The 3rd International Conference on Linking Markets and Farmers focused on collective markets and the product pyramid. Small farmers lack economies of scale, access to finance, local value addition, and access to remunerative markets. The MART philosophy takes a market-led approach to empower small farmers through collectives to access mainstream markets. MART has expanded from 2 districts to 6 districts in Orissa, covering 148 villages and 1500 SHG members, with annual turnover increasing from 0.5 million to 5 million. MART's approach maps marketable surpluses, builds SHG/CIG capacity, develops market infrastructure, and links farmers to markets through negotiation and profit sharing. This results in increased prices, understanding of

1. 3rd International Conference on Linking Markets and Farmers
Linking Markets
Collective Market

2. The Product Pyramid
Finished Branded, packaged, standardized ,
high competition, require high skill
Semi
Finished Unbranded, high competition, more
margin, require high skill to produce,
Involves function like processing,
packing etc.
Minimum Value Addition
Low skill, high volume, huge market;
Raw Produce Involves trading function only,
Accrual of 10 to 15 % incremental
Raw Produce margin within immediate value chain
Product Pyramid in a village

3. Issues identified
Lack of economies of scale at the village level
Lack of economies of scale at the village level
Lack of access to finance
Lack of access to finance
No local level value addition
No local level value addition
Lack of access to remunerative markets
Lack of access to remunerative markets
Exploitation at the hands of intermediaries
Exploitation at the hands of intermediaries

4. MART Philosophy
A market led approach to livelihood promotion
A market led approach to livelihood promotion
• Empower the small farmer through CBOs to negotiate the
market through collectivization for economies of scale
• Linking farmer to Mainstream market
• Focus on public-private-community-partnership
• Facilitate and build capacity - not get involved in buying
and selling
• Intervention should demonstrate scalability
• Maximum return to the farmer with minimum additional
investment

5. Coverage
Initiative in most backward Districts of Orissa
Initiative in most backward Districts of Orissa
Started with Expanded to
Coverage (districts) 2 6
Coverage (districts) Balangir, + Kalahandi, Koraput,
Nuapada Gajpati, Kandhamal
No of Villages 20 148
No of SHG members 200 1500
Turn over (INR) 0.5 Million 5 Million
Products Miner Millet, Vegetables, Nizer, Cow
Cotton, Onion, pea, cashew, tamarind,
mahua, char

7. Approach
Mapping produce having marketable surplus
Mapping produce having marketable surplus
SHG/CIG
SHG/CIG Market
Market Market
Market
Orientation
Orientation Infrastructure
Infrastructure Linkage
Linkage
•• Concept Sharing
Concept Sharing •• Drying
Drying •• Market
Market
•• Capacity build platform
platform search
search
Capacity build
•• Systems in place •• Weighing
Weighing •• Negotiate
Negotiate
Systems in place
•• Logistics
Logistics with trader
with trader
•• Business plan
Business plan
•• Quality check
Quality check •• Linkage
Linkage
•• Financial linkage
Financial linkage
•• Share Profit
Share Profit
•• Procurement
Procurement
Planning for the next produce
Planning for the next produce

8. Incremental Price Realization
MIS Distant Market
Distant Market 5%
5%
MIS
Local Market
Local Market 5%
5%
Processing
Processing Local Value Add
Local Value Add 5 -10%
5 -10%
Drying, Grading,
Drying, Grading,
Weighing, Packaging
Weighing, Packaging
Producer Co
Producer Co Collectivization
Collectivization 10 ––15 % incr. price
10 15 % incr. price
Bargain
Bargain
Raw Produce
Raw Produce

9. Overall benefits
Control over the raw produce
Control over the raw produce
High value for the produce - -(drying, less waste, weighing, grading, packaging)
High value for the produce (drying, less waste, weighing, grading, packaging)
Increased understanding on market by poor
Increased understanding on market by poor
Greater understanding of supply chain
Greater understanding of supply chain
Effective utilization of loan
Effective utilization of loan
Importance of marketing infrastructure
Importance of marketing infrastructure
Competitiveness among market channel players
Competitiveness among market channel players
Replicated in other blocks and projects
Replicated in other blocks and projects

10. Thank You!