RA 00048.pdf - OAR@ICRISAT

Table 3.
Estimated average arrivals' of sorghum,
wheat, and rice from village into wholesale
assembling markets as a percentage
of production in selected States of India,
over time.
State/Year Sorghum Wheat Rice
Andhra Pradesh 8.0 32.8
Gujarat 23.4 34.1 48.2
Karnataka 7.6 14.1 16.0
Madhya Pradesh 13.7 22.0 18.8
Maharashtra 33.5 7.2
Rajasthan 16.3 20.5 13.3
Tamil Nadu 9.0 44.4
Uttar Pradesh 29.4 20.2 23.0
All India 11.5 28.1 24.3
1972/73 14.3 31.2 23.6
1973/74 10.8 23.4 22.4
1974/75 8.8 23.9 22.0
1975/76 11.2 30.5 26.2
1976/77 12.6 31.7 27.0
a. Unweighted averages of the years 1972/73 to 1976/77.
Source: Government of India. Bulletin of Food Statistics. 1979.
p. 17.
36% in villages with the nearest market distance
(within 15 km) and the lowest with 18% in distant
villages (over 25 km from the market).
While small farms have only negligible quantities
of sorghum as a marketable surplus at all
locations, large farms respond strongly to the
increasing market distance with a decreasing
marketable surplus of sorghum. Out of the total
sorghum produced, 7 2 % is retained on the farm;
5 1 % is used for home consumption (for all
categories of landholding class). 17% for kind
wage payment and 4% for seeds. While kind
payment and retention for seed are constant,
regardless of the market distance, the home
consumption of sorghum increases, especially in
large farms with increasing distance to the
nearest market. In other words, for large farmers
in the vicinity of a market, sorghum must be
considered as a commercial crop.
Market Flows of Sorghum
Through Different Channels
In a marketing study of ICRISAT crops, 29
markets were randomly selected in the semi-arid
tropical areas of India. For sorghum, markets in
Maharashtra and Andhra Pradesh were mainly
considered. Estimates of quantities passing
through different channels were made based on
information collected from traders and farmers in
these markets. Figure 1 gives the estimates of
flows of sorghum through different channels in
1974/75. About 2 2 % of sorghum is sold in
primary wholesale markets and 7 8 % is retained
on the farm. From the primary wholesale markets,
7% goes to the local retailer, 10% to secondary
wholesale markets and 5% to terminal markets.
Again from secondary markets, about 5% goes to
retailers and the remaining 5% to terminal markets.
Of the 78% retained on the farm, 50% is
used for home consumption, 24% for kind payment
of wages and 4% is retained for seeds.
Producer's Share in Consumers' Rupee
A detailed investigation into the prices and market
margins in three markets in Andhra Pradesh
shows that here producers receive about 8 5 % of
the consumers' rupee (Table 5). A study further
shows that the producer's share in the consumers'
rupee decreases as one looks at crops like
pigeonpea, chickpea and groundnut because for
these products the amount of services required
for transformation of the product into a consumable
commodity increases. Thus the relatively
high share which producers receive of the consumers'
rupee is explained not only by a relatively
efficient market channel but also by the fact that
sorghum does not undergo any physical transformation
while in the market channel. Consumers
buy the grain as such and do the grinding
themselves with the help of local small-scale
mills.
Interregional Trade
A large proportion of sorghum is traded within the
same district and between districts within the
same state. Interstate trade of sorghum over long
distances is also observed (Fig. 2), e.g., Maharashtra,
Gujarat, and Karnataka import considerable
quantities from other states. Sorghum does not
flow to the eastern region of India. Its trade is
mainly concentrated within the SAT areas of India
where it is the staple food. The interregional trade
of sorghum is less than that of pigeonpea and
chickpea.
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