WholeSale Market

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The consumption and production of marketed food are spatially separated. Production is primarily in rural areas whilst consumption is in urban areas. Agricultural marketing is the process that overcomes this separation, allowing produce to be moved from an area of surplus to one of need.

Food reaches the consumer by a complex network, involving production, assembly, sorting, packing, reassembly, distribution and retail stages. In developing countries the linkage between the producer and the retailer is still usually provided by assembly and wholesale markets, where wholesale marketing takes place using a variety of transaction methods. Recent years have seen an expansion of wholesale marketing in E. European and former CIS countries. On the other hand, the growth of supermarkets in many regions has seen the development of direct marketing and a reduced role for wholesale systems.

The Bio-Fertilizer Market

BIO FERTILIZERS – WHY?

Agriculture largely depends on energy intensive inputs like chemical fertilizers, improved seeds, and agrochemicals. Due to decontrol of phosphatic and potassic fertilizers, cost of fertilizers have gone up especially phosphatic and potassic fertilizers.

Since fertilizer feed stock is petroleum based, we are not sure how long we will get the raw materials to the growing need without interruption. High cost of chemical fertilizers and widening gap between supply and demand along with low purchasing power of small and marginal farmers focus the importance and need for supplementing the supply of plant nutrients with inexpensive and less energy intensive and renewable source.

Among the renewable source, organic manure and bio fertilizers are identified as major ones. The availability of organic manures is limited to meet the needs of intensive cropping. Therefore, bio fertilizers assume significance as they are cost effective, environment friendly and renewable source of supply of plant nutrients.

For year 2000 proposed production target for bio-fertilizer was 39,165Mt, which was only 4.8% of the total estimated demand (Abhay Phadke, 2001). But the actual production and the distribution of bio fertilizers are below the targeted. This shows the huge gape between potential market demand and production and also provides an opportunity for bio-fertilizer producers.

Inspite of the impressive growth rate of more than 200% in production capacity and around 300% growth rate experienced in production and consumption of bio-fertilizers in India within 6 years (i.e., from 1992-93 to 1998-99) yet it is only around 1.5% of the estimated demand potential for bio-fertilizers in the country.

www.fao.org/DOCREP/ARTICLE/AGRIPPA/658_en-03.htm

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