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Agriculture, the sector engaging about 70 of the Indian population, is provedto have a great impact over India’s overall economic performance. This is inspite of its reduced contribution towards the GDP from 60% to 25%. Recenttrends clearly indicate that agriculture is getting highly commercialized andis going through rational changes globally, mainly due to the liberalization of the trade in agricultural commodities. To benefit the Indian farmers, theagriculture system in the country should be totally revitalized. Followingchanges need to be incorporated
Smooth channels for transfer of commodities
Physical infrastructure for marketing activities
Cash support to commodity producersEven though the reaping, harvesting and storing of crops is seasonal, theconsumption of the commodities is perpetual, as well as variable in nature.The market value of the commodities is the lowest at the time of harvesting, primarily due to an abundant supply. Also, the consumption requirement is periodic, and not in a bulk at a time. This naturally gives a rise to need of storing the commodities, thus giving a way to requirement of strong storagefacilities for the producers, in order to hold a portion of the produce. Thiswould facilitate him to meet his requirements such as fertilizers, seed, etc. byselling the stored surplus commodities in the market, whenever the market price is favourable. A need for storage facilities also comes into picture whenthere is an inadequacy or unavailability of the transport facilities.