Day 31 – Q 3.How does presence of middlemen in the agricultural marketing ecosystem jeopardise the interests of the farmers? Analyse.
3. How does presence of middlemen in the agricultural marketing ecosystem jeopardise the interests of the farmers? Analyse.
कृषि विपणन पारिस्थितिकी तंत्र में बिचौलियों की उपस्थिति किसानों के हितों को कैसे खतरे में डालती है? विश्लेषण करें।
Agricultural marketing ecosystem refers to the system through which goods reach markets all over the country. The process of agricultural marketing involves assembling, storage, transportation, processing, grading and the distribution of the various agricultural products across the country.
Middlemen refers to the person, community, cooperation or society which procure food grains from farmers and sell them in market by keeping aside profit for themselves.
Middlemen in agricultural marketing ecosystem jeopardizing the interests of farmers
- Presence of middlemen makes the supply chain longer. The margin received by the farmers for their produced is quite less in comparison to the price paid by the end consumers. Due to the existence of APMC laws, the agricultural produce needs to go through the government regulated wholesale mandis, where unfair trade practices are quite common resulting in higher price of the produce for the consumer, but it does not translate into higher prices received by the farmers.
- Middle men stifle the direct contact between food industry and farmers. This jeopardizes the prospect of access to capital, inputs like seed, technology and extension services, price certainty enhanced market linkages among others.
- Land pooling and efficiency becomes difficult in presence of middlemen.
- Agriculture is becoming unsustainable enterprise. 76% of the farmers would like to quit farming if given a chance (‘State of Indian Farmers’ report). Only 23% of rural income comes from agriculture (NABARD survey). There happens 10 farmers suicide daily (2016, NCRB). Under such circumstances it’s imperative that menace of middlemen in the agricultural marketing ecosystem is routed out.
In the last few years, central government has done the following reforms in the agriculture sector, which will help remove middlemen.
- Electronic – National Agricultural Market
- Model Agricultural Produce and Livestock Marketing Act 2017
- Model Agriculture Produce and Livestock Contract Farming and Services Act 2018
- 100% FDI in multi-brand retail in case of food products manufactured and/or produced in India
- Model contract farming act 2018