Marketing Problems Of Agriculture In India

welcome URICM, GANDHINAGAR

PROBLEMS IN MARKETING OF AGRI- PRODUCTS IN INDIA

Dr. A.K.Asthana Hrishikesh

Performance of Agriculture ► India

has made spectacular progress in agriculture since independence. ► Production of food grain registered nearly four times increase ► A mere 54.9 million metric tonnes in 1949 – 50 to 203 million metric tonnes in 1998 – 99. ► continuous growth of about 3 per cent to 4 per cent in food

India Position in World in Production of Selected Commodity Item

India’s % Share to the World

India Rank in World

Total Pulse

21.1

First

Tea

27.7

First

Jute & allied fiber

61.3

First

Wheat

11.7

Second

Paddy

22.4

Second

Groundnut

22.2

Second

sugarcane

21.8

Second

Vegetable

9.2

Second

Fruit

8.6

Second

Cotton

18.8

Third

Cereal

11.2

Third

Course grain

3.8

Fourth

Crop wise Estimated Marketable Surplus as Percentage of Production Commodit y Rice

Marketabl e surplus Ratio ( %) 43

Commodit y

Marketable surplus Ratio ( %) 84.3

Wheat

51.5

Fruit

97.0

Mustard &Rape Other oilseeds Sugarcane

Pulse

72.4

Cotton

100

Oilseed

79.6

Vegetables

83.0

Groundnut

68.3

86.3 92.9

nd nu t

Commodity

Fr u it

Ve ge tab le s

Co tto n

an dR ap Ot e he ro ils ee ds Su ga rc a ne

Mu sta rd

Gr ou

Oi lse ed

Pu lse

W he at

Ri ce

Percentage of Production

Crop wise Estimated Marketable Surplus as Percentage of Production

120 100 80

60 40 20 0

Scenario of Agricultural Marketing

► This

surplus needs to be marketed so that producer get good market margin. ► Marketing agriculture produce is very complicated and consists of complex operation. ► Due to imperfect market structure and conduct, market performance is not satisfactory.

Agricultural Marketing in India National

Commission on Agriculture “ agricultural marketing starts with a decision to produce a saleable farm commodity and it involves all aspects of market structure of system, both functional and institutional, based on technical and economic considerations and includes pre and post- harvest

Agricultural Marketing in India  The

Indian Council of Agricultural Research (a) assembling (concentration) (b) preparation for consumption (processing) & (c) distribution (marketing) functions of agriculture marketing.

Number of Agriculture Market in India as on August 2001 Market

Type

Number

Agriculture Market

Whole Sell Market

7304(17)

Primary rural market

27,294(65)

Principal market

2355(6)

Sub Yard

4822(12)

Total

41775(100)

Regulated market

Source: Directorate of marketing and inspection, Faridabad

Graphic Presentation of Number of Agriculture Market in India as on August 2001 Sub Yard 12% Principal market 6%

Whole sell market 17%

Primary rural market 65%

Problem Areas in Agriculture Marketing ► CONSTRAINT 

  

FACTORS

Characteristic of Agriculture Production System Post Harvest Practice Constraint Poor Institutional Support Service Market Structure Conduct and Performance

Problem Areas in Agriculture Marketing ►Characteristic

of Agriculture Production System

 Small

Scale Production  Seasonality of Production and Demand

Cont…  Post

Harvest Practice Constraint

 Lack

of Poor Infrastructure  Lack of Packaging of the Products  Lack of Grading and Standardisation

Cont…  Post

Harvest Practice Constraint

 Overlapping

Marketing

Channel  Lack of Marketing Information  Lack of Knowledge of Market  Immediate Need of Cash

► Poor

Institutional Support Service

 Poor

Market Extension Support Service  Lack of Appropriate Policy Support

Cont…

Cont…

► Market

Structure Conduct and Performance

Thank you