Organized marketing of agricultural commodities in india essay

Produce is procured at manipulatively discovered price and sold at higher price. Apart from this many states impose Value Added Tax.

This situation discourages them to travel the better market where in they could obtain a better price. Under the APMC acts, States are geographically divided in to markets which are headed by market committees and any production in that area shall be brought to a market committee for sale.

Thus, they prefer to sell their produce at the village markets itself. So, less quantity left in market is in itself a strong reason for price rise, which is further supplemented by monopoly of government in open market. Lastly, the marketing of agricultural produce has also been improved significantly by the Government with the growing involvement of the organisations like Food Corporation of India, Cotton Corporation of India, Jute Corporation of India etc.

This is mainly entered into by big corporates who are in business of food processing. Influence of Indian market: Agricultural products are affected by the situation of season. Marketing branded commodities involves a set of basic pricing principles discipline and differentiation.

Employing a traditional sales force to market a branded commodity is the epitome of the Pogo Principle: Consequently, NSEL failed to settle its contracts. It is omnipresent in the attitudes and the cultures in every little thing done by the organization.

There are huge numbers of commission agents in a particular APMC dealing in same crop, which results in constant price discovery and adjustments for that particular crop. At same time buyers, which may be rice mill, flour mills, cotton ginning mill owners, come to procure these products.

This results in fluctuation in prices which can change equations of profit for the farmer. These schemes have been transferred to different States and Union Territories with effect from April In order to facilitate grading; standards have been laid down for agricultural and allied commodities under the Agricultural Produce Grading and Marketing Act, It provides for abolishment of commission agent system.

The value has to be real and tangible, because they will constantly measure and reevaluate it. Apart from this, in a federal and diverse country, every state or region has diverse resources, consumption patterns and rules regarding taxation, levies, sale etc. ITC has initiated an e-Choupal effort that places computers with Internet access in rural farming villages which serves both a social gathering place for exchange of information and an e-commerce hub.

However, later in due to price rise in agro products, state governments requested for restoration of powers under EC act and it was done by central government.

This kind of grading and quality control will help farmers to fetch a good price for quality products produced by them. We all know that everyone stands for something, whether negative or positive.

Agricultural Economics

There is long open border between India and Nepal. Hence farmers are compelled to sell their products at determined price by buyers. During harvesting season, there is over supply so, price is always low. There is lack of collective organisation on the part of Indian farmers. Small size of market: Due to this the middle man exploits the farmers by providing low price of their products.

So far, Ag-mark standards have been framed and notified in respect of commodities which include food grains, pulses, fruits and vegetables, spices, edible nuts, oilseeds, vegetable oils and fats, fibres, forest products, livestock, dairy and poultry products.

Commodity Exchange Essay

Demand is just to dismantle monopoly of state regulated APMCs and increase competition. Generally, farmers sell their products separately on the individual basis.

Similarly due to the lack of communication facilities farmers are unable to get the market information like demand price etc. Thus, the farmers are forced to sell their surplus produce just after harvests at a very low and un-remunerative price.

Moreover, the Co-operative Credit Societies are also re-vitalised for providing more credit to the farmers. Since then there have been regular on and off policy.AGRICULTURAL MARKETING In India, the organised marketing of agricultural commodities has been promoted through a network of regulated markets.

Most state governments and UT administrations have enacted legislations to provide for the regulation of agricultural produce markets. Agricultural marketing information system in the information system used in gathering, analyzing and disseminating information about prices and other information relevant to farmers, animal rearers, traders, processors and others involved in handling agricultural products.

The agricultural marketing system in Nepal is not found organized. The farmers produced small quantities of commodities and sell in the village to fulfill their basic needs. Due to this, unorganized market, the management system of measurement, price control, quality maintenance, and other facilities are unscientific.

1. To study and asses the role of Agriculture commodity markets in India. 2. To analyze trends and fluctuations in the prizes of Future trading in agriculture commodities trade in Indian Exchanges. 3. To assess the co-relation between Spot and future prices of agriculture commodities trade in Indian Exchanges.

4. Agricultural Economics Research Review Vol. 24 January-June pp * Author for correspondence, Email: [email protected] Value Chains of Agricultural Commodities. Commodities are products and services that customers perceive to be homogenous, and a market or industry remains commodity driven if products fail to differentiate themselves in the eyes of the consumer.

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Organized marketing of agricultural commodities in india essay
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