Marketing of Agricultural Produce in India: Problems and Prospects

Abstract

The new trend is market-driven production rather than production-propelled marketing. With the implementation of a second green revolution, improving farm family living standards, eliminating hunger in India and eradicating poverty in India in the shortest possible amount of time, agricultural marketing and exports of agricultural commodities are becoming more important than ever before. About two to three decades ago, marketing systems faced different challenges. Today, marketing systems face quite different challenges. The Indian agriculture, too, remains the cornerstone of its economy in the twenty-first century. Marketing farm products has undergone many phases, from bartering to online marketing, as well as changing demographics of the agricultural sector and its output. Due to diversity in regional, technological, attitude, economic and political parameters, comprehensive marketing strategies are becoming more challenging to implement. There is a growing demand for quality food due to an increasing population. It is becoming increasingly important to ensure adequate production and marketing globally. The increased agricultural production has thrown new challenges to the Indian agricultural marketing system. Marketing systems for agriculture are in dire need of improvement. The Indian agricultural sector faces several challenges, including sustaining investment, climate change, price volatility, underdeveloped markets, profitability of agriculture relative to other sectors, increasing smallholder productivity, providing livelihood for a large number of people and containing costs. In order to sustain the growth of non-agricultural sectors, a pace of increasing production must be maintained through technological developments and remunerative prices paid to farmers for their goods. The efficient use of resources and management of outputs is the result of an effective marketing system. Agricultural production can be sustained at a higher rate by using a marketing system that distributes the available stocks of modern inputs effectively. By establishing free-trade areas free of intermediaries and government taxes outside of the framework of Agricultural Produce Market Committees (APMCs) and removing restrictions regarding private holdings of agricultural produce, the recently passed Farm Laws 2020 try to eradicate government interference in agricultural trade. APMC reform attempts have been on the agenda for more than two decades under successive administrations. As far as mandies are concerned, most farmer organizations agree that there is excessive political interference and a need for reform. A variety of reforms at the state and national levels have been implemented and commended by farmers. In this particular case, however, the issue is not solely about the bills but also about the process by which the bills are introduced. This chapter discusses various issues pertaining to the Indian agricultural marketing, its reformation under the BJP-led government and its future prospects.