Major Crops- Cropping patterns in various parts of the country

Multiplicity of cropping systems has been one of main features of Indian agriculture and it is attributed to rain-fed
agriculture and prevailing socio-economic situations of farming community. It has been estimated that more than 250
double cropping systems are followed throughout the country and based on rationale of spread of crops in each
district in the country, 30 important cropping systems have been identified.
Cropping systems of a region are decided by and large, by a number of soil and climatic parameters which determine
overall agro-ecological setting for nourishment and appropriateness of a crop or set of crops for cultivation.
Nevertheless, at farmers level, potential productivity and monetary benefits act as guiding principles while opting for
a particular crop/cropping system. These decisions are further narrowed down under influence of several other forces
related to infrastructure facilities, socio-economic factors and technological developments, all operating interactively
at micro-level.
Infrastructure facilities: Irrigation, transport, storage, trade and marketing, post-harvest handling and processing etc.
Socio-economic factors: Financial resource base, land ownership, size and type of land holding, household needs of
food, fodder, fuel, fibre and finance, labour availability etc.
Technological factors: Improved varieties, cultural requirements, mechanization, plant protection, access to
information, etc.
Multiplicity of cropping systems has been one of the main features of Indian agriculture. This may be attributed to
following two major factors:
1. Rain-fed agriculture still accounts for over 92.8 million hectare or 65 per cent of cropped area. A large diversity
of cropping systems exists under rain-fed and dry land areas with an overriding practice of intercropping, due
to greater risks involved in cultivating larger area under a particular crop
2. Due to prevailing socio-economic situations (such as dependency of large population on agriculture, small
land-holding size, very high population pressure on land resource etc.), improving household food security has
been an issue of supreme importance to many million farmers of India. An important consequence of this has
been that crop production in India remained to be considered, by and large, a subsistence rather than
commercial activity
Cropping Systems in Irrigated Ecosystems
Depending upon the natural water resources, each region has certain area under irrigated agriculture. But, broadly
considering, two distinct irrigated ecosystems emerge. One is Indo-Gangetic Plain region comprising the states of
Punjab, Haryana, plains of Uttar Pradesh, Bihar and plains of Jammu & Kashmir. The other ecosystem may be carved
out of coastal areas of Andhra Pradesh and Tamil Nadu.
Estimates indicate that more than 56 per cent of total food grain comes from irrigated ecosystem while progress has
been considerably sluggish in rain fed agriculture which still accounts for 92.8 million hectare or 65 per cent of net area
sown and contributes only 44 per cent to national food grain production. Among the states, Punjab ranks first with
94.6 per cent cropped area under irrigation followed by Haryana (76.4%) and Uttar Pradesh (62.3%).
Issues in Irrigated Cropping Systems
1. Adequate information is lacking on site-specific characterization of land and water resources and climatic
parameters, which is crucial for efficient land use planning and resource deployment

2. Inadequate effort or lack of mechanisms to build up research programmes that take into account the
experience and knowledge base that exists within the farming community.
3. It has been hardly realized that field problems to which solutions are sought are rarely amenable to solutions
through a single component/discipline oriented research. System oriented production research is needed to be
strengthened as it is essential for maximizing land productivity by harnessing synergies generated through
various interactions in soil-crop systems. Cropping system approach of resource management has been
showing immense potential in enhancing resource use efficiencies and pest management.
4. Despite the fact that water is a precious and scarce resource, its application and use efficiencies have been
quite low. Low water use efficiency is apparently attributable to:
1. Excessive use of water due to
a. improper leveling of fields coupled with improper application methods, even in agriculturally
advanced areas,
b. faulty pricing policy for electricity and canal water leading to over irrigation
2. Non-adoption of appropriate cropping systems. For example
a. Extensive cultivation of rice in sandy soils of Punjab
b. Advance of rice transplanting to April/May in Punjab and Haryana
5. Soil salinity hazards due to ground water rise and impeded natural drainage in certain canal command areas
are well known
6. The excessive pumping of ground water for irrigation purposes in intensively cultivated areas of Punjab,
Haryana and Western Uttar Pradesh has caused lowering down of the ground water table in certain pockets
7. Diversion of highly productive irrigated land to non-agricultural uses; such as industry, housing etc., specially at
rural-urban interface
8. Due to imbalance in fertilizer use, widespread deficiencies of secondary and micro-nutrients and reduced
organic matter contents of cultivated lands, a declining trend for responses to nutrients, specially to nitrogen,
in major cropping systems is being observed on farmers fields
9. With crop intensification under high input use, serious threats of occurrence and build up of some obnoxious
pests and diseases have crept in. Heavy infestation of Phalaris minor in continuous rice-wheat cropping
system in north western plains is a glaring example.
10. A potential danger may be envisioned in the form of pollution of natural water bodies and underground
aquifers due to nitrate leaching and phosphates causing irreparable harm to natural ecosystems under high
fertilizer use without improving their use efficiencies
Specific issues related to some important cropping systems
1. Rice-Wheat: Rice-Wheat system is the most widely adopted cropping system in the country and has become
mainstay of cereal production. Important issues emerging as a threat to the sustainability of rice-wheat system
are:
Over mining of nutrients from soil
Disturbed soil aggregates due to puddling (tillage of flooded soil) in rice
Decreasing response to nutrients
Declining ground water table
Build up of diseases/pests
Build up of Phalaris minor
Low input use efficiency in north western plains
Low use of fertilizer in eastern and central India
Lack of appropriate varietal combination
Lack of adequate labour

2. Rice-Rice: Rice-rice is the popular cropping system in irrigated lands in humid and coastal ecosystems of Orissa,
Tamil Nadu, Andhra Pradesh, Karnataka and Kerala and it is spread over an area of six million hectares. The
major issues in sustaining productivity of rice-rice system are:
a. Deterioration in soil physical conditions
b. Micronutrient deficiency
c. Poor efficiency of nitrogen use
d. Imbalance in use of nutrients
e. Non-availability of appropriate transplanter to mitigate labour shortage during critical period of
transplanting
f. Build up of obnoxious weeds such as Echinochloa crusgalli and non-availability of suitable control
measures
In Kerala, reduction in area is mainly attributable to the conversion of paddy lands to more profitable and less labour
intensive plantation estates. In Assam, low productivity under prevailing soil and climatic situations, poor drainage in
submerged areas, low nutrient use and iron toxicity are some of the issues of concern.
3. Rice-Mustard: In this cropping system, the yield of Rice is satisfactory in all eco-systems, however, wide
variations in yield of mustard were recorded from one ecosystem to another. In general, with a medium or
short duration high yielding rice variety, a successful mustard crop is possible. The mustard crop remains in
field up to March and thereafter summer season can be best utilized by another crop to increase the
productivity of the system
4. Rice-Groundnut: Groundnut is basically a Kharif crop grown under rain fed environment however,
Rabi/summer groundnut is emerging as an important high value crop under assured irrigation environments.
The productivity of Rabi/Summer groundnut is almost double of the yield obtained in Kharif season. It has
become possible to grow groundnut on well drained low lying fertile lands after harvest of preceding rice
crop under assured irrigation. The area under summer groundnut in general and rice groundnut sequence in
particular is increasing fast in most of the west and east coastal districts of the country. Excess rainfall received
during September/October creates water-logging problems in medium and low lying fertile rice fields and
affects groundnut yield adversely
5. Rice-Pulses: Rice-Pulses cropping system is a dominant crop rotation in Chhattisgarh, Orissa and parts of
Bihar. Factors limiting productivity of this cropping system in the region are as follows
a. Physical factors
i. Droughts and erratic distribution of rainfall
ii. Small area under assured irrigation
iii. High percolation, resulting in heavy nitrogen losses in red sandy-loam soils, particularly Bhata
soils
b. Input related factors
i. Delayed and prolonged biasi/transplanting
ii. Low coverage under high yielding varieties (HYVs)
iii. Little attention to timely weed control
iv. Inadequate supply of quality seeds
v. Little attention to disease/pest control.
c. Social factors
i. Low literacy
ii. Large proportion of marginal and tribal farmers
iii. Practices of animal grazing on agricultural lands
iv. Low risk bearing capacity of farmers of the region

6. The pearl millet-wheat is one of the most important cropping systems of the country and spreads over
a. arid eco-region comprising, western plain, Kachch and part of Kathiawar Peninsula having desert and
saline soils and representing Gujarat, Rajasthan and Haryana
b. semi-arid eco-region comprising northern plains of Haryana, Western Uttar Pradesh (Agra region) and
central highlands including Aravallis, Banswara, Jaipur and Tonk districts of Rajasthan with alluvium
derived soil and Gujarat plains and Kathiawar Peninsula Gujarat state, having medium and deep black
soil
Following issues are some of the concerns of sustainability:
1. Over mining of nutrients
2. Depleting soil fertility
3. Imbalance in fertilizer use
4. Decreasing response to nutrients
5. Lowering groundwater table
6. Build up of diseases/pests and weeds
7. Pearl Millet- Mustard: Pearl millet during Kharif and rapeseed during Rabi have been the most important
crops of dry land and/or areas with limited water availability under marginal land condition of north-west,
west and central parts of India. In several parts of Haryana, Rajasthan, Uttar Pradesh and Madhya Pradesh
where mono-cropping of pearl millet and mustard was most common, increase in irrigation facilities has made
it possible to grow these crops in sequence. Following are some of the concerns related to pearl millet-mustard
sequential cropping system:o Delayed sowing of mustard after harvesting pearl millet in October
o Pearl millet is an exhaustive cereal crop and it depletes soil of essential nutrients
o Non-application of sulphur in this area by farmers
o Shortage of farm machinery by the farmers in this area
o Build up of diseases by continuous cultivation of pearl millet mustard sequence
8. Maize-Wheat: Among maize-wheat growing areas, maize is the principal crop of Kharif season in northern hills
of the country but plains of northern states like Uttar Pradesh, Rajasthan, Madhya Pradesh and Bihar also
have sizeable acreage under this crop. There are number of reasons for poor yield but the most significant are:
o Sowing time
o Poor plant population
o Poor weed management
o Poor use of organic and inorganic fertilizers
o Large area under rain fed conditions
As most of the area in maize-wheat system is in rain fed conditions when uncertainty of rainfall is a major
limitation. This also acts as a deterrent to farmers to adopt intensive input use, leading to deterioration of soil
health and depletion of major plant nutrients from soil.
9. Sorghum-Wheat: Sorghum-wheat is one of the most prevalent cropping system in Western regions of the
Country, comprising eastern parts of Rajasthan, western and central parts of Madhya Pradesh, Western
Marathwada and Vidarbha regions of Maharashtra, Southern Gujarat, Northern parts of Karnataka and

Telangana region of Andhra Pradesh. Out of the two component crops of the system, productivity of sorghum
faces wide fluctuations due to some problems. Stiga, a parasitic weed is one of such problems hampering the
productivity of sorghum. Top shoot borer and shoot fly are major insects affecting plant population and
reducing yield levels considerably. Fluctuating market prices, usually discourage the sorghum growers,
however, sorghum cultivation is indispensable as it is the most important source of fodder for cattle in this
area.
10. Sugarcane-Wheat: Sugarcane is grown in about 3.4 million hectare. In north India (Uttar Pradesh, Punjab,
Haryana and Bihar), which account for 68 per cent of the total area under sugarcane, sugarcane-ratoon-wheat
is the most important crop sequence. Problems in sugarcane-wheat system are:
a. Late planting of sugarcane as well as wheat
b. Imbalance and inadequate use of nutrients. Since majority of farmers apply only N in sugar cane and
the use of P and K is limited. The emerging deficiencies of P, K, S and micro-nutrients are limiting
system productivity directly and through interactions with other nutrients
c. Poor nitrogen use efficiency in sugarcane
d. Low productivity of ratoon due to poor sprouting of winter harvested sugarcane in north India
e. Build up of Trianthema partulacastrum and Cyprus rotundus in sugarcane
f. Stubble of sugarcane pose tillage problem for succeeding crops and need to be managed properly
11. Cotton-Wheat: Cotton is widely grown in alluvial soils of north India (Punjab, Haryana, Rajasthan and Western
Uttar Pradesh) and black cotton soils of central India (Andhra Pradesh, Tamil Nadu and Karnataka). The major
issues of concern in cotton-wheat cropping system are:
a. Delayed planting of succeeding wheat after harvest of cotton
b. Stubbles of cotton create problem of tillage operations and poor tilth for wheat
c. Susceptibility of high yielding varieties of cotton to boll worm and white fly and consequently high cost
on their control leading to un-sustainability
d. Poor nitrogen use efficiency in cotton results in low productivity of the system
e. Appropriate technology for intercropping in widely spaced cotton is needed to be developed
12. Soybean-Wheat: Soybean-wheat cropping system has emerged as an important cropping system only after
1980 with the introduction of soybean as a Kharif crop in wheat growing areas of the country particularly
under irrigated ecosystem. Constraints limiting the soybean production and productivity viz. a relatively recent
introduction of soybean as a crop, limited genetic diversity, short growing period available in Indian latitudes,
hindered agronomy/availability of inputs at farm level, rain fed nature of crop and water scarcity at critical
stage of plant growth, insect pests and diseases, quality improvement problems, inadequate mechanization
and partial adoption of technology by farmers have been identified
Legume Crops
Legume crops (pulses and oilseeds) are popular for their suitability in different cropping systems. Recent advances
in the development of large number of varieties of pulse and oilseed crops, varying largely for maturity duration,
have made it possible to include them in irrigated crop sequences. The popular cropping systems are pigeon peawheat in Madhya Pradesh and groundnut-wheat in Gujarat, Maharashtra and Madhya Pradesh and groundnutsorghum in Andhra Pradesh and Karnataka.
The major issues in legume based cropping systems are:
1. No technological breakthrough has been achieved so far in respect of yield barriers, particularly in legumes

2. Susceptibility of the pulses to aberrant weather conditions especially water logging and adverse soils making
them highly unstable in performance
3. High susceptibility to diseases and pests
4. Low harvest index, flower drop, indeterminate growth habit and very poor response to fertilizers and water in
most of the grain legumes
5. Nutrient needs of the system have to be worked out considering N-fixation capacity of legume crops
Horticultural Crops
The information with regard to cropping pattern in horticultural crops particularly vegetables and tuber crops is not
compiled and readily available.
Vegetable Crops
Low productivity is the main feature of vegetable cultivation in India as farm yields of most of the vegetables in India
are much lower than the average yield of world and developed countries. The productivity gap is more conspicuous in
tomato, cabbage, onion, chilli and peas. Preponderance of hybrid varieties and protected cultivation are mainly
responsible for high productivity in the developed countries.

Constraints in vegetables production:

Lack of planning in Production

Non-availability of seeds of improved varieties
High cost of basic production elements
Inadequate plant protection measures and non-availability of resistant varieties
Weak marketing facilities
Transportation limits

Post harvest losses

Abiotic stresses

Tuber Crops
Tuber crops have good potential as secondary staple food, vegetable and industrial raw material. Many of the crops
find favour with tribals as a rich source of carbohydrates. Many promising varieties of important tuber crops have been
recommended and suitable agro-techniques and plant protection measures have been standardized. The important
crops are Potato, Sweet potato, Colocasia, Cassava and Lesser yam.
These crops except potato are grown in poor soils with lesser inputs and even under drought and unfavourable
conditions.
Tuber crops, being vegetatively propagated, the multiplication rate is very low. This coupled with the absence of a
proper seed distribution agency poses problems in the propagation and spread of the high yielding varieties released
by the state and national agencies. Lack of proper infrastructure for virus elimination and multiplication of CMD free
planting material is the real problem which comes in the way of boosting cassava production in non-traditional areas.
So, the establishment of an effective seed production and distribution network at the national level is a pre-requisite
for boosting production of tuber crops.

Different types of irrigation and irrigation systems

Various types of irrigation techniques differ in how the water obtained from the source is distributed within the field. In
general, the goal is to supply the entire field uniformly with water, so that each plant has the amount of water it
needs, neither too much nor too little.
1. Surface Irrigation
Surface irrigation is the application of water by gravity flow to the surface of the field. Either the entire field is flooded
(basin irrigation) or the water is fed into small channels (furrows) or strips of land (borders).
In surface (furrow, flood, or level basin) irrigation systems, water moves across the surface of agricultural lands, in
order to wet it and infiltrate into the soil. Surface irrigation can be subdivided into furrow, border strip or basin
irrigation.
a. Basin Irrigation
Basins are flat areas of land, surrounded by low bunds. The bunds
prevent the water from flowing to the adjacent fields. Basin irrigation
is commonly used for rice grown on flat lands or in terraces on
hillsides. Trees can also be grown in basins, where one tree is usually
located in the middle of a small basin. In general, the basin method is
suitable for crops that are unaffected by standing in water for long
periods.
b. Furrow Irrigation
Furrows are small channels, which carry water down the land slope
between the crop rows. Water infiltrates into the soil as it moves along
the slope. The crop is usually grown on the ridges between the

furrows. This method is suitable for all row crops and for crops that cannot stand in water for long periods.
The following crops can be irrigated by furrow irrigation:
1.
2.
3.
4.

row crops such as maize, sunflower, sugarcane, soybean

crops that would be damaged by inundation, such as tomatoes, vegetables, potatoes, beans
fruit trees such as citrus, grape
broad cast crops (corrugation method) such as wheat

Furrow irrigation can be divided into

1. Corrugation irrigation
CORRUGATION IRRIGATION is used widely in many parts of the West. With this method you irrigate closegrowing crops with small streams of water running in V-shaped furrows or corrugations. The water soaks into
the soil along the corrugations and spreads out sideways into the areas between them. Corrugations are
generally smaller than the furrows used in irrigating cultivated row crops.
With corrugations you can get good irrigation with a water supply that varies during the irrigation season. It is
one of the least expensive irrigation methods to install and is often used on new lands that have had little
leveling or other preparation work.
a. Straight Irrigation
i. Level
ii. Graded
b. Contour irrigation
2. Deep Furrow Irrigation
Deep furrows 15 to 30 cm deep, spaced 1 to 2 m apart and of length less than 30 m are useful for orchards and
sugarcane. Deep Furrow irrigation is used for soils of low permeability.
a. Straight
b. Contour

c. Border strip Irrigation

Borders are long, sloping strips of land separated by bunds. They are sometimes called border strips.
Irrigation water can be fed to the border in several ways: opening up the channel bank, using small outlets or gates or
by means of siphons or spiles. A sheet of water flows down the slope of the border, guided by the bunds on either side.
Border irrigation is generally best suited to the larger mechanized farms as it is designed to produce long
uninterrupted field lengths for ease of machine operations.

2. Localized Irrigation:

Localized irrigation is a system where water is distributed under low pressure through a piped network, in a predetermined pattern, and applied as a small discharge to each plant or adjacent to it. Drip irrigation, spray or microsprinkler irrigation and bubbler irrigation belong to this category of irrigation methods.
a. Drip Irrigation:
With drip irrigation, water is conveyed under pressure through a pipe
system to the fields, where it drips slowly onto the soil through
emitters or drippers which are located close to the plants. Only the
immediate root zone of each plant is wetted. Therefore this can be a
very efficient method of irrigation. Drip irrigation is sometimes called
trickle irrigation.
Drip irrigation is most suitable for row crops (vegetables, soft fruit),
tree and vine crops where one or more emitters can be provided for
each plant. Generally only high value crops are considered because of
the high capital costs of installing a drip system.
b. Spray Irrigation:
Sprinkler irrigation is similar to natural rainfall. Water is pumped
through a pipe system and then sprayed onto the crops through
rotating sprinkler heads.
Sprinkler irrigation is suited for most row, field and tree crops and
water can be sprayed over or under the crop canopy. However, large
sprinklers are not recommended for irrigation of delicate crops such as
lettuce because the large water drops produced by the sprinklers may
damage the crop.
Sprinklers are best suited to sandy soils with high infiltration rates although they are adaptable to most soils.

c. Bubbler Irrigation:
In this method water is applied to the land surface as a small stream
by tubular shaped bubblers that are attached to a buried or on the
surface lateral line. The system is suitable for growing orchards
(particularly for trees over two years of age).

3. Sub-irrigation:
Sub-irrigation also sometimes called seepage irrigation has been used for many years in field crops in areas with high
water tables. It is a method of artificially raising the water table to allow the soil to be moistened from below the
plants' root zone. Often those systems are located on permanent grasslands in lowlands or river valleys and

combined with drainage infrastructure. A system of pumping stations, canals, weirs and gates allows it to increase or
decrease the water level in a network of ditches and thereby control the water table. Sub-irrigation is also used in
commercial greenhouse production, usually for potted plants. Water is delivered from below, absorbed upwards, and
the excess collected for recycling.
Sub-irrigation is used in growing field crops such as tomatoes, peppers, and sugar cane in areas with high water
tables and in commercial green house operations.

Storage, Transport and Marketing of agricultural produce and issues and related constraints
Agricultural marketing system can be analyzed by looking at the farmers marketing practices, marketing channels and
the structure of markets. The marketing system and farmers marketing practices have undergone considerable
changes during the last 50 years owing to the expansion of the size of the market, increased availability of
infrastructure and changes in the pattern of demand and consequently introduction of new methods of processing,
packaging, storage and transportation.
Farmers marketing practices and evolution of marketing system are guided by the shelf-life of the commodity. Cotton
and jute versus fruits, vegetables and milk are contrasting examples of agricultural products having long and short
shelf-life.

Figure Above: A typical grain marketing system

Main characteristics of Marketing
Optimization of input use and output produced: Agricultural marketing leads to the optimization of resource use and
output management. An efficient marketing system can contribute to an increase in the marketable surplus by scaling
down the losses arising out of inefficient processing, Storage and transportation
Increase in farm income: An efficient Marketing system guarantees to the farmers better prices for farm products and
induce them to invest their surpluses in the purchase of modern inputs so that productivity may increase
Widening of markets: A well known marketing system widens market for products, by taking them to remote corners
of the country, to areas far away from the production point

e.g. paddy produced in Punjab and Haryana are sold in remote tribal areas
Growth of agro-based industries: The agricultural marketing system helps in the growth of agro-based industries and
stimulates the overall development process of the economy
Price movements: An efficient marketing helps the farmers in planning their production in accordance with the need of
the economy. This work is carried out through the price signals
Adoption and spread of new technology: The marketing system helps the farmers in the adoption of new scientific and
technical knowledge
Employment: The marketing system provides employment to millions of persons engaged in various activities such as
packaging, transportation, storage and processing
Addition to National income: Marketing activities add to the Nation's Gross National Product
Better living: Any plan of economic development that aims at diminishing the poverty of agricultural population,
reducing consumer food prices, earning more foreign exchange or eliminating economic waste has to pay special
attention to the development of an efficient marketing for food and agricultural products.
Creation of Utility: Marketing creates the following four types of utilities of the product:

Form Utility: The processing function adds form utility by changing the raw material into finished products e.g.
paddy- rice; Wheat- bread, biscuit, cake; Milk- ghee, cream, cheese, skimmed milk, butter
Place Utility: The transportation function adds place utility to products by shifting them to a place of need
from the place of plenty e.g. potatoes in plain, milk at urban places
Time Utility: The storage function adds time utility to the products by making them available at the time when
they are needed e.g. tamarind, rice in offseason
Possession Utility: The marketing functions buying and selling helps in the transfer of ownership of goods
from one person to another in the marketing system

Issues and performance indicators

Agricultural price policy is basically aimed at intervention in the agricultural produce markets with a view to
influencing the level of fluctuations in prices and price-spread from farm-gate to the retail level. The instruments of
agricultural price policy comprised mainly the controls/restrictions of various forms, imports of food grains and
distribution of imported grains at below the market prices.
Agricultural Price Commission
APC was set up in 1965, to advise the government on a regular basis, for evolving a balanced and integrated price
structure. While formulating the price policy, the Commission was required to keep in view not only the need to
provide incentives to the farmers for adopting the new technology and maximizing production but also the likely
effect of the price policy on cost of living, levels of wages and industrial cost structure. The thrust of the policy had
been to achieve the twin objectives of assuring remunerative prices to the farmers and providing food grains to the
consumers at reasonable prices.
Important policy instruments currently in vogue include:

Assurance of minimum support prices for 24 crop products

Selective market intervention scheme (MIS) for other crops

Note: The Market Intervention Scheme (MIS) is an ad-hoc scheme under which are included horticultural commodities
and other agricultural commodities which are perishable in nature and which are not covered under the minimum
price support scheme. In order to protect the growers of these horticultural/agricultural commodities from making
distress sale in the event of bumper crop during the peak arrival period when prices fall to very low level, Government
implements M.I.S. for a particular commodity on the request of a State Government concerned.

Imposition of levy on rice millers and sugar factories for procurement of a specified quantity of rice and sugar
Implementation of statutory minimum support prices in case of sugarcane as the buyer for this is only sugar
factories
Maintenance of buffer stocks of wheat and rice
Distribution of food grains and sugar under PDS in limited quantities at subsidized prices
Open market purchases of some commodities by public agencies at market prices during the peak arrival
period and also their open market sales at fixed prices
Encouragement to producers cooperatives to undertake marketing on behalf of the farmers
Regulation of the activities of traders and processors
Creation of marketing infrastructures for facilitating marketing of agricultural commodities

Impact of Agricultural Price Policies

The policy has been instrumental in creating a fairly stable price environment for farmers to induce them to adopt new
production technology and thereby increase the output of food grains
Geographically dispersed growth of cereal production during the last two decades coupled with public distribution
system of cereals helped in increasing the physical access to food
Supply of subsidized inputs to farmers and subsidized distribution of food grains, which enabled to keep the real prices
of cereals declining vis-a-vis the per capita income, helped in improving the economic access to staple food grains
Apart from the increase in physical and economic access to food and an assurance of a reasonable return to growers of
staple food, the incentive framework created by the price policy helped in diversification of cropping and production
pattern in agriculture.
Owing to the decline in the real prices of basic staple food, the industry and the organized sector could keep their wage
bills low, as rice and wheat have a considerable weight age in the consumer price index.
The kind of policy and programmes followed in the country resulted in some distortions in the normal functioning of
the open market. For example, in the case of cereals, while the spread between wholesale and retail prices was not
found to be excessive, the inter year price rise has been considerable lower and, in several situations, was even lower
than the storage cost, which did not encourage the participation of private trade in storage and related trading
activities in food grains.
Market intervention, through price policies, has been cautious and selective and market imperfections observed are
due to infrastructure bottlenecks, stringently market regulations, lack of market information flows and such other
factors and not necessarily due to pricing policies pursued in the country. By and large, the policies benefited farmers
as well as the consumers but by their very nature and objectives affected the participation of private sector in the
marketing of commodities covered by these policies. The situation in recent years has considerably changed. In several
commodities, the volume of commodities entering the markets has considerably gone up. The participation of private
sector is becoming more important. It is in this context that there is a need for a relook at the policies and reformulate
them to attract private sector participation in agricultural marketing at a large scale. In the emerging circumstances,

a road map has to be laid for an agricultural pricing policy with twin emphasis on economic viability and generation of
enough incentives to the farmers for making further investment in agriculture and more particularly in its
diversification.
Options for Farmers
1. There will be need for adoption of varieties suitable for different times of sowing, different durations of
maturity and those amenable to processing
2. Farmers would need to learn the methods of preparing the produce for market, viz., cleaning, grading and
packaging at the farm level which will not only fetch better prices for their products but also reduce physical
losses during postharvest handling
3. They will also need to keep track of the prices of different grades/varieties in nearby and other markets and
sell the produce where the net prices realized by them are the highest
4. They will have to keep track of the facilities like pledge-loan available to them and judiciously use such facilities
5. In the coming years, farmers would need to reduce their price risks by entering into advance agreements with
processors or bulk buyers
6. Farmers would need to increasingly organize themselves into groups or cooperatives for the purposes of
marketing of their products, value addition and processing
Direct Marketing
Direct marketing encourages farmers to undertake grading of farm produce at the farm-gate and obviates the
necessity to haul produce to regulated markets for sale. Direct marketing enables farmers and processors and other
bulk buyers to economize on transportation costs and to considerably improve price realization.
In South Korea, for instance, as a consequence of expansion of direct marketing of agricultural products, consumer
prices declined by 20 to 30 per cent and producer-received prices rose by 10 to 20 per cent. This also provided
incentive to large-scale marketing companies to increase their purchases directly from producing areas.
Direct marketing by farmers to the consumers has been experimented in the country through Apni Mandis in Punjab
and Haryana. The concept, with certain improvements has been popularized in Andhra Pradesh through Rythu Bazars
and in Tamil Nadu as Uzhavar Santhaigal. At present, these markets are being run at the expense of the State
exchequer, as a promotional measure, to encourage marketing by small and marginal producers of fruit and vegetables
without the help of the middlemen. Considering the vastness of the country, more and more such markets need to
come up in the organized sector so that they can be developed in tune with the backward & forward linkages.
Contract Farming
In the wake of economic liberalization, the concept of contract farming in which national or multinational companies
enter into contracts for marketing of the horticultural produce and also provide technologies and capital to contract
farmers has gained importance. According to this, bi-party agreements are made between the farmer and the
company and the latter contributes directly to the management of the farm through input supply as well as technical
guidance and also markets the produce.
The main features of this type of contract farming are that selected crops are grown by farmers under a buy back
agreement with an agency engaged in trading or processing. In such cases, the centralized processing and marketing
agencies supply technology and resources, including planting materials and occasional crop supervision. Under such
contracts, the farmer assumes the production related risks, while the price risk is transferred to the company.
Agriculture Price Policy

Agricultural prices derive their meaning and significance from the stage of marketing to which they relate. It is because
of the wide range of marketing methods which may operate in individual countries, and the consequent wide variety of
price quotations available, that it has been found most appropriate to use the principle of farm-gate prices (actual or
national) for the purposes of agricultural price statistics. Thus, the costs of transporting agricultural produce from the
farm to the market or to the first point of sale off-farm, and of selling it there (whether these activities are performed
by the farmer himself or by specialized agents) are not, by definition, to be included in the farm-gate price.
Wholesale price accordingly is the rate at which a relatively large transaction, generally for further sale, is affected.
Wholesale prices of selected crops are collected daily as well as on Fridays on a regular basis from the selected
markets/centers spread all over the country by the Directorate of Economics and Statistics, Ministry of Agriculture,
Government of India as well as by the respective state government under the Market Intelligence Scheme.
Retail prices are established in transactions in which quantities dealt with are relatively smaller than in wholesale
transactions and in which the final consumers of the agricultural product participate as buyers. Retail prices are used in
constructing consumer price indices, in undertaking studies into cost of living and levels of living, and in determining
cost of living allowances for wage earners.
The Labour Bureau, Ministry of Labour, Government of India has been entrusted with the task of collecting retail
prices at the national level. The retail prices of few commodities are collected through the National Sample Survey
Organization (NSSO) from a set of 422 villages for building up the consumer price index numbers.
The Directorate of Economics and Statistics also collects daily retail prices of vegetables, fresh fruits, fish, livestock
products and food grains from 90 centres and weekly retail prices of agricultural commodities from 215 centres.
Export prices are determined in export markets for products intended for delivery outside the customs boundary of the
country.
The concept of prices paid by a farmer is the counterpart of prices received by a farmer and covers all prices paid by
him as he participates in the transaction of goods and services in his capacity as a buyer of the means of agricultural
production.
Food Corporation of India
An efficient management of the food economy with a view to ensuring an equitable distribution of food grains at
reasonable prices to the vulnerable sections of society is essential in the present socio economic environment of the
country. Food Corporation of India (FCI) was born on January 01, 1965. It has initially served only four States in the
southern part of the country. Later on it extended its services throughout the country. The main functions of FCI are:
a. To procure a sizeable portion of the marketable surplus of food grains and other agricultural commodities at
incentive prices from the farmers on behalf of the Central and State Governments
b. To make timely releases of the stocks through the public distribution system (fair price shops and controlled
item shops) so that consumer prices may not rise unusually and unnecessarily.
c. To minimize seasonal price fluctuations and inter-regional price variations in agricultural commodities by
establishing a purchasing and distribution network
d. To build up a sizeable buffer stock of food grains to meet the situations that may arise as a result of shortage in
internal procurement and imports
Marketable Surplus

The marketable surplus is that quantity of the produce, which can be made available to the non-farm population of
the country. The marketable surplus is the residual left with the farmers after meeting his family consumption, farm
requirements, social and religious payments.
On a particular farm, the quantity of marketable surplus depends on the following factors.
1) Size of holding
2) Production of Commodity
3) Price of the Commodity
4) Size of family and
5) Requirements of seeds and feed
Marketed surplus is that quantity of the produce, which the farmer actually sells in the market, irrespective of his
requirements for family consumption, farm requirements, social and religious payments. The marketed surplus may be
more, less or equal to the marketable surplus.
The marketed surplus may be even higher than the marketable surplus. This is what is called distress sale, which is
particularly true in food grains and other food items on marginal and some small farms.
Role of Government
1. Framing of rules and regulations for the protection of the interest of some sections of the population. This may
include restriction on activities of traders, licensing and market regulation
2. Promotional activities such as storage and warehousing, transportation and communication facilities, credit
facility, grading and standardization, and encouragement of co-operative marketing
3. Administration of prices at different levels of marketing guaranteeing minimum support prices to producers,
providing commodities at fair prices to consumers, and fixing the rates of commission charged by commission agents
4. Influencing supply and demand by import, export, internal procurement and distribution
Marketing Channels and Functionaries
The marketing channels for agricultural commodities in general can be divided into following four broad groups:
1. Direct to consumers
2. Through wholesalers and retailers
3. Through public agencies or cooperatives, and
4. Through processors
Main features of marketing channels
1. The proportion of marketed surplus going directly from the farmers to consumers continues to be small
(around one or two per cent) and has decreased over the years due to the increase in marketed surplus,
shifting of processing from consumer to the processors and increase in the demand for packed and branded

products. The government is encouraging direct marketing by the farmers through such schemes as apni
mandi, rythu bazaar and uzhavar santhals.
2. The private trade, despite government intervention, has continued to dominate the trade in agricultural
commodities.
3. The main functionaries in the marketing channel for agricultural commodities include village traders, primary
and secondary wholesalers, commission agents, processors and retailers including vendors. Public agencies,
farmers cooperatives and consumers organizations also perform many of these marketing functions.
4. Marketing channels for various cereals in India are more or less similar
Majority of the States has enacted the Agricultural Produce Market Acts. Infrastructure in the regulated markets has
been created as per the need in terms of volume of market arrivals.
The establishment of regulated markets helped in creating orderly and transparent marketing conditions in primary
assembling markets. Increase in the number of regulated market yards, from a meagre 286 at the time of
Independence to 7,161 in 2001, helped in increasing the access of farmers to such orderly market places. This
development, coupled with construction of approach roads and roads network linking primary markets with
secondary wholesale and terminal markets, also improved the process of price discovery at the primary market level
where most of the small farmers dispose off their produce. Increase in physical access of farmers to market places,
apart from reducing transaction costs of farmers, helped small farmers more who have low marketed surplus and could
not transport their surpluses to long distances.
State Agricultural Marketing Boards
Main functions of SAMBs are
1. To carry out the training of officers and staff, create facilities for grading and standardization, construct
market road etc.
2. To tender advice to the government on the functioning of market committee and on improvement in
agricultural marketing as and when referred
3. To frame bye-laws, help in the functioning of market committees and supervise their operations
Council of State Agricultural Marketing Boards
The COSAMB, an apex body of the State Marketing Boards was established in February 1988. The need for such a body
was felt to co-ordinate the activities of State Marketing Boards, especially those connected with credit mobilization,
central assistance for market development and some common problems.
Cooperative Societies
Establishment of co-operative marketing societies is another step taken to overcome the problems arising out of the
present system of marketing agricultural produce. A cooperative sales association is a voluntary business organization
established by its member patrons to market farm products collectively for their direct benefit. It is governed by
democratic principles, and savings are apportioned among members on the basis of their patronage.
Functions of Cooperative Marketing Societies
1.
2.
3.
4.

To market the product of the members of the society at fair prices

To safeguard the members from excessive marketing costs and malpractices
To make credit facilities available to the members against the security of the produce brought for sale
To make arrangements for the scientific storage of the member's produce

5.
6.
7.
8.
9.
10.

To provide the facilities of grading and market information which may help them to get a good price for their
produce
To introduce the system of pooling so as to acquire a better bargaining power than the individual members
having a small quantity of produce for marketing purposes
To arrange for the export of the produce of the members so that they may get better returns
To act as an agent of the government for the procurement of food grains and for the implementation of the
price support policies
To make arrangement for the transport of the produce of the members from the villages to the market on
collective basis and bring out a reduction in the cost of transportation
To arrange for the supply of inputs required by the farmers such as improved seeds, fertilizers, insecticides and
pesticides

Suggestions for strengthening of Cooperative Marketing Societies

1. The area of operation of societies should be large enough so that they may have sufficient business and
become viable
2. Storage facilities, transport facilities, accommodation and drinking facilities should be strengthened in the
societies
3. Cooperative feeling among members should be inculcated by proper education and adequate representation
should be given to small and marginal farmers in their organizational set up
4. In selection of officials of cooperative marketing societies weight age should be given to business experience
and qualification
Physical Supply and Distribution
It includes determining warehouse locations (establishing a material handling system, maintaining an inventory control
system, establishing procedures for Marketing and Markets processing orders) and selecting mode of transportation.
Transportation and storage account for the major share in the total distribution cost. Transportation is a necessary
function of marketing because most of the markets are geographically separated from the areas of production. It
enhances the economic value through creation of place utility. The important functions of transport are:

It helps in the growth of industries whose products require quick marketing. e.g. vegetables, flowers, milk and
fish
It increases the demand for goods through widening of market
It creates place utility. As such transportation bridges the gap between production and consumption centers
By virtue of improvement in the speed of transport it offers time utility to products
It helps in stabilization of prices by moving commodities from surplus area to deficit area
Ensures even flow of goods into the hands of consumers
It enables consumers to enjoy the benefits of many goods not produced locally
Transport intensifies competition, which, in turn, reduces prices

National Institute of Agricultural Marketing

The National Institute of Agricultural Marketing (NIAM) is a pioneering national level organization set up by the
Government of India in year 1988 for offering specialized training, education and consultancy and for undertaking
research in agricultural marketing. It is an autonomous body under the aegis of Ministry of Agriculture (previously of
Ministry of Rural Areas and Employment), Government of India. The Institute is being developed as a Centre of
Excellence in the field of Agricultural Marketing (NIAM, 2000). The following functions have been assigned to the
Institute:

1. To provide specialized training in agricultural marketing for entrepreneurs and institutions by offering and
sponsoring specialized marketing courses at various levels as necessary to supplement existing facilities
2. To undertake research in agricultural marketing for government, cooperatives and other institutions for
demonstrating and replication of the advanced management techniques in this field
3. To provide advisory and consultancy services to marketing enterprises (state, private and cooperatives) in the
field of agricultural marketing
4. To develop and formulate investment projects in the field of agricultural marketing for public, cooperative and
private institutions
IT in agricultural Marketing
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. National Informatics Centre (NIC) is the nodal Scientific & Technology
organization in the Ministry of Communications & Information Technology, for informatics development and
networking in government, corporate and cooperative sectors for decision support. NIC provides the state-of-the-art IT
solutions to information management, information dissemination, and decision support requirements of the Central as
well as state Governments, the Corporate Sector and the Cooperative Sector.
Codex Alimentarius Commission
To develop food standards, guidelines and related texts such as codes of practice under the Joint Food and Agriculture
Organization (FAO) and World Health Organization (WHO) Food Standards Programme, the Codex Alimentarius
Commission was created in 1963 by FAO/WHO. The main purposes of this Programme are protecting health of the
consumers and ensuring fair trade practices in the food trade, and promoting coordination of all food standards work
undertaken by international governmental and non-governmental organizations. The Codex Alimentarius Commission
envisages a world affording the highest attainable levels of consumer protection, including food safety and quality. To
this end, the Commission will develop internationally agreed standards and related texts for use in domestic regulation
and international trade in food that are based on scientific principles and fulfill the objectives of consumer health
protection and fair practices in food trade.
APMC Act
APMC acts run on two principles:

Ensure that intermediaries (and money lenders) do not compel farmers to sell their produce at the farm gate
@throwaway prices=farmer is not exploited
All food produce should first be brought to the market yard=> sell through auction=farmers get good money.

Under APMC Acts:

A State is geographically divided and Market (Mandis) are established at different places within the states.
Farmers have to sell their produce through the auction @mandi.
To operate in Mandi, a trader has to get license.
Wholesale, retail traders (e.g. shopping mall owner) or food processing company etc. cannot buy farm output
directly from farmer. Theyve to get it through the Mandi.

Earlier APMC Acts had issues

Middlemen @Mandi charge commission on both seller (farmer) + buyer (the urban retailer / food processor)
leading to high consumer prices and low producer prices
during peak season, when they buy from farmer @low prices, they dont drastically reduce the prices to final
consumer.
Middlemen have no facilities to do grading/sorting, all they do is pass the produce from farmer to final
consumer. Thus, post-harvest losses continue to be in the range of 18 to 40 per cent for several commodities
Licensing issues

Model APMC Act, 2003

Farmer doesnt need to bring his produce to APMC Mandi. He can directly sell it to whomever he wants.
(Although, if he doesnt bring his produce to Mandi, then he cant run for election in that APMC marketing
committee.)
Farmers Processors, exporters, graders, packers, etc. can buy agricultural produce directly from farmers.
Permits Private market yards, Direct Purchase Centers, farmers market for doing trade in agriculture produce
(monopoly of Mandis=destroyed)
Public Private Partnership in the management and development of agricultural markets in the country for
post-harvest handling, cold storage, pre-cooling facilities, pack houses etc.
Regulate and promote contract-farming arrangements in the country.
Establish State Agricultural Produce Marketing Standards Bureau

Model APMC act is not uniformly adopted, states have made their own modifications.
Recommendations

Remove horticulture: Horticulture should be specifically excluded from definitions of APMC because these
Mandis are main culprits for inflation and wastage of fruits and veggies.
E-Auction: All APMCs Mandis should introduce electronic auction platform
Open Membership: Open membership of APMCs by encouraging wholesalers and retailers to enter into
transactions with the growers.
No License: Anyone should be allowed to trade in APMC market. Licensing system should be abolished. The
APMC Market Committee should only fix the transaction fee and keep a Bank Guarantee from traders to ensure
that the farmers payment is not affected.
No Cess/Tax: all the taxes/cess levied in APMC Mandis should be abolished.

e-technology in the aid farmers

In the context of agriculture, the potential of information technology (IT) can be assessed broadly under two heads :
1. as a tool for direct contribution to agricultural productivity
Precision farming, popular in developed countries, extensively uses IT to make direct contribution to agricultural
productivity. The techniques of remote sensing using satellite technologies, geographical information systems,
agronomy and soil sciences are used to increase the agricultural output. This approach is capital intensive and useful
where large tracts of land are involved. Consequently it is more suitable for farming taken up on corporate lines.
2. as an indirect tool for empowering farmers to take informed and quality decisions which will have positive
impact on the way agriculture and allied activities are conducted

The indirect benefits of IT in empowering Indian farmer are significant and remain to be exploited. The Indian farmer
urgently requires timely and reliable sources of information inputs for taking decisions. At present, the farmer
depends on trickling down of decision inputs from conventional sources which are slow and unreliable. The changing
environment faced by Indian farmers makes information not merely useful, but necessary to remain competitive.
While relevant information of the required quality always had the potential of improving efficiency in all spheres of
activity of Indian farmer, the emerging scenario of a deregulated agriculture, thanks to WTO, has brought in a need
and urgency to make it an integral part of decision making. Consequently, deploying IT as a strategic tool for the benefit
of rural India has assumed importance. Since information needs of the Indian farmers in general are documented
extensively, it is more pertinent to focus on the theme in the context of challenges raised by WTO.
Awareness Databases
The mandatory changes in government policies on tariffs, imports, year wise phasing of the same, and impact on
various subsidy schemes would be of concern to people. The macro economic situation related to foreign exchange,
inflation, the current tariff structure within and outside the country etc. and their likely impact on Indian agriculture
will have a direct bearing on the decisions of segments of Indian agriculture.
Decision Support Systems for farmers
The data on cost of cultivation, efficient agricultural practices and availability of inputs will facilitate in assessing the
strengths of indigenous products vis a vis the imports. Opportunities for specialization may lead to better export
potential. Similarly, forecasts on threats in terms of information related to cheaper imports, macro-economic
conditions of other countries are also required.
Systems that facilitate Indian farmers to forge appropriate alliances for collective benefit
In order to remain competitive and derive better price realizations, it will be imperative for the farmers to come
together through cooperative alliances. It is possible to relieve the farmers of geographical barriers by facilitating
farmers to come together online and facilitate disposal of their produce at attractive prices. Online bidding can be
introduced for various agricultural product categories. This will require development of complicated IT systems which
are to be supported by proper brick and mortar infrastructure and post harvest technologies, storage, etc.
Opportunities in the new order
It is necessary to equip Indian farmers to come together for value additions to their agricultural output. This will get
them better returns from their produce and at the same time generate new employment opportunities in the rural
sector. This will require systems to provide information to farmers on agro processing industries, aqua culture units,
animal husbandry, floriculture, etc. The opportunities for setting up such units, procedures related to exports, the
quality norms to be adopted, packaging, etc. are to be made available.
Monitoring
Advance warning systems to alert the farmers are required to be developed. It is necessary to promote monitoring
cells in all major institutions related to agriculture and allied activities to maintain data, provide periodic analytical
reports and raise advance alerts.
Constraints

1. Haphazard development: It is observed that some initiatives have already been made to provide IT based
services to rural community. However, duplication of efforts are witnessed as most of the services revolve
around limited subjects
2. User friendliness: The success of this strategy depends on the ease with which rural population can use the
content. This will require intuitive graphics based presentation. Touch screen kiosks are required to be set up
to encourage greater participation
3. Local languages: Regional language fonts and mechanisms for synchronization of the content provides a
challenge that needs to be met with careful planning
4. Restrictions: Information content based on remote sensing and geographical information systems can
provide timely alerts to the farmers and also improve the efficiency of administration. However, governments
map restriction policies often threaten to stifle the optimal utilization of these tools
5. Power Supply: In most of the rural India, power supply is not available for long hours. This will reduce the
usefulness of the intended services.
6. Connectivity: Despite the phenomenal progress made in the recent years, the connectivity to rural areas still
requires to be improved. Reliable connectivity is a prerequisite for a successful penetration of IT into rural areas
7. Bandwidth: Even in areas where telephone and other communication services exist, the available bandwidth
is a major constraint. Since internet based rural services require substantial use of graphics, low bandwidth is
one of the major limitations in providing effective e-services to farmers
8. Dissemination Points: Mass deployment of information kiosks is critical for effective use of the Internet based
content and services. This requires a major focus on a viable revenue model for such kiosks. In the new
information era, the kiosks should be designed to become electronic super markets that can, in addition to
being information sources, handle other services of use to the people living in rural areas.