Agricultural Marketing In India
Kamal Singh
Lecturer in Economics
GCCBA 42 , Chandigarh
4/13/2015
Agricultural Marketing
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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.
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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.
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Need
• The Ensure proper availability of consumer
products
• To ensure proper price spread
• Ensure adequate marketable surplus
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Prerequisite of efficient agricultural
marketing
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Storage facility
Capacity to hoard
Transportation facility
Adequate information
Less intermediaries
Regulated markets
Good quality of produce
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Present system of Marketing
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Primary market
Secondary market like mandi’s
Fairs
Regulated markets
Cooperative and state trading
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Problems
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Inadequate transportation facilities
Malpractices in Mandis
Lack of credit
Lack of market Information
Unregulated weights and measures
Lack of standardization and grading
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Excessive market charges
Lack of storage facility
Adulteration
Unfavorable condition
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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
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• 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.
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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.
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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
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• Reforms in APMC act 2010
• Setting up of terminals markets complexes for
fruits , vegetables and other perishable goods
at important urban centre
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THANKS
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