Tribal Markets

TRIBAL ECONOMY:

AN INTRODUCTION

The forests and mountainous terrains are occupied by the tribes. They procure forest
produce and sell them to earn their living. Tribal people pay an important role in tribal areas
of India by resorting to the sales of their own produce procured free of cost from the forests
and mountain and making purchases of their other requirements. Thus, they help distribute
the forest produce to plain areas direct and through Government and other agencies. The
people are accustomed to live in small huts and houses. Some of them spend their lives
below poverty line. Generally, they are below middle class. Rich people are rare. Their way
of life also is different from that of the outside world. Their cost of living is quite less when
compared to that of the plains people. Low literacy rate is common in the tribal
communities. In Andhra Pradesh State, Tribal villages generally comprise of a cluster of huts
with mud walls and thatched roofs. Recently some of the tribal families constructed cement
masonry walls and also used tiles for roofs.

In Andhra Pradesh State tribal people are divided into seven classes of people on the basis of
their economic conditions. They are food collectors, cattle breeders, podu cultivators, settled
cultivators, artisans, industrial and mining labourers. Again, the food collectors can be
divided into minor forest procurers and others like hunting on the basis of the talents and
experience of their households. Other than food items like, Tamarind, Honey, Adda leaf,
Myrobalans, Hill brooms, bamboos, Gum etc. are collected from the forests for sales.

The tribal people retain some of their sale amounts for investment required to enhance their
business activity. In addition to such savings, they get loans and advances from the Banks,
G.C.C., Tribal welfare Department of the State, TRICOR, International Fund for Agriculture
Development (IFAD), money lenders, middlemen etc. Financing business operations through
these media is a very important aspect of development of business by the tribal people. The
proper utilization of these funds for the purpose for which they are sanctioned is very
important. Diversion of these funds to other purposes results in the failure of the policy of
financing tribal economy. Since the tribal people are generally innocent and honest, they
utilize the funds properly. Thus, there is gradual improvement in the tribal economy.
The minor forest produce is procured and sold by the local tribal people in the weekly
markets. Tribal people eke out their livelihood from sale of minor forest produce without any
initial input or risk.The Government derives revenue from major forest produce. A major
portion of India's forest revenue is contributed by the major forest produce, namely timber
and fuel wood. Weekly markets play an important role in the tribal economy because these
markets serve as the main channels through which local forest produce and the other
important forest goods are distributed. They cultivate whatever land is available to them
with primitive methods. They reap the forest produce also. Most of the Tribes' livelihood
depends on forest produce. Some Tribes dig out several types of roots in the jungles for
food.

Weekly markets play an important role for disposal of forest produce by Tribal people.
Weekly market means a conglomeration of sellers and buyers of different types of goods in
certain places during prescribed timings on a particular day of the week. The weekly markets
are very popular economic phenomena in tribal areas. These weekly markets start by early
hours generally at 6 A.M. and they close before sunset. Before sunset all the weekly market
transactions are closed. Weekly markets are called as "hurt" in the tribal areas of
Visakhapatnam district and others call it as "Santa", whereas they are called "Shandies" by
the Officials. The weekly markets are conducted in different places on different days. In the
past weekly markets are conducted at the foot hill of fringe mountains where bullock carts
could reach. Before independence, roads were constructed by the British in Tribal Areas for
their own purpose and to exploit the forest produce. The villages of various tribal people are
located near the forest from which it is easy to procure forest produce and collect jungle
fruits etc. The tribal people in India form an important sector of the Indian Public in view of
the fact that they inhabit all the tribal areas forming a large part of the country. In recent
times the tribal people are involving themselves actively in practicing several trades.

Government laid down some broad directives for the benefit of the Scheduled Tribes (STs) in
the Constitution. Dr. B.P.Chaurasia says all are equal and as per Article 19(G) and 29(2) "All
citizens shall have the right to practice any Q profession or to carry on any occupation, trade
or business". Trade and development of village and small-scale industries is one of the
important measures for providing employment to local people and removing regional
imbalances in the tribal area. Small scale and cottage industries provide large scale
employment opportunities. Some small scale or retail business is also taken up by the
tribals.

A majority of the tribal people earn their living by selling the forest produce as there is no
other source except working as labourers for which they have to leave their native places
against their will. Tribal people earning income from major forest produce are very less. A
large percentage of tribes depend only on minor forest produce and hence the importance
attached to marketing of minor forest produce.

PRE-INDEPENDENCE:

In pre-Independence era the British rulers adopted some policies for restricting the
development of tribal people. In those days the tribal people are exploited by non-tribal
money lenders, contractors, Zamindars and middlemen. Roads were constructed by the
British in tribal areas for their own purpose and to exploit the forest produce. The policy of
the British was to reduce the contacts of tribal people with outside world to the minimum.
They supported the idea of 'isolationism' to a great extent. Tribal people are treated as old
stock of the people and 'isolation' has been their differential mark. The villages of various
tribes were depended on the forest which is easy to get the minor and major forest produce.

POST- INDEPENDENCE:

There is marked improvement in the living standards of the tribal people at present. This
gives us some satisfaction on the occasion of the celebration of 64 years of Independence.
However, there is still much to be done for the uplift of the tribal community.

Some jobs are reserved for the educated tribal people as per the reservation provisions of
the Constitution. But most of them do not try to come up to the required levels of education
to join in the Government, quasi-Government establishments or in private enterprises. Most
of them still depend on Minor Forest Produce, labour employment and cultivation of tiny
bits of mountainous terrain. Development through marketing processes is not assisted by
the Government or by Government agencies during pre-independence era. After
Independence however, some plans were envisaged by the Government through various
schemes for development of marketing processes. Marketing of minor Forest Produce in
weekly markets is an important aspect of daily life of the tribal people and requires all
possible help from various Government, Quasi-Government and non-Government
organizations.

The study on Marketing of Minor Forest Produce in weekly markets in the tribal area with
the cooperation of tribal people helps to achieve this goal. In the present circumstances the
importance of this study cannot be over emphasized. A sincere attempt is being done in this
respect.

REVIEW OF EARLIER STUDIES:

A number of studies and surveys which deal with different aspects of the tribal agency areas
and marketing issues were made. Of them, there are certain important studies carried out
both in India and abroad on various socio-economic, culture, finance and marketing aspects
of the tribal groups.

A brief account of some earlier studies is given to arouse academic thinking. Prasad Rao
(1970) in his study analysed various aspects of tribal economy and the changes caused in the
community due to the entry of merchants and money lenders into the financial activities of
tribal inhabitants. Raghava Rao (1971) further analysed exploitative money lending activities
in the tribal villages of Araku Valley and discussed the causes and extent of indebtedness.
Again, he examined various changes that have taken place in the Kanda Dora society due to
the contacts with the non-tribal money lenders and the introduction of modern technology
by the development agencies.

Murthy (1972) discussed the malpractices of money lenders and reviewed various measures
to be taken for amelioration of tribal conditions in South India. The studies of Vidyarthi and
Rai (1977) pointed out mainly the problems of tribes both monetary and non-monetary in
the weekly markets.

The Administrative Staff College of India (1978) made a brief study on the procurement and
marketing of minor forest produce in the States of Andhra Pradesh, Orissa, Madhya Pradesh
and Bihar. Sharma B.K. (1980) emphasized the frictions which are likely to increase in
economic spheres, particularly in recruitment and training activities.

Buddha Deb Chowdari and Sumitra Chowdari (1982) Quoted that the tribals are earn money
through subsidiary occupations like collection and sale of minor forest produce, hunting and
fishing. Makhan Jha (1982) studied the need of weekly markets and its importance in
different dimensions for the tribes of Odissa State.

The study on role of weekly markets in tribal areas by Murali Krishna Rao, 1 (1984) examined
the marketing system in tribal economy and the role of periodic markets in the economic
development of tribal people. Lai SK, Bhale Rao, MM and Gupta SBL (1984) have identified
that the tribals are engaged in part-time business activities due to seasonal unemployment.

Suresh Chandra Rajora (1987) stressed the need of retailing also in tribal villages for creation
of more employment. The study of Rama Mani (1988) examined the extension of credit by
the institutional financing agencies to the tribal people in the agency areas. A study by
Chiranjeevi Rao V. (1988) identified the role played by G.C.C. in the reorganization of
marketing system for the benefit of tribal people.

Mahalingam S. (1989) has advocated that the tribals in India with their very segment of the
weaker sections of the country with their traditional skills and resources. He also explained
the importance of different tribal groups and their marketable products, salient features of
tribal marketing structure and institutional building for the development of tribal market.

The annual work and financing plan of IFAD (1992) analysed the importance of usage of
weights and measures in the weekly markets located in agency areas. Pulla Rao (1994)
analyzed the impact of ITDA programmes on the tribal development in various fields with
reference to Visakhapatnam district. Sharat. A (2008) examined the performance evaluation
of ITDAs in Andhra Pradesh with special reference to Paderu of Visakhapatnam district.

Literature on the subject gave a focus on the overall view of the agency areas, functioning of
weekly markets, selling activities of minor forest produce and linkages of tribal people with
markets.

HYPOTHESES: Based on the review of earlier studies and the Pilot study conducted by the
researcher, the following hypotheses have been formulated in order to ascertain the facts
for arriving at suitable conclusions.

(1) The tribal people in the remote villages do not employ modern tools and equipment for
procurement of minor forest produce.
(2) There is hardly any marketing plan or marketing policies and procedures for the
development of trade and commerce in the Agency area.

(3) Promotional activities are not employed due to limited financial resources at the disposal
of the tribal people.

(4) The benefits of different schemes and projects implemented by Government of Andhra
Pradesh are not fully accessible to the tribal population due to their illiteracy and lack of
awareness.

OBJECTIVES OF THE STUDY: The purpose of this study is to examine the marketing process of
Minor Forest Produce and assess the impact of Weekly markets on the life patterns of tribal
people in Visakhapatnam district. The specific objectives are:

i) To study the socio-economic profile of tribal people in the region who are participating in
weekly markets;

ii) To examine the system and process of marketing minor forest produce in the tribal areas
of Visakhapatnam district;

iii) To examine the bottlenecks in the existing marketing practices and identify factors
inhibiting development of retailing also in the weekly markets,

iv) To evolve suitable strategies to increase market competitiveness among buyers of minor
forest produce in the region selected for study, so that the aim of betterment in trading is
achieved.

v) To assess the impact of different schemes and projects implemented by Government of

Andhra Pradesh through various agencies for the development of tribal people, in so far as
marketing of minor forest produce is concerned.

vi) To explore markets for minor forest produce of the region and offer suggestions for
evolving suitable marketing strategies for strengthening weekly markets.

RESEARCH METHODOLOGY: The region selected for the study comprises of a total of 44
weekly markets or shandies conducted in the entire agency area of Paderu division of
Visakhapatnam district. These weekly markets are conducted in different days of a week.
The samples have been restricted to five from each weekly market in the Agency area. In
each of these weekly markets a total number of 5 sellers were chosen as samples for the
purpose of study. Among the tribal seller’s women respondents were also given equal
importance as sample respondents.

The simple random technique applied for the purpose of selecting the tribal seller and
census method for middlemen or brokers had been used. The 44 weekly markets selected
for the study were purposively taken as samples, by taking into consideration the
information of any particular tribal person having enough knowledge to give the information
required for the study and also the nearness of his abode from the weekly market place with
the view that he will have more knowledge about marketing of minor forest produce. Thus,
maximum possible correct information is obtained and analysed in the study.

The present work is a micro study on marketing of minor forest produce. For collection of
primary data, two hundred and twenty sellers and twenty minor forests produce processing
units were covered by me in the agency area of Visakhapatnam District. The information
given by the tribal people selling minor forest produce about their socio-economic
conditions like age, sex, income etc., nature of business, quantities of produce traded, loans
and subsidies obtained etc. were collected through individual schedules. Shandies or weekly
markets were visited to ascertain the market rates and to find out the details of the minor
forest produce and products sold the rates and their fluctuations and many other details.
Thus, every attempt was made through field activity to obtain correct and complete data, so
as to present a clear picture.

For the purpose of this study, a comprehensive schedule has been prepared covering all
aspects that influence purchases by middlemen, socio-economic background of the tribal
people, their income, pattern of their expenditure, need for selling the MFP etc. A
questionnaire was also prepared for processing units to know the need for purchase of the
MFP from tribal people and its diversion to other markets in accordance with the required
demand.

In addition to these Schedules and Questionnaire, personal interviews are also held with the
officials in forest department, G.C.C., I.T.D.A. and experts in this field to understand the
process in depth to further substantiate the views and opinions of the traders and
middlemen. The required information is collected through various methods. Some of the
requisite data, historical facts, present day patterns and all such necessary information has
been collected from Dr.V.S.Krishna Memorial Library, Andhra University, Tribal Research
Centre and Training Institute, Paderu, and Annual reports of I.T.D.A., Paderu. In addition to
the above, related works available in the Department of Commerce, Andhra University,
Visakhapatnam are also taken into consideration. Minor Forest Produce Reports were also
collected from the Forest department, Raipur Chattisgarh State and have been studied.

LIMITATIONS:

The present study is based on some limitations. Just like any other social or commercial
survey, the present study is also subject to certain limitations which should be born in mind
while interpreting the result of the study. They are as follows.

1. In the North Coastal Andhra Pradesh there are three areas with concentrated tribal
people. Their headquarters in the three districts are Paderu in Visakhapatnam District,
Gummalakshmipuram in Vizianagaram District and Seethampeta in Srikakulam District. This
study has been taken up only in respect of Paderu division of Visakhapatnam District. The
field investigations were therefore confined to these 11 Mandals of Paderu division of
Visakhapatnam District.

2. The agricultural produce required for family consumption is not taken into account since
no trading practice is generally involved. Only the income derived from selling the surplus
agricultural produce was taken into consideration along with the minor forest produce for
the purpose of study.

3. The collection of data in the proforma has been found to be difficult. The tribal groups
usually maintain confidentiality and they are usually suspicious to furnish information. But
due to friendly contacts with tribal students and their parents, this difficulty has been
overcome and relevant information with almost correct data is obtained.

4. Marketing of Minor Forest Produce by the traders or middlemen is not involved in this
study since the purpose relates mainly to the marketing by tribal people.

5. The total of the activities of marketing by the G.C.C. is not taken up for this study as the
purpose is marketing by the tribal people only. However contextual reference was made
where necessary.
6. Social, Political and Cultural aspects of tribal people is not discussed and analysed.

7. Study is restricting it analysis and assessment of minor forest produce of Paderu agency of
Visakhapatnam district only.

In spite of these limitations, the quality of work is not disturbed at all since care has been
taken to examine the relevant aspects of the study keeping in mind major focus of the study.

RESOURCE POTENTIAL OF THE DISTRICT:

Apart from agriculture, Horticulture, Sericulture, Marine, Live Stock and forest resources are
very important potential resources in the district. Visakhapatnam district has vast stretches
of forests covering a total area of 4.78 lakhs of hectares, which constitute 48 per cent of the
geographical area. These forests have enormous and valuable potential of both major and
minor forest produce. Teak, bamboo, beedi leaves, timber, firewood, cashew, caesarian etc.
(major forest produce) worth Rs. 134.75 lakhs is contributed by the forest resources.

The minor forest produce such as Tamarind, Honey, Gum, Adda leaves, Myrobalan, Mohwa
seed, soap-nuts, Hill brooms, shikakai, nuxvomica, purgam seed, R.S.Roots etc. are largely
grown and their annual quantity is about 3.74 lakhs of quintals value Rs. 1733.90 lakhs.

The major forest produce has a good demand for furniture, construction, basket weaving,
mat weaving fuel briquettes, paper making, match boxes, matches, etc. The minor forest
produce has got good domestic as well as overseas market potential. Lot of value addition
can be made to products like Tamarind, Honey, Gum, Hill broom and so on. The existing
processing units are not adequate and the technology used is also outdated and as a result,
the required qualitative improvement could not be brought about in the end products.

TRIBAL PEOPLE IN VISAKHAPATNAM DISTRICT:

AL PEOPLE IN VISAKHAPATNAM DISTRICT: Visakhapatnam District is a coastal district with

two regions of contrasting ecological and topographic characteristic features, one with the
plain landscape extending from the sea coast up to the foot hills of the Eastern Ghats and
the other covered by thick forests the top elevated Eastern Ghats, with cool temperature
inhabited by the tribal people. The entire district is divided into three divisions viz.
Visakhapatnam, Narsipatnam and Paderu. Visakhapatnam district is having the highest
number of Scheduled Tribe villages. Most of the tribal people in the district resort to shifting
cultivation and Bagathas only are settled as agriculturists in this district.

CLIMATIC CONDITIONS IN THE DIVISION

Topography: The range of Eastern Ghats forming the hilly region of Visakhapatnam district
with an average altitude of about 900 meters is dotted by several peaks with a height
exceeding 1,200 meters. The highest mountain is named Sankaram which scales 1,615
meters hight.

Soil Conditions: The Paderu agency area is situated within the range of Eastern Ghats. The
elevation of the agency varies from 3000' to 4000' feet from above mean sea level. The soil
accounted for in general under textural classification constitutes poor gravel to sandy loams,
clay loams to heavy loams with varying volumes of soil. Depth in generally of 5' to 10' and
the soil is poor in nitrogen and phosphorous.

Rain Conditions: Rainfall depends on seasonal changes, usually the south-west monsoon
starts from third week of April every year and the north-east monsoon starts from the
October. The average annual rainfall in this tract is 1,234 MM according to annual reports of
ITDA, Paderu. Hail storms in summer and extremely cold climate in winter are common.

The entire agency depends mostly on rains. The nature of the rocks is biotic granite gneisses
with a Latterate capping. Khondalites and charnokites are also found here and there. Red
ochre, yellow ochre and lithomarge are also met with.

The Borra Caves near Araku Valley in paderu division are famous for photo graphite, mica
quality marble. The climate is cool and pleasant during summer with plenty of scope to
develop the valley into a beautiful summer visiting spot. Beautiful nature in and around
Araku Valley attracted the AP film industry also for movie shooting purpose. Winter is very
severe during the period November to February while heavy and incessant rains lash the
valley during rainy season i.e. June to September. In between Andhra Pradesh and Odisa
States Machkund is one of the important rivers which is on the Eastern Ghats (mountains)
and big Hydroelectricity project generates a large part of the power required by the three
districts of Visakhapatnam, Vizianagaram and Srikakulam, in addition to the Odisa state. The
said river joins Sabari River at Sileru.
Paderu division is rich in its forest resources especially minor forest produce. One of the
highest broad gauge railway lines of the country passes through the enchanting
mountainous tracts of Tyada, Anantagiri and Araku areas of Paderu Division upto Kirandal of
Madhya Pradesh.The entire Paderu hilly region is divided into 11 Mandal Praja Parishads
(Local bodies).

PRIMITIVE TRIBAL GROUPS (PTGs) IN PADERU DIVISION:

There are certain tribal groups which live in a primitive stage. They are called primitive tribal
groups. In the year 1942 Pandit Lakhminarayana Sahu studied about these hill tribes who are
still under primitive stage. They are living in barbarous conditions under a head man or
chief.9Eight tribal groups are identified as primitive tribal groups (PTG) in Andhra Pradesh for
special treatment. They are:

1) Chenchu 2) Konda Reddy 3) Kolam 4) Gadaba 5) Porja 6) Thoti 7) Khond 8) KondaSavara

Of these, three primitive categories are residing in Paderu division Viz., Gadaba, Porja and
Khonds.

As per the table PTG population in Munchungiput Mandal is 43.08 per cent which is a very
high percentage. In Dumbriguda mandal the P T G population percentage is only 5.44 which
is very low with reference to the total population. In Paderu Mandal the P T G population is
11.87 per cent of the total Mandal population.

PRIMITIVE TRIBAL GROUPS IN PADERU MANDAL:

In Paderu Mandal three Primitive Tribal Groups are concentrated. They are viz. Gadaba,
Porja and Khonds. Gadabas are predominantly found in tribal areas of Srikakulam,
Vizianagaram and Visakhapatnam Districts. They are largely found in Pottangi, Koraput,
Nandapur and Lamptaput areas of Odisa State. They are called Bodo or Gutob Gadabas.
Koloi or Porja Gadabas are well known as notorious robbers previously. Polygamy, divorce,
widow marriages are socially permitted.

Porjas are predominantly found in Scheduled areas of Visakhapatnam District and in some
villages of Jeypore estate of Odisa State. Porjas are also divided into sub-divisions. Each of
the sub-division is further divided into several clans such as Killo (tiger), Korra (Sun),
Samaridi (Bear), Onthala (Snake), Pangi (Kite), Gollori (Monkey) and Kimudu (bear).
Khonds are residing in the densely wooded hill slopes in the scheduled areas of Srikakulam,
Vizianagaram and Visakhapatnam Districts of Andhra Pradesh. Khonds are the most
backward community. The Khonds are divided into many sub-tribes. Each sub-tribe of Khond
tribe is divided into a number of clans. Each clan has a distinct name and "illupenu" with
reference to their house diety. In-between the clan's matrimonial alliances are not allowed.
Monogamy is the rule, polygamy is rare, but polyandry is unknown. Khonds in Paderu
Division are proficient in Telugu. They also know Oriya. They are multilingual. They follow the
profession of hunting and fishing. They are well versed in handicrafts like basket and mat
weaving, oil extraction etc.

SOCIO-ECONOMIC

ANALYSIS OF LOCATION FACTOR: The location aspect has assumed of late, great importance
in view of the national objective of optimum utilization of the natural resources. As
observation in 44 weekly markets representing 100 per cent are located within the tribal
Agency area. These weekly markets are taken into study. Maximum weekly markets located
in the Agency area which are located on the Eastern Ghats.

Location factor which influence and provoked many persons towards a specific place. Access
to availability of finance also considered in location decision with great importance. From
the rest, infrastructure has been considered as an important factor for deciding the location
of a business where as the remaining factors such as labor availability, costs, proximity to
forest produce availability were given moderate weight age in location decisions by
respondents under study in Visakhapatnam District.

In case of processing units, the main reasons for location decision ascertaining the main
reasons, the respondents are asked to tick the reasons which motivated them to locate their
unit at a particular region. For the purpose of this study, weights were given to each reasons
depending upon the degree of importance and their mean values were presented. As per
the study respondents expressed provision of Government subsidies are the top most
reason for locating the business units in the Agency area especially Adda leaf plates making.
Availability of minor forest produces is the second important reason with the mean value.

AREA OF MARKETING:
The area of marketing of the sample respondents under study is with in the Paderu Division.
In can be observed that most of the processing units catering to the need of the local
market, where as district market was restricted to limited Percent of total output. Further
insight by the study indicates that tamarind sellers concentrating on local market to the
maximum extent where as exports were minimized. Majority of the minor forest produce
have the national level market whereas Coffee seeds and Tamarind have international
market.

TRANSPORTATION Transport is necessary for mobilization of goods and persons from one
place to another. Due to mobility, the demand of produce also changed. Effective transport
is indispensable to economic progress. No nation can reach an advanced stage of
development without adequate facilities for moving goods and people. It is said that if
agriculture, forest produce and industry are the body, bones and joints form the national
organism. Transport and communication facilities are its nerves. In a large country such as
India transport is essential and it gives enormous employment directly or indirectly to crores
of people and also contributes substantially to the national income. Transport is not only
carrying the goods from one place to another but also cultures, social and moral values are
also transported. They diffuse knowledge, remove prejudices and destroy ignorance. Cheap
transport reduces the cost of goods and services. The consumers today enjoy the benefits of
business in respect of many goods that could not be produced in the immediate vicinity.
Forest produce is also consumed by many people who are residing in the towns, cities and
by other countries due the rapid development of transportation.

The particulars of status of the business premises of sample respondent sellers of minor
forest produce among the selected mandals is presented in the table. Out of total
respondents 66.36 per cent of them own their premises, 29.09 per cent of them take the
premises on rent and only 4.55 persons take the premises on lease basis. As can be
understood from the coverage of the chapter that the tribal groups earn money mostly from
marketing of minor forest produce and to some extent from agriculture, fishing and hunting.
Expenditure on religious ceremonies is high compared to the other items. Majority of the
respondents are males. Analysis shows that women respondents are less and only limited
persons are found in tamarind transactions. The conspicuous absence of women
respondents to such a great extent is due to the peculiar male dominated Hindu culture and
the traditions of business activity in India where the entry of women into business is
dictated by societal norms and customs. Nevertheless, the existence of 9.55 per cent of
women shows that women are slowly occupying different fields of life including industry and
trade. Regarding the religion a large number of respondents are Hindus. Majority of the
respondents come under second generation.

PROFILE OF THE WEEKLY MARKETS

INTRODUCTION

A profile of the selected weekly markets are presented in this chapter. The profile is analyzed
as per the survey results, in terms of history, gestation period, turnover and location etc. It is
also felt appropriate to write about weekly markets of Visakhapatnam district and Paderu
division before the profile of the respondents and units.

Among the various districts in Andhra Pradesh, Visakhapatnam district has registered a high
and thick forest area situated in this district. The total Paderu Division of Visakhapatnam
district is located in the Eastern Ghats. Hence, this division of Visakhapatnam has been
selected for the purpose of this study.

The respondent is conceptualized as a person on whom the success of a business depends.

The level of success depends upon his entrepreneurial talents. In this context, it may be
proper to look at the socio economic background of the respondents because individual
motivation is the most important and influencing factor in business especially in the sale of
Minor Forest Produce.

Keeping this in view, an attempt was made in the study to know the socioeconomic
background of the respondents by sample, throwing light on their sex, religion, education,
experience and factors motivated for choosing this type of activity. They are 220 in all.

MANDAL-WISE MARKETS In the entire agency area of 11 Mandals, 44 weekly markets are
held in different places. The Minor Forest Produce is marketed in these weekly markets or
shandies by the tribal people and processed products are sold through the GCC sales depots
in the State and in Rythu (farmer's) Bazaars also. The exploitation of Tribes by the plain
traders are controlled by the I.T.D.A. The I.T.D.A also encourages the tribal youth by
constructing some shops in the weekly markets. The Project Officer of the I.T.D.A. appointed
a staff of 30 market assistants and made provision for 82 free weights and Measures
material to prevent cheating of the tribal people by the traders in weight measurement.
These equipments are installed in weekly market (shandy) places. Care is taken in deploying
the staff to the markets so that all Shandies can be covered even if there is more than one
shandy on the same day. The deployment of two or more staff members is done as a routine
in big shandies. Close co-ordination with GCC personnel is maintained in the fortnightly
reviews. Every meeting will be conducted by the Project Officer with his special staff. In the
Visakhapatnam district 52.72 per cent of the total area is occupied by the agency area. The
total area of the district is 11,200 Sq.kms. The agency area covered 5904.51 Sq.Kms of
forests and mountains and adjoining areas. This special area is called Agency area, meaning
Agent to the Governor holding all the powers of administration over the area.

In Paderu Division 44 weekly markets are held in different places at different days.

LIST OF WEEKLY MARKETS IN THE AGENCY AREA

SL.NO PLACE DAY MANDAL

1 Araku Friday Arakuvally
2 Sunkarametta Sunday Arakuvally
3 Anantagiri Monday Arakuvally
4 Damuku Wednesday Arakuvally
5 Kasipatnam Wednesday Arakuvally
6 Borra Tuesday Arakuvally
7 Chintapalli Wednesday Chintapalli
8 Annavaram Monday Chintapalli
9 Lambasingi Thursday Chintapalli
10 Lothugedda Tuesday Chintapalli
11 Kinchumand Wednesday Dumbriguda
12 Dumbriguda Thursday Dumbriguda
13 Guntaseema Tuesday Dumbriguda
14 G.K. Veedhi Thursday G.K. Veedhi
15 R.V. Nagar Monday G.K. Veedhi
16 Darakonda Sunday G.K. Veedhi
17 Peddavalsa Friday G.K. Veedhi
 18 Jerrala Sunday G.K. Veedhi
19 Sapparla Saturday G.K. Veedhi
20 Seeleru Sunday G.K. Veedhi
21 G. Madugula Tuesday G. Madugula
SL.NO PLACE DAY MANDAL
22 Maddi Garuvu Thursday G. Madugula
23 Hukumpeta Saturday Hukumpeta
24 Kamayyapeta Tuesday Hukumpeta
25 Bakuru Monday Hukumpeta
26 Rapa/uppa Tuesday Hukumpeta
27 Koyyuru Sunday Koyyuru
28 Sarabannapalem Sunday Koyyuru
29 Kakarapadu Friday Koyyuru
30 Downoor Friday Koyyuru
31 Busiputtu Tuesday Munchungiput
32 Munchungiput Saturday Munchungiput
33 Boyitili Thursday Munchungiput
34 Jolaput Sunday Munchungiput
35 Laxmipuram Wednesday Munchungiput
36 Bangarumetta Tuesday Munchungiput
37 Rudakota Monday Pedabayulu
38 Pedabayulu Monday Pedabayulu
39 Gomangi Saturday Pedabayulu
40 Guttulu put Thursday Paderu
41 Paderu Friday Paderu
42 Minimuluru Sunday Paderu
43 Vantala mamidi Sunday Paderu
44 Poolabanda Tuesday Paderu

MANDAL WISE WEEKLY MARKETS IN AGENCY AREA:

Sl.No Name of the Mandal No.of Weekly Markets

1 Hukumpeta 4
 2 Paderu 5
3 Dubriguda 3
4 G.Madugula 2
5 Munchungiput 6
6 Araku Valley 2
7 Chintapalli 4
8 G.K.Veedhi 7
9 Koyyuru 4
10 Anantagiri 4
11 Pedabayalu 3
TOTAL 44

The Table shows the number of weekly markets on mandal wise. G.K. Veedhi, Munchungiput and
Paderu mandals stood in top position in holding weekly markets numbering 7, 6 and 5 respectively
ie.15.91,13.64 and 11.36 per cent. G.madugula and Aruku valley are the least as only two weekly
markets are held in each of these mandals. Chintapalli, koyyuru, Anantagiri and Hukumpeta mandals
have 4 weekly markets each whereas Dumbriguda and Pedabayalu mandals have 3 each. The meager
number of weekly markets held in some mandals is due to less population or less produce capacity
or both.

DAY-WISE HOLDING OF WEEKLY MARKETS

Sl.No Day of the Week No.of Weekly Markets

1 Sunday 9
2 Monday 6
3 TuesDay 9
4 Wednesday 5
5 Thursday 6
6 Friday 5
7 Saturday 4
TOTAL 44
TYPES OF MARKETS:

In the weekly markets, transactions commence from 6A.M.and continue till 5 P.M. at the latest.
Morning market is highly crowded and evening market was dull due to return of many people to
their houses before sunset. There are no regular markets or regular shops in most of the tribal
villages in view of the geographical isolation and absence of communication and transportation
facilities.

The weekly markets are organized at centrally located tribal villages. Tribal male members carry all
types of forest produce or agricultural produce on a bamboo device called "KAVIDI" with two big
baskets on both the ends of long stick which they carry on their shoulders. Women folk carry the
goods on their heads in gunnies or bamboo baskets. In the remote villages horses are a special mode
of transport even today. The horses can move easily on hill slopes with Forest produces. Tribal people
are accustomed to walk long distances to sell Minor Forest produce and to purchase essential items.
The interior villagers spend one to two days for their to and fro Journeys to visit weekly markets to
affect sale of their commodities and purchase essential articles for their daily needs.

In every village a batch of young people fix a programme to visit weekly markets. Due to long
distances and difficult terrain the tribal people start trekking in the early hours of the day and return
back to their villages before sunset.

Weekly markets held in the Agency areas are studied in detail especially on marketing of minor forest
produce. Due to importance of earning money through the sale of minor forest produce at weekly
markets, the tribal people adopt their own trade patterns to improve their lot. Many firms and
business establishments depend on Minor Forest Produce for use as raw materials. For instance the
tribal people sell huge quantities of ginger in weekly markets or shandies which is purchased in lots
and used as raw material by pickle manufacturing companies like "Priya Foods", "Ruchi" etc.

The concept of trade by the tribal people is peculiar when we see it with reference to ordinary trade.
The tribal people do not purchase goods for resale. They sell the items of forest produce derived by
cultivating their small possessions of agricultural land or extractions from the forest.

The weekly markets or shandies are classified into three categories as per TRC & TI records.

1. Specialized markets

2. General markets

3. Sub-markets or feeder markets.

In specified weekly markets only certain specific items or articles like vegetables, cattle and goats are
sold. These markets called specialized markets are famous for both selling and purchasing animals
such as bullocks, mulch cattle, sheep and goats. Tribal people come from long distances to these
markets for making necessary purchases. In some cases the tribal people go to places situated not
very far away in the neighboring districts and states also on foot. For instance, the tribal people of
Araku Mandal in Visakhapatnam District frequently go to Pachipenta and Salur weekly markets of
Vizianagaram District.

Goods in general like rice, Wheat, Ragi, Maize, provisions, cooking utensils, plastic containers, oil etc
are sold in the General markets. In the weekly markets Minor Forest Produce and all kinds of articles,
vegetables, meat, beef, pork, clothes, salt, kerosene, pots, knifes, eatables etc are sold. Some big
traders and agents of merchants from plain areas arrange and open the third category of markets at
important Junctions. These markets are called sub-markets or feeder markets. The language of the
tribal people and their nature and behavior are different and cannot be properly dealt with by the
merchants of plain areas. So, some big merchants employ local tribal person as their mediators for
negotiations with the local tribes. They are called "Dalaris" and they know the local dialect of the
tribal people. Majority of the tribal people are suspicious expecting deceit from the merchants. But
they repose confidence when dalaris (mediators) speak to them in their own tribal dialect.

However, in all these types of weekly markets, the sale of minor forest produce is common since the
tribal people have to purchase other commodities required by them for day to day living from out of
the sale amounts.

Traders from long distances like Mumbai and Chennai go to the tribal areas of Visakhapatnam for
purchase of herbal medicines and moonstones. The herbal plants like 'bagpiper' are largely grown in
the remote tribal areas. The traders from Mumbai go to these specific shandies where these valuable
herbal medicines are brought for sale. Similarly the turmeric grown in tribal Agency areas of
Visakhapatnam district commands good market in Tamilnadu State. Turmeric is harvested once in
two years. It is an antiseptic material used in Ayurvedic treatment and gives very good smell and
color and importantly it is a great necessity for preparing curries and some types of food items. So,
traders from Chennai purchase turmeric in weekly markets of tribal areas of Visakhapatnam District.
Recently moonstones and other valuable stones are found in these tribal areas. There are certain
places in tribal areas where the moonstones can be found by digging large and deep holes. The local
tribal people know these areas, where the moon stones are available. They give information to plain
people about these places if they are offered money. Also the plain people utilize the services of
these tribal people for digging the earth in remote areas, by paying large sums for the information
given and towards labour charges. They get huge profits after collecting the moonstones which are
sold by them in Mumbai and other cities. Some intelligent tribal people themselves collect these
stones and sell them for very high prices. Such tribal people made a lot of money, some even
purchased Jeeps, motor cycles and constructed permanent houses. The digging of these stones is
illegal as mined material belongs to Government. Police department, Revenue and Mining
Departments have since interfered and took effective steps to control this type of mining and trading.
Still, such a trade is not completely wiped out as it is difficult to watch and prevent such digging in
the interior tribal area.

MARKET RATES OF THE PRODUCE AT WEEKLY MARKETS

S.No. Name of the produce Months/Season

1 Adda leafs January-August
2 Hill Brooms January-December
3 Honey May-December
4 Tamarind May-July
5 Sheekakai November-March
6 Usri( Goose berries) January-July
7 Jack fruit June-September
8 Turmeric January-May
9 Coffee Seeds January-May
10 Ginger January-December
11 Paddy December-February
12 Naramamidi chekka June-December
13 Custard apple July-November
14 Karakai November-May
15 Nallagidi pikkalu May-August
16 Pippallu August-December
17 Maize February-May
18 Patala garidi January-March
19 Pine apple May-July
20 Valesalu November-February
21 Pumpkin November-December
22 Bamboos August-October
23 Dhalia-flowers August-February
The retail rates of several kinds of forest produce major and minor are given in the table. The rates
generally vary with reference to demand and supply. Excess and balance stocks are sold at cheaper
rates in the afternoon as the tribal people do not like to carry back the produce if they are heavy in
weight, also the rates come down in the afternoon if the sellers do not get sufficient cash on sales
required by them for spending during the week till the next weekly market day.

It is however certain, that whatever may be the rates prevailing in the weekly markets, they are
always far lower than those prevalent in plains areas. Generally the tribal people are honest,
innocent and simple minded and are liked by the people from plain areas although it is a fact that
some traders are engaged in misleading them and exploiting them. Protection of the existing forests
and a forestation which helps the tribal people to eke out a better living should be sincerely and
strictly undertaken by the Forest Department.

The study reports that the entire agency area of 11 Mandals, 44 weekly markets are held in different
places on different days. The weekly markets are organized at centrally located tribal villages.
Majority of the weekly markets are held on Sundays and Tuesdays. They give importance to these
two days considering them as auspicious days from the view point of tribal beliefs. All the tribal
groups frequently go to shandies or weekly markets for selling minor forest produce and buy
essentials for their domestic usage. The weekly market is the main source to earn money by sale of
procured produce of the tribal people. The Minor Forest Produce is marketed in these weekly
markets or shandies by the tribal people and processed products are sold through the GCC sales
depots in the State and in Rythu (farmer's) Bazaars also. The exploitation of Tribes by the traders are
controlled by the I.T.D.A. Due to lack of sufficient infrastructure some of the sellers informed that
they shift to towns and cities where better facilities are available.

WEEKLY MARKET PROBLEMS: AN ANALYSIS

In this chapter the practical problems faced by the respondents in marketing of their produce in
weekly markets are presented. The respondents face problems in marketing of minor forest produce
in agency areas especially in the weekly markets. The respondents are facing many economic, social
and ethical problems in and around market. One important problem faced by the respondents in the
tribal agency areas is lack of sufficient roads and communication facilities. Their extraction
techniques are very primitive and the respondents are not in a position to bring sufficient produces
to the markets. The following are the main problems of the respondents directly or indirectly
effecting on their trade and development in weekly markets.
COMMON PROBLEMS IN THE REGION

Low level of Literacy: The literacy levels among the tribal people and respondents are extremely
low. Previously simple reading and writing are also very difficult for these people. They care more for
their word of promise than for any written document. They are very much afraid of police, Revenue
officials, other Government officials and mandal development officials. The new generation must be
reared up in the Ashram Schools, Polytechnics and Professional colleges so that they can leave their
isolation and become part of the open society of India. Previously female education is neglected but
now their education also is gradually improved up to level of degree and post graduate.

More Expenditure on Social Customs: After food and clothing, the other important items of
expenditure of the tribal people are taking hot drinks, smoking, social and religious ceremonies,
cultivation, if any repayment of debt. These items of expenditure constitute a heavy toll on their
income when compared with the others. The expenditure on education is negligible. Most of the
respondents take hot drink prepared with jeelugu (caryatid) toddy and sometimes illicit liquor also.
Severe cold climate in winter necessitates thick bed sheets and blankets. Their expenditure is
generally over and above the limits of bare necessities of Life. The expenditure is generally above
their financial capacity which leads them to eventually land in indebtedness and poverty.

Poor Housing and Storage Facilities: The architecture of houses belonging to various tribal
communities generally differs from tribe to tribe and also area to area. The housing pattern reflects
not only the socio-economic conditions, but also the level of technology and economic
advancement. The availability of housing material in the nearly areas is another factor that decides
their housing pattern. Amongst the tribal people, the Primitive Tribal Groups are still more backward
and they live on forest produces and construct their leaf tenements in forest lands and mountainous
terrain and slopes considered to be unhealthy and dangerous Localities. Some tribal groups construct
their houses with bamboos and the roof is made of thatches with grass available in the forest. In
view of the extremely cold climate, tribal people do not fix any kind of windows. Each house will
have an attic made out of wooden planks to store food grains and other Valuable articles. Generally
the size of the house inflects the economic position of the household.

Language Barrier: Most of the tribal respondents speak their own dialects. Most of them know
common Telugu language also. Middlemen from plains learn local tribal dialects in order to build
good rapport with these tribal people. Otherwise their business transactions may not yield good
results due to language barrier.
Lack of Managerial Qualities: Most of the tribal people incur losses in business due to lack of
managerial abilities. They lack knowledge in planning, organization and control techniques. They do
not have sufficient knowledge regarding maintenance of equilibrium between demand and supply of
the forest produce in the market. They blindly transport the total produce to the market without
knowing the demand position. Automatically, it results in over supply of goods. Due to lack of
communication facilities they follow and continue the existing prices which may be lower than the
present prices which often rise from time to time. They do not take into account the rising cost of
living and consequential rise in prices of all material in the market.

Other problems: Other problems include Maoist attacks, reduction in subsidies of Government,
changes in Government rules and regulations etc.

MARKETING PROBLEMS: Previously the problems relating to marketing of forest produce were
discussed by many researchers. In the present chapter the practical problems faced by the
respondents in marketing of their produce in the weekly markets are presented.

The following are the problems of the respondents directly or indirectly effecting on their trading and
development.

Lower Quality of Produce: The Indian forest produce does not enjoy good reputation in foreign
markets, except tamarind and coffee seeds. The low quality of the produce is due to nonprotective
methods of seedling, control of plant diseases, drought or too much rain, deliberate adulteration and
damping, etc. Some items of produce are perishable in nature. The produce sometimes get spoiled
during transportation.

Absence of Grading and Marking: In Agency areas there is no practice of grading of the produce to
be sold. The purchaser has, therefore limited confidence in the quality of the produce. The purchaser
has therefore to verify personally and satisfy himself about the quality of the produce. This proves to
be a serious handicap in the marketing of such produce. Grading and Marking Act 1937 is not
implemented here. Government staff in the Marketing Department only supervises and advise them
for grading. It is difficult to take up grading of the minor forest produce because of absence of
experts.

Lack of Transport facilities: Transportation is another problem in the agency areas. There is no
railway facility except Araku Valley mandal. Transportation of goods through roads is also difficult due
to the hilly area and as the altitude is about 3000' feet above the sea level. There are no road links
between the villages in some areas. People are accustomed to walk long distances carrying heavy
forest produce.
Lack of Market intelligence: Owing to poor means of communication, the news about the market
prices, etc., seldom reaches villages. The lack of up-to-date market information places the tribal
people at a great disadvantage. It also causes variations in prices in different markets. Commercial
agencies do not divulge the information available with them. The tribal people are also unable to
visualize the market dynamics.

Multiplicity of Intermediaries: There is a large number of intermediaries between the tribal people
and the consumer or industrialists. Involvement of Dalaries, middlemen and brokers is more in these
markets. All of them earn money in these markets sometimes more than the tribal people do. Each
of them claims his margin and thereby decreases the returns due to the tribal people. The tribal
people should be encouraged to sell the produce to G.C.C. and get more profits since the G.C.C.is
established only to serve the interests of the tribal people.

Fraudulent Practices: Many malpractices prevail in the markets. These result in defrauding the tribal
seller by knocking away a good part of his sale receipts. Some of these practices are in the nature of
under measurement, buyer domination in the settlement for lower price, local cess (tax) etc.

Multiplicity of charges: The greatest scandal of the present day-marketing is the multiplicity of
charges levied on the seller. The total charges vary from one market to another. The charge is high
and unbearable in some sections. These charges are the sum total of items like commission, labour
charges, measurement cost, tips, charity for temples etc. The seller can save about 50 percent of
these charges if he sells through the Girijan Co-operative Society.

Lack of storage and warehousing facilities: Due to the lack of financial reserves, the tribal people sell
the produce at cheaper rates as he wants quick money for his maintenance. He keeps back a small
quantity of the produce only he needs for his own purpose. In almost all cases there are no storage
facilities in the house. Satisfactory warehousing facilities are also not available in the market area.
Only G.C.C. storages are available and procure purchases by GCC would only be stored there. In
larger markets produce is stored in 'Kothas' underground storage, which exposes the produce to
white ants, rats and dampness. The stocks also get damaged by white ants due to lack of
precautionary measures. It is estimated that in India 65 per cent to 70 per cent of the forest produce
annually is stored by tribal people and 30 per cent to 35 per cent only by traders and Government
agencies. The tribal people are compelled to store the unsold stock of their produce mostly in the
open as their houses being very small have no accommodation for storage. Naturally the produce
kept in the open gets spoiled. The previous sample surveys suggested that the losses during handling
and storage were around 10 per cent of the produce and that much of the losses occurred at the
level of storage by tribal people and traders. It was also stated clearly the losses were to a large
extent avoidable. If convenient warehouses exist, the tribal people could easily get loans either from
the village Co-operative Marketing Society or even from any bank on the security of the stored
produce.

Inadequate Market Facilities In recent years, thanks to the Green Revolution and communication
networks, the volume of market arrivals has increased remarkably, but this is not matched by
corresponding expansion of market yards and other market ancillaries. The obvious sufferer is the
tribal person. In weekly markets the seller face many troubles due to heavy rains, in the agency
areas. There are no proper shelters in the weekly markets.

EXTERNAL PROBLEMS

Indebtedness : Indebtedness is a serious economic problem among the respondents in the Agency
area. Out of the two hundred twenty respondents interviewed for this purpose as many as (195) one
hundred ninety five reported that they are in debts due to the various agencies and private money
lenders, banks etc. The rate of interest varies between private money lenders, who are from plains
and the banks. These respondents borrow loans for domestic as well as for social rituals.
Considerable amounts are spent by them on marriages and other social rituals. Even fines and
penalties are charged against them in the form of feasts they have to arrange to the community
involving heavy expenditure. Expenditure on country liquors is not commensurate with their income.

Exploitation by Middlemen in Weekly Markets : Some Respondents come from long distances to
visit the weekly markets for purposes of selling their forest produce and later purchase various
commodities required by them. The commodities that are purchased regularly by them are salt,
kerosene oil, low cost ornaments and clothing. As every commodity is now valued in terms of money,
barter system is virtually non- existent and the tribal economy has practically turned into a money
economy. The interior villagers are accustomed to spend three to four days on their to and fro
journeys to visit weekly markets. The transactions in the weekly markets are mostly exploitative as
the traders never reveal the prevailing market rates. The traders at a few places clandestinely
procure items of minor forest produce by advancing petty loans.

The respondents are forced to sell away the produce at the price fixed by the middlemen. The reason
is that they are anxious to get money urgently to get their day to day food and other essentials. The
private merchants totally control and reduce the prices of agricultural and forest produces especially
those perishable in nature in the weekly markets. The prices of jack fruits, ginger, maize, tamarind
are almost constant for the last 5 years. The prices of a jack fruit varies from Rs. 10 to Rs. 20. The
merchant sells the same fruit at Rs. 80 to Rs. 100 in plain areas and towns depending on the size of
the fruit. The traders and middlemen cheat the local tribal people by using traditional measures.

Free market systems are not developing in the tribal areas. The traders from plain area advance petty
loans on the tamarind tree or standing agricultural crop. The respondents sell their produce to those
traders only because of prior agreements irrespective of the prevailing market rates. The fact is that
they generally stand by their oral commitments.

The private merchants learn local dialects, study the psychology and needs of tribal people and
advance loans to them when they are in dire need of money. The Girijan Co-Operative Corporation, a
Government undertaking has been purchasing minor forest produce and other non-perishable
agricultural items at reasonable rates from the tribal people and selling essential household items to
them at fair price through its good network of domestic requirement depots situated in tribal
villages. Duplicate brand named soaps, hair oil, face powders, shampoos; biscuits etc. are sold in the
weekly markets to tribal people, coming from remote and interior villages because of the fact that
such tribal people are not in touch with popular brands nor can they discover the imitations. They
just find out whether the cost is within their reach or not and the generic product is suitable or not.

Source : Shodhganga