Model Answer

Significance of Agricultural Marketing in India

Agricultural marketing plays a crucial role in the Indian economy by ensuring the smooth movement of agricultural products from farms to consumers. It encompasses various activities such as assembling, grading, storage, transportation, and distribution, impacting both the financial and institutional aspects of agriculture.

1. Reduction in Post-Harvest Losses: An efficient marketing system minimizes post-harvest losses, which currently account for 5-7% of India’s food production. By improving storage, transportation, and processing, agricultural marketing can help increase the marketable surplus and reduce wastage.
2. Increase in Farm Income: A well-structured marketing system can improve price discovery, reduce the influence of middlemen, and ensure farmers receive better prices for their produce. This is critical in India, where more than half of the population is dependent on agriculture.
3. Widening of Markets: Efficient agricultural marketing expands the market reach for farmers, both domestically and internationally, enabling them to access new markets and boost sales.
4. Growth of Agro-based Industries: A strong marketing system supports the growth of food processing industries, which depend on agriculture for raw materials. However, only about 10% of India’s food production is processed, highlighting the need for growth in this sector.
5. Adoption of New Technologies: With assured market access and better prices, farmers are more likely to invest in modern agricultural technologies, thus improving overall productivity.

Government Initiatives to Improve Agricultural Marketing

1. Integrated Scheme for Agricultural Marketing (ISAM): Launched in 2014, this initiative focuses on providing farmers with access to competitive markets, infrastructure, and better price realization. It includes schemes such as Agricultural Marketing Infrastructure (AMI) and Agribusiness Development.
2. E-NAM (National Agriculture Market): E-NAM aims to enhance transparency, improve price discovery, and extend farmers’ market reach through a digital platform. It facilitates farmers’ access to a larger number of markets.
3. Farmer Producer Organizations (FPOs): The government promotes the formation of FPOs to provide better market linkages and ensure sustainable marketing opportunities for farmers.
4. Food Processing Schemes: Initiatives like Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme (PLIS) support the growth of the food processing sector and the export of Indian food products.

Conclusion

The government’s initiatives are transforming the agricultural marketing landscape in India by improving market access, price discovery, and income for farmers. These efforts are expected to create a more efficient and transparent agricultural marketing system, benefiting both producers and consumers.