Agricultural Marketing Reforms and Initiatives in India part 19

 Okay, here are the summarized notes in English based on the provided Telugu audio transcript:

Subject: Agricultural Marketing Reforms and Initiatives in India

1. Introduction & Problem Statement

• While agricultural production in India has increased (due to better seeds, farmer efforts), farmers often do not receive fair prices for their produce.

• A key challenge is developing an efficient agricultural marketing system.

2. The Role and Limitations of the APMC Act

• APMC (Agriculture Produce Market Committees) Act: Historically mandated that farmers sell produce only to licensed traders within designated APMC market yards. Traders were also restricted to buying within these yards.

• Consequences:

  • Restricted farmers' choices and access to potentially better prices outside the designated yards.

  • Led to potential cartelization and price suppression by licensed traders within the yards. Often, farmers only received prices near the Minimum Support Price (MSP).

  • Transporting produce outside the yards by farmers was deemed illegal; only licensed traders could transport produce across districts/states (after paying Levy Duty & Market Cess). Bypassing this system was considered "black marketing" by the government.

3. Government Initiatives & Reforms

• Attempted Farm Laws (2020):

  • The government introduced laws (like The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act) to allow farmers to sell outside APMC yards without restrictions (licenses, cess, levy).

  • These were withdrawn due to widespread protests, citing reasons like lack of farmer awareness, fear of corporate control, and ineffective communication by the government.

• Integrated Scheme for Agricultural Marketing (ISAM): A major government initiative focusing on improving the marketing ecosystem. Key components include:

  • Agricultural Marketing Infrastructure (AMI):

    • Focuses on creating and upgrading physical infrastructure: Godowns (including under Grameen Bhandaran Yojana), Market Yards, Cold Storage.

    • Supports infrastructure for allied sectors (horticulture, livestock, fisheries, etc.).

    • Includes subsidies (25% - 33.33% capital subsidy, back-ended) for creating storage facilities, with special provisions for women.

  • Marketing Research and Information Network (MRIN) / Agmarknet:

    • Aims to bridge the information gap by providing farmers with real-time data on prices, demand, and supply across various markets (national down to local level).

    • Helps farmers make informed decisions about what to grow and when/where to sell.

    • Agmarknet portal disseminates this information, including daily prices for numerous commodities.

  • Strengthening Agmark Grading Facilities:

    • Agmark: A quality certification mark for agricultural produce in India, ensuring products meet specific standards.

    • Enhances consumer confidence and is crucial for accessing domestic and international markets demanding quality assurance.

    • Specialized "Calibrated Laboratories" (in cities like Nagpur, Chennai, Kanpur, Kochi, Mumbai) certify produce for international standards.

• eNAM (Electronic National Agriculture Market):

  • Concept: An online trading platform connecting existing APMC mandis across India to create a unified national market.

  • Functioning: Farmers bring produce to eNAM-linked mandis -> Quality assaying -> Online listing -> Buyers across India can bid electronically -> Transparent price discovery -> Direct online payment to farmer's bank account.

  • Benefits: Wider market access for farmers, better price discovery, transparency, reduced role of intermediaries, access to real-time price information via app/portal.

  • Requirements: Needed APMC Act reforms (allowing e-trading, single state license, single point levy).

  • Challenge: Farmer awareness and digital literacy remain adoption barriers.

• Farmer Producer Organizations (FPOs):

  • Scheme: "Formation and Promotion of 10,000 FPOs" (Launched Feb 2020, Centrally funded).

  • Objectives:

    • Aggregate farmers for collective bargaining (lower input costs).

    • Improve market linkages and access.

    • Facilitate value addition and processing.

    • Provide access to technology, finance, and information.

    • Enhance overall farmer income and competitiveness.

  • Government provides financial support (e.g., ₹18 Lakh over 3 years per FPO).

• Model APLM Act (2017):

  • The "Agriculture Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017" was proposed by NITI Aayog as a reform model.

  • Includes livestock marketing. Aims to promote and facilitate marketing beyond traditional APMC constraints.

  • Adoption and implementation vary across states.

• PM Kisan Samruddhi Kendras (PM-KSK) & Bharat Brand:

  • Existing fertilizer retail shops are being converted into PM-KSK – one-stop shops providing multiple services (inputs, testing, information).

  • Bharat Brand: The single brand name for fertilizers sold under the "One Nation One Fertilizer" scheme (PM Bharatiya Jan Urvarak Pariyojana - PMBJP).

4. Training and Capacity Building

• Chaudhary Charan Singh National Institute of Agricultural Marketing (NIAM): Provides training on agricultural marketing to various stakeholders including farmers, cooperatives, agri-business companies, officials, etc., to adapt to new trends and technologies.

5. India's Agricultural Trade (Brief Overview)

• WTO Data (for 2021):

  • India's share in global agri exports: ~2.4%

  • India's share in global agri imports: ~1.7%

• Key Exports: Marine products, Rice (Basmati & Non-Basmati), Sugar, Spices. Showed significant growth in 2021-22.

• Top Export Destinations: Bangladesh, USA, China, Vietnam, UAE.

• Key Imports: Vegetable Oils, Pulses, Fresh Fruits, Cashew Nuts. Vegetable oil imports saw a significant jump (~52%) in 2022-23 compared to 2021-22.

Conclusion: Developing a robust, transparent, and accessible agricultural marketing system, integrating infrastructure, information networks (like Agmarknet, eNAM), quality standards (Agmark), and farmer collectives (FPOs), is crucial for ensuring farmers receive remunerative prices and enhancing the overall efficiency of India's agricultural sector.