Highlight the issues faced by the agricultural marketing system in India.

Agricultural marketing system is key pillar in achieving the dual goal of food security and income security for producer. Includes sum total of operations undertaken in making available the produce to final consumer from farm gate.

Issues faced:

  1. Inefficient marketing system dominated by APMC
    • Inadequate infrastructure.
    • High entry barriers.
    • Complex licensing system creating monopoly of few.
    • High market fees.
  2. Lack of diversified marketing options
    • Producers critical of contract farming due to unequal bargaining power, low per capita holding.
  3. Poor infrastructure
    • Poor & ill connected warehousing facilities.
    • Warehouse continues to use unscientific storage methods of plinth and cover.
  4. Lack of organised farmer
    • Group such as farmer producer organisation.

Measures undertaken:

  • Government introduced farm bill but they are withdrawn now.
  • E-Nam – integrated all India market with transparent price discovery system.
  • Promotion of FPOs – 10,000 by end of 2022.
  • Infrastructure development – agriculture infrastructure development fund of 1 lakh crore.
  • Promoting forward commodities market (AGRIDEX).

Way forward:

  • The key lies in proper implementation of projects undertaken including capacity building of FPOs, accessible finance options and promoting agri-entrepreneurship.

Agri-marketing system must therefore be given due importance in our pursuit of doubling farmers income by 2022 and creating climate resilient system.


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