by Agricultural marketing refers to the process of buying, selling, and distributing agricultural products. It involves a range of activities, such as transportation, storage, grading, processing, and packaging, that help to bring agricultural products from the farm to the final consumer.
In India, agricultural marketing is largely governed by the Agricultural Produce Marketing Committee (APMC) Act, which regulates the marketing of agricultural produce and the functioning of the market committees in each state. The APMC Act provides for the establishment of regulated markets or mandis, where farmers can sell their produce to traders or intermediaries.
The agricultural marketing system in India is characterized by a number of challenges and issues, including:
- Lack of price transparency: The prices of agricultural commodities are often not transparent or easily available to farmers, which makes it difficult for them to negotiate prices and obtain fair value for their products.
- Fragmented market structure: The market structure for agricultural products in India is highly fragmented, with numerous intermediaries and middlemen involved in the supply chain. This results in higher transaction costs and lower prices for farmers.
- Poor infrastructure: The lack of proper infrastructure, such as storage facilities, transportation networks, and cold chains, leads to post-harvest losses and lower prices for farmers.
- Inefficient marketing practices: The marketing practices in the agricultural sector are often inefficient, with inadequate grading, sorting, and packaging facilities. This results in lower prices for farmers and higher prices for consumers.
- Lack of market access: Many farmers in India lack access to markets and are forced to sell their products to local traders or intermediaries at low prices.
Government Measures to Improve Agriculture Marketing
The government has taken several measures to improve the agricultural marketing system in India. Some of the key initiatives include:
- E-NAM: The National Agriculture Market (e-NAM) is an electronic trading platform that aims to provide a single online market for agricultural commodities across the country. E-NAM facilitates transparent price discovery and enables farmers to sell their produce to buyers located in other states.
- Market Reforms: The government has introduced reforms in the agricultural marketing system by amending the APMC Act to allow for private markets, direct marketing, contract farming, and online trading.
- Infrastructure Development: The government has focused on improving the infrastructure for agricultural marketing, such as the development of cold storage facilities, grading and sorting facilities, and transport networks. The government has also launched a scheme to provide financial assistance to states for the development of agricultural marketing infrastructure.
- Farmer Producer Organizations (FPOs): The government has encouraged the formation of FPOs to help farmers in collective marketing of their produce. FPOs help farmers access markets, negotiate prices, and reduce the role of intermediaries in the supply chain.
- Price Support Mechanisms: The government has introduced various price support mechanisms, such as Minimum Support Price (MSP) and Market Intervention Scheme (MIS), to provide a safety net to farmers in case of price volatility.
- Agricultural Export Policy: The government has launched an Agricultural Export Policy to boost exports of agricultural products and enhance the competitiveness of Indian agriculture in the global market. The policy focuses on promoting value-added agricultural exports, creating infrastructure for export-oriented production, and streamlining export procedures.
- Kisan Credit Card: The government has introduced the Kisan Credit Card scheme to provide affordable credit to farmers for various agricultural activities, including marketing. The scheme enables farmers to access credit easily and at a reasonable cost, which helps them in marketing their produce.
Three policy measures adopted by the government of India to improve the system of agricultural marketing.
The government of India has adopted several policy measures to improve the system of agricultural marketing in the country. Three of the most important policy measures are:
- Agricultural Produce Market Committee (APMC) Reforms: The government has amended the APMC Act to allow for private markets, direct marketing, contract farming, and online trading. This has led to the creation of a more competitive market environment and has given farmers the freedom to sell their produce directly to buyers without going through intermediaries.
- National Agriculture Market (e-NAM): The National Agriculture Market is an online trading platform that facilitates transparent price discovery and enables farmers to sell their produce to buyers located in other states. The e-NAM platform provides a single market for agricultural commodities across the country, making it easier for farmers to access markets and get better prices for their produce.
- Farmer Producer Organizations (FPOs): The government has encouraged the formation of FPOs to help farmers in collective marketing of their produce. FPOs help farmers access markets, negotiate prices, and reduce the role of intermediaries in the supply chain. The government has also provided financial assistance to FPOs for their capacity building and other activities.
