Page 305 - DMGT509_RURAL MARKETING

Rural Marketing

Notes sector, will be developed as a supplementary mechanism for bringing the rural poor into
the formal banking system, thereby improving banks outreach and the credit flows to the
poor in an effective and sustainable manner.
The basic support to agriculture has been provided by the co-operative sector assiduously
built over the years. The Government will provide active support for the promotion of
co-operative form of enterprise and ensure greater autonomy and operational freedom to
them to improve their functioning. The thrust will be on:

1. Structural reforms for promoting greater efficiency and viability by freeing them
from excessive bureaucratic control and political interference.
2. Creation of infrastructure and human resource development.

3. Improvement in financial viability and organizational sustainability of co-operatives.
4. Democratisation of management and increased professionalism in their operations.
5. Creating a viable interface with other grass-root organizations.
The Legislative and regulatory framework will be appropriately amended and strengthened
to achieve these objectives.
Despite technological and economic advancements, the condition of farmers continues to
be unstable due to natural calamities and price fluctuations. National Agriculture Insurance
Scheme covering all farmers and all crops throughout the country with built in provisions
for insulating farmers from financial distress caused by natural disasters and making
agriculture financially viable will be made more farmer specific and effective. Endeavour
will be made to provide a package insurance policy for the farmers, right from sowing of
the crops to post-harvest operations, including market fluctuations in the prices of
agricultural produce.
In order to reduce risk in agriculture and impart greater resilience to Indian agriculture
against droughts and floods, efforts will be made for achieving greater flood proofing of
flood prone agriculture and drought proofing of rainfed agriculture for protecting the
farmers from vagaries of nature. For this purpose, contingency agriculture planning,
development of drought and flood resistant crop varieties, watershed development
programmes, drought prone areas and desert development programmes and rural
infrastructure development programmes will receive particular attention.
The Central Government will continue to discharge its responsibility to ensure
remunerative prices for agricultural produce through announcement of Minimum Support
Prices policy for major agricultural commodities. The food, nutrition and other domestic
and exports requirements of the country will be kept in view while determining the
support prices of different commodities. The price structure and trade mechanism will be
continuously reviewed to ensure a favourable economic environment for the agriculture
sector and to bring about an equitable balance between the rural and the urban incomes.
The methodology used by the Commission on Agricultural Costs & Prices (CACP) in
arriving at estimates of costs of production will be periodically reviewed. The price structure
of both inputs and outputs will be monitored to ensure higher returns to the farmers and
bring about cost effectiveness throughout the economy. Domestic market prices will be
closely monitored to prevent distress sales by the farmers. Public and co-operative agencies
undertaking marketing operations will be strengthened.
The Government will enlarge the coverage of futures markets to minimize the wide
fluctuations in commodity prices as also for hedging their risks. The endeavour will be to
cover all important agricultural products under futures trading in course of time.
Contd...

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