Download Policy Interventions in Agricultural Marketing and Value Chain

Doubling of Farmers Income
by 2022
Sub-Group on Agricultural Marketing
and Value Chain
Dr. B. K. Paty
Director (OSPM)
MANAGE, Hyderabad
Presentation order
 Policy Interventions in Agricultural Marketing and Value Chain
 Establishing a Marketing Cell in agriculture and line departments
 Investment in agricultural marketing infrastructure
 Good Marketing Practices in the Markets owned by Municipalities
and Panchayats
 Assaying of agricultural commodities
 Marketing Survey and Research on all India basis
 Proposed outlay for Agricultural Marketing Infrastructure
Policy Interventions in Agricultural
Marketing and Value Chain
 Need for establishing a Marketing Cell in the departments of
Agriculture, Horticulture, Animal Husbandry & Dairy Development and
Fisheries at State level.
Marketing cell will perform the following activities:
 Linking farmers to market (domestic & export market
Undertaking of marketing studies
Marketing extension
Market Intelligence
Production planning – (Market – driven production)
Promotion of Contract farming
Identification of commodities for exports and
Promotion of group marketing with focus on FPCs
Policy Interventions in Agricultural
Marketing and Value Chain
 Investment in agricultural marketing infrastructure
 Public Private Partnership
 Allocation of funds for Integrated Scheme for Agricultural
Marketing (ISAM)
 Investment in storage should align with the investment in
production, development of commodity exchange, etc.
 Removal of
legal and other restrictions for an enabling
environment for private investment.
Policy Interventions in Agricultural
Marketing and Value Chain
 Good Marketing Practices in the Markets owned by Municipalities and
Panchayats (Odisha, West Bengal, Assam and other NE States)
 Market Planning and designing
 Promotion of grading and standardization
 Proper Price discovery mechanism
 Rules-based governance for fair trading
 Participation in market information system
 Functioning as a platform for futures market and spot marketing
 Professionalization of management of markets
Policy Interventions in Agricultural
Marketing and Value Chain
 Assaying of agricultural commodities
 Require network of assaying laboratories
 Require availability of skilled assayer
 Establishment of assaying laboratories under Public Private Partnership in
APMCs
 Establishment of Agricultural Standards Bureau / Cell in the State
Agricultural Marketing Boards / Directorates
 To formulate need based standards suiting to the local produce
 To come up with proposals for preparation of standards on un-notified produce
 To promote use of these standards amongst the potential users – retail chains,
exporters, processors, contract farming companies.
 To promote grading amongst the farmers by ensuring price commensurate
with quality of the produce.
Policy Interventions in Agricultural
Marketing and Value Chain
 Marketing Survey and Research on all India basis
 In the context of a common market for agricultural produce, there is need for
All India reports on the marketing issues of different agricultural produce.
 Till the year 2000, DMI was also involved in bringing out such reports based
on survey and research, covering different aspects of marketing including
estimation of marketable surplus of agricultural commodities at periodical
intervals.
 These studies were very useful for policy formulation on various issues in
agricultural marketing.
 On the recommendations of Expenditure Reforms Committee, the Ministry
has closed down the above scheme in 2000 and no other organization is
carrying out the above studies.
 With the existing manpower, the Ministry may revive the above scheme to be
run by DMI and NIAM ,which is need of the hour.
Policy Interventions in Agricultural Marketing
and Value Chain
Proposed Outlay
Sl.
No.
1.
2.
3.
4.
5.
Description of Scheme
No. of Units
Avg. Unit Cost
Total
(₹ Crores)/ Unit (₹ Crores)
Rate of
Subsidy/
Grant
Development of Marketing Infrastructure
Budgetary
Allocation
Proposed
(₹ Crores)
Terminal Markets
Wholesale Markets
Upgradation of regulated markets
Principal Markets
50
100
200.00
100.00
10000
10000
50%
50%
5000
5000
500
10.00
5000
50%
2500
Sub markets
Livestock markets
Establishment of assaying
laboratories
Setting up of Primary value
addition/collection centers
Market Information Dissemination
Storage infrastructure under ISAM
Cold Chain Development
Assistance for FPOs
Training and Capacity Building,
Skill Development Support to Training
Institutes
Total :
1500
500
585
5.00
0.50
3.00
7500
250
1755
50%
100%
50%
3750
250
878
5000
3.00
15000
40%
6000
0.02
₹ 4000/MT
₹ 7500/MT
0.30
-
50
8000
15000
900
60
100%
40%
40%
100%
-
50
3200
6000
900
60
2500 nodes
20 m MT
20 m MT
3000
-
73515
33588
Thank You