The agriculture sector in India is growing at around 3.5%. In the last few years the growth in the agriculture sector is constrained due to the challenges on the marketing side. The following are the challenges on the upstream and the downstream process of agricultural marketing:
Upstream challenges:
- Lack of cold storage facilities for perishable agricultural commodities
- Lack of processing facilities
- Lack of assaying facilities
Downstream challenges:
- Lack of transportation facilities linking the rural areas
- Most of the states not allowing private wholesale mandis
- Direct sale by farmers to retails chains (contract farming) is also restricted by most states
- Lack of formal/organized players in retail sector
The reforms launched in the last few years like Model Agricultural Produce and Livestock Marketing Act 2017, ‘Model Contract Farming Act 2018, SAMPADA scheme etc. will definitely help in resolving the above-mentioned challenges and will play a critical role in doubling farmers income.