Agriculture Marketing System in India before and After Independence

What is Agriculture Marketing?

It is a process that involves:

Assembling

Storage

Processing

Transportation

Packaging

Grading

Distribution

of Agriculture Produce

How was Agriculture Marketing System before Independence?

1. Faulty Weighing & Manipulation

Farmers were selling produce to Traders

These traders cheated the farmers by using faulty weighing techniques and manipulation of accounts

2. No Market Information

Farmers were forced to sell their product at cheaper price

This is because farmers did not have market information (correct price of their produce)

3. No Storage Facility

Farmers did not have storage facility to keep their produce

Hence they could not store their goods to sell them at higher price in future

What steps were taken by Govt to improve agriculture marketing?

1. Regulation of Markets

Govt established Mandis (or markets) which had transparent market conditions

Hence,farmers were saved from manipulation and got better price for their produce

2. Infrastructure Facilities

Govt developed physical infrastructure facilities like

roads, railways, warehouses, godowns, cold storage units etc

Hence, agriculture produce could be stored for long period of time and farmer can wait instead of selling at a lower price

3. Cooperative Marketing

It is a system by which all farmers can pool their produce (like milk) according to different grading

This food is processed and marketed by coopetative societies to urban centers (towns and cities)

Hence, work of agriculture marketing is done by copoerative societies instead of the farmers

4. Policy Instruments like MSP, Buffer stock, PDS

Policy instruments means schemes of the government to overcome different problems

Govt has introduced various policy instruments for agricultural marketing like:

MSP

Govt has assured farmers of Minimum Support Price (MSP)

Hence, farmers are guaranteed a minimum amt for their produce and hence they do not need to sell their produce at a loss

Buffer Stock

Govt has established Food Corporation of India

This organisation purchases food grains from farmers like wheat and rice as a buffer (surplus)

This is used in case of an emergency like famine

PDS

Govt has established Public Distribution System (PDS) or ration shops

These purchase food from farmers and give to poor at free or subsidized rates

What are emerging agriculture marketing channels?

OR

What steps should be taken by government to improve agriculture marketing?

Selling Produce Directly to Customers

Certain markets have come up where farmers can sell their produce directly to customers without the interference of farmers

Example

Contracts with MNC/Food chains

Many MNC/ Fast food chains enter contract with farmers

Farmers can directly sell their produce to these companies

It is beneficial to both parties, Farmers get a better price and these companies get goods at a cheaper price

PROBLEMS STILL BEING FACED IN AGRICULTURAL MARKETING

Private Trade

Large amt of agricultural trade is handled by big farmers, money lenders, politicians

In this trade, small farmer get exploited and do not get a good price for their produce

Problems Faced by Cooperative Society:

Many cooperative societies are facing problems like

1. Inadequate Coverage of Farmers
2. Lack of Appropriate Link between Marketing and Processing Cooperatives
3. Inefficient Financial Management
4. Infrastructure Improvement

Infrastructure in rural areas need to be improved

Like Better Quality roads, More Cold Storage facilities

Developing More Rural Periodic Markets

Around 27,000 New rural markets need to be developed to realise the full potential of rural markets

Need for Agricultural diversification

Why farmers should not depend solely on agriculture for sustenance:

1. There is higher risk in just depending on agriculture
2. To provide more employment opportunities to rural people and present them with

opportunities to get higher

NCERT Questions

Question 4

Explain the steps taken by the government in developing rural markets.

Question 5

Why is agricultural diversification essential for sustainable livelihoods?

or

Question 6

Explain the role of non-farm employment in promoting rural diversification.

Question 7

What do you mean by agricultural marketing?

Question 8

Mention some obstacles that hinder the mechanism of agricultural marketing.

Question 9

What are the alternative channels available for agricultural marketing?

Give some examples.

Question 11

Do you think various measures taken by the government to improve agricultural marketing are sufficient?

Discuss.

MCQ Other Books

Question 1

In the following questions, select the correct answers:

Why is minimum support price fixed by the government?

1. For government own benefit
2. To safeguard the interest of farmers
3. To safeguard the interest of consumers
4. None of these

Question 2

Agriculture marketing does not comprise of _____.

1. Transportation of the produce to the market place for sale
2. Grading of the produce according to the quality
3. Storage of the produce for sale in future
4. Credit taken to meet expenditure on agriculture

Question 3

AGMARK is related with:

1. Agricultural production in government farms
2. Standard quality of agricultural produce
3. Heavy machinery
4. None of the above

Question 4

In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R).

Assertion (A): It is essential to develop proper storage facilities in rural areas.

Reason (R): Farmers can wait for better price for their products in the market.

Mark the correct choice:

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

Question 5

Assertion (A): The Prime Minister urged to increase the rural income by increasing non-farm activities.

Reason (R): Non-farm activities (agro-processing industries, poultry, craft, handloom) provide alternative avenues for sustainable livelihood and may raise the level of income as the risks due to fluctuations in production and market prices is generally less.

Mark the correct choice:

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.