Recently, Union Cabinet of the Republic of India has approved ‘The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020’. The ordinance brings several Agricultural marketing reforms paving way for the ‘One Nation-One Market’. Earlier there were restrictions for farmers selling their produce outside the notified market yards for their districts.
With the increase in commercialization of agriculture, the share of farm produce that is sold outside increases and sold within the state shrinks. In addition, consumption patterns are being diversified due to an increase in per capita income. People want to consume a range of products often grown outside the state and even outside the country. This requires seamless flow of farm produce across the country without restrictions and barriers. For the seamless flow of produce, it requires strong supply chain that moves products from one state to another state efficiently and quickly and integrate consumer with producer from different geographies. This kind of development will accelerate the growth of farmers where there will not be any restrictions and unnecessary checks and barriers for farmers and traders to buy sell and move their produces. This ‘One nation, One market’ concept is vital to raise price realization by farmers and to supply food to end users at competitive prices.
Goal of this reform is to help farmers get higher remunerative prices by creating new sale avenues and higher competition. This will also reduce the marketing cost and market margin as it be distributed over producers and consumers. This will surely help farmers getting good prices for their farm produce.
Higher Competition in the sale of commodities always benefits sellers. Therefore, higher efficiency in the new marketing and trade environment will benefit all the farmers including marginal producers having marketable surplus farm produces. In order to leverage more from the liberalized environment, farmers need to connect with end-users and consumers directly. They also needs to participate more in online sales platforms. This may require minimum scale which small farmers can create by joining hands with Farmer Producer Organizations (FPOs) and Farmer Producer Companies (FPCs) . FPOs and FPCs are the best way to approach in this scenario as these are considered as beneficial institutions for empowerment and protection of farmers and small landholders.
New reforms will be implemented soon. I hope farmers and traders will take cognizance of the opportunity created for them and will start preparing to do business as per the new liberalized trading environment from next season of crops.
1 Comment
publishing blog is nice startup to help farmer and show them the new technology and the laws which are adapt by the government recently or may be in the ordinance in the future.
but my concern is that most of our farmers community are not able to read the English podcast or any blog. so, it is possible for you that publish in their familiar language that might be more helpful. as per my suggestion the other way is that to print charts related to farmers issue and their solution and published near the market were the farmers sell their produces. each and every city has the agricultural market were the farmers sell their produces and get the seeds for the farming that is best platform to help him.
I know that it is not possible for one person spend such money but, may be your company can do it and they have another way to be famous among the farmers that one company can help him from their very first step of farming to the last step of selling their produces.
sorry, if I write something wrong in the comment.