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AGRICULTURAL MARKETING

AGRICULTURAL MARKETING

  • The basic aim behind agricultural marketing is to provide remunerative price to agricultural produce. Some steps taken by government in this direction are discussed here.
  • National Agricultural Cooperative Marketing Federation (NAFED) promotes inter-state trade of agricultural produce and assists apex marketing societies. It also plays an important role in procurement operations and in exporting perishable vegetables to ensure reasonable prices during gluts.
  • Tribal Cooperative Marketing Development Federation (TRIFED), established in 1987, aims to save tribals from exploitation by private traders and to offer then remunerative prices for their Minor Fort Produce and surplus agricultural products.
  • National Cooperative Development Corporation (NCDC), established in takes up projects for production, processing, storage and marketing of agricultural produce.
  • All major centrally sponsored schemes of the Ministry of agriculture have incorporated special provisions for promotion and development of Farmer Producer Organizations (FPOs), which are identified as one of the key strategies for achieving inclusive growth during the 12th
  • The SMALL FARMER’S AGRIBUSINESS CONSORTIUM (SFAC) has been nominated as a central procurement agency for undertaking price support operations under MSP for pulses and oilseeds.
  • The Ministry of Agriculture circulated a model Agricultural Produce Marketing Committee (APMC) Act, 2003 and suggested amendments to the State APMC Acts so as to promote investment in marketing infrastructure, motivating corporate sector to undertake direct marketing and to facilitate a national integrated market.
  • The APMC Act has also introduced some of the new instruments like contract farming, direct marketing and public — private partnership in management and development of agricultural markets. It also provides for exclusive markets for onions, fruits, vegetables and flowers.
  • 25 states/UTs have already amended their APMC Acts/made varying provisions for the purpose.
  • The committee on Agricultural reforms, 2013, noted that, the APMCs have emerged as some sort of govt sponsored monopolies in supply of marketing services. Thus, the APMC Act has not achieved the basic objective of setting up a network of physical markets.

Some measures that would facilitate the creation of a barrier free national market are:

  • Permit sale and purchase of all perishable commodities such as fruits and vegetables, milk and fish in any market. This could be later extended to all agricultural produce.
  • Exempt market fee on fruits and vegetables and reduce the high incidence of commission charges.
  • Include facilitating organization of farmers markets under the permitted list of CSR activities under the Companies Act 2013, to encourage companies engaged in agri-allied activities, food processing etc. This would be similar to the e-choupal initiative of ITC Ltd., but under CSR.
  • FPOs / self help groups (SHGs) can be encouraged to organize farmers markets near urban centers.

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