Revitalization of Rivers in India Draft Policy - Isha Guru Jaggi Vasudev

Revitalization of Rivers In India
Draft Policy Recommendation
BOX 2: Marketing constraints in horticulture
Highly elastic demand for fruits and vegetables, preference of consumers for fresh
farm produce and new e-commerce offer vast scope for increase in production of
fruits and vegetables and farmers’ income in the country. The major constraint
however is marketing. This is reflected in slowdown in diversification towards
horticulture crops, very high growth in horticultural imports, large price spread
between producers and end users, high level of post harvest losses, frequent and
often violent price fluctuations, low level of processing, and very low post harvest
value addition. The main constraint to expand production of fruits and vegetables
is the system of marketing and inadequate processing facility.
Demand side factors and technology are highly favourable for horticulture
revolution at small farms. What is needed is policy support for market
liberalization, producers’ organizations and processing. These require action
both by the states and the Central government. The onus for freeing market for
horticultural produce rests with the states while support of Central government
is crucial for promoting producers’ organizations and fruits and vegetable
processing. (Chand, op.cit.)
4.1 Model APMC Act
Two main legislative instruments with the central and state governments, viz,
the Agricultural Produce Marketing (Regulation) Act and Essential Commodities
Act, 1955 respectively are used to monitor the activities of market functionaries;
however, provisions of the two Acts do not deal with the identified gap in
agriculture / horticulture marketing system. As agriculture marketing is a State
subject in the Constitution, the Central Government had put in place a Model
Agriculture Produce Marketing (Development & Regulation) Act and has been
incentivizing States to adopt it. Adoption of the Model Act is a pre‐condition
for States being eligible for Central Schemes for infrastructure development in
agriculture produce markets.
The Model Act permits legal persons, growers and local authorities to apply for the
Annexures
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