Agriculture, Food and Beverage Sector Profile - India

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Agricultural marketing is inferred to cover the services involved in moving an agricultural product from the farm to the consumer. It is also the planning, organizing, directing and handling of agricultural produce in such a way as to satisfy the farmer, producer and the consumer. Numerous interconnected activities are involved in doing this, such as planning production, trading of agricultural products in india and harvestinggradingpacking and packagingtransport, storageagro- and food processingdistributionadvertising and sale.

Effectively, the term encompasses the entire range of supply chain operations. However, it's key function is to help direct these services, by providing competent and able market information, thereby linking the other operations into an integrated service with targeted outcomes.

Efforts to develop agricultural marketing have, particularly in developing countries, tended to concentrate on a number of areas, specifically infrastructure development; information provision; training of farmers and traders in marketing and post-harvest issues; and support to the development of an appropriate policy environment. In the past, efforts were made to develop government-run marketing bodies but these have tended to become less prominent over the years.

Efficient marketing infrastructure such as wholesaleretail and assembly markets and storage facilities is essential for cost-effective marketing, to minimize post-harvest losses and to reduce health risks. Markets play an important role in rural developmentincome generation, food securityand developing rural-market linkages. Experience shows that planners need to be aware of how to design markets that meet a community's social and economic needs and how to choose a suitable site for a new market.

In many cases sites are chosen that are inappropriate and result in under-use or even no use of the infrastructure constructed. It is also not sufficient just to build a market: Rural assembly markets are located in production areas and primarily serve as places where farmers can meet with traders to sell their products.

These may be occasional perhaps weekly markets, such as haat bazaars in India and Nepal, or permanent. These changes may require responses in the way in which traditional wholesale markets are organized and managed. Retail marketing systems in trading of agricultural products in india countries have broadly evolved from traditional street markets through to the modern hypermarket or out-of-town shopping center. In developing countries, there remains scope to improve agricultural marketing by constructing new retail markets, despite the growth of supermarkets, although municipalities often view markets primarily as sources of revenue rather than infrastructure requiring development.

Effective regulation of markets is essential. Inside a market, both hygiene rules and revenue collection activities have to be enforced. Of equal importance, however, is the maintenance of order outside the market. Licensed traders in a market will not be willing to cooperate in raising standards if they face competition from unlicensed operators outside who do not pay any of the costs involved in providing a proper service.

Efficient market information can be shown to have positive benefits for farmers and traders. Up-to-date information on prices and other market factors enables farmers to negotiate with traders and also facilitates spatial distribution of products from rural trading of agricultural products in india to towns trading of agricultural products in india between markets.

Moreover, even when they function, the service provided is often insufficient to allow commercial decisions to be made because of time lags between data collection and dissemination. In the longer run, the internet may become an effective way of delivering information to farmers. However, problems associated with the cost and accuracy of data collection still remain to be addressed.

Even when they have access to market information, farmers often require assistance in interpreting that information. For example, the market price quoted on the radio may refer to a wholesale selling price and farmers may have difficulty in translating this into a realistic price at their local assembly market. It is not easy to see how small, poor farmers can generate sufficient income for a commercial service to be profitable although in India a new service introduced by Thomson Reuters was reportedly used by trading of agricultural products in indiafarmers in its trading of agricultural products in india year of operation.

Esoko in West Africa attempts to subsidize the cost of such services to farmers by charging access to a more advanced feature set of mobile-based tools to businesses. Farmers frequently consider marketing as being their major problem. However, while they are able to trading of agricultural products in india such problems as poor prices, lack of transport and high post-harvest losses, they are often poorly equipped to identify potential solutions.

Successful marketing requires learning new skills, new techniques and new ways of obtaining information. Extension officers working with ministries of agriculture or NGOs are often well-trained in horticultural production techniques but usually lack knowledge of marketing or post-harvest handling. Agricultural marketing needs to be conducted within a supportive policy, legal, institutional, macro-economicinfrastructural and bureaucratic environment. Traders and others are generally reluctant to make investments in an uncertain policy climate, such as those that restrict imports and exports or internal produce movement.

Businesses have difficulty functioning when trading of agricultural products in india trading activities are hampered by excessive bureaucracy. Inappropriate law can distort and reduce the efficiency of the market, increase the costs of doing business and retard the development of a competitive private sector.

Poor support institutions, such as agricultural extension services, municipalities that operate markets inefficiently and inadequate export promotion bodies, can be particularly damaging.

Poor roads increase the cost of doing business, reduce payments to farmers and increase prices to consumers. Finally, corruption can increase the transaction costs faced by those in the marketing chain. Most governments have at some stage made efforts to promote agricultural marketing improvements. AMS oversees marketing agreements and orders research and promotion programs.

It also purchases commodities for federal food programs. USDA also provides support to agricultural marketing work at various universities. These boards were closed down in the s. As a colonial power, Britain established marketing boards in many countries, particularly in Africa. Some continue to exist although many were closed at the time of the introduction of structural adjustment measures in the s. Several developing countries have established government-sponsored marketing or agribusiness units.

South Trading of agricultural products in india, for example, trading of agricultural products in india the National Agricultural Marketing Council NAMC as a response to the deregulation of the agriculture industry and closure of marketing boards in the country. India has the long-established National Institute of Agricultural Marketing. These are primarily research and policy organizations, but other agencies provide facilitating services for marketing channels, such as the provision of infrastructure, market information and documentation support.

New marketing linkages between agribusinesslarge retailers and farmers are gradually being developed, e. More attention is now being paid to the development of regional markets e. East Africa and to structured trading systems that should facilitate such developments.

From Wikipedia, the free encyclopedia. Marketing GroupMarketing improvement in the developing world: Planning and Design Manual". Retrieved 19 April Shepherd [5]Market information services — Theory and Practice. Shepherd [6]Understanding and Trading of agricultural products in india Market Information. Archived from the original PDF on Collective action and market access for smallholders: A summary of findings. Shepherd [8] Approaches to linking producers to markets.

Retrieved 27 February Retrieved from " https: Agricultural marketing Agriculture Food industry Marketing by industry. Views Read Edit View history. This page was last edited on 10 Marchat By using trading of agricultural products in india site, you agree to the Terms of Use and Privacy Policy.

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It is now official. Five years after the World Trade Organisation WTO came into existence, the anticipated gains for India from the trade liberalisation process in agriculture are practically zero. And yet, undaunted by the negative fallout from the implementation of the WTO's Agreement on Agriculture, the Ministry of Agriculture is aggressively pushing for the second phase of reforms. At a recent meeting of the political parties, farmers' representatives and voluntary agencies in New Delhi, the Ministry of Agriculture admitted that the hopes from an international regime that talked of establishing a fair and market oriented agricultural trading system have been belied.

Such is the growing dismay that Mr Balram Jakhar, a former Minister for Agriculture, and in whose time the WTO accord was pushed through, lamented how politically incorrect he was in accepting the free trade agenda for Indian farmers. Balram Jakhar is not the only senior politician to have realised the mistake. Maharashtra's political stalwart and a former Congress leader, Sharad Pawar, too is critical of the global trading system which is hitting the sugarcane growers, tea producers and even grape farmers.

Former Prime Ministers P. Deve Gowda and Inder Kumar Gujral have at different platforms already expressed their anguish at the visible assault on Indian farming community. Politics apart, it is time draw a balance sheet of the gains and losses that accrued from the implementation of the WTO's Agreement on Agriculture. After all, politicians are known to be speaking different languages at different times.

But what about the economists, who didn't leave any stone unturned to force the nation to believe that WTO was in the interest of the Indian farmers? Isn't it strange that the Ministry of Agriculture should still continue to back its analysis and recommendations on the advise of the same breed of discredited economists?

Let us first try to understand what went wrong and where. WTO's Agreement on Agriculture had incorporated three broad areas of commitments from member states, namely in market access, domestic support and export subsidies. The underlying objective being to correct and prevent restrictions and distortions in world agricultural markets.

Five years later, it is now established that these measures have only protected the farmers and the farming systems of the developed countries. On the other hand, the trading regime has ensured that developing countries take time-bound initiatives to open up their domestic markets for cheap and highly subsidised imports of agricultural commodities.

A recent FAO study concludes that there has been hardly any change in the volume of exports. Tariff peaks continue to block exports from the developing countries. Tariffs still remain very high, specially in case of cereals, sugar and dairy products. Sanitary and phytosanitary measures continue to be a major barrier in diversifying exports in horticulture and meat products.

Selective reduction in tariffs by the developed countries have also blocked the exports from developing countries. And on top of it, only 36 countries all developed have the right to impose special safeguard provisions if agriculture imports distort their domestic market!! India was forced to either phase out or eliminate the quantitative restrictions QRs on agricultural commodities and products latest by April 1, India has, therefore, opened its market and in turn made the farming community vulnerable to the imports of highly subsidised products.

Already, cheaper imports of skimmed milk powder, edible oils, sugar, tea, arecanut, apples, coconut etc have flooded the market. Clever manipulation of their subsidy reduction commitments has in reality increased the support to farmers in the developed countries.

In the United States, subsidy to a mere 90, farmers has increased by times since In any case, India provides only one billion dollar worth of indirect subsidies to million farmers! It was anticipated that due to reduction in domestic support in developed countries, cereal production would shift from developed countries to developing countries.

Empirical evidence, however, shows that such a trend is not at all visible. Moreover, with such massive subsidies intact, and with the QRs being lifted, India is sure to be inundated with food imports. The kind of export subsidies that need to be pruned are not provided in India.

Whereas, WTO enables only 25 countries to provide export subsidies for their agricultural products and commodities. India is, however, keen to support the Cairns Groups food exporting countries which demands the elimination of export subsidies not realising that joining such a group will invite problems on various other fronts. The Ministry acknowledges that despite the rules being defined, the expected gains have eluded the developing countries. It was expected that with the removal of trade distorting measures, agricultural exports from the developing countries will increase.

This did not happen. Nor has the so-called fair trading system helped efficient producers in realising a higher price for their products.

On the contrary, prices of most agricultural commodities are declining in the world markets. Don't say you were not warned. Seeds of Despair, I had, like a few others, concluded that the entire effort of the free trade initiative is to destroy the foundations of food self-sufficiency so assiduously built over the years.

After all, with food production increasing in the US and in the European Union, the focus is only on how to find bigger and reliable markets for exports. In the US, for instance, food production is slated to multiply in the years to come. And incidentally, agricultural exports are the second biggest export earner for America. It still does not mean that the Ministry of Agriculture has learnt any plausible lessons from the debacle on the agriculture front.

Despite holding s series of public hearings, the Ministry's focus remains very clear. It has already constituted a task force, under the chairmanship of a known votary of the free trade paradigm, Sharad Joshi, to submit a report on the implications of WTO's Agreement on Agriculture on Indian agriculture by February next. India's march to complete dependency on food imports, therefore, is no longer a hidden agenda. Devinder Sharma is an Indian food and trade policy analyst.