Examine how farmer-producer organizations (FPOs) and other institutional structures help small and marginal farmers become more integrated into the marketing system. Talk about the difficulties these farmers encounter in accessing organized marketplaces and value chains.
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Suraj SinghLearner
Discuss the legislative and policy frameworks needed to support these alternative marketing channels. Assess the potential for contract farming, direct marketing, and e-commerce platforms to empower farmers and increase their access to markets.
Abhishek SinghLearner
Analyze the policy and investment goals in this area and discuss the role that agri-logistics infrastructure—such as cold storage facilities, transportation networks, and warehousing—plays in lowering post-harvest losses and improving farmers’ access to markets.
Krishna RaoLearner
Assess the degree to which government measures, such as the establishment of an electronic national agricultural market (e-NAM) and the building of an agri-logistics infrastructure, have improved the efficiency and openness of supply chains and agricultural marketing.
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The government's initiatives, such as the creation of a national agricultural market (e-NAM) and the development of agri-logistics infrastructure, have had a significant impact on improving the efficiency and transparency of agricultural marketing and supply chains. Here's an evaluation of the effecRead more
The government’s initiatives, such as the creation of a national agricultural market (e-NAM) and the development of agri-logistics infrastructure, have had a significant impact on improving the efficiency and transparency of agricultural marketing and supply chains. Here’s an evaluation of the effectiveness of these initiatives:
1. National Agricultural Market (e-NAM):
Effectiveness:
- The e-NAM platform has helped to create a more integrated and transparent national market for agricultural commodities.
- It has enabled seamless trading across state boundaries, reduced information asymmetry, and increased price discovery for farmers.
- The platform has been gradually adopted by more states and union territories, with over 1,000 mandis (wholesale markets) currently integrated into the e-NAM network.
Challenges:
- Adoption and utilization of the e-NAM platform has been uneven across different states, with some states being more proactive in its implementation.
- Limited infrastructure and technological capabilities in some mandis have hindered the smooth integration and functioning of the e-NAM platform.
- Lack of awareness and training among farmers and traders has been a barrier to the widespread acceptance and utilization of the e-NAM platform.
2. Agri-Logistics Infrastructure Development:
Effectiveness:
- The government has invested significantly in the development of a robust agri-logistics infrastructure, including the construction of rural and national highways, cold storage facilities, warehouses, and multimodal transportation networks.
- These initiatives have helped to improve the connectivity of agricultural production centers to markets, reduce post-harvest losses, and enhance the overall efficiency of the supply chain.
- The development of modern agri-logistics infrastructure has also facilitated the integration of small and marginal farmers into the mainstream supply chain, providing them with better market access and price realizations.
Challenges:
- The pace of infrastructure development has not been uniform across different regions, leading to disparities in the availability and quality of agri-logistics facilities.
- Maintenance and upkeep of the infrastructure, particularly in remote and rural areas, have been a persistent challenge, affecting its long-term sustainability.
- Coordination between various government agencies and private sector stakeholders in the development and management of agri-logistics infrastructure has been a complex undertaking.
Overall, the government’s initiatives, such as the creation of the e-NAM platform and the development of agri-logistics infrastructure, have shown positive results in improving the efficiency and transparency of agricultural marketing and supply chains. However, there are still areas for further improvement, including addressing the uneven adoption and utilization of the e-NAM platform, enhancing the quality and maintenance of agri-logistics infrastructure, and strengthening the coordination between various stakeholders. Continuous efforts and investments in these areas will be crucial to fully realize the benefits of these initiatives and further strengthen the agricultural marketing and supply chain ecosystem in the country.
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Dolly MeharaLearner
The milk industry’s success can be applied to address the ongoing issues with the sourcing and promotion of pulses and grains in India. Talk about it. (Answer in 250 words)
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In India, cereals and pulses are primarily procured by agriculture marketing societies like FCI and NAFED, whereas milk procurement is done through cooperative societies like AMUL. Procurement by cooperative societies gains both stakeholders' trust as well as public confidence, while procurement undRead more
In India, cereals and pulses are primarily procured by agriculture marketing societies like FCI and NAFED, whereas milk procurement is done through cooperative societies like AMUL. Procurement by cooperative societies gains both stakeholders’ trust as well as public confidence, while procurement undertaken by agriculture marketing societies is often mired in controversy due to various problems.
Issues in the procurement and marketing of cereals and pulses in India:
- Quality grading: The absence of grading or sorting machines in most of the procurement centers leads to the absence of positive incentives for better quality.
- Malpractices in awarding MSP: Due to the absence of grading and encouraging collusion, commodities not qualified for FAQ (fair average quality) are also getting minimum support price (MSP) for which it is otherwise ineligible.
- Episodic procurement: Cereals and pulses procurement happens only once in the Rabi and Kharif seasons, which leaves out farmers who harvest off-season.
- Absence of forward and backward linkages: It impacts the marketing capacity of farmers. They have to sell to local buyers, who don’t guarantee the minimum price.
- Delay in payments: FCI and the National Agricultural Cooperative Marketing Federation of India (NAFED) often face a cash crunch as they are dependent on budget allocations.
Model of the milk sector in dealing with issues related to cereals and pulses procurement and marketing in India:
- Transparency: Quality checking through machinery like a lactometer and a centrifuge machine in the milk sector helps farmers to be immune from fraud related to the grading of stock.
- Ease of doing business: Minimal or no restrictions on quantity to sell. It helps small and marginal farmers to sell their products along with the large farmers who generally have greater bargaining power.
- Round-the-year procurement: Like milk collection undertaken every day, allowing agriculture marketing societies to procure cereals and pulses 365 days a year can help those farmers who want to sell according to the market dynamics.
- Dedicated service: Like milk sector co-operatives, agriculture marketing societies need to devote time, energy, and domain expertise to ensure both forward and backward linkages for a smooth marketing mechanism.
- Regular payments: The milk sector is known for daily or weekly payments, which ensure income security for dairy farmers. Such liquidity flow can be adopted by financially empowering agriculture marketing societies as it will build trust among farmers and encourage them to sell produce to the agriculture marketing societies.
- Creating equity fund: The district milk union retains 25 to 50 paise per liter from the payments to dairy farmers to consolidate funds for building their own infrastructure and for other expenses. Such an independent source of income would make agriculture marketing societies less dependent on governments.
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The newly established Ministry of Cooperation in coordination with the Ministry of Agriculture & Farmers Welfare can adopt the best practices of the milk sector from the states of Gujarat and Maharashtra into the agriculture procurement and marketing societies. Agri Infra Fund as well as the Rural Infrastructure Development Fund (RIDF) of NABARD can be used to strengthen the cereals and pulses procurement and marketing mechanism in India.
Gita SharmaBegginer
Crop losses as a result of post-harvest value chain inefficiencies have a severe negative influence on small and marginal farmers’ means of subsistence. Talk about it in relation to India. What actions has the government done to resolve these issues? ...
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The post-harvest value chain includes harvesting and primary processing; storage and crop protection; processing; and market linkage. As per NITI Ayog, the estimated post-harvest losses in foodgrains hovers around 10%, semi-perishables and commodities like milk, fish, meat, eggs, fruits, and vegetabRead more
The post-harvest value chain includes harvesting and primary processing; storage and crop protection; processing; and market linkage. As per NITI Ayog, the estimated post-harvest losses in foodgrains hovers around 10%, semi-perishables and commodities like milk, fish, meat, eggs, fruits, and vegetables between 10 to 20%, and the horticultural produce at around 16%. Inefficiencies in the post-harvest value chain
- Inadequate harvesting and primary processing: Lack of awareness, limited finance, and weak markets for primary processed produce restrict small and marginal farmers from adopting primary processing such as threshing, sorting, and grading.
- Lack of storage and crop protection: Small and marginal farmers lack access to suitable on-farm and near-farm storage facilities and packaging materials. Whereas, middlemen invest very little in quality storage and packaging leading to post-harvest losses.
- Lack of near-farm processing facilities: Due to a lack of near-farm processing infrastructure, a considerable quantity of farm produce is lost before it reaches distant processing units through a chain of middlemen.
- Lack of market information: Due to lack of market information, crop selection is based on prevailing prices instead of projected market demand, resulting in oversupply.
Impact on the livelihood of small and marginal farmers :- Income loss: Crop losses due to inadequate primary processing lead to income loss for farmers.
- Distress sale: Lack of near-farm storage facilities forces farmers to make distress sale thus affecting their profit margins.
- Lack of value addition: The absence of near-farm processing facilities leads to farmers earning lower incomes, as the benefits of value addition mostly accrue to middlemen and large private sector firms.
- Low bargaining power: Poor linkage with markets, limits selling options to mandis and local middlemen resulting in low bargaining power.
Steps Taken by the Government Few major schemes have been introduced by the government to address the problem of losses in the post-harvest value chain and subsequently provide better remuneration to small and marginal farmers for their produce.
- PM Kisan SAMPADA Yojana: It will result in the creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. In addition to the growth of the food processing sector, it would also help in providing better returns to farmers.
- Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): It aims to support food manufacturing companies to expand their processing capacity and branding abroad to incentivize emergence of strong Indian brands. This in turn will help in ensuring remunerative prices of farm produce and higher income to farmers.
- Private Entrepreneurs Guarantee Scheme: This scheme aims at the construction of storage godowns in Public Private Partnership (PPP) mode. Out of a sanctioned capacity of 152.74 LMT under the PEG scheme, a storage capacity of 144.67 LMT has been completed as of March 2022.
- Viability Gap Funding Scheme: Capital investment in the creation of modern storage capacity has been made eligible for the Viability Gap Funding scheme of the Finance Ministry. Cold chain and post-harvest storage have been recognized as an infrastructure sub-sector.
Increasing activity in agribusiness from the government, private sector, and civil society organizations is translating into a wide range of interventions towards post-harvest loss reduction and improvement in the livelihoods of small and marginal farmers. Further, effective farmer engagement through models like Farmer Producer Organizations, Self Help Groups, etc. is critical for the success of interventions to address post-harvest losses.
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Shekhar jaatBegginer
Talk about how inadequate grain management—rather than a real grain scarcity—has posed a bigger threat to India’s food security. (Answer in 150 words)
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While India produces enough food grains to feed its population, inadequate management of these grains is a greater threat to food security than actual shortages. India now has storage capacity for only 47% of its total food grain production. The Food Corporation of India (FCI), the primary body respRead more
While India produces enough food grains to feed its population, inadequate management of these grains is a greater threat to food security than actual shortages. India now has storage capacity for only 47% of its total food grain production.
The Food Corporation of India (FCI), the primary body responsible for purchase, storage, and distribution, faces a number of challenges:
- Inadequate and improper storage facilities leading to significant wastage, estimated at Rs. 50,000 crore annually
- Leakages and diversion of food grains through the Public Distribution System (PDS)
- Inclusion and exclusion errors in identifying beneficiaries
- Fake and bogus ration cards
To solve this issue, the government has created programs such as the Private Entrepreneurship Guarantee (PEG) to increase storage capacity. However, more work is needed to upgrade storage infrastructure, improve supply chain management, and increase PDS efficiency.
Addressing these management difficulties is critical to ensuring food security for India’s vast population, especially as the government seeks to increase agricultural productivity and adapt to climate change.
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Small and marginal farmers in India face several challenges in accessing organized markets and value chains. Understanding these challenges and the role of farmer producer organizations (FPOs) and other institutional arrangements in integrating these farmers is crucial. Challenges faced by small andRead more
Small and marginal farmers in India face several challenges in accessing organized markets and value chains. Understanding these challenges and the role of farmer producer organizations (FPOs) and other institutional arrangements in integrating these farmers is crucial.
Challenges faced by small and marginal farmers:
1. Limited access to market information:
2. Inadequate bargaining power:
3. High transaction costs:
4. Lack of infrastructure and storage facilities:
5. Restricted access to credit and financial services:
Role of Farmer Producer Organizations (FPOs) and other institutional arrangements:
1. Aggregation and collective bargaining power:
2. Improved access to inputs and services:
3. Enhanced market linkages:
4. Capacity building and training:
5. Access to financial services:
6. Institutional arrangements for market integration:
The challenges faced by small and marginal farmers in accessing organized markets and value chains are multifaceted. However, the emergence of FPOs and other institutional arrangements has shown promising results in addressing these challenges and integrating these farmers into the marketing system. Continued support and investment in strengthening these institutional mechanisms, along with complementary infrastructure development and policy interventions, will be critical to ensure the long-term prosperity and inclusion of small and marginal farmers in the agricultural value chain.
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