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Issues of Agricultural Issues of Agricultural Marketing in India Marketing in India Baban Bayan Baban Bayan Department of Humanities and Department of Humanities and Social Sciences, IIT Guwahati, Social Sciences, IIT Guwahati, Guwahati-39 Guwahati-39

Agricultural Marketing, India,

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Page 1: Agricultural Marketing, India,

Issues of Agricultural Issues of Agricultural Marketing in IndiaMarketing in India

Baban BayanBaban Bayan

Department of Humanities and Department of Humanities and Social Sciences, IIT Guwahati, Social Sciences, IIT Guwahati,

Guwahati-39Guwahati-39

Page 2: Agricultural Marketing, India,

IntroductionIntroduction Agricultural marketing needs adequate attention.Agricultural marketing needs adequate attention.

In recent years, agricultural markets have grown In recent years, agricultural markets have grown in size and complexity, not only in terms of in size and complexity, not only in terms of volumes and commodities traded but also in terms volumes and commodities traded but also in terms of regulatory reforms and proliferation of of regulatory reforms and proliferation of marketing channels and arrangements, with new marketing channels and arrangements, with new and evolving roles played by both state and and evolving roles played by both state and private players (Chand, 2012).private players (Chand, 2012).

Sidhu (1995) points out that to sustain Sidhu (1995) points out that to sustain modernization in agriculture and its productivity, a modernization in agriculture and its productivity, a continuous search for improved methods of continuous search for improved methods of agricultural marketing is required. agricultural marketing is required.

Page 3: Agricultural Marketing, India,

IntroductionIntroduction Real agricultural markets function in a far more Real agricultural markets function in a far more

complex manner and perform a wide range of other complex manner and perform a wide range of other tasks critical to the processes of social reproduction tasks critical to the processes of social reproduction and development (Jan and white, 2012). and development (Jan and white, 2012).

To ensure producer’s welfare literatures on To ensure producer’s welfare literatures on agricultural marketing aptly advocates for agricultural marketing aptly advocates for availability of sound physical infrastructure, availability of sound physical infrastructure, transportation, marketing institutions and price transportation, 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 and efficiency, extraction and exploitation (Jan and white, 2012). white, 2012).

Page 4: Agricultural Marketing, India,

IntroductionIntroductionThe various problems facing the agricultural The various problems facing the agricultural marketing system were summarized by the twelfth marketing system were summarized by the twelfth plan working group on agricultural marketing plan working group on agricultural marketing (Planning Commission 2011)(Planning Commission 2011)

Too many intermediaries resulting in high cost of goods and Too 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 infrastructure Private 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 and Market 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.

Page 5: Agricultural Marketing, India,

IntroductionIntroduction The empiricist researchers have not paid much heed to The empiricist researchers have not paid much heed to

scholars who have identified malpractices towards scholars who have identified malpractices towards producers by super markets in “buyer-driven” supply producers by super markets in “buyer-driven” supply chains. These include delayed payments; reductions in chains. These include delayed payments; reductions in prices at the last minute when suppliers have no prices at the last minute when suppliers have no alternative, removal of suppliers from lists for no good alternative, removal of suppliers from lists for no good reason; high interest rates and the use of restrictive reason; high interest rates and the use of restrictive contracts with tough penalties for any non-compliance contracts 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 been The key issues of Agri. Marketing in India have been identified as Market infrastructure, identified as Market infrastructure, Logistics/transportation, farm gate prices and its Logistics/transportation, farm gate prices and its leakages, institutional mechanism, public policy leakages, institutional mechanism, public policy initiatives and food processing and contract farming. initiatives and food processing and contract farming.

Page 6: Agricultural Marketing, India,

Market InfrastructureMarket Infrastructure

Reshma (2010) observes that post harvest losses Reshma (2010) observes that post harvest losses due to inefficient handling and poor storage due to inefficient handling and poor storage structure account for an estimated 10 percent of structure account for an estimated 10 percent of food grains production and 25 percent of fruits and food grains production and 25 percent of fruits and vegetables production in India.vegetables production in India.

In India, there are numerous concentrated belts In India, there are numerous concentrated belts where fruits of excellent quality are produced and where fruits of excellent quality are produced and the establishment of post harvesting and the establishment of post harvesting and marketing infrastructure will provide needed fillip marketing infrastructure will provide needed fillip to achieve significant volumes for exports (Yadav, to achieve significant volumes for exports (Yadav, 1995).1995).

Page 7: Agricultural Marketing, India,

Market InfrastructureMarket Infrastructure

Marketing infrastructure has two broad Marketing infrastructure has two broad dimensions- quantity and quality (Chand, 2012). dimensions- quantity and quality (Chand, 2012).

Widening gap between the rise in marketed Widening gap between the rise in marketed surplus and the number of markets (Chand, 2012).surplus and the number of markets (Chand, 2012).

As India is lagging behind in establishment of As India is lagging behind in establishment of enough markets, it is also lagging behind in enough markets, it is also lagging behind in improving the quality of the existing markets.improving the quality of the existing markets.

Page 8: Agricultural Marketing, India,

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

Page 9: Agricultural Marketing, India,

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 becomes seller driven supply chain in marketing becomes mandatory.mandatory.

In case of perishable horticultural commodities like In case of perishable horticultural commodities like fruits and vegetables, production plan should be fruits 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 was In 2008, number of regulated markets in India was 7,566 against 7,177 in 2001 registering an increase 7,566 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).

Page 10: Agricultural Marketing, India,

Transportation/LogisticsTransportation/Logistics

To ensure even distribution of agricultural output To ensure even distribution of agricultural output across the country, transportation facility is across the country, transportation facility is essential: an win-win outcomeessential: an win-win outcome

There is a transition in retailing from production or There is a transition in retailing from production or technology push to market pull which required technology push to market pull which required producers and suppliers to increase flexibility and producers 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 strategic Transport is important because of its strategic implication for implication for costcost (Yadav, 1995). (Yadav, 1995).

Page 11: Agricultural Marketing, India,

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 by for 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 is of fruits and vegetables is transported by roads in the country. But increasing transported 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 production Arnold (2010) identifies factors related to production and those related to logistics, where the later includes and 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 the b) knowledge concerning markets and the characteristics of final demand, c) access to distribution characteristics of final demand, c) access to distribution and retail networks, d) availability and financial terms and retail networks, d) availability and financial terms of trade finance. of trade finance.

Page 12: Agricultural Marketing, India,

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 low The farmers’ stake at the price rise has remained low with increased participation of non producing agents in with increased participation of non producing agents in agricultural marketing. agricultural marketing.

Middleman successfully turned marketing policies to Middleman successfully turned marketing policies to their benefit dictating terms to producers and thwarting their 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 the Some 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 would b) rejecting direct payment to producers, which would bypass commission agents and c) determining prices bypass commission agents and c) determining prices through non transparent methods (Chand, 2012). through non transparent methods (Chand, 2012).

Page 13: Agricultural Marketing, India,

Farm gate price and its leakagesFarm gate price and its leakages The regulated markets that came to protect the The regulated markets that came to protect the

interests of the farmers deviated themselves from their interests of the farmers deviated themselves from their goal.goal.

It needs to be carefully worked whether revenue It needs to be carefully worked whether revenue considerations are more important than increments in considerations are more important than increments in price realization to producers from selling produce price realization to producers from selling produce outside outside mandimandi; and whether there are ways to take ; and whether there are ways to take care of the state revenue from agricultural marketing if care of the state revenue from agricultural marketing if produce does not pass through produce does not pass through mandimandis (Chand, 2012). s (Chand, 2012).

A competitive market structure is expected to help A competitive market structure is expected to help producers in getting remunerative prices of their producers in getting remunerative prices of their produce, provided role of middlemen in grabbing produce, provided role of middlemen in grabbing marketing margin is less or non-existent – marketing margin is less or non-existent – In agriculture In agriculture it is unwarrantedit is unwarranted (Jan and White, 2012). (Jan and White, 2012).

Page 14: Agricultural Marketing, India,

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 farmers conglomerating the output of the small holder farmers and channelizing in bulk to markets becomes and channelizing in bulk to markets becomes necessary.necessary.

Sidhu (1995) observes that the traditional middlemen Sidhu (1995) observes that the traditional middlemen are often considered as hoarders and speculators and are often considered as hoarders and speculators and blamed for everything that goes wrong in the blamed for everything that goes wrong in the marketing system.marketing system.

The interaction between marketing and production is The interaction between marketing and production is often overlooked.often overlooked.

There is no harm for producers to look for the least There is no harm for producers to look for the least better number of middlemen when there remains better number of middlemen when there remains managerial complexity in supply chainmanagerial complexity in supply chain

Page 15: Agricultural Marketing, India,

Institutional MechanismInstitutional Mechanism An effort to preserve farmers’ interests may be laid An effort to preserve farmers’ interests may be laid

through the provision of institutional facilities like through the provision of institutional facilities like small farmers’ associations, producers’ small farmers’ associations, producers’ organization, co-operatives etc. apart from physical organization, co-operatives etc. apart from physical facilities.facilities.

The farmers’ organizations and cooperatives not The farmers’ organizations and cooperatives not only lower the transaction costs of the firms, but only lower the transaction costs of the firms, but also lower input costs for the farmers and provide also 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 the The more important issue of providing the institutional and operational framework which institutional and operational framework which makes the facilities viable is ignored (Sidhu, 1995).makes the facilities viable is ignored (Sidhu, 1995).

Page 16: Agricultural Marketing, India,

Institutional MechanismInstitutional Mechanism

Cooperatives were developed as a countervailing Cooperatives were developed as a countervailing force to curb the speculative activities of private force to curb the speculative activities of private trade (Kahlon and George, 1995).trade (Kahlon and George, 1995).

Collective action through cooperatives or Collective action through cooperatives or associations is important not only to be able to buy associations is important not only to be able to buy and sell at a better price, but also to help small and sell at a better price, but also to help small farmers adapt to new patterns and much greater farmers adapt to new patterns and much greater levels of competition (Singh, 2012).levels of competition (Singh, 2012).

Marketing practice should come in a package Marketing practice should come in a package

Page 17: Agricultural Marketing, India,

Institutional MechanismInstitutional Mechanism

Jan and White (2012) says, “if the marketing Jan and White (2012) says, “if the marketing system is conceived as having boundaries then system is conceived as having boundaries then power in markets flow not just through socially power in markets flow not just through socially engineered organizations, noted among which are engineered organizations, noted among which are business associations and lobbies, but also through business 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 and patriarchy, ethnic solidarity, religious authority and the multifarious practices of locality”the multifarious practices of locality”

More emphasis on quality standards, frequent More emphasis on quality standards, frequent handling of processed goods etc. will make greater handling of processed goods etc. will make greater demands on the physical and institutional facilities demands on the physical and institutional facilities in the market (Kahlon and George, 1995).in the market (Kahlon and George, 1995).

Page 18: Agricultural Marketing, India,

Public PolicyPublic Policy In India, the top policy concerns have been price In India, the top policy concerns have been price

regulation through the Essential Commodities Act regulation through the Essential Commodities Act and the Public Distribution Systems (PDS) and and the Public Distribution Systems (PDS) and parametric regulation through the regulation of parametric regulation through the regulation of markets-Agricultural Produce Market Committees markets-Agricultural Produce Market Committees (APMC) Acts (Swaminathan, 2000).(APMC) Acts (Swaminathan, 2000).

Essential Commodities Act (1955) provides for Essential Commodities Act (1955) provides for instruments like license, permit, regulation and instruments like license, permit, regulation and orders for a) price control, b) storage, c) stocking orders 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 the disposal g) sale h) compulsory purchase by the government and i) sale (levy) to the governments government and i) sale (levy) to the governments under the ECA (Chand, 2012). under the ECA (Chand, 2012).

Page 19: Agricultural Marketing, India,

Public PolicyPublic Policy Agricultural Produce Marketing Committee Acts do Agricultural Produce Marketing Committee Acts do

not follow the setting up of parallel competitive not follow the setting up of parallel competitive markets. The markets set up under the acts also do markets. The markets set up under the acts also do not provide direct and free marketing, organized not provide direct and free marketing, organized retailing, smooth raw material supplies to agro retailing, 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 new growers 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 the promotion of public-private partnership in the management and development of agricultural management and development of agricultural markets, regulation and promotion of contract markets, regulation and promotion of contract farming etc. (Dev, 2007).farming etc. (Dev, 2007).

Page 20: Agricultural Marketing, India,

Public PolicyPublic Policy The model APMC Act notes that the monopoly of The model APMC Act notes that the monopoly of

government regulated wholesale markets has government regulated wholesale markets has prevented the development of a competitive prevented the development of a competitive marketing system (Banerji et al., 2012).marketing system (Banerji et al., 2012).

As critics of neo-liberal policy prescription have As critics of neo-liberal policy prescription have demonstrated, “deregulation agenda” are primarily demonstrated, “deregulation agenda” are primarily geared towards removing all traces of intervention geared towards removing all traces of intervention (with all their flaws) that aim to bring at least some (with all their flaws) that aim to bring at least some benefit from the otherwise oppressive capitalist benefit from the otherwise oppressive capitalist regime to labour, petty producers and consumers, regime to labour, petty producers and consumers, while retaining and even strengthening those while retaining and even strengthening those aspects of state intervention that explicitly benefit aspects of state intervention that explicitly benefit capital (Ghosh 2012, Patnaik,1996). capital (Ghosh 2012, Patnaik,1996).

Page 21: Agricultural Marketing, India,

Public PolicyPublic Policy The model APMC Act proposed in 2003 notes that The model APMC Act proposed in 2003 notes that

the monopoly of government regulated wholesale the monopoly of government regulated wholesale markets has prevented the development of a markets 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 have As critics of neo-liberal policy prescription have demonstrated, “deregulation agenda” are primarily demonstrated, “deregulation agenda” are primarily geared towards removing all traces of intervention geared towards removing all traces of intervention (with all their flaws) that aim to bring at least some (with all their flaws) that aim to bring at least some benefit from the otherwise oppressive capitalist benefit from the otherwise oppressive capitalist regime to labour, petty producers and consumers, regime to labour, petty producers and consumers, while retaining and even strengthening those while retaining and even strengthening those aspects of state intervention that explicitly benefit aspects of state intervention that explicitly benefit capital (Ghosh 2012, Patnaik,1996). capital (Ghosh 2012, Patnaik,1996).

Page 22: Agricultural Marketing, India,

Public PolicyPublic Policy The main instruments of agricultural price policy have The main instruments of agricultural price policy have

been 1) Assured prices to producers through the system been 1) Assured prices to producers through the system of Minimum Support Prices (MSPs) implemented through of Minimum Support Prices (MSPs) implemented through obligatory procurement 2) Inter and intra-year price obligatory procurement 2) Inter and intra-year price stability through open market operations, 3) Maintaining stability through open market operations, 3) Maintaining buffer stock, 4) Distributing food grains at reasonable buffer stock, 4) Distributing food grains at reasonable prices through the PDS. prices through the PDS.

The price policy implemented in the last four and a half The price policy implemented in the last four and a half decades has mainly benefitted wheat and rice among decades has mainly benefitted wheat and rice among food grains and sugar cane and cotton among other food grains and sugar cane and cotton among other crops (Chand, 2012). crops (Chand, 2012).

FDI in retail is fast becoming an important issue around FDI in retail is fast becoming an important issue around which analysis, policy and politics is playing out in which analysis, policy and politics is playing out in recent period.recent period.

Page 23: Agricultural Marketing, India,

Public PolicyPublic Policy

The struggle in retail may be viewed as one between The struggle in retail may be viewed as one between two forms of capital; large scale corporate capital on two forms of capital; large scale corporate capital on the one hand and smaller scale (informal) capital on the one hand and smaller scale (informal) capital on the other (Frodin 2012).the other (Frodin 2012).

With the large scale exodus from agriculture and the With the large scale exodus from agriculture and the tardy pace of job creation in industry, petty trade has tardy pace of job creation in industry, petty trade has become one of the major sources of livelihoods for a become one of the major sources of livelihoods for a vast array of India’s poor (Jan and White, 2012).vast array of India’s poor (Jan and White, 2012).

According to one estimate, around 40 million people According to one estimate, around 40 million people live on activities related to retail sector, 98% of which live on activities related to retail sector, 98% of which are within the local informal sector (Sridhar, 2007).are within the local informal sector (Sridhar, 2007).

Page 24: Agricultural Marketing, India,

Public PolicyPublic Policy Adequate field experience is a must to find a more Adequate 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 our Kahlon and George (1995) rightly observe that our marketing policies will not make much headway without marketing 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 many Agricultural marketing is a state subject and many states are either slow or reluctant to implement various states are either slow or reluctant to implement various reforms and legislations related to marketing, even reforms and legislations related to marketing, even though they are considered necessary for developing though they are considered necessary for developing the market and trade and improving the welfare of the market and trade and improving the welfare of producers and consumers (Chand, 2012).producers and consumers (Chand, 2012).

Page 25: Agricultural Marketing, India,

Food Processing and Contract Food Processing and Contract FarmingFarming

Availing the food processing arrangements helps Availing the food processing arrangements helps farmers particularly engaged with production of farmers particularly engaged with production of perishable horticultural products.perishable horticultural products.

Market structure has changed which encourages arrival Market structure has changed which encourages arrival of more processed products.of more processed products.

There are three vital factors for the steadily increasing There 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 and b) 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 and Convenience for use and reduction of cleaning and preparation requirements (Yadav, 1995).preparation requirements (Yadav, 1995).

Page 26: Agricultural Marketing, India,

Food Processing and Contract Food Processing and Contract FarmingFarming

Kahlon and George (1995) opine that processing Kahlon and George (1995) opine that processing practices have to be evolved which reduces the practices 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 vegetables Out of total production of fruits and vegetables every year, less than 2 per cent goes into every year, less than 2 per cent goes into processing units. Its share of fruits and vegetables processing 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 have The food processing units in the country will have to strive hard for winning the confidence of the to strive hard for winning the confidence of the consumers (Yadav, 1995).consumers (Yadav, 1995).

Page 27: Agricultural Marketing, India,

Food Processing and Contract Food Processing and Contract FarmingFarming

Contract farming can potentially have larger beneficial Contract farming can potentially have larger beneficial effects on products that are perishable, that have larger effects on products that are perishable, that have larger supply chains than wheat or rice, and where quality supply chains than wheat or rice, and where quality improvement would matter a great deal more (Banerji et al., improvement would matter a great deal more (Banerji et al., 2012).2012).

The expectation behind contract farming is based upon The expectation behind contract farming is based upon removal of intermediaries and introducing an assured removal of intermediaries and introducing an assured purchase of output of farmers by the contracting party at a purchase of output of farmers by the contracting party at a remunerative price for him.remunerative price for him.

Contractual relationship overlooks the fact that the Contractual relationship overlooks the fact that the contractual relationship between producers and large contractual relationship between producers and large corporations reduces smallholders with less bargaining power corporations reduces smallholders with less bargaining power effectively to wage-labour status with the former deciding effectively to wage-labour status with the former deciding everything from the type of crop, choice of inputs, the everything 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).

Page 28: Agricultural Marketing, India,

ConclusionConclusion Effective agricultural marketing is capable of bringing Effective agricultural marketing is capable of bringing

welfare to actual producers away from the non welfare to actual producers away from the non producing agents who grab maximum marketing margin producing 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 processing market infrastructure, institutions and food processing and contract farming arrangements, there is serious and contract farming arrangements, there is serious policy dilemma in providing needed agricultural policy dilemma in providing needed agricultural marketing framework in India.marketing framework in India.

Exploitation of farmers is to the extent that only a 20 Exploitation of farmers is to the extent that only a 20 paisa of consumers’ 1 rupee goes to actual producers paisa of consumers’ 1 rupee goes to actual producers and the remaining 80 paisa goes to intermediaries (Dev, and the remaining 80 paisa goes to intermediaries (Dev, 2007).2007).

Page 29: Agricultural Marketing, India,

ConclusionConclusion Unorganized and small holder farmers are the most Unorganized and small holder farmers are the most

vulnerable section in the agricultural marking process vulnerable section in the agricultural marking process in the country against the other relatively better off in 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 a In India, a serious consequence of selling at a designated place, the yard of a designated place, the yard of a mandimandi, is that once , is that once agricultural produce has been brought to it, it is agricultural produce has been brought to it, it is seldom taken back in the event of any unfair deal seldom taken back in the event of any unfair deal (Chand, 2012).(Chand, 2012).

Current policies on agricultural marketing has to be Current policies on agricultural marketing has to be revisited and designed in the way that the actual revisited and designed in the way that the actual producers gain the most out of it.producers gain the most out of it.

Page 30: Agricultural Marketing, India,

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