Page 330 - DMGT509_RURAL MARKETING

Unit 17: Role of Microfinance in Rural India

those in contract farming, but with additional flexibility and a wider range of products including Notes
inventory finance. Besides providing storage facilities, each centre rents out farm machinery,
provides agricultural inputs and information to farmers, arranges credit, sells other services
and provides a forum for farmers to market their products.

Non-traditional Markets

Similarly, Mother Dairy Foods Processing, a wholly owned subsidiary of National Dairy
Development Board (NDDB) has established auction markets for horticulture producers in
Bangalore. The operations and maintenance of the market is done by NDDB. The project, with an
outlay of 15 lakh, covers 200 horticultural farmers associations with 50,000 grower members
for wholesale marketing. Their produce is planned with production and supply assurance and
provides both growers and buyers a common platform to negotiate better rates.

17.6 Apni Mandi

Another innovation is that of The Punjab Mandi Board, which has experimented with a ‘farmers’
market’ to provide small farmers located in proximity to urban areas, direct access to consumers
by elimination of middlemen. This experiment known as “Apni Mandi” belongs to both farmers
and consumers, who mutually help each other. Under this arrangement a sum of 5.2 lakh is
spent for providing plastic crates to 1000 farmers. Each farmer gets 5 crates at a subsidized rate.
At the mandi site, the Board provides basic infrastructure facilities. At the farm level, extension
services of different agencies are pooled in. These include inputs subsidies, better quality seeds
and loans from Banks. Apni Mandi scheme provides self-employment to producers and has
eliminated social inhibitions among them regarding the retail sale of their produce.

Figure 17.3: Scene of Apni Mandi in Rural India

Findings

1. Considerable gap between demand and supply for all financial services.

LOVELY PROFESSIONAL UNIVERSITY 325