Trends and Challenges of Agriculture Marketing in India

Over time, India'sagricultural sector has undergone a remarkable transformation, evolving from a largely subsistence-based industry into a vibrant and increasingly market-driven one. The past two years have seen brisk growth in the agriculture sector (Economic Survey, 2022-23). This sector, which employs the largest portion of the population, contributed a significant 18.8% to the country's Gross Value Added (GVA) in 2021–2022, with growth rates of 3.6% in 2020–2021 and 3.9% in 2021–2022 (Ramaswamy, 2022). A number of interrelated factors, such as shifting consumer preferences, technological advancements, policy changes, and globalisation, have driven this transformation in India'sagricultural landscape. In addition to significantly impacting the livelihoods of millions, India'sevolving agricultural market has positioned the country as a key player in the global agricultural market. Traditionally, Indian agriculture was characterised by small landholdings, antiquated farming methods, and a heavy reliance on monsoons. With a substantial portion of the population engaged in subsistence farming, food security was the primary concern. However, recent years have witnessed a noticeable shift towards a more market-oriented approach.

The growing understanding of agriculture as an essential part of the Indian economy has been one of the major forces behind this shift in perspective. It makes a sizable contribution to the GDP and job creation of the nation (Ministry of Agriculture and Farmers Welfare, 2022). A reevaluation of agriculture'splace in the national development agenda has resulted from the realization that it can be a source of both prosperity and sustenance (Mukherjee, 2021). The agricultural landscape has changed significantly as a result of technological advancements and the adoption of modern agriculture (Singh & Pal, 2020; World Bank, 2021).

Agriculture market in India and the number of farmers using it: Agriculture plays a significant role in India'seconomy, contributing approximately 16–17% of the nation's Gross Domestic Product (GDP) (Ministry of Finance, 2022). Over half of India'spopulation relies on agriculture for their livelihood, making it the largest employer in the country. In fact, 58% of the labour force is employed in agriculture and related industries (National Sample Survey Office, 2021). India'sagricultural market is crucial for ensuring food security, producing essential crops like wheat and rice that form the backbone of the nation'sfood supply. The government purchases grains from farmers to distribute through the Public Distribution System (PDS) and other welfare programs, ensuring food accessibility across the country (Food Corporation of India, 2022). For millions of farmers nationwide, the agriculture market serves as their primary source of income, with the prices they receive for their produce significantly impacting their livelihoods. The National Agricultural Market (e-NAM) initiative aims to provide farmers with better access to markets. By offering a unified electronic trading platform, e-NAM enables farmers to sell their produce across different markets and states, reducing the reliance on middlemen and ensuring better prices (Ministry of Agriculture and Farmers Welfare, 2022).

Moreover, India is a major exporter of various agricultural products, including rice, wheat, spices, and cotton, contributing significantly to the global agricultural market. These exports not only increase foreign exchange revenue but also provide farmers with additional income (Export-Import Bank of India, 2021).

By September 2021, over 1,000 wholesale markets (mandis) across 18 states and union territories had adopted the e-NAM platform, drawing increasing attention from farmers and traders alike (Ministry of Agriculture and Farmers Welfare, 2021). Millions of farmers were already selling their produce on the e-NAM platform, reflecting its growing influence. However, many small and marginal farmers in remote and rural areas continue to rely on traditional local markets or intermediaries to sell their produce, despite the expanded access to formal markets provided by programs likee-NAM (Kumar & Joshi, 2022). The extent of participation informal agricultural markets varies significantly across different geographic regions. The adoption of formal agricultural markets varies widely among Indian states and regions, with farmers in areas with well-developed agricultural infrastructure and market connectivity more likely to participate in these markets (National Sample Survey Office, 2021; Singh & Gupta, 2020). Several factors, including government regulations, technological advancements, and shifts in market dynamics, can influence the degree to which farmers utilize formal agricultural markets overtime (Sharma, 2021). Although there are ongoing initiatives to increase farmers' access to formal markets, the widespread adoption of such markets may take time (World Bank, 2021). 1.1 Marketing Infrastructure Farmers are frequently unable to obtain accurate market prices across various markets, leading them to accept whatever prices traders offer (Niti Aayog, 2021). To address this issue, the government regularly broadcasts market prices on radio and television, and newspapers also inform farmers about the latest price changes (Ministry of Information and Broadcasting, 2021). Despite these efforts, many poor Indian farmers sell their produce immediately after harvest, even though prices are typically very low at that time (Sharma & Gupta, 2022).

The extensive network of middlemen in the agricultural market has significantly reduced the proportion of profits that farmers receive (Kumar, 2020). India'stransport infrastructure is severely lacking, with only a few villages connected to mandis by railways or paved roads. As a result, produce often has to be transported using cumbersome conveyances like bullock carts. This type of transportation is impractical for long distances, forcing farmers to sell their harvests in nearby markets, even if the prices are extremely low (World Bank, 2021). This issue is particularly problematic for perishable goods, which cannot be stored for long periods (Singh & Verma, 2021). 1.2 Problems in agriculture marketing: The majority of farmers today are struggling financially and are unable to afford high-quality pesticides and seeds from High Yielding Varieties (HYVs), which results in poor productivity (P. Lalita et al., 2020). The situation is exacerbated by the fact that markets often sell goods at very low prices or prices continue to decline. Market middlemen also take a significant portion of the farmers' output without adding value, further diminishing farmers' incomes and forcing them to borrow money from these intermediaries while selling their produce at reduced prices (P. Lalita et al., 2020).

In many villages, farmers lack access to proper storage or warehousing facilities. Due to inadequate storage options, 15 to 30 percent of agricultural produce is destroyed annually by pests or weather conditions (Nalange et al., 2019). Consequently, farmers are often compelled to sell their excess produce immediately after harvest at very low prices, which are unprofitable. Extreme poverty and limited access to appropriate credit facilities prevent most Indian farmers from waiting for better prices (K. Manoj, 2018). This leads them to sell their produce under distress to local moneylenders and traders at significantly reduced prices (K. Manoj, 2018).

The current agricultural marketing system lacks sufficient storage facilities. The absence of proper storage means farmers must sell their products at low prices, as they cannot store them safely until market conditions improve. Inadequate and unscientific storage facilities contribute to substantial grain wastage, with pests causing about 20% to 30% of grains to be lost, costing farmers millions of dollars annually (Nalange et al., 2019).

The literature about the agricultural sector and its role in economic development are widely available. We have review them below Prabhakara B.N. (2014), examines that the focus on market failure paved the way for market-driven liberalisation aimed at achieving "prices and institutions right." State-run marketing boards and producer marketing chains, which span from credit unions to farmer cooperatives to wholesale cooperatives, have emerged as a result. The state must devote all of its resources to bolstering the competitive marketing system before the producer can have access to market prices that are competitive. Royce (2004), try to assess and explain that cooperative management authority is still limited because state agencies are still the primary suppliers of input and buyers of output. On-farm decision-making and member participation are significantly higher.

Ramkishen (2004) in his research paper, contended that the grower loses out on a good price for his produce during the peak marketing season due to inadequate food processing and storage, while consumers unnecessarily pay a higher price during the lean season.

Rajendran and Karthikesan (2014) conducted a study which revealed that small-scale farmers must be integrated into the market and educated about concepts such as supply and demand, which are fundamental to the economy, to prevent them from being excluded from the advantages of agricultural produce.

Thomas Sunny (2011) in his work “Growth and Composition of Indian Agriculture Exports during Reform Era," explains that the majority of countries rely heavily on Indian agricultural products for marketing, as they present significant opportunities. India'sagricultural sector has grown significantly. The contribution of agriculture-related exports to the country'snet exports had decreased significantly.

M. Vikram Kumar, Dr. P. Chenchu Reddy and A. M. Mahaboob Basha (2014), discusses the challenges faced by farmers in marketing their agricultural products in India. The paper highlights the importance of developing effective marketing strategies and information systems to help farmers sell their products at better prices. The authors suggest that the government should playa more active role in developing unique marketing strategies for the agricultural sector in India. M. Selvaraj & M. Syed Ibrahim (2012) gives a thorough analysis of India'sagriculture marketing situation as of right now. It covers a range of topics and difficulties facing the business, looks at how technology is affecting it, and offers case studies of creative marketing techniques in action. The report emphasises the significance of effective backward and forward integration with agriculture, which has produced production systems that are cost-and quality-competitive on a worldwide scale. M. Shanmukh Raju, M. Rama Devy and P. V. Sathya Gopal (2022) A study in Andhra Pradesh assessed the knowledge of e-NAM registered farmers about the electronic trading portal. Most farmers were aware of registration and quality assaying fees and the ability to acceptor reject bids. However, their overall knowledge level was moderate. Factors like education, extension contact, market orientation, income orientation, mass media exposure, risk orientation, and social participation were related to knowledge scores, collectively explaining about 59.90% of the variation. The study recommends providing training to enhance farmers' utilization of e-NAM.

Jaiprakash Bisena and Ranjit Kumar (2018) The paper reviews developments in Indian agricultural marketing with a focus on addressing challenges in implementinge-NAM, aiming to double farmers' income and reduce poverty inline with SDGs. The study identifies challenges in e-NAM implementation related to Infrastructure, Institution, and Information (3 I's) and recommends strengthening the supply chain with public-private interventions. It also suggests amending state APMC Acts to supporte-tendering and raising awareness among farmers about the benefits of e-NAM.

Rakesh Rathore and Shubhaom Panda (2019) paper explain Agricultural marketing is of utmost importance to India'seconomy, providing employment for 65% of the workforce. This field encompasses primary, secondary, and terminal market functions. The paper delves into government initiatives and the growing demand for food products. Regulatory measures under the Agricultural Produce Market Committee (APMC) Act promote both market regulation and contract farming. The electronic National Agriculture Market (e-NAM) is a significant force behind market modernization and integration. The primary objective of this study is to identify the perception and present situation of agriculture marketing system in India and outline the issues in agriculture marketing in India, the another objective is to measures for improvement in agriculture marketing in India and participation of farmers in e-NEM.