What are the main constraints in transport and marketing of agricultural produce in India?. (UPSC IAS Mains 2020 General Studies Paper – 3)
Agriculture contributes about 17% to India’s GDP and it is the primary source of livelihood for more than 55% of India’s population. Indian farmerstoday can sell their produce at the local market, APMC (Agricultural Produce Market Committee) mandis or to the government at the minimum support price (MSP). But still those traditional mechanisms are not improving the farmers’ income. So as to double farmers income and to provide sustainable livelihood, effective transportation and marketing of agricultural produce is crucial.
Constraints in Transport
- Poor rural connectivity to markets.
- Poor supply chain development.
- Lack in warehousing and cold storage facilities especially in the rural areas where agricultural commodities are being produced.
- Poor vehicle design or non-availability of cold chain vehicles that transport perishable agricultural produce.
Constraints in Marketing
- High logistical cost.
- Lack of formal agricultural market.
- Lack of packaging, grading and measurement facility.
- Stringent commodity transfer control at the state level
- Lack of national market development
- Lack of technology integration in the market mechanism
- Low marketable surplus for agricultural goods.
- Malpractices in the market and lack of market information.
The problem for transport and marketing of agricultural produce do not only result in wastage of product and loss of efficiency but also have a very large impact on equitable distribution and inclusive growth by depriving by reducing the returns for smaller farmers.
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