Page 188 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Indian Economic Policy

Notes • Judging from these considerations, the position of agricultural marketing in India is still
deplorable. The Indian farmer does not have facilities for storing his produce.
• The purpose of a regulated market is to eliminate unhealthy market practices, to reduce
marketing charges and to ensure fair prices and in general, to protect the interests of farmers.
• Before l954, separate co-operative marketing societies were established as distinct from the co-
operative credit societies. Since 1954. however-multipurpo se societies have been started with
the purpose of giving credit to the farmers and marketing their surplus produce.
• In some of the Western countries, co-operative marketing has been extremely successful. Denmark
has been well-known throughout the world for co-operative marketing of dairy products.
• The National Agricultural Co-operative Marketing Federation of India Ltd. (NAFED) is the
apex, co-operative organisation at the national level; it deals in procurement, distribution, export
and import of selected agricultural commodities.
• NCDC has actively promoted distribution of essential consumer articles such as foodgrains,
sugar, edible oils, controlled cloth, kerosene, salt, soft coke, etc, in rural areas through service
cooperatives.
• After independence there was a general feeling that agricultural markets do not function in an
efficient manner. There exist inefficiencies in distribution, including wastage of agricultural produce.
• Earlier agricultural market (mandi) could be established under the Act, where market committee
is constituted by elections, where majority of the members are farmers a few members from the
trading community Would be there.
• In the earlier Acts, though different types of agricultural markets are allowed to be established,
but there was no provision of establishment of private markets.
• The reasons for failure of contract farming have been mainly in the design and the management
of the projects by the companies and their partner institutions.
14.5 Key-Words

1. Rural Credit : Rural credit is a small amount of money which give to the poor peopls including
small scale farmers and unemployed person as loan to start there own work by
development banks or any other finencial institutions.
2. Marketing : The action or business of promoting and selling products or services.
14.6 Review Questions

1. What do you mean by rural credit? Discuss the various sources of Rural Credit?
2. Write a short note on the rural co-operative movement.
3. Discuss the working and functions of Nabard.
4. Explain the rural and agricultural marketing. What are the basic facilities needed for agricultural
marketing?
Answers: Self-Assessment

1. (i)(c) (ii)(b) (iii)(b) (iv)(a)
14.7 Further Readings

1. The Indian Economy; S.K. Ray; Prentic, Hall of India Private Limited
New Delhi - 110001.
2. Indian Economy; Gaurav Datt and Aswani Mahajan; S. Chand and Company
LTD. Ram Nagar, New Delhi-110055.

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