Essay Questions · Q12
Q.Explain the problems of agricultural marketing in India and the reforms/measures undertaken to improve it.
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Start your 14-day free trial to unlock the full solution →A. Problems in Indian agricultural marketing
- Too many intermediaries — produce often passes through several traders/agents before reaching the consumer, each taking a margin, so the farmer's realised price is a small fraction of the final consumer price.
- Inadequate storage and warehousing — forces many farmers, especially small ones, into distress sales immediately after harvest when prices are lowest.
- Poor market information — farmers often do not know prevailing prices in nearby or distant markets, weakening their bargaining position.
- Malpractices in unregulated markets — manipulated weighing, arbitrary deductions, and delayed payments.
- Weak transport and market infrastructure in many rural areas, raising costs and post-harvest losses, particularly of perishables.
- Limited grading/standardisation, reducing farmers' ability to earn a price premium for better-quality produce.
B. Reforms and government measures
- Regulated markets under state APMC laws — licensed traders, supervised weighing/grading, aimed at protecting farmers from malpractice.
- Minimum Support Price (MSP) and procurement, notably for paddy and wheat, through agencies such as the Food Corporation of India, to guard against sharp price falls.
- Expansion of storage/warehousing capacity via the Central Warehousing Corporation and state warehousing corporations, and a warehouse-receipt system letting farmers borrow against stored produce instead of selling immediately.
- Market information and e-marketing — systems such as e-NAM (electronic National Agriculture Market) that give farmers price information and, in principle, wider buyer access beyond their local market.
- Co-operative marketing societies that pool produce to give members collective bargaining power. …
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