Modern and Terminal Markets

Topics: Farmers' market, Market, Street market Pages: 19 (3703 words) Published: January 27, 2009

INTRODUCTION: - Today the way produce gets on your table evolves from hard working people that go from growing the produce,
packaging it, shipping the produce to area Terminal Markets, where you will find a great number of merchants competing
in price and quality to move their product as fast and efficiently as possible to maintain freshness in order to satisfy its costumers, who's goal is to get you the freshness tastiest produce. Modern/Terminal markets are markets which are formed to cater rising and vastly growing needs of Indian families witnessing a paradigm shift in its expenditure and lifestyle. Due to these fastly changing lifestyle and race for earning more and more provides no time. So to cater all these needs of population Modern/Terminal markets concept came in origin. Food market covers almost 53% private consumption expenditure and their demand grows at a rate of 8%, and consumer basket is continuously undergoing change in favour of perishables and healthy hygienic products. As demand increases both vertically and horizontally (diversified), the organized retail sector wants to encash every opportunity. However the long fragmented market chain increases wastage and low price for the producer which is inadequate to meet the demand. India produces 10% of total world production of perishables but contributes only 1% of world trade. Thus the concept of terminal markets arises to provide a strong, competitive and alternate market structure which gives many options to farmers/producers to sell their produce and give them better share of consumer price.

Development of National Horticulture Mission which evolved in 2005-06 for holistic development of horticulture produce required adequate infrastructure for post harvest operations and strong marketing systems. Thus the concept of terminal markets arises to provide multiple options for sale of produces and comprehensive solutions to the problems faced by producers. It was implemented on PPP basis (public private partnership basis).

Terminal market is the central site often in a metro-pollitan area, which serves as an assembly or trading hub for agricultural commodities. COMMODITIES DEALING WITH: -
Fruits, vegetables, flowers, aromatics, herbs, meat and poultry, non perishables can also be used how-ever the proportion of perishables and non-perishables should not be more than 15% of the total through put market. Non-agricultural but perishables commodities like meat and poultry should also not be more than 15%. OBJECTIVE: -

1. Link the poor farmers to the market through strong forward and backward linkage 2. Provides multiple options to the farmers and greater share of consumer price. 3. Links reforms in agricultural markets and post harvest infrastructure development. 4. Brings transparency and price fixation of agricultural commodities. SALIENT FEATURES: -

1. Terminal markets are set up in those places that undertake reform. 2. It works on hub-and-spoke model
3. Electronic auctioning system to establish transparency in price fixation 4. Attract private sector through open bidding.
5. Provide all the facilities including storage, transportation, cool chain and logistics under a single roof. WORKING: -
Terminal markets work on Hub-and-Spoke format, where terminal markets are at the center (HUB) and all interconnected collection centers are spokes. Collection centers are located at all main centers for easy access, area of which will be based on farmer convenience and operational efficiency (where maximum no of collection from produce can be done).


(figure 1- hub and spoke model)
(Source -

1. Provide infrastructure for hub-and-spoke model
2. Collection centers should be...
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