Model Answer
0 min readIntroduction
India’s agricultural sector, contributing approximately 18.8% to the national GDP (2022-23), faces significant challenges in efficiently moving produce from farms to consumers. Despite advancements in production, substantial losses occur due to inadequate transport and marketing infrastructure. These constraints not only reduce farmers’ income but also impact food security and overall economic growth. The fragmented nature of Indian agriculture, coupled with infrastructural deficits, exacerbates these issues, necessitating a comprehensive understanding of the bottlenecks.
Constraints in Transport of Agricultural Produce
The transport of agricultural produce in India is plagued by several issues:
- Inadequate Infrastructure: Rural road connectivity remains poor, especially in hilly and remote areas. According to the Ministry of Rural Development, as of December 2023, 6.8 lakh km of rural roads have been constructed under the Pradhan Mantri Gram Sadak Yojana (PMGSY), but significant gaps remain.
- Lack of Cold Storage Facilities: Perishable goods suffer substantial losses due to the absence of sufficient cold storage capacity. India has a cold storage capacity of approximately 35 million tonnes, which is only enough to store around 10% of the total production.
- Insufficient Refrigerated Transport: The availability of refrigerated trucks and containers is limited, hindering the transportation of perishable items over long distances.
- High Transportation Costs: Fuel prices, toll taxes, and inefficient logistics contribute to high transportation costs, reducing farmers’ profitability.
- Poor Packaging: Inadequate packaging leads to damage and spoilage during transit.
Constraints in Marketing of Agricultural Produce
Marketing agricultural produce faces its own set of challenges:
- Fragmented Markets: The presence of numerous small and fragmented markets leads to price discrepancies and reduces bargaining power for farmers.
- Lack of Market Information: Farmers often lack access to real-time market information regarding prices, demand, and supply, making them vulnerable to exploitation by intermediaries.
- Dominance of Intermediaries: A large number of intermediaries (commission agents, traders) often capture a significant share of the price paid to consumers, reducing farmers’ income.
- Price Volatility: Agricultural commodity prices are highly volatile, exposing farmers to significant risks.
- Inadequate Storage Facilities at Market Yards: Many Agricultural Produce Market Committee (APMC) yards lack adequate storage facilities, leading to distress sales during peak harvest seasons.
- Limited Processing and Value Addition: Insufficient processing and value addition facilities limit the potential for higher returns from agricultural produce.
Government Initiatives
The government has launched several initiatives to address these constraints:
- PM Kisan Samridhi Yojana (PMSY): A scheme to help create storage infrastructure at the farm level.
- e-NAM (Electronic National Agriculture Market): An online trading portal to facilitate transparent price discovery and connect farmers with buyers across the country. Launched in 2016, it currently integrates over 1700 markets.
- Agricultural Infrastructure Fund (AIF): Provides medium- to long-term debt for post-harvest infrastructure and community farming assets.
- Pradhan Mantri Fasal Bima Yojana (PMFBY): Provides insurance coverage to farmers against crop losses due to natural calamities.
- Food Corporation of India (FCI): Plays a crucial role in procurement, storage, and distribution of food grains.
| Constraint | Impact | Government Initiative |
|---|---|---|
| Poor Road Connectivity | Increased transport costs, delays, spoilage | PMGSY |
| Lack of Cold Storage | High post-harvest losses of perishable goods | PMSY, AIF |
| Fragmented Markets | Price discrepancies, reduced farmer bargaining power | e-NAM |
Conclusion
Addressing the constraints in transport and marketing of agricultural produce is crucial for enhancing farmers’ income, ensuring food security, and promoting sustainable agricultural development. While government initiatives like e-NAM and AIF are steps in the right direction, a holistic approach involving improved infrastructure, better market information systems, reduced intermediary involvement, and increased investment in post-harvest infrastructure is essential. Further reforms focusing on strengthening APMCs and promoting farmer producer organizations (FPOs) will be vital for creating a more efficient and equitable agricultural marketing system.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.