Context: Recently, the Centre has released a draft “National Policy Framework on Agricultural Marketing” that seeks to help farmers realise the best price for their produce. 

• The Drafting Committee has prepared a draft National Policy Framework on Agricultural Marketing.

• It has been prepared by committee under chairmanship of Faiz Ahmed Kidwai.

• It envisions building a vibrant marketing ecosystem in country wherein farmers of all categories find a market of their choice to realize best price for their produce.

Key Proposals of Draft 

• Establish Empowered Agricultural Marketing Reform Committee: comprising state agriculture ministers to build consensus among states to move towards unified national market for agriculture produce through single licensing /registration system & single fee.

• It may be chaired by Agriculture Minister of any state on rotational basis similar to Empowered Committee on GST.

• Improve farmer-Market linkages: Declare large number of need-based warehouses/cold storages as sub-market yards; expand & consolidate eNAM beyond APMC markets e.g., to sub-market yards.

• Agricultural Produce Market Committee (APMCs) Reforms: Encourage APMCs to improve their income by notifying new agricultural produce, promoting food processing activities etc. rather than exorbitantly imposing market fee & other fee/cess. 

Other

• Strengthen Value Chain Centric Infrastructure using AI, blockchain technology etc with private sector participation

• Launch Price Insurance Scheme to insure the farmers' income for their assured income at the time of sowing itself.

• Promote Ease of Doing AgriTrade by Digital automation of mandi processes; digital issuance of license/registration to traders, private market operators, etc.

Agriculture Marketing in India

• Agricultural marketing a State subject under Entry 28 of List-II (State List) of VII Schedule under article 246 of the Constitution. 

• Challenges: Fragmented and Inefficient Supply Chain, Market access, Poor Infrastructure, Complex Regulations etc.

• Initiatives Undertaken: Formation & Promotion of 10,000 Farmer Produce Organizations, Agriculture Infrastructure Fund, Agricultural Marketing Infrastructure, Gramin Agricultural Markets etc

Challenges Faced by Agriculture Marketing in India

• Inadequate Infrastructure: Poor transportation, storage, and cold chain facilities lead to high post-harvest losses and inefficiencies in distribution.

• Fragmented Markets: The lack of organized markets and reliance on multiple intermediaries increases costs and reduces farmers’ profit margins.

• Price Fluctuations: Farmers often face unpredictable prices due to market volatility, leading to income instability.

• Limited Market Access: Small-scale farmers struggle to access distant or organized markets, limiting their ability to sell at fair prices.

• Lack of Market Information: Farmers often lack timely information on prices, demand trends, and quality standards, which hinder decision-making.

• Limited Credit and Financial Support: Difficulty in accessing affordable credit for transportation, storage, and processing limits growth and profitability.

• Inadequate Value Addition: Low investment in processing and value addition leads to the export of raw, unprocessed goods at lower prices.

Government Initiatives to Reform Agricultural Marketing in India

• PM-AASHA (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) 2018: A scheme to ensure farmers get remunerative prices through Price Support, Price Deficiency Payment, and Private Procurement Schemes.

• Agriculture Produce Market Committee (APMC) Reforms: Encouraging states to amend APMC Acts for direct selling and private market participation to reduce middlemen.

• E-NAM (National Agriculture Market): An online platform integrating mandis to enable transparent trading and better price discovery.

• Kisan Rail Scheme: Dedicated trains for transporting perishable goods, improving market access and reducing transportation costs.

• Agricultural Infrastructure Fund (AIF): Providing financial support for developing storage, processing, and cold storage facilities.

• One Nation, One Market: Aiming for seamless interstate trade by eliminating barriers and strengthening the E-NAM platform.

• FPO (Farmer Producer Organization) Promotion: Supporting farmer cooperatives to improve bargaining power and market linkages.

• Support for Agri-Startups: Encouraging innovation and new market solutions in the agriculture sector through financial and mentorship support.

• Minimum Support Price (MSP) Policy: The MSP system aims to provide a safety net for farmers by ensuring that the price they receive for their crops is above the cost of production.

Conclusion

• The government’s agricultural marketing reforms are aimed at addressing inefficiencies, reducing middlemen’s influence, and providing farmers with more opportunities for better income. 

• These reforms are designed to make farming more profitable and sustainable by offering better market access, fairer pricing mechanisms, and innovative solutions for both farmers and consumers.