SWASRAYA KARSHAKA SAMITHY
(Farmer's Markets)

KHDP supported markets - for the farmers, by the farmers

KHDP's main marketing intervention has been Group Marketing. Farmers from 10-12 SHGs, on average a total of about 200 farmers, form their own market. Farmer's produce is graded and bulked at the market and, since a large volume of fresh fruits and vegetables are available at one location, traders come to the market to trade, instead of farmers going to traditional markets and selling individually to traders.

The Group Marketing operation starts when the participating SHGs form a Bulking Point. At this stage KHDP farmers from nearby SHGs first collect their produce at the bulking point and is then take it to the nearest traditional market. Since all the farmers are selling together they are better able to negotiate with traders and the use of joint transportation reduces expenses. After a period of operation as a bulking point, which serves as a trial period, the member farmers develop an organisation called Swasraya Karshaka Samithy (SKS) which is responsible for managing the market. At this stage the market is sufficiently well developed to attract traders to it. Translated literally into English, SKS means Farmers' Committee for Self Help.

Advantages of SKSs:

Market is located close to production centers, saving considerable time and transport costs
Reduction in marketing commission from 10% to 2-3%
Traders get fresher produce than is available in traditional markets
Use of correct weights
Transparency in transactions
Moral boost to the farmer due to his increased bargaining power

Members: SHG farmers who pay membership fee

Managed by: A committee of marketing master farmers, re-elected annually.

Support from KHDP: For the first year of operation KHDP provides basic furniture, weighing balance, account registers, rent, salary for secretary, and audit fees. SKSs meeting the set performance criteria are assisted to acquire land to erect a permanent building for running the farmers' market.

Soft Support: Building the capacity of master farmers and farmers to successfully run a business enterprise through proper procurement and marketing planning, analysis of market volumes and prices, management of trade linkages, proper accounting and auditing, and promoting active participation of members in managing the business.

Input centres: Concept introduced by farmers themselves which provide

Reduced risk of farmers being sold inappropriate agrochemicals
Increased and more convenient availability of inputs including fertilisers, agrochemicals, and tools.
Reduced input prices achieved through bulk purchases
Timely availability of inputs