Despite its importance, agricultural marketing faces various institutional and infrastructural related issues in India. Elaborate. Also, enlist the measures that have been taken in this context.
Introduction
India is an agricultural based economy and thus the scope of agricultural marketing becomes very crucial.
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Main Body
INSTITUTIONAL ISSUE: APMC choking - According to APMC Act all the agricultural produce has to pass through the APMC markets thus forcing farmers to submit his will to sell in open market. CARTELISATION: middleman in mandis form cartelisation of castels and dictate the prices leading to non realisation of prices.
LACK OF CROP INSURANCE: the crops of farms are not insured in that of the cases leading to total destruction in case of climate vagaries. RESTRICTION ON STOCKPILING: as essential commodity act doesn't allow black marketers and stockpiling for food premium. INFRASTRUCTURAL ISSUE: STORAGE: Lack of warehouses and coldstorage put the farmers at the whims of APMC middlemen and force them to do distress selling. CONNECTIVITY: poor condition or even unavailability of roads cost the farmers precious time after harvest. Eg. in case of sugarcane it leads to drying up of cane syrup and thus low price. LOW DENSITY OF MANDIS: divide of mandis vary from every 5 kms in Punjab to every 30 km in Assam.
Measures taken - New Farm laws have been introduced. e-NAM for country-wide price realisation. Warehouse receipts now utilized as a security. PM Grain Udak Yojana for cement. Private Entrepreneurship Guaranty scheme for warehouse and cold storage.
Conclusion
Streamlining agricultural marketing and ensuring a smooth supply chain could prove to be a pivot around which India can become a crucial agri export hub in the world.
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Suyash Dwivedi
Transport & Marketing of Agricultural Produce & Issues & Related Constraints
Agricultural Marketing Issues
Institutional and Infrastructural Challenges
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