Page 304 - DMGT509_RURAL MARKETING

Unit 15: Marketing of Agricultural Produce

for different kinds of agricultural products will be created in the production areas or Notes
nearby places particularly in the rural areas so that the farmers can transport their produce
to these places immediately after harvest in shortest possible time. The establishment of
cold chains, provision of pre cooling facilities to farmers as a service and cold storage in
the terminal markets and improving the retail marketing arrangements in urban areas
will be given priority. Upgradation and dissemination of market intelligence will receive
particular attention.
Setting up of agro-processing units in the producing areas to reduce wastage, especially of
horticultural produce, increased value addition and creation of off-farm employment in
rural areas will be encouraged. Collaboration between the producer co-operatives and
the corporate sector will be encouraged to promote agro-processing industry. An interactive
coupling between technology, economy, environment and society will be promoted for
speedy development of food and agro-processing industries and to build up a substantial
base for production of value added agro-products for domestic and export markets with a
strong emphasis on food safety and quality. The Small Farmers Agro Business Consortium
(SFAC) will be energized to cater to the needs of farmer entrepreneurs and promote
public and private investments in agri-business.

Indian agriculture is characterized by predominance of small and marginal farmers.
Institutional reforms will be so pursued as to channelise their energies for achieving
greater productivity and production. The approach to rural development and land reforms
will focus on the following areas:
1. Consolidation of holdings all over the country on the pattern of north western
States.
2. Redistribution of ceiling surplus lands and waste lands among the landless farmers,
unemployed youth with initial start up capital.
3. Tenancy reforms to recognize the rights of the tenants and share croppers.
4. Development of lease markets for increasing the size of the holdings by making
legal provisions for giving private lands on lease for cultivation and agri business.
5. Updating and improvement of land records, computerization and issue of land
passbooks to the farmers.

6. Recognition of women’s rights in land.
The rural poor will be increasingly involved in the implementation of land reforms with
the help of Panchayati Raj Institutions, Voluntary Groups, Social Activists and Community
Leaders.
Private sector participation will be promoted through contract farming and land leasing
arrangements to allow accelerated technology transfer, capital inflow and assured markets
for crop production, especially of oilseeds, cotton and horticultural crops.
Progressive institutionalization of rural and farm credit will be continued for providing
timely and adequate credit to farmers. The rural credit institutions will be geared to
promote savings, investments and risk management. Particular attention will be paid to
removal of distortions in the priority sector lending by Commercial Banks for agriculture
and rural sectors. Special measures will be taken for revamping of co-operatives to remove
the institutional and financial weaknesses and evolving simplified procedure for sanction
and disbursement of agriculture credit. The endeavour will be to ensure distribution
equity in the disbursement of credit. Micro-credit will be promoted as an effective tool for
alleviating poverty. Self Help Group and Bank linkage system, suited to Indian rural
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