Agriculture remains the backbone of India’s economy, employing millions and feeding the vast population. Effective marketing is crucial for the prosperity of this sector, ensuring fair prices for farmers and accessibility for consumers. The agriculture industry in India reached INR 90,215.8 Billion in 2023. The market is expected to reach INR 227,059.9 Billion by 2032, exhibiting a growth rate (CAGR) of 10.5% during 2024-2032 (MARC)
Agricultural marketing in India is crucial for several reasons:
- Â Â Â Economic Growth: It contributes significantly to the GDP and employs a large portion of the population, especially in rural areas.
-    Income Generation: Effective marketing channels ensure fair prices for farmers’ produce, leading to increased income and improved living standards.
- Â Â Â Food Security: Efficient marketing helps in the distribution of food from surplus regions to deficit regions, ensuring food security across the country.
-    Integration with Global Markets: Agricultural marketing facilitates integration with global markets, allowing farmers to access international     markets and earn foreign exchange.
-    Value Addition: It enables value addition to agricultural products through processing, packaging, and branding, thereby increasing their market value and competitiveness.
- Â Â Â Stabilizing Prices: Effective marketing strategies help in stabilizing prices by reducing fluctuations and ensuring a steady supply of agricultural products in the market.
Here’s a statistical glimpse into agriculture marketing in India:
Market Infrastructure
India boasts a vast network of agricultural markets, with over 7,000 regulated wholesale markets and numerous rural haats (local markets). The Agricultural Produce Market Committee (APMC) regulates most wholesale markets, facilitating transactions between farmers and traders.
Market Arrival
Every day, millions of tonnes of agricultural produce arrive at these markets. According to MARC India’s total market arrivals include approximately 300 million tonnes of fruits and vegetables, 100 million tonnes of cereals, and 150 million tonnes of horticultural produce annually.
 Market Committees
There are around 2,500 APMC-regulated wholesale markets across the country. These committees play a crucial role in setting guidelines for trading, ensuring fair practices, and resolving disputes.
However, the sector faces numerous challenges, including fragmented markets, lack of infrastructure, and low bargaining power for farmers. To address these issues and empower farmers, the Indian government has implemented various schemes in agricultural marketing. These schemes aim to streamline market operations, provide better price realization for farmers, and enhance overall market efficiency.
E-NAM (National Agriculture Market)
One of the flagship schemes in agricultural marketing, e-NAM, was launched in 2016 with the objective of creating a unified national market for agricultural commodities. Through an online platform, e-NAM enables farmers to sell their produce directly to buyers across different states, eliminating intermediaries and reducing transaction costs. The scheme promotes transparency, fair pricing, and access to a wider market for farmers, thereby enhancing their income.
Market Infrastructure Development
Recognizing the importance of infrastructure in agricultural marketing, the government has initiated schemes such as the Agricultural Marketing Infrastructure (AMI) and the Agri-Market Infrastructure Fund (AMIF). These schemes aim to develop and upgrade market yards, cold storage facilities, warehouses, and other essential infrastructure across the country. By improving infrastructure, these schemes facilitate better storage, transportation, and marketing of agricultural produce, reducing post-harvest losses and ensuring higher returns for farmers.
Price Support Schemes
To protect farmers from price fluctuations and ensure minimum support prices (MSPs) for their produce, the government implements various price support schemes. One such scheme is the Price Support Scheme (PSS), which involves government procurement of agricultural commodities at MSPs directly from farmers. Additionally, the Market Intervention Scheme (MIS) aims to stabilize prices by intervening in markets during times of distress, thereby providing relief to farmers and ensuring price stability in the market
Agricultural Marketing Information Network (AGMARKNET)
AGMARKNET is a unique initiative that provides real-time market information to farmers, traders, and policymakers across the country. Through this network, farmers can access data on prices, arrivals, and trends in agricultural markets, enabling them to make informed decisions regarding crop selection, timing of sales, and choice of markets. By enhancing market transparency and efficiency, AGMARKNET empowers farmers to negotiate better prices for their produce and optimize their marketing strategies.
Rashtriya Krishi Vikas Yojana (RKVY)
Supports states in their efforts to increase agriculture productivity and income by providing grants for various activities including marketing infrastructure development.
Agricultural Marketing and Agri–Business (AMAB) Scheme
Focused on promoting agricultural marketing infrastructure and agribusiness development through grants and subsidies.
Farmer Producer Organizations (FPOs)
To promote collective marketing and bargaining power among farmers, the government encourages the formation of Farmer Producer Organizations (FPOs) through schemes like the Formation and Promotion of Farmer Producer Organizations (FPO) scheme. FPOs enable small and marginal farmers to pool their resources, access markets collectively, and engage in value addition activities. By strengthening the collective voice of farmers, FPOs play a crucial role in enhancing their market access and negotiating power.
Conclusion
Schemes in agricultural marketing play a crucial role in empowering farmers, improving market efficiency, and ensuring better price realization for agricultural produce in India. By leveraging technology, strengthening infrastructure, providing price support, and promoting market reforms, these schemes aim to address the challenges faced by farmers and facilitate their integration into modern agricultural markets.
However, effective implementation, monitoring, and evaluation of these schemes are essential to maximize their impact and achieve sustainable growth in the agricultural sector. With continued government support and stakeholder collaboration, India’s agricultural marketing ecosystem can undergo transformational change, benefiting millions of farmers and contributing to the country’s economic development.
Overall, agricultural marketing is essential for the growth and sustainability of India’s agricultural sector, as well as for ensuring food security and economic development.
