If government develops fair average quality norms for selling agri-produce, system can create grainless and commodityless ‘mandies’ (vegetable markets)
Introduction:
Presently, the Indian agriculture sector is going through its lowest phase in an age when the Indian economy is growing very fast. Two laws which have proven detrimental to Indian farmers in the last few years are the Law of Inheritance and the Agriculture Land Ceiling Act. Due to these two laws, land holding has become very small because as fathers die, the land gets divided among legal heirs; as a result, the land is getting divided every day with every new death, leading to 78 percent of land owners being small and marginal farmers. When a farmer has a very small piece of land, his agri-input requirement is very small. Hence, he purchases from the last person in the supply chain. If there are three people in the supply chain, he will pay three people’s profit and get his input, which proves not only costlier but is also of dubious quality and availability. Furthermore, when he grows any crop, his production yield is very low. He sells his harvest to the last person in the supply chain. So, if there are five people in the supply chain, then they will deduct their profit and give the resultant price to the farmer. This point marks the beginning of the vicious cycle of profit and loss in the Indian agriculture sector.
Now, the main buyers in market are wholesalers, processors and exporters, and they have three basic conditions:
First is Quantity - they need huge quantity;
Second is Quality – they need same and consistent quality; and
Third is Competitive price.
These three basic conditions of market cannot be fulfilled by small and marginal farmers and there is this huge supply chain full of middle men. Whenever the government tries to intervene in agri-marketing through the Minimum Support Price scheme or any other scheme, only these middle men benefit. The small or marginal farmers are never able to share in this advantage.
This story is from the July - August 2018 edition of Business Of Agriculture.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July - August 2018 edition of Business Of Agriculture.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
SafalFasal unlocks financial access for 75,000 Indian farmers, aims to repair Coronavirus-hit supply chain
Global digital payment solutions leader BPC and its SME Marketplace, SafalFasal, have supported more than 75,000Covid-hit farmers across India by offering technological and financial solutions to help the farm sector keep food and supply chain rolling, during and after the lockdown phase. The company has successfully extended formal financing to the farming industry by creating an easy credit line via NBFCs.
INDUSTRY 4.0 IN AGRICULTURE
At present, the world population is around 7.8 billion and expected to grow up to 8.5 billion in 2030, 9.7 billion in 2050 and 10.9 billion by 2100.
AN OVERVIEW OF THE OUTCOMES OF THE G-20 AGRICULTURE MINISTERS' MEETING
The international system works in a collective mechanism on certain issues wherein countries form groups to tackle an emergency or crisis.
“Zero Budget Farming”
- A sustainable farming approach?
Cassava Starch: Agro Based Functional Foods Sector Holds Ample Opportunities
Cassava starch is obtained from the cassava root, which contains a high amount of nutrients such as carbohydrates, fibers, vitamins, and others.
Sustainably Powering Rural India's Agricultural Sector
Growing up in the 1990s in Kolkata, one thing that was common in the summer was “load-shedding”.
ON ROAD TO NEW INDIA
Agriculture Needs a Paradigm Shift Empowering Marginal Farmers Living in Agriculturally Challenged Areas
Women Farmers: Challenges And Opportunities
According to the United Nations, women comprise approximately 43 percent of the world’s agricultural labour force, but these involvements only give them access to the labouring part not to the decision-making areas like irrigation, land management, and other agricultural cooperatives.
Drones Are Opening Up A Huge Opportunity In Agriculture Sector
According to the United Nation’s report world population is projected to reach 10 billion by 2050.
Partners In Precision Agriculture
The value proposition for a large farmer having more than 25 acres or 50 acres is completely different.