Agricultural Marketing In India

Kamal SinghLecturer in Economics

GCCBA 42 , Chandigarh

04/19/23 1Agricultural Marketing

The National Commission on Agriculture defined agricultural marketing as a process which starts with a decision to produce a saleable farm commodity and it involves all aspects of market structure of system, both functional and institutional, based on technical and economic considerations and includes pre and post- harvest operations, assembling, grading, storage, transportation and distribution.

The Indian council of Agricultural Research defined involvement of three important functions, namely (a) assembling (concentration) (b) preparation for consumption (processing) and (c) distribution.

04/19/23 2Agricultural Marketing

Agricultural marketing can be defined as the commercial functions involved in transferring agricultural products consisting of farm, horticultural and other allied products from producer to consumer.

Agricultural marketing also reflect another dimension from supply of produce from rural to rural and rural to urban and from rural to industrial consumers.

04/19/23 3Agricultural Marketing

Need

• The Ensure proper availability of consumer products

• To ensure proper price spread• Ensure adequate marketable surplus

04/19/23 4Agricultural Marketing

Prerequisite of efficient agricultural marketing

• Storage facility• Capacity to hoard• Transportation facility• Adequate information• Less intermediaries• Regulated markets• Good quality of produce

04/19/23 5Agricultural Marketing

Present system of Marketing

• Primary market• Secondary market like mandi’s• Fairs• Regulated markets• Cooperative and state trading

04/19/23 6Agricultural Marketing

Problems

• Inadequate transportation facilities• Malpractices in Mandis• Lack of credit• Lack of market Information• Unregulated weights and measures• Lack of standardization and grading

04/19/23 7Agricultural Marketing

• Excessive market charges• Lack of storage facility• Adulteration• Unfavorable condition

04/19/23 8Agricultural Marketing

Govt. Measure

• Organization of regulated markets• Grading and standardization: Agri product

(produce and marketing act) 1937 and standard weight act 1939.

• Godowns and Storage• The model act for state agricultural produce

marketing

04/19/23 9Agricultural Marketing

• E-chaupal• Cooperative marketing : NAFED( national agricultural

cooperative marketing federation set up in 1964.• Price support : MSP for 24 crops• Provide loans to the farmer at low rate of interest so that they

will be freed from the clutches of local moneylenders who squeeze them. It is said that farmer in born into debt, lives in debt and dies in debt.

• It is essential to provide subsidized power supply and loans to the farmers as the expenses towards power consumption takes considerable amount of investments.

04/19/23 10Agricultural Marketing

Creating local outlets at each village where the farmers sell their stocks directly to the consumers or the authorized buyers at fixed prices would help to a great extent. Intervention of government in this network is essential to bring the fruits to the farmers.

04/19/23 11Agricultural Marketing

Budget 2011-12 and Economic survey

• Process to create new storage facility / capacity of 150 lakh metric tones

• Decision to create 20 lakh metric tones of storage capacity under Public entrepreneur Guarantee

04/19/23 12Agricultural Marketing

• Reforms in APMC act 2010• Setting up of terminals markets complexes for

fruits , vegetables and other perishable goods at important urban centre

04/19/23 13Agricultural Marketing

THANKS

04/19/23 14Agricultural Marketing