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The Agriculture Ministry has prepared a draft National Agricultural Marketing Policy in line with the government’s aim to ensure fair prices by improving the marketing system for the socio-economic development of farmers.
This policy, if implemented, will ensure the minimum fair price for farmers and fix the maximum rational price of agricultural products.
It will also develop the market infrastructure, increase the number of agricultural entrepreneurs, including women entrepreneurs, and ensure the development of a well-coordinated supply chain, according to the draft.
Moreover, the policy will help increase the export of agricultural products, decrease the economic disparity between rural and urban areas, as well as bring about accountability in agribusinesses.
According to the draft policy, the establishment of a dynamic marketing system will lead to the development of a sustainable agricultural marketing system.
Infrastructures
To ensure the proper delivery of the produce from the farmers or investors to the consumers, a market infrastructure with modern facilities, packing houses, cold storage, warehouses, processing centres and an online infrastructure will have to be constructed and the skills of the people concerned will have to be developed as well, says the policy.
Modern and digital market infrastructure will be developed in high production areas to ensure proper supply and preservation of agricultural produce.
Special priority will be given to the development of agro-processing zones for the value addition of these products, increase in exports and development of agribusinesses.
The government has put emphasis on developing internationally recognized infrastructures for quality control and certification of the products.
Expansion
Several initiatives have been mentioned in the draft policy for the development of agro-processing business and expansion of multipurpose use of agricultural products. The ones that will be given utmost importance are the development of agro-businesses and the creation of entrepreneurs through the processing of various vegetables and fruits.
Priority and training will be given in processing cum training centres, including the use of various types of machinery, in agricultural production areas. Training and technical assistance will also be provided to create micro or small entrepreneurs in processing.
Measures will be taken to strengthen the agreements, memorandums and relations with companies in other countries to increase the export of processed agricultural products.
The draft also says that initiatives will be taken to popularise and expand the market of processed agro-products at the regional, specialized, conventional, non-conventional and household levels.
An efficient and effective integrated supply chain will reduce the cost of doing business and expand the market by removing institutional weaknesses, it says.
It adds that the government will develop a supply chain system, from producers to consumers, in a low-cost, quick, controlled and systematic manner.
Arrangements will be made for timely transportation of products by road, waterway, railway and air. Steps will also be taken to facilitate the transportation of products through the coordination of government and private organisations.
Stabilising prices
To prevent price hikes due to production costs, the prices of agricultural materials will be kept affordable and the amount of required subsidy will be fixed, says the draft policy.
Rational pricing will be implemented at the wholesale and retail levels based on the production and marketing costs of the farmers to prevent exorbitant profits from agricultural commodities.
The government will take steps to prevent artificial crises in the market, hoarding and other illegal activities.
Farmers will be encouraged to produce a specific amount of crops according to regional demand. Also, direct marketing activities will be conducted during any unstable situation or crisis.