Marketing of Agricultural Produce in India

Agriculture marketing means delivering farm product from farmers to the final consumers.
According to The National Commission on Agriculture, it involves all aspects of market structure of
system, and includes pre- and post-harvest operations, assembling, grading, storage,
transportation and distribution
Therefore, agricultural market policies are treated as an integral part of development policies and
their functioning has remained an important part of public policy in India
There are many ways by which farmers can dispose their surplus produce. They are,

 Unofficials channels: Farmers may sell their produce to village money lender cum trader
or
 Local village hats (Fortnightly or monthly village markets)
 Official channel: Mandis or Wholesale markets in small or large towns. In mandi there
are brokers who help farmers to dispose their produce to wholesalers, they are
called Arhatiyas
 Cooperative Marketing Societies, which collects surplus from their members and sell to
mandi collectively. This improves the bargaining powers of members and they are able to
obtain better price. Example Anand Pattern cooperatives, Kerela Horticulture
development program

Emerging models of agricultural marketing

National Agriculture Market (eNAM), Commodity and Futures markets, Private sector
initiatives(ITC’s e choupal for tobacco, Farmer Producer Organizations (FPOs) and Contract
Farming

The present policy framework for intervention in agricultural markets and prices can be broadly
grouped under three categories –

(a) regulatory measures;

(b) market infrastructure and institutions; and

(c) agricultural price policy.

To provide fair deals to farmers and create a transparent marketing environment, all wholesale
markets for agricultural produce in states have adopted the Agricultural Produce Market
Regulation Act (APMRA) are termed as “regulated markets
Besides improving the way markets functioned, the Acts tried to create an environment that freed
producers-sellers from exploitation by traders and mercantile capital.
Agricultural Produce Market Regulation Act (APMRA)
 Under this system, a state is divided into several market areas or mandis each of which is
administered by a separate Agricultural Produce Marketing Committee (APMC) which
imposes its own marketing regulation
 It mandates that the sale/purchase of agricultural commodities notified under it are to be
carried out in specified market areas, yards or sub-yards. These markets are required to have
the proper infrastructure for sale of farmers’ produce
 Prices in them are to be determined by open auction, conducted in a transparent manner in
the presence of an official of the market committee
 Market charges for various agencies, such as commissions for commission agents (arhtiyas);
statutory charges, such as market fees and taxes; and produce-handling charges, such as for
cleaning of produce, and loading and unloading, are clearly defined, and no other deduction
can be made from the sale proceeds of farmers
 Market charges, costs, and taxes may vary across states and commodities

Old APMC act problems

 But Under State APMC Acts, the Indian farmers are required to buy and sell only in the
government-designated “Mandis” known as Agricultural Produce and Marketing Committees
(APMC)
 Farmers are not allowed to sell their produce directly to the consumers
 This monopoly of government-regulated mandis has prevented development of a
competitive agriculture marketing system in the country
 Multiple levy of mandi fees at various levels, for entry, registration etc in the name of
improving infrastructure
 But despite such levies, Mandis don’t have physical infrastructure, toilets, waiting rooms,
storage and processing facilities all of which which results in fruits/vegetables getting
damaged and contaminated due to flies and larvae
 nuisance of middlemen: The chain of middle men in agricultural marketing is so large that
share of farmers is reduced substantially. According to one study farmers obtain only about
53% of the price of rice. 31% of share goes to middlemen
 Double commission: Middlemen at Mandi charge commission on both seller (farmer) plus
buyer (the urban retailer / food processor). This increases the final price of product
 Middlemen resort to hoarding rather than passing the produce to retailers which increases
inflation and shortens the supply in open market
 No auction: The licensee traders and commission agents have formed informal cartels at
mandis. Even if auction is held, collectively these traders keep low bidding so farmer never
benefits
 Information asymmetry and non-transparent process of price discovery: for most
perishables’ fruits/vegetables, government doesn’t declare MSP, therefore farmers do no
the estimated price of their product. Hence farmers are completely dependent for price
discovery and on intermediaries
 Membership: State APMC Market Committees have 10-17 members. But in several States,
regular elections of APMCs are not held. As a result, APMC board are administrated by
bureaucrats. APMC bodies have lost democratic nature
 Resistance to Reform: Middlemen have rent-seekers mentality. They resist anything that’ll
increase transparency or reduce transaction cost and time

Because of all this, the Inter-Ministerial Task Force on Agricultural Marketing Reforms (2002)
recommended that the APMC Acts be amended to allow for direct marketing and the establishment
 of agricultural markets in the private and cooperative sectors. The rationale behind direct marketing
is that farmers should have the option to sell their produce directly to agribusiness firms, such as
processors or bulk buyers, at a lower transaction cost and in the quality/form required by the buyers
On the recommendation of the committee, the government had come up with a Model APMC Act in
2003 and recommended states to reform their own APMC Acts, since agri-marketing is under state
list

Model APMC Act, 2003

1. Under the model APMC Act, the private sector and cooperatives can be licensed to set up markets.
2. The model act also provides for contract farming and direct marketing by the private players.
3. Except for few states, all the States and UTs have either fully or partly adopted the model APMC Act.
4. As a result of the model act, the proportion of private trade and contract farming had increased
manifold in some part of the country.
5. However, The Model Act, so far, has not succeeded in persuading the private sector or
cooperatives to set up agricultural marketing infrastructure as an alternative to the state-owned
mandi system

Suggestions for APMC

 Encouraging contract and group farming through separate contract farming acts under
which the buyer can provide the farmer or Farmer Producer Organisation (FPO) access to
modern technology, quality inputs, other support and a guaranteed price
 Improving business climate through third party assaying and quality certification
mechanisms, dispute settlement mechanisms, systems for forwarding goods to buyers,
digital infrastructure to enable the national market
 Remove horticulture from APMC: States may exempt perishables from the APMC. Because
these Mandis are main causes for inflation and wastage of fruits and veggies
 Restructuring Essential Commodities Act: To provide exemptions to certain categories of
players such as exporters, food processors, multiple outlet retailers and large departmental
retailers from applicability of stock limits. Currently, tight stock limits in many states
discourage exports and development of vibrant domestic markets
 Improving Marketing Intelligence System to provide demand led decision making support
system Forecasting system for agricultural produce, supply and demand, and crop area
estimation to aid price stabilisation and risk management.
 Improving Procurement System: Government should broad base and strengthen
procurement operations to cover as many crops as possible (other than wheat & paddy) and
be secular across the production regions
States should also be encouraged to adopt Price deficiency payment schemes such
as Haryana’s Bhavantar Bharpai Yojna for vegetables in case of fluctuation in prices
 Investment in agri-logistics, starting with modern warehouses and cold storages
Upgrading Storage facility and expand their reach in hinterland to prevent post-harvest
losses and distress selling by Farmers. Govt should also promote negotiable warehousing
receipts (NWR) for farmers to avail of bank credit easily
 Encourage technology up gradation of existing facilities and investment in
development of ancillary industries like research and development, packaging,
food processing equipment manufacturing, food safety certifying agencies
  No License: Anyone should be allowed to trade in APMC market. Licensing system should be
abolished. The APMC Market Committee should only fix the transaction fee and keep a Bank
Guarantee from traders to ensure that the farmers’ payment is not affected
 Single point of Cess/Tax rather than the current multi layered taxes
 E-Auction: All APMCs Mandis should introduce electronic auction platform
 Centre has unveiled a draft model law, Agricultural Produce and Livestock Marketing
(Promotion and Facilitating) Act (APLM), 2017 to replace the Agriculture Produce Markets
Committee Act, 2003
 Adopt e-National Agriculture market NAM which removes intermediaries and allows
farmers to capture a greater share of the price paid by the final consumer on lines of milk
wherein farmers get more than 75% of what consumers pay.
 Change in mindset: Participants across the agri value- chain need to shift their focus
from trying to market ‘what is produced' to producing ‘processable varieties and
marketable products' meeting global quality standards and traceability requirement
 Human resource development: efforts for development of specialized institutes and
courses for providing training on managerial, safety and enforcements, technology
and production, warehousing and distribution aspects
 Encourage State Agricultural Universities to commence courses in food packaging,
processing, bio-technology, information technology in agriculture and such allied
fields

National Agricultural Market

NAM is a pan India electronic trading portal which networks the existing APMC mandis to create a
unified national market for agri-commodities
NAM portal provides a single window service for all APMC related information and services
eNAM if implemented will break the trade cartels in APMCs and enable sustainable price discovery
It will bring all basic infrastructures, including assaying and grading machines as these are absolute
necessities in an online market where two parties from different corners of state participate.
While material flow continues to happen through mandis, an online market reduces transaction
cost and removes information asymmetry between buyers and sellers
It enables real time price discovery on actual demand and supply and promotes transparency in
auction process

Need for NAM

 But Under State APMC Acts, the Indian farmers are required to buy and sell only in the
government-designated “Mandis” known as Agricultural Produce and Marketing Committees
(APMC)
 Farmers are not allowed to sell their produce directly to the consumers
 This monopoly of government-regulated mandis has prevented development of a
competitive agriculture marketing system in the country
 nuisance of middlemen: The chain of middle men in agricultural marketing is so large that
share of farmers is reduced substantially. According to one study farmers obtain only about
53% of the price of rice. 31% of share goes to middlemen
 Double commission: Middlemen at Mandi charge commission on both seller (farmer) plus
buyer (the urban retailer / food processor). This increases the final price of product
  Middlemen resort to hoarding rather than passing the produce to retailers which increases
inflation and shortens the supply in open market
 No auction: The licensee traders and commission agents have formed informal cartels at
mandis. Even if auction is held, collectively these traders keep low bidding so farmer never
benefits
 Information asymmetry and non-transparent process of price discovery: for most
perishables’ fruits/vegetables, government doesn’t declare MSP, therefore farmers do no
the estimated price of their product. Hence farmers are completely dependent for price
discovery and on intermediaries.
 Therefore, Economic survey 2014 mentioned about creating a national market by using
powers under the Union List and the Concurrent List of the Seventh Schedule of the
Constitution to amend the APMC

Objectives/benefits of e-NAM
 Reduced role of intermediaries: farmers and traders will enjoy freedom of choice of sale and
purchase of agri-produce. For example, a turmeric farmer now could sell her produce to
BigBasket in Delhi, without any mandi tax or trader commission, at a mutually agreed upon
price
 To integrate markets first at the level of the States and eventually across the country
through a common online market platform, to facilitate pan – India trade in agricultural
commodities. It will advance the idea of ‘one Nation, one Agri-market
 To promote better marketing opportunities for farmers through online access to more
buyers, removal of information asymmetry between farmer and trader
 better and real-time price discovery based on actual demand and supply of
agricultural commodities, transparency in auction process, prices commensurate with
quality of produce, online payment etc. that contribute to marketing efficiency
 While material flow continues to happen through mandis, an online market reduces
transaction cost
 To establish quality assaying systems for quality assurance to promote informed bidding by
buyers
 To promote stable prices and availability of quality produce to consumers
 Liberal licensing of traders / buyers and commission agents by State authorities without any
pre-condition of physical presence or possession of shop /premises in the market yard
 One license for a trader valid across all markets in the State
 Single point levy of market fees, i.e on the first wholesale purchase from the farmer
Implementing agencies
 Willing States to accordingly enact suitable provisions in their APMC Act for promotion of e-
trading by their APMC
 Ministry of Agriculture has mandated Small Farmers’ Agribusiness Consortium (SFAC) to act
as lead implementing agency for e-NAM

Challenges to e-NAM
 Even after two years of launch NAM is yet to integrate all mandis. Only 500 or so linked till
now. Even in mandis linked trade is not fully online
 Provision for unified trade licensing is a must for interstate mandi trade. But till date only
few states have established the facility for the provision of these unified licenses
  Online payment directly to the farmer’s bank account by the buyers is another area of
concern due to poor financial inclusion and digital illiteracy
 Assaying/Grading infrastructure
1. A key challenge to online trade in Agri-commodities is the absence of assurance on
the quality of the commodity; one has to physically examine the stock to know the
quality
2. Though the Centre provides funding to set up assaying facility, as many of the 400
plus mandis connected to e-NAM today do not have the infrastructure for grading
and assaying
3. Assaying requires large manpower, especially in peak season
4. According to Planning Commission report 2011, Only 7% of total produce sold by
farmers is graded before sale
 Storage Infrastructure: As assaying is a time consuming process, produce that cannot be
assayed in a single day has to be stored. Lack of storage facilities further leads to trade of
goods without assaying
 Awareness Generation: Awareness among farmers and traders about eNAM is crucial step
before implementation of the system

eNAM is a path breaking initiative to reform agricultural market, but still there are gaps to be filled in
order ensure regular income to farmers.
To make agriculture sustainable, the grower must be ensured profit! Hence, Agricultural marketing
reforms are the critical steps towards doubling farmers income.

Government of India passed three Acts with an aim to reform agriculture in India, namely- The
Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, The Farmers
(Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 and The
Essential Commodities (Amendment) Act, 2020

Why is there opposition to these reforms?

Violating the federal spirit of the Constitution: Various State Governments like Punjab and Haryana
have objected that since Agriculture is a State subject, the passage of national laws, on a state
subject, undermines India’s federal consensus
Interfering in state subjects is administratively unwise: The Constitution assigned jurisdiction over
agriculture markets to states due to the very localized nature of farm production
This is location specific and it is states who are best placed to determine the contours of production
and sale including, taxation, credit, building farmer producer organizations and physical markets.
Not inclusive of farm organizations: Various organizations have stated that no consultations were
held with major farm organizations

THE FARMERS' PRODUCE TRADE AND COMMERCE (PROMOTION AND

FACILITATION)
ACT, 2020
Trade of farmers’ produce:
The Act allows intra-state and inter-state trade of farmers’ produce outside:
(The physical premises of market yards run by market committees formed under the state APMC Acts
and other markets notified under the state APMC Acts.
Electronic trading: It permits the electronic trading of scheduled farmers’ produce (agricultural
produce regulated under any state APMC Act) in the specified trade area. An electronic trading and
transaction platform may be set up to facilitate the direct and online buying and selling of such
produce through electronic devices and internet.
Market fee abolished: The Act prohibits state governments from levying any market fee, cess or levy
on farmers, traders, and electronic trading platforms for trade of farmers’ produce conducted in an
‘outside trade area’.
Intended benefits of the Act
Reduced role of intermediaries: ecosystem where the farmers and traders will enjoy freedom of
choice of sale and purchase of agri-produce. Thus, ending the monopoly exercised by traders and
other intermediaries resulting in full realization of the price.
For example, a turmeric farmer now could sell her produce to BigBasket in Delhi, without any mandi
tax or trader commission, at a mutually agreed upon price.
Integrated Market: Barrier-free inter-state and intra-state trade and commerce would enable farm
surplus to move freely from surplus to deficit regions. It will advance the idea of ‘one Nation, one
Agri-market’.
Currently, the agricultural markets are very fragmented. For instance, the monthly average price of
rice in 2019 ranged from ₹2,042 per quintal in Agra (Uttar Pradesh) to ₹5,102 in Gangtok (Sikkim). The
variation is more pronounced in case of vegetables
Encouraging APMC reforms: Private markets could put pressure on APMC markets (the Act does not
repeal the APMC laws) to infuse more transparency and efficiency in their functioning

Potential issues from the Act

Sudden changes in market mechanisms may not bode well for the market. For instance, in 2006, Bihar
repealed its APMC Act with an objective to attract private investment in the sector and gave charge of
the markets to the concerned sub-divisional officers in that area. Farmers facing issues such as high
transaction charges and lack of information on prices and arrival of produce
The Act creates an artificial distinction between “market areas” (regulated by the mandi system
under state governments) and “trade areas” (now under the central Acts), thus risking a problem of
dual regulatory market.
Also, the new unregulated market space called the ‘trade area’ will have no oversight and the
government will have no information or intelligence about who the players are, who is transacting
with who for what quantities and at what prices
The newly created ‘trade areas’ would have a clear regulatory advantage over ‘market areas’ vis-à-vis
the mandi tax. This could potentially lead to a collapse of the APMC system and initiatives like e-
NAM which are riding on top of physical mandi structure in the country
State Governments will lose mandi tax, which is a major source of revenue for States like Punjab and
Haryana
Violating the federal spirit of the Constitution: Various State Governments like Punjab and Haryana
have objected that since Agriculture is a State subject, the passage of national laws, on a state
subject, undermines India’s federal consensus
Interfering in state subjects is administratively unwise: The Constitution assigned jurisdiction over
agriculture markets to states due to the very localized nature of farm production
This is location specific and it is states who are best placed to determine the contours of production
and sale including, taxation, credit, building farmer producer organizations and physical markets.
Not inclusive of farm organizations: Various organizations have stated that no consultations were
held with major farm organizations

Contract farming is a forward agreement between farmers and buyers

Buyer Agrees to buy produce from farmer at predetermined price. He Usually provides inputs
(Seeds, fertilizers, pesticides), technology and production practices so that final produce meets his
desired quality
Significance of Contract farming
• Private participation in Agriculture: It encourages the private sector investment in
agriculture to promote new farming technology, developing infrastructure etc.
• Improving Farmers Productivity: It enhances productivity and efficiency of farming sector,
by improving access to better inputs, scientific practices and credit facilities, leading to increased
farmer incomes, new employment opportunity and food security at large.
• It makes farming an organised activity and help in improving quality and quantity of
production.
• Insurance to post harvest losses: Predetermined prices provides an opportunity to cover
post-harvest losses, if any.
• Increasing Export: It encourages farmers to grow crops required by the food-processing
industry and link Indian farmers to global supply chains, particularly in high-value horticulture
produce and reduce food wastage significantly.
• Consumers benefit: Increasing marketing efficiency gains, elimination of intermediaries,
reduction in regulatory compliances etc. can significantly reduce artificial shortages of produce
and control food price inflation.

Challenges with Contract Farming

• State reluctance: States have been reluctant to carry forward reform for the fear of loss of
revenue.
• Stockholdings limits on contracted produce under Essential Commodities Act, 1955 are
restrictive and discourage buyers to enter into contracts.
Lack of uniformity or homogeneity among states law regarding kinds of produce, conditions
etc. which is needed for allowing contract farming.
•Regional Inequality: Currently it is practiced in agriculturally developed states (Punjab, TN
etc.) while States with highest concentration of small and marginal farmers are not able to reap
its benefit.
Supply side issue: Buyers have no incentive for contract farming with a large number of small
and marginal farmers due to high transactions and marketing costs, creating socio-economic
distortions and preference for large farmers.
It’s a capital-intensive and less sustainable pattern of cultivation as it promotes
increasing use of fertilizers and pesticides which have detrimental impact on natural resources,
environment, humans and animals.
• Encourages Monoculture Farming: This will not only impact soil health but also possesses
risk of food security and import of food grains.
Monopsony: Typically, contract firms enter into an agreement with farmers to grow
differentiated crops. This turns the firm into a sole buyer and farmers into price-takers.
Contracting firms can exploit this situation to their advantage by offering lower prices to farmers.
• Information asymmetry: Contracting firms do not have complete information on
productivity and land quality. This can lead to a situation where farmers produce below quality
crops. On the other hand, farmers sometimes do not understand contract specifications like the
quantity and quality to be produced, or the effect of price change.
These market failures lead to suboptimal outcomes. Buyers may penalize farmers.
• Predetermined prices can deny farmers the benefits of higher prices prevailing in
marketfor the produce.

THE FARMERS (EMPOWERMENT AND PROTECTION) AGREEMENT ON PRICE

ASSURANCE AND FARM SERVICES ACT, 2020
Farming agreement: The Act provides for a farming agreement between a farmer and a buyer prior
to the production or rearing of any farm produce.
Pricing of farming produce: The price of farming produce should be mentioned in the agreement. For
prices subjected to variation, a guaranteed price for the produce and a clear reference for any
additional amount above the guaranteed price must be specified in the agreement.
Further, the process of price determination must also be mentioned in the agreement.
Dispute Settlement: A farming agreement must provide for a conciliation board as well as a
conciliation process for settlement of disputes. The Board should have a fair and balanced
representation of parties to the agreement.

Intended benefits of the Act

 Promote Contract Farming: Giving a legal framework to contract farming will ensure groups
of growers and entrepreneurs come together in a contractual relationship
  The Act empowers farmers to engage with processors, aggregators, wholesalers, large
retailers, exporters etc., on a level playing field without any fear of exploitation
 Lower risk for farmers: It will transfer the risk of market unpredictability from the farmer
to the sponsor.
 Due to prior price determination, farmers will be shielded from the rise and fall of market
prices.
 Improved inputs: It may provide farmer access to high quality seeds, better technology,
fertilizers and pesticides along with impetus to research and new technology in agriculture
sector.
 Attracting investments: This Act will act as a catalyst to attract private sector investment for
building supply chains for supply of Indian farm produce to national and global markets, and
in agricultural infrastructure.
 Reduced cost of marketing for farmers: Since, after signing contract, farmer will not have to
seek out traders. The purchasing consumer will pick up the produce directly from the farm.
 Dispute Resolution: The Act also provides for effective dispute resolution mechanism for
clear timelines

Potential Issues from the Act

 Farmers have expressed apprehension that once these Acts are passed, they would pave the
way for dismantling of the minimum support price (MSP) system and leave the farming
community at the "mercy" of big corporates.
 As a corollary, the farmers feel that the proposed legislations will suit big corporations more
than farmers who will subsequently dominate the market
 However, the Government has clarified that these Acts would not have any impact on the
Minimum Support Price (MSP) mechanism which will continue
 The Act, while offering protection to farmers against price exploitation, does not prescribe
the mechanism for price fixation or a methodology for regulatory oversight.
 According to the Act, companies are not required to have a written contract with the farmer,
making it difficult for farmers to prove terms.
 As a result, if a farmer gets into a dispute regarding her/his contract with a private company, it
will be very difficult for the farmer to have the dispute settled in her/his favor.
 Also, in case of disputes, the District Administration has been entrusted with the
responsibility to resolve; but it may not be well equipped to settle disputes

THE ESSENTIAL COMMODITIES (AMENDMENT) ACT, 2020

Regulation of food items: The Act provides that the central government may regulate the supply of
certain food items including cereals, pulses, potatoes, onions, edible oilseeds, and oils, only under
extraordinary circumstances. These include: (i) war, (ii) famine, (iii) extraordinary price rise and (iv)
natural calamity of grave nature.
The Essential Commodities Act, 1955 empowered the central government to designate certain
commodities (such as food items, fertilizers, and petroleum products) as essential commodities. The
central government may regulate or prohibit the production, supply, distribution, trade, and
commerce of such essential commodities.
Intended benefits of the Act
 Ends harassment of Businessmen and traders: Governments had restrictions on hoarding on
food commodities and could seize any excess stocks maintained by the traders. This resulted
in widespread harassment of traders and rent-seeking behavior. Now with the new Act,
inventories can be managed without such interference
 Helps reduce wastage as storage facilities improve: Despite India losing a third of the agri.
produce postharvest, businesses found it difficult to devise solutions to decrease that loss,
mainly due to the regulation.
  Likely to attract private investment in Cold Storage, warehouses and processing: These
reforms may accelerate growth in the sector through private sector investment in building
infrastructure and supply chains for farm produce.
 Will bring price stability and raise farm incomes: Exempting selected commodities from
ECA will improve the marketability of the crop for growers. Processors, exporters and traders
will now be able to build inventory without fear of penal action.
Potential Issues from the Act
Some experts fear that the Act would effectively legalize hoarding, as licenses will no longer be
required to trade in these commodities.
Such a situation can lead to anti-competitive behavior by particular buyers in the food chains.
Complete deregulation of these commodities could lead to dangerous situation of food supply
problems during extraordinary circumstances as the Government will have no information on who
the players are, and the levels of stocks are not clear

Other mechanisms for better marketing

Draft Agricultural Produce and Livestock Marketing (Promotion and Facilitating) Act (APLM), 2017

 Unified Market Area: A state government/UT administration may declare the whole
state/UT as a single unified market area for the purpose of regulating agricultural produce
 Setting up of market yards: Private market yards may be set up to facilitate operations of
traders, commission agents, etc. Further, farmer-consumer market yards may be set up by
providing infrastructure accessible to farmers and consumers directly
 Market Committee: A Market Committee will manage market yards in a specified area, and
is responsible for: (i) regulating the auction of agricultural produce and livestock, (ii)
providing facilities for marketing of agricultural produce and livestock. The Committee may
also link consumers with farmers through digital technology and manage these market yards
through PPPs
 Storage infrastructure like warehouses and cold storages maybe declared as market sub
yards
 Market yard of National Importance (MNI): A state may declare any market yard as a MNI
based on parameters such as its total throughput, number of consumers served, and
infrastructure. A separate Market Committee may be constituted to manage the MNI
 E-Trading: A state may set up an electronic trading platform, which shall provide
infrastructure and services for trading in agricultural produce. A person may obtain license
to establish and run an e-trading platform
 Under a unified National Agricultural Market, e-platforms shall be interoperable
 Cap on levy of market fees is proposed at 2% (of sale price) for fruits and vegetables and 1%
for food grains
 Single point levy of market fee: The Market Committee shall levy market fee on agricultural
produce from a buyer only once, whether brought from outside or within the state/UT

Contract farming is a forward agreement between farmers and buyers

Buyer Agrees to buy produce from farmer at predetermined price. He Usually provides inputs
(Seeds, fertilizers, pesticides), technology and production practices so that final produce meets his
desired quality
Farmer: Agrees to grow and supply the produce to the buyer at predetermined quality, quantity and
prices
Farm producer organisations (FPOs) of various kinds are emerging as a new model for organised
marketing and farm business. Such models include informal farmers’ groups or associations,
marketing cooperatives and formal organisations like producers’ companies. Producers can benefit
from getting together to sell their produce through economies of scale in the use of transport and
other services, and raise their bargaining power in sales transactions

FPCs and their benefits

 It is a hybrid between cooperative societies and private limited companies which provides
for sharing of profits/benefits among the members
 It is a registered body and a legal entity (under Companies Act, 1956
 Producers are shareholders in the organization;
 It deals with business activities related to the primary produce/product.
 A part of the profit is shared amongst the producers and rest of the surplus is added to its
owned funds for business expansion
 It involves collectivization of Producers especially small and marginal farmers to help
them better sell their produce through economies of scale and improve the bargaining
power of farmers through backward (inputs) and forward linkages (marketing to
processors and retailers)
 NABARD initiated the Producer Organisation Development Fund (PODF) and Small
Farmers Agribusiness Consortium (SFAC) has set up nearly 250 FPOs since 2011
 To strengthen their capital base, SFAC has launched a new Central Sector Scheme “Equity
Grant and Credit Guarantee Fund Scheme for Farmers Producer Companies
Need for FPC
 Small Farmer Constraints- India accounts for a majority of farmers who operate on less
than 2 hectares land per household. Majority of them still operate for subsistence based
farming. Together the small & marginal farm holdings in the year 2010-11 accounted for
85% of total farm holdings in the country. Economies of scale and better bargaining
power against traders and retailers
 Structural Challenges- like poor market infrastructure, credit unavailability from formal
channels, access and knowledge about market, information asymmetries, interlocking of
factor and product market, lower bargaining power and holding capacity, higher input
costs and output yield due to fragmented buying and selling and competition from other
forms of private organisations in the market
 Failure of Cooperatives- Due to heavy political interference, bureaucratic control and
capturing of management by poor leadership and powerful elite, the cooperatives have
not been as effective as expected

Challenges faced by FPO

 Lack of Patient Capital/Long term Capital- as these entities are not seen to be as viable
business enterprises
 Besides lack of entrepreneurial capabilities, the small farmers show a lack of
understanding of business plans and the growth trajectory for the FPCs towards
enterprise models
 There is a lack of administrative capacity resulting in poor management of books
 Negative Selection Phenomenon: It’s happening with some individuals/entities entering
only to reap the subsidy and depart once it dries
 Poor Infrastructure and lack of modern technology, no digital literacy: Most of these
FPC are situated in rural and far reach areas that lack connectivity via road or railways.
Access to electricity remains an issue, no internet
  Credit Mobilization: A study has shown that about 48% of the members had to borrow
from local money lenders, relatives and neighbours because they were getting inadequate
loan from groups. Often group hoarding of money is observed
 Other Challenges are lack of proper monitoring and evaluation, no or incomplete record
of farmer members, no penalties for wrongdoers, no incentives for good performance,
problems like free-riding etc

Way Forward
 Patient capital and skilled resources with a firm business plan need to be infused in these
enterprises
 different stakeholders particularly Banks and NGOs should create awareness among
farmers
 Need A Proper Selection Mechanism for the promoters/organisation as well as members
based on merit to avoid subsidy gouging
 Optimal size determination: Smaller sub groups, of 25-30 members, within a group could
be easier to monitor and can also deliver better on attributes like quality and food
safety
 Optimal composition: Participation of members with different skills is important to reap
the gains based on comparative advantage.
 Product differentiation: FPOs can maximise prices for farmers if their products are
differentiated
Applying provisions of National Policy on Voluntary Sector 2007

 commitment to encourage, enable and empower an independent, creative and effective

voluntary sector, so that it can contribute to the social, cultural and economic advancement
of the people of India.
 Enabling VOs to legitimately mobilize the necessary financial resources from India
 Identifying systems by which the Government may work together with the Voluntary Sector
 Encouraging VOs to adopt transparent and accountable systems of governance and
management

Organised Retail Outlets: The direct purchase of farm produce by retailers has been steadily
increasing with the growth of organised retailing in India. This is expected to accelerate if the entry
of foreign direct investment (FDI) to the field is allowed further
Successful Alternative Models of Agriculture Marketing in India

In addition Many states have attempted to promote direct contact

between producers and consumers by making arrangements for sale at
designated places in urban areas
ECONOMICS FOR ANIMAL REARING
The branch of science, which deals with the study of various breeds of domesticated animals and
their management for obtaining better products and services from them is known as Animal
Husbandry
Domesticated: Those that are of use at home and are easily bred and looked after by humans.
Common domesticated animals are dog, horse, cow, sheep, buffalo, fowl etc
Present Status of Animal Rearing in India
 According to NSSO 68th round survey, 20 million people are engaged in the activities of
farming of animals, mixed farming, fishing and aquaculture
 Livestock rearing provides employment to 65% of rural households and contributes 16% to
the income of small farm households
 With only 2.29% of the land area of the world, India is maintaining about 10.71% of the
world’s livestock
 Animal husbandry promotes gender equity. More than three-fourth of the labour demand
in livestock production is met by women. The share of women employment in livestock
sector is around 90% in Punjab and Haryana where dairying is a prominent activity and
animals are stallfed
 It contributes around 4% of GDP and 30% of Agricultural GDP
 The distribution of livestock in India: Poultry accounts for the largest share with 58 percent
followed by cattle and buffaloes (24 percent), goats and sheep (16 percent), pigs (1
percent). Other animals which include camels, asses, horses, ponies, and mules are in the
lowest rung

Livestock
 India is first in total buffalo population (56.7%) in the world, second in cattle population,
second in goat and third in sheep population in the world
 In 2014, India surpassed Brazil and Australia to become the largest bovine meat exporting
country in the world
 Milk Production: India is the largest producer of milk in the world with 165.4 million tonnes
in 2016-17, and per capita availability of 355 g/day
 Value of milk is more than value of wheat and rice combined
Poultry
 Indian Poultry Industry is one of the fastest growing segments of the agricultural sector
today in India
 India is 5th in chicken population
 production of agricultural crops has been rising at a rate of 1.5 to 2% per annum while the
production of eggs and broilers (poultry meat) has been rising at a rate of 8 to 10% per
annum
 India is world’s fifth largest egg producer in the world
 Poultry Industry today employs around 1.6 million people. At least 80% of employment in
Indian Poultry Industry generates directly by the farmers, while 20 % is engaged in feed,
pharmaceuticals, equipment and other services
Fisheries
 Fisheries is a sunrise sector with varied resources and potential, engaging over 14.50 million
people at the primary level and many more along the value chain
  Production: India is the second largest producer of Fish (marine + fresh water) and also, the
second largest producer of Fresh Water Fish.
 Constituting about 6.3% of the global fish production, the sector contributes to 1.1% of the GDP
and 5.15% of the agricultural GDP
 Inland fishery (with respect to marine), and through aquaculture (with respect to capture
fisheries) has become the major norm of Indian Fishery sector
 Besides being a source of protein, income and livelihood to poor fishermen, the fishery
sector is also responsible for engaging rural population in ancillary activities like
marketing, retailing, transportation etc

Role of Livestock in Indian Economy

 Output functions such as source of edible (milk, meat, egg) and non-edible (wool, leather,
hides) products
 Input functions such as providing draught power (bulls/oxen), dung, urine etc. in crop
production
 Economic functions by providing steady non-farm income - being the source of milk, meat
and eggs almost round the year
 Risk Coverage in case of crop failures or other disasters and are considered as 'Banks on
hooves
 More equitably distributed compared to land, thus has more potential for increasing
farmers’ income.
 Rapid growth of the livestock sector can be even more egalitarian and inclusive than growth
of the crop sector because those engaged in it are mainly small holders and the landless
 Animal husbandry promotes gender equity in employment. More than three-fourth of the
labour demand in livestock production is met by women. The share of women
employment in livestock sector is around 90% in Punjab and Haryana where dairying is a
prominent activity and animals are stallfed

General Challenges faced by Animal Husbandry Sector

 Lack of access to organized markets prevents value addition and large scale investment in
infrastructure creation while meagre profits discourage farmers from investing into
improved technologies and nutritious feeds/inputs
 Shrinking and degrading pastures due to shifting cultivation coupled with limitations of
nutritious fodder
 lack of sufficient veterinary care and apathy to assisted reproductive technologies have
been the major constraints in reaching the full potential of animal husbandry e.g. potential
of raising Pashmina goats’ viz. Changthangi in Ladakh and Chegu in Himachal Pradesh
 Livestock extension services are almost absent. The extension format, methodology and
set-up established for agriculture has failed to cater to the needs of the livestock sector
 The only centrally sponsored scheme on “Livestock extension and delivery services” with a
budgetary outlay of Rs. 15.00 crore remained non-operational
 insufficient facility / setup for disease diagnosis, reporting, epidemiology, surveillance
and forecasting are not on board. Several diagnostic kits required for disease surveillance
and monitoring are imported at a huge cost
 schemes on modernization of slaughterhouses and by-product utilization have not been
effectively implemented
 Bulk of the investment for livestock development comes from the state/union government.
There is hardly any private sector investment in animal husbandry
  The sector received only about 12 per cent of the total public expenditure on agriculture and
allied sectors, which is disproportionately lesser than its contribution to agricultural GDP.
 The share of livestock in the total agricultural credit has never 4% in the total (short-term,
medium-term and long-term).
 Currently, only 6 per cent of the animal heads (excluding poultry) are provided insurance
cover

Challenges in Dairy sector

 Microbial contamination, antibiotic residues and adulteration in milk, meat and animal
feed is rampant.
 lack of sufficient veterinary care and apathy to assisted reproductive technologies.
insufficient facility / setup for disease diagnosis, reporting, epidemiology, surveillance
and forecasting have increased foot and mouth disease and Anthrax in milk producing
bovines
 Quality control for veterinary drugs and vaccines is almost non-existent
 Testing of milk for safety and quality parameters at the collection centers is almost non-
existent. Lack of proper anaerobic waste treatment and dairy by-product utilization are the
other concerns
 Though India has attained the numero uno position in milk production but that is only
because the country is home of world’s largest livestock population
 The average daily milk yield for crossbred cattle in India is at 7.1 kg per day while it is at
25.6 in UK, US (32.8) and Israel (38.6)
 The reason behind the low yield in India is because of intrinsic and extrinsic factors both
 The intrinsic factor is low genetic potential while extrinsic is related with number of
reasons like poor nutrition and feed management, inferior farm management practices
and inefficient implementation of breed improvement programs
 India has huge diversity of animals, which are adaptable to harsh climate, limited nutrition,
and resistance to diseases and stress. Populations of most of these breeds have alarmingly
gone down due to comparative preferences for highly productive exotic breeds. This calls
for an immediate action for systematic conservation, genetic improvement and
sustainable utilization of indigenous livestock breeds.
 Domination of unorganized sector: prevents value addition and large scale investment in
infrastructure creation
 Infrastructure issues: cold food supply chain, milk processing facilities, vehicles to transport
milk products etc, lack of marketing facilities and extension services; insufficient veterinary
services

Challenge faced by Indian Meat Sector

 Largely Unorganized (90% unorganized)
 Lack of adequate meat hygiene
 Inadequate infrastructure like outdated abattoirs (slaughter houses), poor cold storage
facilities etc.
 Animals are not specifically bred for meat.
 Poor quality of meat because spent animals (old age farm animals) are generally used for
meat production.
 Lower domestic demand, low per capita meat consumption in India (5.2 Kg/year vs 39.8 kg
global average)
 Lack of awareness about food safety norms and packaging standards
 schemes on modernization of slaughterhouses and by-product utilization have not been
effectively implemented
  Microbial contamination, antibiotic residues and adulteration in milk, meat and animal
feed is rampant.
 lack of sufficient veterinary care and apathy to assisted reproductive technologies.
insufficient facility / setup for disease diagnosis, reporting, epidemiology, surveillance
and forecasting have increased foot and mouth disease and Anthrax
 Quality control for veterinary drugs and vaccines is almost non-existent

Challenges the Poultry sector is facing

 There is disparity between states and hence an impairment in growth of the sector. About
60% of the egg production comes from Andhra Pradesh. Commercial poultry farming yet to
make a mark in states like Odisha, Bihar, MP, Rajasthan
 heatwaves in Andhra Pradesh and Telangana region result in high chicken prices due to
killing of birds. As a result, poultry feed demand has fallen.
 Avian influenza was another issue which has resulted which has devastating effect on Indian
poultry
 Shortage of raw material. Price of soybean meal, the major and only source of protein has
increased about 75%, which has forced the feed manufacturers to compromise in terms of
diet given to birds
 absence of veterinarians, researchers, in areas where expertise knowledge is required
 Indian poultry sector is still unable to tap the benefit of international market

Challenges Faced by the Fisheries Sector

 Inland fish production has declined due to proliferation of water control structure, loss of
habitat and indiscriminate fishing
 Marine fishing has declined due to depleting resources, energy crisis and resultant high cost
of fishing.
 Prolonged over fishing leads to commercial extinction when the population of the species
becomes so low that it is no longer profitable to hunt them.
 Fishing methods such as trawling and drift nets capture everything in their way
indiscriminately. Sometimes 70% of the catch is thrown away.
 Commercial fish catching disturbs non-target marine animals. Dredges and trawls also
adversely affect the marine habitats
 Lack of a reliable database relating to aquatic and fisheries resources
 Absence of standardization and branding of fish products
 Low investment in the sector coupled with limited capabilities of fishermen and fish farmers
 Inadequate supply of seed, feed and genetic resources
 Slow development and adoption of new and improved aqua farming technologies
 India is yet to realise the potential of deep-sea fishing
 Inadequate extension staff for fisheries and training for fishers and fisheries personnel
 Inadequate cold chain, market, trade and safety
 Environmental integrity and a vicious circle of low productivity
 loss of biodiversity on account of adverse climate change
 Security of fishermen especially along the maritime boundaries with Sri Lanka and Pakistan
remains a concern
 Water pollution; unscientific management of aquaculture and contamination of indigenous
germplasm resources
 With the increased usage of Fibre Reinforced Plastic (FRP), and poor quality boats have
amplified leading to ill-effects on marine culture

Government Initiatives
Livestock and Poultry - (Pink Revolution: technological revolutions in the meat and poultry
processing sector and White Revolution
 National Livestock Mission (NLM)
 Livestock Health and Disease Control Schemes
 National Dairy Plan
 National Program for Bovine Breeding and Dairy Development
 Introduction of Dairy Processing and Infrastructure Development Fund
 Animal Husbandry Infrastructure Development Fund (AHIDF):
 It will ensure availability of capital to meet upfront investment, enhance overall returns and pay back
for investors
 Employment generation: AHIDF would help in direct and indirect livelihood creation for 35 lakh people
 National Animal Disease Control Programme (NADCP): The programme aims to control the livestock
diseases the foot and mouth disease and brucellosis in livestock by 2025 and eradicate these by 2030.
 Dairy entrepreneurship and development scheme
 White Revolution and operation flood for Milk
Fisheries
 Blue Revolution
 Establishment of National Fisheries Development Board
 extension of facility of Kisan Credit Card to farmers engaged in fisheries, aquaculture and
animal husbandry

National Livestock Mission

The National Livestock Mission (NLM) commenced from 2014-15

The Mission is designed to cover all the activities required to ensure quantitative and qualitative
improvement in livestock production systems and capacity building of all stakeholders
It includes poultry birds as well
NLM has four sub-missions as follows
 The Sub-Mission on Fodder and Feed Development: address the problems of scarcity of
animal feed resources, in order to give a push to the livestock sector
 Sub-Mission on Livestock Development: provisions for productivity enhancement,
entrepreneurship development and employment generation (bankable projects),
strengthening of infrastructure of state farms with respect to modernization, automation
and biosecurity, conservation of threatened breeds, minor livestock development, rural
slaughter houses, fallen animals and livestock insurance
 Sub-Mission on Pig Development in North-Eastern Region: Government of India would
support the State Piggery Farms, and importation of germplasm as it is linked to livelihood
and contributes in providing protein-rich food in 8 States of the NER
 Sub-Mission on Skill Development, Technology Transfer and Extension: extension
machinery at field level for livestock activities is very weak. The emergence of new
technologies and practices require linkages between stakeholders and this submission will
enable a wider outreach to the farmers.

National Program for Bovine Breeding and Dairy Development

The aim is to integrate milk production and dairying activities in a scientific and holistic manner, so
as to attain higher levels of milk production and productivity, to meet the increasing demand for milk
in the country
The Scheme has three components
 National Programme for Bovine Breeding (NPBB): to ensure quality Artificial Insemination
services at farmers doorstep through MAITRI (Multipurpose AI Technician in Rural India)
 and to conserve, develop and proliferate selected indigenous bovine breeds of high socio-
economic importance
 National Programme for Dairy Development (NPDD): focus on creating infrastructure
related to production, procurement, processing and marketing by milk unions/federations
and also extension activities including training of farmers
 Rashtriya Gokul Mission:
1. To undertake breed improvement programme for indigenous cattle breeds so as to
improve the genetic makeup and increase the stock,
2. to enhance milk production and productivity of indigenous bovines,
3. to distribute disease free high genetic merit bulls of indigenous breeds for natural
service,
4. upgradation of nondescript cattle using elite indigenous breeds like Gir, Sahiwal,
Rathi, Deoni, Red Sindhi
5. establishment of Gokul Gram (Integrated Indigenous Cattle Centres), Gopalan
Sangh (Breeder’s Societies)
6. award to Farmers (Gopal Ratna) and Breeders’ Societies (Kamadhenu ).
7. National Kamdhenu Breeding Centres for development, conservation and
preservation of indigenous breeds
8. National Mission on Bovine Productivity (NMBP)

National Mission on Bovine Productivity (NMBP)

 It will be implemented as a part of Rashtriya Gokul Mission under umbrella scheme
White Revolution-Rashtriya Pashudhan Vikas Yojna
 The objective is to enhance milk production and productivity of bovine population, increase
trade of livestock and its products, e-market for bovine germplasm and to double farmers’
income by 2022
 It has 4 components
1. Pashu Sanjivni: an animal wellness program with provision of Nakul Swasthya Patra (animal
health card) along with unique ID to animals and uploading data on National Data
Depository
2. Advance reproductive Technique: Under it, sex sorted semen production facility is being
created at 10 A graded semen stations and 50 EET Labs with IVF facilities.
3. Creation of E Pashu Haat Portal: It is for linking farmers and breeders of indigenous breeds
4. Establishment of National Bovine Genomic Centre for Indigenous Breeds (NBGC-IB): It is
established for enhancing milk production and productivity through genomic selection
among indigenous breeds

Dairy Entrepreneurship Development Scheme

 started in September, 2010 with the objective to generate self employment opportunities
in dairy sector in the country
 implemented through NABARD which provides financial assistance to commercially
bankable projects with loans from Commercial, Cooperative, Urban and Rural banks
 The activities include establishment of small dairy unit from 2 to 10 milch animals, rearing of
heifers (up to 20 calves), vermicompost, purchase of milking machines

National Dairy Plan

 a Central Sector Scheme being implemented by the National Dairy Development Board
(NDDB)through End Implementing Agencies (EIA)for a period of 2011-12 to 2018-19
 scientifically planned multi-state initiative to increase productivity of milch animals and
thereby increase milk production to meet the rapidly growing demand for milk through
 scientific breeding and feeding and to provide rural milk producers with greater access to
the organised milk processing sector.
 It has three components: Productivity Enhancement, Village based milk procurement
systems and Project Management and Learning

Operation Flood/White Revolution

History
 world's biggest dairy development program, launched in 1970 by National Dairy
Development Board (NDDB)
 It transformed India from a milk-deficient nation into the world's largest milk producer
 This program with its whopping success was called as ‘The White Revolution
 The main architect of this successful project was Dr. Verghese Kurien, also called the father
of White Revolution
 In 1949 Mr. Kurien joined Kaira District Co-operative Milk Producers’ Union (KDCMPUL), now
famous as Amul
 The Amul pattern of cooperatives had been so successful, in 1965, then Prime Minister of
India, Shri Lal Bahadur Shastri, created the National Dairy Development Board (NDDB) to
replicate the program on a nationwide basis citing Kurien’s “extraordinary and dynamic
leadership” upon naming him chairman
 The bedrock of Operation Flood has been village milk producers' cooperatives, which not
only procure milk from farmers but also provide inputs and services, making modern
management and technology available to members and improve their bargaining power
 The main objectives were, commanding share of milk market and speed up development of
dairy animals respectively hinter- lands of rural areas
 The dairy cooperatives were enabled to expand and strengthen the infrastructure required
to procure and market increasing volumes of milk. Veterinary first-aid health care services,
feed and artificial insemination services for cooperative members were extended, along
with intensified member education
 Operation Flood's objectives included
 Increase milk production ("a flood of milk")
 Augment rural income
 Reasonable prices for consumers
 A National Milk Grid links milk producer throughout India with consumers in over 700 towns
and cities, reducing seasonal and regional price variations while ensuring that the producer
gets fair market prices

Success
 It helped dairy farmers direct their own development, placing control of the resources they
create in their own hands
 In 1955 India’s butter imports were 500 tons per year, today India's cooperatives alone
produce more than 12,000 tons of butter
 By 1975 all imports of milk and milk products stopped
 India has retained its leadership as the world’s largest milk producer for the last 15 years.
This has been made possible by Operation Flood — which ushered in the White Revolution
in India
 In 30 years, it doubled milk available per person, and made dairy farming India’s one of
the largest self-sustainable rural employment generator
 The dairy cooperative movement has also encouraged Indian dairy farmers to keep more
animals, which has resulted in the 500 million cattle & buffalo population in the country –
the largest in the World
Blue Revolution – Neel Kranti Mission

The government of India restructured the central plan scheme under an umbrella of Blue
Revolution: Integrated Development and Management of Fisheries (Central Sector Scheme).

Objectives
 Formulation of a Neel Kranti Mission Plan (Blue Revolution Mission Plan) for tapping the full
potential of the inland and marine c*ulture fisheries of the country
 The restructured scheme provides focused development and management of fisheries,
covering inland fisheries, aquaculture, marine fisheries including deep sea fishing,
mariculture and all activities undertaken by the National Fisheries Development Board
(NFDB
 Ensure doubling of income of fishers and fish farmers of the country.
 To triple the export earnings by 2020
 Ensure sustainability of, bio-security and address environmental concerns for enabling
sustainability of the fishing industry
 special focus on increasing productivity and better marketing postharvest infrastructure
including e-commerce and other technologies and global best innovations
 The mission aims to achieve the target to enhance fisheries production from 10.79 mmt
(2014-15) to 15 mmt by 2020-21 under the Blue Revolution

Components
 National Fisheries Development Board and its activities: increasing fish production,
enhance its exports, apply modern tools and techniques, creation of employment
 Development of Inland Fisheries and Aqua Culture: Construction and renovation of
ponds, establishing fish hatcheries, stocking of fingerlings, training and skill development
 Development of marine fisheries, infrastructure and post-harvest operations:
Motorisation of traditional craft, promotion of mariculture in the form of sea cages, see
weed cultivation, bi-valve cultivation and pearl culture, infrastructure like ice plants, cold
storages
 Strengthening of data base and Geographical Information System of the fisheries sector:
assistance to state governments for collection and supply of fisheries data, development of
GIS, mapping of water bodies
 Monitoring, control and surveillance (MCS) and other need based interventions:
Biometric ID card to marine fishers, registration of their vessels, upgradation of the
registration centres into Fisheries Monitoring Control and Surveillance centres
 National scheme of welfare of fishers: Housing for fishermen, basic amenities, group
accident insurance for active fisherman, Grant in aid to the National Federation of Fishers
Cooperative ltd (FISHCOPFED).
 An Integrated National Fisheries Action Plan 2020 has been developed to achieve the
concept of Blue Revolution.

National Policy on Marine Fishery, 2017

 provides guidance for promoting 'Blue Growth Initiative' which focus on ushering 'Blue
Revolution' (NeeliKranti) by sustainable utilization of fisheries wealth from the marine and
other aquatic resources of the country for improving the lives and livelihoods of fishermen
and their families
 policy intends to guide the coordination and management of marine fisheries in the country
during the next 10 years
  The policy states that “private investments will be promoted in deep sea fishing and
processing to fully harness the potential of marine fishery for inclusive development
 deep sea fisheries resources necessitate an optimum fleet size of modern fishing vessels
capable of undertaking extended voyages, and wherever required, support of overseas
technology will also be considered for development of the sector
 Legislations will be brought to economically empower the producer cooperatives and the
right of first sale option to be given to the fisherman

Other steps in Fishing sector

 "Letter of Permit"(LOP) system in the exclusive economic zone (EEZ) has been stopped in
order to boost the livelihood of local fisherman
 Traditional fishers have been exempted from the fishing ban implemented during monsoon
period in the EEZ
 Prohibited the use of LED lights and other artificial lights and practice of bull-trawling, purse
seining and gill netting operations in the Indian EEZ to protect the marine ecology
 Government has prepared a Census of fishermen, preparing a database of fishing activities,
installing tracking devices in fishing boats operating in the waters in averse the accident on
boast/vessel

Way Forward
 On par of agriculture: Aquaculture needs to be treated at par with agriculture in terms of
water, power tariff, tax benefits, subsidy, insurance and credit
 Research on aquatic health management and development of disease resistant strains of fish
 Implementation of Dr.B Meenakumari committee recommendations such as creation of
buffer zone (between 200 metres and 500 metres in depth) and scientific use of fishing net
should be implemented
 Special insurance system for the fishing community and cooperation in safety and security of
fishermen with neighbouring countries should be paramount to averse the loss of many
fishers lives
 Revival of cooperative sector with constant engagement of center government would help in
achieving the doubling the famers Income 2022
 In the inland sector, while reservoirs and freshwater aquaculture would be the two main
pillars of growth, other resources such as upland water bodies, floodplain lakes and
wetlands, irrigation canals, saline and waterlogged areas also need to be gradually
mainstreamed to start contributing to the production
 Programmes aimed at production and distribution of quality seed and feed for aquaculture
and also culture-based-capture fisheries, husbandry of farmed species would be essential to
optimize production and productivity from inland fisheries and aquaculture in the country
 up- gradation of the fleet as well as skills and capacities of the fishers and incentives to
promote diversified fishing in the offshore waters. Use of Fish Aggregating Devices (FADs)
and Artificial Reefs (ARs) for stock enhancement and promotion of mariculture could
enhance production
 In the area of legislation, the existing Marine Fishing Regulation Act (MFRA) of the coastal
States/Union Territories (UTs) needs revision to incorporate the requirements of Code of
conduct for Responsible Fisheries (CCRF), etc. Similarly, a model bill is needed for inland
fisheries and aquaculture and a Central Act is required to regulate fishing by wholly Indian-
owned fishing vessels in the EEZ
Seaweed or macroalgae refers to several species of macroscopic, multicellular, marine algae
primitive type of plants lacking true roots, stems and leaves[1] The term includes some types of red,
brown, and green macroalgae
Two specific environmental requirements dominate seaweed ecology. These are the presence of
seawater (or at least brackish water) and the presence of light sufficient to drive photosynthesis
As a result, seaweed most commonly inhabit the part of a sea that is close to the shore (the littoral
zone) and within that zone more frequently on rocky shores than on sand or shingle
Indonesia produced 3 million tonnes of seaweed and surpassed the Philippines as the world's largest
seaweed producer
USES
Food
Medicine and herbalism: anti-inflammatory and anti-microbial agents
Filtration
fertilizer,
compost for landscaping
Seaweed fuel

Asia stands as the world leader in seaweed cultivation and

more than 80% is contributed by China, Korea and Japan. India has not taken up seaweed cultivation
interestingly
in the past though it is bestowed with a coastline of more than 17,000 km, embracing 821 species of
seaweeds

Seaweed resources in India

Seaweeds grow abundantly along the Tamil Nadu and Gujarat coasts and around Lakshadweep and
Andaman
and Nicobar islands. There are also rich seaweed beds around Mumbai, Ratnagiri, Goa, Karwar,
Varkala, Vizhinjam
and Pulicat inTamil Nadu and Chilka in Orissa

ndia’s advent into this area began quite accidentally with PepsiCo opting to begin seaweed farming in
Mandapam (Tamilnadu) in 2006

Under the Centre’s ‘Blue Revolution’ scheme, the government the government of India
has given financial assistance to set up 10,000 seaweeds culture units in Andhra Pradesh
where the production is negligible compared to Tamil Nadu(22K tonnes), Gujarat and
Maharashtra, (each 20K tonnes) Lakshadweep (8,000 tonnes).