Agriculture Marketing in India

Agricultural Marketing continues to be the mainstay of life for majority of the Indian population. It contributes around 25% of the GDP and employs 65% of the workforce in the country. The Government of India under the ministry of agriculture has also set up specific commodity Boards and export promotion council for monitoring and boosting the production,consumption,marketing and export of various agricultural commodities. Some of these organisations /boards are Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Tea Board, Coffee Board, Spice Board, National Horticulture Board (NHB), National Agricultural Marketing Federation (NAFED), Agricultural Products Export Development Authority (APEDA), etc.
Most agricultural commodity markets generally operates under the normal forces of demand and supply. However, with a view to protect farmer’s interest and to encourage increased production, the government also fixes minimum support price (MSP) for some crops like Paddy, Wheat, Jute etc. as public policy instruments.

The government also promotes organised marketing of agricultural commodities in the country through a network of regulated markets. There are 7161 Wholesale Regulated Markets in the country as on 31.3.2001. Besides, there are also 7293 Wholesale Markets and 27,294 Rural Periodic.

For more information visit Directorate of Marketing and Inspection

The advent of regulated markets Regulated markets have helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit. It was envisaged that physical markets with facilities and services would attract the farmers and the buyers creating competitive trade environment thereby offering best of the prices to the producers/sellers. Presently, about 23 Agricultural Produce Market Acts are in force in various States and UT in the country for enforcing and facilitating organised agricultural marketing functions. Besides in most States, there are a number of rural primary markets (Hats) which serves, on an average, an area within a radius of 8-16 KM. The secondary assembling market serves, on an average, about 500 Sq.Km.

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