Dr. Banarsi Lal and Dr. Pawan Sharma
Whenever we go to a shopkeeper to purchase a pen, he doesn’t get ready to sell the pen lower than the price fixed on it. But when a farmer goes to sell his farm produce he is compelled to sell it at lower market price. He works very hard for his farm produce but he doesn’t get full price for his farm commodities. This is a matter of grave concern. Recently the situation is bad in Malwa-Nimad region in Madhya Pradesh where six farmers were reportedly killed in police firing. Farmers have been protesting since June 1 demanding minimum support price for their farm produce. 2016 saw a plentiful of food grain production but six farmers in police in Madhya Pradesh compel us to realize the important issues in agriculture for a long time. Basically India is an agricultural country and over half of its population depends on this sector. Farming in India accounts for 14 per cent of GDP which is much lower than 47 per cent of GDP just after India’s independence. Increase in agricultural production is not leading to fetch more prices for the farmers. Many farm commodities are being traded below support prices set by the government. Farm loan waivers amounting to over Rs.36, 000 corers by the Yogi Adityanath government in Uttar Pradesh created similar demands in other states like Maharashtra. The protest which was started in Madhya Pradesh and Maharashtra is spreading to the other states also. Farmers’ suicides cases are also rampant in the country.
Agriculture is the mainstay of the Indian economy since time immemorial. Quality food is the growing demand of the increasing population. Adequate production and its proper marketing has globally become a high priority. The Indian agricultural system has made tremendous progress in the recent past. The increased agricultural production has made new challenges to the Indian agricultural marketing system. An efficient agricultural marketing system is the need of the era. Marketing is as critical to better performance in agriculture as farming. Marketing has been described as the most important multiplier of agricultural development. Agricultural marketing plays crucial role in accelerating the pace of economic development of any nation. Its dynamic functions are of primary importance in both agricultural and economic development. Market reforms need to be an integral part of any policy for agricultural development. The National Commission on Agriculture emphasized that produce must be satisfactorily marketed. Marketing involves a series of activities in moving the goods from the point of production to the point of consumption. It is a complex phenomenon.
The movement of goods from producers to the consumers at the lowest possible cost, consistent with the provision of services desired by the consumers can be termed as efficient marketing. Agricultural marketing is the study of all the activities in the procurement of farm inputs by the farmers and the movement of agricultural products from the farms to the consumers. Agricultural marketing is a link between farm and non-farm sectors. All the persons associated in agricultural marketing are interested in having an efficient marketing system. An efficient marketing system for farm products ensures an increase in the farm production gets transformed into an increase in the level of income thereby increasing the additional income. An efficient marketing system is an effective agent of change and an important means of raising the income levels of farmers and satisfaction of the consumers. Consumers get the satisfaction when they get the goods at the least possible cost. An ideal marketing system aims at giving remunerative prices of produce to consumers, uninterrupted supply of goods to the consumers at reasonable prices. Efficient agricultural marketing is important in economic development of India.
There is dire need to maintain the pace of increased production through technological developments and assurance of remunerative prices to the farmers for their products to sustain the growth of non-agricultural sectors. An efficient marketing system leads to the optimization of resources use and output management. Marketing system can effectively distribute the available stocks of modern inputs and thereby sustain a faster growth rate in agricultural production. An important landmark for improvement of agricultural marketing system in the Indian economy dates back to the recommendations of the Royal Commission on Agriculture, 1928 which pertained to regulation of marketing practices and establishment of regulated markets. Though agricultural marketing is estate subject, the Government of India has been playing a far-reaching interventionist role in terms of laying down general policy framework, framing of quality standards and providing technical and financial support to the states for creating infrastructure and administrative set-up. The Government interventions in agricultural marketing in India have taken of the following forms:
(a)Regulation of buying and selling practices by establishing regulated markets. (b)Administration of prices at different levels of marketing. (c)Promotion and creation of infrastructure and other facilities.(d)Direct entry of government or cooperative societies as buyers and sellers in the market with a view to influencing the demand or supply of the products.(e)Regulation of imports and exports of agricultural commodities with a view to influence the supply and demand. All these measures introduced by the government improved the marketing system and helped the farmers in getting better prices. Agricultural marketing scenario has undergone a sea change in India over the last four decades especially after the onset of technological revolution in the country. There has been a rapid increase in the marketable and marketed surplus of different agricultural commodities. This has been on account of increase in agricultural production and also due to the increase in the marketed surplus-output ratio of commodities.
The marketing organizations should assist the farmers in increasing the production of those goods which are in demand. For this the various marketing functions related to marketing of various products should be performed efficiently. Marketing organizations especially the regulated markets can help the farmers by taking new initiatives and extending the provision of credit facilities to the farmers. This will develop a loyalty among the producers-sellers towards the regulated markets. This facility will increase the freedom of producer-sellers to dispose of their produce profitably in the market. There is a need to develop channels for supply of agricultural inputs to the farmers in the market. This can be done by allotting shops to the input suppliers in the market and developing adequate channels for movement of agricultural inputs along with arranging easy availability of seeds varieties demanded by the farmers. There should be transportation provision to carry the produce from production places to the consumption places.
This can be done by operating transport system to help small farmers on cooperative basis. Market extension service should be provided to the farmers to guide them about the enterprises and varieties to grow in the area based on market demand. Strengthening of market intelligence activities in the Mandi to advise the farmers as and where to sell the produce. Study the profitability of enterprises, marketing costs, margins and price spread so as to guide the farmers. Strengthening of storage system in the market can be done by encouraging the private entrepreneurs to construct more number of godowns in the rural areas. Involving Non Government Organisations (NGOs) and Self Help Groups (SHGs) actively in the marketing activities would help to make the marketing system friendlier. Patent system for varied plant estates produced in the country should be introduced to safeguard the farmers of the country.
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