Role of marketing institutions in development of agricultural marketing

1. ROLE OF MARKETING INSTITUTIONS IN DEVELOPMENT OF
AGRICULTURAL MARKETING
Marketing institutions
• The term marketing institutions can be considered to embrace a wide range of
organizations, including associations of farmers, traders, and others in the value
chain, as well as cooperatives and government marketing agencies
• They involves one or more of the marketing functions
• Institution involved in agricultural marketing are, individuals, cooperative, corporate
and government institutions
Roles Of Marketing Institutions
• Framing rules and regulations for the protection of the interest of some sections of
the population. These may relate to the grant or restriction of monopolies, restriction
on the activities of traders, licensing and market regulation.
• Establishment of organizations, to provide services to the farmers for performing
certain marketing functions.
• Promotion of farmers cooperative societies for agricultural marketing and agro
processing
• Creating of market infrastructure such as storage and warehousing, transportation
and communication facilities, credit facility, grading and standardization
• Administration of prices at different levels of marketing- guaranteeing minimum
support prices to producers, providing commodities at fair prices to consumers, and
fixing the rates of commission charged by commission agents
• Influencing supply and demand by regulating import, internal procurement and
distribution
PUBLIC SECTOR INSTITUTIONS
1. Directorate of Marketing and Inspection (DMI)
2. Commission for Agricultural Costs and Prices (CACP)
3. Food Corporation of India (FCI)
4. Jute Corporation of India (JCI)
5. Cotton Corporation of India (CCI)
6. Specialized Commodity Board(Rubber Board , Tea Board , Coffee Board , Spices
Board , Coconut Development Board, Tobacco Board , Cardamom Board, Coir Board,
National Horticultural Board ,National Dairy Development Board)
7.Warehousing Corporation ( CWC, SWC)

2. 8. State Trading Corporations (STC)
9. Agricultural and Processed Food Export Development Authority (APEDA)
10. Marine Products Export Development Authority (MPEDA)
11. Export Inspection Council
12. Silk Export Promotion Council (SEPC)
Cashew Export Promotion Council of India (CEPCI)
13.Agricultural Produce Market Committees (APMC)
14. National Council of State Agricultural Marketing Boards (COSAMB)
COOPERATIVE SECTOR INSTITUTIONS
• National Cooperative Development Corporation (NCDC)
• National Agricultural Cooperative Marketing Federation (NAFED)
• National Cooperative Tobacco Growers Federation (NTGF)
• National Consumers Cooperative Federation (NCCF)
• Tribal Cooperative Marketing Federation(TCMF)
• State Cooperative Marketing Federations(SCMF)
• Primary Agricultural Cooperative Marketing Societies (PACS)
• Special Commodity cooperative Marketing Organizations (Sugarcane, Cotton, Milk)
ASSOCIATIONS
Formal or Informal
• 1. Traders Associations
• 2. Processors Associations
• 3. Market Labour Associations
Directorate of Marketing and Inspection (DMI)
• The Directorate of Marketing and Inspection (DMI), was set up in the year 1935. it is
assigned task of Agricultural Produce (Grading and Marketing) Act, 1937; Cold
Storage Order, 1980 and Meat Food Products Order, 1973 to implement the
agricultural marketing policies and programmes for the integrated development of
marketing of agricultural and other allied produce in the country with a view to
safeguard the interests of farmers as well as the consumers.
• The Directorate is headed by Agriculture Marketing Adviser to Government of India .

3. • Head Office is located at Faridabad (Haryana), Branch Head Office at Nagpur
(Maharashtra).
• 11 Regional Offices/ Sub-Offices headed by Agricultural Marketing Advisers at Delhi,
Mumbai, Chennai, Kolkata, Hyderabad, Chandigarh, Jaipur, Lucknow, Bhopal, Kochi
and Guwahati and the Central Agmark Laboratory at Nagpur
FUNCTIONS
• 1.Rendering advice on regulation, development and management of agricultural
produce markets of the States/Union Territories;
• 2.Promotion of Standardization and Grading of agricultural and allied produce under
the Agricultural Produce (Grading & Marking) Act, 1937
• 3.Development and Implementation of Agricultural Marketing Research and
Information Network(MRIN) scheme
• 4.Promotion and Implementation of Rural Go down
• 5.Implementation of Agricultural Marketing Infrastructure Grading and
Standardization scheme
• 6.Training of personnel in agricultural marketing
• 7.Marketing Extension
COMMISSION FOR AGRICULTURAL COSTS AND PRICES (CACP)
• The Agricultural Prices Commission was set up in January, 1965 to advise the
Government on price policy of major agricultural commodities } Since March 1985,
the Commission has been known as CACP
• 1980- CACP recommending 2 sets of prices Minimum Support Price and
procurement prices
• Aims at evolving balanced and integrated price structure taking into account overall
needs of the economy and with due regards to the interest of both the groups
• It is ,one of the largest public sector, setup in January 1965. The Food Corporation of
India was setup under the Food Corporation's Act 1964 , in order to fulfill following
objectives of the Food Policy, Effective price support operations for safeguarding the
interests of the farmers.
• Distribution of food grains throughout the country for public distribution system.
Maintaining satisfactory level of operational and buffer stocks of food grains to
ensure National Food Security
JUTE CORPORATION OF INDIALtd
• The Jute Corporation of India Ltd. (JCI) was set up in 1971 as an official agency by
the Government of India with the aim to provide minimum support price (MSP) to the

4. jute cultivators and also work as a helping hand in the raw jute sector. Headquarters
Kolkata ,West Bengal, India
COTTON CORPORATION OF INDIA
• Headquarters - Mumbai
• Cotton Corporation of India is a Government of India agency engaged in diverse
activities related to trade, procurement, and export of cotton. CCI is a public sector
agency responsible for equitable distribution of cotton among the different
constituents of the industry and aid imports of cotton. Established in 1970 under
Companies Act 1956
COMMODITY BOARDS
• Commodity boards are essentially the producer controlled organizations with
government support and authority over a broad range of functions starting with
production , processing and marketing of the crops. } These works under the ministry
of commerce } These are mainly confined to plantation and commercial crops } They
promote both internal and external trade of the commodity
• State Govt. has little control over it
TEABOARD
• It is established under the Tea Act of 1953. } It advances loans and subsidies for
extension, planting , replanting and refilling besides exploring the possibilities in non-
traditional areas and assisting small growers } The board deals with export promotion
, market intelligence and participation in fairs and exhibitions.
• Station- Kolakata, West Bengal
COFFEE-BOARD
• The Indian Coffee market Expansion Board was set up on December 21, 1940 under
Coffee Market Expansion Act.
• Station- Coorg, Karnataka
The main functions are
• Promotion of sale and consumption of India and else where of Indian Coffee
Promotion of agricultural and technological research in the interest of coffee industry and
assistance to coffee estates for their development
RUBBER BOARD
 It is established under the Rubber Board Act 1947 in Kottayam, Kerala.
 Its main functions are to conduct research and training programmes in production
and marketing of rubber, extension services and to plan for the welfare plantation
workers.

5. TOBACCO BOARD
 It was established on 1st January,1976 under the Tobacco Board Act 1975.
 Its main functions are regulation of production and marketing of Virginia
tobacco , ensuring remunerative prices to growers
Coconut Development Board (CDB)
Coconut Development Board (CDB) is a statutory body established under the Ministry of
Agriculture, Government of India for the integrated development of coconut cultivation and
industry in the country with focus on productivity increase and product diversification.
 The Board which came into existence on 12th
January 1981, functions under the
administrative control of the Ministry of Agriculture and Farmers Welfare,
Government of India, with its Headquarters at Kochi in Kerala and Regional
Offices at Bangalore in Karnataka, Chennai inTamilnadu, Guwahati in Assam
and Patna in Bihar.
 The Board has 12 Demonstration cum Seed Production (DSP) Farms in different
locations of the country and now 10 farms are maintained. A Market Development
cum Information Centre has established in Delhi. The Board has set up a Technology
Development Centre at Vazhakulam near Aluva in Kerala and a Field office at
Thiruvananthapuram in Kerala.
SPICES BOARD
• it was established din 1987 under the Spices Board Act 1986 at Cochin .
The main objectives are to
• To improve the production quality of spices and to export to earn foreign exchange
The spice board presently includes 52 different spice crops.
CARDAMOM BOARD
• The Cardamom Board was established in the year 1966 under the ministry of
commerce. } The main functions are to develop various promotional activities such as
extension of plantations , improvement in the quality of cardamom and increasing
productivity of cardamom estates.
COIR BOARD
 Coir Board was set up in 1953 under Coir Board Industries Act , 1953.
 The Coir Board Research Institute was established at Allepey for conducting
research on different aspects of Coir industry .
SILK BOARD

6.  The Silk Board was set up in the year 1949 under Centarl Silk Board Act, 1949 in
Bangalore.
 The main activities of the board include development of silk industry , export-import
of raw silk increasing the production of silk and help in training and research for silk
industry.
NATIONAL HORTICULTURAL BOARD
It was set up by the Govt. of India in the year 1984 under the Societies Registration Act. The
main objectives are
 To promote development of horticulture industry in the country .
 To help in coordinating , stimulating and sustaining the production and processing of
fruits and vegetables.
 To establish sound infrastructure in the field of production processing and marketing
with a focus on post harvest management to reduce losses.
 To provide market information and build database in horticulture.
 To provide technological , financial and other assistance to various market
organizations.
NATIONAL DAIRY DEVELOPMENT BOARD
• It was established in the year 1965, for providing facilities for increasing the
production and marketing of milk and promotion of dairy industry in the country,
through an Act of Parliament at Anand (Gujarat).
• It provides market support to the producers of milk in rural areas and in instrumental
supply of liquid milk and dairy products to urban consumers at reasonable prices.
• It also has been instrumental in setting up of infrastructure facilities for milk
processing , transportation and marketing of milk and milk products throughout the
country
TAMILNADU CO-OP MILK PRODUCERS FEDERATION LIMITED (TCMPF)
• Registered in 1st Feb, 1981 under Diary Development Department.
• Commercial activities such as milk procurement, milk processing, chilling, packing
and sale of milk to consumers .e.g Aavin
• OBJECTIVES
1.Assure a remunerative price for the milk produced by the member through a steady,
stable and well organized market support.
2.Distribution of quality of milk and milk produce to the consumers at reasonable price.
State Trading Corporation of India Ltd. (STC)

7.  It is a premier International trading company of the Government of India engaged
primarily in exports, and imports operations.
 It was set up in 1956 primarily with a view to undertake trade with East European
Countries and to supplement the efforts of private trade and industry in developing
exports from the country
 It undertook price support operations to ensure remunerative prices to growers for
their crops such as raw jute, shellac, tobacco, rubber and vanilla.
 As part of its export development effort, STC extended technical, marketing and
financial assistance to exporters by arranging import of machinery and raw material
for export production, setting up design centers, providing testing laboratories, taking
products of small manufacturers to overseas markets by organizing their consortia,
participation in exhibitions and trade fairs, etc.
Central Warehousing Corporation(CWC)
• A premier Warehousing Agency in India established during 1957 providing logistics
support to the agricultural sector
• CWC is operating 432 Warehouses across the country with a storage capacity of
9.96 million tonnes
• Warehouse Corporation Act, 1962
• Warehousing activities of CWC include foodgrain warehouses, industrial
warehousing, custom bonded warehouses, container freight stations, inland
clearance depots and aircargo complexes.
• It also offers services in the area of clearing & forwarding, handling & transporation,
procurement & distribution, disinfestation services, fumigation services and other
ancillary activities.
Fuctions - acts as agent of Govt. for the purpose of purchase, sale, storage and distribution
of agricultural produce, seeds, manures and fertilizers, agriculural implements and notified
commodities
Agricultural and Processed Food products Export Development Authority (APEDA)
• The Agricultural and Processed Food products Export Development Authority
(APEDA) is an export promotion organization under Ministry of Commerce &
Industries, Government of India, in the year 1986 under the Agricultural and
Processed Food Products Export Authority Act, 1985.
• It is mandated with the responsibility of promotion and development of the export of
its scheduled products. Its head office is located in New Delhi
Objectives
 To maximize foreign exchange through increased agro exports
 To create employment opportunities in rural areas by encouraging value added
exports of farm products.

8.  To implement schemes for providing financial assistance to improve post harvest
facilities to boost their exports.
Marine Products Export Development Authority (MPEDA)
• It was set up in the year 1972 to undertake the promotional work relating to export of
marine products.
• The role of MPEDA includes development of off-shore and deep sea fishing ,
promoting shrimp farming using latest technology , adopting measures required for
diversifying export products and export market modernizing sea food industry
• It is also vested with the responsibility of marine product industry development
Export Inspection Council (EIC)
• The Export Inspection Council (EIC) was set up by the Government of India under
Section 3 of the Export (Quality Control and Inspection) Act, 1963 (22 of 1963), in
order to ensure sound development of export trade of India through Quality Control
and Inspection and for matters connected thereof.EIC is an advisory body to the
Central Government, which is empowered under the Act to:Notify commodities
which will be subject to quality control and/ or inspection prior to export,
• Establish standards of quality for such notified commodities, and
• Specify the type of quality control and / or inspection to be applied to such
commodities.
Indian Silk Export Promotion Council (ISEPC)
The Indian Silk Export Promotion Council (ISEPC) was set up in 1983 as a company not for
profit under Companies Act duly sponsored by the Government of India in the Ministry of
Textiles. The Council as on date has a membership of 853 regular exporters of Silk goods
whereas more than 1800 exporters have registered with the Council. Station- Mumbai,
Maharashtra
Cashew Export Promotion Council of India(CEPC)
• Established by the Government of India in the year 1955, with the active cooperation
of the cashew industry with the object of promoting exports of cashew kernels and
cashewnut shell liquid from India. By its very set up, the Council provides the
necessary institutional frame-work for performing the different functions that serve to
intensify and promote exports of cashew kernels and cashewnut shell liquid.
• The Council provides the necessary liaison for bringing together foreign importers
with member exporters of cashew kernels. The enquiries received from the foreign
importers are circulated amongst Council members. Station- Kollam, Kerala
Agricultural Produce Market Committee (APMC)

9. • Under the Agricultural Produce Market Committee (APMC) Act, 2003, the Agricultural
Produce Market Committee (APMC) is a statutory body constituted by state
government in order to trade in agricultural or horticultural or livestock products in
Karnataka
Functions of APMC
 To promote public private partnership in the ambit of agricultural markets.
 To provide market led extension services to farmer.
 To keep an eye on pricing system and transactions taking place in market in a
transparent manner.
 To ensure payments to the farmers for the sale of agricultural produce on the
same day.
 To promote agricultural activities.
 To announce data on arrivals and rates of agricultural produce from time to time
into the market.
National Council of State Agricultural Marketing Boards (COSAMB)
Marketing of agricultural produce is gaining importance all across the world in general and
developing world in particular. Agricultural marketing policy in India has been characterized
by State participation in production activities; state intervention in procurement and
distribution of food grains; directing agricultural economy through regulatory mechanism
such as licensing and control on movement,storage; creation of facilitating centers in the
form of regulated markets; encouraging co-operative marketing; creation of supporting
infrastructure like storage and warehousing; and construction of link roads, market
information network, marketing extension, etc.
Over the years, to achieve an efficient system of buying, selling, storage and processing of
agricultural commodities most of the State Governments enacted Legislations (Agricultural
Produce Marketing (Regulation & Development) Act’s to provide the regulation for marketing
and establishment of infrastructure for agricultural produce. The establishment of regulated
wholesale markets has helped in creating orderly and transparent market conditions and
also in increasing the access of farmers to such orderly markets.
• New Delhi
National Cooperative Development Corporation(NCDC)
• NCDC is a statutory Corporation set up under an Act of Parliament on 13th March
1963. Objectives of NCDC
• The objectives of NCDC are planning and promoting programmes for production,
processing, marketing, storage, export and import of agricultural produce, foodstuffs,
industrial goods, livestock and certain other notified commodities and services on
cooperative principles
• NCDC promotes and provides financial assistance to cooperatives for following
activities, Marketing & Inputs ,Agro-processing viz. Sugar, Spinning Mills, Ginning &

10. Pressing, Fruit & Vegetables, other small/ medium sized processing units, Storage
,Cold Storages, Power loom, Equipment Finance ,Computerization
National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)
• National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) was
established on 2nd October 1958. NAFED is registered under the Multi State Co-
operative Societies Act
• The state level marketing federations and the National Cooperative Development
Corporation are its members
• NAFED was setup with the object to promote Co- operative marketing of Agricultural
Produce to benefit the farmers
• Agricultural farmers are the main members of NAFED who have the authority to say
in the form of members of the General Body in the working of NAFED
ACTIVITIES
 Internal trade
 Foreign trade- Export and Import of Agricultural Commodities
 Price Support Operations
 Production and marketing of agricultural inputs
 Promotional activities
 Developing cooperative marketing of tribal produce
 Settling of scientific storage system
National Cooperative Consumers’ Federation of India Limited (NCCF)
 National Cooperative Consumers’ Federation of India Limited (NCCF) is the apex
federation of the consumer cooperatives in the country.
 NCCF was set up on 16 October, 1965 and is administered under the Multi State
Cooperative Societies Act 2002.
 The present membership of the NCCF is 136 comprising of Primary Co-op.
Stores, Wholesale Societies, State level Consumer Cooperative Federations,
National Cooperative Development Corporation and the Government of India.
Tamil Nadu Cooperative Marketing Federation Ltd., (TANFED)
• The Tamil Nadu Cooperative Marketing Federation Ltd., popularly known as
"TANFED" commenced its business on 20.2.1959.
• The area of operation is whole of Tamil Nadu except composite Thanjavur and
Nilgiris Districts.
• From the inception (i.e.1959) till June 1976, there was elected board of
Management. Subsequently, from November 1998 to 25.6.2001 TANFED
functioned under the elected Board of Management. Then under the control of
Special Officer upto 16.07.2013. From 17.07.2013 TANFED is functioning under the
elected Board of Management.

11. Functions and Objectives
 To identify the agricultural input requirements of the farmers and arrange for storage
and distribution of Fertilisers, Seeds, Pesticides and Agricultural Implements through
Co-operative outlets.
 To provide market support to the affiliated member Co-operative Marketing Societies
in procuring, storing and marketing of agricultural commodities.
 To provide storage facilities for perishable agricultural commodities and agro-based
products by maintaining cold storage plants.
 To undertake manufacture of agricultural inputs such as granulated fertilisers,
manure mixture and quality seeds.
 To undertake the distribution of kerosene.
 To provide mobile telephone services to farmers through Cooperatives.
Primary Agricultural Co-operative Society (PACS)
• The PACS/LAMPS/FSCS are the bottom-tier of the Short Term Cooperative Credit
Structure functioning at the grassroots (Gram Panchayat) level. These are Primary
Societies owned by farmers, rural artisans etc. and intended to promote thrift and
mutual help among the members; cater to their credit requirements and provide
credit-linked services like input supply, storage and marketing of agricultural produce
etc. These Cooperative Credit Institutions with their wide out-reach in the rural areas
and accessibility to the small and marginal farmers and the other marginalized
populations have been playing a vital role in dispensation of agricultural credit.
Objectives
• To cater to the credit need, mostly, farm credit and income generation activities of
farmers, artisans and other members.
• To extend selected banking services to members.
• To implement Kissan Credit Card Scheme for providing timely and adequate farm
credit to members.
• To take up marketing of agricultural produce of member farmers.
• To cater to the consumer needs, mostly, essential commodities of members.
• To create awareness among farmers to adopt improved farming practices.
• To reach upto the unprivileged section of the community through SHGs, JLGs and
TFGs.
STATE LEVEL MARKETING SOCIETIES OR FEDEARTION
• These are apex institutions for all co-operative marketing in the state. Functions
of State Level Co-operative Marketing Societies:
• They provide credit and other facilities to District Marketing Societies.(DMS)
• They buy and sell products of DMS.
• Wholesale distribution of chemical fertlisers, iron, steel, cement, sugar, wheat,
kerosene, coffeeseeds, rice, milkpowder, etc., in addition to agr. Implements &
insecticides.
• Overall co-ordination of co-operative marketing.

12. Tribal cooperative marketing federation (TRIFED)
• It was established in 1987 to develop the system of marketing of forest produced by
tribals in the country.
• TRIFED arranges marketing & export of minor forests products produced by the
tribals in the tribal dominated areas & protects the tribals from exploitation.
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