Agricultural marketing statergies for doubling of farmers income
RANI LAKSHMI BAI CENTRAL AGRICULTURAL UNIVERSITY,
TOPIC: Agricultural marketing strategies for doubling of
Dr. ALKA JAIN,
TECHNICAL WRITING AND COMMUNICATION SKILLS,
DOUBLING OF FARMERS’INCOME
“I wish to double the income of farmers by 2022 when India will
celebrate 75 years of its Independence
- Prime Minister while addressing farmers rally at Bareilly (Feb 28, 2016)
“We are grateful to our farmers for being the backbone of the
country’s food security. We need to think beyond food security and
give back to our farmers a sense of income security. Government
will, therefore, reorient its interventions in the farm and non-farm
sectors to double the income of the farmers by 2022.”
-Finance Minister Budget Speech, February 29,2016.
SEVEN STRATERGIES TO DOUBLE FARMERS
Focus on irrigation along with adequate resource building.
Increase production through improved seeds , planting
materials ,organic farming and soil health card .
Strengthening warehousing and cold chain facilities to curb
post harvest losses.
Value addition through food processing .
Allied activities of agriculture like Dairy development,
Poultry,Beekeeping, Fisheries, Agro-forestry and
Integrated Nutrient Management.
Overcoming deficiencies in agriculture marketing
Work on institutional loan to reduce risk and growth of
WHAT IS TO BE DOUBLED?
Income of farmers, not farm incomes only, not the
output or the income of the sector or the value added or GDP of agriculture
i.e. Real Income not Nominal Income
Nominal income is the income expressed in money terms and measured in
current currency (rupee, dollar etc.)
Real income is income of individuals or nations after adjusting for
RI = NI – Inflation
MAJOR CHALLENGES AND ISSUES IN
High cost & less availability of hybrid seeds.
Lack of short duration high yielding varieties.
High cost of production.
Low storage and processing facilities.
Market fluctuation in cropping and off season.
Imbalance & more use of chemical fertilizer and pesticide.
Productivity of major crops is also low in comparison to
Lack of marketing facility.
National Agriculture Market or eNAM is an online trading platform
for agricultural commodities in India.
It was launched by the Ministry of Agriculture on 14 April 2016
by Prime Minister of India.
The Portal is managed by Small Farmers’ Agribusiness Consortium
The market facilitate farmers, traders and buyers with online trading
The eNAM markets are proving popular as the crops are
weighed immediately and the stock is lifted on the same day
and the payments are cleared online.
• The market is helping in better price discovery and provide facilities for
smooth marketing of their produce.
• The market transactions stood at ₹36,200 crores by January 2018,
• Over 90 commodities including staple food grains, vegetables and fruits
are currently listed in its list of commodities available for trade.
• A national e-market platform for transparent sale transactions and
price discovery initially in regulated markets.
• Willing States to accordingly enact suitable provisions in their APMC
Act for promotion of e-trading by their State Agricultural Marketing
• One license for a trader valid across all markets in the State.
• Harmonisation of quality standards of agricultural produce and
provision for assaying (quality testing) infrastructure in every market
to enable informed bidding by buyers.
• Provision of Soil Testing Laboratories in/ or near the selected mandi.
• Cabinet Committee on Economic Affairs had approved a Central Sector
Scheme for Promotion of National Agricultural Market through Agri-Tech
Infrastructure Fund (ATIF).
• The government has allocated ₹200 crores to the newly created ATIF.
With this fund SFAC will implement NAM for three years from 2015-16 to
2017-18. Each market is given ₹30 lakhs by the department.
Advantages for various stakeholders
• Farmers: They can sell products without the interference of any
brokers or middlemen thereby making competitive returns out of
• Traders: Traders will be able to do secondary trading from one
APMC to another one anywhere in India. Local traders can get
access to the larger national market for secondary trading.
• e-NAM aims to improve the marketing aspect of the agriculture
sector and it will improve the supply chain of commodities and
Integration of APMCs across the country through a common online
To promote uniformity in agriculture marketing by removing
information asymmetry between buyers, sellers based on actual
demand and supply.
MSP-MINIMUM SUPPORT PRICE
• Minimum Support Price (MSP) is a form of market intervention by the
Government of India to insure agricultural producers against any sharp fall
in farm prices.
• The minimum support prices are announced by the Government of India at
the beginning of the sowing season for certain crops on the basis of the
recommendations of the Commission for Agricultural Costs and Prices
• MSP is price fixed by Government of India to protect the producer - farmers
against excessive fall in price during bumper production years.
• The major objectives are to support the farmers from distress sales
and to procure food grains for public distribution.
Fair and Remunerative Price (FRP) for sugarcane.
Government announces minimum support prices (MSPs) for 22 mandated crops
and fair and remunerative price (FRP) for sugarcane.
The mandated crops are 14 crops of the kharif season, 6 rabi crops and
two other commercial crops.
• Cereals (7) - paddy, wheat, barley, jowar, bajra, maize and ragi
• Pulses (5) - gram,arhar/tur,moong,urad and lentil
• Oilseeds (8) - groundnut, rapeseed/mustard,toria,soyabean, sunflower seed,
sesamum, safflower seed and nigerseed.
• Raw cotton
• Raw jute
• De-husked coconut
• Sugarcane (Fair and remunerative price)
• Virginia flu cured (VFC) tobacco.
PRADHAN MANTRI-FASAL BHIMA
The Pradhan Mantri Fasal Bima Yojana was launched on 18 February
2016,an insurance service for farmers for their yields.
• To provide insurance coverage and financial support to the farmers in the event
of failure of any of the notified crop as a result of natural calamities, pests &
• To stabilise the income of farmers to ensure their continuance in farming.
• To encourage farmers to adopt innovative and modern agricultural practices.
• To ensure flow of credit to the agriculture sector.
There will be a uniform premium of only 2% to be paid by
farmers for all Kharif crops and 1.5% for all Rabi crops.
In case of annual commercial and horticultural crops, the
premium to be paid by farmers will be only 5%.
PMFBY is a replacement scheme of NAIS.
PRADAN MATHRI KISAN SAMMAN NIDHI
PM KISAN is a Central Sector scheme with 100% funding from Government of India
It has become operational from 1.12.2018.
Under the scheme an income support of Rs.6000/- per year in three equal
instalments will be provided to small and marginal farmer families having combined
land holding/ownership of upto 2 hectares.
State Government and UT Administration will identify the farmer families which are
eligible for support as per scheme guidelines.
The fund will be directly transferred to the bank accounts of the beneficiaries.
All Institutional Land holders.
Former and present holders of constitutional posts.
All serving or retired officers and employees of Central/ State
Government Ministries /Offices/Departments.
Former and present Ministers/ State Ministers and former/present
Members of LokSabha/ RajyaSabha/ State Legislative Assemblies
FARMER PRODUCERS ORGANISATION(FPO)
Collectivization of producers, especially small and marginal
farmers into producer organizations.
It has emerged as one of the most effective pathways to
address the many challenges of agriculture.
Less investments , improved technology and inputs and
Coconut is top priority and pomegranate the least.
40,000 hectares of potatoes in Karnataka are tie-up with ITC(which
manufactures Bingo) and Pepsi (Lays) can take care of our entire potato crop.
Department of Agriculture and Cooperation (DAC),Ministry of Agriculture,
Government of India launched Farmer Producer Organisations (FPOs).
During 2011-12, in partnership with state governments, which was implemented
through the Small Farmers Agribusiness Consortium (SFAC).
The organisation involved the mobilisation of approximately 2.50 lakh farmers into
250 FPOs (each with an average membership of 1000 farmers) across the
country, under scheme of the Rashtriya Krishi Vikas Yojana (RKVY).
Mobilising farmers into groups of between 15-20 members at the village level.
Strengthening farmer capacity through agricultural best practices for enhanced
Ensuring usage of quality inputs and services for intensive agriculture.
Facilitating fair and remunerative markets including linking of producer groups to
Government : 90 lakhs per permanent structures like cold storage.
Small Farmers Agriculture-Business Consortium (SFAC) will give grant of
Rs 10 lakh.
NABARD is committed to give each FPO Rs 5 lakh.
Raising share capital is the main challenge.
Difficulty in convincing government.
To mobilize farmers into community organizations is very big
It requires very high skills to convince individual producers /
growers to form organizations.
Legal and technical knowledge about Acts and Regulations.
It involves agricultural production being carried on the basis
of an agreement between the buyer and farm producers.
The farmer undertakes to supply agreed quantities of a crop
or livestock product.
In return, the buyer, usually a company, agrees to buy the
product, often at a price that is established in advance.
Company also supports by providing inputs.