Remedial Measures:

For all the above defects of India’s agricultural marketing system the farmer does not get a fair
deal from the market. However, his condition can be improved by removing the defects. The
following measures may be taken to improve the present system of agricultural marketing in
India:
1) Market Surveys: Various surveys have been conducted and published by the Government for
various goods, and Problems with remedies suggested. Wide publication of the price of different
Agricultural goods in different markets is collected through the market survey.
2) Development and Strengthening of Grading and Standardization System : Setting up of
Grading stations under Agricultural Produce (Grading and Marketing) Act, 1937 for products
like ghee, flour, eggs, etc. Laying down of standards for 162 Agricultural and allied products.
Assigning ‘AGMARK’ to the graded products which ensure good quality and also command a
better price in the market. Setting up of central quality control laboratory at Nagpur along with
eleven regional laboratories for testing of products applying for ‘AGMARK’. So far 108 rules
for Agricultural commodities have been framed.
3) Setting up of Regulated Markets and Strengthening Agricultural Marketing System: The
regulated markets are set up to eliminate unhealthy market practices and protect the interests of
the farmers. Agriculture is a state subject, a model APMC Act was formulated and circulated to
the states/UT’s in the year 2003 for adoption. There are 7,114 regulated markets in India as on
31-03-2014 that caters to need of approximately 80% Agricultural products. The Central Sector
Scheme launched on 20-10-2014 under which credit-linked investment subsidy is provided for
general or commodity-specific marketing infrastructure for Agricultural and allied commodities.
The scheme is linked to implementing 3 reforms namely:
-Setting up markets in a Private and Co-operative sector.
-Provision for contract farming.
-Provision for direct marketing.
It is being implemented in those States /UT’s which has amended its APMC Act accordingly.
4) Strengthening the provision of storage and warehousing facility: Necessary to prevent
wastage and distress sale of farmers it is highly necessary. Hence, Central Warehousing
Corporation was set up in 1957 with the purpose of constructing and running godowns and
warehouses. States have also set up warehousing corporations for the same purpose. The FCI has
its own network of storage facilities. The launch of ‘Grameen Bhandaran Yojana’ (Rural
Godown Scheme) 01-04-2001 with the main objective of creating scientific storage capacity with
allied facilities in rural areas.
5) The Organization of the Co-operative Marketing System: These are multi-purpose
organizations with an emphasis on credit and marketing. Primary promoting societies are
inspired to make societies at State and apex level National Agricultural promoting Federation

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(NAFED) and National Climatic Data Center. Large financial and other support has been
provided by the Government.
6) Setting up of Special Boards and Organisations: The Central Government has set up a
number of such boards for unique commodities like Rice, Pulses, Millets, Oilseeds, Sugarcane,
Jute, Cotton, Tobacco, and so forth. Directorate of Marketing and Inspection (DMI) at Faridabad
for the promotion of standards and grading of Agricultural and allied produce. Ch.Charan Singh
National Institute of Agricultural Marketing (NIAM), Jaipur for providing training in the field of
Agricultural Marketing. Small Farmers Agricultural – Business Consortium (SFAC), New Delhi
for promoting Agricultural business for small and marginal farmers.
7) Marketing Research and Information Network (MRIN) Scheme: An ICT based Central
Sector Scheme of Marketing Research and Information Network (AGMARKNET) was launched
in March 2000. Aimed to provide electronic connectivity to important wholesale markets in the
country. Information relating to prices, the arrival of commodities, and other market-related
information is provided on the portal. More than 3,200 markets are covered under the scheme.
8) Appointment of Inter-Ministerial Task Force on Agricultural Marketing Reforms: It
aims at the Promotion of direct marketing and contract farming, development of Agricultural
Markets in Private and Co-operative Sectors, expansion of future trading to cover Agricultural
products, Introduction of negotiable warehousing receipts system, use of Information
Technology.
9)Setting up of Agri-Business & Information Centres: These centres are being set up at all
district headquarter mandis to provide information on market, agronomic practices and organise
seminars, workshops, buyer-seller meets etc. These centres also house the Agricultural
Development Officers and provide regular training to farmers and help in improving the quality
of the agricultural products. Two such centres have already been made functional at Sirsa and
Hisar and it is proposed to set up centers in all district headquarters.
10) Setting up of Farmers Markets: In order to provide opportunity to the farmers for selling
their produce directly to the consumers and realize better prices for the farmers, two farmers
markets at Panchkula and Gurgaon are being set up. These farmers’ markets will also be a nodal
point for dissemination of information and providing technical inputs and know-how to the
farmers in collaboration with the experts in agriculture/horticulture. It will also help the farmers
to add value to their produce by introducing quality controls and certification measures.
11) Contract Farming: Necessary amendments have been made in the Punjab Agricultural
Produce Markets Act, 1961 to introduce contract farming. Setting up of New Modern Fruit and
12) Vegetable Markets: New Fruit and Vegetable Markets will be set up at each district
headquarter in a phased manner which will provide separate retail and wholesale sections. Such
markets will have modern facilities for the convenience of users and better systems for
information and quality upgradation of products of farmers. These markets will have storage
facility and cooling chambers.

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 13)Creation 0f Commercial, Research & Training and Quality Control Divisions at the
headquarters: These divisions will provide training on marketing, post-harvest management of
crop, organize buyer-seller meets, and promote contract between bulk buyers and farmers.
14)Setting up of a Modern Terminal Fruit & Vegetable Market at Rai : A major initiative
has been taken for setting up of an Ultra Modern Terminal Market for Fruits and Vegetables at
Rai, with the help of Government of India at the estimated cost of Rs.65.00 crores, which will
have capability of more than 1000 MT per day. This market will cater to registered bulk buyers
and exporters and will have electronic grading-sorting lines, cooling chambers and electronic
bidding systems. The model also envisages setting up of collection centres in selected villages in
a catchment area of 50 kms. in the 1st phase. These collection centres will provide all facilities of
grading & sorting, information, banks and insurance to the farmers.
(a) Regulated Markets: Regulated markets may be established with a view to eliminating un-
healthy and unethical trade practices and reducing various marketing charges with a view to
benefitting the poor cultivator. Quite recently, numerous regulated markets have been set up in
various States to safeguard the interest of the farmers.
(b) Expansion of Market Yards: This is a vital necessity. This must be supported by a corre-
sponding expansion of ancillary facilities in the various existing markets and setting up new mar-
kets and market yards for handling the phenomenal increase in market arrivals, particularly in
those areas where the Green Revolution has occurred (viz., Punjab, Haryana and western U.P.).
(c) Cooperative Marketing Societies:
Here is need to set up such societies. Some progress has been achieved in this direction. In
India, the cooperative marketing structure consisted of more than 7,000 co-operative marketing
societies during 1999-00, covering all important agricultural markets in the country. The total
value of agricultural produce marketed by co-operatives amounted to Rs. 22,500 crores in 1999-
00, as against Rs. 169 crores in 1960-61.
(d) Storage Facilities:
An extension of storage facilities at the farm land and Storage and Warehousing Corporation,
with a view to constructing and managing a. whole network of warehouses in all towns and
mandis. The co-operative societies get necessary financial and. technical assistance from the
Government for promoting warehouses in villages.
Moreover, the National Co-operative Development Corporation has been set up for planning,
promoting and financing the programme of augmenting storage capacity of co-operatives at vari-
ous levels. The storage capacity of 150 lakh tones had already been constructed in the co-
operative sector by the end of March 2000 as against a capacity of 8 lakh tones in 1960-61.
(e) Credit:
Steps may be taken to provide cheap credit to farmers, especially from institutional sources like
commercial banks and co-operatives. Co-operative societies are providing credit facilities to
farmers with a view to improving their economic conditions, protecting them from the

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exploitative practices of village moneylenders and for helping them to get reasonable prices for
their produce.
(f) Transport Facilities:
Expansion of transport facilities between the villages and mandis seems to be the need of the
hour. Rural transport has been given emphasis in the five year plans and quite some progress has
been made in this direction.
(g) Other Measures:
Various other measures taken include Prompt supply of market information through published
documents and T.V. programmes, standardisation and grading to ensure quality to consumers
and better prices to producers.

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