Roadmap for Answer Writing 1. Introduction: Define Key Terms Operational Stocks: Stocks maintained by the government to fulfill food security needs, especially for public welfare programs like the Public Distribution System (PDS). Strategic Reserves: Surplus stocks held to stabilize food prices and ensure ...
Model Answer Small and marginal farmers in India face significant challenges due to underdeveloped and fragmented marketing infrastructure. These farmers, who make up nearly 85% of the farming population, often struggle to access markets that can provide fair prices for their produce. Some of the keRead more
Model Answer
Small and marginal farmers in India face significant challenges due to underdeveloped and fragmented marketing infrastructure. These farmers, who make up nearly 85% of the farming population, often struggle to access markets that can provide fair prices for their produce. Some of the key impacts include:
- Limited Market Access: Farmers often have to sell their produce in local and unorganized markets, which offer lower prices. According to the National Institute of Agricultural Marketing (NIAM), the lack of access to distant markets restricts farmers from maximizing their profits.
- Post-Harvest Losses: India experiences significant post-harvest losses, with up to 30% of horticultural produce lost annually due to inadequate infrastructure (APEDA). These losses reduce the amount of produce available for sale and affect farmers’ earnings.
- Information Asymmetry: Without access to market information, such as price trends or demand forecasts, farmers often make suboptimal marketing decisions, leading to lower profits.
- Exploitation by Middlemen: Small farmers often depend on middlemen who charge high commissions, reducing the farmers’ share of the profit.
Role of Farmer Producer Organisations (FPOs) in Enhancing Marketing Efficiency
Farmer Producer Organisations (FPOs) can play a critical role in improving the marketing efficiency for small and marginal farmers by providing them with the following advantages:
- Collective Bargaining Power: FPOs help farmers join forces to negotiate better prices for their produce. For example, Amul’s cooperative model empowers dairy farmers to secure higher prices for milk, increasing their income.
- Infrastructure Development: FPOs like LEAF have built facilities for sorting, grading, and packaging, which add value to the produce and reduce post-harvest losses.
- Value Addition and Branding: FPOs also enable farmers to create branded products, as seen with SIMFED’s ‘Himalaya’ brand, which helps organic farmers in Sikkim sell their produce at premium prices.
- Market Linkages: By developing direct market linkages, FPOs, such as the Uralungal Labour Contract Co-operative Society in Kerala, help farmers bypass intermediaries and sell directly to buyers, ensuring better prices.
By addressing gaps in the marketing infrastructure, FPOs can significantly improve farmers’ incomes and contribute to the goal of doubling farmers’ income. However, more work is needed to ensure that the entire infrastructure is accessible and efficient.
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Model Answer Operational Stocks and Strategic Reserves In India, operational stocks refer to the foodgrains maintained for distribution under public welfare schemes like the Public Distribution System (PDS). These stocks are intended to meet the daily food requirements of the population, ensuring foRead more
Model Answer
Operational Stocks and Strategic Reserves
In India, operational stocks refer to the foodgrains maintained for distribution under public welfare schemes like the Public Distribution System (PDS). These stocks are intended to meet the daily food requirements of the population, ensuring food security. Strategic reserves, on the other hand, are surplus stocks held beyond the operational needs by the Food Corporation of India (FCI). These reserves help stabilize food prices and are used in case of emergencies such as droughts or unforeseen food shortages.
Buffer Stocking Policy: A Critical Evaluation
The buffer stocking policy in India plays a crucial role in food security by managing food supply, stabilizing prices, and preventing crises. However, there are several concerns with its implementation:
Conclusion
While the buffer stocking policy has successfully contributed to food security, its sustainability needs reassessment. Efficient procurement, better storage facilities, increased private sector involvement, and promoting crop diversification are essential to optimize this policy and reduce its financial and logistical burden on the government.
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