A Study of Situation of intermediaries of Agricultural Products in Rural Market of Prayagraj District, Uttar Pradesh, India

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Nitesh Singh , Sandhya Sinha

Department of Commerce and Management, Maharishi University of Information Technology, Lucknow, India

Corresponding Author Email: asstprof10@gmail.com

DOI : https://doi.org/10.5281/zenodo.6723601

Abstract

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Introduction

For the success of any business supply chain management must be effective and efficient. It means that products are reached to the consumers at the right time and right place to the right person. Supply chain management mainly consists of inventory, transportation, warehouse facilities to the business intermediaries etc. Wholesalers, retailor, agents or both have a great role as they reached the products to the end-user or consumer. Business intermediaries, transportation modes, warehouse facilities, government help, etc. help to supply the product to the customer or consumer effectively and efficiently.

Better availability of products is an important aspect as it increases supply chain management to a great extent. Supply chain management needs to improve various factors such as government role, and awareness of the business intermediaries in rural markets. The role of the government is to give make policies by the help of which the size of the particular industry increases. Thus, most people are attracted to the distribution business. Thus, it would increase in domestic and international competitiveness in a particular industry.

Uttar Pradesh has a large contribution in business in rural markets as large population of the Uttar Pradesh mainly depends on agriculture itself. Uttar Pradesh has first rank in the production of wheat in India. The total population of Uttar Pradesh is 19, 98, 12,341 (As per 2011 census) contributing 16.51 percent of the India’s population. Uttar Pradesh consists of 20 agro-climatic zones and eight soil groups. Uttar Pradesh has 15, 53, 17,278 total population and contributes 77.73 percent of India’s total population (As per 2011 census). Uttar Pradesh has the first rank in the total rural population of India. The growth rate of the rural and urban population of Uttar Pradesh is 17.96 and 28.82 percent (2001-11).The total population of Prayagraj is 5954000 out of which 31,32,000 are males and 28,23,000 are females (2011 Census). The population density of Prayagraj is 1,086 per square kilometer. There are mainly 20 developmental blocks and 2802 inhabited villages.  The research study is conducted in the market of Prayagraj region. This market comprises a large number of wholesalers and retailer of agricultural products and allied agricultural products. As literature review is concerned, it is mostly related to various functions, models and products etc. In this paper, it is mainly concerned with the distributors i.e. wholesalers and retailers their challenges, opportunities and problems in the rural market. In this paper, the researcher interviews the market intermediaries in three rural markets of Prayagraj district. This paper highlights the pros and cons, transportation facilities, warehouse facilities and relations with their suppliers etc.

Research Objectives

The objectives of this research paper are as follows:

1-Analysis of various problems, opportunities and challenges faced by different business intermediaries in rural market of Prayagraj.

2-To analyze various factors such as availability of various facilities i.e. warehouse, transportation etc. to business intermediaries in rural markets of Meja, Phulpur, and Sirsa of Prayagraj district.

 Review of Literature

In this paper, the researcher highlights the different problems, opportunities and challenges of various business intermediaries i.e. wholesalers, retailers or both are considered. Business intermediaries performed an important role in the process of Supply Chain Management (SCM) in the rural market of Prayagraj.The literature review is very much useful to find out the research gap. [1] highlights the lack of commitment of the top management and the objective of the organization is not clear which is most focused among the different barriers. He emphasizes various barriers like lack of motivation, lack of education and training, lack of financial resources etc. Supply chain management is mainly affected by all the barriers to organization. [2] given the green supply chain management. Four wheeler Automobile industries facing more problems. [3] analyze driving and dependence power. [4] focuses on the Agency theory which is used in the dynamics of the supply chain behavior and their relationships. [5] analyze the subject behavior of literature review of the last ten years. [6] focuses on crucial tools regarding the research field. [7] contribute in the debate related to knowledge management under the supply chain management. [8] highlights corporate social responsibility that people focus on the research of Supply chain management about so many years in the past. [9] highlighted that socially related things are neglected by the academicians in last few years. [10] focuses on sustainable supply chain management (SSCM) which is useful for the micro and macro level individual firm operations. [11] emphasizes to found the sustainable goal of the organization.

 Data and Methodology-The data and methodology regarding SCM are as follows-

It consists of various factors which are associated with the rural market of the Prayagraj region, Uttar Pradesh, India. It includes government registration, business intermediaries, Markets, qualification of owners and Entrepreneurs, GST number, own warehouse facility and mode of transportation. The percent calculation methods are used in this research paper. It also covers Wholesalers/Distributors, retailers, agents, and Wholesalers/retailers.

Categories		Actual Sample size	Percentage	Mean
Government Registration	Registered	92	92
	Not Registered	08	08
	Total	100	100	50
Business Intermediaries	Wholesalers/Distributors	17	17
	Retailers	49	49
	Agents	03	03
	Wholesalers/Retailers	31	31
	Total	100	100	25
Markets	Meja	30	30
	Phulpur	35	35
	Sirsa	35	35
	Total	100	100	33.33
Qualification of Owners/Entrepreneurs	Senior Secondary	54	54
	Higher Secondary	29	29
	Graduation	10	10
	Post-Graduation	07	07
	Total	100	100	25
GST Number	With GST Number	94	94
	No GST Number	06	06
	Total	100	100	50
Own Warehouse Facility	With warehouse availability	34	34
	No warehouse availability	66	66
	Total	100	100	50
Mode of Transportation	Private vehicle	37	37
	Buses	04	04
	Trucks	59	59
	Railways	0	0
	Airlines	0	0
	Total	100	100	20
Turnover	With Turnover	43	43
	Without Turnover	57	57
	Total	100	100	50
Getting  material time  from manufacturer/supplier	Less Time	22	22
	Below average time	24	24
	Average time	36	36
	Above average time	13	13
	More Time	05	05
	Total	100	100	20
Product range	Less range	39	39
	Below average range	0	0
	Average range	61	61
	Above average range	0	0
	More time	0	0
	Total	100	100	20

    Table 1.1: Sampling

Source: Primary survey in Prayagraj, UP, India

The hypothesis of the Study

The hypothesis is divided into two parts, these are as follows-

H0- There is no statistically significant difference between the rated importance of the variable related to intermediaries of agricultural products.

H1- There is a statistically significant difference between the rated importance of the variable related to intermediaries of agricultural products.

In this paper, the researcher uses one-way ANOVA to test the hypothesis.

Step1: Overall mean of all the groups-34.33

Step2: Calculate SSR (Regression sum of the square)

= n∑(X1-x̄—–) 2

=5299.85

Step3: SSE=∑ (Xij-x̄j) 2

=14,500.08

Step4: SST=SSR+SSE

=5299.85+14500.08

=19,799.93

Now we have SSR, SSE, and SST, we will fill in the ANOVA table:-

S.No.	Source	Sum of square	Df	Mean
1	Treatment	5299.93	9	2,199.99
2	Error	14500.08	24	604.17

 

F=MS Treatment/MS Error

=2,199.99/604.17

=3.641

p value=0.050

p-value is equal to 0.05 therefore, the null hypothesis Ho is rejected. Thus, H1 is accepted and there is a significant difference between the rated importance of the variable related to intermediaries of agricultural products.

The research study is mainly based on a primary source of data. In the collection of data simple random sampling is used. The data was collected from three markets of Prayagraj i.e. Phulpur, Meja, Sirsa etc. Uttar Pradesh India. Views of 100 respondents are used in this survey. This paper, it is based on a personal interview. Sample involves various business intermediaries i.e. wholesalers, retailers, and agents related to agriculture and allied agriculture items. About 32 percent of the sample respondents are distributors, 48 percent are retailers, 08 percent are agents and 12 percent are both wholesalers/retailers.

Results and Discussion

As data analysis is concerned, the researcher fills the questionnaire with100 respondents of distributors, retailers and both of agricultural products i.e.-wheat, rice, barley, maize, etc. and allied agricultural products such as curd, milk, fruits, vegetables etc. . The analyses regarding data are as follows –

1-Registered Retailers or wholesalers: There is 98% of registered retailers or wholesalers are present in the Prayagraj market.

Number of wholesalers , retailers or both of rural market	Percentage of registered wholesalers or Retailers
100	98

Table1.1.1

The retailers or wholesalers are attentive to the registration. The maximum number of retailers are registered which shows that they follow the rules and regulations or business ethics.

2-Region where the survey is done

Number of respondents	Region where survey is done
100	Phulpur,Meja and Sirsa

Table 1.1.2

The survey is done in Phulpur, Meja and Sirsa market of Prayagraj region of Uttar Pradesh. In these rural areas people are mainly depend on agriculture such as wheat, rice barley etc. or agriculture allied commodities such as of milk, Curd, fruits etc. The interview is taken on 100 wholesalers or retailers or both.

3-Turnover of wholesalers, retailers or both of agricultural products in the rural market

 

Percentage of retailers or wholesalers have turnover	The percentage of retailers or wholesalers who have  no any turnover	Amount of turnover
43	57	Above 50 Lakhs/annum

Table 1.1.3

About 57% of retailers have no any turnover .43% of retailers or wholesalers have turnover. They are the big wholesalers or distributers, their average turnover is appr. Above 50 lakhs/annum.It shows that retailers or wholesalers have a limited turnover.43% of retailers or wholesalers have no turnover as they have limited business.

 

4-Business Type

S.No.	Percentage of Distributors	Percentage of retailers	Percentage of Agent	Percentage of wholesaler/retailer both
1	17	49	03	31

Table 1.1.4

Thus, retailers have large percentage i.e. 49 and agents have less percentage i.e.03 in the rural market of the Prayagraj region. The percentage of both Wholesalers and retailers is 31.

 

5-Qualifications:

S.No.	% of Xth pass	% of XIIth pass	% of UG Pass	% of PG Pass
1	54	29	10	07

Table 1.1.5

Thus, 54% of retailers or wholesalers have Xth passed, 29% have XIIth passed and 10% have UG passed and 07% have PG passed. Maximum percentages of distributors, retailers or both have Xth passed.PG passed people have the least percentage i.e. 07%. This shows that people are less interested in study at higher education and more focused on trading business. 

Dealings

S. No.	Percentage of agricultural items	Percentage of Allied agricultural items	Percentage of both
1	69	10	21

Table 1.1.6

Thus, the dealings of maximum items are of agricultural items such as wheat, rice, pulses etc. in rural market of Prayagraj region i.e. 69%. Hence, the production of agricultural items has more in these areas. People are more interested in the trading business of agricultural items i.e.10%. Both Allied agricultural items such as milk, curd etc. and agricultural items have less percentage i.e. 21% in these markets.

7-Getting on-time material from manufacturing/supplier

S. No.	Per. of Less time	Per. of Below Average time	Per. of Average time	Per. of Above average time	Per. of More time
1	22	24	36	13	05

Table 1.1.7

22% of retailers or wholesalers are agreeing to get on less time material from the manufacturer/Supplier, 24% to get the material on below-average time, 36% receive the product on average time, 13% are of above-average time and 05% take more time to supply.

8: Product range

S. No.	Per. of Less Product range	Per. of the Below average range	Per. of Average range	Per. of Above average range	Per. of more range
1	12	33	38	06	11

Table 1.1.8

Thus, 38% of retailers and wholesalers of rural markets have an average product range. It is more in percentage.11% have more product range, 33% have below-average range.12% have less product range and 06% have above product range.

9-Transportation facilities

S. No.	Per. of Private vehicles used	Per. of Buses used	Per. of Trucks used	Per. of Railways used	Per. of Airways used
1	39	0	61	0	0

Table 1.1.9

A large number of retailers or wholesalers used trucks i.e.61%, 39% of retailers and wholesalers used private vehicles, 0% used buses, railways, and airways.

10-Own Warehouse availability

S. No.	Percentage of retailers who have their own warehouse	Percentage of retailers who do have not their own warehouse
1	36	64

Table 1.2

As its own warehouse availability is concerned 36% of wholesalers or retailers have their warehouse whereas 64% of retailers do have not their warehouse. Thus, average or small retailers are more in number in this market.

11-Government financial aid to expand the business

S. No.	Per. of Less Gov. financial aid	Per. of below financial aid	Per. of average financial aid	Percentage of above average financial aid	Per. of more financial aid
1	36	44	14	06	0

Table 1.2.1

 Thus, 36% of retailers or wholesalers agreed to provide less financial aid by the government, 44% supports below financial aid, 14% agreed on average financial aid and 06% supports above-average financial aid and 0% supports to provide more financial aid by the government. Maximum retailers say that government does not provide any financial aid in these areas. As the process is more complex, it takes a long time hence they do not apply for financial aid.

12-Government help in case of any loss

S. No.	Per. of less govt. help	Per. of below govt help	Per. of average govt. help	Per. of above govt help	Per. of more govt. help
1	27	72	11	0	0

Table 1.2.2

Hence, 72% of retailers or wholesalers support below government help, 27% supported less government help, 11 % agreed with average government help 0% says above government help, and supported more government help respectively. Most of the retailers say that in case of any loss no help is provided by the government immediately. It takes a long time. Hence, they are less concerned about government help in case of any loss.

 13-Training and skills provided by the government

S.No.	Percentage of retailers supports that government provides no any training and dev. Skills programs in the rural market
1	100

Table 1.2.3

Thus, all the retailers or wholesalers of the rural market of the Prayagraj region support that government does not provide any training and skill development programs to them. Maximum retailers agree that training programs should be provided by the government regarding their concerned business.

14-GST Number

S.No.	The percentage of retailers or wholesalers who have the GST number	The percentage of retailers or wholesalers who have no GST number
1	92	08

Table 1.2.4

92% of retailers or wholesalers in rural market of Prayagraj region have GST number whereas only08% has no any GST number as they are the small retailers.

 

15-Customer Satisfaction

S. No.	Per. of less satisfaction	Per. of below satisfaction	Per. of average satisfaction	Per. of above- average satisfaction	Per. of more satisfaction
1	17	0	40	25	18

Table 1.2.5

Hence, 17% of retailers support that customers are less satisfied 0% of customers are below satisfied. 40% of retailers agree that customers are average satisfied, 25% of retailers says that customers are above average satisfied and 18% of retailers support that customers are more satisfied. Most of the customers are average satisfied i.e. 40% from their retailers or wholesalers. Wholesalers or retailers are more concerned to provide a better service to their customers.

 16-Responsiveness by big supplier/manufacturer:

S. No.	Per. of less response	Per. of below   response	Per. of       average response	Per. of above-average response	Per. of more response
1	09	0	31	45	15

Table 1.2.6

In this paper, 45% of retailers have above-average responses, 15% have more responses, 31% have an average response, 09% have fewer responses and 0% have below responses from their big supplier or manufacturer. Most retailers have better relationships with their manufacturers or supplier. The main reason for this is that retailers provide more profit to their suppliers.

Findings and Conclusions

This research paper highlights that in the Prayagraj market out of 100 respondents 93 percent of business intermediaries wholesalers, retailers, or both are registered.77 percent of intermediaries deal with agricultural items whereas, 13 percent of intermediaries deal with allied agricultural items, and 10 percent deal in both. There is 61 percent of business intermediaries use trucks while 39 percent uses private vehicles for their transportation facilities. There is 64 percent of intermediaries do not have their own warehouse facility and 36 percent have their own warehouse in these markets of the Prayagraj region. There is less government support in terms of financial aid i.e.36%.72% agreed below government help, 27% support less government help and 11% support average government help, 0% support above government help, and 0% support more government help .100% of retailers or wholesalers supports that there would be no any training and skill development programs provided by the government to them .92% intermediaries have GST number and other 08% do not have GST number. Most of the retailers says that 40% of customer or consumer are averagely satisfied,25% have above average satisfied,18% supports of more satisfied and 17% supports  less satisfied. 45% of respondents or Wholesalers agrees above average response from their big supplier/manufacturer.31% of retailers or wholesalers or both have an average response, 15% have more response and only 09% retailers or Wholesalers have less response from their big suppliers or manufacturer. Hence, maximum wholesalers or retailers have above-average responses from their big suppliers/manufacturers. As hypothesis is concerned, Ho (Null hypothesis) is rejected. Hence, H1 is accepted, thus there is a significant difference between the rated importance of the variables of intermediaries of agricultural products. Hence, it is important to concentrate on the situation of intermediaries of agricultural products to increase agricultural income.

Limitations of the Study

Limitations regarding this research paper are as follows:-

1-The above research study covers only three rural markets of Prayagraj region.

2-This research study does not cover other rural markets of Uttar Pradesh that accept Prayagraj.

3-There is the limitation to the markets i.e. the sample size of the market is 100.

 Recommendations: The recommendations regarding government are as follows-

1-The government should provide proper training and skill development programs to the retailers wholesalers or both in the rural market of the Prayagraj region. As a result, wholesalers or retailers do their business more efficiently and effectively.

2-There should be flexibility to provide loans in case of any loss. The process should not be more complex, it should be simple so that the retailers or distributors easily accomplish it.

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