A micro analysis of fodder production and marketing in Bihar

Production of rice-wheat crop residues, the main dry fodders, is inadequate in north Bihar. In an unorganized fodder market, middlemen dictate the term of fodder trade. The fodder purchased in villages is mostly sold in urban and peri-urban areas. Fodder is processing at every level in marketing channel, particularly in fodder surplus region as paddy straw is purchased from farmers and sold after processing (chaff cutting). The wholesalers are generally engaged in storage of fodder. Farmers are getting only 35 % of consumers' price and 46 % of consumers' price is taken by middlemen as profit margin, which is much higher as compared to food grain marketing. Inadequate storage facilities and space sometimes force producers to untimely dispose of fodder produce. To promote fodder production and trade, it is necessary to improve storage systems - on-farm as well as en route to distant markets. Fodder markets are unorganized and informal and role of public sector/government is negligible. Fodder markets are mostly without any dedicated market place, and are often stationed along roadsides and without legal credentials. Having specific market places may facilitate flow of market information, increase interaction among buyers and sellers and facilitate transparency and competition leading to fairer prices mode.