutkha has occupied the place of singer and tobacco market, in the National level lobby has emerged to club the consumption of gutkha by banning it. Since it has become severe Socio-economic problem in the country some state government have shown little interest in banning the gutkha product. Nevertheless, areca farmers agree that gutkha consumption is bad for health, they have concern over the social problems. But argument is that areca consumption is not bad for health, since people are consuming it from the vedic period. Gutkha is bad because areca is associated with tobacco and other chemicals in it. Therefore, issue of gutkha has become very pertinent, sensitive question to the farmers of UK Dist. It is a real challenge to the Government, a question of survival for the areca producers. In order to save farmers from the hanging sword of gutkha banning, there is a need of new thinking in a unique way to solve the problems of areca marketing and find out the new possibilities of potentialities of extended prospects of areca marketing in general, areca marketing of UK Dist. in particular.
     Red variety of arecanut of Malnadu region have good demand in local markets of Karnataka, Bombay, Nagpur and Luknow market. White variety of arecanut of the Dist. has a good demand in Mahatrashtra and Gujarat markets. Farmers of the Dist. do not have necessary knowledge on secondary marketing. These days, they are evidencing the new challenges in terms of contract farming, practice of second sales, and hanging sword of gutkha banning.

Growers deposit their produce, the different channels (CLS) are as follows:
1.   Producer – Taluka Society                        Trader
2.   Producer - Village Society                  Trader
3.   Producer - Commission Agent          Trader
4.   Producer - Crop Contractor           Trader
5.   Producer - Crop Contractor           Commission Agent- Trader
6.   Producer - Crop Contractor              Taluka Society - Trader
7.   Producer – (RTS) Retail Trader           Terminal Market
8.   Producer - WSTS)                   Terminal Market

Majority of the farmers did not keep the trading relationship with the shopkeepers. Their contract was limited. They had not ready to take risk, and wanted to be in the safer side by selling through co-societies. Shopkeepers were panvalas or Distributors, but their requirement was less. Moreover, among the farmers community very few of them were engaged in selling areca to the ultimate consumers. However, lack of entrepreneurship, less contact, interest, negative attitude, intension of secured payment were responsible for this trend.

LABOUR PROBLEMS AND WAGE RATE

Unlike cultivation, processing function of areca marketing requires different types of labours like skilled, semi-skilled, unskilled, female, male, seasonal and regular one. Therefore, problems of availability and non availability of such labors as and when required, will decide the problems and prospects of areca marketing.

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