9. Problems of Agriculture Marketing
1) Too many Middlemen
2) Forced or Distress Sales
3) Lack of Organization
4) Seasonal Price fluctuation
5) Insufficient Infrastructure facilities
6) Inadequate Credit
10. Marketing forms Introduced by the
Government
FORMS OF MARKETING :-
1) Co-operative marketing
2) Regulated Markets
3) State Trading
11. CO-OPERATING MARKETING
It has a three tier structure with primary marketing societies at the village level,
central societies at the district level and state marketing societies at the state level.
12. Functioning of the cooperative marketing
1) Members agree to sell their surplus produce to the marketing cooperative
societies.
2) Members get an advance from the society on their agricultural activities and also
to meet other needs.
3) Society processes the produce, grades it and then disposes it off in the market at
a time when the prices are considered to be appropriate
4) Members are then paid the balance money.
13. To provide other services and empower the framers, cooperatives societies like
processing, storage (warehouse) etc.
To assist in the task of storage the National Development Corporation was formed.
For procurement, distribution, export and import of agricultural products the
National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)
established.
14. REGULATED MARKETS
A REGULATED MARKET IS ADMINISTERED BY A MARKET COMMITTEE which
consists of representatives of the state government, the legal bodies like district
board, the traders, the commission agents and the framers.
15. The market committee ensures:
1) Elimination of malpractices
2) Fixing market charge
3) Remunerative prices
4) Redressing grievances
5) Information about prices
6) Help in securing storage facilities
7) Bringing down the price spread
16. State Trading
It was introduced by the central government and also by some state governments.
FCI, the Maharashtra State monopoly Procurement Scheme, Jute Corporation of India
are some of the examples of state trading.
17. Market Infrastructure
It is essential to have the required infrastructure in the following forms:-
1) Transport Facilities
2) Warehousing Facilities
3) Construction of Rural Godowns
4) Establishing Regulated Markets
5) Institutional Finance
18. Market Information
Following Facilities are available, at present, to obtain market information:-
1) Information is provided through mass media about prices.
2) Marketing Surveys are conducted to secure information about the various
bottlenecks for competitive market.
3) Grading and Standardization of agricultural commodities have been introduced.
19. A large number of commodities are covered under the Agricultural Produce (grading
and Marketing) Act 1937.
The standardized commodities through grading are stamped with the seal of the
Agricultural marketing Department-AGMARK
20. Marketing Training
Marketing training is essential for the personnel involved in marketing, in the
following areas:-
1) Marketing Skills
2) Acquiring Information
3) Liaison officers
4) Rules and Regulations
5) Grading and Standardization
21. Charan Singh National Institute of Agricultural Marketing. It undertakes several
programmes such as:
1) Teaching, research and consultancy services.
2) Conduct training courses for the personnel involved in agricultural activities.
3) Training in better management techniques in the area of agricultural
22. ENABLING ENVIRONMENT
An enabling environment is a set of inter-related conditions- such as legal,
organizational, fiscal, information, political and cultural that enable the
participants to engage effectively in the process.
23. It is necessary to create an enabling environment by all the players involved as
explained below:-
1) Production
2) Transport
3) Grading
4) Infrastructure
5) Information
24. 6) Supply Chain Co-ordination
7) Legal and Policy Framework
8) Institutional System
9) Regulatory System
10) Ease of Doing Business
25. RECENT DEVELOPMENT
Following are some of the recent development:-
The Model APMC:
1) Provides for direct sale of farm produce to contract farming sponsors
2) To set up ‘special markets’ for ‘specified agricultural commodities’, mostly
perishables.
3) To have a single levy of market fee
4) Provides direct sale to consumers
5) Provides for creating required market infrastructure
26. The central government through modification of APMCs and using constitutional
provisions aims at creating a National Agricultural Market (NAM) for agricultural
produce.
Recently it was suggested to disband the APMCs as they create more obstacle in the
functioning of free markets.
27. It was suggested to have terminal markets which would operate on ‘HUB AND
SPOKE’ format, where the terminal market (the hub) would be linked to a number
of collection centers (spoke)
28. The ‘Inter Ministerial Task Force on agricultural marketing Reforms” has listed
following priority areas
1) Legal reforms
2) Direct marketing
3) Market infrastructure
4) Warehousing receipt system
5) Forward and future markets
6) Price support policy
7) Marketing extension, training and research