Defects/Problems Of Indian Agricultural Marketing
Even though India is an agricultural country, still its agricultural marketing has been defective. The Indian farmers are unable to get a reasonable price for the products even after their hard work and are fully exploited by the middlemen.
Suggestions for Improvement
Elimination of Mediators
The elimination of mediators is necessary from agricultural marketing because unless the farmer is allowed the facility of direct sales to the customer, he cannot receive a fair price for it. Thus, with the elimination of mediators, ‘consumer grain centers’ should be established where the farmer sells his produce.
Use of Standard Weight
For improving agricultural marketing standard weights are specifically required, these should be manufactured and organized by the government. If any defect in weights is reported, a strict punishment system should be started so that, there should be no fraud in marketing. This would not only improve the marketing system but the fraudulent tendencies of the traders would also be restricted.
In villages loans for the farmers are arranged by well-up people, moneylenders, etc., who also make a deal of their products and exploit them on its basis. If the government establishes banks, cooperative societies, or other financial organizations then this problem can be solved. The farmers in the villages should also be encouraged to spend economically and save money so that at the time of need they get money from their savings. By this, the farmers would not sell their produce in a hurry and get full profits out of it.
Development of Means of Transport
The backbone of agricultural marketing is the means of transport. Thus, such roads should be constructed in rural areas which remain capable of transportation during all seasons. The tire made bullock carts, diesel, or patrol trucks or tractors should be available in rural areas. Similarly, rail and water transport development is also necessary, keeping in view the marketing of agricultural produce, so that the grains and other perishable products can be quickly sent to the market.
Publicity of Market Policies
Sufficient arrangements should be made for the transmission of the authorized prices of agricultural produce and quantity of production etc. so that the facts relating to agricultural marketing can be put before the concerned parties.
For the improvement of agricultural marketing, it is necessary that arrangements are made for the appropriate training of the employees related to marketing administration. Training with regard to the system of controlled markets etc. is very important for the improvement of agricultural marketing.
Regulation of ‘Mandis’
To provide a fair price to the farmers for their produce in the mandis, ‘organized mandis’ should be established by the government, appropriate arrangements should be made in these mandi-markets for weighting, storage, transport, etc. and the farmers should also be given regularly powers in it.
The Indian government should establish a Marketing and Inspection Directorate for market survey, which collects useful data relating to production, consumption, export, demand price level, standardization, distribution system, etc. and publishes them from time to time.
The Indian government has established The All India Storage Corporation realizing the importance of storage. The object of this corporation is to establish stores in villages, cooperative societies are instructed to organize the stores system. For this, they are provided additional, technical, and financial assistance.
Grading and Standardization of Products
Though the Agricultural Production Act was passed in 1937 for standardization etc. of agricultural products, still no recognizable progress has been made in this direction. For making an effective system of expansion of the activity of gradation and quality control, laboratories should be established. A central laboratory was established in Nagpur and provisional laboratories were established in Madras, Kanpur, Rajkot, Amritsar, Calcutta, and Mumbai but these should be situated in small villages and not in big towns.