DECLARATION

I LIZARANI PRADHAN, P.G. (Industrial Economics.) 6th Year student of Government College (Autonomous), Angul. Hereby declare that this project report titled AGRICULTURAL MARKETING IN INDIA undertaken at Government College (Autonomous), Angul is a record of an original and independent work carried out by me under the guidance of Dr. Lakshman Ku. Choudhury, H.O.D. (Economics)

I further declare that this project has not formed the basis for the award of any other degree /diploma of any other university /institution.

Date: Place: Angul

LIZARANI PRADHAN P.G. (Industrial Economics.) 6th Year Roll No-MAE10-007 EXAM Roll No-10PGE004

AGRICULTURAL MARKETING IN INDIA

ACKNOWLEDGEMENT

I would like to express my sincere thanks to all those instrumental in this project Work. First of all, I would like to thank Dr. Lakshman Ku. Choudhury, H.O.D. (Economics) and Dr. Soumesh Dutt Dash. (Principal) of Government College (Autonomous), Angul for giving me this opportunity to do this project and learn from it.

Date: Place: Angul

LIZARANI PRADHAN
P.G. (Industrial Economics.) 6th Year Roll No-MAE10-007 EXAM Roll No-10PGE004

AGRICULTURAL MARKETING IN INDIA

CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the project work entitled

AGRICULTURAL

MARKETING IN INDIA, worked under Dr. Lakshman Ku. Choudhury, H.O.D. (Economics) is a bonafide work carried out by LIZARANI PRADHAN, a candidate for the P.G. (Industrial Economics.) 6th Year of Government College (Autonomous), Angul under my guidance and direction.

Signature of the Guide. Name Designation Address Date Place : Dr. Lakshman Ku. Choudhury : H.O.D. (Economics) : Government College (Autonomous), Angul. : : ANGUL

AGRICULTURAL MARKETING IN INDIA

CONTENTS/project ordering

AGRICULTURAL MARKETING IN INDIA

CHAPTER-1

AGRICULTURAL MARKETING IN INDIA

INTRODUCTION

In India Agriculture was practiced formerly on a subsistence basis; the villages were self sufficient, people exchanged their goods, and services within the village on a barter basis. With the development of means of transport and storage facilities, agriculture has become commercial in character, the farmer grows those crops that fetch a better price. Marketing of agricultural produce is considered as an integral part of agriculture, since an agriculturist is encouraged to make more investment and to increase production. Thus there is an increasing awareness that it is not enough to produce a crop or animal product; it must be marketed as well.

AGRICULTURAL MARKETING IN INDIA

Agricultural marketing involves in its simplest form the buying and selling of agricultural produce. This definition of agricultural marketing may be accepted in olden days, when the village economy was more or less self-sufficient, when the marketing of agricultural produce presented no difficulty, as the farmer sold his produce directly to the consumer on a cash or barter basis. But, in modem times, marketing of agricultural produce is different from that of olden days. In modem marketing, agricultural produce has to undergo a series of transfers or exchanges from one hand to another before it finally reaches the consumer. The National Commission on Agriculture defined agricultural marketing as a process which starts with a decision to produce a saleable farm commodity and it involves all aspects of market structure of system, both functional and institutional, based on technical and economic considerations and includes pre and post- harvest operations, assembling, grading, storage, transportation and distribution. The Indian council of Agricultural Research defined involvement of three important functions, namely (a) assembling (concentration) (b) preparation for consumption (processing) and (c) distribution.

AGRICULTURAL MARKETING IN INDIA

IMPORTANCE
The farmer has realized the importance of adopting new techniques of production and is making efforts for more income and higher standards of living. As a consequence, the cropping pattern is no longer dictated by what he needs for his own personal consumption but what is responsive to the market in terms of prices received by him. While the trade is very organized the farmers are not Farmer is not conversant with the complexities of the marketing system which is becoming more and more complicated. The cultivator is handicapped by several disabilities as a seller. He sells his produce at an unfavorable place, time and price. The essence of efficient marketing systems are: To enable the primary producers to get the best possible returns. To provide facilities for lifting all produce, the farmers are willing, to sell at an incentive price. To reduce the price difference between the primary producer and ultimate consumer, and To make available all products of farm origin to consumers at reasonable price without impairing on the quality of the produce.

AGRICULTURAL MARKETING IN INDIA

Facilities Needed for Agricultural Marketing

In order to have best advantage in marketing of his agricultural produce the farmer should enjoy certain basic facilities. 1. He should have proper facilities for storing his goods. 2. He should have holding capacity, in the sense, that he should be able to wait for times when he could get better prices for his produce and not dispose of his stocks immediately after the harvest when the prices are very low. 3. He should have adequate and cheap transport facilities which could enable him to take his surplus produce to the mandi rather than dispose it of in the village itself to the village money-lender-cummerchant at low prices. 4. He should have clear information regarding the market conditions as well as about the ruling prices, otherwise may be cheated. There should be organized and regulated markets where the farmer will not be cheated by the -dalals- and -arhatiyas-. 5. The number of intermediaries should be as small as possible, so that the middleman's profits are reduced. This increases! The returns to the farmers.

AGRICULTURAL MARKETING IN INDIA

Objectives of Study
1. To analyze the present state of Agricultural Marketing in India. 2. To study the condition for a satisfactory development of agricultural marketing in India. 3. To assess about the regulated market and its impact. 4. To assess the working of sSmall Farmers Agri-Business Consortium (SFAC). 5. To draw the agricultural price policy in India. 6. To examine the defects of agricultural marketing in India. 7. To suggest the suitable remedial measures for improvement of agricultural marketing.

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METHODOLOGY
This is a theoretical reviewed work. It is based mainly on the literature available in the different books of Indian Economy and fundamental economics. The available books in the library of the college mere meticulously studied carefully synthesized. Number of old and current magazines and newspapers have been consulted to collect information about the work or study and the work is mainly descriptive and yet analytical. The data mainly collected from the secondary sources. The data mainly collected from the secondary sources. The study is mainly confined to the period of last two years.

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LIMITATION
The work is hedged several limitation which could not be avoided. They are noted below. 1. The economic literature on Agricultural Marketing in India is vast. The entire literature has not been reviewed here an account of paucity of time and lack of easy accessibility to the old and current journals. The books that are available in the libraries of the university have been studies sincerely and thoroughly. Some the important articles could not be referred to original. 2. The particular research work is mainly based on the primary and secondary data; so far as the collection of primary data through the field of survey is concerned a researcher had to come across. Some of the difficulties those are very common and unavoidable. Since most of beneficiaries do not maintain proper record of their accounts, they are not in a position to give a correct figure of their profit and loss hence the data collected would only be a approximation of actual fact. 3. Due to the shortage of fund and shortage of time the entire literature on the work could not be touched. 4. However, constant efforts were made by applying all the tactics of better interviewing through repeated appears and persuasion to deliver the truth, but still there are more possibilities of statistical biased.

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AGRICULTURAL MARKETING IN INDIA

CHAPTER-2

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Present State of Agricultural Marketing systems in India

The existing systems of agricultural marketing in India are as briefly described here.

1. Sale to moneylenders and traders

A considerable part of the total produce is sold by the farmers to the village traders and moneylenders. According to an estimate 85% of wheat, 75% of oil seeds in U.P., 90% of jute in West Bengal and 60% of wheat, 70% of oil seeds and 35% of cotton in Punjab are sold by the farmers in the villages themselves. Often the money lenders act as a commission agent of the wholesale trader.

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2. Hats and shanties

Hats are village markets often held once or twice a week, while shanties are also village markets held at longer intervals or on special occasions. The agents of the wholesale merchants, operating in different mandies also visit these markets.

The area covered by a "hat" usually varies from 5 to 10 miles. Most of "hats" are very poorly equipped, are uncovered and lack storage, drainage, and other facilities. It is important to observe that only small and marginal farmers sell their produce in such markets. The big farmers with large surplus go to the larger wholesale markets.

3. Mandies or wholesale markets

One wholesale market often serves a number of villages and is generally located in a city. In such mandies, business is carried on by

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arhatiyas. The farmers sell their produce to these arhatiyas with the help of brokers, who are generally the agents of arhatiyas. Because of the malpractices of these middlemen, problems of transporting the produce from villages to mandies, the small and marginal farmers are hesitant of coming to these mandies.

The arhatiyas of these mandies sell off the produce to the retail merchants. However, paddy, cotton and oilseeds are sold off to the mills for processing. The marketing system for sugarcane is different. The farmers sell their produce directly to the sugar mills.

4. Co-operative marketing
To improve the efficiency of the agricultural marketing and to save farmers from the exploitation and malpractices of middlemen, emphasis

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has been laid on the development of co-operative marketing societies. Such societies are formed by farmers to take advantage of collective bargaining.

A marketing society collects surplus from it members and sell it in the mandi collectively. This improves the bargaining power of the members and they are able to obtain a better price for the produce. In addition to the sale of produce, these societies also serve the members in a number of other ways.

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AGRICULTURAL MARKETING IN INDIA

CHAPTER-3

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CONDITION FOR SATISFACTORY DEVELOPMENT OF AGRICULTURAL MARKETING IN INDIA

In order to have best advantage in marketing of his agricultural produce the farmer should enjoy certain basic facilities.
I.

Storage Facilities:

He should have proper facilities for storing his goods.

II.

Bargaining Capacity:

He should have holding capacity, in the sense, that he should be able to wait for times when he could get better prices for his produce and not dispose of his stocks immediately after the harvest when the prices are very low.
III.

Adequate Transport Facilities:

He should have adequate and cheap transport facilities which could enable him to take his surplus produce to the mandi rather than dispose it of in the village itself to the village money-lender-cummerchant at low prices.
IV.

Market Intelligence and Information:

He should have clear information regarding the market conditions as well as about the ruling prices, otherwise may be cheated. There should be organized and regulated markets where the farmer will not be cheated by the -dalals- and -arhatiyas-.

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V.

Agricultural Marketing Societies:

Agricultural marketing co-operative societies should be formed throughout the country for developing a better marketing structure. VI. Freedom from moneylenders: Easy finance facilities should be developed so as to set free the farmers from the clutches of moneylenders who often force them to go for distress sale of their output. VII. Regulated Markets: A good number of regulated markets should be set up throughout the country for removing the practices of exploitation of farmers by the middlemen. VIII. Eliminating Middlemen: The number of intermediaries should be as small as possible, so that the middleman's profits are reduced. This increases the returns to the farmers.

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CHAPTER-4

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REGULATED MARKETS IN INDIA & ITS IMPACTS

REGULATED MARKETS The regulated markets are established as per the provisions of the Marketing of Agricultural Produce Acts of the State Government. The Commodities, with which the market will deal, are also declared.

History of Regulated Markets India is an agrarian economy. Approximately 70% of people are dependent on agriculture for their basic income. Indian agriculture is dependent on rain and Indian economy is dependent on agriculture. That is main reason why marketing of agriculture products is dependent on demand and supply conditions. Earlier the farmers were worried about the

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sales of their produce and due to low quality they could not fetch a good price. The produce had many defects and the royal commission in 1928 studied this. There werent enough marketing activities carried on by the farmers. So the royal commission suggested commencing with the regulated markets and accordingly various market committees were incorporated. The three basic functions of this committee were 1) To meet the demand of the Increase in population and industrial advancement 2) To increase the quality of agriculture produce 3) To fetch an appropriate price for the farmers

Basic objectives of Regulated Market

To ensure reasonable gain to the farmers by creating environment in markets for fair play of supply and demand forces, To regulate market practices and attain transparency in transactions Aimed at providing proper method of sale, correct weighing, prompt payment and various marketing related services Democratic set up to control and manage markets

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AGRICULTURAL MARKETING IN INDIA

For controlling the activities of the marketing, there is a Market Committee. The Committee consists of representatives of the farmers, commission agents and the Government nominees. Functions of Market Committee The complete management of the market rests with the Market Committee. The Committee issues licenses to the Commission Agents, weigh men, and other functionaries. The rate of Commission to be charged is fixed by the Committee. Evaluation is done properly by the weigh men appointed by the Committee. There is an arbitration Sub-Committee to look into the grievances of the farmers. Advent of regulated markets has helped in mitigating the market handicaps of producers/ sellers at the wholesale assembling level. With the establishment of regulated markets, many fraudulent practices of the brokers are observed in the unregulated markets are overcome and the farmers get reasonable price for their produce.

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AGRICULTURAL MARKETING IN INDIA

CHAPTER-5

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AGRICULTURAL MARKETING IN INDIA

PERFORMANCE OF SMALL-FARMERS AGRI-BUSINESS CONSORTIUM (S.F.A.C.)

In January 1994, the Small Farmers Agri-Business Consortium (SFAC) came into existence as a society registered under the Societies Registration Act, 1860. This society was instituted in pursuance of the Finance Ministers Budget speech announcing setting up of a small farmers Agri-business Consortium, an autonomous independent entity funded by the RBI, NABARD and IDBI to initiate projects on the principles of economic efficiency, environmental soundness and social equity. This consortium has been set up to generate agri-business activities with the theme objective of securing expanding employment opportunities and raising income levels in the rural areas through effective support to various type of agri-business. In the mean time, detailed project studies were arranged to be commissioned (with UNDP assistance, under the auspices of M.S. Swaminathan Research Foundation) for 12 identifid districts viz., Barpeta (Assam) Mehebubnagar (Andhra Pradesh), Valsad (Gujurat), Dharwar (Karnataka), Ernakulam (Kerala), Jabalpur (Madhya Pradesh), Ganjam (Odisha), Pondicherry, Bikaner (Rajasthan), Dhrampuri (Tamil Nadu), Pithoragarh (Uttar Pradesh) Midnapore (West Bengal). Pune was also taken up as the 13th district under the project. Studies have been completed and the project reports are also prepared. Horticulture, wasteland development, sericulture and aquaculture are some of the areas identified for development of agri-business activities. SFAC will be catalytic, promotional and financial agency. Emphasis will be
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AGRICULTURAL MARKETING IN INDIA

laid on establishing linkages between production, processing and marketing so that farmers can derive the benefits of value addition. The project report of all of these 13 identified districts are ready, but the funding of the projects is yet to be arranged. The approach of SFAC is that the projects should not be subsidy driven but self sustainable.

Objectives

To catalyze agro-industrial growth in the country based on the principles of:

o o o

Ecological sustainability Economic efficiency Social equity

To undertake or assist in undertaking programs for employment generation, growth and diversification of agriculture & agro-based industries to increase food production and export of agriculture products, in both primary and processed forms. To identify and promote post-harvest processing/manufactures units in the public, private and cooperative sector. To promote organization of marketing chain both for domestic and export marketing. To influence Government policies for agriculture, thereby increasing the flow of resources and augmenting the rate of capital formation in agriculture sector. To pave the way for establishment of integrated producers organizations with forward and backward linkages. To prepare, print and publish papers, periodicals, monographs in furtherance of the objectives of the society.

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Work Scope
SFAC in addition to the endeavors complying with its core objectives also takes up implementation of the schemes and programs of various Government of India (GOI) Ministries and Departments and other Financial Institutions and Banks on a service charge basis. The SFAC society is currently implementing the following schemes and programs viz.

The Schematic Pattern of Assistance from SFAC, out of GOI grants-inaid for promotion of value addition in the hands of farmers, through setting up part-processing, Semi-processing and full-processing facilities, through the setting up of Agri-Business ventures all over the country mostly in collaboration with the private sector. And active corporation of commercial banks. SFAC also provides to agri-business projects involving value addition in the hands of the farmers. Most of these projects involve agripartner and post harvest management, marketing etc. Horticulture Mission For North East And Himalayan

States (HMNEH) on Behalf of the Department of Agriculture & Cooperation, which seeks to create a viable alternative livelihood option for the people of NER, taking into account the entire gamut of horticulture development, with all backward and forward linkages in a holistic manner.

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CHAPTER-6

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AGRICULTURAL PRICING POLICY

Agricultural Price Policy:This policy is a tool to influence the price of agricultural product. It is on incentive to the producer to produce a particular product according the desired quantity. Importance of Price Policy :The price of agricultural product fluctuates more quickly as compared to the industrial product. So these changes in prices affect the income, standard of living of the farmer and rural population. Even these also affect the trade of other goods. Example:In India and Pakistan if the prices of cotton or wheat fall any year, it also affects the trade and other business badly. The farmers aggregate demand falls, which affects the whole economy. The govt. in this situation interferes so that prices may not fluctuate beyond a particular limit. Because if the price of any particular product falls any year, then next year farmers never cultivate that product. It creates shortage next year in the market. So agricultural price policy has greater importance in the developing countries of the world.

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AGRICULTURAL MARKETING IN INDIA

Objectives of Price Policy:The objectives of agricultural price policy may differ from country to country. These depend upon the stages of development in a country. Anyhow, following are the important objects of agricultural price policy: To meet the domestic consumption requirement govt. promotes balanced increase in production. To provide price stability in the agricultural product. To meet the national targets by the planners. To provide the wheat to consumer to reasonable price. To provide raw material to the industries at reasonable price. To increase the production and exports of agricultural product. Methods of Adopting Agricultural Price Policy:To regulate the prices of product govt. taken the following measures: 1. Administrative Price:Govt. tries to maintain favorable prices acceptable to both farmer and producer. But generally both the parties remain unhappy. If govt. increases the price of agricultural product, then consumer suffers. As govt. of increased the price of wheat to encourage the farmer, public criticized the govt. badly. On other side if goods are prices low then farmers suffers and production is affected adversely. Govt. tries to protect the interest of the both parties. The administrative prices consist upon the following the prices:

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i. Support Prices: - Every year govt. fixes the support prices of important crops. The prices are announced before the sowing time, to encourage the farmers. ii. Issue Prices: - To protect the consumer interest govt. provides specified quantity of goods to the consumer at the prices which are lower than market prices. iii. Procurement Prices: - Govt. every year maintains a particular stock of a product. This stock is used at time to time of emergency and shortage for the purchase of the desired agricultural product govt. announces procurement prices. These prices are generally reasonable. 2. Changing in Demand and Supply:Sometimes govt. producers some portion of the product it reduces the supply in the open market then price level rises. Govt. allows the sellers to sell their product at market price. Sometime govt. exports the surplus product. It reduces the supply, price level rises. The farmer sell product at reasonable price. 3. Improvement in Facilities:The govt. can influence the price of the product by providing the facility of where house and roads and markets. Due to these facilities farmer can sell his product at reasonable price. Most of the different countries have also revised its agricultural price policy keeping in view the problems of the farmers and consumers. The price support policy is implemented through various departments. Food, Cotton and Rice export corporation. Agricultural marketing and storage limited, and Ghee Corporation are playing very effective role in this regard. Wheat, rice, cotton, sugarcane, sunflower etc. Prices are set through the price support policy.

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AGRICULTURAL MARKETING IN INDIA

CHAPTER-7

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DEFECTS OF AGRICULTURAL MARKETING

Indian system of agricultural marketing suffers from a number of defects. As a consequence, the Indian farmer is deprived 'of a fair price for his produce. The main defects of the agricultural marketing system are discussed here A. Improper warehouses There is an absence of proper ware housing facilities in the villages. Therefore, the farmer is compelled to store his products in pits, mudvessels, "Kutcha" storehouses, etc. These unscientific methods of storing lead to considerable wastage. Approximately 1.5% of the produce gets rotten and becomes unfit for human consumption. Due to this reason supply in the village market increases substantially and the farmers are not able to get a fair price for their produce. The setting up of Central Warehousing Corporation and State Warehousing Corporation has improved the situation to some extent B. Lack of grading and standardization Different varieties of agricultural produce are not graded properly. The practice usually prevalent is the one known as "dara" sales wherein heap of all qualities of produce are sold in one common lot Thus the farmer producing better qualities is not assured of a better price. Hence there is no incentive to use better seeds and produce better varieties.

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C. Inadequate transport facilities Transport facilities are highly inadequate in India. Only a small number of villages are joined by railways and pucca roads to mandies. Produce has to be carried on slow moving transport vehicles like bullock carts. Obviously such means of transport cannot be used to carry produce to far-off places and the farmer has to dump his produce in nearby markets even if the price obtained in these markets is considerably low. This is even more true with perishable commodities. D. Presence of a large number of middlemen The chain of middlemen in the agricultural marketing is so large that the share of farmers is reduced substantially. For instance, a study of D.D. Sidhan revealed, that farmers obtain only about 53% of the price of rice, 31% being the share of middle men (the remaining 16% being the marketing cost). In the case of vegetables and fruits the share was even less, 39% in the former case and 34% in the latter. The share of middlemen in the case of vegetables was 29.5% and in the case of fruits was 46.5%. Some of the intermediaries in the agricultural marketing system are -village traders, Kutcha arhatiyas, pucca arhatiyas, brokers, wholesalers, retailers, money lenders, etc. E. Malpractices in unregulated markets Even now the number of unregulated markets in the country is substantially large. Arhatiyas and brokers, taking advantage of the ignorance, and illiteracy of the farmers, use unfair means to cheat them. The farmers are required to pay arhat (pledging charge) to the arhatiyas,

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"tulaii" (weight charge) for weighing the produce, "palledari" to unload the bullock-carts and for doing other miscellaneous types of allied works, "garda" for impurities in the produce, and a number of other undefined and unspecified charges. Another malpractice in the mandies relates to the use of wrong weights and measures in the regulated markets. Wrong weights continue to be used in some unregulated markets with the object of cheating the farmers. F. Inadequate market information It is often not possible for the farmers to obtain information on exact market prices in different markets. So, they accept, whatever price the traders offer to them. With a view to tackle this problem the government is using the radio and television media to broadcast market prices regularly. The news papers also keep the farmers posted with the latest changes in prices. However the price quotations are sometimes not reliable and sometimes have a great time-lag. The trader generally offers less than the price quoted by the government news media. G. Inadequate credit facilities Indian farmer, being poor, tries to sell off the produce immediately after the crop is harvested though prices at that time are very low. The safeguard of the farmer from such "forced sales" is to provide him credit so that he can wait for better times and better prices. Since such credit facilities are not available, the farmers are forced to take loans from money lenders, while agreeing to pledge their produce to them at less than market prices. The co-operative marketing societies have generally catered to the

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needs of the large farmers and the small farmers are left at the mercy of the money lenders. Thus it is not possible to view the present agricultural marketing in India in isolation of (and separated from) the land relations. The regulation of markets broadcasting of prices by All India Radio, improvements in transport system, etc., have undoubtedly benefited the capitalist farmers, and they are now in a better position to obtain favorable prices for their "market produce" but the above mentioned changes have not benefited the small and marginal farmers to any great extent.

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AGRICULTURAL MARKETING IN INDIA

CHAPTER-8

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AGRICULTURAL MARKETING IN INDIA

The following are some of the measures to be followed for improving the existing system of agricultural marketing in the country: 1. Establishment of regulated markets. 2. Establishment of Co-operative marketing societies. 3. Extension and construction of additional storage and warehousing facilities for agricultural produce of the farmers. 4. Expansion of market yards and other allied facilities for the new and existing market. 5. Provision is to be made for extending adequate amount of credit facilities to the farmers. 6. Timely supply of marketing information to the farmers. 7. Improvement and extension of road and transport facilities for connecting the villages with mandis. 8. Provision for standardization of grading of the produce for ensuring good quality to the consumers and better price for the farmers. 9. Formulating suitable agricultural price policy by the Govt. for making a provision for remunerative prices of agricultural produce of the country. Steps Taken By the Govt.: Government of India has adopted a number of measures to improve agricultural marketing, the important ones being - establishment of regulated markets, construction of warehouses, provision for grading, and standardization of produce, standardization of weight and measures, daily broadcasting of market prices of agricultural crops on All India Radio, improvement of transport facilities, etc. 1) Marketing surveys In the first place the government has undertaken marketing surveys of various goods and has published these surveys. These surveys have brought out the various problems connected with the marketing of goods and have made suggestions for their removal.

REMEDIAL MEASURES FOR IMPROVING AGRICULTURAL MARKETING

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2) Grading and standardization The government has done much to grade and standardize many agricultural goods. Under the Agricultural Produce (Grading and Marketing) Act the Government has set up grading stations for commodities like ghee, flour, eggs, etc. The graded goods are stamped with the seal of the Agricultural Marketing Department -AGMARK The Agmark" goods have a wider market and command better prices. A Central Quality Control Laboratory has been set up at Nagpur and eight other regional laboratories in different parts of the country with the purpose of testing the quality and quality of agricultural products applying for the Government's "Agmark" have been created The Government is further streamlining quality control enforcement and inspection and improvement in grading. 3) Organization of regulated markets A regulated market has been organized with a view to protect the farmers from the malpractices of sellers and brokers. The management of such markets is done by a market committee which has nominees of the State Government, local bodies, arhatiyas, brokers and farmers. Thus all interests are represented on the committee. These committees are appointed by the Government for a specified period of time. Important functions performed by the committees can be summarized as follows. i. Fixation of charges for weighing, brokerages etc., ii. Prevention of unauthorized deductions, underhand dealings, and wrong practices by the arhatiyas, iii. Enforcing the use of standardized weights, iv. Providing up to date and reliable market information to the farmers, and v. Settling of disputes among the parties arising out of market operations.
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The system of regulated markets has been found to be very useful in removing fraudulent practices followed by brokers and commission agents and in standardizing market practices. The committee is responsible for the licensing of brokers and weightmen. It is nested with powers to punish anyone who is found guilty of dishonest and fraudulent practices. 1t is the policy of the government to convert all markets in the country into the regulated type. Regulated markets aim at the development of the marketing structure to have the following. 1) Ensure remunerative price to the producer of agricultural commodities, 2) Reduce non functional margins of the traders and commission agents, and 3) Narrow down the price spread between the producer and the consumer. To achieve these objectives, the government would go in for comprehensive and rapid expansion of regulated marketing systems. The success achieved in states like Punjab and Haryana, where regulated markets have been established in major producing areas with linked up satellite markets in the rural growth centres would be aimed at, in other areas where intensive production is taken up. The regulating marketing system has also proved a good source of generating income for the marketing boards and for use in rural infrastructure. The regulated market complex will also include facilities for grading and for monitoring of prices. The development of regulated markets is proposed especially in areas where commercial crops like cotton, jute, tobacco and important nontraditional crops are produced and sold in weekly markets and hats. Cooperative marketing and distribution and banking will also be linked with the regulated markets. These markets will cover all the major crops. Separate market yards are proposed for livestock, fish, fruits and vegetables.

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There are now over than 6,050 regulated markets with the establishment of these regulated markets. The malpractices in mandies have disappeared and the market charges have been rationalized. As much as 70% of agricultural produce is now sold in regulated markets. In this connection, the steps taken to standardize the weight and measures in the country should be mentioned. The government has successfully replaced the different systems of weights and measures prevalent in the country with the metric system. 4) Provision of warehousing facilities To prevent distress sale by the farmers, particularly the small and marginal farmers, due to prevailing low prices, rural go downs have been set up. The government has done much to provide warehousing in towns and villages. The Central Warehousing Corporation was set up in 1957 with the purpose of constructing and running go downs and warehouses for the storage of agricultural produce. The states has set-up the State Warehousing Corporations with the same purpose. At present the Food Corporation is constructing its own network of go downs in different parts of the country. The total storage capacity in the country was 27 million tonnes at the end of the sixth plan.

5) Dissemination of market information The government has peen giving attention to the broadcasting of market information to the farmers. Since most villages have radio sets, these broadcasts are actually heard by farmers. The newspapers also publish agricultural prices either daily or weekly accompanied by a short review of trends.

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6) Directorate of marketing and inspection The directorate was set up by the Government of India to co-ordinate the agricultural marketing of various agencies and to advise the Central and State Governments on the problems of agricultural marketing. Activities of this directorate include the following. a. Promotion of grading and standardization of agricultural and allied commodities; b. Statutory regulation of markets and market practices; c. Training of personnel; d. Market extension; e. Market research, survey and planning and f. Administration of Old Storage Order, 1980 and Meat Food Products Order, 1973. The directorate has so far formulated grade specification for 142 agricultural commodities. It enforces compulsory quality control before export on as many as 41 agricultural commodities. It is extending financial assistance to selected regulated markets for providing grading facilities for important commodities like tobacco, jute, cotton, groundnut and cashew nut at the producers level. An allied task is the one related to marketing research and survey. This should aim at determination of best handling methods of produce to minimize losses, damage and costs, improved methods of wholesaling and retailing and planning for new marketing facilities at appropriate centers. With this aim in view, the Directorate is currently implementing two schemes. -Market research and planning.
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-Market planning and design. Under the former scheme, the Directorate has been carrying out country-wide marketing surveys on live-stock and important agricultural and horticultural commodities to identify and study the problems of agricultural marketing. Under the latter scheme, the Directorate has set up a Marketing Planning and Design Centre at Faridabad and a training centre and Workshop at Nagpur to study the packaging grading and marketing of selected fruits and vegetable and also advise the authorities on the designing of fruits and vegetable markets. 7. Government purchases and fixation of support price In addition to the measures mentioned above, the Government also announces minimum support price for various agricultural commodities from time to time in a bid to ensure fair returns to the farmers. These prices are fixed in accordance with the recommendations of the Agricultural, Price Commission. If the prices start falling below the declared level (say, as a result of glut in the market), the Government agencies like the Food Corporation of India intervene in the market to make direct purchase from the farmers at the support prices. These purchases are sold off by the Government at reasonable price through the public distribution system. This table shows that the percent increase of the agricultural sector from 2000-11

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CHAPTER-9

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SUMMERY & CONCLUSIONS

A good marketing system is one, where the farmer is assured of a fair price for his produce and this can happen only when the following conditions are obtained. 1. The number of intermediaries between the farmer and the consumer should be small; 2. The farmer has proper storing facilities so that he is not compelled to indulge in distress sales; 3. Efficient transport facilities are available, 4. The malpractices of middlemen are regulated, 5. Farmers are freed from the clutches of village moneylenders and 6. Regular market information is provided to the farmer. The two institutions: co-operative marketing societies and

regulated markets, together can assure, the presence of all these conditions. Accordingly if cooperative marketing societies are developed on the lines indicated above (along with regulated markets), the Indian agricultural marketing system can be considerably improved.

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REFERENCE
REFERENCE SOURCE: 1. BOOK: The Indian Economy Environment and Pricing by- ISHWAR C. DHINGRA Indian Economy Problems of Development and Planning by- A.N. AGRAWAL. Indian Economy by- S.K. MISHRA & V.K. PURI. Indian Economy Development and Elementary Statistics by- Dr. R.K. PANY & Dr. R.C. MISHRA. Indian Economy by- Dr. P.K. DHAR 2. INTERNET: Search Engine- www.google.com Agricultural Sitewww.world-agriculture.com, www.agmarknet.nic.in www.agritech.tnau.ac.in , www.krishiworld.com

3. OWN CONTRIBUTION: Designing. Editing.

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