Policies towards Warehousing & Marketing
Dr Murari Lal Gaur
The warehousing and marketing facilities have important linkages that help farmers and traders gain from agricultural trade, where storage use to be an extremely vital function for success deciding success of agricultural marketing. It involves holding and preserving of agricultural commodities from the time they are produced until they are needed for consumption. Looking into prevailing socio economic scenario of Indian farmers there exists an inevitable need to provide the farming community with facilities for scientific storage, so that wastage and produce deterioration are avoided and also to enable it to meet its ...view middle of the document...
e. in form of inputs (seeds, fertilizers, supplements etc.). Fuel is added to the fire, when the prevailing situation in regards to storage of farming produce is visualized at micro scale, where it is either not available or it is owned by the trader/moneylender who does not encourage the farmer to get credit from other sources. As a result, there arises 3 common scenarios/situations where,
• Either the trader sells the farmers produce and deducts the principal and the interest, (the price received by farmers is therefore discovered under limited circumstances - not competitively discovered – forcing farmer to sell through trader only) or
• Farmer is pressurized into distress sales to square off debts soon after harvesting – barely recovering capital and
• Does not foster emergence of agriculture support service providers – extension, market intelligence, credit, inputs, storage etc.
Under above situation the multiple roles performed by the trader allow him to exploit the farmer, who finds himself in a debt trap. The only viable solution in this regard looks to be efficient & better regulated markets with an updated policy towards ware housing as well as agricultural marketing as whole. The prevailing state of regulated markets is showing ample scope of improvement on various fronts. Agricultural marketing in India has made notable progress since independence but many challenges still remain. A dynamic and vibrant marketing system with adequate supply chain infrastructure has been felt necessary to keep pace with the changing agricultural production and growing marketable surplus. Moreover, efforts should be made at all legal and policy levels to strengthen the rural economy and create rural employment, which will surely augment production and productivity leading to food security and inclusive growth of the country. There...