Page 30 - BF Cover January 2021.cdr

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demand for food grains of the country to touch 281 million 'negotiable warehouse receipt' to farmers. The farmers may
MT by 2020-21 further necessitates requirement for total enjoy credit facilities from banks on the security of the
storage capacity of around 196 million MT of marketable warehouse receipt issued for the stored products to the
surplus. Assistance for storage infrastructure is available on extent of 75 to 80 per cent of their value.
capital cost of the project including cost of allied facilities
like boundary wall, internal road, internal drainage system, Food Grain Storage Management in
weighing, grading, packing, quality testing & certification,
fire fighting equipment etc. which are functionally required India
to operate the project. Food Corporation of India is the only government agency
entrusted with movement of food grains from the procuring
Importance of Agriculture Marketing states to consuming states through a network of storage
infrastructure owned or hired by FCI in the whole of India.
Infrastructure
Scientific Storage: The main objectives of scheme include
creation of scientific storage capacity with allied facilities in
rural areas to meet out various requirements of farmers for
storing farm produce, processed farm produce, agricultural
inputs etc.

Price Stabilization: Warehouses help in price stabilization of
agricultural commodities by checking the tendency to
making post-harvest sales among the farmers.

Market Intelligence: AMI offer the facility of market
information to persons who hold their produce in them. They
inform them about the prices prevailing in the period, and
advise them on when to market their products.
Challenges in Agriculture Marketing
Developing and upgrading infrastructure: It will incentivize Infrastructure
developing and upgrading of Gramin Haats as GrAMs to
make better farmer-consumer market linkages. The Indian commodities are facing tough competition in the
international market when it comes to quality, pesticide
residues, varieties with more shelf life, packaging etc. This
Value chain: It helps to promote Integrated Value Chains
through minimal processing /value addition to make the implies that Indian produce need to be more competitive
to face the international competition which again demands
produce more marketable, which includes washing, sorting,
cleaning, grading, waxing, ripening, packaging, labelling the maintenance of quality standards throughout the value
chain including good agricultural practices. Whereas it has
etc., wherein the product form is not changed.
been found that 30 - 40 percent of fruits and vegetables are
wasted due to post harvest losses. There is lack of basic as
Reduction of post harvest losses: Since it promotes creation
well as specialized infrastructure such as cold storages, refer
of scientific storage capacity for storing farm produce,
processed farm produce and agricultural inputs etc. it vans, cool chains, ripening chambers etc.
reduces post-harvest & handling losses, promote pledge Some interesting facts
financing and market access.
Y India is short by 10 million tonnes of cold storage
capacity due to Which over 30 percent of agricultural
Financing: In order to avoid distress sales by the small and
marginal farmers in the peak season, warehouse (registered produce goes waste every year
under Warehousing Development and Regulation Act) issues Y More than 20% of produce from fields is lost to poor

30 | 2021 | JANUARY | BANKING FINANCE