Page 183 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 14: Rural Credit and Marketing

Department. Grading will not only help the societies to secure better prices for their produce but also Notes
induce them to bring pressure upon their members to improve the quality of their products through
the use of improved seeds, etc.
Fifthly, the co-operative marketing societies are going for their own storage and warehousing facilities
in the rural areas and “mandis.” This may be promoted trough the provision of grants and subsidies
by the Government or through cheap finance provided by the State Bank and the Reserve Bank of
India.
Sixthly, the area of operation of the co-operative marketing society should be expanded to cover
many villages (if necessary, even a tehsil) so that it may render effective marketing service to the
farmers. This will also enable it to engage qualified men to manage its affairs.
Seventhly, there is very great scope for co-operative marketing societies to supply inputs to their
members, such as fertilisers, certified quality seeds, agricultural machinery and implements, pesticides
etc. Nearly 47 per cent of the total fertilisers distributed in the country are sold through co-operative
marketing societies.
Finally, the government should use the co-operative marketing societies whenever it is possible and
necessary. The Food Corporation of India should buy foodgrains from the co-operative marketing
societies and thus eliminate the usual channels of trade. This will encourage the formation of
cooperative marketing societies.
Government and Agricultural Marketing

Let us consider the various measures which the Government has taken so far in the field of agricultural
marketing.
(i) Marketing Surveys : In the first place the government has undertaken marketing surveys of
various goods and has published these surveys. These surveys have brought out the various
problems connected with the marketing of goods and have made suggestions for their removal.
The Government gives vide publicity to prices of agricultural goods in all major markets.
(ii) Grading and Standardisation : The government has done much to grade and standardise many
agricultural goods, Under the Agricultural Produce (Grading and Marketing) Act, 1937 the
government has set up grading stations for commodities like ghee, flour, eggs, etc. To facilitate
grading, standards have been laid down for 162 agricultural and allied commodities. The graded
goods are stamped with the seal of the Agricultural Marketing Department--AGMARK. The
‘Agmark’ goods have a wider market and command better prices.
A Central Quality Control Laboratory has been set up at Nagpur and eight other regional
laboratories in different parts of the country with the purpose of testing the quality and purity
of agricultural products applying for the Government’s ‘Agmark’ have been created. The
Government is further streamlining quality control enforcement and inspection and
improvement in grading. The number of testing laboratories is being increased and the
programme of grading at producers’ level is receiving greater attention especially for commercial
crops.
(iii) Setting up of regulated markets : A very important measure which the Government has taken
to improve agricultural marketing has been the setting up of regulated markets in the country.
There are now 7,062 regulated markets. With the establishment of these regulated markets, the
malpractices in mandis have disappeared and the market charges have been rationalised. As
much as 80 per cent of agricultural produce is now sold in regulated markets.
(iv) Provision of Warehousing Facilities : To prevent distress sale by the farmers, particularly, the
small and marginal farmers, due to prevailing low prices, rural godowns have been set up. The
government has done much to provide warehousing in towns and villages. The Central
Warehousing Corporation was set up in 1957 with the purpose of constructing and running
godowns and warehouses for the storage of agricultural produce. The States have set up the
State Warehousing Corporations with the same purpose. At present the Food Corporation is
constructing its own network of godowns in different parts of the country.

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