Domestic & Export Market Intelligence Cell (DEMIC)

Present by:SONDARVA YAGNESH MM.Sc. Agriculture (Agril. Extension)Department of agricultural extensionBACA, AAU ,ANAND

We now live in a world driven by hyper-competition. Hyper-competition is where too many businesses are pursuing too little business; i.e., there is not enough demand to go around for all providers of goods and services.

The knowledge base for managing in this hyper-competitive environment is called Market Intelligence .

Market IntelligenceMarket intelligence is a process of giving you in sights into what might happen in

the near future. This process requires that we go from data to information to intelligence.

Know thy-self, know thy competition, and get it right almost every time.Know thy-self, not know thy competition, and get it right about half the time.Not know thy-self, not know thy competition, and get it wrong almost every time.

Chinese Proverb

Here is a basic example Data - Prices for our products have dropped by 5 percent.Information - New offshore facilities have lower labour costs.Intelligence - Our key competitor is about to acquire a facility in India that will.

The differences between data, information, and intelligence can be subtle, but very real.

Data- Unconnected pieces of information. Information - Increased knowledge derived by understanding the relationships of data.Intelligence- Organizing the information to fully appreciate the implications

and impact on the organization.

Market Intelligence

Source for best practices – the only real way to isolate and find “best practices” is to engage in some form of Market Intelligence ; otherwise you end up relying on crude and generic type benchmarking data

Helps formulate strategy through an understanding of your industry, yourself, and your competitors. Market Intelligence is the essence of strategic business analysis.

Helps identify areas for improvement as well as risks and opportunities.

Isolates performance gaps in relation to the competition.

IMPORTANCE OF MARKET INTELIGENCE

Frequent fluctuations in prices affect the farm income adversely and increase risk. Since farmers have no authentic source from which they could get the information on future changes in prices, they decide the area under various crops mostly by the price level prevailed in the previous seasons.

This results in glut and scarcity frequently. After harvesting the crop, the farmers do not have any information on how the prices would move in the near future; they are not able to decide the best time of selling their produce even for the commodities that can be stored for short periods in the farm itself.

So there is an urgent need to establish a permanent mechanism for market intelligence.

DOMESTIC AND EXPORT MARKET INTELLIGENCE CELL

Market information is an important aspect of agricultural production and marketing.

The importance of sound agricultural marketing policies for ensuring fair returns to the farmers cannot be overemphasized.

There are wide differences between the prices realized by the farmers and the prices paid by the consumers for most of the crops.

Almost all States and Union Territories are providing market information in one form or the other for the benefits of market users like producers, traders, and consumers.

However, the information is collected and disseminated by use of conventional methods causing inordinate delay in communicating to different groups and this, in turn, adversely affects the farmers in taking proper marketing decisions i.e, whether to sell immediately or store the produce, whether to market the produce inland or overseas, where to sell in domestic markets, during which part of the year he can get remunerative prices etc.

Globalization of agriculture has also opened up opportunities for export of agricultural commodities for which demand by importing countries and their quality specification and standards should be made available to domestic exporters to pave for export led growth. The farmers should also be made aware of the consequences of imports on domestic prices. All the above emphasized the need for establishing the Domestic and Export Market Intelligence Cell (DEMIC).

the Domestic and Export Market Intelligence Cell (DEMIC) was established in November 2004 at Centre for Agricultural and Rural Development Studies (CARDS) in Tamil Nadu Agricultural University, Coimbatore with the financial assistance from Tamil Nadu State Agricultural Marketing Board, and Department Agricultural Marketing and Agri Business.

To disseminate timely, comprehensive, current and future price information on agricultural commodities for better decision-making by farming community, traders, firms, researchers and policy makers.

Objective of DEMIC

Domestic and Export Market Intelligence Cell (DEMIC)

1. To forecast the supply and demand of important agricultural commodities in Tamilnadu

2. To forecast future prices of major agricultural commodities

3. To study the state and national market situation related to important commodities

4. To disseminate the market and price information to the farmers for planning, production and holding stocks, and then sell at higher prices and

5. To suggest policy measures to the Government of Tamil Nadu

Objectives

The major activities of the cell is to collect real time data on arrivals, prices and transaction of important agricultural commodities from Regulated Markets in Tamil Nadu, conducting market surveys, compiling commodity reports and assessing export opportunities of agricultural commodities.

Using these data, the cell forecasts the prices of different commodities on a regular basis and the same is transmitted to the farmers through Radio, Television and Newspapers and web developed for this purpose.(www.tnagmark.tn.nic.in).

Now all the stakeholders can access the real time price of agricultural commodities variety wise, grade wise from all the major market centers of India in English and Tamil covering more than 500 markets.

Apart from price information, other useful information available in the website are export procedures, export standards for various agricultural commodities, infrastructure facilities (ports, air cargo, railways, rural godowns, etc.), agri-export zones, food processing, post - harvesttechnology and other useful links to various related websites.

An e-mail newsletter focussing on technical and market related information at domestic and international levels has been developed by DEMIC in the banner of “DEMIC Info Series” to sensitize the stakeholders and scientists.

Approach

Turmeric - June 1st week Cotton - June 2nd week Onion - July 1st or 2nd week Maize - August, September Banana - August, September Chillies - August Groundnut - September Gingelly - October Tapioca - October, November Potato - December Black gram - May Green gram – May

Price forecasts are done with the help of various statistical methods by utilizing historical data and market surveys.

Validation is important for measuring goodness of any forecast. The forecast validation percentage of DEMIC scheduled crops was above 90 per cent. This shows the core strength of DEMIC.

Commodities and forecast schedule

Tamil Nadu Agricultural University (TNAU)

Department of Agricultural Marketing and Agribusiness

Indian Council of Agricultural Research-National Agricultural innovation Project

National Information Centre (NIC)

Collaborating Institutions:

This was an initiative of Indian Council of Agricultural Research under the National Agricultural Innovation Project (NAIP). In order to provide market advisories to farmers, a Consortium of the following eleven Agricultural Universities was formed:

I. Tamil Nadu Agricultural University, Coimbatore, Tamilnadu (Lead Institute) II. Kerala Agricultural University, Trissur, Kerala III. University of Agricultural Sciences, Bangalore, Karnataka IV. University of Agricultural Sciences, Dharwad, Karnataka V. Acharya N G Ranga Agricultural University (ANGRAU), Hyderabad, Andhra Pradesh VI. Dr. Panjab Rao Desmukh Krishi Vidyapeeth, Akola, Maharashtra VII. Junagadh Agricultural University, Junagadh, Gujarat VIII. Punjab Agricultural University, Ludhiana, Punjab IX. G B Pant Agricultural University, Pant Nagar, Uttarakhand X. CCS Haryana Agricultural University, Hissar, Haryana XI. Maharana Pratap University of Agriculture and Technology, Udaipur, Rajasthan

Networking of Market Intelligence Centers in India

THANK YOU