POST-HARVEST PROFILE OF RED GRAM

CONTENTS

Page No.

1.0 INTRODUCTION 1-2

1.1 Origin 1
1.2 Importance 2

2.0 PRODUCTION 2-6

2.1 Major producing countries in the world 2

2.2 Major producing states in India 3
2.3 Zone-wise major commercial varieties 5

3.0 POST-HARVEST MANAGENENT 6-29

3.1 Post-harvest losses 6

3.2 Harvesting care 7
3.3 Grading 8
3.3.1 Grade specifications 8
3.3.2 Adulterants and toxins 16
3.3.3 Grading at producers’ level and under Agmark 18
3.4 Packaging 18
3.5 Transportation 20
3.6 Storage 22
3.6.1 Major storage pests and their control measures 23
3.6.2 Storage structures 24
3.6.3 Storage facilities 25
i) Producers’ storage 25
ii) Rural godowns 25
iii) Mandi godowns 26
iv) Central Warehousing Corporation 26
v) State Warehousing Corporations 27
vi) Co-operatives 28
3.6.4 Pledge finance system 29
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4.0 MARKETING PRACTICES AND CONSTRAINTS 29-36

4.1 Assembling (Major assembling markets) 29

4.1.1 Arrivals 30
4.1.2 Despatches 31
4.2 Distribution 31
4.2.1 Inter-state movement 31
4.3 Export and import 32
4.3.1 Sanitary and Phyto-Sanitary requirements 34
4.3.2 Export procedures 35
4.4 Marketing constraints 36

5.0 MARKETING CHANNELS, COSTS AND MARGINS 37-40

5.1 Marketing channels 37

5.2 Marketing costs and margins 39

6.0 MARKETING INFORMATION AND EXTENSION 41-44

7.0 ALTERNATIVE SYSTEMS OF MARKETING 44-47

7.1 Direct marketing 44

7.2 Contract marketing 45
7.3 Co-operative marketing 45
7.4 Forward and future markets 46

8.0 INSTITUTIONAL FACILITIES 48-53

8.1 Marketing related schemes of Govt./Public Sector 48

8.2 Institutional credit facilities 50
8.3 Organisations / agencies providing marketing services 52

9.0 UTILIZATION 53-55

9.1 Processing 53
9.2 Uses 54

10.0 DO’S AND DON’TS 56-57

11.0 REFERENCES 58-59

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1.0 INTRODUCTION

R
ed gram is an important pulse crop in India. It is also known as Pigeonpea, Arhar
and Tur. Red gram is mainly cultivated and consumed in developing countries of
the world. This crop is widely grown in India. India is the largest producer and
consumer of Red gram in the world. Red gram accounted for about 20 percent of the total
production of pulses in the country during the year 2000-2001.
Red gram is a protein rich staple food. It contains about 22
percent protein, which is almost three times that of cereals. Red
gram supplies a major share of protein requirement of vegetarian
population of the country. Red gram is mainly consumed in the
form of split pulse as Dal, which is an essential supplement of
cereal based diet. The combinations of Dal-Chawal (pulse-rice) or
Dal-Roti (pulse-wheat bread) are the main ingredients in the
average Indian diet. The biological value improves greatly, when
wheat or rice is combined with Red gram because of the
complementary relationship of the essential amino acids. It is
particularly rich in lysine, riboflavin, thiamine, niacin and iron.
In addition to being an important source of human food
and animal feed, Red gram also plays an important role in
sustaining soil fertility by improving physical properties of soil and fixing atmospheric nitrogen.
Being a drought resistant crop, it is suitable for dryland farming and predominantly used as an
intercrop with other crops. Nutritional values of edible portion of Red gram are given in Table
No.1.
Table No. 1: Nutritional values of edible portion per 100 g of Red gram
Energy Protein Fat Ca Fe Thia- Ribofla- Niacin Vit.A
Crop (cal) (g) (g) (mg) (mg) min vin (mg) value
(mg) (mg) (mcg)
Red
gram 335 22.3 1.7 7.3 5.8 0.45 0.19 2.9 132
Dal
Source: Nutritive value of Indian Foods, by Gopalan, C., et al., Indian council of Medical
Research publication, 1971, PP. 60-114.
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1.1 Origin:
Its actual place of origin is very controversial as some people believe, it originated in
India, while others say, it originated in Africa. According to Vavilov (1928), genus Cajanus
originated in the Hindustan. As per Van Der Maesen (1980) also, the centre of origin of the
crop is India. According to Bentham (1861) and De Candolle (1886), it originated in Africa.
Botanical Description:
Red gram [Cajanus cajan (L.) Millsp.] belongs to family Leguminosae. Numerous
nodules are present on roots, these nodules contain Rhizobium bacteria, which fixes
atmospheric nitrogen. The flowers are self-pollinated but cross-fertilization may also occur to
some extent. The fruit of the Red gram is a pod. Seeds are round or lens shaped. Numerous
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species of Cajanus are known, differing in height, habit, time of maturity, colour, size and
shape of pods and seeds. All these cultivated types belong to two categories:
i) Cajanus cajan var. bicolor: This group includes late maturing varieties, having tall bushy
plants and bear flowers at the end of the branches. The pods
are relatively longer and contain 4-5 seeds.
ii) Cajanus cajan var. flavus: This group includes early maturing varieties, having smaller
plants and flowers at several points along the branches. The
pods are also shorter which bear 2-3 seeds.
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1.2 Importance:
India alone accounted for about 81 percent of total world’s production in the year 2002
and 90 percent of total world’s consumption of Red gram. The total pulse production of the
country was 11.08 million tonnes in 2000-01 including Red gram (2.25 million tonnes).
Generally, this crop is not grown as commercial crop and major portion of the produce is
consumed in the respective state itself. Every Red gram plant is a mini-fertilizer factory as the
crop has unique characteristics of restoring and maintaining soil fertility through fixing
atmospheric nitrogen in symbiotic association with Rhizobium bacteria present in the root
nodules. Red gram crop is suitable for inter-cropping, with different crops (Cotton, Sorghum,
Pearl millet, Green gram, Black gram, Maize, Soybean, Groundnut) for increasing production
and maintaining soil fertility.

2.0 PRODUCTION
2.1 Major producing countries in the world:
Red gram is
Major Red gram producing countries during 2002
grown throughout the
tropical and subtropical (Percent to world production)
countries of the world
especially in South
Asia, Eastern and India
Southern Africa, Latin
America, Caribbean Myanmar
3.25 81.49
countries and Australia.
According to FAO 2.60
Malawi
statistics, worldwide
Red gram was grown in 2.64
about 4.16 million Uganda
hectares and its 10.02
production was 2.99 Others
million tonnes in 2002.
India is the largest
producer of Red gram accounting 81.49 percent of total production and 80.59 percent of total
area of the world. Other major Red gram producing countries are Myanmar (10.02 percent),
Malawi (2.64 percent) and Uganda (2.60 percent). The productivity is highest in Uganda (1000
kg/ha) followed by Nepal (875kg/ha) and India (728 kg/ha).
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Area, production and yield of Red gram during 2000-2002 in major growing countries of the
world are given below:
Table No. 2: Area, production and yield of Red gram in major producing countries
Area (‘000 Hectares) Production (‘000 Tonnes) Yield (kg/ha)
Country 2000 2001 2002 % to 2000 2001 2002% to 2000 2001 2002
world world
India 3430.00 3680.00 3350.00 80.59 2690.00 2260.00 2440.00 81.49 784 614 728
Myanmar 306.00 480.00 480.00 11.54 188.73 300.00 300.00 10.02 617 625 625
Malawi 123.00 123.00 123.00 2.96 79.00 79.00 79.00 2.64 642 642 642
Uganda 78.00 78.00 78.00 1.88 78.00 78.00 78.00 2.60 1000 1000 1000
Tanzania 66.00 66.00 66.00 1.59 47.00 47.00 47.00 1.57 712 712 712
Nepal 22.71 24.04 24.00 0.58 22.47 20.94 21.00 0.70 989 871 875
Others 38.85 35.42 35.98 0.86 29.13 28.14 29.32 0.98 750 795 815
World 4064.56 4486.46 4156.98 100.0 3134.34 2813.08 2994.32 100.0 771 627 720
Source: Website www.fao.org
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2.2 Major producing states in India:
In India, Red gram is one of the most widely cultivated pulse crops. It was grown over
an area of 3.38 million hectares with a production of 2.30 million tonnes in 2001-2002. Area,
production and yield of Red gram in India for the last five years are given in Table No. 3.
Table No. 3: All-India area, production and yield of Red gram from 1997-98 to 2001-02
Area Produc- Yield India's production of Red gram from 1997-98 to
Year (Million tion (Kg/ha) 2001-2002
hec- (Million
tares) tonnes)
3
1997-98 3.36 1.85 551
1998-99 3.44 2.71 787 2
1999-2000 3.43 2.69 786 2.71 2.69 2.25 2.3
1 1.85
2000-2001 3.63 2.25 618
2001-02 3.38 2.30 681 0
1997-981998-99 1999- 2000-01 2001-
(Final) 2000 2002

Source: Department of Agriculture and Cooperation, New Delhi.

Maharashtra is the largest producer of Red gram accounting for nearly 33.49 percent of
the total production followed by Uttar Pradesh (19.73 percent), Madhya Pradesh (12.18
percent), Andhra Pradesh (8.17 percent), Gujarat (8.13 percent) and Karnataka (6.34
percent). These six major states together contribute about 88 percent of the total production
and about 88 percent of the total area in the country in 2001-2002. Among major Red gram
growing states, Maharashtra has the largest area under the crop. Maharashtra accounts 30.11
percent of the total area in the country followed by Karnataka (14.27 percent), Andhra Pradesh
(12.40 percent), Uttar Pradesh (11.76 percent), Madhya Pradesh (9.91 percent) and Gujarat
(9.84 percent), whereas productivity is highest in Bihar (1281 kg/ha) followed by Uttar Pradesh
(1142 kg/ha), Madhya Pradesh (837kg/ha) and Maharashtra (757 kg/ha).

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Area, production and yield of Red gram in major producing states of India during 1999-2000 to
2001-2002 are given under:

Major Red gram producing states during 2001-2002

(Percent to all India production)
33.49%
Maharashtra

Uttar Pradesh
19.73%

Madhya Pradesh

Andhra Pradesh

Gujarat
11.96%
12.18% Karnataka

6.34% Others
8.13% 8.17%

Table No. 4: Area, production and yield of Red gram in major producing states

State Area (‘000 Hectares) Production (‘000 Tonnes) Yield (kg/ha)

1999- 2000- 1999- 2000- 1999- 2000- 2001-
2000 2001 2001-2002 2000 2001 2001-2002 2000 2001 2002
(Final) % (Final) % (Final)
Andhra Pradesh 432.2 513 419 12.4 154.8 219 188 8.17 358 427 449
Bihar 66.5 43.7 42 1.24 82.1 58.9 53.8 2.34 1235 1348 1281
Gujarat 358 317.9 332.3 9.84 290.8 107.2 187 8.13 812 337 563
Karnataka 508.1 582.7 482 14.27 289.5 263.5 146 6.34 570 452 303
Madhya Pradesh 317.3 312.9 334.9 9.91 270.9 210.4 280.3 12.18 854 672 837
Maharashtra 1041 1096.1 1017.3 30.11 868 660.3 770.6 33.49 834 602 757
Orissa 136 149 141.6 4.19 85 75 78.6 3.42 625 503 555
Tamil Nadu 87.8 63.3 63.4 1.88 62.4 45.1 41.7 1.81 711 712 658
Uttar Pradesh 414.7 406.6 397.4 11.76 544 509.8 454 19.73 1312 1254 1142
Others 65.4 147.1 148.6 4.4 46.5 97.3 101.1 4.39 711 661 680
All India 3427 3632.3 3378.5 100 2694 2246.5 2301.1 100 786 618 681

Source: Department of Agriculture and Cooperation, New Delhi.

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2.3 Zone-wise major commercial varieties:
Table No. 5: Improved varieties of Red gram suitable for different zones in India
I. North-Western Zone: (Punjab, Haryana, Rajasthan, Himachal Pradesh, J & K)
Early varieties ¾ ‘Parbhat’, ‘UPAS 120’, ‘T 21’, ‘Pusa Ageti’, ‘Pusa 74’, ‘Pusa
84’, ‘Pant A 1’,‘Pant A 2’, ‘HPA 1’, ‘TT 5’, ‘AL 15’, ‘Manak’,
‘H 77-216’, ‘Sagar’ (‘H 77-208’), ‘BS 1’
Medium varieties ¾ ‘Sharda’ (‘S 8’), ‘Mukta’ (‘R 60’)
Late varieties ¾ ‘NP(WR) 15’, ‘Gwalior 3’
II. North-Eastern Zone: (Eastern Uttar Pradesh, Bihar, West Bengal, Orissa, Assam)
Early varieties ¾ ‘Parbhat’, ‘UPAS 120’, ‘T 21’, ‘Pusa Ageti’, ‘Pusa 74’,
‘Pusa 84’, ‘Pant A 1’, ‘TT 5’, ‘BS 1’
Medium varieties ¾ ‘Sharda’, ‘Mukta’, ‘Laxmi’, ‘Bahar’, ‘Basant’, ‘BR 65’, ‘BR
183’, ‘C 11’, ‘20(105)’ (‘Rabi’)
Late varieties ¾ ‘T 7’, ‘T 17’, ‘NP(WR) 15’, ‘Chuni’, (‘B 517’), ‘Sweta’
III. Central Zone: (Madhya Pradesh, Gujarat, Maharashtra)
Early varieties ¾ ‘Parbhat’, ‘UPAS 120’, ‘T 21’, ‘Pusa Ageti’, ‘Pusa 74’, ‘J 9-
19’, ‘TAT 10’, ‘Visakha 1’(‘TT 6’)
Medium varieties ¾ ‘Sharda’, ‘Mukta’, ‘C 11’, ‘C 36’, ‘BDN 1’, ‘BDN 2’, ‘No.148’,
‘Khargone 2’, ‘T 15-15’, ‘PT 301’, ‘JA 3’, ‘No.84’, ‘No.290-
21’, ‘Hyderabad 185’
Late varieties ¾ ‘NP(WR) 15’, ‘Gwalior 3’
IV. Peninsular Zone: (Andhra Pradesh, Tamil Nadu, Kerala, Karnataka)
Early varieties ¾ ‘Parbhat’, ‘T 21’, ‘Pusa Ageti’, ‘BDN 2’, ‘PT 221’
Medium varieties ¾ ‘Sharda’, ‘Hy 3C’, ‘Hy 3A’, ‘Hy 4’, ‘Hy 5’, ‘Co 2’, ‘Co 4’, ‘Co
5’, ‘GS 1’, ‘CPDM 1’, ‘F 52’, ‘C 28’, ‘SA 1’, ‘Palanadu’
Late varieties ¾ ‘SA 1’

Source: Advances in Pulse Production Technology, L.M.Jeswani and B. Baldev, pp.-86.

Table No.6: Hybrid varieties of Red gram recommended for different states in India
Varieties Name of the states
ICPH-8 Madhya Pradesh,Maharashtra,Gujarat
PPH-4 Punjab
AKPH-4101 Maharashtra
COPH-2 TamilNadu
Source: Indian Farming, December, 2002, pp.13-20. Top
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 Table No.7: Short duration varieties of Red gram recommended for different
states of India
Maturity
Varieties States
(Days)
Pragati (ICPL 87) 140-150 M.P.,Maharashtra, Gujarat, Andhra Pradesh, Karnataka
Pusa 855 135-140 Punjab, Haryana, Uttar Pradesh, Madhya Pradesh
Paras (H 22-1) 135-140 Punjab, Haryana, Western Uttar Pradesh
Vambhan ---- Tamil Nadu
AL-201 135-140 Punjab, Haryana
ICPL 85010 125-130 Himachal Pradesh
Sarita ---- Himachal Pradesh
Durga(ICPL 84031) 125 Andhra Pradesh
Source: Indian Farming, December, 2002, pp.13-20. Top
3.0 POST-HARVEST MANAGEMENT
3.1 Post-harvest losses:
There is a sizeable quantitative and qualitative loss of pulses during different post-
harvest operations like threshing, winnowing, transportation, processing and storage. Hence, it
is appropriate to give due emphasis to reduce qualitative as well as quantitative losses of
pulses during post-harvest operations, which are estimated to be in the order of 9.5 percent.
The Post-harvest losses of pulses estimated at various stages are given in Table No.8:

Table No. 8: Estimated post-harvest losses of pulses including Red gram

Sl.No. Stages Production loss (Percent)
1. Threshing yard 0.5
2. Transport 0.5
3. Processing 1.0
4. Storage 7.5
Total 9.5
Source: Birewar, B.R. (1984) Post-Harvest Technology of Pulses, Pulse Production –
Constraints and Opportunities. Oxford and IBH Publishing Co., New Delhi, India, PP. 425-
438.
The post-harvest losses of Red gram can be minimised in the process of threshing,
winnowing, storage, processing, handling and transportation.
(i) Threshing and Winnowing: The loss at threshing yard is reported to be to the extent of
0.5 percent. In order to reduce the losses, threshing and winnowing operations are required to
be completed within a short period through improved equipments.
(ii) Transport losses: During transportation, the losses are reported to be to the extent of 0.5
percent and necessiating quick transportation to reduce the losses.
(iii) Processing: Due to using old and outdated methods of Dal milling, the loss at this stage
is upto 1 percent. To reduce the milling losses and to increase the output, improved Dal milling
method developed by C.F.T.R.I, Mysore should be adopted.
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(iv) Storage: Due to improper and inefficient methods of storage, the loss upto 7.5 percent is
estimated during storage. Quantitative losses result from spoilage, driage, infestation by
insects, rodents or birds. Therefore, improved storage facilities should be adopted to reduce
the losses.
To avoid post-harvest losses, following preventive measures should be considered:
➣ Harvest timely to reduce losses.
➣ Use proper method of harvesting.
➣ Avoid the losses in threshing and winnowing by adopting modern mechanical methods.
➣ Use improved techniques of processing.
➣ Adopt grading for getting remunerative prices inter-alia to avoid financial loss.
➣ Use good packaging materials for storage as well as for transport i.e. B-Twill Jute bags
or HDPE bags.
➣ Use proper techniques in storage.
➣ Use pest control measures during storage.
➣ Timely and proper handling (loading and unloading) with suitable transportation facilities
at farm and market level.
➣ Avoid use of hooks by labour during handling.
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3.2 Harvesting care:
During harvesting, proper care should be taken to avoid quantitative and qualitative
losses. Following care should be taken during harvesting:
☛ Harvesting should be done timely. Timely harvesting ensures optimum grain quality and
consumer acceptance.
☛ Harvesting before the crops mature, usually result lower yields, higher proportion of
immature seeds, poor grain quality and more chances of disease attack during storage.
☛ Delay in harvesting of Red gram, results in shattering of pods and other losses caused by
birds, rats, insects etc.
☛ The best time to harvest the crop, when large (80) percent of the pods are fully matured.
☛ Avoid harvesting during adverse weather conditions i.e. rains and overcast weather.
☛ Right kind of harvest equipment (sickle) should be used.
☛ Avoid pest infestation prior to harvesting.
☛ All the harvested stems should be kept in one direction in order to ascertain efficient
threshing.
☛ After cutting, if the weather permits, leave the harvested stems to dry in the field.
☛ If the threshing cannot be done immediately, the harvested materials should be bundled
and stacked in a dry place. The stacking should be cubical to facilitate circulation of the
air around.
☛ Rogue out the admixtures prior to harvesting, it helps in fetching good price in the market.
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☛ Keep the harvested Red gram separately for each variety.
Maturity period of Red gram varies from variety to variety. Maturity period of different
varieties of crop is given below:

Table No. 9: Maturity period of Red gram

Sl. No. Varieties Maturity period

1. Short duration varieties 100-150 days
2. Medium duration varieties 150-180 days
3. Long duration varieties 180-300 days
Source: Advances in Pulse Production Technology, L.M. Jeswani and B. Baldev, pp.-84.
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3.3 Grading:
Grading means the sorting of the homogenous lots of the produce according to the
fixed grade standards. Produce is graded in accordance with the various quality factors. The
grading of Red gram is beneficial to the farmers, traders as well as to the consumers. Grading
of the produce before sale enables farmers to get better price for their produce, whereas
grading helps the consumers to get standard quality produce at fair price. After grading, it is
easier for the consumer to compare the prices of different qualities of a produce in the market.
There is no need of assurance about the quality of the graded produce. Grading also reduces
the cost of marketing.

In the market, the sale is generally done on the basis of visual inspection of available
sample and with local commercial name. Buyers offer price on the visual examination of whole
lot considering the quality factors like size and colour of the grains, moisture content, refraction
and admixture with other varieties. In order to ensure remunerative price to the farmers as well
as to gain the confidence of consumer, the Red gram should be graded systematically.
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3.3.1 Grade specifications:
i) Grading under AGMARK:
The Agricultural Produce (Grading and Marking) Act, 1937 was enacted to maintain the
quality of agricultural produce in India. The Act authorises the Central Government to frame
rules related to the fixing of grade standards and the procedure to be adopted to grade the
agricultural commodities included in the schedules. According to this Act, specifications have
been drawn up for Red gram according to various quality factors.

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The grade standards specified for Red gram whole and split notified by the Directorate
of Marketing and Inspection are given below:
Grade specification and definition of quality of Red gram(Tur/Arhar) whole-under
Agmark
A) Special requirements:
Grade Maximum limits of tolerance (per cent by weight)
designation Moisture Foreign matter Other Damaged Weevilled
edible grains grains percent
Organic Inorganic grains by count
(1) (2) (3) (4) (5) (6) (7)
Special 10.0 0.10 Nil 0.5 0.5 3.0
Standard 12.0 0.50 0.10 2.0 2.0 5.0
General 14.0 0.75 0.25 5.0 5.0 10.0
Note- In foreign matter, the impurities of animal origin shall not be more than 0.10 percent by
weight.
B) General requirements:
Arhar/Tur whole shall –
a) be the dried and mature seeds of Pulse (Cajanus cajan);
b) be sweet, clear, wholesome, uniform in size, shape, colour and in sound merchantable
condition;
c) be free from living and dead insects, fungus infestation, added colouring matter,
moulds, obnoxious smell, discolouration;
d) be free from rodent hair and excreta;
e) be free from toxic or noxious seeds viz. Crotolaria (Crotolaria spp.), Corn cockle
(Agrostemma githago L.), Castor bean (Ricinus communis L.), Jimson weed (Dhatura
spp.), Argemone mexicana, Khesari and other seeds that are commonly recognized as
harmful to health;
f) Uric acid and Aflatoxin shall not exceed 100 milligrams and 30 micrograms per kilogram
respectively;
g) Comply with the restrictions in regard to poisonous metals (rule-57),crop contaminants
(rule 57-A), naturally occurring toxic substances (rule 57-B), use of insecticides (rule-
65), and other provisions prescribed under the Prevention of Food Adulteration
Rules,1955, as amended from time to time. Top
Grade specification and definition of quality of split husked Red gram (Arhar/Tur) pulse
under Agmark
A) Special requirements:
Grade Maximum limits of tolerance (per cent by weight) Weevilled
desig- Moisture Foreign matter Other Damaged Brokens grains,
nation edible grains grains percent by
Organic Inorganic grains count
(1) (2) (3) (4) (5) (6) (7) (8)
Special 10.0 0.10 Nil Nil 0.5 2.0 1.0
Standard 12.0 0.50 0.10 0.2 2.0 5.0 2.0
General 14.0 0.75 0.25 0.5 5.0 8.0 3.0

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Note- In foreign matter, the impurities of animal origin shall not be more than 0.10 percent by
weight.

B) General requirements:
Arhar/Tur Split (husked) shall –
(a) consist of husked and split seeds of pulse (Cajanus cajan);
(b) be sweet, clear, wholesome, uniform in size, shape, colour and in sound merchantable
condition;
(c) be free from living and dead insects, fungus infestation, added colouring matter,
moulds, obnoxious smell, discolouration;
(d) be free from rodent hair and excreta;
(e) be free from toxic or noxious seeds viz. Crotolaria (Crotolaria spp.), Corn cockle
(Agrostemma githago L.), Castor bean (Ricinus communis L.), Jimson weed (Dhatura
spp.), Argemone mexicana, Khesari and other seeds that are commonly recognized to
health;
(f) Uric acid and Aflatoxin shall not exceed 100 milligrams and 30 micrograms per kilogram
respectively;
(g) Comply with the restrictions in regard to poisonous metals (rule-57), crop contaminants
(rule 57-A), naturally occurring toxic substances (rule 57-B), use of insecticides (rule
65), and other provisions prescribed under the Prevention of Food Adulteration Rules,
1955, as amended from time to time.

EXPLANATIONS:-

For the purpose of these rules,--

(1) “foreign matter means any extraneous matter other than food grains comprising of;
(a) “Inorganic matter” includes metallic pieces, dust, sand, gravel, stones, dirt,
pebbles, lumps of earth, clay and mud and animal filth etc.;
(b) “Organic matter” consisting of husk, straws, weeds and other inedible grains etc.;
(2) “other edible grains” means any edible grains (including oil seeds) other than the one
which is under consideration;
(3) “damaged grains” means grains that are sprouted or internally damaged as a result of
heat, microbe, moisture or weather viz. ergot affected grains and kernel bunt grains;
(4) “Broken grains” includes pieces below 3/4th and above 1/4th of the full size splits.
(5) “broken and fragments” includes pieces below 3/4th of the full size splits.
(6) “weevilled grains” means grains that are partially or wholly bored by insects injurious to
grains but does not include germ eaten grains and egg spotted grains.
(7) “poisonous, toxic and/or harmful seeds” means any seeds which if present may have
damaging or dangerous effect on health, organoleptic properties or technological
performance such as Dhatura (D. fastuosa linn and D. stramonium linn.) Corn cokle
(Agrostemma githago L. Machai Lallium remulenum linn.) Akra (Vicia species).
Source: Pulses Grading and Marking Rules, 2003, notified vide G.S.R. No. 129 dated 07-04-
2004, Directorate of Marketing and Inspection.
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ii) Grading for Procurement by NAFED:

NAFED is the nodal agency of the Government of India for procuring Red gram in
different states under the Price Support Scheme (PSS). The concerned State Co-operative
Marketing Federations are the procuring agents for NAFED. Only one grade i.e. Fair Average
Quality (FAQ) is prescribed every year/season for procurement of pulses including Red gram
under the Price Support Scheme. All the purchases under the PSS by NAFED are made in
accordance with these specifications.
NAFED grade specifications of Red gram (Price support operation during 2002-2003
marketing season)
A) General requirements:
i) Pulses shall have reasonably uniform size, shape and colour.
ii) Pulses shall be sweet, clean, wholesome and free from moulds, weevils, obnoxious smell,
discolouration, admixture of deleterious substances (including added colouring matter) and
any other impurity except to the extent indicated in the schedule.
B) Special requirements: Top
Sl. Special characteristics Maximum limits of tolerance
No. (%by weight per qtl.) for FAQ
1. Foreign matter 2
2. Admixture 3
3. Damaged pulses 3
4. Slightly damaged pulses 4
5. Immature and shrivelled pulses 3
6. Weevilled pulses 4
7. Moisture 12
C) Note:
1. Foreign matter includes dust, stones, lumps of earth, chaff, husks-stem, straw or any
other impurity including edible and non-edible seeds.
2. Admixture means any pulses other than the principal pulse.
3. Damaged pulses are those pulses that are internally damaged or discoloured to such
an extent that the damage or discolouration materially affects the quality of the pulses.
4. Slightly damaged pulses are those pulses that are superficially damaged or discoloured
such damage or discolouration not materially affecting the quality of the pulses.
5. Immature and shrivelled pulses are those pulses that are not properly developed.
6. Weevilled pulses are those pulses that are partially or wholly bored or eaten by weevil
or other grain insects.
Source: Action plan and operational arrangements for procurement of Oilseeds and Pulses
under Price Support Scheme in Kharif Season 2002, NAFED, New Delhi.
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iii) Grading under Prevention of Food Adulteration Act (PFA):

SPLIT PULSE (DAL) ARHAR:
Dal Arhar shall consist of husk and split seeds of red gram [Cajanus cajan (L) Millsp]. It
shall be sound, clean, sweet, dry, wholesome and free from admixture of unwholesome
substance.

It shall also conform to the following standards, namely :-

(i) Moisture – Not more than 14 per cent by weight (obtained by heating the pulverised
pulses at 130°C - 133°C for two hours).
(ii) Foreign matter – Not more than 2 per cent by weight out of which inorganic matter
shall not exceed 1 per cent by weight.
(iii) Other edible grains – Not more than 0.5 per cent by weight.
(iv) Damaged grains – Not more than 5 per cent by weight.
(v) Weevilled grains – Not more than 3 per cent by count.
(vi) Uric acid content – Not more than 100 mg per kilogram.
(vii) ¹[A flatoxin – Not more than 30 micrograms per kilogram.]
²[(viii) Rodent hair and excreta – Not more than 5 pieces per kg:]
Provided that the total of foreign matter, other edible grains and damaged grains shall
not exceed 6 per cent by weight.
1.Subs.by G.S.R. 692(E), dated 11th October, 1999 (w.e.f. 11-10-1999).
2.Subs.by G.S.R. 792(E), dated 13th December,1995(w.e.f. 13-12-1995).
Source: The Prevention of Food Adulteration Act, 1954 along with The Prevention of Food
Adulteration Rules, 1955 as amended by The Prevention of Food Adulteration (Tenth
Amendment) Rules,2000 together with Commodity Index.
Top
iv) Grading under CODEX Standard for Certain Pulses
CODEX STAN 171-1989 (Rev.1-1995)
The Annex to this standard contains provisions which are not intended to be applied
within the meaning of the acceptance provisions of Section 4.A(I)(b) of the General Principles
of the Codex Alimentarius.
1. SCOPE
This Standard applies to the whole, shelled or split pulses defined below which are
intended for direct human consumption. The Standard does not apply to pulses intended for
factory grading and packaging, industrial processing, or to those pulses intended for use in the
feeding of animals. It does not apply to fragmented pulses when sold as such, or to other
legumes for which separate standards may be elaborated.
2. DESCRIPTION
2.1 Product Definition

12
 Top
Pulses are dry seeds of leguminous plants which are distinguished from leguminous
oil seeds by their low fat content.
The pulses covered by this Standard are the following:
- Beans of Phaseolus spp. (except Phaseolus mungo L. syn. Vigna mungo (L.)
Hepper and Phaseolus aureus Roxb.syn.Phaseolus radiatur L., Vigna radiata (L.) Wilczek);
- Lentils of Lens culinaris Medic. Syn. Lens esculenta Moench.;
- Peas of Pisum sativum L.;
- Chick peas of Cicer arientinum L.;
- Field beans of Vicia faba L.;
- Cow peas of Vigna unguiculata (L.) Walp., syn. Vigna sesquipedalis Fruhw., Vigna
sinensis (L.) Savi exd Hassk.

3. ESSENTIAL COMPOSITION AND QUALITY FACTORS

3.1 Quality Factors – General
3.1.1 Pulses shall be safe and suitable for human consumption.
3.1.2 Pulses shall be free from abnormal flavour, odours, and living insects.
3.1.3 Pulses shall be free from filth (impurities of animal origin, including dead insects) in
amounts which may represent a hazard to human health.
Top
3.2 Quality Factors – Specific
3.2.1 Moisture Content

3.2.1.1 Two maximum moisture levels are provided to meet different climatic conditions
and marketing practices. Lower values in the first column are suggested for countries with
tropical climates or when long-term (more than one crop year) storage is a normal commercial
practice. The values in the second column are suggested for more moderate climates or when
other short-term storage is the normal commercial practice.

Pulse Moisture Content

(per cent)
beans 15 19
lentils 15 16
peas 15 18
chick peas 14 16
cow peas 15 18
field beans 15 19

Lower moisture limits should be required for certain destinations in relation to the climate,
duration of transport and storage. Governments accepting the Standard are requested to
indicate and justify the requirements in force in their country.
Top
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3.2.1.2 In the case of pulses sold without their seed coat, the maximum moisture content
shall be 2 percent (absolute) lower in each case.
3.2.2 Extraneous matter is mineral or organic matter (dust, twigs, seedcoats, seeds of other
species, dead insects, fragments, or remains of insects, other impurities of animal origin).
Pulses shall have not more than 1% extraneous matter of which not more than 0.25% shall be
mineral matter and not more than 0.10% shall be dead insects, fragments or remains of
insects, and/or other impurities of animal origin.

3.2.2.1 Toxic or noxious seeds

The products covered by the provisions of this standard shall be free from the
following toxic or noxious seeds in amounts which may represent a hazard to human health.
Crotolaria (Crotalaria spp.), Corn cockle (Agrostemma githago L.), Castor bean
(Ricinus communis L.), Jimson weed (Datura spp.), and other seeds that are commonly
recognized as harmful to health.
Top
4. CONTAMINANTS
4.1 Heavy Metals
Pulses shall be free from heavy metals in amounts which may represent a hazard to
health.
4.2 Pesticide Residues
Pulses shall comply with those maximum residue limits established by the Codex Alimentarius
Commission for this commodity.
4.3 Mycotoxins
Pulses shall comply with those maximum mycotoxin limits established by the Codex
Alimentarius Commission for this commodity.
5. HYGIENE
5.1 It is recommended that the products covered by the provisions of this standard be
prepared and handled in accordance with the appropriate sections of the Recommended
International Code of Practice – General Principles of Food Hygiene (CAC/RCP 1-1969, Rev.
2-1985, Codex Alimentarius Volume 1B), and other Codes of Practice recommended by the
Codex Alimentarius Commission which are relevant to these products.
5.2 To the extent possible in good manufacturing practice, the products shall be free
from objectionable matter.
5.3 When tested by appropriate methods of sampling and examination, the products:
- shall be free from microorganisms in amounts which may represent a hazard to health;
- shall be free from parasites which may represent a hazard to health; and
- shall not contain any substance originating from microorganisms in amounts which may
represent a hazard to health.
Top
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 Top

6. PACKAGING
6.1 Pulses shall be packaged in containers which will safeguard the hygienic, nutritional,
technological, and organoleptic qualities of the product.
6.2 The containers, including packaging material, shall be made of substances which are
safe and suitable for their intended use. They should not impart any toxic substance or
undesirable odour or flavour to the product.
6.3 When the product is packaged in sacks, these must be clean, sturdy and strongly
sewn or sealed.
7. LABELLING
In addition to the requirements of the Codex General Standard for the Labelling of
Prepackaged Foods (CODEX STAN 1-1985, Rev. 1-1991, Codex Alimentarius Volume 1A),
the following specific provisions apply:
7.1 Name of the Product
The name of the product to be shown on the label shall be the commercial type of the pulse.
7.2 Labelling of Non-Retail Containers
Information for non-retail containers shall either be given on the container or in accompanying
documents, except that the name of the product, lot identification and the name and address of
the manufacturer or packer shall appear on the container. However, lot identification and the
name and address of the manufacturer or packer may be replaced by an identification mark,
provided that such a mark is clearly identifiable with the accompanying documents.
8. METHODS OF ANNALYSIS AND SAMPLING Top
See Codex Alimentarius Volume 13.
ANNEX
In those instances where more than one factor limit and/or method of analysis is given we
strongly recommend that users specify the appropriate limit and method of analysis.
FACTOR/DESCRIPTION LIMIT METHOD OF
ANALYSIS
DEFECTS Visual Examination
- Seeds with serious defects. Seeds MAX: 1.0%
in which the cotyledons have been
affected or attached by pests; seeds
with very slight traces of mould or
decay; or slight cotyledon staining
- Seeds with slight defects. Seeds
which have not reached normal MAX: 7.0% of which broken
development; seeds with extensive pulses must not exceed
seedcoat staining, without the 3.0%
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 Top
cotyledon being affected; seeds in
which the seedcoat is wrinkled, with
pronounced folding, or broken pulses
- Broken pulses. Broken in whole
pulses are pulses in which the
cotyledons are separated or one
cotyledon has been broken. Broken
in split pulses are pulses in which the
cotyledon has been broken
SEED DISCOLORATION Visual Examination

- Seeds of a similar colour but a MAX: 3.0%

different commercial type (except in
beans with white seeds)

- Seeds of different colour (other MAX: 6.0%

than discoloured seeds)

- Discoloured seeds MAX: 3.0%

- Discoloured seeds of the same MAX: 10.0%

commercial type

- Beans with green seed and peas

with green seeds with slight MAX: 20.0%
discolouration of the seed

PRESENTATION Buyer Preference Visual Examination

- Shelled pulses. Pulses without

their seedcoat, with the cotyledons
not separated

- Split pulses. Pulses without their

seedcoat, with the two cotyledons
separated one from the other

Source: www.codexalimentarius.net Top

3.3.2 Adulterants and Toxins:
Adulterants:
In India, normally adulteration / contamination in agricultural produce occurs either
intentionally for financial gain or, incidentally due to carelessness and lack of proper hygienic

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condition of processing, packing, storing, transportation and marketing. The adulterants cause
different food borne diseases.

In Red gram, following adulterants are commonly found:

Khesari Dal: Khesari Dal (Lathyrus sativus) is often mixed in Red gram Dal as adulterant.
Khesari Dal contains a toxic substance known as Beta-oxylyl amino alanine (BOAA). It is a
neurotoxin amino acid and water-soluble. When Khesari Dal is consumed in larger quantities
(regularly) for long period, it causes neuro-paralysis of the lower limbs known as Lathyrism.
The method of control are the detoxification of toxic substance through a simple
household procedure i.e. the toxin can be easily removed by soaking the Dal in boiling water
and discarding the water before cooking.
Metanil yellow: It is used in colouring Red gram Dal to get attractive deep yellow colour.
Metanil yellow is non-permitted coal tar dye commonly known as ‘Kishori Rang’, which is toxic
and banned. It causes cancer. Food grade colours are available in the market but traders use
metanil yellow, as it is cheap.
Lead chromate: This is also used to colour Red gram Dal. It is one of the most toxic salts of
lead. It can cause anaemia, paralysis, mental retardation and brain damage in children and
abortion in pregnant women. This may cause irreparable damage to human body system
when eaten at regular intervals for a long period.
Adulteration is normally detected through laboratory tests. However, certain simple
screening tests for detection of adulterants are given below:
Top
Table No. 10: Adulterants used in Red gram Dal (split) and their detection tests
Adulterants Detection Test
1.Khesari Dal Add 50 ml. of diluted HCl acid to a small quantity of Dal and keep
(Botanical name- on simmering water for about 15 minutes. Development of pink
Lathyrus sativus) colour indicates the presence of Khesari Dal.
2.Metanil yellow Add concentrated HCl to small quantity of Dal in a little amount of
water. Immediate development of pink colour indicates the
presence of metanil yellow and similar colour dyes.
3.Lead chromate Shake 5 grams of Red gram Dal with 5 ml. of water and a few drops
of HCl. Pink colour indicates presence of lead chromate.
Source: Central Agmark Laboratory, Directorate of Marketing and Inspection, Nagpur
Toxins:
Toxins are the natural toxic substances present in some food materials, which may
cause serious illness.
Aflatoxin:
Aflatoxin contamination is most common occurrence in the agricultural produce/food.
Aflatoxin is one type of mycotoxins containing toxic substances, which are produced by
moulds or fungi. Aflatoxins contamination may occur in pulses in the field itself, in farm storage
and after processing, whenever environmental conditions i.e high moisture/humidity and
temperature, are favourable for the growth of fungi. Aflatoxins are produced by fungi namely
17
Aspergillus flavus, Aspergillus ochraceus and Aspergillus parasiticus. The aflatoxigenic
Aspergilli is generally regarded as storage fungi.
The ingestion of aflatoxin suppresses growth, productivity and immunity of human
being. Aflatoxins are carcinogenic, mutagenic and cause liver damage etc.
Prevention and control of aflatoxins:
♦ Store the Red gram after drying upto safe moisture level i.e. within the prescribed range.
♦ Prevent the growth of aflatoxin by proper drying of grains.
♦ Use proper and scientific storage.
♦ Prevent insect infestation by chemicals to avoid mould formation.
♦ Separate the infected grains from sound grains to avoid aflatoxin contamination.
Top
3.3.3 Grading at producers’ level and under Agmark:
There is an increasing recognition to the fact that producers need to be assisted in
grading their produce before sale so that they may get better price. For securing adequate
returns to the producer-seller, the scheme of “Grading at Producers’ Level” was introduced in
1962-63 by Directorate of Marketing and Inspection. The main objective of this scheme is to
subject the produce to simple tests and assign a grade before it is offered for sale. After
grading, the producers get prices commensurate with the quality of the produce. The
programme is being implemented by the States/Union Territories. Up to 31-03-2002, 1411
grading units have been set up in the country. Grading of the produce at producers’ level
enables farmers to get higher price for their produce as well as it helps the consumers to get
standard quality produce at fair price. Grading not only facilitates the dissemination of prices
and market information but also assist systematic distribution at all stages.
Table No. 11: Progress of grading of Red gram at producers’ level and under Agmark

At producers’ Level Under Agmark*

Year Quantity Value Quantity Value
(Tonnes) (Rs.Lakh) (Tonnes) (Rs.Lakh)
2001- 2002 237939 32706.88 11636* 3326.37*
2002- 2003 188896 27350.61 11708* 4964.16*
(Provisional)
* Total Pulses (Pulse wise data is not available).
Source: Directorate of Marketing and Inspection, Faridabad.
During the year 2001-2002, about 237939 tonnes of Red gram valued at Rs. 32706.88
lakh was graded at producers’ level against 188896 tonnes valued at Rs.27350.61 lakh in the
year 2002-2003.
However, only 11636 tonnes of pulses valued worth Rs. 3326.37 lakhs were graded
under Agmark during the year 2001-2002 for domestic consumption as against 11708 tonnes
valued at Rs. 4964.16 lakhs during the year 2002-2003(provisional).
3.4 Packaging: Top

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 Top
Packaging is an important function in the marketing of Red gram. It is a practice to
protect the produce from any damage during storage, transportation and other marketing
operations. In recent years, packaging plays an important role in marketing of produce. The
good packaging of Red gram not only facilitates convenience in transportation and storage but
also attracts consumer to pay more. The packaging reduces the marketing cost and protects
the quality.
Availability of packaging materials:
The following packaging materials are used in packaging of Red gram:
1. Jute bags: Gunny bags made up of jute are widely used by farmers and traders. As
per NAFED, packing of Red gram should be made in New B Twill (Jute)
gunny bags in 100 kg net. The main source of these bags is Directorate
General of Supplies and Disposal (DGS & D), Kolkata.
2. HDPE/pp bags: These bags are also used for packaging Red gram.
3. Polythene
impregnated
jute bags: These are the jute bags blended with synthetics.
4. Poly pouches: In recent years, Red gram is packed in poly pouches with attractive
label and brand name. Generally, these are available in 1, 2 and 5 kg.
pack size.
5. Cloth bags: In some areas, cloth bags are also used in packing of Red gram.
Generally, Red gram used for seed purpose is packed in cloth bags.
For good packaging, the packaging must posses the following qualities:
Top
✸ It must protect quality and quantity.
✸ It must prevent spoilage during transit and storage.
✸ It must tell information about quality, variety, date of packing, weight and price etc.
✸ It must be convenient in handling operations.
✸ It must be convenient to stack.
✸ It must be cheap, clean and attractive.
✸ It must be biodegradable.
✸ It must be free from adverse chemicals.
✸ Packing materials should be useful after the first use.

Method of packing:
(i) Pulses shall be packed in gunny bags/jute bags, poly woven bags, poly pouches, cloth
bags or other suitable packages which shall be clean, sound, free from insect, fungal
infestation and the packing material shall be as permitted under the Prevention of food
adulteration rules, 1955.
(ii) Pulses shall be packed in containers which safeguard the hygienic, nutritional and
organoleptic qualities of the products.
(iii) The containers, including packaging material, shall be made of substances which are
safe and suitable for their intended use. They should not impart any toxic substance or
undesirable odour or flavour to the product.

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(iv) The net weight of the Pulses in a package shall be as per the provisions prescribed under
the Packaged Commodities Rules, 1977.
(v) Each package shall contain pulses of the same type and of the same grade designation.
(vi) Each package shall be securely closed and sealed.
3.5 Transportation: Top

The transportation of Red gram is mainly done by head loads, bullock or camel cart,
tractor-trolleys, trucks, railways and ships depending upon the availability of transportation
means, quantity of the produce and the stage of marketing. The most common means of
transportation used are given in Table No.12.

Table No. 12: Means of transportation used at different stages of marketing

Stage of marketing Agencies Means of transport used

✸ From threshing floor to the village Farmers By head load, pack animal, bullock
market or primary market. or camel cart and tractor trolley.

✸ From primary market to Traders / By trucks, railways.

secondary whole sale market millers
and miller
✸ From wholesale markets and Millers / By trucks, railways, mini trucks,
miller to retailer retailers tractor trolley.
✸ From retailer to consumer Consumers By hand, bicycle, rickshaw.

✸ For export and import Exporters By railways and ship

and
importers

Availability of cheaper and convenient modes of transport:

There are different modes of transport used in Red gram transportation. Road and Rail
transport is normally used for internal markets; however, for export and import mainly Sea
transport is used. The most common modes of transportation are

1) Road transportation: Road transport is the most pre-dominant mode of transport used in
the movement of Red gram right from the producing fields to
the ultimate consumer. The following means of road
transport are used in different parts of the country to
transport Red gram:

a) Head load

b) Pack animals

c) Bullock carts

Top
20
 Top

d) Tractors trolley e) Trucks

2) Railways: Railway is one of the most important

means of transportation of Red gram. Railway is cheaper
than road transport and it is more suitable for longer
distance, as well as for large quantity. The tariff charges
for the transport of Red gram depends on distance,
quantity etc. Railway transportation requires more
handling cost as it requires loading and unloading
charges and local transportation cost. Also, losses are
more in case of transport by railways.

3) Water transport: This is the oldest and cheapest

mode of transport. It includes river transport, canal
transport and sea transport. Only small quantities are
transported through internal waterways. The export and
import is mainly done by sea transport. This transport
system is slow but cheap and suitable for carrying large
quantity of Red gram.
Selection of mode of transportation:
For the selection of mode of transportation, following points should be considered:

☛ The mode of transportation should be cheaper among available alternatives.

☛ It should be convenient during loading and unloading.
☛ It must protect during transportation from adverse weather conditions.
☛ It should be safe from pilferage etc.
☛ It must deliver Red gram to consignee in stipulated period.
☛ It should be easily available particularly during post harvest period. Top
21
☛ Distances should be considered.
Top

3.6 Storage:
The storage is an important aspect of post harvest technology because Red gram is
seasonally produced but consumed throughout the year. Therefore, the supply of Red gram
has to be maintained by proper storage throughout the year. Storage protects the quality of
grains from deterioration and helps in stabilization of prices by regularising demand and
supply. In our country, the storage losses caused by insects, rodents and microorganisms are
maximum. Lack of storage facilities force the farmers to sell their produce at low price
immediately after harvest. It is essential that during storage, Red gram should remain in good
condition and not undergo any deterioration due to fungal and insect infection or attack by
rodents.
Requirements for safe storage:
The following requirements should be fulfilled for safe storage of Red gram:
¾ Selection of site (location):
The storage structure should be located on a raised well-drained place. It should be easily
accessible. The storage structure should be protected from humidity, excessive heat, direct
sun rays, insects and rodents. Storage godown should be constructed on a well-built
platform at a height of not less than 1 foot above ground level to prevent dampness.
¾ Selection of storage structure:
The storage structure should be selected according to the quantity of Red gram to be stored.
¾ Cleaning of storage structures:
The storage structures should be properly cleaned before storing Red gram. There should
be no left over grains, cracks, holes and crevices in the structure, which may harbour
insects. Before storage, the storage structure should be fumigated.
¾ Cleaning and drying of Red gram: Top
Before storage, the Red gram should be properly cleaned and dried. Grains should be free
from foreign matter and excessive moisture to avoid quality deterioration and pest attack.
¾ Cleaning of bags:
As far as possible, new gunny bags should be used. The old gunny bags should be properly
cleaned, dried and fumigated before use.
¾ Separate storage of new and old stock:
To check infestation and to maintain hygienic condition of godown, the new and old stocks
should be stored separately.
¾ Cleaning of vehicles:
The vehicles used for transporting Red gram should be properly cleaned with phenyl.
¾ Use of dunnage:
Dunnage should be used before stacking bags to avoid absorption of moisture from floor.
Bags should be kept on wooden crates or bamboo mats along with a cover of polythene
sheet, preferably.
¾ Proper aeration:
There should be proper aeration during clear weather condition but care should be taken to
avoid aeration during rainy season.
¾ Regular inspection:

22
 Regular inspection of stored Red gram should be carried out to check infestation. It is
necessary to maintain proper health and hygiene of the stock.

Top

3.6.1 Major storage pests and their control measures:

A number of pests damage the produce during storage. These pests cause both
quantitative and qualitative losses. Pests of Red gram also damage seed viability and nutritive
value of the produce. The infestation of these pests depends on various factors like moisture
content of the grain, relative humidity, temperature, storage structures, storage period,
processing, unhygienic condition, fumigation frequency, etc. The major stored grain pests of
Red gram and their control measures are given below:
Name of pests Figure of pest Nature of damage Control measures
1. Pulse beetle i) The larvae bore into Two types of
grains and feed the entire treatments are
Callosobruchus content of the grain leaving followed to control
sps. only the shell (seed coat) infestation.
behind. A)Prophylactic treat-
ii) Adults cut out circular ment (preventive):
holes in seeds. Use following
iii) Sometimes these insects insecticides to prevent
begin their infestation, infestation in godown
when the pods are in the and stock of Red
ripening stage in the field, gram.
and are subsequently 1.Malathion
Beetle carried with the grains into (50 percentEC):
the store after harvest. Mix 1 litre in 100 litre
iv) These pests do not of water. Use 3 litre
attack split pulses.

Top

23
 Top
2.Khapra i) Larvae are one of the prepared solution per
beetle most serious stored grain 100 square meter
pests but the beetle itself area. Spray at every
Trogoderma does not damage. 15 days interval.
granarium
ii) The larvae starts feeding 2.DDVP
(Everts)
from embryo point and later (76 percent EC):
consume the entire kernel, Mix 1 litre in 150 litre
which makes the grain of water. Use 3 litre
Beetle hollow and only the husk prepared solution per
remains. 100 square meter
iii) Infested grains are full area. Do not spray on
with frass, cast skins of stock. Spray on walls
larvae and excreta, which and floors of the
results in deterioration of godown as and when
quality of grains. required or once in a
iv) The larvae are often month.
found on edges of jute 3.Deltamethrin
stacks and make the (2.5/WP):
infested store unhygienic. Mix 1 kg in 25 litre of
Larvae water. Use 3 litre
prepared solution per
3. Dried bean i) Infestation is induced in 100 square meter
weevil the field on ripening of crop area. Spray on gunny
when pods are split. bags after 3 months
Acanthoscelides ii) Larvae feed on the seed interval.
obtectus
by boring. B) Curative
(Say)
treatment:
Use following fumi-
gants to control
infested stock/godown
of Red gram.
4. Rice moth i) Larvae contaminate the 1.Alluminium
food grains with dense phosphide:
Corcyra webbing, excreta and hairs.
cephalonica For stack fumigation,
ii) Whole grains are bound use 3 tablets/tonne
(Stainton)
into lumps. and put polythene
Moth cover on infested
5.Confused i) Beetle and larvae both stock. For godown
flour beetle feed on broken and fumigation, use 120 to
damaged grains produced 140 tablets/100 cubic
Tribolium by milling and handling or
confusum J.du V. meter area and keep
attacked damaged grains of godown structure
other insects. airtight and closed for
7 days.

Top

24
 6. Rodents i) Rodents eat whole grains Rat cage:
and split pulses. Different types of rat
ii) They also cause cages are available in
mechanical damage to the market. Caught
gunny bags and other rats can be killed by
storage structures of Red dipping into water.
gram by cutting, which
results spilling of grains. Poison baits:
iii) They spill more grains Anti-coagulant pesti-
than they consume. cide like Zinc
iv) Rodents also phosphide is mixed
contaminate Red gram by with bread or any
hair, urine and feces, which other food stuff used
deteriorate the quality and as bait. Keep baits for
cause many diseases, like a week.
cholera, food poisoning,
ringworm, rabbies etc.

3.6.2 Storage structures: Top

Traditional storage structures: Some common structures are:
Mud bins or Kothi: Cylindrical in shape and are made up of clay mixture with straw and
cow dung or mud and bricks.
Metal drums: Cylindrical in shape and are made up of iron sheets.
Thekka: Rectangular in shape and are made up of gunny or, cotton wound
around wooden support.
Gunny bags: Gunny bags are made up of jute.
Improved storage structures:
The Government of India has made efforts to promote improved storage facilities at the
farm level and launched a programme to impart scientific knowledge to farmers regarding
storage of grains known as the Save Food Grain Compaign. Indian scientists and agriculturists
have designed and fabricated improved storage bins for the use of farmers, which are
moisture resistant and rodent-proof.
i) Improved bins:
a) Pusa kothi b) Nanda bins c) Hapur kothi
d) PAU bins e) PKV bins f) Chittore stone bins etc.
ii) Warehouse: Warehouse is scientific storage structure constructed and used by
different organisations like CWC, SWC, NAFED etc.
iii) CAP storage
(cover and plinth): It is an economical way of storage on a large scale.
iv) Silos: Silos are used for storage of food grains. Silos are made from bricks,
concrete and metallic materials with automatic loading and unloading
equipments.
Top
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 Top
3.6.3 Storage facilities:
i) Producers’ storage:
Producers store Red gram in various types of traditional and improved structures.
Generally, these storage structures are used for short period. Different organizations
/institutions have developed improved structures for storage with varying capacities and
shapes like Hapur kothi, Pusa kothi, Nanda bins, PKV bins. These are usually constructed on
a raised platform or plinth constructed of plastered mud brickwork, stone slabs or wooden
planks. Some producers also store Red gram in jute gunny bags or in gunny bags lined with
polythene stacked in the room.
ii) Rural godowns:
Considering the importance of rural storage in marketing of agricultural produce, the
Directorate of Marketing and Inspection initiated a Rural Godown Scheme, in collaboration
with NABARD and NCDC, to construct scientific storage godown with allied facilities in rural
areas and to establish a network of rural godowns in the States and Union Territories. Upto
31-12-2002, 2373 new construction godown projects were sanctioned through NABARD and
NCDC with the total storage capacity of 36.62 lakh tonnes and 973 godown projects having
the capacity of 0.956 lakh tonnes under renovation and expansion under this scheme. The
main advantages of Rural Godown Scheme are as under:
i) To prevent distress sale of food grains and other agricultural commodities immediately
after harvest.
ii) To reduce quantitative-cum-qualitative losses due to storage in sub-standard godowns.
iii) To reduce pressure on transport system during the post-harvest period.
iv) To help the farmers in getting pledge loans against the stored produce.
Top
iii) Mandi godowns:
Most of the States and Union Territories have enacted Agricultural Produce Market
(Regulation) Act. The reduction of loss of produce was aimed in the scheme of regulated
market. The regulated markets developed modern market yards with necessary infrastructural
facilities. The APMCs have constructed godowns so that the agricultural produce brought into
the market should be stored safely by market committees. The produce is weighed in the
presence of producer-seller at the time of keeping the produce in the godown after grading
and receipt is issued indicating the quality and weight of produce to be stored. The receipt is
issued by the licensed general commission agents or brokers depending upon the case. The
CWC, SWC and Co-operative societies have also constructed godowns in the market yards.
In most of the secondary and terminal regulated markets, central and state
warehousing corporations also provide scientific storage facilities at prescribed storage charge
and issue warehousing receipt against pledge of produce, which is a negotiable document for
obtaining finance from the Scheduled Banks.
iv) Central Warehousing Corporation (CWC):
CWC was established during 1957. It is one of the biggest public warehouse operators
in the country. In March 2002, CWC was operating 475 warehouses all over the country
under 16 regions, covering total 225 districts, with a total storage capacity of 8.91 million
tonnes. State-wise storage capacity with CWC as on 31-03-2002 is given below:
Table No.13: State-wise storage capacity with CWC as on 31-03-2002

26
 Top

Name of state No. of warehouses Total capacity (Tonnes)

1.Andhra Pradesh 49 1259450
2.Assam 6 46934
3.Bihar 13 104524
4.Chhattisgarh 10 259964
5.Delhi 11 135517
6.Gujarat 30 515301
7.Haryana 23 338860
8.Karnataka 36 436893
9.Kerala 7 93599
10.Madhya Pradesh 31 665873
11.Maharashtra 52 1248510
12.Orissa 10 150906
13.Punjab 31 820604
14.Rajasthan 26 371013
15.Tamil Nadu 27 676411
16.Uttaranchal 7 73490
17.Uttar Pradesh 50 1018821
18.West Bengal 43 563698
19.Others 13 136826
Total 475 8917194
Source: Annual Report 2001-2002, Central Warehousing Corporation, New Delhi.
Top
Apart from storage, CWC also offers services in the area of clearing and forwarding,
handling and transportation, procurement and distribution, disinfestation services, fumigation
services and other ancillary activities i.e. safety and security, insurance, standardization and
documentation. The CWC has also introduced a scheme, called the Farmers Extension
Service at selected centres to educate farmers about the benefits of a scientific storage and
use of public warehouses.
The CWC is also operating 109 custom bonded warehouses with a total operated
capacity of 6.95 lakh tonnes as on 31-03-2002.These bonded warehouses are specially
constructed at a seaport or an airport and accept imported commodities for storage till the
payment of customs by the importer of the commodities.
v) State Warehousing Corporations (SWCs):
Different states have set up their own warehouses in the country. The area of
operation of the State Warehousing Corporations are district place of the state. The total share
capital of the state warehousing corporations is contributed equally by the Central
Warehousing Corporation and the concerned State Government. At the end of December
2002, SWCs were operating 1537 warehouses in 17 states of the country with the total
capacity of 201.90 lakh tonnes. The state-wise storage capacity with SWCs as on 31-12-2002
are given below.
Table No.14: State-wise storage capacity available with the State Warehousing
Corporations (SWC) as on 31.12.2002

27
 Total capacity
Name of SWC No. of warehouses
(In lakh tonnes)
1.Andhra Pradesh 120 17.14
2.Assam 44 2.67
3.Bihar 44 2.29
4.Chhattisgarh 95 6.66
5.Gujarat 50 1.43
6.Haryana 113 20.48
7.Karnataka 107 6.67
8.Kerala 62 1.85
9.Madhya Pradesh 219 11.57
10.Maharashtra 157 10.32
11.Meghalaya 5 0.11
12.Orissa 52 2.30
13.Punjab 115 72.03
14.Rajasthan 87 7.04
15.Tamil Nadu 67 6.34
16.Uttar Pradesh 168 30.42
17.West Bengal 32 2.58
Total 1537 201.90

Source: Central Warehousing Corporation, New Delhi.

Top

vi) Co-operatives:
The National Co-operative Development Corporation (NCDC) has been making
systematic and sustained efforts to assist in the construction of scientific storage facilities at
co-operative level. The NCDC has been implementing storage programme through different
schemes i.e. Centrally sponsored scheme, Corporation sponsored scheme and other
Internationally aided projects.
The objective of the scheme is to avoid distress sale by farmers and to make available
the farm inputs at a reasonable price. Upto 31-03-2001, storage capacity of 137.63 lakh
tonnes has been established by NCDC.

The state-wise number and capacity of co-operative godowns available with NCDC are as
under:
Table No.15: State-wise co-operative storage capacity available with NCDC as on
31-03-2001

Total
Name of state Rural level Urban/Semi-urban capacity (Tonnes)
level
1.Andhra Pradesh 4003 571 690470
2.Assam 770 262 297900
28
3.Bihar 2455 496 557600
4.Gujarat 1815 401 372100
5.Haryana 1454 376 693960
6.Himachal Pradesh 1634 203 202050
7.Karnataka 4828 921 941660
8.Kerala 1943 131 319585
9.Madhya Pradesh 5166 878 1106060
10.Maharashtra 3852 1488 1950920
11.Orissa 1951 595 486780
12.Punjab 3884 830 1986690
13.Rajasthan 4308 378 496120
14.Tamil Nadu 4757 409 956578
15.Uttar Pradesh 9244 762 1913450
16.West Bengal 2791 469 478560
17.Other States 1031 256 312980
Total 55886 9426 13763463

Source: Annual Report 2000-2001, National Co-operative Development Corporation, New

Delhi. Top
3.6.4 Pledge finance system:
Micro level studies indicate that distress sale by the small farmers account for about
50% of the marketable surplus. The farmers are often compelled to sell their produce
immediately after harvest when the prices are low. To avoid such distress sale, Government of
India, promoted Pledge Finance Scheme through a network of rural godowns and negotiable
warehouse receipt system. Through this scheme, small and marginal farmers can get
immediate financial support to meet their requirements and retain the produce till they get
remunerative price.
According to the RBI guidelines, under this scheme loan/advances upto 75 percent of
the value of the produce kept in the godown can be given to farmers against
pledge/hypothecation of agricultural produce (including warehouse receipts) subject to a
ceiling of Rs. 1 lakh per borrower.
Such loan is given for a period of 6 months, which can be extended upto 12 months
based on financing banks commercial judgement. The commercial banks/co-operative
banks/RRBs, provide credit to the farmers for the produce stored in the godown under this
scheme. The banking institutions accept the godown receipt on its being duly endorsed and
delivered to bank for pledge loan against hypothecation of produce as per RBI guidelines.
Farmers are given freedom to take back their produce once the pledge loan is repaid. Facility
of pledge finance is extended to all farmers, whether they are the borrowing members of

29
Primary Agricultural Credit Societies (PACS) or not and the District Central Cooperative Banks
(DCCBs) can directly finance individual farmers on the strength of the pledge.
Benefits:
(i) This increases the retention capacity of the small farmers, which consequently also
enable the farmers to avoid distress sale.
(ii) This minimises the farmers’ dependence on the commission agents as the pledge
finance provides financial support to them immediately after harvest period.
(iii) Participation of the farmers, irrespective of their land holding size, increases the arrivals
in market yards throughout the year.
(iv) This gives a sense of security to the farmers even if their produce is not sold out in the
market yard immediately.
Top
4.0 MARKETING PRACTICES AND CONSTRAINTS
4.1 Assembling:
Assembling is an important marketing function. Assembling includes the operation of
collecting Red gram produce from different villages to a central place i.e. primary market and
secondary market for its further movement to the Dal millers or the consumers.

Major assembling markets:

Some important assembling markets of different states are as under:
Name of the
major producing Important markets
states
1. Andhra Pradesh Asifabad, Echoda, Kagaznagar, Adilabad, Narayanpet, Badepally,
Shadnagar, Gadwal, Alampur, Karimnagar, Jagityal, Jammikunta,
Warangal, Kesamudram, Jangaon, Mahaboobabad, Jaheerabad,
Tandur, Vikarabad, Pargi, Vijayawada, Tenali, Suryapat,
Miryalaguda, Vizianagaram.
2. Karnataka Sedam, Gulbarga, Bidar, Raichur, Yadgir, Shorapur, Basvakalyani,
Bhalki, Gadag, Holealur, Mundagi, Hubli, Ranibennur, Bangalore,
Haveri, Bijapur, Chitradurga, Chelekere, Mysore, Kollegal, Gauveri,
Biddenur, Chenapatna, Arsikere, Chintamani, Hiriyur, Devengere,
Tumkur, Pavagada, Madhugiri, Sira, Bhagalkota, Badami.
3. Madhya Pradesh Jabalpur, Shahpura, Katni, Gadarwara, Tendukheda, Chhindwara,
Betul, Rewa, Bhopal, Gairatganj, Udaipura, Khirkiya, Itarsi, Pipariya,
Satna, Sidhi, Khategaon, Kannod, Dabra, Bhind, Alampur, Lahar,
Indore, Khandwa, Burhanpur, Harsud, Sagar, Damoh, Ajaygarh,
Loundi, Dewas.
30 Top
 4. Maharashtra Jamkhed, Karjat, Kopargaon, Newasa, Parner, Pathardi, Rahuri,
Sangamner, Shevgaon, Shrigonda, Shrirampur, Dhule, Akole,
Dondaicha, Baramati, Sangli, Solapur, Aurangabad, Jalna, Murud,
Nagpur.
5. Uttar Pradesh Kanpur, Varanasi, Gorakhpur, Agra, Allahabad, Hathras, Lucknow,
Bahraich, Banthra, Ballia, Robertsganj, Bareilly, Meerut, Sitapur.
4.1.1 Arrivals: Top
The disposal of Red gram commences shortly after threshing since the producers
require funds for the purpose of discharging their various financial obligations. During 2000-
2001, the total arrivals of Red gram in the 12 markets of Uttar Pradesh were reported to be
1,92,013 tonnes followed by 21 markets in Maharashtra (83286.2 tonnes), whereas the
arrivals in Karnataka, Madhya Pradesh and Andhra Pradesh were 57056.5, 55776 and 23521
tonnes respectively. The arrivals of Red gram during 1999-2000 to 2001-2002 in important
markets of major producing states are given as under.
Table No. 16: Arrivals of Red gram in important markets of major producing
states in India
Sl. Name of the states Arrivals (in tonnes)
No. 1999-2000 2000-2001 2001-2002
1. Andhra Pradesh (20 markets) 35982 23521 27246
2. Karnataka (4 markets) 55743.8 57056.5 51774.3
3. Madhya Pradesh (30 markets) 85722 55776 65114
4. Maharashtra (21 markets) 97438.2 83286.2 NA
5. Uttar Pradesh (12 markets) 140265 192013 167859
Source: Sub-offices of Directorate of Marketing and Inspection
4.1.2 Despatches:

Pulses including Red gram (except Bengal gram) were mostly despatched to the
markets within the state or to the markets of the adjoining states. Pulses including Red gram
(except Bengal gram) from Uttar Pradesh markets were mainly despatched to Assam, Bihar,
West Bengal and Tamil Nadu. West Bengal markets despatched mainly to Assam. Andhra
Pradesh markets despatched to Assam, Delhi and West Bengal, whereas Bihar markets
despatched to Assam and West Bengal. Delhi markets despatched pulses mainly to Assam,
Uttar Pradesh, Tamil Nadu and West Bengal whereas Maharashtra markets despatched to
Delhi, Uttar pradesh, West Bengal and Rajasthan. During 1998-99 to 2000-2001, the
despatches of pulses including Red gram (except Bengal gram) from different states are as
under:

States from where States to which arrived

despatched
1.Andhra Pradesh Assam, Delhi, West Bengal
2.Bihar Assam, West Bengal, Tamil Nadu, Tripura
3.Delhi Assam, Uttar Pradesh, Tamil Nadu, West Bengal, Andhra Pradesh
4.Haryana Assam, Gujarat
5.Maharashtra Delhi, Uttar Pradesh, West Bengal, Punjab, Rajasthan
31 Top
 6.Madhya Pradesh Bihar, Orissa, West Bengal
7.Rajasthan Tamil Nadu, Jammu & Kashmir, Uttar Pradesh
8.Uttar Pradesh Assam, Bihar, West Bengal, Tamil Nadu, Andhra Pradesh,
Arunachal Pradesh, Karnataka, Rajasthan
9.West Bengal Assam, Delhi, Nagaland
Source: Directorate General of Commercial Intelligence and Statistics (DGCIS), Kolkata.
Top
4.2 Distribution:
Assembling and distribution of the agricultural produce are interlinked. The assembling
deals with the movement of Red gram from the farm to the assembling centre while the
distribution deals with its further movement to the consumer.
Agencies involved:
Following agencies are involved in distribution of Red gram in whole and or split husked
form at various stages:
✸ Producers ✸ Commission agents or, Arhatias
✸ Village traders ✸ Representative of Dal miller
✸ Itinerant traders ✸ Co-operative organisations
✸ Wholesale merchants ✸ Government organisations
✸ Retailers

4.2.1 Inter-state movements:

The main states despatching the pulses including Red gram (except Bengal gram) to
other states are Uttar Pradesh, Maharashtra, Madhya Pradesh, Bihar, Andhra Pradesh, Delhi,
West Bengal and Rajasthan whereas Assam, Delhi, West Bengal and Tamil Nadu are major
importing states.
The inter-state movement of pulses observed during the year 1999-2000 was that
Maharashtra exported 663481 quintals of pulses including Red gram (except Bengal gram)
mainly to Delhi, Punjab, Uttar Pradesh, West Bengal and Maharashtra port. Delhi stood next
to Maharashtra, where 167740 quintals of pulses were exported to Assam and Uttar Pradesh
since it is the big assembling market and Dal processing centre. Bihar exported 135562
quintals of pulses to Assam and West Bengal, whereas Uttar Pradesh exported 114970
quintals of pulses to Assam and Tamil Nadu. However, Madhya Pradesh exported 58180
quintals to Orissa and Bihar.
The inter-state movements of pulses including Red gram (except Bengal gram) by rail,
river and air during 1998-99 to 2000-2001 are given below.
Table No. 17: Inter-state movement/flow of pulses including Red gram (except gram) by
rail, river and air during 1998-99 to 2000-2001
(Quantity – in quintals)
States from where
despatched 1998-99 1999-00 2000-01

32 Top
 1.Andhra Pradesh 0.00 17170 73590
P d h
2.Bihar 134069 135562 74738
3.Delhi 132060 167740 37270
4.Gujarat 508 440 0.00
5.Haryana NIL 38450 16450
6.Maharashtra 38170 663481 2520
7.Madhya Pradesh 500 58180 NIL
8.Orissa NIL NIL 540
9.Punjab 480 NIL 280
10. Rajasthan 42389 10264 3763
11.Uttar Pradesh 234889 114970 550700
12.West Bengal 40560 44710 79906
Total 623625 1250967 839757

Source: Directorate General of Commercial Intelligence and Statistics (DGCIS), Kolkata.

4.3 Export and import: Top
Export:
As mentioned earlier, India is the largest Red gram producing country and major portion
of production is consumed in the country itself. Since India is deficit in pulses, only small
quantities of Red gram were exported mainly to UAE, USA, UK, Kuwait, Malaysia, Singapore
and Saudi Arabia. During the year 2000-2001, the country exported 7401 tonnes of Red gram
valued at Rs19.24 crores against 9087 tonnes valued at Rs 24.49 crores in the year 2001-
2002.
During the year 1999-2000 to 2001-2002 export of Red gram from India to different countries
and their value are given below:
Table No. 18: India’s export of Red gram (country wise) from 1999-2000 to 2001-2002
(Quantity in quintals and Value in Rs. thousand)
Name of 1999-2000 2000-2001 2001-2002
country Quantity Value Quantity Value Quantity Value

Australia 1422.96 4982.35 792.54 2575.87 2110.56 5763.95

Baharain 219.1 630.21 321.7 922.25 731.5 1757.53
Canada 3831.17 10857.87 2886.29 7329.2 3618.91 9758.86
Kuwait 2746.72 7419.01 2309.45 6043.75 5094.8 12533.15
Malaysia 6275.01 16329.43 7295.16 17674.94 4183.74 10119.38
Mauritious 2572.85 6671.43 925 2249.01 1057.8 3124.35
Qatar 230 569.32 226.56 513.84 1175.4 2974.23
Saudi Arab 1949.56 5442.34 3348.28 8660.36 1918.84 4690.7
Singapore 2149.1 6676 3202.32 9141.92 1837.15 4963.14
Sri Lanka 1116.42 2701.94 2880.62 4201.6 3532.54 7497.96
UAE 23513.82 65912.01 15773.92 38876.05 20560.8 51117.99

33 Top
 Top
UK 1325.48 3872.38 6280.6 15839.18 6685.37 16582.75
USA 21567.33 64149.18 24825.9 68180.02 35127.23 104767.05
Others 1590.35 4291.45 2945.5 10180.42 3239.42 9245.12
Total 70509.87 200504.92 74013.84 192388.41 90874.06 244896.16
Source: Directorate General of Commercial Intelligence and Statistics (DGCIS), Kolkata.
Import:
During the year 2000-2001, India imported 43458.90 tonnes of Red gram valued at Rs.
62.78 crores against 354175.93 tonnes valued at Rs. 484.57 crores in the year 2001-2002
mainly from Myanmar (about 90 percent). During 1999-2000 to 2001-2002, import of Red
gram in India from different countries was as under:
Table No.19: India's import of Red gram (country-wise) from 1999-2000 to 2001-2002
Name of Quantity Value Quantity Value Quantity Value
country (Tonnes) (Rs in (Tonnes) (Rs in (Tonnes) (Rs in
Crore) Crore) Crore)
1999-2000 2000-2001 2001-2002
Kenya 0.00 0.00 0.00 0.00 2541.00 3.84
Myanmar 5361.00 10.08 39194.00 56.16 338544.37 461.89
New Zealand 0.00 0.00 0.00 0.00 908.00 1.25
Pakistan 0.00 0.00 0.00 0.00 675.05 1.35
Singapore 86.00 0.15 3180.56 4.73 1849.00 2.50
Tanzania 66.00 0.10 0.00 0.00 8254.00 11.45
Others 569.00 0.88 1084.34 1.89 1404.51 2.29
Total 6082.00 11.21 43458.90 62.78 354175.93 484.57
Source: Directorate General of Commercial Intelligence and Statistics (DGCIS), Kolkata.
Top
4.3.1 Sanitary and Phyto-Sanitary (SPS) requirements:
The agreement on Sanitary and Phyto-Sanitary (SPS) measures is a part of the GATT
Agreement, 1994, for export and import trade. The aim of the agreement is to prevent the risk
of introduction of new pests and diseases in new regions i.e. importing countries. The main
purpose of the agreement is to protect human health, animal health, and Phyto-Sanitary
situation of all member countries and protect the members from arbitrary or unjustifiable
discrimination due to different Sanitary and Phyto-Sanitary standards.
The SPS agreement applies to all Sanitary and Phyto-Sanitary measures, which may
directly or indirectly, affect international trade. Sanitary measures deal with human or animal
health, and Phyto-Sanitary measures are related to plant health. SPS measures are applied
in four situations for the protection of human, animal or plant health:
f Risks arising from the entry, establishment or spread of pests, diseases, disease- carrying
organisms or disease causing organisms.
f Risks coming from additives, contaminants, toning or disease-causing organisms in foods,
beverages or feedstuffs.
f Risks arising from diseases carried by animals, plants or products thereof, or from the
entry, establishment or spread of pests.

34
 Top
f Prevention or limitation of damage caused by the entry, establishment or spread of pests.
The SPS standards commonly applied by Governments which affect imports are:
(i) Import ban (Total/partial) is generally applied when there is a significant rate of risk about
a hazard.
(ii) Technical specifications (Process standards/Technical standards) are most widely
applied measures and permit import subject to compliance with pre-determined
specifications.
(iii) Information requirements (Labelling requirements/Control on voluntary claims) permit
imports provided they are appropriately labelled.

Procedure for issue of SPS certificate for export:

In order to make plant materials free from quarantine and other injurious pests to
conform with the prevailing Phyto-Sanitary regulations of the importing country, the exporter
needs to give a suitable disinfestation / disinfection treatment, without affecting the viability for
sowing / edibility of the plants/seeds.
For plant materials (seed, meal, extraction, etc.) meant for export, Government of India,
has authorised some Private Pest Control Operators (PCO) who have the expertise, men and
materials for treating the export agricultural cargo / produce. The exporter has to apply to the
officer in charge (Plant Protection and Quarantine Authority, Department of Agriculture and
Cooperation) for Phyto-Sanitary Certificate (PSC) in prescribed application form at least 7 to
10 days in advance of the export. Before submitting the application for issue of PSC, it should
be ensured that the cargo is treated properly by the licensed PCO.

Major export markets:

UAE, USA, UK, Kuwait, Singapore, Saudi Arabia and Malaysia are the important
overseas markets for export of Red gram from India.

4.3.2 Export procedures:

Top

The exporter should keep in mind about the following laid down procedure while
exporting Red gram :
1. Registration with Reserve Bank of India (RBI). (Apply in prescribed form (CNX) to
obtain code number. This code number is to be quoted on all export papers).
2. Importer-Exporter code (IE code) number is to be obtained from the Director General of
Foreign Trade (DGFT).
3. Register with Agricultural and Processed Food Products Export Development Authority
(APEDA) to obtain registration cum membership certificate. This is required to obtain
permissible benefits from the Government.
4. Exporter then procures the export orders.
5. Quality of the produce is to be assessed by the inspecting agency and a certificate is
issued to this effect.
6. Produce is now shifted to port.

35
 Top

7. Obtain marine insurance cover from any insurance company.

8. Contact the clearing and forwarding (C&F) agent for sorting the produce in godowns
and to get the shipping bill for allowing shipment by the Custom Authority.
9. Shipping Bill is submitted by C & F agent to custom house for verification and verified
shipping bill is given to the shed superintendent to obtain carting order for export.
10. The C&F agent presents shipping bill to preventive officer for loading into ship.
11. After loading into ship, a mate’s receipt is issued by captain of ship to the
superintendent of the port, who calculates port charges and collects the same from the
C&F agent.
12. After the payment, C&F agent takes mate’s receipt and requests port authority to
prepare bill of lading to the respective exporter.
13. Then C&F agent sends the bill of lading to the respective exporter.
14. After receiving the documents, exporter obtains a certificate of origin from chamber of
commerce, stating that the produce is of Indian origin.
15. Importer is informed by exporter regarding date of shipment, name of vessel, bill of
lading, customer‘s invoice, packing list etc.
16. Exporter submits all documents to his bank for verification and bank verifies the papers
against original letter of credit.
17. After verification, bank sends documents to foreign importer to enable him to take
delivery of produce.
18. After receiving papers, importer makes payment through bank and sends the GR form
to RBI, an evidence of realisation of export proceeds.
19. Exporter now applies for various benefits from duty drawback schemes.

Top

4.4 Marketing constraints:

The following are main marketing constraints:
✸ Distress sale: Due to financial crisis, farmers are forced to sell their produce just after
harvesting. During this period, farmers get lower price due to glut in the market. The
producers cannot withhold or store their produce for some period to get better price since
the farmers have to meet urgent requirement of money.
✸ Unstable price: Generally, the price of Red gram prevails low in the early post harvest
period due to more arrivals in the market and later on prices go up. Due to this unstable
price, the farmers get lesser price.
✸ Lack of marketing information: Due to lack of information regarding arrivals and prices
prevailing in other markets, producers market the Red gram in the village and nearby
market at lower price, which can be avoided.

36
✸ Adoption of standards: Farmers usually do not grade their produce, as a result they do
not get remunerative price in the market.
✸ Inadequate storage facilities: Due to inadequate storage facilities in rural areas, farmers
loose a substantial quantity of their produce by way of driage, spoilage, rodents etc.
Farmers are also forced to sell their produce just after harvest due to lack of storage
facilities. Hence, rural godowns are must to avoid the sale immediately after the harvest.
✸ Transportation facilities at producers’ level: Due to inadequate transportation facilities
at village level, producers sell their Red gram to traders directly from their farm or in the
village, which offer them lesser price than prevailing in the markets.
✸ Training to producers: The training to producers regarding marketing of their produce is
essential. It improves their skill for better marketing of their produce.
✸ Infrastructure facilities: Due to inadequate infrastructure facilities with producers, traders
and at market level, the marketing of Red gram is affected adversely.
✸ Malpractices in markets: There are many malpractices prevailing in markets like excess
weighment, delay in payment, large quantity of samples from the produce, different kinds
of arbitrary deductions for religious and charitable purposes from producers, high
commission charges, delay in weighing, loading, unloading and weighing charges from
producers.
✸ Superfluous middlemen: The existence of a long chain of middlemen reduces the share
of the consumer’s price received by the producer-seller.
Top

5.0 MARKETING CHANNELS, COSTS AND MARGINS

5.1 Marketing channels:
The following are the important marketing channels for Red gram (Chart No.1).
A) Private marketing channel:
This is a traditional channel and the most common marketing channel in India. The
main private marketing channels for Red gram are as under:

i) Producer ➙ Dal Miller ➙ Consumer

ii) Producer ➙ VillageTrader ➙ Dal Miller ➙ Wholesaler ➙ Retailer ➙ Consumer

iii) Producer ➙ Dal Miller ➙ Retailer ➙ Consumer

iv) Producer ➙ Wholesaler ➙ Dal Miller ➙ Retailer ➙ Consumer

37
 Top

v) Producer ➙ Wholesaler ➙ Dal Miller ➙ Wholesaler ➙ Retailer ➙ Consumer

vi) Producer ➙ Commission Agent ➙ Dal Miller ➙ Wholesaler ➙ Retailer ➙ Consumer

B) Institutional marketing channel:

Some institutions have been entrusted with marketing activities of Red gram like
National Agricultural Co-operative Marketing Federation of India Limited (NAFED). NAFED is
the nodal agency for procuring Red gram for providing minimum support prices to the farmers
for their produce. The main institutional marketing channels for Red gram are as under:

Producer ➙ Procuring Agency ➙ Dal Miller ➙ Consumer

Producer ➙ Procuring Agency ➙ Dal Miller ➙ Wholesaler ➙ Retailer ➙ Consumer

Producer ➙ Procuring Agency ➙ Dal Miller ➙ Retailer ➙ Consumer

Criteria for selection of channels:

Following criteria should be considered in selecting a marketing channel:
1. The channel, which ensures the higher share to producer and also provides cheaper price
to consumer, is considered as the most efficient channel.
2. The shorter channel having lesser market cost.
3. Avoid the longer channel with more intermediaries causing higher marketing costs and less
producers’ share.
4. Select the channel which distributes the produce appropriately at least expenses and
secure the desired volume of disposal.

Top

38
 Top
CHART NO.1
MARKETING CHANNELS OF RED GRAM

PRODUCER

PRIVATE INSTITUTIONAL

COMMISSION WHOLESALER VILLAGE

AGENT PROCURING
(RED GRAM) TRADER
AGENCY

DAL MILLER DALMILLER

WHOLESALER

WHOLESALER
(DAL)
RETAILER
RETAILER

CONSUMER

Top
39
 Top

5.2 Marketing costs and margins:

Marketing costs:

Marketing costs are the actual expenses incurred in bringing goods and services from
the producer to the consumers. The marketing costs normally include
(i) handling charges at local points
(ii) assembling charges
(iii) transport and storage costs
(iv) handling charges by wholesalers and retailers
(v) expenses on secondary services like financing, risk taking and market intelligence,
and
(vi) profit margins taken by different agencies.

Marketing margins:

Margin refers to the difference between the price paid and received by a specific
marketing agency such as a single retailer, or by any type of marketing agency, i.e. retailers or
wholesalers or by any combination of marketing agencies in the marketing system as a whole.
The total marketing margin includes cost involved in moving the Red gram from producer to
consumer and profits of various market functionaries.
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Cost involved in moving Profits of various

Total marketing
margin = the Red gram from
producer to consumer
+ market
functionaries

The absolute value of the total marketing margin varies from market to market, channel
to channel and time to time. The marketing cost incurred by farmers and traders at Regulated
markets includes i) Market fee, ii) Commission, iii) Taxes, and iv) Other miscellaneous
charges.
i) Market fee: Market fee or entry fee is collected by the market committee of the market. It is
charged either on the basis of weight or on the basis of the value of the produce. It is usually
collected from the buyers. The market fee differs from state to state. It varies from 0.5 per
cent to 2.0 per cent ad valoram.
ii) Commission: It is paid to the commission agent, and may be payable either by seller or by
the buyer or sometimes by both. The charge is usually made in cash and varies considerably.
iii) Taxes: Different taxes are charged in different markets such as toll tax, terminal tax, sales
tax, octroi etc. These taxes leviable differ from market to market in the same state as also from
state to state. These taxes are usually payable by the seller.
iv) Miscellaneous charges: In addition to the above mentioned charges, some other charges
are levied in markets. These include handling and weighment charges (weighing, loading,
unloading, cleaning etc.), charity contribution in cash and kind, grading charges, postage,
charges payable to water man, sweeper, choukidar etc. These charges may be payable either
by the seller or by the buyers.

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Market fee, commission charges, taxes and other miscellaneous charges in different
states are given in the Table No.20.

Table No.20: Market fee, commission, taxes and miscellaneous charges on Red gram in
major producing states

State Market Commi- Sales License fee Rs. Per annum Other
fee ssion tax charges
1.Andhra 1% 1.5 – 4% C. A. cum traders A – 3000/- ---
Pradesh 2% B – 2000/- (For
C – 1000/- 5 yrs.)
Commission agent-125 per annum
2.Gujarat 0.5% 1.5% NIL A – type traders cum C. A. – Rs.125/- NIL
A – type traders – Rs.90/-
A – type limited traders – Rs.50/-
B – type traders – Rs.75/-
C – type special traders – Rs.50/-
Retail traders – Rs.10/-
Dalals – Rs.5/-
3.Karnataka 1% 2% NIL to Trader/C. A. – Rs.200 ---
2% Importer/exporter – Rs.100
Processor – Rs.100
Stockists – Rs.100
4.Madhya 2% NIL NIL Traders – Rs.1000/- ---
Pradesh Processor – Rs.1000/-
5.Maharashtra 0.60 to 1.25% --- Issuing fee Renewal ---
1.05% to Traders – Rs. 100-210 Rs. 90-200
3.25% (Vary from market to market)
6.Orissa 1% 0 to 4% Trader – Rs.35 – 300/- ---
0.4%
7.Tamil Nadu 1% NIL NIL Wholesaler – Rs.100/- ---
Other trader – Rs.75/-
Petty trader – Rs.75/-
8.Rajasthan 1.6% 4% --- Trader/C. A. – Rs.200 ---
Trader + C. A. – Rs.300
(for one time)
9.Uttar 2.5% 1.5% 2% Wholesaler cum C.A. / Wholesaler / Dalali –
Pradesh Arhatia / Dalal – Rs.250/- 0.5%
Retailer – Rs.100/-
Note: The charges for weighing, unloading, loading, cleaning etc. vary from Rs 0.2 to 1.15 per
unit.
Source: Sub-offices of Directorate of Marketing and Inspection.

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6.0 MARKETING INFORMATION AND EXTENSION
Marketing information:
Marketing information is a key factor for efficient marketing decisions, regulate the
competitive marketing processes and to restrict the monopoly or profiteering individuals in the
market. It is needed by producers in planning production and marketing of their produce, and
is equally needed by other market participants. Farmers need to be fully familiarized in
different areas of agricultural marketing in order to improve price realization. Marketing
information is important in all the stages of marketing right from farm to ultimate consumption
and simultaneously, for all the participants in these stages i.e. producers, traders, millers,
consumers, etc. It is the key to achieve both operational and pricing efficiency in the marketing
system.
Marketing extension:
Marketing extension is a vital factor in enlightening the farmers about proper marketing
of their produce and solving their marketing problems. It envisages educating the farmers,
traders and consumers for bringing desired changes in their knowledge, skills, attitude and
behaviour. In the present global agricultural scenario, the farmers need to be educated to
accept modern market-oriented farming by taking care of productivity, quality and market
demand. Farmers need to reorient their cropping pattern as per the market demand. The
farmers should keep pace with fast changing technology, economic reforms, consumer
awareness and new export-import policies for agricultural commodities.
An effective marketing extension service is need of the hour. This has gained even
greater importance in the light of fast changing business environment as a result of
liberalization of economy under WTO Agreement. The marketing extension functionaries
should disseminate the complete, accurate and latest market information to the grass root
level in areas such as market driven production programmes, post harvest management,
availability of marketing finance, facilities for grading, packaging, storage, transportation,
online market information system, marketing channels, contract farming, direct marketing,
alternative markets including forward and future markets etc.
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Benefits:
1) To producers: In present situation, an effective market information and extension
service facilitates decision making about when, where and how to
market Red gram.
2) To consumers: With the help of market information and extension, producers will
produce Red gram according to consumer preferences for fetching
remunerative price.
3) To traders: Market information and extension foster true competition among the
market players. It helps them to take decisions regarding purchase, sale
and storage of Red gram by knowing the trend of arrivals, demand,
consuming centers, grading, packaging, stock position etc. in the
markets.
4) To government: Market information plays vital role in formulating appropriate agricultural
policies about procurement, export and import, minimum support price.
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Sources:
In our country, there are a number of sources/institutions that are directly or indirectly
disseminating marketing information and providing extension services as given below:
Source / Institution Activities for marketing information and extension
1.Directorate of Marketing h Provides information through nationwide Marketing
and Inspection (DMI), Information Network (“AGMARKNET” portal).

NH-IV, CGO Complex, h Marketing extension through training to consumers,

producers, graders, etc.
Faridabad.
h Marketing research and surveys.
Website:
www.agmarknet.nic.in
h Publication of reports, pamphlets, leaflets, Agricultural
Marketing journal, Agmark standards etc.
2. Agricultural Produce h Provide market information on arrivals, prevailing prices,
Market Committees despatches etc.
(APMC), h Provide market information of adjoining / other market
committees.
h Arranges training, tours, exhibitions etc.
3. Directorate General of
h Collection, compilation and dissemination of marketing
Commercial Intelligence
related data i.e. export-import data, inter state movement
and Statistics (DGCIS),
of foodgrains etc.
1,Council House Street,
Kolkata-1
Website: www.dgciskol.nic.in
4. State Agricultural h Provide marketing related information to co-ordinate all
Marketing Boards, the market committees in the state.
at different state capital h Arrange seminars, workshops and exhibitions on subjects
related to agricultural marketing.
h Provide training facilities to producers, traders and
employees of the Boards.
5.Directorate of Economics h Compilation of agricultural data on area, production and
and Statistics, yield for development and planning.
Shastri Bhavan, New Delhi. h Dissemination of market intelligence through publication
Website: www.agricoop.nic.in and Internet.
6.Central Warehousing h Farmers Extension Service Scheme was launched by
Corporation ( CWC ), CWC in the year 1978-79 with the following objectives :
4/1 Siri Institutional Area, ♦ i) To educate farmers about the benefit of scientific
Opp. Siri fort, New Delhi- storage and use of public warehouses.
110016 ♦ ii) To impart training to the farmers on the techniques of
Website: www.fieo.com/cwc/ scientific storage and preservation of foodgrains.
♦ iii) To assist farmers in getting loans from the banks
against pledge of warehouse receipt.
♦ iv) Demonstration of spraying and fumigation methods to
control insects.
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7.Federation of Indian h Provide information to its members about latest
Export Organisations developments of export and import.
(FIEO), h Organise seminars, workshops, presentations, tours,
PHQ House(3rd Floor) Opp. buyer-seller meets, sponsoring participation in
Asian Games , New Delhi- international trade fairs, exhibitions and providing
110016 advisory services with specialized divisions.
h Provide information about market development
assistance schemes.
h Provide useful information on India’s export and import
with diverse database.
8. Kisan Call Centers
h Provides expert advise to the farmers.
(New Delhi, Mumbai, h These centers operate through toll free telecom lines
Chennai, Kolkata, throughout the country.
Hyderabad, Banglore, h A country-wide common four digit number 1551 has been
Chandigarh and Luknow) allocated to these centers.

9. Mass Media Support to h Mass media support to agriculture extension has been
Agriculture Extension augmented with three new initiatives.
i) The first component establishes a cable satellite channel
for national broadcast using the existing facilities
available with Indira Gandhi National Open University
(IGNOU).
ii) The second component is use of low and high power
transmitters of Doordarshan for providing area specific
telecast. Initially, 12 locations chosen to launch
broadcasting are Jalpaiguri (West Bengal), Indore
(Madhya Pradesh), Sambhalpur (Orissa), Shillong
(Meghalaya), Hissar (Haryana), Muzzafarpur (Bihar),
Dibrugarh (Assam), Varanasi (Uttar Pradesh), Vijaywada
(Andhra Pradesh), Gulbarga (Karnataka), Rajkot
(Gujarat), Daltonganj (Jharkhand).
iii) The third component is use of FM transmitter network of
All India Radio (AIR) to provide area specific broadcasting
through 96 FM stations.
10. Agriculture-Clinics and h A central sector scheme “Establishment of Agriculture-
Agri-Business by Clinics and Agri-business Managed by Agriculture
Agriculture Graduates Graduates” is being implemented since 2001-02.
h The aim is to provide opportunity to all eligible agriculture
graduates to support agriculture development through
economically viable ventures.
h The scheme is being jointly implemented by NABARD,
National Institute of Agricultural Extension Management
(MANAGE) and Small Farmers’ Agri-business
Consortium (SFAC) in association with about 66 reputed
training institutes in the country.

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 11. Different websites on www.agmarknet.nic.in
Agricultural Marketing www.agricoop.nic.in
Information www.fieo.com/cwc/
www.ncdc.nic.in
www.apeda.com
www.fmc.gov.in
www.icar.org.in
www.fao.org
www.dpd.mp.nic.in
www.agriculturalinformation.com
www.agriwatch.com
www.kisan.net
www.agnic.org
www.nafed-india.com
www.indiaagronet.com
www.commodityindia.com

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7.0 ALTERNATIVE SYSTEMS OF MARKETING
7.1 Direct marketing:
This concept involves marketing of produce i.e. Red gram by the farmer directly to the
consumers/millers without any middlemen. Direct marketing enables producers and millers
and other bulk buyers to economize on transportation cost and improve price realization. It
also provides incentive to large scale marketing companies i.e. millers and exporters to
purchase directly from producing areas. Direct marketing by farmers to the consumers has
been experimented in the country through Apni Mandis in Punjab and Haryana. The concept
with certain improvements has been popularised in Andhra Pradesh through Rythu Bazars. At
present, these markets are being run at the expense of the state exchequer, as a promotional
measure, to encourage marketing by small and marginal producers without the help of the
middlemen. In these markets, mainly fruits and vegetables are marketed alongwith other
commodities at present.
Benefits:
✦ It increases profit of the producer.
✦ It minimizes marketing cost.
✦ It encourages distribution efficiency of the marketing system.
✦ It promotes employment to the producer.
✦ Direct marketing enhances the consumer satisfaction.
✦ It provides better marketing techniques to producers.
✦ It encourages direct contact between producers and consumers for demand driven
production.
✦ It encourages the farmers for retail sale of their produce.

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7.2 Contract marketing:
Contract marketing is a system of marketing, where selected crop is grown for
marketing by farmers under a ‘buy-back’ agreement with an agency (entrepreneur or trader or
processor or manufacturer). In the wake of economic liberalization, it has gained momentum
as the national and multinational companies enter into contracts for marketing of agricultural
produce. They also provide technical guidance, capital and input supply to contracted farmers.
Contract marketing ensures continuous supply of quality produce at mutually contracted price
to contracting agencies, as well as ensures timely marketing of the produce. Contract
marketing is beneficial to both the parties i.e. farmers and the contracting agencies.
Advantages to farmers: -
✸ Price stability ensuring fair return of produce
✸ Assured marketing outlet and no involvement of middlemen.
✸ Prompt and assured payments
✸ Technical advice in the field of production till harvesting
✸ Fair trade practices
✸ Credit facility
✸ Crop insurance
✸ Exposure to new technology and best practices
Advantages to contracting agency: -
✸ Assured supply of produce (raw materials)
✸ Control on need based production/post harvest handling
✸ Control on quality of produce
✸ Stability in price as per mutually agreed contract terms and conditions
✸ Opportunities to acquire and introduce desired varieties of crop
✸ Help in meeting specific customer needs/choice
✸ Better control on logistics
✸ Strengthen producer-buyer relationship
The Pepsi has already taken up contract marketing of pulses in Punjab.
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7.3 Co-operative marketing:
The co-operative societies sell the member’s produce directly in the markets, which
fetch remunerative prices. Co-operative societies market the members produce collectively
and secure advantages of economy of scale to its members.
Services:
✸ Procurement and disposal of farm produce
✸ Processing of produce
✸ Grading
✸ Packing
✸ Storage
✸ Transport
✸ Credit
✸ Protection against marketing malpractices

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National Co-operative Development Corporation (NCDC) was established in 1956 for
strengthening and promoting agricultural marketing through co-operative societies.
The co-operative marketing societies consists 3-tier structure: -
i) Primary Marketing Society (PMS) at the village level.
ii) State Co-operative Marketing Federation (SCMF) at the state level.
iii) National Agricultural Co-operative Marketing Federation of India Limited (NAFED) at the
national level.
There are 3216 general purpose and 5385 special commodity co-operative marketing
societies in the country. General purpose apex level marketing federations have been set up
in 26 states and 4 Union Territories (Andman and Nicobar Islands, Delhi, Lakshadweep and
Pondicherry) with National Agricultural Co-operative Marketing Federation of India Limited
(NAFED).
Benefits:
✸ Remunerative price to producers
✸ Reduction in cost of marketing
✸ Reduction in commission charges
✸ Effective use of infrastructure
✸ Credit facilities
✸ Timely transportation service
✸ Reduces malpractices
✸ Marketing information
✸ Supply of agricultural inputs
✸ Collective processing
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7.4 Forward and future markets:
Forward trading means an agreement or a contract between seller and purchaser, for
a certain quality and quantity of a commodity for making delivery at a specified future time, at
contracted price. It is a type of trading, which provides protection against the price fluctuations
of agricultural produce. Producers, traders and millers utilize the future contracts to transfer
the price risk. Presently, future markets in the country are regulated through Forward
Contracts (Regulation) Act, 1952. The Forward Markets Commission (FMC) performs the
functions of advisory, monitoring, supervision and regulation in future and forward trading.
Forward trading transactions are performed through exchanges owned by the associations
registered under the Act. These exchanges operate independently under the guidelines issued
by the FMC.
After the recent decision in February 2003 of the Cabinet Committee on Economic
Affairs (CCEA), Government of India, Red gram has been allowed for future trading, under
section 15 of the Forward Contracts (Regulation) Act of 1952. Earlier, Red gram was not
allowed for future trading.

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Forward contracts are broadly of two types:
a) Specific delivery contracts: Specific delivery contracts are essentially merchandising
contracts, which enable producers and consumers of commodities to market their produce and
cover their requirements respectively. These contracts are generally negotiated directly
between parties depending on availability and requirement of produce. During negotiation,
terms of quality, quantity, price, period of delivery, place of delivery, payment term, etc. are
incorporated in the contracts. Specific delivery contracts are of two types:
i) Transferable specific delivery contracts (T.S.D.).
ii) Non-transferable specific delivery contracts (NTSD).
In the TSD contracts, transfer of the rights or obligations under the contract is permitted
while in NTSD it is not permitted.
b) Other than specific delivery contracts: Though this contract has not been specifically
defined under the act, these are called as ‘future contracts’. Futures contracts are forward
contracts other than specific delivery contracts. These contracts are usually entered into under
the auspices of an Exchange or Association. In the futures contracts, the quality and quantity
of commodity, the time of maturity of contract, place of delivery etc. are all standardised and
contracting parties have to negotiate only the rate at which contract is entered into.
Benefits: Top
Futures contracts perform two important functions i) Price discovery and ii) Price risk
management. It is useful to all segments of economy.
Producers: It is useful to the producer because they can get idea of price likely
to prevail at a future point of time and, therefore, can decide time
and planning of production that suits them.
Traders/Exporters: The future trading is very useful to the traders/exporters as it
provides an advance indication of the price likely to prevail. This
helps the traders/exporters in quoting a realistic price and, thereby,
secure trading/export contract in a competitive market.
Millers/Consumers: Futures trading enables the millers/consumers to get an idea of the
price at which the commodity would be available at a future point of
time.
The other benefits of future trading are-
i) Price stabilization: In times of violent fluctuations, futures trading reduces the price
variations.
ii) Competition: Futures trading encourages competition and provides competitive
price to farmers, millers or traders.
iii) Supply and demand: It ensures a balance in demand and supply position throughout the
year.
iv) Integration of price: Futures trading promotes an integrated price structure throughout
the country.
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8.0 INSTITUTIONAL FACILITIES

8.1 Marketing related schemes of Government / Public Sector:
Name of the
scheme/imple-
menting Facilities provided/salient features/ objectives
organisation
1.Gramin f It is a capital investment subsidy scheme for
Bhandaran construction/renovation/expansion of rural godowns. The scheme
Yojana is implemented by DMI in collaboration with NABARD and NCDC.
(Rural Godowns The objectives of the scheme are to create scientific storage
Scheme) capacity with allied facilities in rural areas to meet the requirements
of farmers for storing farm produce, processed farm produce,
Directorate of consumer articles and agricultural inputs.
Marketing & f To prevent distress sale immediately after harvest.
Inspection, Head f To promote grading, standardization and quality control of
Office, N.H.-IV, agricultural produce to improve their marketability.
Faridabad.
f To promote pledge financing and marketing credit to strengthen
agricultural marketing in the country for the introduction of a
national system of warehouse receipt in respect of agricultural
commodities stored in such godowns.
f The entrepreneur will be free to construct godown at any place and
of any size except for restrictions that it would be outside the limits
of Municipal Corporation area and be of a minimum capacity of
100 tonnes.
f The scheme provides credit linked back-ended capital investment
subsidy @25 percent of the project cost with a ceiling of Rs. 37.50
lakh per project. For the projects in North-Eastern states and hilly
areas with altitude of more than 1000 m above mean sea level and
SC/ST entrepreneurs, maximum subsidy admissible is @33
percent of the project cost, with a ceiling of Rs. 50.00 lakhs.
2.Agmark f Promotion of grading of agricultural and allied commodities under
grading and Agricultural Produce (Grading & Marking) Act.1937.
standardisation
f Agmark specifications for agricultural commodities are framed
Directorate of based on their intrinsic quality. Food safety factors are being
Marketing & incorporated in the standards to compete in the world trade.
Inspection, Head Standards are being harmonised with international standards
Office, N.H.-IV, keeping in view the WTO requirements. Certification of agricultural
Faridabad. commodities is carried out for the benefit of producer and
consumer.
3.Agricultural f To establish a nationwide information network for speedy collection
Marketing and dissemination of market data for its efficient and timely
Information utilization.
Network
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Directorate of f To ensure flow of regular and reliable data to the producers,
Marketing & traders and consumers to derive maximum advantage out of their
Inspection, Head sales and purchases.
Office, N.H.-IV,
Faridabad. f To increase efficiency in marketing by effective improvement in the
existing market information system.
f The scheme provided connectivity to 710 nodes comprising the
State Agricultural Marketing Department (SAMD) /Boards/
Markets. These concerned nodes have been provided with one
computer and its peripherals. These SAMD/Boards/ Markets are to
collect desired market information and pass on to respective state
authorities and Head Office of the DMI for forward dissemination.
The eligible markets will get 100 percent grant by Ministry of
Agriculture. National Agriculture Policy has proposed for coverage
of another 2000 nodes during the Tenth Plan.
4.Price Support
f NAFED is the nodal agency of Government of India to undertake
Scheme (PSS),
procurement of Red gram under price support scheme.
National
Agricultural f The objective of scheme is to provide regular marketing support to
Cooperative sustain and improve the production of Red gram.
Marketing
Federation of f Purchases under PSS are undertaken when the prices of Red
India Limited gram rate at or below the declared support prices for a particular
(NAFED) Nafed year.
House, Sidhartha
Enclave, New
Delhi-1100014
5.Co-operative f To correct regional imbalances and to provide needed momentum
Marketing, to the pace of development of various programme of co-operative
Processing agricultural marketing, processing, storage etc. in under/least
storage etc. developed states/UTs by providing financial assistance on liberal
programmes in terms to augment the income of farmers and weaker sections of
comparatively the community.
under/least
developed f The scheme provides for distribution of agricultural inputs,
states. development of agro-processing including storage, marketing of
National Co- foodgrains and plantation/horticulture crops, development of
operative weaker and tribal sections, cooperatives, in dairy, poultry and
Development fisheries.
Corporation
(NCDC), Hauz
Khas, New Delhi-
110016

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8.2 Institutional credit facilities:
The institutional credit to agriculture is disbursed through co-operatives, which was
targeted 43 percent share in rural credit flow in agriculture during 2002-2003 (Rs.82073 crore),
Commercial Banks (50 percent) and Regional Rural Banks (7 percent). The institutional credit
to agriculture is offered in the form of short term, medium term and long term credit facilities:
Short term and medium term loans:

Name of Eligibility Objective/Facilities

scheme
1.Crop All categories of ➣ To meet cultivation expenses for various crops as
Loan farmers. short term loan.
➣ This loan is extended in the form of direct finance to
farmers with a repayment period not exceeding 18
months.
2.Produce All categories of ➣ This loan is given to help farmers to store produce
Marketing farmers. on their own to avoid distress sale.
Loan ➣ This loan also facilitates immediate renewal of crop
(PML) loans for next crop.
➣ The repayment period of the loan does not exceed 6
months.
3. Kisan All agriculture ➣ This card provides running account facilities to
Credit clients having farmers to meet their production credit and
Card good track contingency needs.
Scheme record for the ➣ The scheme follows simplified procedures to enable
last two years. the farmers to avail the crop loans as and when they
need.
➣ Minimum credit limit is Rs. 3000/-. Credit limit is
based on operational land holding, cropping pattern
and scale of finance.
➣ Withdrawls can be made by using easy and
convenient withdrawl slips. The Kisan Credit Card is
valid for 3 years subject to annual review.
➣ It also covers personal insurance against death or
permanent disability; a maximum amount of Rs.
50,000 and Rs. 25,000 respectively.

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4.National Scheme is ➣ To provide insurance coverage and financial support
Agricultural available to all to the farmers in the event of failure of any of the
Insurance farmers – notified crops as a result of natural calamities, pests
Scheme loanee and non- and diseases attack.
loanee both-
➣ To encourage the farmers to adopt progressive
irrespective of
farming practices, high value in-puts and higher
the size of their
technology in agriculture.
holding.
➣ To help in stabilizing farm incomes, particularly in
disaster years.
➣ General Insurance Corporation of India (GIC) is the
Implementing Agency.
➣ Sum insured may extend to the value of threshold
yield of the area insured.
➣ Coverage of all food crops (cereals, millets and
pulses), oilseeds and annual
commercial/horticultural crops.
➣ Small and marginal farmers are provided subsidy of
50 percent of premium charged from them. The
subsidy will be phased out over a period of 5 years
on sunset basis.

Long term loans: Top

Name of Eligibility Objective/Facilities

scheme
All categories
Agricultural of farmers h The banks extend this loan to farmers to create
Term Loan (small/medium assets facilitating crop production/income generation.
and agricultural h Activities covered under this scheme are land
labourers) are development, minor irrigation, farm mechanization,
eligible, plantation and horticulture, dairying, poultry,
provided they sericulture, dry land/ waste land development
have necessary schemes etc.
experience in
the activity and h This loan is offered in the form of direct finance to
required area. farmers with a repayment span not less than 3 years
and not exceeding 15 years.

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8.3 Organisations/agencies providing marketing services:

Name of the
organisation and Services provided
address
1.Directorate of h To integrate development of marketing of agricultural and
Marketing and allied produce in the country.
Inspection (DMI) h Promotion of standardization and grading of agricultural and
NH-IV, CGO Complex allied produce.
Faridabad h Market development through regulation, planning and
designing of physical markets.
Website: h Promotion of cold storage.
www.agmarknet.nic.in h Liaison between the Central and State Governments through
its regional offices (11) and sub-offices (37) spread all over
the country.

2.Agricultural and h Development of scheduled agriculture products related

Processed Food industries for export.
Products Export h Provides financial assistance to these industries for
Development conducting surveys, sensibility studies, reliefs and subsidy
Authority (APEDA) schemes.
NCUI Building, 3, Siri h Registration of exporters for scheduled products.
Institutional Area, h Adapting standards and specifications for the purpose of
August Kranti Marg, export of scheduled products.
New Delhi-110016 h Carrying out inspection of meat and meat products for
ensuring the quality of such products.
Website: h Improving the packaging of the scheduled products.
www.apeda.com
h Promotion of export oriented production and development of
scheduled products.
h Collection and publication of statistics for improving marketing
of scheduled products.
h Training in the various aspects of industries related to the
scheduled products.
3.National h Central nodal agency of Government of India for procurement
Agricultural of pulses, millets and oilseeds under price support scheme.
Cooperative h It undertakes sale of pulses and oilseeds procured under PSS
Marketing Federation and import.
of India Ltd. (NAFED) h Provide storage facilities.
Nafed House, h Consumer Marketing Division of NAFED serves the
Sidhartha Enclave, consumers in Delhi through the network of its retail outlets
New Delhi – 110014 (NAFED BAZAR) by providing consumer items of daily need.
Website: h Processing of pulses, fruits, etc for internal trade.
www.nafed-india.com

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4.Central h Provides scientific storage and handling facilities.
Warehousing
Corporation (CWC) h Offers consultancy services/ training for the construction of
4/1 Siri Institutional warehousing infrastructure to different agencies.
Area Opp. Siri fort h Import and export warehousing facilities.
New Delhi-110016
Website : h Provides disinfestation services.
www.fieo.com/cwc/
5.National h Planning, promoting and financing programmes for
Co-operative production, processing, marketing, storage, export and import
Development of agricultural produce.
Corporation h Financial support to primary, regional, State and National
( NCDC ) level marketing societies is provided towards;
4, Siri Institutional i) Margin money and working capital finance to augment
Area, New Delhi- business operations of agricultural produce.
110016 ii) Strengthening the share capital base and
Website: ii) Purchase of transport vehicles.
www.ncdc.nic.in
6.Director General of
h Provides guidelines / procedure of export and import of
Foreign Trade,
different commodities.
(DGFT)
Udyog Bhavan, New h Allot import-export code number (IEC No) to the exporter of
Delhi. agricultural commodities.
Website:
www.nic.in/eximpol
7.State Agricultural h Implementation of the regulation of marketing in the state.
Marketing Board h Provide infrastructural facilities for the marketing of notified
(SAMBs), agricultural produce.
h Grading of agricultural produce in the markets.
h To co-ordinate all the market committees for information
services.
h Provide aid to financially weak or needy market committees in
the form of loans and grants.
h To eliminate malpractices in the marketing system.
h To arrange or organise seminars, workshops or exhibitions on
subjects relating to agricultural marketing.

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9.0 UTILIZATION
9.1 Processing:
Processing is an important marketing function in the present day marketing of Red
gram. Processing convert the raw materials and bring the produce nearer to human
consumption. It is concerned with value addition to the produce by changing its form. Pulses
are generally converted into Dal by decutilating and splitting the whole seed. Over 75 percent
of the total legumes produced in the country are split into Dal.
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 Processing of Red gram is generally known as Dal milling or dehulling. Milling means
removal of the outer husk and splitting the grain into two equal halves. Dal milling is one of the
major food processing industries in the country, next to rice milling. The efficiency of
conversion of grain to Dal by traditional methods of milling is low and the resultant product
especially that from the wet method is inferior in cooking quality. The average Dal yield varies
from 68-75 percent (theoretical value 85 percent), i.e. a net loss of 10-17 percent during the
conversion of Red gram into finished Dal by traditional methods.
In modernizing the Dal milling industry, the Central Food Technological Research
Institute (CFTRI), Mysore, has recommended an improved method of Dal milling as presented
on Chart No.2 (Page No.50).
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9.2 Uses:
The Red gram plants and seeds are used in many ways as human food, fodder, fuel,
fencing materials and maintaining soil fertility. The main uses of Red gram are as follows:
h Dal: Decorticated split cotyledon of whole seed is called Dal. Red
gram is consumed mainly as Dal in India. Red gram Dal is a
staple food and is an important ingredient of diet of Indian people.
It is also consumed as Dal in other South Asian countries, in
Tanzania and Uganda in Africa.
h Whole dry seed: Whole dry seed is boiled and consumed in
Eastern Africa, the West Indies and Indonesia. It is also consumed
in Myanmar.
h Roasted and puffed seed: Roasted and puffed seeds are consumed in India.
h Green (Immature) seed: Used as vegetable in parts of India (mainly in Gujarat), also in
Caribbean countries, in Latin American countries and East Southern Africa.
h Young pods: Very young pods before the seed formation cooked like beans in curries
are consumed in parts of India, Java and U.K.
h Seed purpose: Generally, farmers retain a part of his produce for seed purpose for
sowing in next season.
h Animal feed: The green leaves and tops of plants are used as animal feed in South Asia,
Africa and Caribbean countries. The by-product of seed coats, broken bits and powder
from Dal mills form a valuable protein source of dairy animals. Cracked and shrivelled
seeds are also used as animal feed. The husk of pods and leaves obtained during
threshing constitute a valuable cattle feed.
h Fuel purpose: The dry stem of the plant and dry leaves are used as fuel for cooking by
the poor population in rural India.
h Fencing purpose: The dry stalks of the plant is used in fencing and in basket making.
h Lac culture: In China and Myanmar, the crop is also grown to culture the lac producing
insects.
h To improve soil fertility: Rhizobium bacteria are present in the root nodules of Red
gram. The Red gram crop fixes atmospheric nitrogen in symbiotic association with
Rhizobium bacteria and maintains the soil fertility.
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CHART NO. 2
STEPS OF DAL MILLING

Remove all impurities i.e. dust, chaff, dirt, grits etc from Red
Cleaning gram grains (whole) and separate according to size. Cleaning
is done in rotary seed cleaners.

LSU type dryer is used to condition the clean Red gram grains.
Cleaned grains are passed twice through hot air at about
Pre 100°C for a certain period of time and tempered after each
Conditioning pass in the tempering bins for about six hours. Preconditioning
of Red gram helps in loosening of husk.

After preconditioning the Red gram grains are dehusked.

Pearler or dehusker are used to dehusk the preconditioned
grains and almost all the grains are dehusked in a single
operation. Dehusked whole Red gram grains are separated
Dehusking from split Red gram and mixture of husk, broken etc. The
dehusked wholegrains are received in a screw conveyor where
water is added at a controlled rate. The moistened gota are
collected on the floor and allowed to remain as such for about
half an hour.

Lump A lump breaker is used to break the lumps formed by some of

Breaking the moistened whole grains.

The dehusked whole grains, after lump breaking are dried upto
the proper moisture level in LSU type dryer. The hot
conditioned and dried dehusked whole grains are splitted in
Conditioning emery roller. All the whole grains are not splitted in one pass.
and Splitting So grade ‘I’ pulses, dehusked whole grains and small brokens
are separated from the mixture. For subsequent splitting the
unsplit dehusked grains are again feed to the conditioner.

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10.0 DO’S AND DON’TS

DO’S DON’TS
✔ Harvest the Red gram at proper time of ✘ Delay in harvesting which results
maturity. shattering of pods.
✔ Harvest the Red gram crop when 80% of ✘ Harvest Red gram before the pods are
the pods are mature (turned yellow). fully mature, which results lower yields,
higher proportion of immature seeds,
poor grain quality.
✔ Harvest during conducive weather ✘ Harvest the crop during adverse
condition. weather condition (during rain and over
cast weather).
✔ Threshing and winnowing on cemented ✘ Perform threshing and winnowing on
(pucca) floor. kutcha floor.

✔ Market the Red gram after AGMARK ✘ Market Red gram without grading,
grading to get remunerative prices in the which will fetch lower prices.
market.
✔ Before marketing the produce, get the ✘ Market produce without collecting /
market information regularly from verifying marketing information.
agmarknet.nic.in website, newspapers,
T.V., radio, concerned APMC offices etc.
✔ Store the Red gram during post harvest ✘ Sell the Red gram during post harvest
period and sell it later when the prices period when the prices are low during
are higher in the market. this period due to glut.
✔ Use proper and scientific method of ✘ Use conventional and outdated method
storage. of storage, which causes storage
losses.
✔ Avail the benefit of centrally sponsored ✘ Store Red gram at unscientific place in
GRAMIN BHANDARAN YOJANA a haphazard manner, which will result
scheme for construction of rural qualitative and quantitative deterioration
godowns and store Red gram to of Red gram grains.
minimise losses.
✔ Select the shortest and efficient ✘ Use the long marketing channel, which
marketing channel to get highest share reduces the producer’s share as well as
in marketing. more commission charges.
✔ Package properly to protect the quality ✘ Improper package causes more losses
and quantity of produce during transit during transit and storage.
and storage.
✔ Select the cheapest and convenient ✘ Use the mode of transport, which will
mode of transportation from the cause losses and require higher cost.
available alternatives.
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✔ Transportation of Red gram should be
done in bags to minimize the grain ✘ Transport Red gram in bulk, which
losses. causes more losses.
✔ Use effective, efficient and improved
post harvest technology and processing ✘ Use traditional and conventional
techniques to avoid post harvest losses. techniques in post harvest operations
and in processing which causes more
quantitative and qualitative losses.
✔ Avail the facility of Price Support
Scheme during glut situation. ✘ Sell Red gram to local traders or
itinerant merchants during glut
✔ Avail the procedure of Sanitary and situation.
Phyto-Sanitary measures during export. ✘ Export without any Sanitary and Phyto-
Sanitary measures.
✔ To assure better marketing of the
produce, avail benefit of contract ✘ Produce Red gram without assessing
farming. and assuring its market demand for that
year.
✔ Avail the benefits of future trading to
avoid price risk arising due to wide ✘ Sell the produce at fluctuating prices or
fluctuations in commodity prices. in glut situation.

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11.0 REFERENCES
1. Advances in Pulse Production Technology, Jeswani, L.M. and Baldev, B., Indian Council
of Agricultural Research Publication (1988).
2. Principles and Practices of Post Harvest Technology, Pandey ,P.H.(1988).
3. Agricultural Marketing in India, Acharya, S.S.and Agarwal,N.L.(1999).
4. Handling and storage of food grains, Pingale, S.V.(1976).
5. Fundamentals of Food and Nutrition, Mudambi, S.R.and Rajagopal,M.V.
6. Post Harvest Technology of Cereals, Pulses and Oil seeds, Chakraverty, A.(1988).
7. Annual Report 2001-2002 and 2002-2003, Department of Agriculture and Cooperation,
Ministry of Agriculture, Government of India.
8. Annual Report 2001-2002,National Agricultural Co-operative Marketing Federation of
India Limited (NAFED), New Delhi.
9. Annual Report 2000-2001, National Cooperative Development Corporation, New Delhi.
10. Annual Report 2001-2002, Agricultural and Processed Food Products Export
Development Authority (APEDA), New Delhi.
11. Annual Report 2001-2002, Central Warehousing Corporation, New Delhi.
12. Chickpea and Pigeonpea varieties for stable production of pulses, Singh, N.B., et.al.
Indian Farming, December, 2002, PP.13-20.
13. Establishing Regional and Global Marketing Network for Small holders’ Agricultural
Produce / Products with reference to Sanitary and Phyto-sanitary (SPS) Requirement,
Agarwal, P.K., Agricultural Marketing, April-June, 2002, PP.15-23.
14. Inroads to Contract Farming, Devi, L., Agriculture Toady, September, 2003, PP.27-35.
15. Contract Farming: Associating for Mutual Benefit, Gururaja H.,
www.CommodityIndia.com, June, 2002, PP.29-35.
16. Marketing Costs Margins and Efficiency, Singh, H.P., Course material for Diploma
course in Agricultural marketing. (AMTC Series-3), Directorate of Marketing and
Inspection, Branch Head Office, Nagpur.
17. Role of Co-operative Marketing in India, Pandey, Y. K.,et.al., Agricultural Marketing,
Oct.-Dec.2000, pp.20-21.
18. Area, Production and Average Yield from Department of Agriculture and Cooperation,
New Delhi.
19. Export, Import and Inter-state movement from Directorate General of Commercial
Intelligence and Statistics (DGCIS), Kolkata.
20. Report of Inter-Ministerial Task Force on Agricultural Marketing Reforms, May-2002.
21. Market arrivals, market fee and taxation from sub-offices of Directorate of Marketing and
Inspection.
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22. Operational guidelines of Gramin Bhandaran Yojna (Rural Godown Scheme), Ministry of
Agriculture, Department of Agriculture and Cooperation, Directorate of Marketing and
Inspection, New Delhi.
23. Action Plan and Operational arrangements for procurement of Oilseeds and Pulses
under Price Support Scheme in Kharif season 2002,Nafed, New Delhi.
24. Agmark Grading Statistics, 2001-2002, Directorate of Marketing and Inspection,
Faridabad.
25. Agmark grading from Agricultural produce (Grading and Marking), Act, 1937 with Rules,
made upto 31st December, 1979 (Fifth Edition), (Marketing Series No. 192), Directorate
of Marketing and Inspection.
26. Packaging of foodgrains in India, Packaging India, February-March, 1999, pp.59-63.
27. Punjab’s March Towards Industry Alliances, www.CommodityIndia.com, May,2003,
PP.17-26.
28. Forward Trading and Forward Markets Commission Bulletin, September, 2000, Mumbai.
29. Websites:
www.agmarknet.nic.in
www.agricoop.nic.in
www.apeda.com
www.fao.org
www.nabard.org
www.icar.org.in
www.ncdc.nic.in

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