2. Recommendation for Effective Agro Marketing Strategies

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1 Recommendations General Recommendations 10. RECOMMENDATIONS Agriculture should be treated as a priority sector Small and marginal farmers should be recognized as a special group Direct income support should be given to small and marginal farmers. Efforts should be done for value enhancement of agro products. Trade policies should be designed for sustainable agriculture growth and protection of agriculture markets. The government should emphasize upon agriculture oriented research and education. Synchronization of all related departments for better execution of Agricultural Policy The government should also focus upon land reforms. Misuse and diversion of land for non-agriculture activities must be stopped. Agro-climatic zones must be developed in the state. Public Distribution System and Minimum Support Price are supports to farmers but systems are ridden with corruption, effective implementation depends on Civil Society and community based organizations. Current water policy should be reviewed and be made farmer friendly. All the relevant policies like Water Policy, Food Processing Industry Policy, Live Stock Policy, Land Use Policy should be supportive to each other Social aspects like child labour, education, food security, house hold dynamics, societal hierarchies must be taken into account while planning for increased productivity Non- farm rural employment should be increased. 2. Recommendation for Effective Agro Marketing Strategies Direct Farming: direct marketing encourages farmers to undertaken grading of farm produce at the farm gate and avert the necessity to drag produce to regulated market for sale. Direct marketing enables farmers and processors

2 Recommendations208 and other bulk buyers to economize on transportation cost and to considerably improve price realization. It provides incentive to large scale marketing companies to increase their purchases directly from producing areas. Contract Farming: It is significant to note that Indian agriculture is not similar to Agri business prevalent in US or Europe. Private sector participation in Indian Agriculture is imperative so as to provide much needed impetus for growth. Viewed in this context, contract farming in India is essential so as to promote rural self-reliance in general by pooling local available resources and expertise to meet new challenges. It will also reduce migrations from rural to urban areas and reduce load of procurement. It will promote processing and value addition. Development of Mega Market: the agricultural production in the country has increased manifold and will continue to do so in the years ahead. There is therefore all the more need and justification for development of modern competitive marketing in the form of "Mega Markets" so that with the provision of scientific storage, infrastructure facilities, remunerative price for products could be ensured to the farmers. Thus production cost could be reduced, losses could be minimized and exports could be increased. Given the comprehensive ultramodern marketing facilities for agricultural produce, the new concept of mega market can revolutionize the entire marketing system and give benefit of value addition of farmers. Amendments to APMC ACT:In the emerging context, the Agricultural Produce Market Committees Act (APMC Act) has become old and out dated and hence requires to be amended urgently to make farmers competitive and enable purchasers to purchase commodities directly from the farmers. Even today the traders have to undergo 28 legal Acts including Essential Commodities Act and APMC Act. Viewed in this context, it is essential to remove Essential Commodities Act and review other 27 Acts so as to facilitate free trade.

3 Recommendations209 Organic Farming: Organic farming proves to be more profitable than the age-old traditional farming methods. It has been found that organic farming reduces the production cost by about 25-30%, as it does not involve the use of synthetic fertilizers and pesticides, which thus makes organic farming costeffective. Organic farming is not only beneficial for farmers, but it also has proved useful for the dairy industry. Cattle grazing on organic farmlands have been found to be less prone to diseases and they yield more milk. These are definitely good signs for a consumer of these dairy products from health perspective and for a dairy organization from the profit perspective. Rationalization of Market Fees: Analysis of market fees etc levied in various states indicate that they are not only varied but also does not bear any relationship with the quality of service or efficiency of market operations. The present system of levy of fee at multiple points for the same commodity at different stages of transaction needs to be replaced, by single point levy of market fee in the entire process of marketing in the state. Further, collection of market fee should be more in the nature of service charge based on the quality services provided. Expansion of e-choupal: ITC is setting up e-choupals, which offers the farmers all the information, products and services they need to enhance farm productivity, improve farm-gate price realization and cut transaction costs. Farmers can access latest local and global information on weather, scientific farming practices as well as market prices at the village itself through this web portal - all in Hindi. It also facilitates supply of high quality farm inputs as well as purchase of commodities at their doorstep. Development of Rural godowns & cold storages: In order to ensure optimum utilization of agricultural crops as also fruits and vegetables and reduce waste to the minimum so as to ensure enhancement of income of the farmers, it is highly essential to strengthen cold chain and other infrastructure and to examine the feasibility of introduction of irradiation system on semi

4 Recommendations210 perishable produce. Since cold storages become prohibitively costly due to high cost of electricity and other taxes and duties, suitable subsidy should be given to such activity so as to promote investment in such cold storages. Promoting of information Technology: Market information is needed by farmers in planning production and marketing, and is equally required by other market participants in arriving at optimal trading decisions. The existence and dissemination of complete and accurate marketing information is the key to achieving both operational and pricing efficiency in the marketing system and IT has an important role to play in the process. Reorientation of training & extension systems: With the globalization & liberalization of markets, agricultural marketing is undergoing tremendous transformation. This underlines the paramount need for agriculture being made market driven, cost effective, competitive, innovative & responsive to high tech & IT applications. Major areas of extension and training in marketing are land reforms, grading and standardization, packaging, pledge financing, transportation, forward & future market, commodity exchange agribusiness, direct marketing, contract farming, storage & cold chain, warehousing, market infrastructure, quality certification & WTO & its implications The underlying objective should be to promote good farming practices in the larger interest of farmers as well as consumers. Transportation Infrastructure: A well-developed and efficient system of transportation helps in the expansion of markets, reduces the transport time and costs of transportation of the commodities. Public investment in rural roads, by increasing rural connectivity, can have a significant impact on access to markets by farmers, the development of supply chains, and overall marketing efficiency in addition to other beneficial impacts on rural households. Agri Export Zones (AEZS): The importance of agri export zones can hardly be over emphasized. Already 60 AEZs have been notified in different states

5 Recommendations211 for specific commodities including basmati rice, fruits, vegetables, flowers, spices, wheat, vanilla, tea, coriander, cumin, sesame seed, cashew nuts and potato. One AEZ must be established in Western Rajasthan. Centers for Perishable Cargo (CPC): Major problems faced by the Indian exporters of perishable products relate to the poor and inefficient handling of the perishable commodities at the cargo centers resulting in poor quality of products reaching the international markets. It hampers the export performance and also damages the image of Indian goods in the international market. During summers, when temperature crosses 40 degrees Celsius, the handling is inefficient and palletisation procedure is slow resulting in spoilage of perishable commodities. This necessitates more efficient and well equipped cargo centers for perishable commodities in Western Rajasthan. The improved and well equipped centre for perishable cargo is an important platform in the supply chain of horticultural products from the farms to the international markets and ultimately to the consumers. Grading & Standardization: It is a marketing function which facilitates the movement of produce. Without standardization the rule of caveat emptor (let the buyer beware) prevails; and there is confusion and unfairness as well. To avoid this confusion, it is necessary to have fixed grade standards which are universally accepted and followed by all in trade. To ensure the confidence of consumers, it is essential that grading is done in accordance with the standards that have been set. For this purpose, the inspection of the goods at regular intervals by a third party is essential. 3. Recommendation for Agricultural Credit Cost Effective and Flexible Crop Loans: Crop loans constitute a major portion of disbursements for agriculture. The bad monsoon definitely affects agriculture and in turn the credit for crop loans is influenced. Besides, due to the existence of a number of financial institutions extending crop loans and their varied ways of selling the same, the subject of crop loan had become

6 Recommendations212 very complex. But the fact remains that the farmer needs adequate and timely credit in a cost effective and flexible manner to raise a crop. To take care of his consumption needs, some provision is required to be made. Besides crop cultivation, the farmer may be undertaking some activities allied to agriculture and even some non-farm sector activities. Kisan Credit Card: Although the Kisan Credit Card is hassle free and useful credit sceme, yet the end use of the sanctioned limit should be closely monitored to avert mis-utilization. The tenure should be increased to 5 years. Presently the farmer needs to submit various documents like copy of Jamabandi, Local Revenue Inspector Report, KYC formalities etc. The process should be simplified. There should also be standard interest rate. On Line Future Trading: When the country is rapidly moving from shortages to surpluses in respect of agricultural commodities etc. it is highly essential and desirable that necessary online linkages with Bombay Commodity Exchanges and with other commodity exchanges in the country be facilitated through provision of incentives and facilities. Such a measure will go a long way in ensuring regular availability of commodities to industries at reasonable prices with benefit to the farmers and the consumers. Crop insurance: better crop insurance practices are needed in Rajasthan as agriculture is rain fed and drought is regular phenomenon. Comprehensive policies for insuring not just crops but a package policy must be designed as is being made available in other states 4. Extension and dissemination activities Heterogeneity amongst farmers should be recognized and community involvement must be increased for successful implementation of extension activities.

7 Recommendations213 The government should provide back home support for adoption of new technologies. The actual cultivator women and small and marginal farmers must be included in expansion activities. Access to improved agricultural practices through extension services, printed literature and other media support. (Every farmer should get farm specific technical message in print form before every crop season.) 5. Agricultural Inputs Water resources are important the existing work should be up scaled with reference to local context Government should increase investment in small and medium irrigation Government must investment in pucca works for watershed activities Maintaining and upgrading the traditional community irrigation systems is necessary. Technical knowledge should be provided to PRIs Ensuring availability of good quality seed of desired crop / variety to each farmer at his doorstep. Timely availability of fertilizers and pesticides should be ensured. 6. Recommendations for Drought Relief Revival of the water harvesting and water conservation structures through government intervention is required, taking into account local knowledge and needs Encouraging optimum use of water through installation of sprinklers on every operational well. Promoting diggis/ farm ponds / water harvesting structures in canal command areas and other areas of the state. Drought Monitoring and land use planning should emphasize on less water requiring crops

8 Recommendations214 Decision support system must be developed for drought prone regions to help in cropping decisions Protected cultivation, green house and shade must be explored less use of water. Government should promote rain water harvesting and water recycling Climate risk management must be adopted at the PRI level and by the PRIs Role of community institutions and PRIs in watershed management needs to be up scaled and solutions for sustainability Specialized knowledge on various related subjects has to be made locally available. Social capital development should take place for proper flow of information and collective strength 7. Recommendations Regarding Climate Change Traditional knowledge about climate change should be revived. Communities have ability to deal with emergency situations there is a need to utilize this. Research on climate change should be extended to the farming community Micro level needs should be considered and farmers should be brought on board for climate change policy making. Existing practices must be modified instead of introducing foreign practices Proper use of existing infrastructure is required to share climate change information with farmers Local planning should be done for Long term management and sustainability. Climate change should be taken into account while looking at pest management. Cropping patterns must be linked with local needs and market. Dependency on agriculture for livelihood should be reduced. Allied activities should be focused.

9 Recommendations215 Dependency on external resources for agricultural production should be reduced. 8. Recommendations for Women Empowerment in Agriculture State has to take a proactive role perspective building of policy makers and implementers Women must be recognition as farmers Women s role in maintaining biodiversity and preserving traditional knowledge should be recognized and encouraged Gender disaggregated data should be available at all levels Access, control and ownership of land to/for women must be ensured Differential incentives should be given to women farmers In the schemes with limited outreach, priority should be given to women land owners and farmers Government must lease land to women s collectives/groups In policy making, the complexity of the household must be recognized. Vulnerable sections amongst women need to be taken into account In view of the geographical location and size of the State, dependence of its economy on agriculture is unlikely to reduce significantly in the near future and, therefore, stimulating the growth of the agriculture sector is not a choice but a necessity. The fact that most of the agriculture in Rajasthan is subsistence by nature is reflective of the potential that exists for value addition to agricultural output. Making farming an important instrument of rural prosperity and eradication of poverty can be achieved by concurrent attention to: Soil health enhancement, Water conservation and management, spread of appropriate technologies for crop, livestock, and integrated farming systems, Supply of quality inputs at the right time and place at affordable prices, Farmer friendly credit and insurance systems and, above all, Opportunities for assured and remunerative marketing.