Annual Report 2009-2010 - Department of Agriculture & Co-operation

Annual Report 2009-2010
58
10
Agricultural Marketing
10.1 Organised marketing of agricultural
commodities has been promoted in the country
through a network of regulated markets. Most of
the state governments and UTs have enacted
legislation (the APMC Act) to provide for regulation
of agricultural produce markets. While by the end
of 1950, there were 286 regulated markets in the
country, the number stands at 7,139 as on 31
March 2009. Besides, the country has 20,868 rural
periodical markets, about 15 per cent of which
function under the ambit of regulation. The advent
of regulated markets has helped in mitigating the
market handicap of producers and sellers at the
wholesale assembling level. But, rural periodic
markets in general and tribal markets in particular,
remained out of the developmental ambit of
regulated markets.
10.2 Constraints in the Present System of
Agriculture Marketing in India: The purpose of
state regulation of agricultural markets was to
protect farmers from exploitation by intermediaries
and traders and also to ensure better
prices and timely payment for their produce. Over
a period of time these markets have, however,
acquired the status of restrictive and monopolistic
markets, providing no help in direct and free
marketing, organised retailing or smooth raw
material supplies to agro-processing. Exporters,
processors, and retail chain operators cannot
procure directly from the farmers as the produce
is required to be channelled through regulated
markets and licensed traders. In the process, there
is an enormous increase in the cost of marketing
and the farmer ends up getting a low price for
his/her produce. Monopolistic practices and
modalities of state-controlled markets have
prevented private investment in the sector. Postharvest
losses are estimated to be of the order of
five to seven per cent in food grains and 25 to 30
per cent in the case of fruits and vegetables.
10.3 The Government has been playing an
important role in developing the agricultural
marketing system in the country. The Department
of Agriculture and Cooperation has three