Storage, Transport And Marketing Of Agricultural Produce

<<2/”>a >body>



Storage, transport and Marketing of agricultural produce

Storage

The agricultural sector in India accounts for about 14% of GDP and 10% of export earnings. India’s arable land area of 159.7 million hectares (394.6 million acres) is the second largest in the world, after the USA. Its gross irrigated crop area of 82.6 million hectares 9215.6 million acres) is the largest in the world. It ranks among the top three global producers of many crops like wheat, rice, pulses, Cotton, peanuts, fruits and vegetables. In spite of these achievements, the crop yields in India are still around just 30% to 60% of the best sustainable crop yields achievable in the farms of developed countries. These are likely to be negated in the coming decades due to scientific and technologically improved crop production measures which would increase the quantity of food grains harvested and therefore the storage requirement would further increase. About 65-70% of the total food grains produced in India is retained by farmers for their selfconsumption or meeting their other financial requirements. The food grains at farm level are stored in traditional as well as in modern storage structures.Food grains are stored in bulk in these storage structures, which are neither rodent proof nor moisture proof. There are estimates that substantial quantity of food grains (about 6.0% to 10% of total production) are damaged in these storage receptacles due to moisture, insects, rodents and Fungi and also due to transportation.

It has been estimated that about 65% of their total produce are held by the farmers for their consumption and use which is stored in a crude and unscientific method. The balance quantity is supplied to the central pool and delivered at the nominated warehouse or at the local mandi earmarked for procurement or delivery. The procurement agency collects the quantity deposited to the central pool by the farmer and transports the same to the FCI or nominated warehouse. Often the stock stored in the warehouses remain in storage for more than its shelf life due to want of off-take of stock by allotees like Targeted Public Distribution System (TPDS) and flour mill owners. Such long storage, if not taken proper care of, causes damage to the stock. Since the stock stored in the warehouse is not lifted, the storage space cannot be utilized for fresh arrivals of the ensuing season.

Challenges of Storage Facility in india

Storage of food grains in open space

Normally storage in open in the form of CAP is supposed to be resorted to during peak procurement seasons. The storage in the CAP should not be more than a year with at least one turn-over of the stock every 6 months to retain the quality of the food grains. Further, for proper aeration, the cover is to be removed at least 2 to 3 times in a week. Unfortunately, lot of stock is lying in the open where even the plinths are not available. During procurement season, for want of adequate CAP storage facilities, stocks are simply dumped/stacked on open spaces wherever feasible and much of these stock gets damaged because of seepage of water from the ground in the absence of proper plinth or height of ground or due to floods and rains.

Poor condition of storage facilities

Utter disregard to safe and scientific storage practices have resulted in excessive damages to food grains in the central pool maintained by SGAs in various states of india. In addition, failure to ensure early disposal of damaged stock led to blockage of storage space. The loss due to damaged stock is in million tones.

Efficient capacity utilization

For optimum capacity utilization of the existing capacity, timely and proper planning of movement and distribution of food grains across pan India is a pre-requisite. Despite storage constraints in FCI, the utilization of existing storage capacity in various states/UTs was less than 75% in majority of the months during the period 2011-12-2016-17. However, the capacity utilization may not be optimal due to reasons of sudden unanticipated increase in offtake for a particular region or due to unanticipated decrease in procurement.

Following important steps sgould be taken in order to boost the storage facilities:

  • With proper foresight and planning in lifting the stock of the central pool in time from SGAs,Money paid as hiring charges and carry over charges to SGAs can be utilized for construction of new storage spaces.
  • Adequate manpower and supervision is required for scientific and safe storage in CAP storage.  
  • To save costs, proper plinths should be constructed in vacant government lands which can be used for temporary storage of food grains during peak procurement seasons.  
  • Hiring charges of FCI would continue to shoot up substantially in future unless owned storage capacity is augmented proportionately as against creation of storage capacity for guaranteed hiring by FCI.
  •  Poor and reckless management and cumbersome paperwork leading to non-availability of storage space even if the space is held by damaged stock for want of disposal approvals from FCI should be dealt with appropriately by decentralized DECISION MAKING.  
  • Non adherence of safe and scientific storage methods should be dealt with an iron hand and the strictest of punishment is to be enforced and accountability fixed.  
  • The total number of covered storage required for meeting the deficiency of 35 million MT is 7000 godowns at the rate of 5000 tonnes per godown. At approximately 1,450 INR21 per tonne requirement of funds for the godowns, the total funds requirement at current rates for constructing 7000 numbers of covered storage is 5,075 Cr INR excluding the cost of land.

Transportation of agricultural produce in india

Transport is considered to be an important aspect in improving agricultural efficiency. It improves the Quality Of Life of individuals, structures a market for agricultural productions, makes interaction possible among geographical as well as regions and opened up new areas to economic focus.  

Road transport is the most regular and multifaceted Network that includes wide range, physically expedient, highly bendable and generally the most operationally suitable and readily available means of movement of goods.  There are several problems and limitations linked with transportation of agriculture productions. In case transport Services are not common, cheap quality or costly then agriculturalists will be at an inconvenience when they try to sell their crops. An expensive service will naturally lead to low farm gate prices (the net price the farmer receives from selling his produce).

The seasonally blocked routes or sluggish and irregular transport services, together with unsatisfactory storage, can actually lead to high losses as specific items such as milk, fresh vegetables, tea, get worse quickly after a while. In case the agricultural products are moved through bumpy road network, then several other crops such as mangoes & bananas might also suffer losses from staining. This will also show up in reduced rates to the agriculturalist.

Agriculture marketing

Agricultural Marketing, rather than production, is the key driver of the agriculture sector today, thanks to the new market realities posed by the increasing accent on Globalization/”>Globalization-3/”>Globalization, Liberalization-2/”>Liberalization and Privatization of the economy. Market-driven production is an idea whose time has come. With the gradual shifting of agricultural system from subsistence to commercial one, there is increasing focus on Agripreneurship and Agri-marketing. It is the need of the time to tune up the Agricultural Marketing System of the country to enable the farmers to face the new challenges and reap the opportunities as well. This summons us to revisit our traditional statistic policies and laws and bring about the requisite reforms in the sector.

Agricultural Produce Market Committee act 2003

Agricultural Produce Market Committee (APMC) is a statutory market committee constituted by a State Government in respect of trade in certain notified agricultural or horticultural or Livestock products, under the Agricultural Produce Market Committee Act issued by that state government.

Under Constitution of India, agricultural marketing is a state (provincial) subject. While intra-state trades fall under the jurisdiction of state governments, inter-state trading comes under Central or Federal Government (including intra-state trading in a few commodities like raw jute, cotton, etc.). Thus, agricultural markets are established and regulated mostly under the various State APMC Acts.  Most of the state governments and Union Territories have since enacted legislations (Agriculture Produce Marketing Committee Act) to provide for development of agricultural produce markets and to achieve an efficient system of buying and selling of agricultural commodities. Except the States of Jammu and Kashmir, Kerala, Manipur and small Union Territories such as Dadra and Nagar Haveli, Andaman and Nicobar Islands, Lakshadweep, etc. all other States and UTs in the country have enacted such State Marketing Legislations. The purpose of these Acts is basically the same i.e. regulation of trading practices, increased market efficiency through reduction in market charges, elimination of superfluous intermediaries and protecting the interest of producer-seller.

Problems with APMC’s and Model APMC act

The APMC system was introduced to prevent distress sale by farmers to their creditors, to protect farmers from the exploitation of intermediaries and traders and to ensure better prices and timely payment for their produce through the auctions in the APMC area. However, APMC Acts restrict the farmer from entering into direct contract with any processor/ manufacturer/ bulk processor as the produce is required to be routed through these regulated markets.  Over a period of time, these markets have acquired the status of restrictive and Monopolistic markets, harming the farmers rather than helping them to realise remunerative prices.

The APMC Act treats APMC as an arm of the state and the market fee as the tax levied by the state, rather than as a fee charged for providing services, which acts as a major impediment in creating a national Common Market.   

Various taxes, fees/charges and cess levied on the trades conducted in the markets or Mandis are also notified under the APMC Act.  APMCs charge a market fee from buyers, and a licensing fee from the commissioning agents who mediate between buyers and farmers. They also charge small licensing fees from a whole range of functionaries (Warehousing agents, loading agents etc.). In addition, commissioning agents charge commission fees on transactions between buyers and farmers. The levies and other market charges imposed by states vary widely. Statutory levies/mandi tax, VAT etc. all add up to hefty amounts, create market distortions with cascading effects and  strong entry barriers. Further, multiple licences are necessary to trade in different market areas in the same State. All this has led to a highly fragmented and high-cost agricultural economy, which prevents economies of scale and seamless movement of agri goods across district and State borders.

APMC operations are hidden from scrutiny as the fee collected, which are at times exorbitant, is not under State Legislature’s approval.  Agents in an APMC may get together to form a cartel. This creates a monoposony (a market situation where there is only one buyer who then exercises control over the price at which he buys) situation. Produce is procured at manipulatively discovered price and sold at higher price, defeating the very purpose of APMCs.

In order to deal with the challenges of APMC’s Central government introduced Model APMC act in 2003. Salient features of the act are as follows:

  • Legal persons, growers and local authorities are permitted to apply for the establishment of new markets for agricultural produce in any area. Under the existing law, markets are setup at the initiative of State Governments alone. Consequently, in a market area, more than one market can be established by private persons, farmers and consumers.
  • There will be no compulsion on the growers to sell their produce through existing markets administered by the Agricultural Produce Market Committee (APMC). However, agriculturist who does not bring his produce to the market area for sale will not be eligible for election to the APMC
  • Separate provision is made for notification of ‘Special Markets’ or ‘Special Commodities Markets’ in any market area for specified agricultural commodities to be operated in addition to existing markets.
  • A new Chapter on ‘Contract Farming’ added to provide for compulsory registration of all contract farming sponsors, recording of contract farming agreements, resolution of disputes, if any, arising out of such agreement, exemption from levy of market fee on produce covered by contract farming agreements and to provide for indemnity to producers’ title/ possession over his land from any claim arising out of the agreement
  • .Provision made for direct sale of farm produce to contract farming sponsor from farmers’ field without the necessity of routing it through notified markets.
  • Provision made for imposition of single point levy of market fee on the sale of notified agricultural commodities in any market area and discretion provided to the State Government to fix graded levy of market fee on different types of sales.
  • Licensing of market functionaries is dispensed with and a time bound procedure for registration is laid down. Registration for market functionaries provided to operate in one or more than one market areas.
  • Commission agency in any transaction relating to notified agricultural produce involving an agriculturist is prohibited and there will be no deduction towards commission from the sale proceeds payable to agriculturist seller.
  • Provision made for the purchase of agricultural produce through private yards or directly from agriculturists in one or more than one market area.

Agriculture marketing and e-NAM

Union Budget 2014-15 and Union Budget 2015-16 had suggested the creation of a National Agricultural Market (NAM) as a priority issue. In July 2015, Union Cabinet unveiled its plan to go ahead with the project amidst the constitutional constrains as mentioned above.  

The National Agriculture Market is envisaged as a pan-India electronic trading portal which seeks to network the existing APMCs and other market yards to create a unified national market for agricultural commodities. NAM is a “virtual” market but it has a physical market (mandi) at the back end. NAM is proposed to be achieved through the setting up of a common e-platform to which initially 585 APMCs selected by the states will be linked. The Central Government will provide the Software free of cost to the states and in addition a grant of up to Rs. 30 lakhs per mandi will be given as a onetime measure for related equipment and Infrastructure-2/”>INFRASTRUCTURE requirements. In order to promote genuine price discovery, it is proposed to provide the private mandis also with access to the software but they would not have any monetary support from Government.

 

 

 


,

Storage, Transport and Marketing of Agricultural Produce

Agricultural produce is a valuable commodity that needs to be stored, transported, and marketed effectively in order to reach its full potential. This ARTICLE will discuss the key aspects of each of these areas, with a focus on the challenges and opportunities that exist in each.

Storage

The first step in the storage process is post-harvest handling. This involves ensuring that the produce is harvested at the correct time and then handled carefully to minimize damage. Once the produce has been harvested, it needs to be stored in a suitable facility. The type of facility will depend on the type of produce being stored, as well as the Climate and other environmental factors.

There are a number of different storage methods that can be used, including cold storage, dry storage, and controlled Atmosphere storage. Cold storage is the most common method for storing perishable produce, as it helps to slow down the rate of decay. Dry storage is used for produce that does not require refrigeration, such as grains and pulses. Controlled atmosphere storage is a more specialized method that is used to store produce for long periods of time.

Storage pests and diseases can also be a major problem, and it is important to take steps to prevent them from occurring. This includes using good sanitation practices, controlling temperature and humidity, and using pesticides if necessary.

Transport

Once the produce has been stored, it needs to be transported to its final destination. The mode of transportation will depend on the distance that the produce needs to travel, the type of produce, and the cost of transportation.

The most common modes of transportation for agricultural produce are road, rail, and sea. Road transportation is the most flexible option, but it can be expensive. Rail transportation is less expensive than road transportation, but it is not as flexible. Sea transportation is the least expensive option, but it can be slow and unreliable.

The transportation infrastructure in a country can also have a significant impact on the cost and efficiency of transporting agricultural produce. Countries with well-developed transportation infrastructure, such as roads, railways, and Ports, will be able to transport produce more easily and cheaply than countries with poor transportation infrastructure.

Marketing

The final step in the storage, transport, and marketing of agricultural produce is marketing. This involves finding buyers for the produce and negotiating prices. The market channels that are used will depend on the type of produce, the location of the buyers and sellers, and the cost of marketing.

The most common market channels for agricultural produce are direct marketing, wholesale markets, and retail markets. Direct marketing involves selling the produce directly to consumers, either at farmers’ markets or through online channels. Wholesale markets are where farmers sell their produce to intermediaries, such as wholesalers and retailers. Retail markets are where consumers buy produce from retailers.

The market prices for agricultural produce can fluctuate significantly, depending on a number of factors, such as supply and demand, weather conditions, and the cost of production. Farmers need to be aware of these fluctuations and be prepared to adjust their prices accordingly.

Market regulations can also have a significant impact on the marketing of agricultural produce. These regulations can cover a range of issues, such as food safety, labeling, and packaging. Farmers need to be aware of these regulations and comply with them in order to sell their produce.

Market research is essential for farmers who want to understand the market for their produce and identify opportunities to increase sales. Market research can help farmers to understand the needs of their customers, the competition, and the pricing trends.

Conclusion

The storage, transport, and marketing of agricultural produce are complex and challenging tasks. Farmers need to be aware of the key issues in each area in order to be successful. By taking the time to understand these issues, farmers can improve their chances of selling their produce at a profit.

What is the best way to store agricultural produce?

The best way to store agricultural produce depends on the type of produce. Some produce, such as fruits and vegetables, should be stored in a cool, dark place. Other produce, such as meat and Dairy, should be stored in the refrigerator or freezer.

How is agricultural produce transported?

Agricultural produce is transported in a variety of ways, depending on the type of produce and the distance it needs to be transported. Some produce, such as fruits and vegetables, is transported by truck. Other produce, such as meat and dairy, is transported by airplane.

How is agricultural produce marketed?

Agricultural produce is marketed in a variety of ways, depending on the type of produce and the target market. Some produce, such as fruits and vegetables, is marketed through grocery stores. Other produce, such as meat and dairy, is marketed through farmers markets and specialty stores.

What are the challenges of storing, transporting, and marketing agricultural produce?

The challenges of storing, transporting, and marketing agricultural produce include:

  • Maintaining the quality of the produce
  • Preventing the spread of pests and diseases
  • Meeting the demands of consumers
  • Dealing with the effects of Climate Change

What are the latest innovations in the storage, transport, and marketing of agricultural produce?

The latest innovations in the storage, transport, and marketing of agricultural produce include:

  • The use of new technologies, such as blockchain, to track the movement of produce
  • The development of new packaging materials that extend the shelf life of produce
  • The use of new marketing strategies to reach consumers

What are the future trends in the storage, transport, and marketing of agricultural produce?

The future trends in the storage, transport, and marketing of agricultural produce include:

  • The increasing use of technology to improve efficiency and reduce costs
  • The growing demand for sustainable practices
  • The increasing importance of online marketing

Question 1

Which of the following is not a factor that affects the storage of agricultural produce?

(A) Temperature
(B) Humidity
(C) Light
(D) Soil type

Answer
(D) Soil type is not a factor that affects the storage of agricultural produce. The other three factors, temperature, humidity, and light, are all important factors that can affect the quality of agricultural produce during storage.

Question 2

Which of the following is the most common method of transporting agricultural produce?

(A) Truck
(B) Train
(C) Ship
(D) Airplane

Answer
(A) Truck is the most common method of transporting agricultural produce. This is because trucks are able to transport produce over long distances quickly and efficiently.

Question 3

Which of the following is the most important factor in marketing agricultural produce?

(A) Price
(B) Quality
(C) Availability
(D) Packaging

Answer
(B) Quality is the most important factor in marketing agricultural produce. This is because consumers are willing to pay more for high-quality produce.

Question 4

Which of the following is not a type of agricultural produce?

(A) Fruits
(B) Vegetables
(C) Grains
(D) Meat

Answer
(D) Meat is not a type of agricultural produce. The other three Options, fruits, vegetables, and grains, are all types of agricultural produce.

Question 5

Which of the following is the most important factor in determining the price of agricultural produce?

(A) Supply
(B) Demand
(C) Cost of production
(D) Government subsidies

Answer
(A) Supply is the most important factor in determining the price of agricultural produce. This is because the price of agricultural produce is determined by the interaction of supply and demand.

Question 6

Which of the following is the most common type of agricultural marketing?

(A) Direct marketing
(B) Wholesale marketing
(C) Retail marketing
(D) Export marketing

Answer
(A) Direct marketing is the most common type of agricultural marketing. This is because direct marketing allows farmers to sell their produce directly to consumers, which can often result in higher prices.

Question 7

Which of the following is the most important factor in determining the quality of agricultural produce?

(A) Variety
(B) Climate
(C) Soil type
(D) Pest control

Answer
(D) Pest control is the most important factor in determining the quality of agricultural produce. This is because pests can damage crops and reduce their quality.

Question 8

Which of the following is the most important factor in determining the availability of agricultural produce?

(A) Season
(B) Climate
(C) Soil type
(D) Pest control

Answer
(A) Season is the most important factor in determining the availability of agricultural produce. This is because different crops are grown in different seasons.

Question 9

Which of the following is the most important factor in determining the packaging of agricultural produce?

(A) Durability
(B) Appearance
(C) Cost
(D) Convenience

Answer
(A) Durability is the most important factor in determining the packaging of agricultural produce. This is because packaging must protect the produce from damage during transportation and storage.

Question 10

Which of the following is the most important factor in determining the safety of agricultural produce?

(A) Pesticides
(B) Herbicides
(C) Fungicides
(D) Rodenticides

Answer
(A) Pesticides are the most important factor in determining the safety of agricultural produce. This is because pesticides can be harmful to humans if they are not used properly.