Livestock markets suffer from neglect

Published September 19, 2005

THE livestock is an important source of livelihood for about 35 million people with an average holding of 2-3 cattle/buffalo and 5-6 sheep/goat per family which fetches them 30-40 per cent of their income. The livestock includes cattle, buffalos, sheep, goats, camels, horses, asses and mules.

Marketing and production are inter-dependent. Efficient marketing promotes production and efficient production attracts buyers. In Punjab, the marketing of livestock and its products is dominated by the private sector. But the Marketing Act of 1978 is not implemented in letter and spirit.

The livestock is either traded at village level or in urban markets. Both small and large ruminants are bought and sold in the same market. However at some places, buffalo, cattle, sheep and goats are traded separately. At some places (bakkar mandi), only small ruminants are found.

Smaller or primary markets are present in the rural interior and generally held at some fixed day, whereas, the larger or secondary markets are organized near the urban centres or on the main roads. Both buyers and sellers are well informed about these operations.

Farmers and different types of “beoparies” bring their livestock in these markets. In villages, the farmers according to the need choose appropriate time, place and agency for the sale of animals. In addition, some special livestock markets are also organized on provincial/regional levels.

The daily-based special markets are also organized at least 2-3 weeks before the eve of Eid-ul-Azha. The majority of markets come under the control of local administration. Local administration provides special places for the animals and the management responsibilities of livestock markets are contracted out on annual basis through open auctions.

It has been observed that the livestock markets are continuously contracted out to the same contractor for five years. Depending upon the type, size of the market and the number of animals brought, contractual amount varies depending upon the business. The district administration is responsible to provide facilities to the market agents. The contractors charge commission from the buyers and sellers of animals. The local administration fixes the amount/percentage of the commission. In Punjab, 3-5 per cent of the value of animal sold is charged as marketing charges.

Transportation of animals to the livestock markets is generally carried out by foot which is more common in primary markets where animals are brought from the nearby villages. Animals purchased from primary markets are mainly transported by trucks. Other means include vans, pickups, trolleys and mini-trucks. Major problems associated with the transportation include overloading, injuries to animals, exertion and feeding during the journey.

The livestock markets are poorly organized, inefficiently controlled, and conventional. Majority lack in basic infrastructure like the boundaries, electricity, proper loading and unloading places, sanitation, parking facilities, animal watering, shelter, health, weighing, telephone and communication, easy and affordable transport.

Likewise, there are malpractices in the absence of information system. The existing system is full of imperfections which need to be rectified on priority. Leasing out the markets to private sector should be fair and transparent. The private sector should be encouraged to develop markets with basic facilities.

There is also a need to establish market regulatory agency with legal coverage to monitor the working of livestock markets.

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