11/27/21, 7:35 AM Agricultural marketing in India: challenges and suggestions [Mains Article]

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Context
What is Agricultural marketing?

Various marketing methods

IASToppers'
Issues of current Agricultural marketing in India Community
Ask your queries
Efforts of govt. or

answer others'
How significant are recent three farm acts (i.e., significance and Queries

criticism of three acts) Join Now

Conclusion

Follow Us
What is Agricultural marketing?
Agricultural marketing comprises all operations involved in the
movement of farm produce from the producer to the ultimate
consumer. Calendar
Archive

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11/27/21, 7:35 AM Agricultural marketing in India: challenges and suggestions [Mains Article]

It includes the operations such as collecting, grading, processing,

d
preserving, transportation and financing.

The actors in product marketing include farmers, traders, wholesalers, Go

processors, importers, exporters, marketing cooperatives, regulated

market committees and retailers.
Motivation
Outcomes of Agriculture Marketing:

Monetising the Produce

Demand Signal Platform

All Time Top
Market growth
Contributors
Capital formation and investment in technology
Saloni
  Patel
0 Comments 806 Thank
Various marketing methods: -
View
Rural Primary markets: Profile Follow

Periodic markets or haats and fairs (melas, jatras) are the major rural
Pujan
markets in India.
Shukla
Rural Primary Markets include mainly the periodical markets known 19 Comments 661 Than

as haats, shandies, painths and fairs. View

Profile Follow
The producers sell their produce directly to the consumers or to
small rural retailers.
Shivansh
The Wholesale/Assembling Markets or the secondary markets numbering 9 Comments 250 Thank
6359 constitute the cardinal link in the market structure of the country
View
Cooperative Marketing: Profile Follow

The co-operative marketing is an alternative to private dealers with the

AkHil
main objective of securing a large share of profits for the producer.  100 Comments 102 Tha

The main objective of establishing a co-operative marketing are: View

Encourage the intelligent and orderly marketing of agricultural Profile Follow
produce.
Nishit
To eliminate speculation and waste.
Upadhyay
To make distribution of agricultural products between producer 55 Comments 139 Than

and consumer as direct as can be efficiently done. View

Profile Follow
To stabilize the marketing of agricultural productions.

Contract Farming:

Contract farming can be defined as agricultural production carried out Top

according to an agreement between a buyer and farmers, which Contributors
establishes conditions for the production and marketing of a farm This Week
product or products.

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11/27/21, 7:35 AM Agricultural marketing in India: challenges and suggestions [Mains Article]

Typically, the farmer agrees to provide agreed quantities of a Saloni

specific agricultural product.  Patel
0 Comments 26 Thanks

View
Profile Follow

Mitul J
0 Comments 2 Thanks

View
Profile Follow
Commodity Market:

Commodity Market is about trading of precious metals, energy, oil, Kunal

spices & so on.
Haritas
0 Comments 0 Thanks
There are three commodity markets in India: View
Profile Follow
National Commodity & Derivative Exchange.

Multi Commodity Exchange (largest commodity futures exchange in SHIVUKUMAR

India). JK
0 Comments 0 Thanks
National Multi Commodity Exchange of India.
View
Future Market: Profile Follow

Derivatives are financial instruments with a price that is dependent

upon or derived from one or more underlying assets. Pavitharan
K
In futures contract buyer has the obligation to purchase a specific 0 Comments 0 Thanks
asset, and the seller has to sell and deliver that asset at a specific View
future date. Profile Follow

Agri-futures markets are considered to be one of the ways to ensure

appropriate farm prices.

  Latest
Achievers
Issues of current Agricultural marketing in India
prabhu
Too many middlemen: nath has
earned
Presence of too many middlemen result in higher cost of marketing Trophy
of agriculture produce.
prabhu
The customer ends up paying high amount whereas the producer nath has
hardly receives adequate renumeration for his efforts. earned
11580
As per a a study the share of middlemen in case of rice was 31 per Coins
cent, in case of vegetable was 29.5 per cent and in case of fruits was
46.5 per cent. Kunal has
earned
Lack of storage facilities in markets: Trophy

Kunal has
There is no proper storage or warehousing facilities for farmers in
earned
the villages where they can store their agriculture produce. 
11015

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11/27/21, 7:35 AM Agricultural marketing in India: challenges and suggestions [Mains Article]

Thus causing farmers to sell their surplus produce at very low and Coins
un-remunerative price.
Shiva has
earned
Inadequate Transportation facilities:
Trophy
Poor road transportation facilities and links in rural areas affect Shiva has
movement of agriculture produce. earned
10120
Indian farmers cannot reach nearby mandis to sell their produce at a
Coins
fair price.
Pujan has
Lack of Institutional Financing: earned
Trophy
Inadequate availability of institutional finance, causes farmers to
acquire credit from non-institutional sources such as moneylenders Pujan has
etc. earned
10000
These put unfavorable terms on farmers, causing them to be on a Coins
permanent debt trap.
Sneha has
Absence of grading and standardisation: earned
Trophy
Lack of knowledge of grading affects Indian farmers to fetch good price
Sneha has
Indian farmers.
earned
Absence of market information: 7730 Coins

There is absence of market intelligence or information system in India.

Indian farmers are not aware of the ruling prices of their produce
Recent Posts
prevailing in big markets.

Unregulated local markets:

AkHil
Prevalence of false weights and measures and lack of grading and
Inclusive growth as en
standardization of products in village markets in India is affecting fair nciated in the 11th fiv
and transparent business. year plan doesnot inc
de one of the followin
Adulteration of Commercial Crops: ?

Adulteration i.e., mixing of inferior produce freely with superior 0 1

replies upvotes
produce is very common.

Barley and other grains are mixed with wheat. Stones and pebbles are AkHil
mixed with rice and other grains. what is dark web ? i
it synonymous with
Adulteration in cash crops and food-crops has assumed eep web ? mention m
tremendous proportion in India. erits & demerits of d
rk web and the plan
f action needed to d
 
al with the threats p
sed by it.
Efforts of govt.
#GS3

Government has taken many steps to improve agriculture #CyberSecurity

marketing: 0 1
replies upvotes
Agricultural Produce Market Committee (APMC):
Prince Patel

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11/27/21, 7:35 AM Agricultural marketing in India: challenges and suggestions [Mains Article]

An APMC is a marketing board established by a state government Hey Friends,

in India to ensure: let's disucuss on heal

sector and india.
Farmers are safeguarded from exploitation by large retailers, 1 1
replies upvotes
The farm to retail price spread does not reach excessively high levels.
Prince Patel
National Agricultural Cooperative Marketing Federation of India Ltd
(NAFED): @IASToppers
Respected authorities
NAFED is an apex organization of marketing cooperatives for I want to just know tha
agricultural produce in India when february 2021 m
onthly magazine will b
NAFED is the nodal agency to implement price stabilization release?
measures under "Operation Greens" which aims to double the
0 1
farmers' income by 2022. replies upvotes

AGARMARKNET vaibhav desai

The AGMARKNET is a G2C e-governance portal. ias toppers test seri
s are good?
It caters to the needs of various stakeholders such as farmers,
0 0
industry, policy makers and academic institutions by providing replies upvotes
agricultural marketing related information from a single window.

Kisan Rail:
Recent
Kisan Rails are multi commodity trains consisting of refrigerated
Comments
coaches to swiftly transport perishable agriculture products from
supply centers to demand centers.

Nishit
Upadhyay
1 week ag
o

Good one

AkHil
1 week ag
o
good anal
ysis

AkHil
2 weeks a
go

Explanatio
n was goo
d

AkHil
2 weeks a
go

Schemes:
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11/27/21, 7:35 AM Agricultural marketing in India: challenges and suggestions [Mains Article]

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PMAASHA):  increase t

he number
PM-AASHA was launched to ensure adequate prices to farm produce. of flash ca
It was launched in 2018. It had 3 components rds

Price Support Scheme (PSS) AkHil

Price Deficiency Payment Scheme (PDPS) 2 weeks a
go
Private Procurement & Stockist Scheme (PDPS).
helpful
Pradhan Mantri Fasal Bima Yojana (PMFBY): 

PMFBY was introduced to provide better insurance coverage for

agricultural crops. Community
Categories
E-NAM: 

National Agriculture Market (eNAM) is pan-India electronic trading

IT
portal linking existing APMC mandis to create a unified national
Official
market for agricultural commodities.

Storage: Verified
Contributor
Government has taken numerous steps to construct warehouses
across countries. It has also involved Co-operative Societies in doing
Economy
so.
History
Commodity Boards:

Commodity Boards were setup to operate for rubber, coffee, tea,

tobacco, spices, coconut, oilseed and vegetable oils, horticulture
etc.

The National Dairy Development Board is also engaged in the

marketing of agricultural commodities.

How significant are recent three farm acts (i.e.,

significance and criticism of three acts)

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11/27/21, 7:35 AM Agricultural marketing in India: challenges and suggestions [Mains Article]

3. The Essential Commodities Act (Amendment): 

It empowers the Central government to regulate food items in

extraordinary circumstances or impose stock limits if there is a steep
price rise.

Opposition:

Till now only farmers, farmer cooperatives and Farmer Producer

Organisations (FPO) didn’t have any limit or restriction for
stocking, producing or selling their crop.
As a result, they take conscious decision of selling their crops only
when the market is offering good price for the crop. So, under
this, the farmers are not getting any new freedom.

Through this Amendment the government is giving up its power to

prevent hoarding and controlling price inflation.

According to the law, government can intervene only if there is 50%

price rise over previous year’s price in case of non-perishable goods
and 100% price rise over previous year’s perishable goods.

Suggestions
Steps need to be taken to eliminate middlemen are required.

Provide easy finance facility for farmers to deal with the problem of
moneylenders.

Build adequate warehousing and storage facilities.

Legislative actions to regulate markets and remove the influence of

middlemen on farmers.

Take steps to improve transportation connectivity such as roads,

railways, waterways etc.

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11/27/21, 7:35 AM Agricultural marketing in India: challenges and suggestions [Mains Article]

Steps to pass pricing information about agriculture commodities

on a daily basis through a wide range of information dissemination
sources.

Carrying out Land Reforms to plug in loopholes in existing land

legislations.

Conclusion:
All produce - every grain; every ounce; every drop - from agriculture sector
must find gainful end-use. Demand-driven production of agricultural
produce, rather than production-propelled marketing, is the need of the day
now.

India is one of the largest markets for agricultural produce and markets
need to function as a unified platform to make all consumers accessible to
all the farmers in the country.

Additional Information:

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Shivansh- Nov 17, 2020 11:09 PM 

Good one

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