MARKETING OF REDGRAM IN SPOT MARKET VISÀ- VIS NSPOT EXCHANGE: A CASE STUDY OF GULBARGA MARKET
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Date
2012-06-30
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Abstract
Karnataka is one of the Indian states, which has experimented with the
innovative concepts like raitha sante, flour price scheme etc. in the arena of agricultural
marketing. It is also one of the few states, which has granted license for the
establishment of electronic exchanges like NSEL and NSPOT exchange. The electronic
spot exchange provides synergy among the existing marketing systems in the country
with its improvised technology and reach through the online system as it brings a variety
of benefits to the existing system such as price transparency, better price realization for
farmers and lot of arbitrage opportunities for trader community. NSPOT exchange has
started spot trading in the state in respect of redgram at Gulbarga. The present study was
undertaken in Gulbarga district for comparing the NSPOT exchange with spot market in
redgram marketing with the specific objectives of investigating the cost and return of
redgram marketing at NSPOT exchange and spot market, SWOT analysis of NSPOT
exchange over spot market. The study included both primary and secondary data. By
selling through NSPOT exchange, redgram growers were able to receive net price of Rs.
3499.55 per quintal, which was more by Rs. 299.63 in comparison with net price
received from spot market sales. The total marketing cost in NSPOT exchange was less (
Rs.152.70 per quintal) compared to the total marketing cost in spot market (261.54).
Reduction in the cost, higher price realization, availability of warehouse facility and
counter party guaranty were the strengths of NSPOT exchange. With the help of
NCDEX spot, redgram grower-farmers in the Karnataka state were able to reduce the
marketing cost by 50-70 per cent and were also able to sell their produce whenever they
wanted by paying a small charge for warehousing. The prices of the redgram in NSPOT
exchange and spot market were moderately correlated. Lack of coordination among
farmers, minimum quantity requirement in multiples of 100 quintals, poor quality of
produce etc. were some of the major problems faced by the spot exchange officials and
farmers.
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