Management Economics Class 11 Agricultural Marketing in Nepal Generally, agriculture marketing refers to the place where the agricultural products are purchased and sold.
Topics from Syllabus Covered GS paper 2 — Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections Issues relating to poverty and hunger.
GS paper 3 — Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.
Introduction Marketing and trade, as an activity comes at latter part of the value chain for any commodity and yet it is the most important determinant for all other activities.
All the input expenses for labor, materials and capital are rewarded at this stage, which shall include some incentive over and above inputs. Agricultural products, in a developing country remain in uniform demand throughout year, while production of most of them is concentrated in some part of the year.
This results in fluctuation in prices which can change equations of profit for the farmer. Apart from this, in a federal and diverse country, every state or region has diverse resources, consumption patterns and rules regarding taxation, levies, sale etc.
Integration of all the regional markets into national market is desirable in interest of both farmers and consumers. Farmers will get rewarding prices even if demand is not there in their region, on other hand if there is less production in a state, consumer will still be able to get products at reasonable prices.
Same is true for international markets, we have seen few years back when prices of sugar were up swinging, and then sugar imported from Brazil came to rescue Indian consumers. However, integration of national and international markets, at times can make domestic and regional farmer vulnerable because of external forces.
For these reasonable regulation is imperative. Trade of this quantity is also heavily regulated by the government through APMC act and various taxes and levies.
So, less quantity left in market is in itself a strong reason for price rise, which is further supplemented by monopoly of government in open market. Further, under current system there are number of intermediaries who add little value to the product, but increase price dramatically by commissions or trading margins.
This all coupled with lack of integration of market leaves farmers and consumer vulnerable alike. This is extension of overall government policy which is directed toward food security, remunerative prices to farmers and fair prices to consumers. However, widespread perception for this act is that it has worked contrary to almost every stated objective, atleast in recent past.
At that time there was no control at all. Money lender, traders, bankers etc. This all in one role of middleman resulted in perpetual indebtness of farmer. Under the APMC acts, States are geographically divided in to markets which are headed by market committees and any production in that area shall be brought to a market committee for sale.
Notified products are meant to be brought to the market committee and auctioned in presence of the farmer.
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In this Market committee popularly called Mandi there are commissions agents called arhatiyas who hold license and are allotted a shop in the market. Farmer and buyer have discretion to go to any agent in this market, based on personal relations.
Normally farmers chose agents from their own village and are influenced by age old relations of money lending. There are huge numbers of commission agents in a particular APMC dealing in same crop, which results in constant price discovery and adjustments for that particular crop.
At same time buyers, which may be rice mill, flour mills, cotton ginning mill owners, come to procure these products. They make their bids and if these bids are fair, will give best return to farmers. But unfortunately this is not so. It deprives farmers from better customers, and consumers from original suppliers.
Cartelization — It is quite often seen that agents in an APMC get together to form a cartel and deliberately restraint from higher bidding.
Produce is procured at manipulatively discovered price and sold at higher price.
Spoils are then shared by participants, leaving farmers in lurch. Entry Barriers — License fee in these markets are highly prohibitive. In many markets farmers were not allowed to operate.Agricultural Economics Research Review Vol.
24 January-June pp * Author for correspondence, Email: [email protected] Value Chains of Agricultural Commodities . The agricultural marketing system in Nepal is not found organized. The farmers produced small quantities of commodities and sell in the village to fulfill their basic needs.
Due to this, unorganized market, the management system of measurement, price control, quality maintenance, and other facilities are unscientific. India, the organized marketing of agricultural commodities has been promoted through a network of regulated markets.
Most State Governments and Union Territory(UT) administrations have enacted legislations (Agricultural Produce Marketing (Regulation) Act (APMC Act)) to provide for the regulation of agricultural produce markets. India, a commodity based economy where two-third of the one billion population depends on agricultural commodities, surprisingly has an under developed commodity market.
The purpose of this Essay is to outline and assess what each perspectives view of crime and deviance is. The perspectives that will be in this essay are Functionalists, Interactionists and conflict theories. Commodity exchange in India plays an important role where the prices of any commodity are not fixed, in an organized way.
Earlier only the buyer of produce and its seller in the market judged upon the prices.