Agriculture Marketing in India

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Agriculture Marketing in

India
By
Kamal Singh
Lecturer in Economics
GCCBA 42 , Chandigarh
Agriculture Marketing imply movement of food from
plough to plate.
National Commission on Agriculture”, define agriculture
marketing as a process which starts with the decision to
produce a saleable farm commodity and it involve all aspects
of market structure of system. Both functional and economic
considerations and include pre and post harvest operations ,
assembling, grading, storage , transportation and distribution.
Present state of agricultural marketing in
India
Farmers sell their surplus to moneylenders
According to an estimate 85% of wheat, 75 5 of oil
seeds in U.P; 90% of jute in west Bengal and 60% of
wheat , 70 % of oil seed and 35% of cotton in Punjab
are sold by the farmers in the villages themselves
He may sell the surplus in the Hats and the shanties
( village markets held at longer interval or on special
occasion)
Via mandies also. But they are several mile away so
they have to make special efforts to sell their produce
one method is via “Arhatiyas”

He may also use Cooperative marketing societies .


Defects
Lack of proper and sufficient storage facilities
He is poor and indebted so he indulge in distress sale
Lack of proper gradation so heap of all quantities are
sold at one lot so it demoralizes producer to use better
seed etc.
Lack of proper transport facilities
Vast chain of middlemen, a study show that farmer
obtain only about 53 % of the price of rice, 31% being
the share of middlemen and remaining 16% marketing
cost.
Exploitation by arhtiyas different charges Tulaii ,
palledari ( to unload the bullock cart) and number of
undefined and unspecified charges
Farmers do not get proper knowledge about the prices
in the market
Steps by government
The central warehousing corporation set up in 1975 for running
godown and warehousing for the storage of agricultural produce

Market survey
Availability of credit
Future trading: the resumption of future trading in gur, potato,
castor seed etc
Grading and standardization : the agricultural produce act was
passed in 1937 under which graded goods are issued certificate of
grades goods with such grade are listed as “ AGMARK”. A central
quality control laboratory in nagpur and 8 other regional
laboratory for testing the quality and purity of agriculture goods .
Organization of regulated markets
Regulated markets are organized with the view to
protect the farmers from the malpractices of sellers
and brokers.
They fixes the charges for weighing , brokerage etc.
Prevention of unauthorized deduction, wrong
practices by Arhatiyas.
Providing up to date and reliable market information.
In 1950-51 the number of regulated markets was only
286 , their number rose to 7,521 as on march 31 , 2005.
Dissemination of market information
Prices in important markets are broadcast daily by the
AIR, trends on market prices are reviewed weekly in
special programmes and talks organized by the A.I.R.
and doordarshan .
Newspaper also publish agricultural prices either daily
or weekly accompanied by short review of trends.
Govt. purchases and fixation of support
prices
MSP and procurement prices for various agricultural
commodities.
Prices are fixed by commission for agricultural costs
and prices.
FCI purchases from farmers and sell via PDS
National institute for agricultural marketing
Established in 1988
To augment marketing infrastructure of the country
through programmes of teaching, research and
consultancy services.
Undertake research to demonstrate and replicate
better management techniques in the field of
agriculture marketing
To offer educational programmes in agricultural
marketing for supplementing the existing facilities.
Cooperative marketing
Organization of multi purpose cooperative societies
with emphasis on credit and marketing.
The national agricultural cooperative marketing
federation of India Ltd (NAFED) is the apex
cooperative organization at the national level; it deals
in procurement, distribution, export and import of
selected agricultural commodities.
It also promote inter state and export trade of farm
produce.
Queries ?
THANKS

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