RURAL URBAN LINKAGES: A CASE OF RYTHU BAZAR

By
C.REVAPATHI, Planner

1.1 Introduction
Vegetables are important crops cultivated by Indian farmers. They are rich source
of certain essential vitamins, minerals, proteins and dietary fiber that provide additional
calories. Increased production of vegetables has great potential to enhance the nutrition of
the rural and urban poor as well as to increase their incomes and provide greater
employment opportunities

Flow of goods between villages and towns, together with flow of people, money
and information, are an essential elements of the linkages between rural and urban areas.
Demand from urban consumers can stimulate agricultural production and increase the
incomes of farmers. Producers in villages close to towns and with good access to
transport facilities can be in a favorable position to supply urban markets with perishable,
high-value fresh vegetables and fruit, since short transport time reduce costs and the risk
of spoilage.

India is an agricultural economy. In India large number of people’s occupation is

agriculture. Our Gandhiji said that villages are backbones of development. In olden days,
there is one system called Barter system. In this system, there is no place for money
transaction, people exchange their produces. At present farmers are using new
technologies for cultivation. Now a days all of us hearing about Rythu bazars. Rythu
bazars are a new concept where farmers have direct relationship with consumers.

The rythu bazar concept bridges the gap between rural and urban area as well as
farmers and producers. From many rural area farmers are coming and selling their
produces to consumers without a middlemen. This study helps to understand relationship
between the rural and urban areas through exchange of goods.

1
1.2 AIM:
Study the role of Rythu bazar in strengthening the rural and urban areas.

1.3 OBJECTIVES
1. To study the farmer’s socio-economic conditions.
2. To study the consumer’s purchasing patter.
3. To study the facilities in the rythu bazar.
4. To study the transportation facilities.

1.4 METHODOLOGY
The methodology of the project is essential to meet the stated objectives and scope of the
project work.

Aim

Objectives

Data collection

Primary data Secondary data

Visual analysis Concept of Rythu bazar

Surveys Farmer’s details
Transportation details

Analysis of data

Proposals

Conclusion

2
1.5 Need of the study
The rythu bazar concept bridges the gap between rural and urban area as well as farmers
and producers. From many rural areas farmers are coming and selling their produces to
consumers without a middlemen. This study helps to understand relationship between the
rural and urban areas through exchange of goods.

1.6 Scope and limitations

In Andhra Pradesh there are 120 rythu bazars through out the state. In Hyderabad there
are 9 rythu bazars. Due to time factor, the study is restricted to rythu bazar in
Mehdipatnam. Mehdipatnam Rythu bazar is a first rythu bazar started in 1999.At present
it is successfully running. More than 450 farmers are getting benefit through this Rythu
bazar.

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 Chapter-2
LITERATURE REVIEW
2.1 Introduction

It is difficult to frame a definition of the term “urban”. While the distinction

between “rural” and “urban” is a familiar one and is commonly recognized in everyday
language, the criteria employed are not every exact and scientifically precise.

In the context of India, the census reports defined urban areas are
1.those places have a local authority like municipality, corporation, cantonment board,
notified area committees,
2.all other places which satisfy the requirements of a minimum population of 5000,
3.a minimum population density of 400 persons per square kilometers,
4.at least 75% of the male working population should be engaged in non-agricultural
pursuits.

In rural area main occupation is agriculture and they have a local authority like
panchayats.

Understanding rural-urban differences and rural-urban linkages

There is a need for an understanding of development that

o Encompasses both rural and urban populations and the inter-connections between
them;
o Acknowledges that where people live and work and other aspects of their local
context influences the scale and nature of deprivation (whether they live or work
in rural or urban areas); and
o Recognizes that there are typical ‘urban’ and ‘rural’ characteristics that cause or
influence people’s livelihoods, although care is needed in making generalizations
because of great diversity between different urban locations (and rural locations).

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2.2 Rural Urban interface:
Table 1 - Rural Urban interface
RURAL
Livelihoods drawn from
crop cultivation, livestock,
forestry or fishing (i.e. key
for livelihood is access to
natural capital)
Access to land for housing
and building materials not
generally a problem
More distant from
government as regulator
and provider of services
Access to infrastructure and
services limited (largely
because of distance, low
density and limited capacity
to pay?)
Less opportunities for
earning cash; more for self
provisioning. Greater
reliance on favourable
weather conditions.
Access to natural capital as
the key asset and basis for
livelihood
Urban characteristics in rural
locations (e.g. prosperous tourist
areas, mining areas, areas with
high value crops and many local
multiplier links, rural areas with
diverse non-agricultural
production and strong links to
cities .... )
URBAN
Livelihoods drawn from
labour markets within non-
agricultural production or
making/selling goods or
services
Access to land for housing
very difficult; housing and
land markets highly
commercialized
More vulnerable to ‘bad’
governance
RURAL URBAN INTERFACE
Access to infrastructure and
services difficult for low-
income groups because of
high prices, illegal nature of
their homes (for many) and
poor governance
Greater reliance on cash for
access to food, water,
sanitation, employment,
garbage disposal.......
Greater reliance on house as
an economic resource
(space for production,
access to income-earning
opportunities; asset and
income-earner for owners –
including de facto owners
Rural characteristics in urban
location (urban agriculture,
‘village’ enclaves, access to land
for housing through non-
monetary traditional forms.......)
5
 The table emphasizes some of the most ‘rural’ characteristics of people’s
livelihoods in the column on the left and some of the most ‘urban’ characteristics in the
column on the right. These should be regarded as two ends of a continuum with most
urban and rural areas falling somewhere between these extremes.

For all the contrasts between ‘rural’ and ‘urban’ highlighted in the figure, there
are many exceptions. It is also useful to see in the middle of the continuum between
‘rural’ characteristics and ‘urban’ characteristics a ‘rural-urban’ interface in which there
are complex mixes of ‘rural’ and ‘urban’ characteristics.

In short, understanding rural-urban linkages matters because it provides the basis

for measures that can improve both urban and rural livelihoods and environments.

For instance, many of the areas around prosperous cities or on corridors linking
cities have a multiplicity of non-farm enterprises and a considerable proportion of the
economically active population that commute daily to the city or find work seasonally or
temporarily in urban areas. Many rural areas also have tourist industries that have
fundamentally changed employment structures and environmental pressures.

The difference between urban centres and rural areas may seem so obvious that
definitions should not be an issue. However, there can be major variations in the ways in
which different nations define what is an urban centre. The criteria used include
population size and density, and availability of services such as secondary schools,
hospitals and banks. However, the combination of criteria applied can vary greatly. Even
the population thresholds used can be different: for many African nations it is 5,000
inhabitants, while for most Latin American and European nations it can be as low as
2,000 or 2,500 or even just a few hundreds inhabitants.

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2.3 Rural Urban Linkages:
RURAL-URBAN
LINKAGES/FLOWS

PEOPLE 1
RURAL URBAN
• labor commuting/migration FUNCTIONS/
STRUCTURE/
• other migration (e.g., education) ROLES
STRUCTURAL
• shopping/visiting/selling
CHANGE
• Non-agricultural
• Socio-economic PRODUCTION 2 employment
Structure/ • upstream linkages (inputs)
Relations • downstream linkages • Urban services
(processing, manufacturing)
• Rural Economy • Production supplies
(Sectors) COMMODITIES 3
• inputs • Non-durable and
• Rural Production • consumer non-durables/durables durable goods
Regimes • rural products
• Markets for selling
• Natural CAPITAL/INCOME rural products
4
Environment • value added
& Resources • savings/credit • Processing/
• migrant remittances manufacturing
• Infrastructure
Built • Information on
Environment INFORMATION 5 employment,
• production/sales/prices production, prices,
• welfare/social/political welfare services
• employment

• Agrarian reform POLICY INTERVENTIONS • market centers

• Agriculture intensification/ • commercial outlets
diversification • Roads/transportation • urban services
• Cooperatives • Electricity • banking/credit
• Enviromental programs • Communications • urban infrastructure
• Irrigation, storage facilities and • Seaports/airports • communications
Other rural infrastructure services

Fig 1:Rural – Urban Linkages

Five types of flows are identified in Fig 1: people, production, commodities, capital, and
information. Each has multiple components and impacts. Commodities, for example,
take the form of production inputs, marketed rural products, and daily wage goods (non-
durables) and durable goods for final consumption. Each may have quite different spatial
linkage patterns as well as variable benefits to rural and urban areas.

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2.3.4 Identification of Linkages

Production linkages:
In production linkage the main products are milk, paddy, vegetables and poultry. The
production linkage is one of main linkage between rural and urban areas.

Flow of people:
The flow of people for various purposes like education, health, entertainment services
and etc. Short term and permanent migration is main characteristic of development and
an important form of urban – rural linkages.

Communication linkage:
It includes the transportation, telephone, post office and also drinking water supply.

Transportation linkage:
The transportation network is of vital in the process of development of an area. This links
the rural and urban areas.

Market linkage:
Market is a place where business is conducted. It is one of the important rural urban
linkages.

Rural-Urban Linkages help rural producers get better prices for their goods and improve
their financial stability. They also connect urban consumers with pressing issues and
concerns for nearby rural areas.

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 Chapter 3
RYTHU BAZAR
3.1 Introduction
India is an agricultural economy. Vegetables are important crops cultivated by
Indian farmers. They are rich source of certain essential vitamins, minerals, proteins and
dietary fiber that provide additional calories. Increased production of vegetables has great
potential to enhance the nutrition of the rural and urban poor as well as to increase their
incomes and provide greater employment opportunities.

The daily per capita consumption of vegetables in India is only 140 gms, which is
much less than the requirement of 300gms for a balanced diet. The low per capita
consumption is mainly due to low productivity levels in vegetable crops. Keeping in view
the role of vegetables in providing nutritional security to people, Government of India
have targeted the vegetable production to 120 million tones in area of 8million ha by
2000A.D.If the farming community wants to take part in production programs, they must
be assured good price for their commodities through good marketing system. In spite of
creating so many marketing societies and commodity boards in the organized sector the
major percentage of the farming community depend on private agencies for their
commodities. In this process the middlemen getting benefited. There is no direct link
between farmers and consumers. Direct marketing bridges the gap between farmers and
consumers. The direct marketing promotes the direct sales by the farmers to the
consumers. It is reported that the consumers prices declined by the 20 to 30% and
produces received the prices rose by 10 to 20% in South Korea as a consequence of direct
marketing of Agricultural products.

This model has been experimented in Punjab and Haryana as Apni mandis, in
Tamil Nadu as Farmer’s markets and in Andhra Pradesh as Rythu bazars.

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3.2 Certified farmers markets

What is a Certified Farmers' Market?

California Certified Farmers' Markets are "the real thing," places where genuine
California farmers sell their fresh picked crops directly to the public in over 350
communities throughout the state.

The certified farmers market concept is an effort to re-establish the traditional link
between farmers and consumers in California. Put simply, certified farmers' markets
(CFM's) are "the real thing," places where genuine farmers sell their crops directly to the
public. It is where the agrarian community relates to the urban community.

More specifically, a CFM is a location approved

by the county agricultural commissioner where
certified farmers offer for sale only those
agricultural products they grow themselves.
California Certified Farmers' Markets are
operated in accordance with regulations
established in 1977 by the California Department of Food and Agriculture. Only a
handful of CFM's were in the California direct marketing program back then. There are

10
over 400 communities with Certified Farmers Markets in the State now and the number is
growing every year.

Certified Farmers Markets provide multiple benefits for small farmers, consumers
and the community. For farmers, the certified farmers markets provide an outlet
especially suited to moving smaller volumes of produce, thus creating a marketing
channel outside of the traditional large volume distribution systems. CFM's also allow
farmers to sell field run produce not restricted to pack and grade standards. This enables
the farmer to sell tree ripened fruit which is too delicate for the packing and shipping
process. It also increases profits for the farmers because of the cost savings.

Consumer benefits at CFM's are

considerable. The number one reason consumers
shop at Certified Farmers' Markets is quality.
Fresh picked, vine and tree ripened quality
produce continues to attract regular patronage at
the CFM's in California today. Cost savings is also attractive to customers. This is
possible because the direct sales by farmers to the consumer eliminates the cost of
middleman marketing.

Communities benefit from CFM's in many ways. Certified Farmers Markets are
non profit community service organizations which contribute to the social and economic
welfare of the town or city they operate in.

The markets produce a strong sense of community identity, bringing people from
diverse ethnic and other backgrounds together. They also serve to unite the urban and
rural segments of the population. This rare meeting of farmers and consumers serves as
an educational experience whereby customers learn about their food sources, have access
to nutritional information, engage in a multi-cultural experience and become aware of
agricultural issues. CFM's truly have become the face and spirit of the communities they
serve.

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3.3 National association of farmers markets

The concept of Farmers' Markets is obviously not a new one. Farmers have bartered and
sold goods as far back in history as agriculture itself.

Location of farmers markets

1.Manchester
2.Birminghum
3.London
1 4.Bristol

3
4

It is generally accepted by most farmers' markets that stall holders must have
grown, bred, caught, pickled, brewed or baked the goods themselves. Their main
emphasis is to help local producers and processors to sell their goods direct to the public,
near their source of origin, creating benefits to them, the environment and the local
community. The selection of produce available at a Farmers' Market will vary with
season and location. However you are likely to be able to find a delicious selection of
vegetables, fruit, meat, eggs, bread and cakes, jams, fruit juices and dairy produce.

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The aims of the National Association of Farmers' Markets are:

 To promote Farmers' Markets and assist in the formation of new

ones
 To support existing Farmers' Markets and enable them to expand
and remain self-sustaining
 To define and accredit the Farmers' Market concept and grant
accreditation only to those markets which conform to the agreed
criteria
 To represent the interests of Farmers' Markets and lobby for
measures that would help them
 To seek support of the range of Regional, National and European
agencies

Guidance Notes on the interpretation of the Criteria

1. Locally produced

To reach NAFM standards, your market must define an area as local from which
the producers come. The area that you define as local is important for public perception
of 'local food'.

There are two types of local definition that NAFM recognize:

Local as a radius

 Local is a defined as a radius from the market. A definition of 30 miles is ideal,

up to 50 miles is acceptable for larger cities and coastal or remote towns and
villages.

Local as a county boundary

 The definition of local may also be a county boundary or other geographic

boundary such as a National park.

Producers from further afield may attend the market if there is no suitable local producer
of a given product.

It is recommended that no producer should come from beyond 100 miles of the market.

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Markets that accept producers from beyond their definition of local should include a
clause that states "preference will be given to the most local producer when a space
becomes available at the market, without compromising quality".

2. Principal producer

The stall should be operated by someone directly involved in production, not just
in other aspects of the producer's business. One of the key principles of a Farmers'
Market is for the consumer to have a direct relationship with the producer.

Producer co-operatives and community associations such as local allotment societies or

Women's' Institute groups may be agreed as principal producers on a case by case basis
by the local market. In all cases they must be bone fide producers. (See notes on
collaborative stalls)

3. Primary, own produces

Primary produce will have been grown or reared on the producer's land, for
livestock and plants this means grown or finished (having spent at least 50% out it's life)
on the producer's land. Preference should be given to the largest percentage of products
life cycle spent on the producer's land.

Game shot or caught within the defined local area may be sold at farmers markets
by the person licensed to hunt the game

Fish at a Farmers Market, ideally, should be sold by the fisherman. A

representative of a number of known local boats may attend the market so long as the
fishing grounds are known, local, inshore water and receipts can be produced when
requested by Trading Standards. This is to allow for the irregular nature of fishing and
time spent ashore.

4. Secondary, own produce

Anyone processing produce or adding value is a secondary producer. All

processed goods must contain at least one ingredient of origin from within the defined
local area (not merely bought locally). The minimum local ingredient is 10% of each
product. Receipts should be kept as proof of origin for inspection be Trading Standards.

Collaborative groups
Groups of small scale producers, either primary or secondary, may come together as a
collaborative group. The criteria for primary and secondary produce will apply with the
following exception - each producer should attend one market in three.

In addition:

 All producers involved should complete separate application forms

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  All producers involved should have their own insurance
 Produce must be clearly labelled with the producer's name and place of business
in addition to legal labelling requirements

5. Policy and information

A Farmers market should be clearly labelled as such and separate from any other retail
market or shop.

Each Farmers' Market should be operated in accordance with Trading Standards,

Environmental Health, alcohol licensing, market charters and other relevant legislation.

The policy of each Farmers' Market in terms of sourcing locally produced food and
encouraging sustainable methods of production should be available to customers.

Producers must produce clear written information about production methods, which shall
be available to any consumer who requests it. The market must also publicise the
availability of this information.

Markets should for the time being included a policy that no genetically modified
organisms are knowingly sold or included in products sold at the market.

Markets may establish other standards, which they feel, are appropriate in their locality,
e.g. compliance with minimum animal welfare standards.

6. Other criteria

Markets may set other rules, which do not conflict with the main principles set out in the
criteria.

The prime aim of the market must be to develop a vibrant environment where consumers
and producers are brought together.

3.4 Farmers markets in Tamil Nadu:

Tamil Nadu government established first farmers market in Madurai on 14-11-99 and
planned to organize 100 such farmers markets during 2000 A.D.Already about 30 farmers
markets functioning in various parts of Tamil Nadu.

15
 The stated objectives of Farmers’ Markets in Tamil Nadu are:
 To eliminate middlemen and traders from the marketing of vegetables in the
 Farmers’ Markets
 To establish direct contact between farmers and consumers
 To maintain stability in the prices of fresh vegetables and fruit
 To increase coordination between the Agriculture and the Horticulture
Departments
 To act as information centres for the marketing of fresh vegetables and fruit
 To promote awareness and provide training in relation to the preservation and
 packaging of perishable fresh vegetables and fruit.

3.5 Rythu bazaars in Andhra Pradesh

3.5.1 Introduction

Andhra Pradesh is the second largest producer of fruits, vegetables and flowers in
the Country. The predominantly grown fruit crops are mango, banana, cashewnut, sapota,
guava and pomegranate. Brinjal, lady’s finger, onions, tomatoes, beans and gourds are
the major vegetables produced in the State.

Regulated Market Yards for fruits and vegetables are functioning only at few
centers in the State. The Marketing system for fruits and vegetables is in the hands of
middlemen. Middlemen exist at various levels between the farmer and the consumer and
exploit through malpractices in weighments, handling and payments.

The farmer's share in the consumer's rupee is estimated to be just 40 paise. In

addition the estimated losses in handling of vegetables in the traditional channel of
marketing is about 30 to 35%.

16
 Large numbers of small farmers are unable to effectively bargain for a better price
in the wholesale markets. Inefficiencies in wholesale markets result in a long chain of
intermediaries, multiple handling, and loss in quality and increase the gap between
producer and consumer prices. Intermediaries and system inefficiencies consume a
disproportionate share of consumer prices. Large number of small retailers, each handling
small quantities, creates high overheads leading to high margins on produce. Rythu
Bazars will operate outside the purview of Agricultural Market Committees to be
managed by Estate Officers and under the control of Joint Collectors.

It was therefore felt necessary to evolve an alternate marketing strategy where

both growers and consumers are benefited through Rythu Bazars. Rythu Bazars are thus
planned for direct interface between the farmers and the consumers eliminating
middlemen. Rythu Bazars, if function effectively, can act as price stabilization centres.

3.5.2 Objectives:

 To ensure remunerative prices to the farmers and provide fresh vegetables to

consumers at reasonable rates fixed everyday.
 Facilitate prompt realization of sale proceeds to farmers without any deductions.
 Curb malpractices in weighments – provide vegetables with correct weighments
to consumers.
 Provide direct interface between farmers and consumers – eliminating
intermediaries in trade.

3.5.3 Location of rythu bazars:

Rythu Bazars are located on Government lands identified by the District

Collectors. The location shall have to be convenient both for the farmers and consumers.
The criteria for opening of new Rythu Bazars are the availability of atleast one acre of
land in strategic locations, and identification of 250 vegetable growing farmers including
10 groups.

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3.5.4 Infrastructure facilities:

Required infrastructure is provided in all Rythu Bazars with funds of Agricultural

Market Committees. The temporary structures in Rythu Bazars are replaced by semi
permanent structures to provide adequate protection against sun/rain to the producers and
the users alike.

The Rythu Bazars shall have to ensure:

 Adequate number of Sheds for farmers to sell their produce.

 Adequate arrangements for supply of drinking water.
 Toilet facilities with proper sanitation
 Proper arrangements for parking of vehicles.
 Arrangements for removal of garbage and cleaning the Market by local body.
 Facilities for storage of unsold produce like Zero Energy Cool chambers.
 Weighing scales should be provided to all the farmers with proper arrangements
for issue and collection.

3.5.5 Identification of farmers / villages.

Proper Identification of a cluster of villages and genuine farmers and their marketing
linkage to Rythu Bazars is key to the successful functioning of a Rythu Bazar.

VILLAGES:

It is desirable to identify the farmers from a cluster of 10-15 predominantly vegetable

growing villages to enable provision of horticulture services, inputs and transportation
arrangements to the Rythu Bazars effectively.

Horticulture Department may identify such clusters immediately for all the Rythu Bazars.

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FARMERS:

Identification of farmers shall be done jointly by a team consisting of:

(1) M.R.O.

(2) Horticulture Officer/Consultant

(3) Agricultural Officer, in the villages.

In the absence of Horticultural Officer/Consultant services of Assistant Director,

Agriculture may be utilised.

The team should finalise the schedule of visits to the villages and publicise it adequately
among the vegetable-growing farmers.

As per the schedule the team should visit the villages and convene a meeting of vegetable

growing farmers.

In the meeting they should explain about the advantages of the Rythu Bazars to the

farmers through provision of

(a) Horticultural services

(b) Seed supply at subsidized rates

(c) Transportation arrangements

(d) Price mechanism

(e) Elimination of middlemen to motivate them to reap the benefits.

After the meeting, the team should visit fields of the willing farmers and issue temporary

identity cards on the spot.

Temporary identity cards issued should be replaced by laminated photo identity cards

within a week.

Tenants may also be given identity cards on field verification.

19
Farmers may be formed into groups as per their choice. It may be explained to them that
each group can send one or more members on rotation for sale of vegetables in Rythu
Bazars. They may also be extended the benefits given to the Self Help Groups by the
government.

3.5.6 Issue of photo identity cards:

Identity cards should contain the following details:

 Name of the farmer

 Address
 Extent of land
 Vegetables grown
 Photograph of farmer/ farmer with his family members/and/ or farm
servant.
 In case of farmers groups, photograph of the group members.
 Photograph must be attested by M.R.O or Estate Officer.

Identity Card must be laminated

Register containing the details of the Identity Cards issued shall be maintained at the

MROs Office and with Estate Officer and be made available for inspection.

Validity of Identity cards shall be six months from the date of issue.

Renewal of the Identity cards shall be completed atleast 15 days before expiry.

3.5.7 Allotment of shops to farmers by estate officer

Only the farmers/groups with valid photo identity cards should be allowed to sell in

Rythu Bazar.

The Daily allotment of shops shall be on First Come First Serve basis on rotation.

No one shall be allowed to occupy the same shop continuously.

Farmers shall not be allowed to reserve the shop by keeping vegetables in the night.

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3.5.8 Preventing the entry of middlemen

Adequate participation of farmers is the best way to prevent the entry of middlemen.

The entry of middlemen (retailers / wholesalers) defeats the purpose of setting of Rythu
Bazars.

No seller shall be allowed to enter into Rythu Bazar without valid photo identity card.

If any farmer comes to Rythu Bazar without any identity card, he should be directed to

Horticulture Consultant or M.R.O. for obtaining the identity card.

The bogus identity cards shall be cancelled immediately.

Farmers should be allowed to sell the vegetables grown by them only.

Proper selection of Self-Help Groups.

Self-help Groups to sell only those vegetables, which are not grown in the District and

other essential commodities supplied by the Government Agencies.

Taking deterrent action against the persons responsible for issuing cards to ineligible

persons.

Estate Officer will be held responsible for allowing persons without proper identity cards.

Frequent surprise inspections by Joint Collector and others and leaving their remarks in

the inspection register without fail.

3.5.9 Transport arrangements

Joint Collectors have to ensure adequate transport arrangement in consultation with

APSRTC after ascertaining specific requirement from the estate officers and farmers.

This may be reviewed once in 15 days.

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3.5.10 Sanitation

The premises should be kept neat and clean.

Removal of garbage, cleaning the market, maintenance of toilets may be entrusted to the

local body, private agency, or Self-help Group.

Required funds for the above may be met from the income generated through auction of

parking space, canteen, etc.

Farmers and Self Help Groups should clean the space allotted to them and put the

garbage at the places specified.

Funds allotted to Rythu Bazars wherever necessary may be utilised for proper sanitation

in the market.

3.5.11 Price fixation

The price fixation in Rythu Bazars shall be through a committee of farmers and the Estate

Officer.

Adequate care should be taken to fix the prices realistically. If the prices in Rythu Bazars
are higher than the local market rate, there is no incentive to consumers. And if the prices
fixed are lower than the wholesale market rates there are no incentives to farmers.

The prices generally in Rythu Bazars shall have to be 25% above the wholesale rates and

25% less than the local retail price.

Marketing Department shall provide the wholesale prices to Estate Officer for realistic

price fixation.

Estate Officer should also make his efforts to obtain the wholesale and retail prices.

Whenever Marketing Department is not able to provide wholesale prices by 6.00 A.M in

the morning, previous day's wholesale price may be used.

For the different varieties (clearly distinguishable) of the same vegetable, different sale

22
price may be fixed.

The Estate Officers shall ensure that prices are displayed prominently at strategic

locations. The Estate Officers shall ensure strict enforcement of prices fixed.

The Estate Officers shall resolve all disputes relating to sale of vegetables.

3.5.12 Lease of structures / parking space

Rythu Bazars should generate sufficient income for maintenance through auction of

parking space, canteen etc.

Joint Collector is the competent authority for finalisation of auction.

The money realised by way of auction shall be credited to Rythu Bazar funds and the

funds can be used for the purpose of :

1. Sanitation.

2. Drinking water facilities.

3. Purchase and repairs of weighing scales, and maintenance of Rythu

Bazars.

The Estate officers shall maintain proper accounts / cash books etc.

3.5.13 Duties of the estate officers:

The Estate Officers are responsible for :

 Upkeep and maintenance of Rythu Bazars.

 Daily allotment of space on First Come First Serve (FCFS) basis.
 Provision of weighing scales to farmer’s daily and collecting them back in the
evening.
 Formation of price fixation committees.
 Convening of the price fixation committee meetings everyday morning for
realistic price fixation.
 Price fixation.

23
 Ensure sales at the prices fixed.
 Conducting a meeting of all farmers once in a week to assess the functioning and
to take course corrections and send the minutes to Joint Collector and Director of
Marketing.
 Prominent display of prices at strategic points.
 Use of public address system for announcement of prices.
 Prevention of entry of middlemen.
 Cleanliness / sanitation.
 Proper supply of power and water.
 Proper transport facilities to farmers.
 Proper recording of daily arrivals and sales.
 Prompt furnishing of returns and reports to the Joint Collectors / Director of
Marketing.
 Encourage sale of vegetables not grown locally by the Self-Help Groups.
 Ensure that the farmers sell vegetables mentioned in the identity card.
 Co-ordinate with Horticulture officers / consultants in timely distribution of seed
material / inputs to promote Horticulture production.
 Prevent entry of antisocial elements especially in the nights.
 Proper maintenance of Accounts and inspection Register.
 Settle disputes arising on account of quality, price etc between sellers and
purchasers.
 Lease of space for parking / canteen etc and realisation of lease amounts.
 Organise proper watch and ward.
 Prompt action on adverse news items relating to Rythu Bazars.
 Problems of transportation, middlemen, requirement of additional infrastructure
and other problems may be taken to the notice of Joint Collectors as and when
necessary.

24
3.5.14 Role of horticultural consultants

Adequate participation of farmers is sine-qua-non for the successful functioning of Rythu

Bazars and this is the primary responsibility of Horticultural Consultant. Therefore,
Horticulture Consultant should motivate, identify and ensure regular attendance of
vegetable growers to reap the benefits of Rythu Bazars.

Visiting Rythu Bazars regularly and assess the daily requirement of vegetables.

Based on the requirements, action plan should be prepared for production and regular

supply of vegetables by identifying required number of farmers.

Regular visits to identified villages and providing pre/post harvest consultancy to the
identified farmers.

Timely supply of quality seeds at subsidised prices to the farmers.

To guide the farmers in production of off-season vegetables.

To organise training to vegetable growers.

To maintain farmer-wise, village-wise, Mandal-wise area under different vegetables and

varieties and quantities produced and sold in Rythu Bazars.

Assist the Estate Officer in managing Rythu Bazar.

To interact and coordinate with personnel of Agriculture, Horticulture and Marketing

departments.

To maintain tour diary and submit monthly diaries to Estate Officer, Assistant Director of

Horticulture and Joint Collector.

Assistant Director of Horticulture/Deputy Director of Horticulture shall send a fortnightly

report after inspection(s) in the prescribed proforma to commissioner Horticulture,
Director of Marketing and Joint Collector.

25
3.5.15 Role of agriculture officers:

The Agriculture Officers shall co-ordinate with Horticulture Consultants in the

distribution of Seed/Implementation of Horticulture production plan.

Motivate farmers in disposal of produce in Rythu Bazars.

Coordinate with Horticulture Consultant in proper identification of Villages/Farmers for

Rythu Bazars.

Co-ordinate with Horticulture Consultant / Estate Officer in elimination of Middlemen in

Rythu Bazars.

Coordinate Estate Officers in managing Rythu Bazars.

3.5.16 Arrangements for sale of vegetables not grown locally.

Vegetables grown within the district to be sold only by the farmers.

Rythu Bazars have to ensure availability of all vegetables whether grown locally or not.

The import and sale of vegetables not grown locally or not grown in that season may be

organised through self-help groups.

Self-help groups shall not be allowed to sell the vegetables grown within the district.

District administration should assist the self-help groups in procuring vegetables through

proper tie ups.

The daily returns of transactions at all Rythu Bazar are made available through computer

network to aid decision making in the transport of vegetables from the low price areas.

3.5.17 Sale of essential commodities in rythu bazars:

All essential commodities except rice may be sold through self-help groups.

Sale of rice at reasonable prices may be organised through the rice Millers Associations.

26
Sale of essential commodities viz., Rice, Oils, Pulses, Tamarind, Dry chillies and Onions

to be organized at all Rythu Bazars.

Govt. agencies (Civil Supplies Corporation, OILFED, MARKFED) shall sell their

commodities through Self Help Groups.

3.5.18 Self-help groups:

Care should be taken to ensure that the Self Help Group functions as a group and not as

an individual in the conduct of transactions.

They shall sell only those Vegetables not grown in the District.

Self Help Groups should be encouraged to sell the vegetables not grown locally and other

essential commodities in the Rythu Bazars.

Joint Collector should select Self Help Groups in consultation with PD, DRDA and

Municipal Commissioner based on group activity, savings amount in the bank and their

willingness to work for lower profit margins.

Selected groups should function with active participation of all the members of the group

and not by one or two individuals.

3.5.19 Maintenance of registers/records.

The Estate Officers shall ensure proper maintenance of Registers/Records Reports and

inspection register.

Furnish daily reports of transactions as per format appended before 11.00 A.M.

Furnish weekly returns of transactions as per proforma on every Friday.

Report fortnightly on 1st and 16th of every month particular of as per proforma as check

memo on Rythu Bazar.

Maintain the following Registers as per the format appended

27
Register of inspections

Register of Farmers

Register of Dead stock

Register of Self-help Groups.

Accounts Register.

3.5.20 Construction of permanent rythu bazars:

Keeping in view the present and future requirements and the response from the farmers

and consumers, permanent Rythu Bazars are planned at all the centres.

An area of 1.00 acre is essential for construction of Rythu Bazars.

Construction of permanent Rythu Bazars is entrusted to APIIC for speedier execution.

The permanent Rythu Bazars shall be occupied as and when execution is completed.

3.5.21 Communication facilities :

Telephone, Fax and Computers should be installed in all Rythu Bazars.

The Estate Officers shall use the above for prompt submission of returns and receipt of
information for better management.

Networking of all Rythu Bazars enable Estate Officers in realistic price fixation and helps

the farmers, Self Help Groups in taking advantage of the prevailing prices in different

markets.

3.5.22 Training:

Commissioner, Horticulture and Director of Marketing shall organise training programs

at periodic intervals for Estate Officers and Horticulture Consultants.

28
3.5.23 Role of joint collectors:

Joint Collectors are responsible for the effective functioning of Rythu Bazars in the

district. The Joint Collectors shall hold periodical meetings with farmers/ Consumers and

take corrective measures.

Appointment of Estate Officers and Horticulture Consultants.

Holding weekly meetings with Estate Officers.

Inspection of atleast one Rythu Bazar every week.

Coordinate with APSRTC officials for adequate transport arrangements.

Ensure proper co-ordination of Agriculture, Horticulture, Revenue, Marketing, Transport

and Local Bodies for the smooth functioning of the Rythu Bazar.

29
 Chapter 4
MEHDIPATNAM RYTHU BAZAR

4.1 Introduction

This is the first Rythu Bazar established in A.P., on 1st January 1999. It is located in
survey number 39/1 of Gudimalkapur village of Golkonda Mandal and the extent of
premises is 8,349 sq.yards.

Location of rythu bazaar in Andhra pradesh location map of rythu bazar

This Rythu Bazar is centrally located at bus terminal of Mehdipatnam. Semi permanent
structures where constructed in Rythu Bazar to provide adequate protection against
Sun/Rain to the producers and the users alike. Arrangements for providing drinking
water, toilet facilities with proper sanitation and parking facilities are made in the Rythu
Bazar.The producers/farmers are supplied weighing scales with weights for selling their
produces. All these facilities are provided to he farmers and customers free of cost.

The Estate Office is equipped with all the latest facilities like, Telephone, Fax and
Computer with Internet facility.

Date of functioning of Rythu Bazar : 1st January 1999

Number of villages covered : 64(18Mandals)
Number of varieties of vegetables coming to Rythu Bazar : 35
Average quantity of arrivals a. perday 19.22 tons
b. per month 576.00 tons

30
Average number of consumers visiting Rythu Bazar a. perday 32,000
b. per month 9.60,000

Average number of Rhythus coming to Rythu Bazar a. per day 450

b. per month 13,500
4.2 Farmers details
Table 2 - No.of.mandals covered by Mehdipatnam rythu bazar
S.No Mandal 16shankarpalle
1 bantaram 17serilingampalle
2 chevella 18vicarabad
3 doma
4 kandukur
5 maheswaram
6 marpalle
7 medchal
8 moinabad
9 mominpet
10 nawabpet
11 pargi
12 pudur
13 rajendranagar
14 shabad
15 shamshabad

A team is constituted with Mandal Revenue Officer, Horticulture Officer and

Agriculture Officer which visit the villages, inspect the fields and identify the farmers.
The team has identified 1,600 farmers in 114 villages of 18 Mandals of Ranga Reddy
District.

31
4.3 Transport facility

The A.P.S.R.T.C is playing a major role in the smooth functioning of the Rythu
Bazar as it brings the farmers from their villages to Rythu Bazar by 6:OOA.M. ,12:00
Noon and 3:00 P.M. and takes back home from the Rythu Bazar. The A.P.S.R.T.C is
plying 130 trips to Rythu Bazar from 64 villages every day, by operating 25 buses on
different routs. About 600 farmers will bring their produces every day to the Rythu
Bazar.

4.4 Allotment of stalls

Stalls are allotted to the farmers on first come first serve basis daily. The farmers
are not allowed to occupy the stall permanently. No fee is collected from the farmers.

4.5 Prices fixation

The market committees, one at Secunderabad, and another at Gudimalkapur

Hyderabad, will every day communicate the moderate wholesale prices of vegetables
through fax between 7.-30A-M. and 8:00 A.M.. Basing on the same, the prices of
vegetables are fixed in consultation with the farmers committee, witch may be 20% -
25% higher than the whole sale price and also lower than the local retail market prices in
the same range.

The prices of vegetables are being mentioned on the boards displayed at every
stall in order to have awareness among the consumers and fanners for the purchase/sale
of vegetables. Apart from the price board at every stall two huge price boards are
arranged at the two gates showing the price list of all vegetables.

4.6 Sale of vegetables to residential schools

This Rythu Bazar under take bulk supply of vegetables to the social welfare
hostels as per their requirements, which encourages the farmers to bring more and better
quality of vegetables.

32
4.7 Public address system
Prices of vegetables are frequently announced through public address system to
create awareness of the rates of the vegetables among the consumers as well as farmers.

4.8 Providing of coins

The farmers and the customers are facing lot of problems due to lack of change
specially 50ps and Rs. I/-. To avoid this problem the JRBI has kindly came forward to
provide coins required.

4.9 Supply of weighing scales

When the farmers enter in to the Rythu Bazar their names along with the
particulars such as name of the village and the quantity of vegetables brought by them
will be entered in a register and they will be issued a token. On the basis of token issued
to them, all the farmers are provided with table type weighing scales every day with out
collecting any fee. The farmers will return back the scales after completing their sales.
The stamping of scale and weights will be undertaken by the Meteorology Dept. duly
organizing camps at Rythu Bazar on the due date of stamping.

4.10 Self help groups

The self-help groups such as CMEY, PMRY and DWACRA groups are permitted
to sell pulses, edible oils, wheat, onion, tamarind and pickles etc. in the Rythu Bazar at
reasonable rates. These groups have been provided stalls in the Rythu Bazar for selling
their items, without collecting any rent from them.

There are nine groups under CMEY/PMRY and two DWACRA groups in the Rythu
Bazar.

33
4.11 Sale of rice
Rice Millers Associations have been permitted to sell rice to the consumers at a
rate fixed by the authorities, which is one Rupee less than the open market rate.
There are 8 such shops in the Rythu Bazar who sell the following verities of rice.
1) SonaMasoori.

2) Sona Steam.

3) Hamsa.

Stall is provided to them without collecting any rent.

4.12 Sale of g.c.c.items

The Girijan Co-Operative Corporation Limited has been allotted a stall for the
sale of agency products viz, tamarind, honey, soapnuts, soapnut powder, shikakai powder
etc. at reasonable rates.

4.13 A.P.oil fed

The A.P. Oil federation is selling the edible oils produced by them such as
(a)ground nut oil (b)sunflower oil (c)p.m.oil through the counter allotted to them, at
reasonable rates.

4.14 Sale of dairy products

The Vijaya Dairy extending services to the consumers by selling dairy products
through the stall allotted to it.

4.15 Sale of fertilizers and pesticides

The Dist. Co-operative Marketing Society has opened a stall in the Rythu Bazar to
extend it's services to the farmers by supplying fertilizers and pesticides at reasonable
rates.

34
4.16 Daily arrivals of vegetables
The average daily arrivals of 35 verities of vegetables are 1100 to 1150 qtls.and
125 qtls. of leafy vegetables in the Rythu Bazar and value of which is Rs.6.25 lacs. per
day. The average sale of other special commodities per day is as follows
1)Rice 98 qtls.

2) wheat 25.5 qtis.

3) pulses 4 to 5 qtls.

4) edible oils 40.30 qtls.

The value of rice sold every day is about Rs.98,000 while the value of other
special commodities would be Rs.2.01 lacs.

As the farmers of RangaReddy Dist. are not growing potatoes. Marketing Dept. is
procuring potatoes and supplying to the self help groups which sell the same at the rate
fixed by the Dept. from time to time.

The total turnover of all items in this Rythu Bazar is Rs. 9.24 lacs per day and it is
Rs, 77.2 lacs per month.

4.17 Establish ment of estate office

The following are the particulars of Officers and staff working for Rythu Bazar.

1) Estate Officer 1.

2) Horticulture Consultant 1.

3) Supervisors 12.

4) Office Boy 1.

5) Electrician 1.

6) Watch Men 2.

35
4.18 Income and expenditure

In order to make Rythu Bazar letting out the canteen and parking space as follows
is generating self-sufficient revenue.

1) Running of Canteen • Rs.3, 60,000 per year.

2) Parking Rs. 7, 20,000 per year.

TOTAL Rs.l 0.80.000

The probable expenditure for maintenance of Rythu Bazar per year is as follows.

1) salary of Estate Officer @Rs. 5,000pm Rs. 60,000.

2) salary of Staff @Rs.30,300pm Rs.3,63,300.

3) charges for Cleaning of premises @ Rs.8,111pm Rs. 97,332.

4) Electricity Bill @ Rs, 15,000pm Rs. 1, 80,000.

5) Telephone Bill @ Rs. 1,500pm Rs. 18,000.

6) Miscellanies @ Rs.3,000pm Rs. 36,000.

TOTAL Rs.7,54,632.

Horticulture Dept pays the salary of Horticulture consultant @ Rs. 5,000pm.

The Marketing Dept. will be providing funds whenever Required for maintenance
of Rythu Bazar.

36
 Chapter 5
SURVEYS AND ANALYSIS

5.1 Introduction
I had done 50 farmers surveys, 30 consumer surveys in Mehdipatnam Rythu bazar.

5.2 Analysis of farmer’s surveys

5.2.1 Farmers vegetable operational area
According to vegetable operational area I divided the total 50 farmers into three groups.
Those are 23 belongs to small, 18 belongs to medium and remaining 9 belongs to large.

Table 3 - Farmers details

Vegetable
Average
operational
S.No Farmer Number distance
area (in
(in km)
acres)
1 small <10 23 30
2 medium 10 to 20 18 23
3 large >20 9 40

% of farmers

18%
large
46%
medium
sm all
36%

1.percentage of farmer’s benefited

The above table showed that 46% of small farmers and 36% of medium size farmers and
18% of large farmers benefited from the Mehdipatnam Rythu bazar.

37
5.2.2 Distance to rythu bazar

50

distance (in km)

40
30 Average distance
20 (in km)

10
0
small medium large
farmer

2.farmers and their distance

The above graph shows that mainly large farmers are coming from long distance.

5.2.3 Reasons for selling through Rythu bazar

In mehdipatnam Rythu bazar the farmers are getting good remunerative prices.
The below table shows the details

Table 4 - Reasons for selling through Rythu bazar

Small farmer Medium farmer Large farmer
S.No Reasons
no % no % no %
1 good transport 20 87 18 100 8 89
2 remunerative prices 23 100 16 89 9 100
3 no marketing expences 22 96 17 94 9 100
4 neat and clean environment 20 77 18 100 9 100
infrastructure facilities
5 such as canteen,parking 23 100 15 83 8 89
etc.
6 no middle man 21 91 17 94 9 100
services provided by the
7
staff 20 87 18 100 8 89

38
Table 4: Reasons for selling through Rythu bazar
Good transport facility,absence of middle men,no marketing expenses,neat and clean
environment attracted farmers into the rythu bazar.Apart from the above stated reasons
most of the farmers preferred this rythu bazar because of remunerative prices.

About 87% of small and 60% of medium size farmers benefited by the services provided
by the officials.

About 100% of large and small farmers are getting remunerative prices

5.2.4 Reasons for selling through private agency

Some of the farmers selling at Mehdipatnam rythu bazar were also selling to private
agencies during the season.

Table 5 - Reasons for selling through private agency

Small farmer Medium farmer Large farmer
S.No Reasons
no % no % no %
1 good price 2 9 3 16 3 33
2 advance payment 5 21 3 16 6 66
3 quick disposal 12 52 10 55 2 22
4 others 1 11

Large size group farmers (66%) expressed that advance payment given by the private
agencies was the reason for marketing through them.

But only 16% of the medium and 21% of the small farmers received an advance payment.

Out of 50 respondents only 9 large farmers brought their goods to Mehdipatnam rythu
bazar.The farmers belonging to large size group were not much interested to market their
produces through this rythu bazar.The major reason was that they had to wait in the rythu

39
bazar till their produces were sold.But if they market through private agency they can sell
their produces in a short period and rest of the time they can concenrate in the production
activities.

5.3 Analysis of consumer’s surveys

5.3.1 Consumers income levels
Income
To study the general characteristics of the consumers visiting Mehdipatnam rythu bazar
were divided into three size groups based on the monthly income.
Among 30 respondents of the consumers 13 belong to low income group with an income
of Rs.4500 and below permonth, middle income group ranged between Rs.4501 to
Rs.8000 were 10 and high income group with above Rs.8001 were 7.
Table 6 - consumer’s details

S.No Income group Number per cent(%)

1 low<4500 13 43.34
2 middle 45001 to 8000 10 33.33
3 high>8001 7 23.33

Distribution of consumers

23%
44% low
middle
high
33%

3.percentage of consumers benefited

The above graph shows that mainly low income group consumers are visiting the ryhtu
bazar.

40
5.3.2 Consumers family size and distance to rythu bazar

Table 7 - consumer’s family size and distance to rythu bazar

Average
Average
S.No Income group distance
family size
(in km)
1 low 4 6.5
2 middle 5 4.3
3 high 4 5.5
The above table shows that low income group consumers are coming from long distance
and followed by high and middle income groups.

7
distance (in km)

6
5
4 Average distance
3 (in km)
2
1
0
low m iddle high
Income group

4.cosumers and their distance

The graph shows the different income groups and their distances.

6
5
family size

4
Average family
3
size
2
1
0
low middle high
Income group

5.consumer’s income and their family size

The above graph shows the different income groups and their family size.

41
 5.3.3 Frequency of visit to rythu bazar
Table 8 - consumer’s visit to mehdipatnam rytthu bazar
income
S.No frequency low middle high
no % no % no %
1 weekly once 6 46.15 5 50 4 57.16
2 weekly twice 3 23.08 3 30 1 14.28
3 3 days in a week 2 15.39 1 10
4 all days 1 7.69 1 10
5 once in two weeks 1 7.69 1 14.28
6 monthly 1 14.28
TOTAL 13 100 10 100 7 100
The table shows that more number of low, middle and high-income group consumers is
coming weekly once.

low income - frequency visit

weekly once
8% 8% 0% weekly twice
15% 46% 3 days in a week
all days
23% once in two weeks
monthly

6.consumer’s low-income group-frequency visit

The graph shows low-income group consumers frequency visit to Rythu bazar.

42
 middle income - frequency visit

weekly once
10% 0% weekly twice
10%
3 days in a week
50% all days
30%
once in two weeks
monthly

7.consumer’s middle-income group-frequency visit

The graph shows middle income group consumers frequency visit to Rythu bazar.

high income - frequency visit

weekly once
14% weekly twice
14% 3 days in a week
0% 58% all days
14% once in two weeks
monthly

8.consumer’s high-income group-frequency visit

The graph shows high income group consumers frequency visit to Rythu bazar.

43
 Chapter 6
IDENTIFICATION OF PROBLEMS

6.1 Problems in Mehdipatnam Rythu bazar:

1.In this Rythu bazar there are no facilities for storage of vegetables.
2.For consumers there are no zebra crossings on the roads.

People are
crossing
the road

Mehdi patnam
Rythu bazar

Particularly in the night it is very difficult to cross the road.So it required zebra crossing
and one traffic signal.

3.In this Rythu bazar there is no banking facilities for farmers.

44
 Chapter 7
SUGGESTIONS
7.1 Suggestions
7.1.1 Suggestions for improving mehdipatnam Rythu bazar
1.Provide banking and storage facilities in the Rythu bazar
2.Provide zebra crossings on the main road for crossing.

7.1.2 Suggestions for improving Rythu bazars

1.To sustain Rythu bazars in the long run ,the staff of the department of Horticulture and
Agriculture must guide the farmers to draft production plans such that they are able to
continuously sell one vegetable or the other at Rythu bazar

2.Banking facilities may be provided at Rythu bazar to enable member farmers to deposit
their returns (from sale).

3.Identification of Farmers is very important.Farmers who are actually cultivating

vegetables and fruits may be selected and provided with identity cards.This will prevent
non-farmers entering into the Rythu bazar.

4.Inspection of each Rythu bazar is very important.

7.2 Increase farmers participation

In the current set-up, estimate that each Farmers’ Market costs between 80,000
and 90,000 rupees per month. This includes salaries for government officials seconded
from various departments, as well as utilities bills, local staff salaries and interest
repayment on construction costs. Other costs such as telephone bills would be reduced by
installing paying telephone booths in the Market.
Officials seconded from the Agriculture and Horticulture departments would be
able to return to their parent departments (which in many cases is already happening),

45
and their functions in the day-to-day running of the Market would be taken over by the
Marketing Committee composed by representatives of farmers and consumers, under the
supervision of the Agricultural Marketing Committee.
The remaining key functions of government officials are training and the
provision of inputs. These would be carried out in the Market as a form of extension
activities with a farmers participating in Farmers’ Markets.

7.3 Link rythu bazars with transport services improvement

Identification of potential villages is very important. In some area they have good
cultivation but they are lacking with roads for transport. So, government identified those
type of areas and provide basic services like roads and buses.

46
 Chapter 8
SUMMARY OF CONCLUSION
8.1 Conclusion
A fundamental relationship between rural and urban areas developed all over the
world. The present study has been concerned with the study of the role of rythu bazaar in
strengthening the rural and urban areas relationship.

From the secondary sources of data, the rythu bazaar concept is not new. The
rythu bazaar is a concept that directly links the rural farmers and urban consumers.
Mehdipatnam rythu bazaar is a first rythu bazaar started in Andhra Pradesh in
1999.Average number of rythus coming to rythu bazaar (Mehdipatnam) is 450 per day
and number of varieties of vegetables coming to rythu bazar (Mehdipatnam) are
35.Average quantity arrivals are 19.22 tones per day and turn over is 15.5lakhs per day
and average number of consumers visiting rythu bazar (Mehdipatnam) are 32,000perday.

Flow of vegetables is an important link between rural and urban areas. Rythu
bazar promotes the direct sales by the farmers to the consumers through direct marketing.
This type of direct marketing bridges the gap between rural and urban areas. In the rythu
bazaar the prices may be 20-25%higher than the wholesale price and also lower than the
local retail price.

From the primary data, it is identified that the low-income group

(<4,500Rs/month) consumers are coming from longer distance to rythu bazaar and in the
same way the small farmers (<10acrs vegetable operational area) coming for shorter
distance to rythu bazaar.

Problems identified in the rythu bazar (Mehdipatnam) are lack of cold storage and
banking facilities. Due to lack of cold storage facilities the rythus sold their vegetables
very lower prices in the nighttime. So, government should take necessary steps to
improve the situation. Rythu bazars helps the rural producers get better prices for their

47
goods and improve their financial stability. For improving rythu bazars, government
should take necessary steps. Recent newspapers shown that in rythu bazars there are no
proper management and stated that in the rythu bazars the estate officers are collecting
money from the farmers for their renewal of identity cards.

The rythu bazaar is a good concept. Mainly rural farmers are getting benefits
through this direct marketing. To sustain rythu bazars in the long run, the agriculture
department should educate the farmers to prepare production plans such that they are able
to continuously sell one vegetable or the other at rythu bazaar.

Identification of farmers is very important. This will prevent non-farmers entering

into the rythu bazar. The rythu bazaar concept creates informal sector. In front of rythu
bazars non-farmers are also selling vegetables, carry bags, fruits and etc. They are also
getting benefits through these rythu bazars. These people said that they are poor than the
rythus who are actually selling the vegetables in the rythu bazars. These people want
some space for selling in the rythu bazars. The government should take steps to identify
the people who are really below the poverty line and provide some space for them. These
type of steps really helps the poor people and also reduces the unemployment.

The rythu bazar is really promoting the directing marketing between rural farmers
and urban consumers. Before the establishment of rythu bazars, the rural farmers sold
their produces in the market yards through middlemen. Now they are directly selling their
produces to consumers middlemen. On the other hand the concept helping the informal
sector also. They are also selling their goods in front of the rythu bazars.

48
BIBLIOGRAPHY

1.Indian Economy:Rudra Datta,S.Chand Publications,New Delhi:1965

2.Agriculture marketing-Interventions and Innovations,Vedini

MANAGE,Hyderabad:2001

3.Course on Rural Markeing,Reading material,N.I.R.D.

4.Rural urban linkages:Yadave.India

5.Urban Socialogy:Sharma.

49