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National Agriculture Policy

Agriculture Marketing :

Marketing of agricultural commodity is inextricably related to its production. But the Department of Agricultural Marketing (DAM) remains as the weakest of all the existing organizations in the agriculture sector. Markets for agricultural commodities are generally under middle-men’s control, which is very discouraging for the farmers. This is not at all favorable for boosting agricultural production. To develop agricultural marketing system, following steps will be taken by the government:

• Proper marketing network will be established to facilitate timely marketing of agricultural commodities. To this end, development programs will be taken up to promote processing of agricultural commodities and ensure fair prices of crops to both the growers and the consumers.
• The Department of Agricultural Marketing will be restructured with the provision of required manpower for its smooth functioning. A separate institution named ‘Agriculture Price Commission’ will be established for preparing adequate marketing programs, giving proper guidelines and implementation of marketing activities along with strengthening of the DAM.

In preparing marketing programs the following points will be taken into consideration:

• Crops will be stored and preserved in proper conditions to ensure their uninterrupted supplies throughout the year as well as to cope with the over production of crops. The use of any harmful chemical in this process will be controlled.
• Timely supply of right quantities of crops at right places will be ensured through the development of transportation system.
• Processing facilities will be developed to reduce wastage of rapidly perishable crops, increase utility and maintain quality of agricultural commodities.
• Export of agricultural commodities will be increased through grading and standardization. Also, to increase local consumption of such crops, necessary measures will be taken for grading, standardization, labeling and quality development according to consumers’ taste and preference and food value.
• Efficiency and effectiveness of marketing programs will be improved through proper development of market places and related physical infrastructure.
• Market related information would be supplied to the farmers, traders and consumers through strengthening of market information service.
• Consumers/users, traders and processors will be informed about the production, utilization and processing technology, etc. of new crops.
• Necessary assistance will be provided in solving marketing problems at the government and non-government levels by establishing marketing database and analyzing the data.
• Agricultural Commodity Market Control Act of 1964 (revised in 1985) will be updated and implemented.
• To ensure fair prices of crops, measures will be taken to establish linkage among the producers, traders, exporters and processors through ‘contract sale’ of crops.
• Self-motivated cooperative marketing system will be encouraged.
• Necessary output price supports will be provided and food grain procurement will be strengthened in order to ensure fair price of crops during the harvesting season and to stabilize price when any crop damage or over production occurs.