Q.Explain the defects in Agricultural marketing and suggest some remedial measures.

Indian agricultural marketing is weakened by many middlemen, poor storage and transport, distress sale, mandi malpractices, lack of market information and finance, and weak grading. Remedies are regulated and cooperative markets, warehousing, better transport, MSP, price information, grading/standardisation and online markets like e-NAM.

This is a frequently asked 10-mark question in AP Intermediate 2nd year Economics. The AP syllabus treats agricultural marketing in line with the NCERT/CBSE curriculum.

Defects in agricultural marketing:

1. Multiplicity of middlemen. A long chain of village traders, commission agents and wholesalers takes away a large part of the price, leaving the farmer a small share.

2. Lack of storage facilities. Shortage of proper warehouses and cold storage forces farmers to sell immediately after harvest and causes heavy wastage.

3. Inadequate transport. Poor rural roads and limited transport prevent farmers from carrying produce to better markets.

4. Distress or forced sale. Needing cash and lacking holding capacity, small farmers sell at low post-harvest prices rather than waiting for better rates.

5. Malpractices in markets. False weights and measures, unauthorised deductions, and manipulation by traders cheat the farmer.

6. Lack of market information. Farmers often do not know prevailing prices in different markets and are easily exploited.

7. Lack of finance. Dependence on moneylenders and traders for credit ties farmers to selling through them.

8. Absence of grading and standardisation. Without proper grading, good-quality produce does not fetch a premium price.

Remedial measures:

1. Regulated markets to control malpractices and ensure fair weighing and transparent sale.
2. Cooperative marketing societies so farmers can sell collectively and bargain better. …