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May-June 2003
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Revolutionising Marketing

In an effort to modernise horticulture marketing, NDDB invests in an alternative vegetable and fruit auction set-up that offers advantages including a state-of-the-art cold storage that is believed to be the largest in the country

To give shape to the country’s first fruit and vegetable auction market, immense construction activity is underway, 35 km to the east of Bangalore on the Whitefield-Hoskote highway. Spread over 60 acres of land, Safal Fruit And Vegetable Auction Market (SAM) is an effort to provide transparency and a level playing field to both the farmer and the wholesaler by bringing them on the same business platform. An initiative of the Mother Dairy Food and Vegetable Limited (MDFVL), SAM comprises three distinct components: backward linkage, forward linkage and infrastructure.

Backward Linkage
Backward linkage is a three-tiered approach that focuses on, growth areas at tier one, where farmers’ associations are being formed. At present there are 150 such fruit and vegetable associations. These associations are informal co-operatives or self help groups, and  do not fall under the State Co-operative Act.

Each farmers’ association is headed by an elected President, a Secretary and has a Board. To become a member of such a producer association, a farmer has to grow a minimum of one-tonne produce on his farm. Producer associations have come up in Bijapur, Bagalkot, Chitradurga, Dharwad, Koppal, Bellary, Davangere, Haveli amongst others.      

At tier-two, collection centres have been set up. One collection centre serves several producer associations and forms an important link between the growth areas and the markets. It is here that all the produce is collected, cleaned, sorted and graded. This is an important intermediary step before the produce gets ready for auction. The cleaning, sorting and grading actually serves a dual purpose. It enables the farmer to know exactly the quality of his produce and thus its value whereas it enables the trader to bid according to the quality of the produce for which he pays a uniform price.

Cleaning, sorting and grading of produce at the collection centres is categorised as A, B and C. This is a four-tiered check and visually done as per the already stated criteria.

After this process is over, a quality check is done randomly to ensure that the produce is ready for the market. If there is a problem in the grading, then a re-sampling is done. If the defects persist, then the produce is downgraded. These defects are also graded in three categories – minor, major and serious, which naturally have stringently laid down ‘permissible limits’.

Crop Planning
India has for long been an ‘inside out’ economy which essentially means that whatever was manufactured was sold to the consumer. Post the de-regulation of the economy, the customer increasingly became the focal point and we have gradually turned into a buyer’s market.

Amazingly, this is happening in the field of agriculture too. Through centuries we have believed that fruits and vegetables are seasonal. But in a country having 15 agro-climatic zones, we could have our choice of vegetables whenever we want. The trick here lies in managing distribution. The National Database that is being put into place will enable..

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