A Study On Market Potential of Indian Agriculture Products - PDF FV
A Study On Market Potential of Indian Agriculture Products - PDF FV
ON
For
Pisum Food Services
Submitted by
KARANAM
HEMANTH(19031)
Prof.VIKRANT KUMAR
ICBM-SCHOOL OF
BUSINESS EXCELLENCE
I Have the Pleasure in Certifying That Mr. Karanam Hemanth Bonafied Student of Post
Graduate of Diploma and Management (Batch 2019-21) of ICBM School of Business
Excellence Hyderabad. He had completed their Project work entitled “A Study on Market
Potential of Indian Agriculture Products”. This is my original effort and has not been copied
from any other source. This project has also not been submitted in any other institute/University
for the Purpose of the award of any Degree. This project fulfils the requirement of the
curriculum prescribed by this University for the said course.
SIGNATURE SIGNATURE
We hereby declare that we have carried out Summer Internship Training project on the topic entitled
“A Study on Market Potential of Indian Agriculture Products” at ICBE-SBE, Hyderabad.
We further declare that the project work is based on my original work and no part of this project has
been published or submitted anywhere else to anybody.
KARANAM
HEMANTH ( PGDM
2019-2021
ACKNOWLEDGEMENT
It is not possible to prepare a project report without the assistance & encouragement of other people. This one is
certainly no exception.
At the very outset, I take the opportunity to thank Dr. S. Zarar & Dr. Ritu Zarar, Principal and Director-
INSTITUTE OF COMPUTERS AND BUSINESS MANAGEMENT-SCHOOL OF
BUSINESS EXCELLENCE, for providing me with academic support.
I express my sincere regards and gratitude for every individual linked with my Research Work. One such person is
my guide Prof. VIKRANTH KUMAR, whose inspiring words made me, put in all I had to offer. His continuous
guidance and suggestions are the cardinal aspects that have ultimately led me to see this fruitful end.
And also I would like to thank all the group members of Dye waves for providing great support and
guidance in the work area.
Finally, I am thankful to all the people who are directly or indirectly involved in completion of project
process.
(KARANAM HEMANTH)
PREFACE
During the course of PGDM at ICBM-SBE,Hyderabad, we have to do virtual internship project for the
partial fulfilment of PGDM course, topic of the project report we received was:
Under the Guidance of “Mrs. Ankeeta Pednekar” and “Mr. Hitesh Dhamani”.
The purpose of this report is to explain what we did and learnt during our internship. A very essential
part of the management education is training. The aim of training is exposure of the management student
in the field that is done to test the classroom learning.
We had a great experience while working as a intern at “Pisum Food Services Private Limited”. We gained
an insight about the Food Industry, its business structure and its working procedure. In this way, we came to
know about the Marketing strategies of the company and the industry.
We had tried our best efforts to complete the task on the basis of our skills that we achieved.
This report gives us a true picture of practical activities and procedure of the “Pisum Food Services
Private Limited”. The value addition was enormous and influence would be long lasting. We thank
everyone once again.
CHAPTER 1
INTRODUCTION
INTRODUCTION
‘Agriculture’ is derived from the Latin word ‘Ager’ which means Land or field and ‘Culture’
means cultivation. It means the science and Art of producing crops and livestock for
economic purpose. Agriculture is an art of raising plant life from the soil for the use of
mankind. In simple words we can say agriculturist is a person who cultivates the land and
grows crops on it.
Agriculture is the art and science of cultivating the soil, growing crops and raising livestock.
It includes the preparation of plant and animal products for people to use and their
distribution to markets. Agriculture provides most of the world’s food and fabrics. Cotton,
wool, and leather are all agricultural products. Agriculture also provides wood for
construction and paper products. Agriculture fulfils the basic needs of the vast human
population like food, shelter and clothing. To improve the quality as well as quantity of the
producer, many new techniques have been introduced in the field of agriculture. Better seeds,
fertilizers, better methods of irrigation are some of the practices that have increased the
harvest and brought more land under cultivation. Seeds, manure, fertilizer, machinery and
labour are the inputs in the system of agriculture. Crops, Diary products, poultry
products, fruits, silk and wool are some of the outputs of this system.
● Agricultural conditions and practices vary from State to State ,it may include
differences in soil conditions, climatic factors etc
● Most of the Indian farmers are illiterate, ignorant, superstitious, and conservative and
bound by outmoded customs, etc., create an atmosphere which is not proving helpful
for going ahead with farm productivity.
● Indian agriculture has been facing problems such as inadequate provision of finance,
marketing etc.
● Absence of adequate knowledge of multiple cropping, crop-rotation, crop insurance,
irrigational facilities, etc.
● There is lack of co-ordination between different institutions like Institution like Co-
operatives, Rural Banks, Panchayats, Community Development Projects, etc.
Agriculture is the backbone of Indian economy. Due to global warming and climate change traditional
farming in the regular months have been distorted and crops have been ruined is the most common phrase
seen today. This not only gives economic losses but also the main reason for farmer sucide. Now agriculture
needs support, time has come for technology to take over change. For a crop to grow ,favourable soil
conditions, ambient rainfall and temperature is necessary. So as now due to climate change temperature and
rainfall cannot be well defined , example rains in December and January or irregular temperatures have
made it difficult for farmers and common man to predict months of plantation and yield of the crop due to
irregularities. So we have formulated an analysis by prediction of a favourable crop based on temperature
and current rainfall with soil conditions. diverse climate of India ensures that all varieties of fresh fruits and
vegetables are available. It ranks second in the world's production of fruits and vegetables, after China. As
published by the National Horticulture Board's National Horticulture Database, India produced 90.2 million
metric tons of fruit and 169.1 million metric tons of vegetables during 2015-16. The region under fruit
cultivation stood at 6.3 million hectares, while 10.1 million hectares of vegetables were cultivated.
Indian agriculture remained traditional for a long time and so there has been slow growth in all
respects. Therefore, the Government of India has initiated modernization of agriculture and
institutional changes. The agricultural sector provides basic necessities for the sustenance of human
beings and it provides the major input for manufacturing and service industries. It makes major
contribution to economic development. Farmers can improve their income level by adopting scientific
methods of agriculture and following the rural entrepreneurship like forestry, fisheries, cattle breeding,
dairy and poultry farming etc. The agricultural produce is required not merely for self-sufficiency but
for commercial purpose. Moreover, the government is continuously making efforts to develop this
sector because the whole nation depends on it for food. Besides, earlier we used to depend completely
on monsoon for the cultivation of food grains, but now we have constructed dams, canals, tube-wells,
and pump- sets. Also, better variety of fertilizers, pesticides, and seeds, which help us to grow more
food in comparison to what we produce during old times. With the advancement of technology,
advanced equipment, better irrigation facility and the specialized knowledge of agriculture started
improving and we are the largest exporter of many food grains . Insufficient rain can ruin
crops. Rice cultivation requires three times more water.
Many rely on diesel pumping for irrigation which is costly. Soil, seed, manure, insects, crop
damage, these are some major problems that could occur in farming.
Theoretical framework:
In this chapter, with a view to evaluating the objectives of the study, the findings of some of
the foregoing research studies and the methodology adopted therein have been reviewed.
Very few studies have been carried out on the challenges and problems faced by agriculturist
in India and abroad. Many research programmes have highlighted various problems and
challenges which are faced by agriculturists. Indian agriculture is plagued by several
problems. Some of them are controllable and some of are out of
control. Researches already highlighted some common problems, and it can be solved with
systematic methods. Firstly seeds, which is a critical and basic input for attaining higher
crop yields and sustained growth in agricultural production. Unfortunately, good quality
seeds are out of reach of the majority of farmers. In order to solve this problem, the
Government of India established some schemes..i.e. National Seeds Corporation (NSC) State
Farmers Corporation of India (SFCI) etc. Secondly, Manures, Fertilizers and Biocides which
are used in farming. Indian soils have been used for growing crops over thousands of years
without caring much for replenishing. This has led to depletion and exhaustion of soils
resulting low productivity. This is a serious problem which can be solved by using more
manures and fertilizers. Thirdly Irrigation , which is the most important agricultural input in
a tropical monsoon country like India where rainfall is uncertain, unreliable and this problem
can be solved by constructing Dams, canals, tube-wells, and pump-sets. Afforestation also
helps in gaining rain. And fourthly, Inadequate transport. One of the main handicaps with
Indian agriculture is the lack of cheap and efficient means of transportation. Due
to this farmers cannot carry their produce to the main market and are forced to sell it in the
local market at low price. It can be reduced by effective transport facilities . Next problem is
soil erosion ,due to which large tracts of fertile agricultural land suffers by wind and water.
This area must be properly treated and restored to its original fertility by taking proper
methods to reduce soil erosion. And next problem which comes after soil erosion is lack of
storage facilities, in the rural areas, i.e. either totally absent or grossly inadequate. Under
such conditions the farmers are forced to sell their produce immediately after the harvest
at prevailing price. Farmers can avail facilities offered by agencies engaged in warehousing
and storage activities. Lastly, its ineffective Agricultural marketing. In the absence of sound
marketing facilities, the farmers have to depend upon local traders and Middleman for selling their crops. In
order to save the farmer from the moneylenders and the middle men, the government has come out with
regulated markets. These markets generally introduce a system of competitive buying, help in eradicating
malpractices, ensure that farmers are entitled to receive fair price for their products.
India is the world's largest producer of many fresh fruits such as banana, mango,
guava, papaya, lemon and vegetables such as chickpea, okra and milk, major
spices such as chili pepper, ginger, fibrous crops such as jute, staples such as
millets and castor oil seed, as per the 2014 FAO world agriculture statistics.
India is the second largest producer of wheat and rice, the main food staples in
the world .
India is currently the second largest producer in the world of a range of dried
fruits, textile raw materials dependent on agriculture, roots and tuber crops,
pulses, farmed fish, eggs, coconut, sugarcane and various vegetables. More
than 80 percent of agricultural products, including many cash crops such as
coffee and cotton, were ranked among the world's five largest producers in
2010. India is one of the world's five largest producers of livestock and poultry
meat, with one of the highest growth rates as of 2011.
One 2008 study reported that the population of India is increasing faster than its
capacity to produce rice and wheat. While other recent studies say that India can
easily feed its growing population, plus produce global exports of wheat and
rice, if it can reduce staple food spoilage/wastage, boost its infrastructure, and
increase its farm productivity like those achieved by other developing country.
India, among vegetables, is the largest producer of ginger and okra and ranks
second in the production of potatoes, onions, cauliflowers, brinjal, cabbages, etc.
Among fruits, bananas (25.7 percent), papayas (43.6 percent) and mangoes
(including mangosteens and guavas) are produced first in the region (40.4
percent).
The greater portion of fruits exported from the country is accounted for by grapes,
pomegranates, mangoes, bananas, oranges, while onions, mixed crops, potatoes, tomatoes,
and green chills make a significant contribution to the vegetable export basket.
The global food industry is projected to bring in sales, according to market research.
Registering a compound annual growth rate of 4.5 percent from $3.03 trillion by 2020,2015
to 2020 (APEDA, 2014). It is no wonder that processed foods are an important part of the
manufacturing process.10 primary sectors under the Make in India initiative.
India, as a region, has fertile land, good irrigation facilities and modern irrigation facilities.
Agriculture/horticulture-based technology in the field of cultivation and development making.
The growth of the food processing industry further enhances this benefit. Well, in the world.
All of these positive factors related to the agriculture/horticulture sector result in exports of
Argo goods for farmers and exporters are a lucrative proposition.
Vegetables are an excellent source of vitamins, particularly niacin, riboflavin, thiamin and
vitamins A and C. India produces the largest number of vegetables from temperate to humid
tropics and from sea level to snow line. Apart from proteins and carbohydrates, they also
include minerals such as calcium and iron. Vegetables battle against food and are
considered to be the cheapest source of natural defensive weapons. Most of the vegetables,
which are shortterm crops, suit very well in the intensive cropping system and are able to
provide growers with very high yields and very high economic returns. Potato, Onion,
Tomato, Cauliflower, Cabbage, Bean, Egg Plants, Cucumber Plants, Cucumber Plants, are
the main vegetables grown in India.
Potato, Tomato, Cauliflower, Cabbage, Peas are the major varieties of different vegetable
products.
The major areas producing Fresh Vegetables are West Bengal, Uttar Pradesh, Bihar, Andhra
Pradesh, Madhya Pradesh, Gujarat, Orissa, Tamil Nadu, Maharashtra, Karnataka, Haryana,
Chhattisgarh and Jharkhand. The area under cultivation of Vegetable products was 10106
Thousand Ha with a production of 169.06 million tons in the year 2015-16.
India is also a prominent exporter of Fresh Vegetables in the world. The country has exported
7,50,111.99 MT of Fresh Vegetables other than Onion to the world for the worth of Rs.
2,029.43 crores/ 284.28 USD Millions during the year 2019 -20.
The major importing countries are U Arab Emits, Nepal, U K, Qatar, Bangladesh Pr.
About Fresh Fruits:
India is the world's largest fruit producer and is regarded as the fruit basket of the world.
Mangos, Grapes, Apple, Apricots, Orange, Banana Fresh, Avocado, Guava, Lichi, Papaya,
Sapota and Water Melons are the main fruits grown in India.
Maharashtra, Andhra Pradesh, Tamil Nadu, Gujarat, Karnataka, Uttar Pradesh, Bihar,
Madhya Pradesh, West Bengal, Kerala, Jammu & Kashmir, Orissa and Assam are the major
areas of production in the country.
India is also a major exporter of the world's fruits. During the year 2019-20, the country
exported 4,96,577.72 MT of fresh fruits other than Grapes and Mango to the world for the
amount of Rs.
2,065.82 crores/ 288.07 USD Millions.
CHAPTER-2
REVIEW OF LITERATURE
Review of literature:
To get a bird's eye, a study of previous agricultural studies is necessary. Perspective on the
market. It is helpful to go in detail and to find unknown areas with the information collected.
Several scholars have thoroughly discussed different aspects of the agricultural sector. It
discusses some of the following reports.
1) For many years, the role of agricultural exports in growth has been a topic of debate.
Following the free trade claims, the implementation of the basic concepts of
comparative advantage suggested that developing countries with an abundant supply
of natural resources should specialize in the production and export of agricultural
commodities, while developed countries with abundant capital and a comparative
capital advantage should manufacture and export intensive finished products.
However, the stagnation in exports earning of major developing countries during the
l950s cast serious doubts on the credibility of free trade. The developing countries
claim that trade was and still is a "engine" of economic growth for the developing
countries of the 18th and 9th centuries that are developed countries today; but in the
mid-20th century, this engine is no longer available to developing countries. The so-
called "secular terms of trade deterioration hypothesis" have been developed by
Prebisch (1959 and 1968) and Singer (1950).
2) Enriching Indian Agriculture: A Vedic point of view (Focus on farmers in
particular Suicides in India) Dr. Veena Rani-
The agricultural sector plays a crucial role in the growth and development of the Indian
economy. The agriculture sector in India currently provides livelihoods for 65 to 70
percent of the total population. The sector provides 54.6 percent of the country's
population with jobs and is the largest single occupation in the private sector.
However, it can be observed that its contribution to real GDP dropped to 13.9% in
2013-14, a matter of serious concern. Different kinds of policies are introduced by
the Government of India every year for the welfare of farmers, but it is a matter of
great concern that government must waive loans from most farmers every year as
they are unable to repay the loans and hence commit suicide. Cases of suicide
among farmers are a significant threat to our economy. The goal of the paper is to
focus light on the ways and means of making our Indian Agriculture prosperous
from our ancient Vedic philosophy as well as extracting the farmers from the heavy
burden of loans.
3) Organic Farming and Horticulture: New Dimensions of Agriculture Development in
MP, India Gupta Hrideshwer School of Studies in Economics, Vikram University,
Ujjain MP, INDIA Received 31st May 2013, revised 15th June 2013, accepted 5nd
July 2013:
The dominant sector of the economy of Madhya Pradesh is agriculture, which defines
development and sustainability. Essentially, organic farming is not only chemical-
free food, but also the same or higher yield with lower input costs. In 2009-10.,
Madhya Pradesh lacked 10.8 acres of organic cultivation area. Cotton has been
recognized as the state's main organic produce; in addition, fruits, vegetables, and
herbal plants also contribute a lot because of the state's large forest cover. Madhya
Pradesh's climate and soil are favorable for the growing of horticultural crops.
Horticulture is agriculture's fastest growing market. Madhya Pradesh produces
approximately 7.69 MT of
Horticulture produces 0.75 mha of land and accounts for 3.20 percent of the country's
overall horticultural production. Vegetables (48.08 percent) and fruits are the main
proportion of horticultural produce (43.85 percent). The main objective of the study
is to explore organic farming and horticulture in Madhya Pradesh as new
dimensions of agricultural production. We also examine the area and output of
Madhya Pradesh's key organic crops and the area and production and productivity
of Madhya Pradesh's major horticultural crops. For this analysis, we use secondary
data.
4) Pandey (2010) reported that in agriculture, rural women play a significant role.
Nurkse notes that "it might be useless to push extra labor and capital into the
traditional export sectors, perhaps even worse than useless," where the incremental
competitive advantage might be very poor. The use of additional production factors
in the existing export sectors can contribute to immiserating growth. The Market
Deficiency Thesis was also endorsed by Prebisch (1964). To justify the secular
decrease in terms of trade with developing countries, it uses the low-income elasticity
market for imports in developed countries.
In support of the demand deficiency thesis, Singer (1950) also argued. Like Prebisch,
he argues that the low-income elasticity of demand in industrial countries for many
of the developing countries' primary products has, in part, led to the secular decline
in manufacturing prices of primary products.
According to Malzels (1961), some developing countries' delays in exports were due
to the sluggish growth in world demand for their primary products.
13)Myint (1965) has contested the above approach of Nurkse and others:
o Firstly, only a portion of the world's total exports of primary products are
produced by less developed countries, so it is not always safe to consider them
as identical with 'primary exports.'
o Secondly, forecasts concerning the decline in exports from underdeveloped
countries are made by lumping into one general category the various types of
primary products. Over any given time, underdeveloped countries' exports
rely heavily on the luck of the draw, those supplying the stagnantly declining
manufacturing industries facing similarly stagnant demand, and those
supplying new and expanding manufacturing industries enjoying buoyant
demand.
o Third, domestic import growth and population expansion, resulting in
increased food demand, have altered the situation in underdeveloped
countries.
14)Cairn (1960) argued that internal supply factors such as export taxes, high population
growth and low demand elasticity are the causes of stagnation in developing countries'
exports, maintaining overvalued exchange rates.
15)The GATT Report (1957) shows that "it is clear that the failure of the semi-
industrialized countries (India is one of them) to maintain their share in world trade is
due to the fact that their production of main export commodities was not sufficient to
satisfy domestic requirements and at the same time to maintain an adequate volume of
export supplies."
However, the U.S. experience that developed impressively before 1860, primarily as a
result of the rapid expansion of its cotton exports, was more important to primary
producing countries. Denmark, Sweden, Australia, Canada, New Zealand, South
Africa and, to a lesser degree, Argentina and Brazil are other nineteenth-century
examples of sustainable growth focused on primary product exports. Export trade,
if not a leading market, has remained the most important support for economic
growth in some other countries. For example, in Russia, wheat exports provided the
foreign exchange to survive the inflow of foreign capital required for
industrialization.
17) Comparative Advantage and Distortions in World Agricultural Trade:
18)The Chand and Phillip (2001) study shows that the WTO Agreement on Agriculture
offers ample space for subsidy maneuvering to provide security for domestic products.
Even after fulfilling the reduction commitments, the number of non-exempt subsidies
in developing countries remains awfully high. Such subsidies allow developing
countries to distort the world market and to shield domestic demand from import
competition. The level of funding in developing countries, such as India, is poor when
compared to developed countries. Export subsidies granted by EEC members, for
example, accounted for more than 50 per cent of the export price they earned for
butter and butter oil and more than 20 per cent for skim milk powder. High export
subsidies are also granted by the US for butter and butter oil and skim milk powder,
which account for over 50 percent of the export price. These facts illustrate that the
amount of export subsidies given by developing countries, such as North America and
EEC members, is so high that severe trade distortions are caused.
19)In his competitiveness literature survey, McGeehan (1968) showed that "the relative
shares of individual countries in world export volume are inversely related to their
initial price level and changes in those shares are related to changes in the different
countries' comparative export prlines." McGeehan therefore found a close association
between prices and export performance. He found that there was an inverse
relationship between the relative share of the world export volume of individual
countries and their initial price level.
20)In his analysis of India's exports, Cohen (1964) explained the relative value of
exports in terms of the relative values of the export units. He concluded that the
decline in India's market share was due to a rise in the price of its goods compared to
its rivals.
21)Documents in the Indian Ninth Plan (1997-2002) consider the exchange rate to have
emerged as the key trade policy instrument. It points out that the exchange rate not
only affects the degree of competitiveness of the domestic tradable in relation to the
foreign markets, but also influences the relative profitability of the tradable in relation
to the nontradable domestic economy.
22)The export output of the motor vehicle industry in the UK has been checked in
another study by Artus (1970). It also concluded that the rise in the level of domestic
demand had an unfavorable shot-term effect on the number of British exports.
23)Nayyar (1987) argued that most of India's agricultural exports reach domestic
consumption and, with slow production growth, the surplus available for exports is
squeezed and the competitiveness of export prices is adversely affected.
24)Alternatively, an increase in domestic demand contributes to an increase in export
production through inducing productive technology. Domestic demand is regarded as
a prerequisite for the growth of the export market (HSU 1972, Basevi 1970, Jallal
1976). The improvement of induced technology from within the system appears to
increase price and quality competitiveness for exports. This hypothesis therefore
predicts that the higher the level of domestic demand, the greater the output of exports.
25)The Dindsa (1981) study shows that the most significant internal factor responsible
for the stagnant or decreasing export volume of India's agricultural exports has been
found to be increasingly growing domestic demand.
26)Sharma (1996) argues that while there may be no direct connection between exports
and hard infrastructure, the latter has a positive correlation between the level of
infrastructure growth and GDP growth, impacting the former. Infrastructure
installations such as ports, airports, highways, telecommunications etc. affect a
country's level of production and export development. Banik (2001) argues that good
infrastructure facilities are extremely necessary for the sustained maintenance of high
export growth.
27)Patel (1959) is of the opinion that, in terms of sluggish world demand, India's stagnant
export earnings must be clarified. He argues that India's sluggish export growth in the
1950s was due to stagnant world demand.
28)However, Patel's critics Krulger and Bauer (1961) maintain that "the past behavior of
Indian exports can be explained more than adequately by Indian government policies
and planning commissions combined with internal demand and supply factors."
Krulger and Bauer therefore argue that India's slow export growth in the L950s
(which
mainly consists of agricultural commodities) is due to government policies and
internal demand pressure.
29)The GATT Study (1957) is of the same view as Krulger and Bauer have articulated.
It is clear from the study that the failure of the semi-industrialized countries [of
which India is one] to retain their share in world trade is due to the fact that their
production of the main export commodities was inadequate to meet the requirements
of maintaining an adequate volume of export supplies. Nor can there be any doubt
that this slow growth of primary production is closely related to the rapid growth of
its industrial activities, given the limited investment capital.
30)The "India's export performance during 1950-72" study by Dindsa (1981) shows that
the primary cause of poor export performance of agricultural exports during this time
is the absence of export supplies, but not external demand. The study found that the
most significant internal factors responsible for the stagnant or declining export
volume of agricultural exports are the rapidly expanding domestic demand and the
slow increase in production.
31)The reasons for distortions in the agricultural trade in the 1980s and early 1990s are
described by Gulati and Sharma (1992). This study estimates the number of subsidies
offered by the world's major economies. It speculates on the effect on major
agricultural trading economies of the liberalization of trade. It empirically
demonstrates that global agriculture will eventually shift to developed countries if
Dunkel Draft has its way, and
the Cairns community and Indian agriculture are likely to flourish by inviting more
capital solely for efficiency reasons.
32)Nayyar and Sen (1994) speculated on the possible effect on Indian agricultural trade of
the Uruguay Round of Talks (1994). Though India's trade in agricultural commodities
is currently small, the study speculates that the opening up of India's wide agricultural
sector to world trade could have an extremely large impact on the nature of the world's
price and subsequent production equilibrium. The study believes that the true potential
for agricultural exports does not lie in major crops at all, but in the growth of
horticulture and food processing. It also believes that, in order to benefit from a
competitive advantage, public investment is important.
33)Vyas (1994) suggests that "India should continue with the policy of self-sufficiency in
food grains, considering many variables." If, due to improved production, we are able
to fulfill the domestic requirements with less capital, and if the prospect of a real
'surplus' becomes inevitable, then the plan should be to redirect resources to
commercial crops or out of the agricultural sector, rather than to take the opportunity
to export essential commodities such as food grains.
34)The experience of the 1990s clearly shows, according to Rao (2001), that, far from
trade liberalization dampening agricultural production, the lack of investment in
irrigation, electricity, roads and agricultural research and extension was responsible
for the failure to benefit from trade liberalization by growing and cost-effectively
diversifying agricultural output. The study thus identifies supply-side constraints for
the dampening of agricultural sector output. The study also believes that high
domestic support presents a major challenge to the viability of Agri-agriculture in
most developing countries, including India.
35)The low level of international prices experienced in the post-WTO era, according to
Chand (2002), is largely part of their cyclical actions and does not have much to do
with the WTO agreement's implementation. The study empirically estimates that trade
imbalance is the high level of subsidies in OECD countries, and the classification of
subsidies in different boxes is discriminatory. This works against the' level playing
field' principle. The study indicates that export subsidies provided by selected groups
of countries, such as the EU, the US and Canada, are absolutely distorting trade and
need to be abolished.
37)The study by Mallik (2005) shows that demand for India's exports is influenced by
the rate of growth of the global economy and trade. It estimates the large co-
movement between exports from the world and exports from India. The study
identifies the adverse effect of the global downturn on the export output of India
during 1997-98 and 2001 as a result of the slight global recession during this time.
38)Sathe and Deshpande's recent study (2006) analyzed Agri-trade patterns for India
in the post-liberalization period. The study considered the top- 15 Agri-export
commodities. The study shows that India's Agri-sector has become more export-
oriented with no discernible change in composition, lower-share commodities have
shown higher export growth rates, and more than 50 percent of the export
commodities have not benefited the country economically because their quantity
export growth rate is higher than the value export growth rate.
39)The above studies based primarily on India's own experience, without taking into
account the output of other countries' agricultural exports in response to the 1995
policyshift.
CHAPTERV-3
To study why the vegetable and fruits prices are fluctuating in Indian markets.
To study reasons behind the increase of profits by using modern methods.
To know the method of cultivation used by the farmers and in what way they
get more profit.
Predict appropriate crop from given temperature and rainfall and soil.
To know and evaluate the methods of technology used in agriculture.., i.e irrigation ,
marketing etc
To know about various institutions which are engaged in providing credit facilities to farmers.
To evaluate the income derived out of agriculture and their savings.
My study will help to know the modern methods of cultivation such as organic farming, hydroponics
etc.., and how profitable it is to farmers and help in overcoming fluctuation of prices in Indian market.
Predict appropriate crop and maximum yield in the climate change. It includes, the strength and
capacities of families in production of agricultural products, the wages paid to the workers , the
interest of workers and their knowledge about the agricultural sectors .Therefore it will throw light on
what has to be improved. So the ultimate purpose of this study is know the current status of I n d i a n
agriculture Products and to know the reason for the decrease in the agricultural cultivation and the
marketing systems.
CHAPTER-4
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Meaning Of Research:
In the broadest sense of the word, the definition of research includes any gathering of data, information
and facts for the advancement of knowledge.
Research Methodology
Research is a systematic and scientific search of pertinent information on a specific topic and research
methodology is systematically solving the research problem. It may be understood as science of
studying how research is done. In it one studies, various steps that are generally adopted by a researcher
in studying his research problem along with the logic behind it. It shows the type of sample design used
and size of the population used to draw the sample.
Research Process
A research design is the set of methods and procedures used in collecting and analyzing measures of
the variables specified in the research problem. The design of a study defines the study type (descriptive,
correlation, semi-experimental, experimental, review, meta-analytic) and sub-type (e.g., descriptive-
longitudinal case study), research problem, hypotheses, independent and dependent variables,
experimental design, and if applicable, data collection methods and a statistical analysis plan. Research
design is the framework that has been created to find answers to research questions.
A research design is the arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure. In this we have used
Descriptive Research Design.
Descriptive Research studies are those which are concerned with describing the characteristics of a
particular individual, or for a group. The studies concerns whether with the specific predictions with
narration of facts and characteristics concerning individual, group or situation are all example of
Descriptive Research Studies. From the point of view of research design, the descriptive as well as
diagnostic studies share common requirements and as such we may group together these two types of
research studies.
Since the aim is to obtain complete and accurate information in the said studies, the procedure to be used
must be carefully planned. The research design must make enough provision for provision against bias
and must maximize reliability, with due concern for the economical completion of the research study.
The design in such studies must be rigid and not flexible.
It is a specific type of research that involves critical thinking skills and the evaluation of facts and
information relative to the research being conducted. A variety of people including students, doctors and
psychologists use analytical research during studies to find the most relevant information. From
analytical research, a person finds out details to add new ideas to material being produced.
❖ Sources of Data
There are two types of sources of data:
● Primary data
● Secondary data
❖ Sample Size: 100
❖ Sample Frame: Primary data are collected from farmers from Sonipat district.
❖ Sampling Method: Systematic sampling method is used
❖ Data Collection Method
Data is collected from farmers by interpersonal interview by using the questionnaire.
❖ Types of Questionnaire Used
● Structured
● Multiple choice
❖ Instrument of Data Collection
A structured questionnaire was prepared with close ended multiple choice questions and open
ended questions for discussion and additional information.
❖ Classification of Data
a) Primary Data:
The data which are collected from the field under the control and supervision of an investigator.
This type of data is generally afresh and collected for the first time. It is useful for current studies
as well as for future studies. For the primary data primary research has been done:
Primary Research:
Primary research has been conducted under qualitative approach through Individual depth
interviews which made up personal interview through structured questionnaire from farmers.
b) Secondary Data:
Data gathered and recorded by someone else prior to and for a purpose other than the current
project. Secondary data is data that is being reused, usually in a different context. Sources of
collecting secondary data are:
o Internal sources
o External sources
It was collected from books, journals, magazine, internet website and newspaper. I have also
taken the help of my advisor and area officer of the company to get some technical information.
❖ Data Analysis Method:
MS-Excel software is used to aid the data analysis and presentation of graphs.
In this project, research design is descriptive research and the data is analyzed through pie-
charts.
Male 83 83
Female 17 17
Gender
Female 17%
Male
83%
MaleFemale
Interpretation:
From the above chart, out of 100 agriculturists, majority of the respondents are male i.e.83%
and remaining 17% are female. So this shows that majority of the male are there.
2.Age of respondents
Below 20 years 0 0
20 – 40 years 27 27
40 – 60 years 52 52
60 years &above 21 21
Total 100 100
AGE
GROUP
21% 0%
52%
27%
Interpretation:
The above chart clearly shows that, 52% of the respondents fall in the age group 40-60 years,
27 % belong to age group 20 – 40 years and rest of the 21 % fall in the age group of 60 years
and above respectively. There are no respondents below the age of 20 years. Therefore
majority of the respondents belong to the age group 40-60 years.
3. FAMILY OF THE RESPONDENTS.
Joint Family 63 63
Nuclear Family 37 37
Type of
Family
70
60
50
40 63
30
37
20
10
0
Joint Family Nuclear Family
Interpretation :
The above graph shows that percentage of joint family is 63% and remaining 37% are nuclear family.
Thus more number of joint families are engaged in agricultural activities.
4) Type of farming:
Irrigated 186 93
Non- irrigated 14 7
Interpretation
From the above table it can be analyzed that 93% of the respondents are involved in irrigated
farming because of better resources of water supply and the other 7% are in non-irrigated
farming.
Both 26 13
Interpretation
From the above table it can be analyzed that above 70% of the respondents are cultivated the
field crops, 17% are cultivated the Vegetables & fruits and 13% are cultivated the both types of
the crops. The farmers who are having a big farming area are engaged in both types of crops
cultivating.
No 4 2
Interpretation
More than 98% of the farmers used the fertilizers for getting more benefits from the farming
activities and only 2% are deny that they don’t use the fertilizers.
Organic 26 13
In- organic 126 63
Both 48 24
Interpretation
Most of the farmers uses the in-organic fertilizers(i.e.63%),13% uses organic fertilizers and other
24% uses the both.
Own savings 32 32
Credit 4 4
Both 64 64
Sources of Finance
Own savings
32%
Both
Credi
64%
t
4%
Own savingsCreditBoth
Interpretation :
The above chart shows the sources of finance for agriculture , out of 100 respondents 32%
invest by their own savings , 4% of the respondents invest through credit and rest 64 %
invest through both source i.e. own savings and credit .Therefore majority of the respondents
invest through both sources.
9. Sources of financial support for agriculture
Commercial banks 5 5
Co-operative societies 64 64
Land lords - -
Friends / relatives 14 14
Others 17 17
Sources of Finance
70 64
60
50
40
30
17
20 14
10 5
0
0
Commercial banks Co-operative Land lords Friends / relatives Others
societies
Interpretation:
The above graph represents the various sources of financial support to the agriculturists. Out
of 100 respondents 5% seek commercial banks as financial source, 64 % of the respondents
borrow loan from co – operative societies and 14% of the respondents borrow from their
friends and relatives. Remaining 17% of the respondents able to manage with their own
savings. Therefore majority of respondents opt for co - operative society as financial source
are t
10. Crops cultivated by the agriculturist
Table showing the crops cultivated by the agriculturists
Crops cultivated
Other 37
Black pepper 42
Rubber plantation 11
Coconut 73
Areca nut 78
Paddy 14
0 10 20 30 40 50 60 70 80 90
Interpretation:
The above graph shows that most of respondents have opted for multiple options, This shows
that various crops are cultivated .Majority of the respondents cultivated areca nut with
78% , next 73% portion rely on coconut farming. 11% and 42% of respondents cultivate
rubber plantation and back pepper respectively. Still 14% of respondents cultivate paddy
and 37% cultivates other crops like vegetables, betel leaves, flowers and they also engage
in dairy farming.
11. Problems faced by agriculturist while growing crops
Table showing the problems faced while growing crops
Problem
s
Other problems 6
Scarcity of capital 1
6
Storage facility 15
Lack of mechanization 28
Inadequacy transport 2
6
Soil Erosion 3
6
Irrigation problem 49
0 5 10 15 20 25 30 35 40 45 50
Interpretation:
The above graph represents the problems faced by the agriculturists while growing crops.
Most of the respondents have selected multiple problems. The chart portrays that 49% of
respondents face irrigation problem and it is the major problem faced by the agriculturists .
36%of the respondents faces soil erosion problem , 26% face the problem of inadequate
transport facilities , 28% says lack of mechanization , 5% of respondents face lack of storage
facility and the other 16% of respondents face scarcity of capital .Remaining 6% face other
minor problems like wild animal attack , lack of labourers etc.
12. FACTORS AFFECTING THE YIELD
Other 3
Water Quality 19
Soil Fertility 20
Agricultural Practices 18
Diseases 73
Natural calamities 69
0 10 20 30 40 50 60 70 80
Interpretation:
The above graph analyses the various factors affecting the yield of farmers and most of
respondents have opted for multiple options. 69% of the respondents say that natural
calamities affect their yield, 73% says diseases affects their crops , 20% says soil
fertility.19% and 18% of the respondents think its water quality and agricultural practices are
the main concern which affect their yields. Lastly 3% respondents says some other factors
will affect their yield.
13.Methods of Marketing
Direct 59 59
Middle man 54 54
Method of
Marketing
Direct Direct, 59
5 5 5 5 55 56 57 58 59 60
1 2 3 4
Interpretation:
The above graph represents the methods of marketing the agricultural crops. Most of
respondents have opted for multiple options where 59% of respondents market their crops
directly, whereas 54% of respondents market through middleman .So this shows that
majority of the respondents market their crops
FINDINGS
The study reveals the following findings:
Based on the study majority of the agriculturists engaged in agriculture are male. This
shows that the males are more interested in agriculture than females.
According to the survey most of the agriculturists have the basic educational
qualification and they are able to understand the necessary information.
The majority of respondents engaged in agriculture are between the age group of 40
to 60 years and above the age group of 20 to 40 years is comparatively less. This
shows that in the field of agriculture , young people are not much interested .
Based on study the majority of the respondents belong to the above poverty line and
even below poverty line agriculturists also cultivate small scale crops.
Majority of the agriculturists are medium scale farmers and they are engaged in
different crop cultivation.
Most of the farmers are engaged in irrigated farming.
The strength of the farmers who are cultivating the field crops is more than who are
cultivating the vegetables & fruits. However, the farmers who are having the large area
for farming were also engaged in both types of crops.
Almost all of the farmers are using the fertilizers for getting better results.
The use of inorganic fertilizers is the prior than the organics. The organic fertilizers
were used by some of the farmers to maintain the balance or the fertility of the soil.
The level of knowledge about the negative impacts of fertilizers is high among the
farmers but still they are using them a lot.
More than 80% of the farmers agreed that the use of the fertilizers is necessary to boost
the crop yield.
The farmers prefer the cash and credit both while purchasing the fertilizers.
The farmers gets the information about the fertilizers through dealers, campaigning and
farmers meeting in a great sense.
The farmers wants the change in the price, quality and availability of the fertilizers.
From the study, it shows that majority of the respondents finance their farming
through their own savings or by credit from various sources.
Most of the respondents obtain the financial support through co-operative societies
and some of the respondents go to commercial banks
Majority of the respondents are partly afraid of getting agricultural credit and they
borrowed very less amount of loan from the financial sources.
SUGGESTIONS
The major problem faced by the agriculturist is not getting a fair price for their
products. Most of agriculturists cultivate the varieties of crops, but they fail to
market their crops for reasonable or adequate prices. To eradicate this problem they
should become the members of agricultural co- operative societies or any other
agriculture based societies.
The Irrigation problem also should be focused by the government and should take
the initiative to provide the water facility through alternative methods like water
through vented dams or canal irrigation.
Compensation in case of natural disaster and it should be compulsory available to the
affected people . Subsidy benefits should be available to the farmers in large scale.
There are many agriculturists who face burden like high rate of interest on loans, so
the government should take initiative to reduce the interest rates specifically on
agricultural loans.
Many of the agriculturists are not aware of the government plans and facilities due to
lack of information, so there is a need of conducting rural programmes by concerned
department for the development of agriculturists.
There are various facilities from the co- operative societies to the agriculturists
specially the credit facilities at low rate of interest and the agriculturists need to be
informed about this and various other facilities like availability of hybrid seeds ,
fertilizer at the cheaper rate , procedure in sanction of loans,etc. through Panchayat
public meeting or any other concerned programmes,
Government should come up with effective and innovative agricultural plans which
may influence the interest of the young generation in agriculture.
In order to earn the adequate returns from the agricultural crops ,there should be fair
prices for crops or any other agro products,
The most of the agriculturists use old or outdated mechanism to cultivate the crops.
They need to be updated with modern techniques and mechanisms.
Many of the agriculturist are engaged in poultry farming ,dairy farming , jasmine
plantation etc. and these sectors need to be focused by the Government.
CONCLUSION:
Agriculture is the most important occupation for most of the Indian families. It includes farm
related activities for growing crops and rearing of animals for agricultural purposes.
Thus agriculturists cultivate paddy, areca, coconut, rubber plantation, black pepper,
vegetables and other ground fruits. People also engaged in rolling beedis, poultry,
chicken farms, piggery, dairy farming and cashew factories. Thus people cultivate
varieties of vegetables and crops throught the year. The income derived out of these crops
lead their families. The new methods and technologies have been adopted by the
agriculturists. These technologies help to reap good quality crops and products.
Government has conducted many agricultural programmes throughout the year. The
government also placed the budget to help the agriculturists in various requirements.
The various issues like the landholding problems, irrigation problems have been brought
into notice of the authorities. There has been lot of development in agriculture during the
decades. Agriculture has been the livelihood and life of the people and the people are
brought up here are most likely with the background of agricultural family.
The climatic change has been ruining the cultivation of crops, due to natural calamities
the crops have been destroyed and the fertility of land is vanished away. But the people who
live around the villages still depend on the agriculture and it brings out the income
throughout the year. The project focuses on the challenges and problems faced by the
agriculturists such as the financial problems, cost incurred in agriculture, sources of
livelihood, major problems such as irrigation, transport. The study brings out the useful
information about the Indian agriculture.
ANNEXURE
Bibliography
1. J.D. AARTHI Dhakshanaa1 and K.V.R. Rajandran (2017), Study On Challenges
Faced By The Farmers In Direct Marketing, Thanjavur, India, Research Scholar,
Department of Management Studies, Periyar Maniammai University
4. Meera Kumari and Ravigopal Singh. (2016). Production and marketing of chickpea in
Bihar: Problems and prospects for the farmers. International journal of agricultural
science and research
5. Sanjay Kumar, Sonu Jain, Munesh Kumar Shakya & Saket Kushwaha. (2015). To
study different marketing channela, marketing efficiency and problems/constraints in
vegemarketing in Varanasi District of Uttar Pradesh. International journal of sales &
marketing.
7. S.Aaron Hegde and John Deal. (2014). Areca Nut Farming in Southern India: A Case
Study. International Journal of Business and Social Science
9. Mari, J.M, Shahzadi, A.K. and Chachar, Q.I. (2011). Perception of the problems in
farming community at Hyderabad Pakistan. Journal of agricultural technology,
10. Jagdish Kumar* and Prakash Kumar(2008), Contract Farming: Problems, Prospects
and its Effect on Income and Employment Pantnagar, Uttarakhand, K. Department of
Agricultural Economics, G. B. Pant University of Agriculture & Technology,
WEBSITES:
o https://en.wikipedia.org/wiki/Agriculture
o https://www.yourarticlelibrary.com/agriculture/
o https://www.dictionary.com/browse/agricultural
o https://en.wikipedia.org/wiki/Bantwal
ANNEXURE
QUESTIONNAIRE
Dear Respondent,
I am, pursuing MBA from ICBM. I have been researching on topic “A Study on Market
Potential of Indian Agriculture Products”
So , I kindly request you to fill this form . Meanwhile your personal views will help me
in my research paper. I assure you that information provided by you will be kept
confidential and will be used for academic purpose only.Thank you.
Name:
1) Gender:
Male
Female
2) Age:
below 20yrs
20-40yrs
40-60 yrs
60yrs and above
3) Type of family:
Joint Family
Nuclear Family
4 Type of farming:
Irrigated
Non-irrigated
Field crops
Vegetables & fruits
Both
Yes
No
Organic
In-organic
Both
11) What are the problems do you face while growing crops?
Irrigation problem
Soil erosion
Inadequacy transport
Lack of mechanization
Storage facility
Scarcity of capital
Other problems (mention)