Agricultural Marketing System in Nepal

Agricultural Marketing System in Nepal

—K. B. Shreshtha*

Introduction

Marketing Information System (MIS) is a set of standard or process of collecting, storing, processing,

analyzing, retrieving and dissemination of information to

suit the needs of various planners, researchers, traders,

consumers and farmers for their decision making. The information aid farmers, traders, government officials andconsumers to perform their activities effectively and efficiently leading to proper allocation of resources throughincreased competition in the markets. MIS also covers information relating to all agricultural produce. Agriculturalmarketing information system (AMIS) is a sub-system within

marketing information system (MIS). As agriculture is the

major segment of marketing in Nepal and slso being our

main concern, in this paper we will be using MIS and AMIS

interchangeably. Marketing information include information

on prices, market arrival, market trend, commodity movement, supply and demand outlook, trade and so on. Byknowing such information, a trader may expand trade, a

farmer may decide how much to produce, when and where

to sell. Similarly, a consumer may find out alternative source

of supply. Also, correct information help minimizing risk

and uncertainties and assists in enhancing competitiveness

in the market.

Existing Domestic Market Information Services for

Farmers and Traders

2. In Nepal, Marketing information service in the public

sector was carried out by the Agricultural Economic Section of the then Department of Agriculture in a limited

scale from 1960 and later upgraded as the Economic Analysis and Planning Division of the Ministry of Agriculture.

This Section/Division was initially involved in collecting

retail price in important urban market outlets of the

Kathmandu Vallely and later expanded to commercially

important districts covering agricultural commodities. This

activity was expanded in terms of geographical coverage,

types of prices, commodity coverage with the establishment of the then Department of Food and Agricultural

Marketing Services (DFAMS) in 1972. The Department also

carried out the analysis of information. Although dissemination of information was greatly improved, one of the

major features of DFAMS was mainly to serve the policy

makers and planner. Wholesaler and producer price collection was limited. The information were not disseminated

through public media for wider use.

3. In the year 1992/93, DFAMS was merged and the

Marketing Development Division (MDD) evolved under

the Department of Agriculture and since then MDD is

carrying out all the activities that used to be done by

DFAMS. The objective of MDD has been to increase the

efficiency of marketing information system and to promote and improve price information to help farmers to

plan their production inline with market demand. Schedule  their harvests at the most profitable times, decide towhich markets they should send their produce and help

the farmers to negotiate with traders for better price.

MDD’s primary target groups are farmers and secondary

are consumers, traders, government officials, policy makers and researchers. The information system of MDD

included (i) Collection procedures; (ii) data processing

and analysis; (iii) information dissemination and publication; (iv) market flow and exchange network.

Information Collection System

4. Information are collected from 75 Agricultural

Development Offices (SDO), 12 export and import points

near border, one wholesale market (Kalimati Fruit and

Vegetables wholesale market), Ministry of Agriculture

(MOA), concerned agencies like Agriculture Input Pvt.

Ltd., Custom Office, Trade Promotion Centre, Nepal Food

Corporation (NFC). In these activities planning officers

and MDD staff are involved. In gathering information

already structured formats are used. The ADO offices

have  progr amme s   ( annua l )   to  s end  informa t ion  to

MDD.

5. MDD adopts the following method of information collection: (i) farmgate price; three llaka (area) are selected

from 9 llaka. From each selected llaka a ward or village is

selected. From each selected ward or village 3 sample farmers are selected and prices are collected on monthly basis

for two months after harvest for seven agricultural commodities; (ii) wholesale price: for each commodity 3 respondents are selected using the list and the average price

is calculated; (iii) retail price: prices are collected from

three different sellers and average price of these are calculated and reported; (iv) border price: prices are collected

from a sample of three wholesalers and three retailers in the

border towns. The processed information is disseminated

through annual bulletin published by MDD, and Kalimati

Wholesale Market prices for important vegetables are broadcasted daily in radio