Roadmap for Answer Writing
1. Introduction:
- Briefly define agricultural marketing in India, emphasizing its role in connecting farmers with consumers.
- Mention that agricultural marketing includes all activities such as storage, transportation, grading, and distribution of agricultural products.
2. Significance of Agricultural Marketing in India:
- Reduction in Post-Harvest Losses: Explain how a well-structured marketing system can reduce food wastage and post-harvest losses (5-7% of food production in India) due to better storage and handling methods.
- Increase in Farm Income: Discuss how better marketing helps farmers get better prices for their produce by reducing middlemen involvement, ensuring higher earnings.
- Widening of Markets: Explain how agricultural marketing expands the market reach, enabling farmers to sell produce both within and outside India.
- Growth of Agro-Based Industries: Mention how agricultural marketing supports agro-based industries like cotton, sugar, edible oils, and processed foods by ensuring a steady supply of raw materials.
- Adoption of New Technologies: Highlight how a well-functioning marketing system encourages farmers to adopt new farming technologies by providing them with assured market access and better returns.
3. Government Initiatives to Improve Agricultural Marketing:
- Integrated Scheme for Agricultural Marketing (ISAM): Discuss how ISAM, launched in 2014, aims to provide farmers with better infrastructure, access to competitive markets, and enhanced price realization through various sub-schemes like Agricultural Marketing Infrastructure (AMI) and Agribusiness Development.
- E-NAM (National Agriculture Market): Explain how E-NAM facilitates online trading, enhances transparency, improves price discovery, and extends market access to farmers through a digital platform.
- Farmer Producer Organizations (FPOs): Mention the government’s initiative to promote FPOs for better market linkages, ensuring sustainable and collective marketing opportunities.
- Food Processing Schemes: Discuss initiatives like Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Production Linked Incentive Scheme (PLIS) to promote the growth of the food processing sector and strengthen India’s presence in global food markets.
4. Conclusion:
- Conclude by highlighting that the government’s initiatives have been aimed at addressing market inefficiencies and improving the overall agricultural marketing system, thereby benefiting farmers and the economy as a whole.
Relevant Facts (with sources):
- Reduction in Post-Harvest Losses:
- “5-7% of food production in India is lost due to post-harvest losses” (Source: Government of India, Ministry of Agriculture).
- Increase in Farm Income:
- A better marketing system ensures higher income for farmers by minimizing the role of middlemen and improving price discovery (Source: ISAM and e-NAM initiatives).
- Widening of Markets:
- Agricultural marketing helps expand the market reach for farmers both within India and internationally, boosting agricultural trade and exports (Source: Government Reports on Agricultural Marketing).
- Growth of Agro-Based Industries:
- Agricultural marketing helps in the growth of agro-based industries, including food processing sectors like sugar, cotton, edible oils, and processed foods (Source: National Food Processing Policy).
- E-NAM:
- “E-NAM connects farmers with over 1,000 markets and has provided more transparency in pricing and better access to markets” (Source: Ministry of Agriculture and Farmers Welfare, India).
- Farmer Producer Organizations (FPOs):
- “The government has launched the Central Sector Scheme for the formation and promotion of 10,000 FPOs to enhance farmers’ marketing opportunities” (Source: Government of India, Ministry of Agriculture).
- Food Processing Schemes:
- “Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) aims to develop the food processing sector and increase the export of processed food” (Source: Ministry of Food Processing Industries, India).
These facts, along with relevant government schemes, can be used to effectively answer the question.
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.
Government Initiatives to Improve Agricultural Marketing
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.