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developments in agricultural marketing.pptx

- Recent developments in agricultural marketing in India include increased storage capacity through warehouses, growth of regulated markets and rural primary markets, and expansion of credit availability. - Institutional developments include the Agricultural Produce Market Committees Act, Warehousing Development and Regulation Act, and schemes like Agricultural Marketing Infrastructure, Marketing Research and Information Network, and Strengthening of Agmark Grading Facilities. - Food processing, exports, and cold chain infrastructure have also grown significantly but still have gaps compared to requirements. Overall, various efforts have been made to modernize agricultural markets in India but challenges remain around storage capacity and access to markets.

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Recent Developments in Agricultural Marketing & It’s Impact on Farmers By- Sanjay (2014A07M) Department Of Agricultural Economics, CCS Haryana Agricultural University, Hisar-125004 28,November,2015
Developments Physical Markets Storage Credit Food processing Institutional ISAM FSSA AMS FDI Volume of Transactions INDIA
Agricultural Markets in INDIA (As on 31 March,2014) No. Of Regulated Markets: 7190 No. Of Rural Primary Markets: 22505 Total: 28994 Availability of Markets Area Served Average area Served by a Market 115 sq. km Av. Area Served by a Regulated market 457 sq. km Variation In Avg. Area served 118 sq km in Punjab to 11,214 sq km in Meghalaya Recommendations by National Farmers Commission -Availability of Markets within 5 km radius (approx. 80 sq km)(2004) 41838 Shortage 12844 Source: Final Report of Committee of State Ministers, In-charge of Agriculture Marketing to Promote Reforms,2015
Storage(Warehouses) 108.08 110.74 121.07 131.82 131.72 0 20 40 60 80 100 120 140 2010-11 2011-12 2012-13 2013-14 2014-15 Capacity (Million MT) Total Available Warehouse Capacity in India Total SWC CWC FCI State Gov. Cooperatives Private Total Estimated Surplus by 2017 (Working Group Report on AMI,2015) 150 Million MT Present Storage Capacity 131.72 Million MT Estimated capacity by 2017 136 Million MT Gap 14Million MT % Share of Each Agency: FCI(30), SWC(24),CWC(7),State(9), Co-op(12), Private(15)
Storage(Warehouses) Ongoing Developments 1. Warehouses to be declared as Mandis a. In pipeline to allow the registered warehouses with the WDRA to be notified as Mandis under the relevant APMC Act. b. Karnataka & Punjab declared some silos as Mandis. 2. Procurement of food grains for TPDS 3. Directory Of Warehouses (www.warehousedirectory.in) Ongoing Schemes & Status 1. Private Entrepreneurs Gaurantee Scheme, 2008  121 lakh MT capacity completed, 93 lakh MT by the private and 28 lakh MT by CWC / SWCs 2. Gramin Bhandaran Yojana  Rs 4000 Cr allocated in 12th five year plan to create storage capacity of 26 Million MT 3. Scheme for Financing Warehousing Infrastructure under RIDF  Rs. 5000 Cr allocated during 2014-15. 4. NBARD refinance: 294.21 Cr (2014-15)
Negotiable Warehouse Receipt  Demand originated by recommendation of AIRCS in 1951  Launched in 2007 under Warehousing (Development and Regulation) Act, 2007  Can be in both paper and electronic forms.  Advance up to 65% of value by Banks  For discouraging distress sales:  Government of India has extended the benefit of interest subvention on crop loan scheme to small and marginal farmers having Kisan Credit Card (KCC) for a further period of up to six months post-harvest on the same rate as available to crop loan against negotiable warehouse receipt for keeping their produce in the warehouses during the year 2011-12. The scheme has been extended during 2012- 13 and 2013-14.  The loan should be for a period of six months and the maximum loan amount should be enhanced to Rs. 5.0 lakh  The WDRA in consultation with NHM and NHB has introduced negotiable warehouse receipt system in cold storages  Recommended by to make NWR’s transferable without physical delivery. Commodities Notified: 123 Agricultural & 26Horticultural Recent Developments
Cold Chain Type of Infrastructure Infrastructure Req. Infrastructure Created All India Gap Pack-house (No.) 70,080 249 69,831 Cold Storage (Bulk) (Million MT) 34.1 31.8 3.2 Cold Storage (Hub) (Million MT) .93 Reefer Vehicles (No.) 61,826 9,000 52,826 Ripening Chamber (No.) 9,131 812 8,319 Note: Out of Total 7129 only 5801 are functional with a running capacity of only 26.7 Million. Source: All India Cold-chain Infrastructure Capacity (Assessment of Status & Gap), 2015(National Centre for Cold-chain Development ) AP 5% Bihar 5% Gujarat 7% Haryana 2% Punjab 6% Uttar Pradesh 42% West Bengal 18% Maharashtra 2% Others 13% All India distribution of Cold Stores capacity as of 31.07.2015 Growth of cold Storage in INDIA The survey indicated that although most of the cold storages facilitate transportation of commodities, 79% don’t own any transportation facility 96 % of the cold storage are in Pvt. Sector; more than 75 per cent of the capacity is utilized only for potato and only about 23 percent are under multi commodity category
Food Processing Andhra Pradesh 23% Tamil Nadu 15% Punjab 8% Maharashtra 8% UP 6% Karnataka 6% Gujarat 5% West Bengal 5% Others 24% Statewise Share of Food Processing Industries (% Share) 35% 12% 8% 6% 2% Milk Meat Marine Products Poultry Fruits & Vegetables Current Food Processing Levels as a Percentage of Production % Share 18% 6.10% 6% 0.80% 2.30% 3.70% 5.30% Fruits & Vegetables Pulses Cereal Milk Meat Poultry Fish Annual Wastage as a Percentage of Production Across Commodity Classes Source: Fruits & Vegetables Availability Maps of INDIA, January, 2015( MoFPI& Yes Bank) Nodal Agency : MoFPI 270% increase in budget allocated i.e. Rs. 5,990 crore The total value of the Indian food processing industry is expected to touch $194 billion in 2015 from a value of $121 billion in 2012, registering a (Growth_ 20 per cent per annum) Mega Food Parks :launched in 2008-09 by MoFPI of 50-50-50 (50 crore assistance, Min. 50 acres,50% contribution by Private stakeholders) Objective: Forward and backward Integration Current Status 42 sanctioned 17 operational
14,787 20,427 31,762 36,212 37,798 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2009-10 2010-11 2011-12 2012-13 2013-14 Export of processed Food & Related Commodities (US $ Million) Export 278.89 188.67 170.21 401.46 3,982.88 317.24 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 (April- November) Flow of FDI In Food processing Sector in India over years FDI (US$ Million) MARINE 13% RICE 13% MEAT 12% RICE (Non basmati) 8% OIL 7% SPICES 7% GUARGAM 5% WHEAT 4% Others 31% Share of different commodities in exports from FPI (2013-14) (US$ Million) Source: Annual Report 2014-15, Ministry of Food Processing Industries
For boosting agricultural exports from India, in March 2001, Government of India under Chapter 16 Of EX-IM policy, 2001 announced setting up of Agri Export Zones (AEZs) across the country.  Major components:  Identifying :Products and Geographical region  End to End approach  Integrated of efforts of all agencies Agro Export Zone’s Karnataka 15% Punjab 14% Maharashtra 11% A P 27% J&K 6% Gujarat 3% Kerala 21% Others 3% State wise share in Total Exports from AEZ’s up to March, 2013 Farmers Inputs Infrastructure Storage Transportation Technology Finance Quality Assurance Training Exporters Need/Pros
Agro Export Zone’s Current Status AEZs Sanctioned 60 Spread 20 states Commodities Listed 40 Total Investment: 1097.53 Crores Total Exports: > 10,930 Cr S. No State No. of AEZ Agri. Commodities 1 Maharashtra 8 Grape, wine, mango, flowers, onions, pomegranate, banana & orange. 2 Punjab 3 Vegetables, potatoes, Basmati rice. 3 West Bengal 6 Pineapple, lychee, potatoes, mango, vegetables and tea. 4 Karnataka 4 Gherkins, rose onion, flowers, vanilla. 5 Uttar Pradesh 4 Potatoes, mangoes, vegetables, Basmati rice. 6 Uttaranchal 4 Lychee, flowers, Basmati rice. 7 AP 5 Mango pulp, vegetables, mango, gherkins, chilli 8 MP 4 Potatoes, wheat, lentil, orange, seed. 9-20 Sikkim, J&K, Raj., Orissa, Jharkhand, Assam, Kerala, HP, Gujarat, Bihar, TN & Tripura 22 Coriander, cumin, Ginger, medicinal plant etc. Total 60 40
468291 511029 607375 711621 840643 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 2010-11 2011-12 2012-13 2013-14 2014-15 Division of Credit Flowing in Agriculture (Rs. In Crore) Crop Loan Term Loan Total 468291 511029 607375 711621 840643 0 200000 400000 600000 800000 1000000 2010-11 2011-12 2012-13 2013-14 2014-15 Total Credit Flow in Agriculture (Rs. In Crore) CBs RRBs Coops Total 71 12 17 Credit
2% 15% 43% 1% 26% 3% 9% 1% Distribution of outstanding Loans (2012-13) Government Co-op's Bank Employer/Landlord Professional/Agri. Money lender Shopkeeper/Trader Relatives & Friends Others Credit % Faming population indebted in India 51.9 % Top states : Telangana 89.1 % Tamil Nadu 82.5 % Haryana 42.3 % Institutional Outstanding Higher Class(>10Ha) 79% Lower Class(<.01Ha) 15% Source: NSSO Survey on Farming Situation 2014(Key Indicators of Situation of Agricultural Households in India)
ISAM,2014 ISAM MRIN SAGF NIAM ABD AMI Scheme Implementing Agency Budget Allocated Agricultural Marketing Infrastructure (AMI) DMI 4000 Cr Marketing Research and Information Network (MRIN) DMI 12 Cr Strengthening of Agmark Grading Facilities (SAGF) DMI 6 Cr Agribusiness Development (ABD) SFAC 500 Cr National Institute of Agriculture Marketing (NIAM) Self 30 Cr
Agricultural Marketing Infrastructure (AMI) Target: 1. To develop 4000 marketing infrastructure projects. 2. Storage capacity of 23 MT across the country 3. Latest technologies in agricultural marketing infrastructure. 4. Encouraging private and cooperative sector investments. 5. Promoting Direct marketing. 6. To promote Integrated Value Chains ( Up to Primary Processing only). 7. Pledge Finance 8. Processing facility development for frits , veg., meat, fish etc. Progress: 1. Subsidy NABARD: Up to March ,2015 GBY 1686.65 Crore AMIGS 1009.24 Crore  The XII Plan Working Group on ‘Agricultural Marketing Infrastructure, Secondary Agriculture and Policy Required for Internal and External Trade’ estimated :  Investment requirement 56,000 crores  Budgetary allocation 20,207 crores  It has also estimated a requirement of 35 million MT storage capacity during XII Plan period. GBY,2001 AMIGS,2004 Challenges
MRIN Year 2012-13 2013-14 2014-15 2015-16 2016-17 Total Allocation (Cr) 1.16 2.50 2.50 2.92 2.92 12.0 Agricultural Marketing Information Network (AGMARKNET), March, 2000, was started to link APM’s, SAMB & Directorates with help from NIC. AIM: Speedy Collection and Dissemination of market information Information provided : Price related: Max., Min. & Modal ( Daily) Arrivals (Daily Basis) Market Profiles. Price forecasts and trends. National Agriculture Market Atlas. Commodity profiles. (26) Linked to Online Spot Exchanges(NCDEX, MCXINDIA, NMCE) SMS Service. Research, Publications, Extension material. Ongoing Schemes Standards and Grades, labeling, SPS requirements, Pledge finance etc. Financial Outlay For XII V Year Plan:
MRIN  Assistance Provided under MRIN:  Computers & other hardware  Electronic Display Boards  Website development of each SAMB.  Personnel training at every node  Monetary Incentive  Present Connectivity No. of Markets Reporting 2232 Market Profiles Available (Nos.) 1717 Commodities reported >2000(Including Varieties) Computers provided 3549 Installation of Computer 3421
Selected Market Information Centers Name Main Purpose Agriexchange by APEDA http://agriexchange.apeda.gov.in/ Agribusiness statistics of all around the world& Market news http://www.indiaagronet.com/ News about every development in agriculture sector http://agriculturetoday.in/ Monthly mag., Reports all topical news related to agriculture http://www.agriwatch.com/ Agriculture Economics related data www.agricoop.nic.in www.commodityindia.com www.agriculturalinformation.com www.fieo.com/cwc/ www.fao.org www.fciweb.nic.in www.nmce.com www.nic.in/eximpol www.icar.org.in www.apeda.com www.fmc.gov.in www.ncdc.nic.in www.kisan.net www.isapindia.org
Strengthening Of AGMARK Grading Facilities (SAGF) Objectives:  Standardization of raw agricultural commodities : 213  Framing &Revision of grade standards for commodities mentioned in schedule of AP(G&M)Act, 1937.  Promoting Agmark certification .  Harmonizing standards with CAC,ISO,BIS. Agency:  DMI  Central Laboratory: Nagpur  11 Regional Laboratories: Certification Exports Compulsory Pre-shipment Inspection Domestic Voluntary Targets & Financial Outlay 2012-13 2013-14 2014-15 2015-16 2016-17 Total (Cr) .94 1.0 1.0 1.53 1.53 6.0 Analyzing 54,000 Check samples and 10,300 Research samples
AGRIBUSINESS DEVELOPMENT • To remove the Financial & Expertise constraints of majority of Agribusiness firms SFAC provides: Eligible Persons: Individuals, Agriculture Graduates, Farmers, Producer’s Group Agripreneurs, AEZ, Firms Eligible projects: Agriculture & Allied sectors Providing assured markets to farmers Encouraging diversification. Eligible Financial institutions: All Financial Institutions notified by the RBI where the ownership of the Central/State Government is more than 50% such as nationalized banks, SBI & its Subsidiaries, IDBI, NABARD, NCDC, RRBs & State Financial Corporations etc. Venture Capital Assistance(Term Loan) Project Development Facility SFAC > Financial institution> Individual Project Cost: Rs. 10 lakhs -5 Crore Allotted Budget: Rs. 500 Crores
• PG Diploma in Agribusiness Education • Problematic areas • Emerging innovations & inventions Research • Market planning & Designing • Project Development Facility Consultancy • APMC Act reforms, Monthly advisory to DAC etc. Policy Advocacy • Demand driven , Target oriented • Target of 675 trainings under XII V Year plan Training CCS National Institute of Agriculture Marketing Services it renders: 2012-13 2013-14 2014-15 2015-15 2016-17 TOTAL( Crores) 5.0 5.50 6.0 6.50 7.0 30 Budgetary allocation
Food Safety & Standards Act,2006  Multiple regulations  Harmonizing  Facilitating trade  Regulate manufacture, storage , sale , import of products & preventing adulteration.  Developing internationally applicable standards & monitoring compliance  Regulatory mechanism for offenders . ( Adjudicating officer, Special Courts, Food safety Appellate Tribunal)  Penalties & Compensation ( 1 to 10 lakhs) & Imprisonment ( 6 months to Life Imprisonment) Need>> Important Provisions>> Registration Certification Authority: Food Safety Officer Authority: Officers appointed by CEO of FSSAI or Food Safety Commissioner of state Food business with turnover < 12 lakhs Export oriented units, All Import Units Small manufacturers & petty hawkers Retail chains, Processing units (> 2MT/ day)
Indian Food Law Prevention of Food Adulteration Act 1954 Department of Health Ministry of Health and Family Welfare Fruit Products Order Ministry of Food Processing Industries Milk and Milk Products Order Department of Animal Husbandry Ministry of Agriculture Agricultural Produce (Grading & Marketing) Act Department of Agriculture and Cooperation Ministry of Agriculture Standards of Weights and Measures Act and Packaged Commodity Rules, The Vegetable Oil Products (Control) Order, The Edible Oils Packaging (Regulation) Order, The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order Ministry of Consumer Affairs, Food and Public Distribution Export (Quality Control & Inspection) Act Department of Commerce Ministry of Commerce & Industry Food Safety & Standards Act,2006(MFPI) Meat Products Order Ministry of Food Processing Industries By repealing 17 existing Orders/Acts and to do away with multiplicity of governing authorities
Food Safety & Standards Act,2006(MFPI) New formulations
Alternative Marketing Systems AMS Direct Marketing e- Markets Contract Farming
Common Features • Set up by state or SAMB or by financial assistance & loan to APMC. • Facilities & maintenance by APMC near to market. • No middlemen • Registered farmers can do business. • Fruits, Vegetables, Pulses & Oilseeds Benefits • Price fixation • Farmers share is increased by 20 to 40 % • Consumer gets cheaper produce(25 to 30%) • Transport service • Temporary storage Direct Marketing Selvaraj et al. (2014) concluded that courteous behavior, right measurement, freshness & variety were major plus points of Uzhavar Santhi’s.
Uzhavar Santhai (TN)(1999) • Online prices • 179 Operational • Daily Avg. 2262 MT Ryhtu Bazaar (AP)(1999) • Online portal • Mobile app • 107 operational • Cold storage in all Shetkari Bazaar (Maharashtra) • 12 operational • 33 sanctioned • 10 Lac by SAMB to APMC Krushak Bazaar (Orissa) • 32 functional • Trade in Paddy, Maize & cotton also Markets & Status Kisan Mandi (Haryana)(1988) • 37 functional Apni Mandi (Punjab)(1987) • In 26 cities of Punjab • Mohali- AC Raithe Santhe (Karnataka) • 15 operational • Controversial efficiency
e- Markets Spot Exchange The Government has permitted setting up of 1. National Spot Exchange Ltd (NSEL) (Financial Technologies & NAFED) 2. NCDEX Spot Exchange Ltd (NSPOT) and ( Karnataka, 8 commodities) 3. National Agriculture Produce Marketing Company of India Ltd (NAPMC) (Suggestion) Avenue for direct market linkage among farmers, processors, exporters and end users They will also provide the most efficient spot price inputs to the futures exchanges. Trading of Warehouse receipts. Payment: T+3, T+4 days for agricultural commodities Credit from banks up to 65% Facilities of grading, certification e-Procurement Farmers Realization increased by 4-5% (Economic Survey, 2009) Cost of marketing ( reduced by Rs. 210/Q )(Tur Board, Karnataka) Facilities
12 States  Delhi, Gujarat  Rajasthan, Maha.  Karnataka  Tamil Nadu, AP  MP, Orissa  WB, Bihar 26 Commodities  Cotton, Castor seed,  Desi chana, Guar seed,  RM seed, Wheat,  Barley, Red Arecanut,  Maize, Yellow peas,  Urad, Lemon tur,  Soybean, Jeera,  Ground nut, Sugar,  Moong and Pepper Spot Exchange Business through 1900 terminals
Process Note: Due to surfacing of 5,600 cr. NSEL scam in 2013, the exemption granted for one day futures trading was withdrawn from all 3 exchanges because they were violating the limit
e- Choupal (2000) Introduction • e- Choupal (https://www.echoupal.com) is an initiative of ITC Limited "Indian Tobacco Company", to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture produce. Functioning • The farmer carries a sample to local kiosk and receives a spot quote from the sanchalak. If the farmer accepts the quote, he can transport the produce directly to an ITC collection center, and gets payment within two hours. • Serves an avg. of 600 farmers from 5 Km radius Status • 4 million farmers benefitted • > 40000 villages • 6582 kiosks installed and running • Products- soya bean, coffee, wheat, rice, pulses, shrimp, coffee, spices • States (10)
Online National Agriculture Market  As reported by Agriculture Minister Radha Mohan Singh Online national agriculture market is going to start in February 2016 .  Online national agriculture market provide more options to farmers to sell their product by integrating 585 wholesale markets across India.  Online national agri-market is expected to give option to farmers to sell their produce in physical mandi’s or online platform. • 1st Phase : Integration of 200 wholesale • Budget of Rs 200 crore approved by cabinet. • Status: Work completed for 164 markets State Budget Utilized Mandi’s linked  Karnataka 116 crore 50  Gujarat 12 crore 40  Maharashtra 9 crore 30  Telangana 12.16 crore 44 Source: http://www.indiaagronet.com/Agri-News/online-national-agriculture-market.html
Contract Farming Centralized Nucleus Estate Intermediary Multipartite Informal • It is agreement between farmers and companies to for short/ long term whereby farmer provides agreed upon quantity & quality of raw material at a pre determined price. Present Status  Major commodities: Poultry, Basmati, Durum wheat, Potatoes, Mushrooms, Pulses & oilseeds, tomato, Onions, Flowers, Chilies, Garlic, Barley, Dairy products  States: MP, Maharashtra, WB, Assam, Haryana, Punjab, Chhattisgarh, HP, Bihar, Karnataka  Area: 6.73 Lakh Ha  Companies registered on AGMARKNET: 25 Benefits Assured market. Quality inputs. New technology & Practices Diversification possibility. Steady supply of raw material Desired Quality & Quantity Capital Investment low: Land Lower risk : Demand oriented production Farmers Companies
Present Major Contracts State Company Commodity MP ITC, Hindustan Unilever, Cargill, Rallis, Reliance Wheat(Durum& Sharbati), Aromatic oils Maharashtra Venkateshwar Hatcheries, TATA Chemicals, SH Kellar Group, Champagne India Broilers, Grapes, Aromatic Oil, Grapevine WB Frito-Lay Potatoes Assam Hindustan Paper Mill Bamboo Haryana TATA Chemicals, Vardhman TKS, Cotton Punjab TATA Chemicals, Vardhman TKS, Cotton HP Himalayan International ltd Herbs Bihar Aditya Kumar enterprise Basmati Rice Karnataka Bharti Associates, Sai Agro Tech Gherkin processing
Leading States State Direct Markets Contract farming cases Registered Licenses issued for Direct sourcing produce from farmers to Private entrepreneurs No. of licenses issued for trading in more than one market No. of Licenses to Private Markets Punjab 26 9 22 - Not permitted Haryana 37 6 Provision made - Permitted Gujarat - 2 17 No provision 13 Karnataka 15 Permitted 9 249 3 Rajasthan - Permitted 76 1 2 Tamil Nadu 179 5 - No provision 6 MP - 1 2 8 No provision Maharashtra 12 7 107(48) 38 23 AP 107 1 171 - 4 Source: Final Report of Committee of State Ministers, In-charge of Agriculture Marketing to Promote Reforms ,2011
FDI in India Agriculture 0 500 1000 1500 2000 2500 3000 3500 4000 Amount/US$ Billion Trends of FDI and AFDI inflow in India AFDI FDI
Sector-Wise FDI Inflows in India during April, 2000 – June 2015 FDI in India Agriculture Name of the Sector FDI Inflows in (US $ million) Share in Total Investment (%) Agriculture Services 1763.57 0.68 Agriculture Machinery 418.65 0.16 Fertilizers 543.35 0.21 Sugar 178.04 0.07 Vegetable Oils & Vanaspati 566.48 0.22 Food Processing Industry 6,429.15 2.49 Source: Department Of Industrial Policy & Promotion (Ministry Of Commerce & Industry); 2014-15
Volume of Transactions 0.6 3.7 6.4 10.2 11.2 16.8 25.6 33.5 0 5 10 15 20 25 30 35 40 45 50 1970 1980 1990 2000 2010 2011 2012 2013 India's Share in World Market (%) Other Cereals and preparations Sugar and Preprations Vegetables and fruits Meat and meat preparations Fish etc. Coffee, tea, cocoa & spices Tobacco etc. Rice 845.533 1136.964 1465.959 1634.318 1905.011 1896.348 84.562 110.848 180.077 224.099 259.597 236.402 0 500 1000 1500 2000 2500 3000 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Share of AAP in Total Exports & Imports & BoT (Rs. In 000 Crore) Total Exports AAP Total Imports Imports AAP
Impact on Farmers 0 20 40 60 80 100 120 Cereals Pulses Oilseeds Sugarcane Cotton Jute Vegetables MSR % Marketed Surplus-Output Ratio(MSR) of Various Groups of Agriculture Produce 2008- 2012(Agriculture Statistics 2014)
0 10 20 30 40 50 60 70 80 90 Percentage distribution of quantity sold by agency for selected crops during January, 2013- June, 2013 Local privatetrader Mandi Input dealer Co-op& Govt. agency processors Others Impact on Farmers Source: NSSO Survey on Farming Situation 2014(Key Indicators of Situation of Agricultural Households in India)
Conclusion Challenges • Limited access to Markets • Infrastructure Lag – Storage – Transport • Indebtedness • Low share of produce handled by regulated markets • Long supply chains • Market charges • Poor extension • Market Information • Policy Implementation • Inter-State barriers • Support Prices  Govt. attitude Opportunities • 2nd largest producer • Diversity • Widening of markets – Integration – Processing • Promoting new concepts of marketing • Focusing on agriculture – Employment – Standard of living – Manufacturing – Trade Balance
developments in agricultural marketing.pptx

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developments in agricultural marketing.pptx

  • 1.
    Recent Developments inAgricultural Marketing & It’s Impact on Farmers By- Sanjay (2014A07M) Department Of Agricultural Economics, CCS Haryana Agricultural University, Hisar-125004 28,November,2015
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    Agricultural Markets inINDIA (As on 31 March,2014) No. Of Regulated Markets: 7190 No. Of Rural Primary Markets: 22505 Total: 28994 Availability of Markets Area Served Average area Served by a Market 115 sq. km Av. Area Served by a Regulated market 457 sq. km Variation In Avg. Area served 118 sq km in Punjab to 11,214 sq km in Meghalaya Recommendations by National Farmers Commission -Availability of Markets within 5 km radius (approx. 80 sq km)(2004) 41838 Shortage 12844 Source: Final Report of Committee of State Ministers, In-charge of Agriculture Marketing to Promote Reforms,2015
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    Storage(Warehouses) 108.08 110.74 121.07 131.82 131.72 0 20 40 60 80 100 120 140 2010-11 2011-122012-13 2013-14 2014-15 Capacity (Million MT) Total Available Warehouse Capacity in India Total SWC CWC FCI State Gov. Cooperatives Private Total Estimated Surplus by 2017 (Working Group Report on AMI,2015) 150 Million MT Present Storage Capacity 131.72 Million MT Estimated capacity by 2017 136 Million MT Gap 14Million MT % Share of Each Agency: FCI(30), SWC(24),CWC(7),State(9), Co-op(12), Private(15)
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    Storage(Warehouses) Ongoing Developments 1. Warehousesto be declared as Mandis a. In pipeline to allow the registered warehouses with the WDRA to be notified as Mandis under the relevant APMC Act. b. Karnataka & Punjab declared some silos as Mandis. 2. Procurement of food grains for TPDS 3. Directory Of Warehouses (www.warehousedirectory.in) Ongoing Schemes & Status 1. Private Entrepreneurs Gaurantee Scheme, 2008  121 lakh MT capacity completed, 93 lakh MT by the private and 28 lakh MT by CWC / SWCs 2. Gramin Bhandaran Yojana  Rs 4000 Cr allocated in 12th five year plan to create storage capacity of 26 Million MT 3. Scheme for Financing Warehousing Infrastructure under RIDF  Rs. 5000 Cr allocated during 2014-15. 4. NBARD refinance: 294.21 Cr (2014-15)
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    Negotiable Warehouse Receipt Demand originated by recommendation of AIRCS in 1951  Launched in 2007 under Warehousing (Development and Regulation) Act, 2007  Can be in both paper and electronic forms.  Advance up to 65% of value by Banks  For discouraging distress sales:  Government of India has extended the benefit of interest subvention on crop loan scheme to small and marginal farmers having Kisan Credit Card (KCC) for a further period of up to six months post-harvest on the same rate as available to crop loan against negotiable warehouse receipt for keeping their produce in the warehouses during the year 2011-12. The scheme has been extended during 2012- 13 and 2013-14.  The loan should be for a period of six months and the maximum loan amount should be enhanced to Rs. 5.0 lakh  The WDRA in consultation with NHM and NHB has introduced negotiable warehouse receipt system in cold storages  Recommended by to make NWR’s transferable without physical delivery. Commodities Notified: 123 Agricultural & 26Horticultural Recent Developments
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    Cold Chain Type ofInfrastructure Infrastructure Req. Infrastructure Created All India Gap Pack-house (No.) 70,080 249 69,831 Cold Storage (Bulk) (Million MT) 34.1 31.8 3.2 Cold Storage (Hub) (Million MT) .93 Reefer Vehicles (No.) 61,826 9,000 52,826 Ripening Chamber (No.) 9,131 812 8,319 Note: Out of Total 7129 only 5801 are functional with a running capacity of only 26.7 Million. Source: All India Cold-chain Infrastructure Capacity (Assessment of Status & Gap), 2015(National Centre for Cold-chain Development ) AP 5% Bihar 5% Gujarat 7% Haryana 2% Punjab 6% Uttar Pradesh 42% West Bengal 18% Maharashtra 2% Others 13% All India distribution of Cold Stores capacity as of 31.07.2015 Growth of cold Storage in INDIA The survey indicated that although most of the cold storages facilitate transportation of commodities, 79% don’t own any transportation facility 96 % of the cold storage are in Pvt. Sector; more than 75 per cent of the capacity is utilized only for potato and only about 23 percent are under multi commodity category
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    Food Processing Andhra Pradesh 23% Tamil Nadu 15% Punjab 8% Maharashtra 8% UP 6% Karnataka 6% Gujarat 5% WestBengal 5% Others 24% Statewise Share of Food Processing Industries (% Share) 35% 12% 8% 6% 2% Milk Meat Marine Products Poultry Fruits & Vegetables Current Food Processing Levels as a Percentage of Production % Share 18% 6.10% 6% 0.80% 2.30% 3.70% 5.30% Fruits & Vegetables Pulses Cereal Milk Meat Poultry Fish Annual Wastage as a Percentage of Production Across Commodity Classes Source: Fruits & Vegetables Availability Maps of INDIA, January, 2015( MoFPI& Yes Bank) Nodal Agency : MoFPI 270% increase in budget allocated i.e. Rs. 5,990 crore The total value of the Indian food processing industry is expected to touch $194 billion in 2015 from a value of $121 billion in 2012, registering a (Growth_ 20 per cent per annum) Mega Food Parks :launched in 2008-09 by MoFPI of 50-50-50 (50 crore assistance, Min. 50 acres,50% contribution by Private stakeholders) Objective: Forward and backward Integration Current Status 42 sanctioned 17 operational
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    14,787 20,427 31,762 36,212 37,798 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2009-10 2010-11 2011-122012-13 2013-14 Export of processed Food & Related Commodities (US $ Million) Export 278.89 188.67 170.21 401.46 3,982.88 317.24 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 (April- November) Flow of FDI In Food processing Sector in India over years FDI (US$ Million) MARINE 13% RICE 13% MEAT 12% RICE (Non basmati) 8% OIL 7% SPICES 7% GUARGAM 5% WHEAT 4% Others 31% Share of different commodities in exports from FPI (2013-14) (US$ Million) Source: Annual Report 2014-15, Ministry of Food Processing Industries
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    For boosting agriculturalexports from India, in March 2001, Government of India under Chapter 16 Of EX-IM policy, 2001 announced setting up of Agri Export Zones (AEZs) across the country.  Major components:  Identifying :Products and Geographical region  End to End approach  Integrated of efforts of all agencies Agro Export Zone’s Karnataka 15% Punjab 14% Maharashtra 11% A P 27% J&K 6% Gujarat 3% Kerala 21% Others 3% State wise share in Total Exports from AEZ’s up to March, 2013 Farmers Inputs Infrastructure Storage Transportation Technology Finance Quality Assurance Training Exporters Need/Pros
  • 11.
    Agro Export Zone’s CurrentStatus AEZs Sanctioned 60 Spread 20 states Commodities Listed 40 Total Investment: 1097.53 Crores Total Exports: > 10,930 Cr S. No State No. of AEZ Agri. Commodities 1 Maharashtra 8 Grape, wine, mango, flowers, onions, pomegranate, banana & orange. 2 Punjab 3 Vegetables, potatoes, Basmati rice. 3 West Bengal 6 Pineapple, lychee, potatoes, mango, vegetables and tea. 4 Karnataka 4 Gherkins, rose onion, flowers, vanilla. 5 Uttar Pradesh 4 Potatoes, mangoes, vegetables, Basmati rice. 6 Uttaranchal 4 Lychee, flowers, Basmati rice. 7 AP 5 Mango pulp, vegetables, mango, gherkins, chilli 8 MP 4 Potatoes, wheat, lentil, orange, seed. 9-20 Sikkim, J&K, Raj., Orissa, Jharkhand, Assam, Kerala, HP, Gujarat, Bihar, TN & Tripura 22 Coriander, cumin, Ginger, medicinal plant etc. Total 60 40
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    468291 511029 607375 711621 840643 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 2010-11 2011-12 2012-132013-14 2014-15 Division of Credit Flowing in Agriculture (Rs. In Crore) Crop Loan Term Loan Total 468291 511029 607375 711621 840643 0 200000 400000 600000 800000 1000000 2010-11 2011-12 2012-13 2013-14 2014-15 Total Credit Flow in Agriculture (Rs. In Crore) CBs RRBs Coops Total 71 12 17 Credit
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    2% 15% 43% 1% 26% 3% 9% 1% Distribution ofoutstanding Loans (2012-13) Government Co-op's Bank Employer/Landlord Professional/Agri. Money lender Shopkeeper/Trader Relatives & Friends Others Credit % Faming population indebted in India 51.9 % Top states : Telangana 89.1 % Tamil Nadu 82.5 % Haryana 42.3 % Institutional Outstanding Higher Class(>10Ha) 79% Lower Class(<.01Ha) 15% Source: NSSO Survey on Farming Situation 2014(Key Indicators of Situation of Agricultural Households in India)
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    ISAM,2014 ISAM MRIN SAGF NIAM ABD AMI Scheme Implementing AgencyBudget Allocated Agricultural Marketing Infrastructure (AMI) DMI 4000 Cr Marketing Research and Information Network (MRIN) DMI 12 Cr Strengthening of Agmark Grading Facilities (SAGF) DMI 6 Cr Agribusiness Development (ABD) SFAC 500 Cr National Institute of Agriculture Marketing (NIAM) Self 30 Cr
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    Agricultural Marketing Infrastructure(AMI) Target: 1. To develop 4000 marketing infrastructure projects. 2. Storage capacity of 23 MT across the country 3. Latest technologies in agricultural marketing infrastructure. 4. Encouraging private and cooperative sector investments. 5. Promoting Direct marketing. 6. To promote Integrated Value Chains ( Up to Primary Processing only). 7. Pledge Finance 8. Processing facility development for frits , veg., meat, fish etc. Progress: 1. Subsidy NABARD: Up to March ,2015 GBY 1686.65 Crore AMIGS 1009.24 Crore  The XII Plan Working Group on ‘Agricultural Marketing Infrastructure, Secondary Agriculture and Policy Required for Internal and External Trade’ estimated :  Investment requirement 56,000 crores  Budgetary allocation 20,207 crores  It has also estimated a requirement of 35 million MT storage capacity during XII Plan period. GBY,2001 AMIGS,2004 Challenges
  • 18.
    MRIN Year 2012-13 2013-142014-15 2015-16 2016-17 Total Allocation (Cr) 1.16 2.50 2.50 2.92 2.92 12.0 Agricultural Marketing Information Network (AGMARKNET), March, 2000, was started to link APM’s, SAMB & Directorates with help from NIC. AIM: Speedy Collection and Dissemination of market information Information provided : Price related: Max., Min. & Modal ( Daily) Arrivals (Daily Basis) Market Profiles. Price forecasts and trends. National Agriculture Market Atlas. Commodity profiles. (26) Linked to Online Spot Exchanges(NCDEX, MCXINDIA, NMCE) SMS Service. Research, Publications, Extension material. Ongoing Schemes Standards and Grades, labeling, SPS requirements, Pledge finance etc. Financial Outlay For XII V Year Plan:
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    MRIN  Assistance Providedunder MRIN:  Computers & other hardware  Electronic Display Boards  Website development of each SAMB.  Personnel training at every node  Monetary Incentive  Present Connectivity No. of Markets Reporting 2232 Market Profiles Available (Nos.) 1717 Commodities reported >2000(Including Varieties) Computers provided 3549 Installation of Computer 3421
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    Selected Market InformationCenters Name Main Purpose Agriexchange by APEDA http://agriexchange.apeda.gov.in/ Agribusiness statistics of all around the world& Market news http://www.indiaagronet.com/ News about every development in agriculture sector http://agriculturetoday.in/ Monthly mag., Reports all topical news related to agriculture http://www.agriwatch.com/ Agriculture Economics related data www.agricoop.nic.in www.commodityindia.com www.agriculturalinformation.com www.fieo.com/cwc/ www.fao.org www.fciweb.nic.in www.nmce.com www.nic.in/eximpol www.icar.org.in www.apeda.com www.fmc.gov.in www.ncdc.nic.in www.kisan.net www.isapindia.org
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    Strengthening Of AGMARKGrading Facilities (SAGF) Objectives:  Standardization of raw agricultural commodities : 213  Framing &Revision of grade standards for commodities mentioned in schedule of AP(G&M)Act, 1937.  Promoting Agmark certification .  Harmonizing standards with CAC,ISO,BIS. Agency:  DMI  Central Laboratory: Nagpur  11 Regional Laboratories: Certification Exports Compulsory Pre-shipment Inspection Domestic Voluntary Targets & Financial Outlay 2012-13 2013-14 2014-15 2015-16 2016-17 Total (Cr) .94 1.0 1.0 1.53 1.53 6.0 Analyzing 54,000 Check samples and 10,300 Research samples
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    AGRIBUSINESS DEVELOPMENT • Toremove the Financial & Expertise constraints of majority of Agribusiness firms SFAC provides: Eligible Persons: Individuals, Agriculture Graduates, Farmers, Producer’s Group Agripreneurs, AEZ, Firms Eligible projects: Agriculture & Allied sectors Providing assured markets to farmers Encouraging diversification. Eligible Financial institutions: All Financial Institutions notified by the RBI where the ownership of the Central/State Government is more than 50% such as nationalized banks, SBI & its Subsidiaries, IDBI, NABARD, NCDC, RRBs & State Financial Corporations etc. Venture Capital Assistance(Term Loan) Project Development Facility SFAC > Financial institution> Individual Project Cost: Rs. 10 lakhs -5 Crore Allotted Budget: Rs. 500 Crores
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    • PG Diplomain Agribusiness Education • Problematic areas • Emerging innovations & inventions Research • Market planning & Designing • Project Development Facility Consultancy • APMC Act reforms, Monthly advisory to DAC etc. Policy Advocacy • Demand driven , Target oriented • Target of 675 trainings under XII V Year plan Training CCS National Institute of Agriculture Marketing Services it renders: 2012-13 2013-14 2014-15 2015-15 2016-17 TOTAL( Crores) 5.0 5.50 6.0 6.50 7.0 30 Budgetary allocation
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    Food Safety &Standards Act,2006  Multiple regulations  Harmonizing  Facilitating trade  Regulate manufacture, storage , sale , import of products & preventing adulteration.  Developing internationally applicable standards & monitoring compliance  Regulatory mechanism for offenders . ( Adjudicating officer, Special Courts, Food safety Appellate Tribunal)  Penalties & Compensation ( 1 to 10 lakhs) & Imprisonment ( 6 months to Life Imprisonment) Need>> Important Provisions>> Registration Certification Authority: Food Safety Officer Authority: Officers appointed by CEO of FSSAI or Food Safety Commissioner of state Food business with turnover < 12 lakhs Export oriented units, All Import Units Small manufacturers & petty hawkers Retail chains, Processing units (> 2MT/ day)
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    Indian Food Law Prevention ofFood Adulteration Act 1954 Department of Health Ministry of Health and Family Welfare Fruit Products Order Ministry of Food Processing Industries Milk and Milk Products Order Department of Animal Husbandry Ministry of Agriculture Agricultural Produce (Grading & Marketing) Act Department of Agriculture and Cooperation Ministry of Agriculture Standards of Weights and Measures Act and Packaged Commodity Rules, The Vegetable Oil Products (Control) Order, The Edible Oils Packaging (Regulation) Order, The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order Ministry of Consumer Affairs, Food and Public Distribution Export (Quality Control & Inspection) Act Department of Commerce Ministry of Commerce & Industry Food Safety & Standards Act,2006(MFPI) Meat Products Order Ministry of Food Processing Industries By repealing 17 existing Orders/Acts and to do away with multiplicity of governing authorities
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    Food Safety &Standards Act,2006(MFPI) New formulations
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    Common Features • Setup by state or SAMB or by financial assistance & loan to APMC. • Facilities & maintenance by APMC near to market. • No middlemen • Registered farmers can do business. • Fruits, Vegetables, Pulses & Oilseeds Benefits • Price fixation • Farmers share is increased by 20 to 40 % • Consumer gets cheaper produce(25 to 30%) • Transport service • Temporary storage Direct Marketing Selvaraj et al. (2014) concluded that courteous behavior, right measurement, freshness & variety were major plus points of Uzhavar Santhi’s.
  • 29.
    Uzhavar Santhai (TN)(1999) • Onlineprices • 179 Operational • Daily Avg. 2262 MT Ryhtu Bazaar (AP)(1999) • Online portal • Mobile app • 107 operational • Cold storage in all Shetkari Bazaar (Maharashtra) • 12 operational • 33 sanctioned • 10 Lac by SAMB to APMC Krushak Bazaar (Orissa) • 32 functional • Trade in Paddy, Maize & cotton also Markets & Status Kisan Mandi (Haryana)(1988) • 37 functional Apni Mandi (Punjab)(1987) • In 26 cities of Punjab • Mohali- AC Raithe Santhe (Karnataka) • 15 operational • Controversial efficiency
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    e- Markets Spot Exchange TheGovernment has permitted setting up of 1. National Spot Exchange Ltd (NSEL) (Financial Technologies & NAFED) 2. NCDEX Spot Exchange Ltd (NSPOT) and ( Karnataka, 8 commodities) 3. National Agriculture Produce Marketing Company of India Ltd (NAPMC) (Suggestion) Avenue for direct market linkage among farmers, processors, exporters and end users They will also provide the most efficient spot price inputs to the futures exchanges. Trading of Warehouse receipts. Payment: T+3, T+4 days for agricultural commodities Credit from banks up to 65% Facilities of grading, certification e-Procurement Farmers Realization increased by 4-5% (Economic Survey, 2009) Cost of marketing ( reduced by Rs. 210/Q )(Tur Board, Karnataka) Facilities
  • 31.
    12 States  Delhi,Gujarat  Rajasthan, Maha.  Karnataka  Tamil Nadu, AP  MP, Orissa  WB, Bihar 26 Commodities  Cotton, Castor seed,  Desi chana, Guar seed,  RM seed, Wheat,  Barley, Red Arecanut,  Maize, Yellow peas,  Urad, Lemon tur,  Soybean, Jeera,  Ground nut, Sugar,  Moong and Pepper Spot Exchange Business through 1900 terminals
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    Process Note: Due tosurfacing of 5,600 cr. NSEL scam in 2013, the exemption granted for one day futures trading was withdrawn from all 3 exchanges because they were violating the limit
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    e- Choupal (2000) Introduction •e- Choupal (https://www.echoupal.com) is an initiative of ITC Limited "Indian Tobacco Company", to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture produce. Functioning • The farmer carries a sample to local kiosk and receives a spot quote from the sanchalak. If the farmer accepts the quote, he can transport the produce directly to an ITC collection center, and gets payment within two hours. • Serves an avg. of 600 farmers from 5 Km radius Status • 4 million farmers benefitted • > 40000 villages • 6582 kiosks installed and running • Products- soya bean, coffee, wheat, rice, pulses, shrimp, coffee, spices • States (10)
  • 34.
    Online National AgricultureMarket  As reported by Agriculture Minister Radha Mohan Singh Online national agriculture market is going to start in February 2016 .  Online national agriculture market provide more options to farmers to sell their product by integrating 585 wholesale markets across India.  Online national agri-market is expected to give option to farmers to sell their produce in physical mandi’s or online platform. • 1st Phase : Integration of 200 wholesale • Budget of Rs 200 crore approved by cabinet. • Status: Work completed for 164 markets State Budget Utilized Mandi’s linked  Karnataka 116 crore 50  Gujarat 12 crore 40  Maharashtra 9 crore 30  Telangana 12.16 crore 44 Source: http://www.indiaagronet.com/Agri-News/online-national-agriculture-market.html
  • 35.
    Contract Farming Centralized Nucleus Estate IntermediaryMultipartite Informal • It is agreement between farmers and companies to for short/ long term whereby farmer provides agreed upon quantity & quality of raw material at a pre determined price. Present Status  Major commodities: Poultry, Basmati, Durum wheat, Potatoes, Mushrooms, Pulses & oilseeds, tomato, Onions, Flowers, Chilies, Garlic, Barley, Dairy products  States: MP, Maharashtra, WB, Assam, Haryana, Punjab, Chhattisgarh, HP, Bihar, Karnataka  Area: 6.73 Lakh Ha  Companies registered on AGMARKNET: 25 Benefits Assured market. Quality inputs. New technology & Practices Diversification possibility. Steady supply of raw material Desired Quality & Quantity Capital Investment low: Land Lower risk : Demand oriented production Farmers Companies
  • 36.
    Present Major Contracts StateCompany Commodity MP ITC, Hindustan Unilever, Cargill, Rallis, Reliance Wheat(Durum& Sharbati), Aromatic oils Maharashtra Venkateshwar Hatcheries, TATA Chemicals, SH Kellar Group, Champagne India Broilers, Grapes, Aromatic Oil, Grapevine WB Frito-Lay Potatoes Assam Hindustan Paper Mill Bamboo Haryana TATA Chemicals, Vardhman TKS, Cotton Punjab TATA Chemicals, Vardhman TKS, Cotton HP Himalayan International ltd Herbs Bihar Aditya Kumar enterprise Basmati Rice Karnataka Bharti Associates, Sai Agro Tech Gherkin processing
  • 37.
    Leading States State Direct Markets Contract farmingcases Registered Licenses issued for Direct sourcing produce from farmers to Private entrepreneurs No. of licenses issued for trading in more than one market No. of Licenses to Private Markets Punjab 26 9 22 - Not permitted Haryana 37 6 Provision made - Permitted Gujarat - 2 17 No provision 13 Karnataka 15 Permitted 9 249 3 Rajasthan - Permitted 76 1 2 Tamil Nadu 179 5 - No provision 6 MP - 1 2 8 No provision Maharashtra 12 7 107(48) 38 23 AP 107 1 171 - 4 Source: Final Report of Committee of State Ministers, In-charge of Agriculture Marketing to Promote Reforms ,2011
  • 38.
    FDI in IndiaAgriculture 0 500 1000 1500 2000 2500 3000 3500 4000 Amount/US$ Billion Trends of FDI and AFDI inflow in India AFDI FDI
  • 39.
    Sector-Wise FDI Inflowsin India during April, 2000 – June 2015 FDI in India Agriculture Name of the Sector FDI Inflows in (US $ million) Share in Total Investment (%) Agriculture Services 1763.57 0.68 Agriculture Machinery 418.65 0.16 Fertilizers 543.35 0.21 Sugar 178.04 0.07 Vegetable Oils & Vanaspati 566.48 0.22 Food Processing Industry 6,429.15 2.49 Source: Department Of Industrial Policy & Promotion (Ministry Of Commerce & Industry); 2014-15
  • 41.
    Volume of Transactions 0.6 3.7 6.4 10.211.2 16.8 25.6 33.5 0 5 10 15 20 25 30 35 40 45 50 1970 1980 1990 2000 2010 2011 2012 2013 India's Share in World Market (%) Other Cereals and preparations Sugar and Preprations Vegetables and fruits Meat and meat preparations Fish etc. Coffee, tea, cocoa & spices Tobacco etc. Rice 845.533 1136.964 1465.959 1634.318 1905.011 1896.348 84.562 110.848 180.077 224.099 259.597 236.402 0 500 1000 1500 2000 2500 3000 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Share of AAP in Total Exports & Imports & BoT (Rs. In 000 Crore) Total Exports AAP Total Imports Imports AAP
  • 43.
    Impact on Farmers 0 20 40 60 80 100 120 CerealsPulses Oilseeds Sugarcane Cotton Jute Vegetables MSR % Marketed Surplus-Output Ratio(MSR) of Various Groups of Agriculture Produce 2008- 2012(Agriculture Statistics 2014)
  • 44.
    0 10 20 30 40 50 60 70 80 90 Percentage distribution ofquantity sold by agency for selected crops during January, 2013- June, 2013 Local privatetrader Mandi Input dealer Co-op& Govt. agency processors Others Impact on Farmers Source: NSSO Survey on Farming Situation 2014(Key Indicators of Situation of Agricultural Households in India)
  • 45.
    Conclusion Challenges • Limited accessto Markets • Infrastructure Lag – Storage – Transport • Indebtedness • Low share of produce handled by regulated markets • Long supply chains • Market charges • Poor extension • Market Information • Policy Implementation • Inter-State barriers • Support Prices  Govt. attitude Opportunities • 2nd largest producer • Diversity • Widening of markets – Integration – Processing • Promoting new concepts of marketing • Focusing on agriculture – Employment – Standard of living – Manufacturing – Trade Balance

Editor's Notes

  • #39 Department Of Industrial Policy & Promotion (Ministry Of Commerce & Industry)
  • #40 Department of Economics and Statistics