Agriculture playscrucial role in the Indian economy as the economic development of country isdependent upon the agricultural activities.
Agriculture not only serves as asource of food for the nation but also provides opportunities for employmentgeneration, contribution to industrial goods market, saving and earning foreignexchange. More than 58 percent of rural household in India depends solely onagriculture for their livelihood. In India , agriculture and allied sectors(including agriculture , livestock , forestry and fishery) contributes 16 percent in GDP. Agricultural marketing is the study of series of activities in the procurement of farm inputsby the farmers and the movement of agricultural products from the farms to theconsumers.The movement ofagricultural produce from farmers to the consumers at the lowest possible cost,consistent with the provision of services desired by the consumers can betermed as efficient agricultural marketing. Agricultural marketing is a linkbetween farm and non-farm sectors.
All entities associated in agriculturalmarketing are interested in having an efficient marketing system. An efficientmarketing system for agricultural produces ensures an increase in the farmproduction gets transformed into an increase in the level of income therebyincreasing the additional income. An efficient agricultural marketing system isan effective agent of change and an important means of raising the incomelevels of farmers and satisfaction of the consumers.
Consumers get thesatisfaction when they get the goods at the least possible cost. An idealmarketing system aims at giving remunerative prices of produce to farmers,uninterrupted supply of goods to the consumers at reasonable prices. Efficientagricultural marketing is important in economic development of India.Keyword- Agriculture,Agricultural Marketing, Agricultural Development LITERATUREREVIEWThere has beenconsiderable research in the area of agriculture marketing in past few years.These papers mostly deal with challenges, prospects and government initiativetowards agricultural marketing.
The research on RaisingAgricultural Productivity and Making Farming Remunerative for farmers (2015) doby National Institutions for Transforming India (NITI) Aayog, Government ofIndia focuses on five key issues such as measures necessary to raiseproductivity, reforms necessary in the areas of land leasing, policies ensuringremunerative prices for farmers , polices ensuring remunerative price forfarmers, mechanism to bring relief to farmers hit by natural disasters andinitiatives necessary to spread Green Revolution to eastern states.Rajendran andKarthikesan (2014) in their study pointed out that small scale farmers need toinformed with market knowledge like fluctuations , demand and supply conceptswhich are the core of economy.Rehman, et.al., (2012)stated that the supply chain in agricultural marketing is long and hasincreased the margin between the price received by the farmer and the pricepaid by the consumer. Tightening of the supply chain is called for and the roleof the farmer’s organizations, Cooperatives/Self Help Groups needs to beexpanded.
Zivengeand, et.al.,(2012) recommends that farmers should develop effective mechanisms forcollaboration and linkages, invest in market intelligence. This will enablethem to enhance their bargaining power on prices. Farmers should expand farmsizes and also access mobile phones since such assets significantly influencemarket channel access. Farmers are encouraged to join cooperatives to enhancetheir chances of accessing critical production inputs and the government shouldprovide extension services to improve production.
Sengupta, et.al.,(2011) pointed out the agribusinesssector has witnessed the entry of a number of corporate houses, which hasfuelled a debate on their effectiveness in meeting the credit and technologycrunch of the economy on one hand and potential exploitation of farmers on theother.
Mishra J .P (2010) inhis study found that farmers are notreceiving benefits as per provision made by regulated market act in favour offarmers just because of disputes between government and traders.Vikram Sorathia , ZakirLaliwala & Sanjay Chaudhary (2005) suggested in their research paper amodel act which is for implementation in all Agricultural Produce MarketingCommittees (APMC) throughout India.
They emphasized on web services basedbusiness process management system, developed to facilitate marketing ofagricultural produce .OBJECTIVES1, To identify themajor challenges of agricultural marketing.2.
To highlight therole of government for improving agricultural marketing.3. To providesuggestions for the improvement of agricultural marketingCHALLENGESIN AGRICULTURAL MARKETING1. Small agricultural holding- The size ofagricultural holding in quite small , scattered and uneconomic. Therefore the cost of producing and transportingagricultural produces increase thereby reducing marketing margins. 2. Lack of storage and warehousingfacilities- Due to lack of storage and warehousing facilities farmers have toforcibly sell out their produce as soon as it is ready. It results in gettinglow price for their agricultural produce.
Most of the existing warehousing andstorage facilities are not up to the mark which also affects the quality ofagricultural produce. 3. Lack of transport facilities- The roadsfrom villages to cities or mandis are not capable to transport agriculturalproduce. Due to lack of proper roads and transport facilities farmers are unableto take their produce to mandis and areunable to receive a fair price for their produce. 4.
Large number of middlemen-The maindefect of Indian agricultural marketing is the presence of too many middlemen.Middlemen on the one hand exploits farmer by purchasing the produce at lowprice and on the other hand exploits customer by demanding high prices leadingto malpractices like black marketing and hoarding. 5.
Lack of Uniformity in Grading andStandardization- Lack of proper grading facilities and standardized measures forcategorization of agricultural produce at the farmer’s level result in weakbargaining power and low price for their produce. 6. Lack of market information – Farmershave no knowledge about markets. Farmers usually have no access to real timeinformation on current and future prices of their produce.
Thus they have toaccept any price offered by middlemen. 7. Lack of Financial Resources- Lack of cheapcredit facilities and high dependence on informal credit channels has affectedthe expansion and modernization of agricultural productivity. Due to lack ofawareness, farmers are forced to borrow money from informal sources of financeat very high rate. Sometimes they sell their produce at cheaper rates atearliest to repay the amount to avoid high interest rate from moneylender.
8. Lack of Farmer’s Organisation- Farmers in India are in unorganized and thereis no any authorized body to guide and protect their interest. On the otherhand , traders are in organized form and powerful to bargain over prices .Under such cases , farmers will be generally exploited and do not getcompetitive price for their produce. ROLEOF GOVERENMENT FOR THE UPLIFTMENT OF AGRICULTURAL MARKETING1. National Agriculture Marketing – has themain objective of facilitating farmers to access markets across the country. Itis a mechanism to develop a national network of physical mandis which can beaccessed online. It seeks to leverage the physical infrastructure of mandisthrough an online trading portals , enabling buyers even outside the state toparticipate in buying agricultural produce.
2. Agriculture Produce MarketingCommittee-The purpose is to create a single agri-market where with singlelicence one can trade agri-produce as well as livestock. The AgriculturalProduce and Livestock Marketing (Promotion and Facilitation) Act, 2017, whichprovides for progressive agricultural marketing reforms, including setting upmarkets in private sector, direct marketing, farmer-consumer markets,de-regulation of fruits and vegetables, e-trading, single point levy of marketfee, issue of unified single trading license in the State, declaringwarehouses/silos/cold storage as market sub-yards and Market Yards of NationalImportance (MNI) so that more markets are available for farmers to sell theirproduce for better prices. 3.
Minimum Support Price – is a form ofmarket intervention by the Government of India to insure agricultural producersagainst any sharp fall in farm prices. The minimum support prices are announcedby the Government of India at the beginning of the sowing season for certaincrops on the basis of the recommendations of the Commission for AgriculturalCosts and Prices (CACP). MSP is price fixed by Government of India to protectthe producer – farmers – against excessive fall in price during bumperproduction years. The minimum support prices are a guarantee price for theirproduce from the Government. The major objectives are to support the farmersfrom distress sales and to procure food grains for public distribution.
In casethe market price for the commodity falls below the announced minimum price dueto bumper production and glut in the market, govt. agencies purchase the entirequantity offered by the farmers at the announced minimum price.Minimum support prices are currentlyannounced for 24 commodities including seven cereals (paddy, wheat, barley,jowar, bajra, maize and ragi); five pulses (gram, arhar/tur, moong, urad andlentil); eight oilseeds (groundnut, rapeseed/mustard, toria, soyabean,sunflower seed, sesamum, safflower seed and nigerseed); copra, raw cotton, rawjute and virginia flu cured (VFC) tobacco. 4. AGRI UDAAN- AGRI UDAAN”- Food and Agribusiness Accelerator 2.0.
Thisprogramme will help to selected innovative startups who will be mentored in toscale up their operations in agri value chain for effective improvement inagriculture. This is a 6 month program in which shortlisted agri startupswith promising innovative business models will be mentored & guided toscale up their operations. 5.
Scheme for Agro-Marine Processing andDevelopment of Agro-Processing Clusters – The objective of SAMPADA is tosupplement agriculture, modernize processing and decrease agri-waste. SAMPADA is an umbrella schemeincorporating ongoing schemes of the Ministry like Mega Food Parks, IntegratedCold Chain and Value Addition Infrastructure, Food Safety and Quality AssuranceInfrastructure, etc. and also new schemes like Infrastructure forAgro-processing Clusters, Creation of Backward and Forward Linkages, Creation /Expansion of Food Processing & Preservation Capacities.6. The NITI Aayog has proposed variousreforms in India’s agriculture sector, including liberal contract farming,direct purchase from farmers by private players, direct sale by farmers toconsumers, and single trader license, among other measures, in order to doublerural income in the next five years. The Ministry of Agriculture, Government ofIndia, has been conducting various consultations and seeking suggestions fromnumerous stakeholders in the agriculture sector, in order to devise a strategyto double the income of farmers by 2022.
SUGGESTIONS FOR IMPROVEMENT IN AGRICULTURAL MARKETINGTheGovernment of India have recently taken several measures to uplift the statusof agricultural sector. But still there is lot to be done in the field ofagricultural marketing. Here are few suggestion for the improvement inagricultural marketing. These are1. Eliminationof Middlemen- The elimination of middlemen is necessary from agriculturalmarketing, because unless the farmer is allowed the facility of direct sales tothe customer, he cannot receive a fair price for it. Thus, with the eliminationof middlemen, ‘consumer grain centers’ should be established where the farmercan sell their produce directly.2. Loan Facilities – The banks are providing easy loan facilities to thefarmers but it is insufficient for completing their requirement.
Small farmersare still facing problem for getting loans and repaying their loan back to thebank. If, the government establishes banks, cooperative societies or otherfinancial organisations then this problem can be solved.3. Development of means ofTransport- The backbone of agricultural marketing is robust means of transport.Thus ,roads should be constructed and maintained inrural areas which remain capable of transportation during all seasons.4. Storage and warehousingfacilities-The government should extend and construct additional storage andwarehousing facilities in rural areas.Government should also provide loan facilities for farmers seeking storage andwarehousing facilities.
5. Training Facilities- For theimprovement of agricultural marketing system , it is necessary that arrangementare made for the appropriate training of the employees related to marketingadministration. Training with regard to the system of regulated market etc is extremely important for the improvement ofagricultural marketing.
6. Market Survey- To make theagricultural marketing system effective it is required to conduct marketresearch . This involves collection of huge data relating to production ,consumption , import , export , demand rice level , standardization ,distributionsystem etc. such data should be published from time to time. CONCLUSIONThe agricultural marketing systemstands today at a critical stage of its evolution. Efficient agriculturalmarketing can ensure better income for the farmers and improved satisfaction tothe consumers.
India is expected to achieve the ambitious goal of doubling farmincome by 2022. The agriculture sector in India is expected to generate greatmomentum in the next few years due to increased investments in agriculturalinfrastructure such as irrigation facilities, warehousing and cold storage. REFERENCESAcharya, S.
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