The document discusses several key issues facing agricultural marketing in India. It notes the growth in agricultural markets in terms of volume, commodities traded, and new roles for private players. However, problems still exist like many intermediaries that increase costs, inadequate infrastructure for storage and handling, and a lack of transparency in pricing. Other issues discussed include the need for improved transportation and logistics to reduce costs, ensuring higher farmgate prices by reducing leakage to intermediaries, strengthening institutions like farmers organizations, and reforming policies like the Essential Commodities Act. Addressing these challenges can help improve efficiency and welfare for farmers.
Agricultural marketing involves all activities related to the movement of farm products from producers to consumers. It includes identifying consumer needs, procuring farm inputs, transporting and storing agricultural goods, and satisfying consumer demand in a profitable way. The marketing process aims to estimate demand for inputs and ensure regular supply of farm outputs. Understanding the perspectives of various stakeholders such as farmers, consumers, traders and government is important. Agricultural products have unique characteristics compared to manufactured goods such as perishability, seasonality, bulkiness and quality variations, which influence marketing approaches.
The agricultural market system involves the process of procuring, storing, processing, packaging, grading, transporting and distributing agricultural commodities from farms to consumers. It allows goods to reach markets across the country through various channels. There is a network that helps move produce from fields to shops so that supermarkets can sell apples, grapes, tomatoes and other foods from different states. The government has implemented several measures to improve agricultural marketing such as regulated markets, infrastructure development, cooperative marketing, and minimum support prices to benefit farmers.
This document discusses concepts related to agricultural marketing. It defines agriculture, marketing, and agricultural marketing. It outlines objectives of studying agricultural marketing such as understanding complexities to provide efficient services and ensuring an efficient system benefits all. The document also covers scope and subject matter, differences between agricultural and manufactured products, importance of agricultural marketing, components and dimensions of markets, and relationships between market structure, conduct, and performance.
Agricultural inputs are essential for rural development and marketing. There are two types: consumable inputs like seeds, fertilizers, and veterinary medicines, and capital inputs like tractors and irrigation equipment. Seeds are a key input and account for 20-25% of productivity, but challenges include inconsistent seed quality and a lack of comprehensive databases. Fertilizer use has increased food grain production significantly in India, though consumption remains low compared to other countries. Pesticide use is also increasing to combat crop losses, with insecticides currently making up over half of the market. Mechanization brings benefits like increased yields and income, though customized equipment and training are needed given India's diverse farm sizes and conditions. Irrigation potential
This document discusses agricultural marketing in Pakistan. It provides an overview of key concepts like markets and marketing. It then discusses agricultural marketing, the ministry and agencies involved in Pakistan's agriculture sector, current agricultural markets and prices, the present marketing system, problems in the system, and possible solutions implemented by the government. The group members are students presenting on this topic for their class assignment.
Agricultural marketing plays an important role in rural development in India by facilitating the exchange of agricultural inputs and outputs. It encompasses issues related to agricultural development and aims to achieve sustainable economic growth. The document defines agricultural marketing and outlines its key functions such as developing agricultural markets and policies that benefit farmers, consumers, buyers and sellers. It also classifies agricultural markets in India based on various factors and discusses challenges faced by India's agricultural marketing system such as seasonality of sales, lack of infrastructure, and multiple middlemen.
This document provides an overview of rural marketing and agriculture production in India. Some key points:
- India is a major global producer of agriculture, ranking 2nd in farm output and among the top 5 producers for many crops. Agriculture contributes 18% to India's GDP.
- Marketing of agricultural produce is complex due to the perishable and seasonal nature of crops. It has traditionally involved many middlemen, exploiting farmers.
- Cooperative marketing societies were formed to help increase farmer incomes and reduce exploitation. However, only a few have succeeded in processing industries.
- Regulated markets were established to improve quality of produce and ensure fair prices for farmers through transparency. They are democratically managed committees.
This document discusses agricultural marketing in India. It defines agricultural marketing as the process of moving agricultural goods from the point of production to the point of consumption through activities like assembling, grading, storage, transportation and distribution. It notes that India's agricultural marketing system faces several challenges, including seasonality of sales, lack of infrastructure, multiple middlemen, and lack of standardization and reliable information. It concludes that agricultural marketing plays a vital role in distributing farm goods but faces issues that must be addressed, such as educating farmers and improving rural infrastructure and market access.
Agricultural marketing involves all activities related to the movement of farm products from producers to consumers. It includes identifying consumer needs, procuring farm inputs, transporting and storing agricultural goods, and satisfying consumer demand in a profitable way. The marketing process aims to estimate demand for inputs and ensure regular supply of farm outputs. Understanding the perspectives of various stakeholders such as farmers, consumers, traders and government is important. Agricultural products have unique characteristics compared to manufactured goods such as perishability, seasonality, bulkiness and quality variations, which influence marketing approaches.
The agricultural market system involves the process of procuring, storing, processing, packaging, grading, transporting and distributing agricultural commodities from farms to consumers. It allows goods to reach markets across the country through various channels. There is a network that helps move produce from fields to shops so that supermarkets can sell apples, grapes, tomatoes and other foods from different states. The government has implemented several measures to improve agricultural marketing such as regulated markets, infrastructure development, cooperative marketing, and minimum support prices to benefit farmers.
This document discusses concepts related to agricultural marketing. It defines agriculture, marketing, and agricultural marketing. It outlines objectives of studying agricultural marketing such as understanding complexities to provide efficient services and ensuring an efficient system benefits all. The document also covers scope and subject matter, differences between agricultural and manufactured products, importance of agricultural marketing, components and dimensions of markets, and relationships between market structure, conduct, and performance.
Agricultural inputs are essential for rural development and marketing. There are two types: consumable inputs like seeds, fertilizers, and veterinary medicines, and capital inputs like tractors and irrigation equipment. Seeds are a key input and account for 20-25% of productivity, but challenges include inconsistent seed quality and a lack of comprehensive databases. Fertilizer use has increased food grain production significantly in India, though consumption remains low compared to other countries. Pesticide use is also increasing to combat crop losses, with insecticides currently making up over half of the market. Mechanization brings benefits like increased yields and income, though customized equipment and training are needed given India's diverse farm sizes and conditions. Irrigation potential
This document discusses agricultural marketing in Pakistan. It provides an overview of key concepts like markets and marketing. It then discusses agricultural marketing, the ministry and agencies involved in Pakistan's agriculture sector, current agricultural markets and prices, the present marketing system, problems in the system, and possible solutions implemented by the government. The group members are students presenting on this topic for their class assignment.
Agricultural marketing plays an important role in rural development in India by facilitating the exchange of agricultural inputs and outputs. It encompasses issues related to agricultural development and aims to achieve sustainable economic growth. The document defines agricultural marketing and outlines its key functions such as developing agricultural markets and policies that benefit farmers, consumers, buyers and sellers. It also classifies agricultural markets in India based on various factors and discusses challenges faced by India's agricultural marketing system such as seasonality of sales, lack of infrastructure, and multiple middlemen.
This document provides an overview of rural marketing and agriculture production in India. Some key points:
- India is a major global producer of agriculture, ranking 2nd in farm output and among the top 5 producers for many crops. Agriculture contributes 18% to India's GDP.
- Marketing of agricultural produce is complex due to the perishable and seasonal nature of crops. It has traditionally involved many middlemen, exploiting farmers.
- Cooperative marketing societies were formed to help increase farmer incomes and reduce exploitation. However, only a few have succeeded in processing industries.
- Regulated markets were established to improve quality of produce and ensure fair prices for farmers through transparency. They are democratically managed committees.
This document discusses agricultural marketing in India. It defines agricultural marketing as the process of moving agricultural goods from the point of production to the point of consumption through activities like assembling, grading, storage, transportation and distribution. It notes that India's agricultural marketing system faces several challenges, including seasonality of sales, lack of infrastructure, multiple middlemen, and lack of standardization and reliable information. It concludes that agricultural marketing plays a vital role in distributing farm goods but faces issues that must be addressed, such as educating farmers and improving rural infrastructure and market access.
Agricultural marketing is a method that includes gathering, storage, preparation, shipping, and delivery of different farming materials across the country. In agriculture marketing, the selling of an agriculture product depends on various components like the demand for the product at that time, availability of storage, etc.
This document discusses various ways that agricultural markets can be classified or categorized. It describes 12 different dimensions by which markets are commonly differentiated, such as by location, area covered, time span, volume of transactions, degree of competition, and more. For each dimension, it provides examples of the types of markets that would fall under each classification. The document serves as a comprehensive overview of the framework by which agricultural markets are studied and analyzed.
The document discusses India's agricultural pricing policy (APP). It provides background on trends in agricultural prices over time. The APP was established in 1968 to provide incentives to farmers and stabilize prices. It uses instruments like minimum support prices, market intervention schemes, and public distribution systems. The policy aims to induce desired crop outputs and increase agricultural production. It has advantages like incentivizing production but also disadvantages like inadequate coverage and rising inflation. Suggestions are made to improve the policy like expanding coverage of crops and improving agricultural markets and public distribution systems. The current scenario outlines minimum support prices announced for various crops.
The three farm ordinances introduced by the Modi government aimed to ease restrictions for farmers and help them access markets, assure returns, and exempt more farm goods. However, some argue higher MSP alone will not solve agrarian distress and revival requires freeing agriculture from restrictions, new technologies, and state reforms. While intended to boost investment, yields, and incomes, ideas remain stalled between intent and execution. The estimated higher costs of $3.5 billion also risk higher borrowing, debt, and interest rates. Recent reforms upset commission agents who benefit from APMCs, but most farmers see no downside. The roles of arhtiyas are debated as some allege exploitation while others argue they provide key services. Large food stockp
Marketing efficiency is measured as the ratio of market output to market input. It can be improved by reducing costs for the same level of satisfaction or increasing satisfaction at a given cost. Marketing costs include all costs incurred by producers and intermediaries in moving products from farms to consumers. Marketing margins are measured as the differences between prices at successive stages of marketing. Common approaches to assessing marketing efficiency include calculating output-to-input ratios, total marketing costs, producer prices received, and consumer prices paid. Factors like perishability, bulkiness, and supply irregularity influence marketing costs.
This document discusses India's agriculture pricing policy. It outlines the objectives of the policy which include raising farmer productivity and incomes. The key elements are fixing prices for agricultural products, inputs, and balancing consumer and farmer interests. Instruments used include minimum support prices, market intervention schemes, and the public distribution system to ensure stable supplies and prices. The policy aims to incentivize production through stable incomes while protecting consumers.
Marketing institutions play an important role in the development of agricultural marketing by establishing rules and regulations, organizations, market infrastructure, and price administration. The document outlines various public sector institutions like the Directorate of Marketing and Inspection, Commission for Agricultural Costs and Prices, Food Corporation of India, and specialized commodity boards that work to regulate and promote agricultural marketing. It also discusses the roles of cooperative sector institutions and associations in providing services to farmers and traders.
India has done well since independence in Agriculture. But the potential for further growth is immense . By adopting the strategies in the paper , the growth can be taken to 6% p.a.
Agribusinesses are important to India for multiple reasons-------- such as their contribution to the economy, the number of people they employ, strategic reasons of food security and providing raw material to other industries.
This presentation says all about Regulation of agricultural marketing, regulated markets, state agricultural marketing boards, recent initiatives for improving agricultural marketing.
The document discusses the terms "agriculture marketing" and "market". Agriculture marketing involves all activities from production to consumption, including moving goods and creating utility. A market consists of buyers and sellers of a product where supply and demand determine price. Markets can be classified based on location, area, time span, transaction volume, nature of transactions, degree of competition, commodities traded, stage of marketing, level of regulation, and population served. The key aspects of a market are the exchange of goods/services between buyers and sellers and the convergence of supply and demand forces to set a single price.
The document discusses India's agricultural price policy and related programs. It provides background on how the policy emerged in response to food scarcity issues. It then describes the objectives of price policy, the need for such a policy, its main features including the institutions involved like CACP and FCI. It also discusses factors considered in price setting, effects of the policy, and shortcomings like limited coverage and ineffective PDS. Suggestions are provided to improve the policy including expanding coverage and improving productivity.
Explains the role of information and knowledge in agricultural marketing, shares the initiatives by Government, private, NGOs and farmers organisations, indicates ICT advances which transform agricultural research-extension-marketing scenarios.
This document provides an overview of farm inputs and management in India. It discusses key agricultural inputs such as seeds, fertilizers, and pesticides. For seeds, it summarizes India's seed industry size, key players, seed replacement rates, export and import policies. For fertilizers, it outlines consumption trends, production, the role of subsidies, and challenges around nutrient use efficiency. For pesticides, it briefly discusses India's pesticide industry and market distribution by product categories. The document aims to educate about the various agricultural inputs and management practices important for Indian agriculture.
This document provides an overview of supply chain management in the context of agricultural economics. It discusses the meaning of supply chain management and defines it as the management of the entire production, distribution, and marketing process that supplies consumers with desired products. It then outlines several common marketing channels for various agricultural commodities like cereals, fruits and vegetables, oilseeds, eggs, and pulses. It also discusses the importance of supply chain management and factors that can affect the length of marketing channels for agricultural products.
This document defines key concepts related to markets and agricultural marketing. It discusses what a market is, the components and dimensions of markets, and provides examples of different types of markets based on location, area, time span, transactions, and other factors. Agricultural marketing is defined as activities involved in supplying farm inputs and moving agricultural products from farms to consumers. The importance of agricultural marketing is also outlined, including optimizing resource use, increasing farm income, widening markets, and creating different utilities for consumers.
The document discusses the role of agro-based industries in the Indian economy. It provides an overview of the key agro-based industry sectors in India including food processing, textiles, tobacco, leather, and paper. It notes that agro-based industries play an important role by adding value to agricultural outputs, generating employment, and strengthening industrial and agricultural linkages. The top agro-based industry sectors are food processing, which contributes around 14% to manufacturing GDP, and textiles, which employs around 40 million workers and exported $41.4 billion in 2014-15.
The document discusses agricultural marketing problems and remedial measures in India. It outlines problems like inadequate storage, lack of grading and standardization, and middlemen malpractices. Remedial measures proposed include cooperative marketing, regulated markets established by statute, and state trading to reduce price fluctuations. Expansion of market infrastructure through regulated markets, improved transport, information dissemination, and grading standards are also suggested.
National Five year plans for rural developmentFarhana Farhath
The First Five-Year Plan launched the Community Development Programme to initiate rural development through community participation and rural extension workers. The Second Plan emphasized industry to relieve pressure on agriculture. Major rural programs included village industries and housing. Subsequent plans introduced new programs like agricultural intensification, nutrition programs, rural employment schemes, and targeted development of drought-prone, tribal and other backward areas.
This document discusses backward regional development plans in India. It begins by outlining the need to identify backward regions to target development efforts. Several national committees are mentioned that developed criteria and methods to delineate backward areas based on factors like income, infrastructure, employment levels etc. Principal methods used include calculating development indices for districts and ranking them. The Backward Area Grant Fund was launched to direct financial resources towards the 250 most backward districts to strengthen local governance and infrastructure. Case studies of state-level plans for backward areas are also referenced.
Agricultural marketing is a method that includes gathering, storage, preparation, shipping, and delivery of different farming materials across the country. In agriculture marketing, the selling of an agriculture product depends on various components like the demand for the product at that time, availability of storage, etc.
This document discusses various ways that agricultural markets can be classified or categorized. It describes 12 different dimensions by which markets are commonly differentiated, such as by location, area covered, time span, volume of transactions, degree of competition, and more. For each dimension, it provides examples of the types of markets that would fall under each classification. The document serves as a comprehensive overview of the framework by which agricultural markets are studied and analyzed.
The document discusses India's agricultural pricing policy (APP). It provides background on trends in agricultural prices over time. The APP was established in 1968 to provide incentives to farmers and stabilize prices. It uses instruments like minimum support prices, market intervention schemes, and public distribution systems. The policy aims to induce desired crop outputs and increase agricultural production. It has advantages like incentivizing production but also disadvantages like inadequate coverage and rising inflation. Suggestions are made to improve the policy like expanding coverage of crops and improving agricultural markets and public distribution systems. The current scenario outlines minimum support prices announced for various crops.
The three farm ordinances introduced by the Modi government aimed to ease restrictions for farmers and help them access markets, assure returns, and exempt more farm goods. However, some argue higher MSP alone will not solve agrarian distress and revival requires freeing agriculture from restrictions, new technologies, and state reforms. While intended to boost investment, yields, and incomes, ideas remain stalled between intent and execution. The estimated higher costs of $3.5 billion also risk higher borrowing, debt, and interest rates. Recent reforms upset commission agents who benefit from APMCs, but most farmers see no downside. The roles of arhtiyas are debated as some allege exploitation while others argue they provide key services. Large food stockp
Marketing efficiency is measured as the ratio of market output to market input. It can be improved by reducing costs for the same level of satisfaction or increasing satisfaction at a given cost. Marketing costs include all costs incurred by producers and intermediaries in moving products from farms to consumers. Marketing margins are measured as the differences between prices at successive stages of marketing. Common approaches to assessing marketing efficiency include calculating output-to-input ratios, total marketing costs, producer prices received, and consumer prices paid. Factors like perishability, bulkiness, and supply irregularity influence marketing costs.
This document discusses India's agriculture pricing policy. It outlines the objectives of the policy which include raising farmer productivity and incomes. The key elements are fixing prices for agricultural products, inputs, and balancing consumer and farmer interests. Instruments used include minimum support prices, market intervention schemes, and the public distribution system to ensure stable supplies and prices. The policy aims to incentivize production through stable incomes while protecting consumers.
Marketing institutions play an important role in the development of agricultural marketing by establishing rules and regulations, organizations, market infrastructure, and price administration. The document outlines various public sector institutions like the Directorate of Marketing and Inspection, Commission for Agricultural Costs and Prices, Food Corporation of India, and specialized commodity boards that work to regulate and promote agricultural marketing. It also discusses the roles of cooperative sector institutions and associations in providing services to farmers and traders.
India has done well since independence in Agriculture. But the potential for further growth is immense . By adopting the strategies in the paper , the growth can be taken to 6% p.a.
Agribusinesses are important to India for multiple reasons-------- such as their contribution to the economy, the number of people they employ, strategic reasons of food security and providing raw material to other industries.
This presentation says all about Regulation of agricultural marketing, regulated markets, state agricultural marketing boards, recent initiatives for improving agricultural marketing.
The document discusses the terms "agriculture marketing" and "market". Agriculture marketing involves all activities from production to consumption, including moving goods and creating utility. A market consists of buyers and sellers of a product where supply and demand determine price. Markets can be classified based on location, area, time span, transaction volume, nature of transactions, degree of competition, commodities traded, stage of marketing, level of regulation, and population served. The key aspects of a market are the exchange of goods/services between buyers and sellers and the convergence of supply and demand forces to set a single price.
The document discusses India's agricultural price policy and related programs. It provides background on how the policy emerged in response to food scarcity issues. It then describes the objectives of price policy, the need for such a policy, its main features including the institutions involved like CACP and FCI. It also discusses factors considered in price setting, effects of the policy, and shortcomings like limited coverage and ineffective PDS. Suggestions are provided to improve the policy including expanding coverage and improving productivity.
Explains the role of information and knowledge in agricultural marketing, shares the initiatives by Government, private, NGOs and farmers organisations, indicates ICT advances which transform agricultural research-extension-marketing scenarios.
This document provides an overview of farm inputs and management in India. It discusses key agricultural inputs such as seeds, fertilizers, and pesticides. For seeds, it summarizes India's seed industry size, key players, seed replacement rates, export and import policies. For fertilizers, it outlines consumption trends, production, the role of subsidies, and challenges around nutrient use efficiency. For pesticides, it briefly discusses India's pesticide industry and market distribution by product categories. The document aims to educate about the various agricultural inputs and management practices important for Indian agriculture.
This document provides an overview of supply chain management in the context of agricultural economics. It discusses the meaning of supply chain management and defines it as the management of the entire production, distribution, and marketing process that supplies consumers with desired products. It then outlines several common marketing channels for various agricultural commodities like cereals, fruits and vegetables, oilseeds, eggs, and pulses. It also discusses the importance of supply chain management and factors that can affect the length of marketing channels for agricultural products.
This document defines key concepts related to markets and agricultural marketing. It discusses what a market is, the components and dimensions of markets, and provides examples of different types of markets based on location, area, time span, transactions, and other factors. Agricultural marketing is defined as activities involved in supplying farm inputs and moving agricultural products from farms to consumers. The importance of agricultural marketing is also outlined, including optimizing resource use, increasing farm income, widening markets, and creating different utilities for consumers.
The document discusses the role of agro-based industries in the Indian economy. It provides an overview of the key agro-based industry sectors in India including food processing, textiles, tobacco, leather, and paper. It notes that agro-based industries play an important role by adding value to agricultural outputs, generating employment, and strengthening industrial and agricultural linkages. The top agro-based industry sectors are food processing, which contributes around 14% to manufacturing GDP, and textiles, which employs around 40 million workers and exported $41.4 billion in 2014-15.
The document discusses agricultural marketing problems and remedial measures in India. It outlines problems like inadequate storage, lack of grading and standardization, and middlemen malpractices. Remedial measures proposed include cooperative marketing, regulated markets established by statute, and state trading to reduce price fluctuations. Expansion of market infrastructure through regulated markets, improved transport, information dissemination, and grading standards are also suggested.
National Five year plans for rural developmentFarhana Farhath
The First Five-Year Plan launched the Community Development Programme to initiate rural development through community participation and rural extension workers. The Second Plan emphasized industry to relieve pressure on agriculture. Major rural programs included village industries and housing. Subsequent plans introduced new programs like agricultural intensification, nutrition programs, rural employment schemes, and targeted development of drought-prone, tribal and other backward areas.
This document discusses backward regional development plans in India. It begins by outlining the need to identify backward regions to target development efforts. Several national committees are mentioned that developed criteria and methods to delineate backward areas based on factors like income, infrastructure, employment levels etc. Principal methods used include calculating development indices for districts and ranking them. The Backward Area Grant Fund was launched to direct financial resources towards the 250 most backward districts to strengthen local governance and infrastructure. Case studies of state-level plans for backward areas are also referenced.
The document summarizes several growth-oriented agricultural programs launched by the Indian government between the 1950s-1990s. The Intensive Agricultural District Programme was launched in 1960-1961 to rapidly increase farm production through complementary inputs and services. The High Yielding Varieties Programme introduced high-yielding wheat, paddy and maize seeds starting in 1964-1965 to boost agricultural output. Operation Flood, starting in 1970, organized dairy cooperatives to increase milk production, procurement, and rural incomes.
The document discusses regional disparity in development in India. It defines regional disparity as wide differences in socioeconomic indicators like income, literacy, health access between states and regions. Causes include natural factors like geography and climate as well as man-made factors like economic and agricultural policies. Key indicators of disparity mentioned are population growth, GDP, per capita income, infrastructure levels, and the Human Development Index. The document outlines various government policies aimed at promoting development in backward regions like hill area, tribal area, and drought-prone area development schemes. It concludes that while complete parity may not be possible, focused investment and policy implementation can help reduce disparities over time.
The document discusses rural employment schemes in India, including the Swarnjayanti Gram Swarozgar Yojana (SGSY) and the National Rural Livelihoods Mission (NRLM). SGSY was launched in 1999 to provide self-employment opportunities to rural poor through skills training and marketing support. It was restructured and renamed as NRLM in 2010 to implement the scheme in a mission mode. NRLM aims to cover all rural poor families through self-help groups and federations, provide financial inclusion, livelihood skills, and wage employment opportunities. It is implemented through national, state, district, block and sub-block level units.
The Intensive Agricultural District Programme (IADP) was launched in 1960 with Ford Foundation assistance to rapidly increase agricultural production in pilot districts. It aimed to concentrate financial, technical, and administrative resources to achieve a self-sustaining increase in productivity. The program was initially implemented in 140 blocks across 7 states and later expanded. Key activities included supplying credit, inputs, marketing support, infrastructure, and education. Implementation involved preparatory and operational phases with farm and village planning. The program was financed through contributions from Ford Foundation, GOI, and state governments and evaluated for effectiveness. Significant achievements included improved productivity benefiting farmers while limitations included a narrow scope and over-reliance on external resources.
The International Association of Administrative Professionals (IAAP) is a non-profit association with 40,000 members across 600 chapters worldwide. It is governed by a 12-member board and owns its headquarters in Kansas City, Missouri. The IAAP aims to elevate standards for administrative professionals and promote their value through education and training programs. It provides information, education, and training to set global standards of excellence for administrative professionals.
There are several reasons to learn about the food marketing system:
1) To prepare for a career in food marketing where knowledge of the field is essential for success.
2) As a food producer to understand how marketing impacts sales, prices, and income.
3) As a consumer whose food supply and prices depend on the production and marketing system.
4) As a citizen with responsibility to shape the food industry in ways that serve the public interest.
- The document discusses the transformation of India's agri-food system, with organized retail rapidly expanding and demand patterns changing as incomes rise.
- While front-end players like retailers and processors are growing, the farm sector remains fragmented. There is a challenge to ensure retail benefits small farmers by "lifting the tail."
- Emerging "rural business hubs" like ITC e-Choupal are attempting to connect small farmers to the supply chain by providing services around inputs, financing, and market access. If scaled successfully, they could help make the food system more inclusive and competitive.
This document discusses the history and development of agriculture marketing in India. It covers topics like the role of agriculture in India's economy, challenges farmers faced with subsistence farming and lack of infrastructure, and government measures taken over time to improve the system. Key interventions mentioned include organizing regulated markets, implementing grading and standardization, establishing storage facilities, disseminating market information, setting support prices, and creating institutions like the Directorate of Marketing and the National Institute of Agricultural Marketing.
Market-Led Extension to Enhance Producer ShareDevegowda S R
The document discusses the transition from production-led extension to market-led extension in India. It notes that while production-led extension made India self-sufficient in food, farmers did not receive remunerative prices. With globalization, a shift to market-led extension is needed. Farmers now need to transform from mere producers to producers and sellers in wider markets. Case studies show how market-led extension through groups, market intelligence, and linkages have increased farmers' incomes and crop productivity in various states. The role of extension is expanding beyond production to focus on quality, market needs, and marketing.
Presentation by B. Minten, A.Z.M. Shafiqul Alam, Uttam K. Dev, A.Z.K. Kabir, D. Laborde, M. Hassanullah and K.A.S. Murshid
Bangladesh Food Security Investment Forum 2010
27 May 2010, Dhaka, Bangladesh
Analysis of Factors for Employment in MSME Clusters - FMCTheBambooLink
This report is an outcome of a study commissioned by Institute of Applied Manpower Research (IAMR) of Planning Commission, Government of India to FMC. The report captured the phenomenon of “jobless growth” and draw policy suggestions, based on the field study of 46 MSME clusters in India. The study outlined major factors that have led to jobless growth and these factors were further analysed with respect to the sectors the clusters fell in.
The document discusses contemporary trends in India's economy and marketing sectors. It notes that India has the 4th largest economy globally and has experienced strong growth rates in sectors like IT and manufacturing. The rural sector remains largely untapped and presents major opportunities. Key strategies discussed include expanding infrastructure and targeting rural consumers through affordable products and technology. The services, retail, and export sectors are also outlined as major drivers of growth. The document concludes by emphasizing India's strong economic outlook and human capital as factors that will support continued prosperity.
This document summarizes a research study on factors influencing the purchase of fast-moving consumer goods (FMCG) by rural consumers in South India. The study identified 24 variables that could influence rural FMCG purchases based on a literature review. Primary data was collected through surveys in 8 districts of South India. Factor analysis identified 5 key factors grouped from the 24 variables: 1) Promotion Factor, which included variables like promotions, relationship marketing, and product education; 2) Lifestyle Factor including variables like branding and packaging; 3) Trust Factor influenced by recommendations and loyalty; 4) Value Factor focused on affordability and needs; 5) Product Factor focused on attributes like quality and features. The research found that promotions and recommendations most significantly influenced
This document analyzes four existing marketing supply chains (SC1-SC4) for brinjal in Allahabad district, India. SC1 involves producers selling directly to consumers. SC2 adds retailers, SC3 adds commission agents, and SC4 adds wholesalers and commission agents. The study found that adding intermediaries significantly increased marketing costs and consumer prices while decreasing producer profits and prices. SC1 had the highest producer profits and lowest consumer prices, while SC4 had the lowest producer profits and highest consumer prices. The researchers conclude the current system can be improved by introducing cooperatives or improving infrastructure, storage, market information and support for producers and intermediaries.
Bread industry in India to reach INR 53 billion by 2020ValueNotes
Bread industry in India, valued at INR 33bn (USD 0.5 billion) in 2015, is expected to grow at a CAGR of 10% to reach INR 53bn (USD 0.8 billion) by 2020
The document discusses market led agriculture, including its evolution, key concepts, dimensions, institutions, issues and policies. It provides an introduction to market led agriculture and how the focus has shifted from production-led agriculture to making farmers producers and sellers. It outlines the objectives and roles of extension workers in market led agriculture. It also discusses some of the key institutions, issues around quality standards, infrastructure and information gaps, and different government policy initiatives and future directions.
FMCG Industry Analysis PESTLE Analysis, SWOT Analysis, Dabur, ITC and Colgate ratios and Industrial analysis.
Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly
and at a relatively low cost. Examples include non-durable goods such as packaged foods, beverages,
toiletries, over-the-counter drugs, and other consumables
The document discusses the fast moving consumer goods (FMCG) industry in India. It provides an overview of the industry, including key details about its size and growth prospects. The FMCG market in India is over Rs. 86,000 crores in size and is growing at 20-30% annually. Major drivers of growth include India's growing economy, large population and changing demographics. The document also outlines the industry segmentation, key players, distribution channels, job opportunities and potential projects.
The document discusses the relationship between globalization and human rights. It begins by defining globalization as an ongoing process of integrating economies, communication, trade, and ideas across time and space. It then defines human rights as universal rights and freedoms guaranteed to all people, as outlined in the Universal Declaration of Human Rights. The document goes on to provide examples of how certain industries have impacted human rights and proposes areas for further action, discussion and resources.
Agriculture produce ROI and Collective MarketingAmit Singh
This document provides an introduction and feasibility study for collective marketing in the Pandhana cluster in Khandwa region of India. It discusses the importance of agricultural marketing in linking farmers to markets. The study examines issues farmers currently face like distress selling, price variations, exploitation by buyers, and a lack of market and credit linkages. The research design involves reviewing literature, developing and testing a survey, administering the survey to farmers, and analyzing production, market conditions, and the potential for a collective marketing model. The feasibility of collective marketing is analyzed from both an implementation and approach-building perspective to gradually improve farmer competitiveness, market conformity, and linkages.
Research Report on the biscuits and cookies industry in IndiaValueNotes
ValueNotes presents a research report on the biscuits and cookies industry in India. This industry report covers intelligence on the market size, growth, industry trends, industry attractiveness, and Porter’s analysis. The report covers fiscal years 2015 through 2019.
The document provides an overview of the fast moving consumer goods (FMCG) industry in India. It discusses that the FMCG sector is the fourth largest sector in the Indian economy, with a total market size of around US$13.1 billion. Food products account for 43% of the overall FMCG market. The sector provides around 3 million employment opportunities and is expected to grow significantly in the coming years due to India's growing population and rising incomes. Some of the top FMCG companies in India include Hindustan Unilever, ITC, Nestle, and Dabur. The FMCG industry contributes substantially to the Indian economy through employment, taxes, and linkages with other sectors such as agriculture, packaging and
GVC analysis elements of successful Global Value Chain (GVC) engagementFAO
This document discusses elements of successful global value chain engagement and analysis. It provides an overview of global value chain analysis, which examines trade in value added terms and how globalization influences development. Key aspects of global value chain analysis include understanding the entire input-output process, mapping value added at different stages, and assessing jobs, wages, and participating firms. Several principles of sustainable food value chain development are outlined, including being economically and socially sustainable, environmentally friendly, and driven by end market demands. Global value chain analysis can help assess impacts on poverty reduction and improve performance for greater engagement in global value chains.
The document summarizes information about the agro and food processing machinery sector in India. It outlines that the sector is growing due to increasing food processing industry activities and drivers like population growth, rising disposable incomes. It faces challenges such as lack of government support and policies, infrastructure issues, and unskilled labor. However, there are also opportunities for the sector to grow since India is a major producer of agricultural commodities and there is rising domestic demand for machinery. The Agro & Food Processing Equipment & Technology Providers Association of India represents members involved in this sector.
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Agricultural Marketing, India,
1. Issues of AgriculturalIssues of Agricultural
Marketing in IndiaMarketing in India
Baban BayanBaban Bayan
Department of Humanities andDepartment of Humanities and
Social Sciences, IIT Guwahati,Social Sciences, IIT Guwahati,
Guwahati-39Guwahati-39
2. IntroductionIntroduction
Agricultural marketing needs adequate attention.Agricultural marketing needs adequate attention.
In recent years, agricultural markets have grownIn recent years, agricultural markets have grown
in size and complexity, not only in terms ofin size and complexity, not only in terms of
volumes and commodities traded but also in termsvolumes and commodities traded but also in terms
of regulatory reforms and proliferation ofof regulatory reforms and proliferation of
marketing channels and arrangements, with newmarketing channels and arrangements, with new
and evolving roles played by both state andand evolving roles played by both state and
private players (Chand, 2012).private players (Chand, 2012).
Sidhu (1995) points out that to sustainSidhu (1995) points out that to sustain
modernization in agriculture and its productivity, amodernization in agriculture and its productivity, a
continuous search for improved methods ofcontinuous search for improved methods of
agricultural marketing is required.agricultural marketing is required.
3. IntroductionIntroduction
Real agricultural markets function in a far moreReal agricultural markets function in a far more
complex manner and perform a wide range ofcomplex manner and perform a wide range of
other tasks critical to the processes of socialother tasks critical to the processes of social
reproduction and development (Jan and white,reproduction and development (Jan and white,
2012).2012).
To ensure producer’s welfare literatures onTo ensure producer’s welfare literatures on
agricultural marketing aptly advocates foragricultural marketing aptly advocates for
availability of sound physical infrastructure,availability of sound physical infrastructure,
transportation, marketing institutions and pricetransportation, marketing institutions and price
support and public policy.support and public policy.
Markets as complex systems perform three roles:Markets as complex systems perform three roles:
efficiency, extraction and exploitation (Jan andefficiency, extraction and exploitation (Jan and
white, 2012).white, 2012).
4. IntroductionIntroduction
The various problems facing the agriculturalThe various problems facing the agricultural
marketing system were summarized by the twelfthmarketing system were summarized by the twelfth
plan working group on agricultural marketingplan working group on agricultural marketing
(Planning Commission 2011)(Planning Commission 2011)
Too many intermediaries resulting in high cost of goods andToo many intermediaries resulting in high cost of goods and
services.services.
Inadequate infrastructure for storage, sorting, grading and post-Inadequate infrastructure for storage, sorting, grading and post-
harvest management.harvest management.
Private sector unwilling to invest in logistics or infrastructurePrivate sector unwilling to invest in logistics or infrastructure
under prevailing conditions.under prevailing conditions.
Price setting mechanism not transparent.Price setting mechanism not transparent.
Ill-equipped and untrained mandi staffIll-equipped and untrained mandi staff
Market information not easily accessible andMarket information not easily accessible and
Essential Commodities Act (ECA) impedes free movement,Essential Commodities Act (ECA) impedes free movement,
storage and transport of produce.storage and transport of produce.
5. IntroductionIntroduction
The empiricist researchers have not paid much heed toThe empiricist researchers have not paid much heed to
scholars who have identified malpractices towardsscholars who have identified malpractices towards
producers by super markets in “buyer-driven” supplyproducers by super markets in “buyer-driven” supply
chains. These include delayed payments; reductions inchains. These include delayed payments; reductions in
prices at the last minute when suppliers have noprices at the last minute when suppliers have no
alternative, removal of suppliers from lists for no goodalternative, removal of suppliers from lists for no good
reason; high interest rates and the use of restrictivereason; high interest rates and the use of restrictive
contracts with tough penalties for any non-compliancecontracts with tough penalties for any non-compliance
(Singh 2011, Jan and white, 2012)(Singh 2011, Jan and white, 2012)
The key issues of Agri. Marketing in India have beenThe key issues of Agri. Marketing in India have been
identified as Market infrastructure,identified as Market infrastructure,
Logistics/transportation, farm gate prices and itsLogistics/transportation, farm gate prices and its
leakages, institutional mechanism, public policyleakages, institutional mechanism, public policy
initiatives and food processing and contract farming.initiatives and food processing and contract farming.
6. Market InfrastructureMarket Infrastructure
Reshma (2010) observes that post harvest lossesReshma (2010) observes that post harvest losses
due to inefficient handling and poor storagedue to inefficient handling and poor storage
structure account for an estimated 10 percent ofstructure account for an estimated 10 percent of
food grains production and 25 percent of fruits andfood grains production and 25 percent of fruits and
vegetables production in India.vegetables production in India.
In India, there are numerous concentrated beltsIn India, there are numerous concentrated belts
where fruits of excellent quality are produced andwhere fruits of excellent quality are produced and
the establishment of post harvesting andthe establishment of post harvesting and
marketing infrastructure will provide needed fillipmarketing infrastructure will provide needed fillip
to achieve significant volumes for exports (Yadav,to achieve significant volumes for exports (Yadav,
1995).1995).
7. Market InfrastructureMarket Infrastructure
Marketing infrastructure has two broadMarketing infrastructure has two broad
dimensions- quantity and quality (Chand, 2012).dimensions- quantity and quality (Chand, 2012).
Widening gap between the rise in marketedWidening gap between the rise in marketed
surplus and the number of markets (Chand,surplus and the number of markets (Chand,
2012).2012).
As India is lagging behind in establishment ofAs India is lagging behind in establishment of
enough markets, it is also lagging behind inenough markets, it is also lagging behind in
improving the quality of the existing markets.improving the quality of the existing markets.
8. Market InfrastructureMarket Infrastructure
Amenities Number of markets with facility (%)
Common auction platform (Covered) 64
Common auction platform (Open) 67
Common drying yards 26
Grading equipment 30
Canteen 43
Drinking water taps 28
Seating benches 28
Public address system 34
Price display board 61
Table: Facilities/Amenities in regulated markets.Table: Facilities/Amenities in regulated markets.
Source: Reproduced from Ramesh Chand (2012), EPW: vol. 47, No. 52, pp.58
9. Market InfrastructureMarket Infrastructure
To enhance the marketing prospects for the farmers,To enhance the marketing prospects for the farmers,
seller driven supply chain in marketing becomesseller driven supply chain in marketing becomes
mandatory.mandatory.
In case of perishable horticultural commodities likeIn case of perishable horticultural commodities like
fruits and vegetables, production plan should befruits and vegetables, production plan should be
preceded by marketing plan (Kahlon and George,preceded by marketing plan (Kahlon and George,
2012).2012).
““Regulated markets”Regulated markets”
In 2008, number of regulated markets in India wasIn 2008, number of regulated markets in India was
7,566 against 7,177 in 2001 registering an increase7,566 against 7,177 in 2001 registering an increase
of only 389 in 7 years period (Indiastat.com).of only 389 in 7 years period (Indiastat.com).
10. Transportation/LogisticsTransportation/Logistics
To ensure even distribution of agricultural outputTo ensure even distribution of agricultural output
across the country, transportation facility isacross the country, transportation facility is
essential: an win-win outcomeessential: an win-win outcome
There is a transition in retailing from production orThere is a transition in retailing from production or
technology push to market pull which requiredtechnology push to market pull which required
producers and suppliers to increase flexibility andproducers and suppliers to increase flexibility and
focus on the speed and reliability of delivery.focus on the speed and reliability of delivery.
(Arnold, 2010).(Arnold, 2010).
Transport is important because of its strategicTransport is important because of its strategic
implication forimplication for costcost (Yadav, 1995).(Yadav, 1995).
11. Transportation/LogisticsTransportation/Logistics
There is increasing attention given to product quality,There is increasing attention given to product quality,
for which a significant component was determined byfor which a significant component was determined by
the inbound and outbound logistics (Arnold, 2010).the inbound and outbound logistics (Arnold, 2010).
At present the 2/3At present the 2/3rdrd
of fruits and vegetables isof fruits and vegetables is
transported by roads in the country. But increasingtransported by roads in the country. But increasing
diesel prices are making the road transportation costly.diesel prices are making the road transportation costly.
Arnold (2010) identifies factors related to productionArnold (2010) identifies factors related to production
and those related to logistics, where the later includesand those related to logistics, where the later includes
limitations on a) Transport infrastructure and services,limitations on a) Transport infrastructure and services,
b) knowledge concerning markets and theb) knowledge concerning markets and the
characteristics of final demand, c) access to distributioncharacteristics of final demand, c) access to distribution
and retail networks, d) availability and financial termsand retail networks, d) availability and financial terms
of trade finance.of trade finance.
12. Farm gate price and its leakagesFarm gate price and its leakages
The prices of agricultural output are consistently rising.The prices of agricultural output are consistently rising.
The farmers’ stake at the price rise has remained lowThe farmers’ stake at the price rise has remained low
with increased participation of non producing agents inwith increased participation of non producing agents in
agricultural marketing.agricultural marketing.
Middleman successfully turned marketing policies toMiddleman successfully turned marketing policies to
their benefit dictating terms to producers and thwartingtheir benefit dictating terms to producers and thwarting
modern capital from entering agricultural marketing.modern capital from entering agricultural marketing.
Some examples of this are a) increasing theSome examples of this are a) increasing the
commission rates of arhtiyas without any justification;commission rates of arhtiyas without any justification;
b) rejecting direct payment to producers, which wouldb) rejecting direct payment to producers, which would
bypass commission agents and c) determining pricesbypass commission agents and c) determining prices
through non transparent methods (Chand, 2012).through non transparent methods (Chand, 2012).
13. Farm gate price and its leakagesFarm gate price and its leakages
The regulated markets that came to protect theThe regulated markets that came to protect the
interests of the farmers deviated themselves from theirinterests of the farmers deviated themselves from their
goal.goal.
It needs to be carefully worked whether revenueIt needs to be carefully worked whether revenue
considerations are more important than increments inconsiderations are more important than increments in
price realization to producers from selling produceprice realization to producers from selling produce
outsideoutside mandimandi; and whether there are ways to take; and whether there are ways to take
care of the state revenue from agricultural marketing ifcare of the state revenue from agricultural marketing if
produce does not pass throughproduce does not pass through mandimandis (Chand, 2012).s (Chand, 2012).
A competitive market structure is expected to helpA competitive market structure is expected to help
producers in getting remunerative prices of theirproducers in getting remunerative prices of their
produce, provided role of middlemen in grabbingproduce, provided role of middlemen in grabbing
marketing margin is less or non-existent –marketing margin is less or non-existent – InIn
agriculture it is unwarrantedagriculture it is unwarranted (Jan and White, 2012).(Jan and White, 2012).
14. Farm gate price and its leakagesFarm gate price and its leakages
To ensure that farmers get adequate returns,To ensure that farmers get adequate returns,
conglomerating the output of the small holder farmersconglomerating the output of the small holder farmers
and channelizing in bulk to markets becomesand channelizing in bulk to markets becomes
necessary.necessary.
Sidhu (1995) observes that the traditional middlemenSidhu (1995) observes that the traditional middlemen
are often considered as hoarders and speculators andare often considered as hoarders and speculators and
blamed for everything that goes wrong in theblamed for everything that goes wrong in the
marketing system.marketing system.
The interaction between marketing and production isThe interaction between marketing and production is
often overlooked.often overlooked.
There is no harm for producers to look for the leastThere is no harm for producers to look for the least
better number of middlemen when there remainsbetter number of middlemen when there remains
managerial complexity in supply chainmanagerial complexity in supply chain
15. Institutional MechanismInstitutional Mechanism
An effort to preserve farmers’ interests may be laidAn effort to preserve farmers’ interests may be laid
through the provision of institutional facilities likethrough the provision of institutional facilities like
small farmers’ associations, producers’small farmers’ associations, producers’
organization, co-operatives etc. apart from physicalorganization, co-operatives etc. apart from physical
facilities.facilities.
The farmers’ organizations and cooperatives notThe farmers’ organizations and cooperatives not
only lower the transaction costs of the firms, butonly lower the transaction costs of the firms, but
also lower input costs for the farmers and providealso lower input costs for the farmers and provide
them with better bargaining power (Singh, 2012).them with better bargaining power (Singh, 2012).
The more important issue of providing theThe more important issue of providing the
institutional and operational framework whichinstitutional and operational framework which
makes the facilities viable is ignored (Sidhu, 1995).makes the facilities viable is ignored (Sidhu, 1995).
16. Institutional MechanismInstitutional Mechanism
Cooperatives were developed as a countervailingCooperatives were developed as a countervailing
force to curb the speculative activities of privateforce to curb the speculative activities of private
trade (Kahlon and George, 1995).trade (Kahlon and George, 1995).
Collective action through cooperatives orCollective action through cooperatives or
associations is important not only to be able to buyassociations is important not only to be able to buy
and sell at a better price, but also to help smalland sell at a better price, but also to help small
farmers adapt to new patterns and much greaterfarmers adapt to new patterns and much greater
levels of competition (Singh, 2012).levels of competition (Singh, 2012).
Marketing practice should come in a packageMarketing practice should come in a package
17. Institutional MechanismInstitutional Mechanism
Jan and White (2012) says, “if the marketingJan and White (2012) says, “if the marketing
system is conceived as having boundaries thensystem is conceived as having boundaries then
power in markets flow not just through sociallypower in markets flow not just through socially
engineered organizations, noted among which areengineered organizations, noted among which are
business associations and lobbies, but also throughbusiness associations and lobbies, but also through
social institutions such as the caste structure,social institutions such as the caste structure,
patriarchy, ethnic solidarity, religious authority andpatriarchy, ethnic solidarity, religious authority and
the multifarious practices of locality”the multifarious practices of locality”
More emphasis on quality standards, frequentMore emphasis on quality standards, frequent
handling of processed goods etc. will make greaterhandling of processed goods etc. will make greater
demands on the physical and institutional facilitiesdemands on the physical and institutional facilities
in the market (Kahlon and George, 1995).in the market (Kahlon and George, 1995).
18. Public PolicyPublic Policy
In India, the top policy concerns have been priceIn India, the top policy concerns have been price
regulation through the Essential Commodities Actregulation through the Essential Commodities Act
and the Public Distribution Systems (PDS) andand the Public Distribution Systems (PDS) and
parametric regulation through the regulation ofparametric regulation through the regulation of
markets-Agricultural Produce Market Committeesmarkets-Agricultural Produce Market Committees
(APMC) Acts (Swaminathan, 2000).(APMC) Acts (Swaminathan, 2000).
Essential Commodities Act (1955) provides forEssential Commodities Act (1955) provides for
instruments like license, permit, regulation andinstruments like license, permit, regulation and
orders for a) price control, b) storage, c) stockingorders for a) price control, b) storage, c) stocking
limits d) movement of product e) distribution f)limits d) movement of product e) distribution f)
disposal g) sale h) compulsory purchase by thedisposal g) sale h) compulsory purchase by the
government and i) sale (levy) to the governmentsgovernment and i) sale (levy) to the governments
under the ECA (Chand, 2012).under the ECA (Chand, 2012).
19. Public PolicyPublic Policy
Agricultural Produce Marketing Committee Acts doAgricultural Produce Marketing Committee Acts do
not follow the setting up of parallel competitivenot follow the setting up of parallel competitive
markets. The markets set up under the acts also domarkets. The markets set up under the acts also do
not provide direct and free marketing, organizednot provide direct and free marketing, organized
retailing, smooth raw material supplies to agroretailing, smooth raw material supplies to agro
processing industries, competitive trading,processing industries, competitive trading,
information exchange, etc.information exchange, etc.
The model Act (2003) provides for legal persons,The model Act (2003) provides for legal persons,
growers and local authorities to establish newgrowers and local authorities to establish new
markets, establishment of direct purchase centers,markets, establishment of direct purchase centers,
consumers/farmers markets for direct sale,consumers/farmers markets for direct sale,
promotion of public-private partnership in thepromotion of public-private partnership in the
management and development of agriculturalmanagement and development of agricultural
markets, regulation and promotion of contractmarkets, regulation and promotion of contract
farming etc. (Dev, 2007).farming etc. (Dev, 2007).
20. Public PolicyPublic Policy
The model APMC Act notes that the monopoly ofThe model APMC Act notes that the monopoly of
government regulated wholesale markets hasgovernment regulated wholesale markets has
prevented the development of a competitiveprevented the development of a competitive
marketing system (Banerji et al., 2012).marketing system (Banerji et al., 2012).
As critics of neo-liberal policy prescription haveAs critics of neo-liberal policy prescription have
demonstrated, “deregulation agenda” are primarilydemonstrated, “deregulation agenda” are primarily
geared towards removing all traces of interventiongeared towards removing all traces of intervention
(with all their flaws) that aim to bring at least(with all their flaws) that aim to bring at least
some benefit from the otherwise oppressivesome benefit from the otherwise oppressive
capitalist regime to labour, petty producers andcapitalist regime to labour, petty producers and
consumers, while retaining and even strengtheningconsumers, while retaining and even strengthening
those aspects of state intervention that explicitlythose aspects of state intervention that explicitly
benefit capital (Ghosh 2012, Patnaik,1996).benefit capital (Ghosh 2012, Patnaik,1996).
21. Public PolicyPublic Policy
The model APMC Act proposed in 2003 notes thatThe model APMC Act proposed in 2003 notes that
the monopoly of government regulated wholesalethe monopoly of government regulated wholesale
markets has prevented the development of amarkets has prevented the development of a
competitive marketing system (Banerji et al.,competitive marketing system (Banerji et al.,
2012).2012).
As critics of neo-liberal policy prescription haveAs critics of neo-liberal policy prescription have
demonstrated, “deregulation agenda” are primarilydemonstrated, “deregulation agenda” are primarily
geared towards removing all traces of interventiongeared towards removing all traces of intervention
(with all their flaws) that aim to bring at least(with all their flaws) that aim to bring at least
some benefit from the otherwise oppressivesome benefit from the otherwise oppressive
capitalist regime to labour, petty producers andcapitalist regime to labour, petty producers and
consumers, while retaining and even strengtheningconsumers, while retaining and even strengthening
those aspects of state intervention that explicitlythose aspects of state intervention that explicitly
benefit capital (Ghosh 2012, Patnaik,1996).benefit capital (Ghosh 2012, Patnaik,1996).
22. Public PolicyPublic Policy
The main instruments of agricultural price policy haveThe main instruments of agricultural price policy have
been 1) Assured prices to producers through the systembeen 1) Assured prices to producers through the system
of Minimum Support Prices (MSPs) implementedof Minimum Support Prices (MSPs) implemented
through obligatory procurement 2) Inter and intra-yearthrough obligatory procurement 2) Inter and intra-year
price stability through open market operations, 3)price stability through open market operations, 3)
Maintaining buffer stock, 4) Distributing food grains atMaintaining buffer stock, 4) Distributing food grains at
reasonable prices through the PDS.reasonable prices through the PDS.
The price policy implemented in the last four and a halfThe price policy implemented in the last four and a half
decades has mainly benefitted wheat and rice amongdecades has mainly benefitted wheat and rice among
food grains and sugar cane and cotton among otherfood grains and sugar cane and cotton among other
crops (Chand, 2012).crops (Chand, 2012).
FDI in retail is fast becoming an important issue aroundFDI in retail is fast becoming an important issue around
which analysis, policy and politics is playing out inwhich analysis, policy and politics is playing out in
recent period.recent period.
23. Public PolicyPublic Policy
The struggle in retail may be viewed as one betweenThe struggle in retail may be viewed as one between
two forms of capital; large scale corporate capital ontwo forms of capital; large scale corporate capital on
the one hand and smaller scale (informal) capital onthe one hand and smaller scale (informal) capital on
the other (Frodin 2012).the other (Frodin 2012).
With the large scale exodus from agriculture and theWith the large scale exodus from agriculture and the
tardy pace of job creation in industry, petty tradetardy pace of job creation in industry, petty trade
has become one of the major sources of livelihoodshas become one of the major sources of livelihoods
for a vast array of India’s poor (Jan and White,for a vast array of India’s poor (Jan and White,
2012).2012).
According to one estimate, around 40 million peopleAccording to one estimate, around 40 million people
live on activities related to retail sector, 98% oflive on activities related to retail sector, 98% of
which are within the local informal sector (Sridhar,which are within the local informal sector (Sridhar,
2007).2007).
24. Public PolicyPublic Policy
Adequate field experience is a must to find a moreAdequate field experience is a must to find a more
holistic agricultural marketing policy in the country.holistic agricultural marketing policy in the country.
Kahlon and George (1995) rightly observe that ourKahlon and George (1995) rightly observe that our
marketing policies will not make much headway withoutmarketing policies will not make much headway without
developing organized marketing, processing, storage,developing organized marketing, processing, storage,
quick transportation and market intelligence services.quick transportation and market intelligence services.
Agricultural marketing is a state subject and manyAgricultural marketing is a state subject and many
states are either slow or reluctant to implement variousstates are either slow or reluctant to implement various
reforms and legislations related to marketing, evenreforms and legislations related to marketing, even
though they are considered necessary for developingthough they are considered necessary for developing
the market and trade and improving the welfare ofthe market and trade and improving the welfare of
producers and consumers (Chand, 2012).producers and consumers (Chand, 2012).
25. Food Processing and ContractFood Processing and Contract
FarmingFarming
Availing the food processing arrangements helpsAvailing the food processing arrangements helps
farmers particularly engaged with production offarmers particularly engaged with production of
perishable horticultural products.perishable horticultural products.
Market structure has changed which encourages arrivalMarket structure has changed which encourages arrival
of more processed products.of more processed products.
There are three vital factors for the steadily increasingThere are three vital factors for the steadily increasing
demand for processed fruits and vegetables. a)demand for processed fruits and vegetables. a)
Durability which obviates the problem of perishability,Durability which obviates the problem of perishability,
b) New taste, texture and appearance attributes andb) New taste, texture and appearance attributes and
product combinations, which appeal to consumers, c)product combinations, which appeal to consumers, c)
Convenience for use and reduction of cleaning andConvenience for use and reduction of cleaning and
preparation requirements (Yadav, 1995).preparation requirements (Yadav, 1995).
26. Food Processing and ContractFood Processing and Contract
FarmingFarming
Kahlon and George (1995) opine that processingKahlon and George (1995) opine that processing
practices have to be evolved which reduces thepractices have to be evolved which reduces the
cost of shipments, adds value to the product,cost of shipments, adds value to the product,
creates employment and ensure quality.creates employment and ensure quality.
Out of total production of fruits and vegetablesOut of total production of fruits and vegetables
every year, less than 2 per cent goes intoevery year, less than 2 per cent goes into
processing units. Its share of fruits and vegetablesprocessing units. Its share of fruits and vegetables
in global trade is not even 1 per cent.in global trade is not even 1 per cent.
The food processing units in the country will haveThe food processing units in the country will have
to strive hard for winning the confidence of theto strive hard for winning the confidence of the
consumers (Yadav, 1995).consumers (Yadav, 1995).
27. Food Processing and ContractFood Processing and Contract
FarmingFarming
Contract farming can potentially have larger beneficial effectsContract farming can potentially have larger beneficial effects
on products that are perishable, that have larger supplyon products that are perishable, that have larger supply
chains than wheat or rice, and where quality improvementchains than wheat or rice, and where quality improvement
would matter a great deal more (Banerji et al., 2012).would matter a great deal more (Banerji et al., 2012).
The expectation behind contract farming is based uponThe expectation behind contract farming is based upon
removal of intermediaries and introducing an assuredremoval of intermediaries and introducing an assured
purchase of output of farmers by the contracting party at apurchase of output of farmers by the contracting party at a
remunerative price for him.remunerative price for him.
Contractual relationship overlooks the fact that theContractual relationship overlooks the fact that the
contractual relationship between producers and largecontractual relationship between producers and large
corporations reduces smallholders with less bargaining powercorporations reduces smallholders with less bargaining power
effectively to wage-labour status with the former decidingeffectively to wage-labour status with the former deciding
everything from the type of crop, choice of inputs, theeverything from the type of crop, choice of inputs, the
amount of credit, and timing of sales (Jan and white, 2012).amount of credit, and timing of sales (Jan and white, 2012).
28. ConclusionConclusion
Effective agricultural marketing is capable of bringingEffective agricultural marketing is capable of bringing
welfare to actual producers away from the nonwelfare to actual producers away from the non
producing agents who grab maximum marketing marginproducing agents who grab maximum marketing margin
in the supply chain of agricultural output.in the supply chain of agricultural output.
Apart from shortages in facilities like transportation,Apart from shortages in facilities like transportation,
market infrastructure, institutions and food processingmarket infrastructure, institutions and food processing
and contract farming arrangements, there is seriousand contract farming arrangements, there is serious
policy dilemma in providing needed agriculturalpolicy dilemma in providing needed agricultural
marketing framework in India.marketing framework in India.
Exploitation of farmers is to the extent that only a 20Exploitation of farmers is to the extent that only a 20
paisa of consumers’ 1 rupee goes to actual producerspaisa of consumers’ 1 rupee goes to actual producers
and the remaining 80 paisa goes to intermediariesand the remaining 80 paisa goes to intermediaries
(Dev, 2007).(Dev, 2007).
29. ConclusionConclusion
Unorganized and small holder farmers are the mostUnorganized and small holder farmers are the most
vulnerable section in the agricultural marking processvulnerable section in the agricultural marking process
in the country against the other relatively better offin the country against the other relatively better off
actors like small and big traders and retailers etc.actors like small and big traders and retailers etc.
In India, a serious consequence of selling at aIn India, a serious consequence of selling at a
designated place, the yard of adesignated place, the yard of a mandimandi, is that once, is that once
agricultural produce has been brought to it, it isagricultural produce has been brought to it, it is
seldom taken back in the event of any unfair dealseldom taken back in the event of any unfair deal
(Chand, 2012).(Chand, 2012).
Current policies on agricultural marketing has to beCurrent policies on agricultural marketing has to be
revisited and designed in the way that the actualrevisited and designed in the way that the actual
producers gain the most out of it.producers gain the most out of it.
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