Page 10 - Procanvass

REVOLUTION OF AGRICULTURAL SUPPLY

CHAIN SYSTEM IN INDIA

I
ndian Agriculture is one of the most important sectors in the economy of the country. More than 60 percent
people of the Indian population are involved in this sector, and the target of 8.5 lakh crore rupees of agricultural
credit during the year 2015-16. Still the total share of agriculture & allied sectors in terms of percentage of GDP
is around 18 percent. Moreover farmer suicides in the country spiked by over 40 percent between the year 2014
and 2015, while 2014 saw 5,650 farmer suicides, the figure crossed 8,000 in 2015. So let us understand where
are we going wrong?
Indian Agriculture is one of the most important sectors Marketing Committee) Act. APMC is a marketing board

in the economy of the country. More than 60 percent established by a state government in India. There are
people of the Indian population are involved in this 294 APMCs in the state which function as per the
sector, and the target of 8.5 lakh crore rupees of Maharashtra Agriculture Produce Marketing
agricultural credit during the year 2015-16. Still the total (Development and Regulation) Act 1963 and
share of agriculture & allied sectors in terms of Maharashtra Agriculture Produce Marketing
percentage of GDP is around 18 percent. Moreover (Development and Regulation) Rule 1967.
farmer suicides in the country spiked by over 40
percent between the year 2014 and 2015, while 2014 Each state which operates APMC markets,
saw 5,650 farmer suicides, the figure crossed 8,000 in geographically divide the state and markets (mandis)
2015. So let us understand where are we going wrong? are established at different places within the state.
Farmers are required to sell their produce via auction at
Indian Agriculture is highly an unorganized sector. No the mandi in their region, Traders require licenses to
systematic organizational planning is involved in the operate within a mandi, Wholesale and retail traders
different stages of value chain. Institutional finances are (e.g. shopping mall owners) and food processing
not adequately available and the minimum price fixed companies cannot buy produce directly from a farmer
by the government generally does not reach the poor which was major drawback of current System.
farmers. Exploitation by the middlemen is the reason
put forth for not getting the best price for the Currently, Supply chain is dominated by Middle men -
agricultural produce. Thus a platform is needed where Wholesalers present in APMC market. Demand
(Consumption) Pattern of Products are Slightly
the farmers can directly sell their products at
reasonable price in order to ensure that the farmers are Predictable but Sales of Agricultural Product is highly
not exploited by intermediaries (and money lenders) unpredictable, Fluctuation of prices arise due to this
who compel farmers to sell their produce at the farm unpredictability of demand-Supply. Adjoining diagram
describes supply of Products from Farmer to
gate for an extremely low price. Agricultural Supply
chain System is such a platform which is regularized Consumers.
and comes under APMC (Agricultural Product
8