POST HARVEST PROFILE OF JOWAR - Agmarknet

Micro level studies indicate that distress sale by small farmers accounts for about 50
percent of the marketable surplus. To meet the immediate financial requirements, the
farmers are often compelled to sell their produce immediately after harvest, when the prices
are low. To avoid such distress sale, Government of India, promoted Pledge Finance
through a network of rural godowns and negotiable warehouse receipt system. Through this
scheme, small and marginal farmers can get immediate financial support to meet their
requirements and retain the produce till they get remunerative price.
According to RBI guidelines, loan/advances up to 75 percent of the value of the
produce stored in the godown can be advanced to farmers against pledge/hypothecation of
agricultural produce including warehouse receipts subject to a ceiling of Rs. 5 lakh per
borrower. Such loan shall be for a period of 6 month, which can be extended up to 12
months based on financing banks commercial judgement. The commercial/co-operative
banks/RRBs provide credit to the farmers for the produce stored in the godown under this
scheme. The banking institutions accept the godown receipt on its being duly endorsed
and delivered to bank for pledge loan against hypothecation of produce as per RBI
guidelines. Farmers are given freedom to take back their produce once the pledge loan is
repaid. Facility of pledge finance is extended to all farmers, whether they are the borrowing
members of Primary Agricultural Credit Societies (PACS) or not and the District Central
Cooperative Banks (DCCBs) directly finance individual farmers on the strength of the
pledge.
Benefits :
► Increase the retention capacity of the small farmers to avoid distress sale.
► Minimises the farmers’ dependence on the commission agents as the pledge finance
provides financial support to them immediately after harvest period.
► Participation of the farmers, irrespective of their land holding, helps in increasing the
arrivals in market yards throughout the year.
► Gives a sense of security to the farmers even if their produce is not sold out in market
yard immediately.
4.1 Assembling:
4.0 MARKETING PRACTICES AND CONSTRAINTS
The various agencies engaged in the assembling of Jowar are as below.
i) Producers
ii) Village Merchants
iii) Itinerant merchants
iv) Wholesale merchants and commission agents
v) Processor
vi) Co-operative Organizations
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