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Agricultural marketing statergies for doubling of farmers income


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Agricultural marketing statergies for doubling of farmers income

  2. 2. DOUBLING OF FARMERS’INCOME “I wish to double the income of farmers by 2022 when India will celebrate 75 years of its Independence - Prime Minister while addressing farmers rally at Bareilly (Feb 28, 2016) Budget 2016-17 “We are grateful to our farmers for being the backbone of the country’s food security. We need to think beyond food security and give back to our farmers a sense of income security. Government will, therefore, reorient its interventions in the farm and non-farm sectors to double the income of the farmers by 2022.” -Finance Minister Budget Speech, February 29,2016.
  3. 3. SEVEN STRATERGIES TO DOUBLE FARMERS INCOME  Focus on irrigation along with adequate resource building.  Increase production through improved seeds , planting materials ,organic farming and soil health card .  Strengthening warehousing and cold chain facilities to curb post harvest losses.  Value addition through food processing .
  4. 4.  Allied activities of agriculture like Dairy development, Poultry,Beekeeping, Fisheries, Agro-forestry and Integrated Nutrient Management.  Overcoming deficiencies in agriculture marketing through e-NAM.  Work on institutional loan to reduce risk and growth of agricultural sector.
  5. 5. WHAT IS TO BE DOUBLED?  Income of farmers, not farm incomes only, not the output or the income of the sector or the value added or GDP of agriculture sector.  i.e. Real Income not Nominal Income  Nominal income is the income expressed in money terms and measured in current currency (rupee, dollar etc.)  Real income is income of individuals or nations after adjusting for inflation.  RI = NI – Inflation
  6. 6. MAJOR CHALLENGES AND ISSUES IN AGRICULTURE  High cost & less availability of hybrid seeds.  Lack of short duration high yielding varieties.  High cost of production.  Low storage and processing facilities.  Market fluctuation in cropping and off season.  Imbalance & more use of chemical fertilizer and pesticide.  Productivity of major crops is also low in comparison to national level.  Lack of marketing facility.
  7. 7. E-NAM  National Agriculture Market or eNAM is an online trading platform for agricultural commodities in India.  It was launched by the Ministry of Agriculture on 14 April 2016 by Prime Minister of India.  The Portal is managed by Small Farmers’ Agribusiness Consortium (SFAC).  The market facilitate farmers, traders and buyers with online trading in commodities.  The eNAM markets are proving popular as the crops are weighed immediately and the stock is lifted on the same day and the payments are cleared online.
  8. 8. • The market is helping in better price discovery and provide facilities for smooth marketing of their produce. • The market transactions stood at ₹36,200 crores by January 2018, mostly intra-market. • Over 90 commodities including staple food grains, vegetables and fruits are currently listed in its list of commodities available for trade.
  9. 9. • A national e-market platform for transparent sale transactions and price discovery initially in regulated markets. • Willing States to accordingly enact suitable provisions in their APMC Act for promotion of e-trading by their State Agricultural Marketing Board/APMC. • One license for a trader valid across all markets in the State. • Harmonisation of quality standards of agricultural produce and provision for assaying (quality testing) infrastructure in every market to enable informed bidding by buyers. • Provision of Soil Testing Laboratories in/ or near the selected mandi. OBJECTIVES
  10. 10. Funds Allocation • Cabinet Committee on Economic Affairs had approved a Central Sector Scheme for Promotion of National Agricultural Market through Agri-Tech Infrastructure Fund (ATIF). • The government has allocated ₹200 crores to the newly created ATIF. With this fund SFAC will implement NAM for three years from 2015-16 to 2017-18. Each market is given ₹30 lakhs by the department.
  11. 11. Advantages for various stakeholders • Farmers: They can sell products without the interference of any brokers or middlemen thereby making competitive returns out of their investment. • Traders: Traders will be able to do secondary trading from one APMC to another one anywhere in India. Local traders can get access to the larger national market for secondary trading. • e-NAM aims to improve the marketing aspect of the agriculture sector and it will improve the supply chain of commodities and reduces wastages.
  12. 12. MISSION Integration of APMCs across the country through a common online market platform. VISION To promote uniformity in agriculture marketing by removing information asymmetry between buyers, sellers based on actual demand and supply.
  13. 13. MSP-MINIMUM SUPPORT PRICE • Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. • The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). • MSP is price fixed by Government of India to protect the producer - farmers against excessive fall in price during bumper production years. • The major objectives are to support the farmers from distress sales and to procure food grains for public distribution. Fair and Remunerative Price (FRP) for sugarcane.
  14. 14. Crops covered Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane. The mandated crops are 14 crops of the kharif season, 6 rabi crops and two other commercial crops. • Cereals (7) - paddy, wheat, barley, jowar, bajra, maize and ragi • Pulses (5) - gram,arhar/tur,moong,urad and lentil • Oilseeds (8) - groundnut, rapeseed/mustard,toria,soyabean, sunflower seed, sesamum, safflower seed and nigerseed. • Raw cotton • Raw jute • Copra • De-husked coconut • Sugarcane (Fair and remunerative price) • Virginia flu cured (VFC) tobacco.
  15. 15. PRADHAN MANTRI-FASAL BHIMA YOJANA(PMFBY) The Pradhan Mantri Fasal Bima Yojana was launched on 18 February 2016,an insurance service for farmers for their yields. Objectives • To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases. • To stabilise the income of farmers to ensure their continuance in farming. • To encourage farmers to adopt innovative and modern agricultural practices. • To ensure flow of credit to the agriculture sector.
  16. 16.  There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops.  In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.  PMFBY is a replacement scheme of NAIS.
  17. 17. PRADAN MATHRI KISAN SAMMAN NIDHI YOJANA  PM KISAN is a Central Sector scheme with 100% funding from Government of India  It has become operational from 1.12.2018.  Under the scheme an income support of Rs.6000/- per year in three equal instalments will be provided to small and marginal farmer families having combined land holding/ownership of upto 2 hectares.  State Government and UT Administration will identify the farmer families which are eligible for support as per scheme guidelines.  The fund will be directly transferred to the bank accounts of the beneficiaries.
  18. 18. EXCLUSION CATEGORIES  All Institutional Land holders.  Former and present holders of constitutional posts.  All serving or retired officers and employees of Central/ State Government Ministries /Offices/Departments.  Former and present Ministers/ State Ministers and former/present Members of LokSabha/ RajyaSabha/ State Legislative Assemblies
  19. 19. FARMER PRODUCERS ORGANISATION(FPO)  Collectivization of producers, especially small and marginal farmers into producer organizations.  It has emerged as one of the most effective pathways to address the many challenges of agriculture.  Less investments , improved technology and inputs and markets.  Coconut is top priority and pomegranate the least.  40,000 hectares of potatoes in Karnataka are tie-up with ITC(which manufactures Bingo) and Pepsi (Lays) can take care of our entire potato crop.
  20. 20.  Department of Agriculture and Cooperation (DAC),Ministry of Agriculture, Government of India launched Farmer Producer Organisations (FPOs).  During 2011-12, in partnership with state governments, which was implemented through the Small Farmers Agribusiness Consortium (SFAC).  The organisation involved the mobilisation of approximately 2.50 lakh farmers into 250 FPOs (each with an average membership of 1000 farmers) across the country, under scheme of the Rashtriya Krishi Vikas Yojana (RKVY).
  21. 21. OBJECTIVES  Mobilising farmers into groups of between 15-20 members at the village level.  Strengthening farmer capacity through agricultural best practices for enhanced productivity.  Ensuring usage of quality inputs and services for intensive agriculture.  Facilitating fair and remunerative markets including linking of producer groups to marketing opportunities.
  22. 22. SERVICES
  23. 23. GOVERNMENT INTERVENTION  Government : 90 lakhs per permanent structures like cold storage.  Small Farmers Agriculture-Business Consortium (SFAC) will give grant of Rs 10 lakh.  NABARD is committed to give each FPO Rs 5 lakh.
  24. 24. CHALLENGES  Raising share capital is the main challenge.  Difficulty in convincing government.  To mobilize farmers into community organizations is very big task.  It requires very high skills to convince individual producers / growers to form organizations.  Legal and technical knowledge about Acts and Regulations.
  26. 26. Contract farming  It involves agricultural production being carried on the basis of an agreement between the buyer and farm producers.  The farmer undertakes to supply agreed quantities of a crop or livestock product.  In return, the buyer, usually a company, agrees to buy the product, often at a price that is established in advance.  Company also supports by providing inputs.
  28. 28. SUBMITTED BY, SANJAY H B AG/PG/0017/19 HARISH J AG/PG/0020/19 SIDDESH S H/PG/002/19