R.R.KIRUTHIKABTH-12-009

ROLE OF MARKETING INSTITUTIONS

IN AGRICULTURAL DEVELOPMENT

IN INDIA

MARKETING INSTITUTIONS

Marketing institutions are business organizations which

have come up to operate the marketing machinery ,including formulation and implementation of rules.

They perform one or more of the marketing functions.

Institutions involved in agricultural marketing involves Individuals Corporate Co-operative Government institutions

ROLE OF MARKETING INSTITUTIONS

The framing of rules and regulations for the protection of the interest of some sections of the population. These may relate to the grant or restriction of monopolies, restriction on the activities of traders, licensing and market regulation.

Establishment of organizations , to provide services to the farmers for performing certain marketing functions.

Promotion of farmers cooperative societies for agricultural marketing and agro processing.

Creating of market infrastructure such as storage and warehousing, transportation and communication facilities, credit facility, grading and standardization.

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 of agents.

Influencing supply and demand by regulating import, internal procurement and distribution.

INSTITUTIONS

Public sector institutions 1.Directorate of marketing and Inspection (DMI)

2.Commission for Agricultural Costs and Prices (CACP) 3.Food Corporation of India (FCI) 4.Cotton Corporation of India (CCI) 5.Jute Corporation of India (JCI) 6.Specialized Commodity Boards 7.Others ( CWC, SWC ,

STC ,APEDA ,MPEDA ,SEPC ,CEPCI ,APMC, COSAMB ,Research Institutions and Agricultural Universities).

INSTITUTIONS

Cooperative Sector Institutions 1.National cooperative development Corporation(NCDC)

2. National Agricultural Cooperative Marketing Federation (NAFED)

3.National Cooperative Tobacco Growers Federation (NTGF)

4.National Consumers Cooperative Federation (NCCF) 5.Tribal Cooperative Marketing Federation (TRIFED) 6.Special Commodity Cooperative Marketing

Organizations (Sugarcane, Cotton , milk ) 7.State Cooperative Marketing Federations.

FOOD CORPORATION OF INDIA(FCI)

Jan 1965 It is one of the largest public sector undertakings in the country. Played an important role in transfer of crisis oriented food security into a

stable security system. Objectives 1.To procure a sizeable portion of the marketed surplus of food grains at

incentive price from farmers on behalf of the Central and State Government. 2.To make timely releases of the stocks through the public distribution

system so that consumer prices may not rise unduly and unnecessarily. 3.To minimize seasonal price fluctuations and inter-regional price

variations in food commodities by establishing a purchasing and distribution network.

4.To build up a sizeable buffer stock of cereals to meet the situations that arise as a result of shortfalls in internal procurement and imports.

DMI (DIRECTORATE OF MARKETING AND INSPECTION)

Central Marketing Department,1928 merged with the Inspection Directorate of the Ministry of the food was renamed as the DMI.

DMI is assigned the task of implementing the Agricultural Produce (Grading and Marketing) Act, 1937 ; Cold storage order, 1980 and Meat Food Products Order, 1973.

Undertakes programme of market research and surveys, training of market personnel, extension and publicity.

Functions – Market Research and Commodity Surveys, Market Extension, Statutory Regulation of Markets and Market Practices, Promotion of Grading and Standardization, Market Intelligence Cell , Training of Market Personnel.

CENTRAL WAREHOUSING CORPORATION

Founded in 1957 ,Government owned corporation. Operates 467 warehouses within the country with 10.3 tonnes capacity. Services – foodgrain warehouses, industrial warehousing , custom bonded

warehouses , container freight stations , air cargo complexes. Apart from storage and handling , CWC offers services such as in the area of

clearing & forwarding , handling and transportation, procurement & distribution, disinfestations services , fumigation services, consultancy services /training for construction of warehouses.

Function – Warehouse Corporation Act ,1962 .CWC may - subscribe to the share capital of State warehousing corporation. - acts as agent of the government for the purpose of purchase, sale ,

storage and distribution of agricultural produce, seeds, manures and fertilizers, agricultural implements and notified commodities.

Commission for Agricultural Costs and Prices

(CACP)

Set up in 1965 in name of Agricultural Prices Commission(APC) on recommendations of the food grains price committee headed by Shri L.K.Jha with the main aim of advising the Government on price policy of agricultural commodities.

1980 –CACP-recommending 2 sets of prices MSP and procurement prices.

Aims at evolving a balanced and integrated price structure taking into account of overall needs of the economy and with due regards to the interest of both the groups.

National Agricultural Cooperative Marketing Federation (NAFED)

Oct,1958. NAFED is an apex organization of marketing cooperatives in the country. It deals in procurement, processing, distribution, export and import of

agricultural commodities. It is also the central nodal agency for undertaking price support operations

for pulses and oilseeds and market intervention operations for other agricultural commodities.

The state level marketing federations and the National Co-operative Development Corporation are its members.

Objectives - To co-ordinate and promote the marketing and trading activities of its

affiliated co-operative institutions. - To make arrangements for the supply of the agricultural inputs required

by member institutions.

NAFED…..

- To promote inter-state and international trade in agricultural and other commodities.

- To act as an agent of the government for the purchase, sale, storage and distribution of agricultural products and inputs.

Activities: 1. Internal trade 2.Foreign trade-Export and Import of Agricultural

Commodities. 3.Price Support Operations 4.Production and Marketing of Agricultural Inputs 5.Promotional activities 6.Developing Co-operative Marketing of Tribal Produce 7.Settling of Scientific Storage System

TAMILNADU CO-OP MILK PRODUCERS FEDERATION LIMITED (TCMPF)

Registered in 1st Feb, 1981 under Diary Development Department.

Commercial activities such as milk procurement, milk processing, chilling, packing and sale of milk to consumers .e.g Aavin

Objectives 1.Assure a remunerative price for the milk produced by

the member through a steady, stable and well organized market support.

2.Distribution of quality of milk and milk produce to the consumers at reasonable price.

APEDA(AGRICULTURAL AND PROCESSED FOOD PRODUCTS EXPORT DEVELOPMENT AUTHORITY)

Under Ministry of Commerce on Feb 13,1986 under the Agricultural and processed Food Products Export Authority Act, 1985.

The main responsibility of APEDA is the export promotion of fruits and vegetable products, meat and meat products, poultry products, dairy products, confectionary, biscuits and bakery products, honey, jaggery, sugar and coca products, alcoholic and non-alcoholic beverages, pickles, chutneys, papads, cereals and other processed foods.

It has brought qualitative changes in the agricultural marketing system and environment and, therefore, has increased the credence of the agri-business in the products.e.g

Export of grapes and mangoes from Maharashtra and Karnataka; strawberry and mushroom from Punjab and Haryana; litchi from Andhra Pradesh, Uttar Pradesh and Bihar; and cutflowers from Haryana and Karnataka.

Objectives: 1.To maximize foreign exchange earnings through

increased agro-exports for providing higher incomes to the farmers through higher unit value realization.

2. To create employment opportunities in rural areas by encouraging value added exports of farm products.

3.To implement schemes for providing financial assistance to improve post-harvest facilities to boost their exports.

SPECIALISED COMMIDITY BOARDS

They are essentially a producer controlled organization with government support and authority over a broad range of functions starting with production, processing and marketing of the crops.

Under Ministry of Commerce, Government of India.Confined to commercial and plantation crops in India.Promote both internal and external trade of the

commodity.State government has little control over it.

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

Established in 1965 through an Act of Parliament at Anand (Gujarat) for providing facilities for increasing the production and marketing of milk and promotion of dairy industry in the country.

It provides market support to the producers of milk in rural areas and is instrumental in supply of liquid milk and dairy products(ghee, powdered milk both whole milk powder and infant milk powder, butter and chocolate) to the urban consumers at reasonable prices.

Fostered strategies for increasing milk production, research on cattle feed and fodder, cooperative training and education and for development of efficient system of

handling, processing and marketing of milk and milk products.

NHB (National Horticultural Board)

Set up in 1984 as an autonomous society under the Societies Registration Act with a mandate to promote integrated development of horticulture in the country.

OBJECTIVES: 1. To promote development of horticulture industry in the country. 2. To help in coordinating , stimulating and sustaining the production and

processing of fruits and vegetables. 3. To provide market information and build data base in horticulture. 4. To provide technical, financial and other assistance to various marketing

organizations, 5.To assist in the establishment of growers societies to advance their

economic and social status. 6.To establish sound infrastructure in the field of production, processing

and marketing with the focus on post harvest management to reduce losses.

BOARDS YEAR/ACT STATION FUNCTIONS

Tea board Tea act of 1953

Kolkata, West Bengal

Advances loans,subsidies,export promotion,market intelligence.

Coffee board(Indian Coffee

Market Expansion

Board)

Coffee Markets

Expansion Act,1940

Coorg,Karnataka

Promotion of sale and consumption,agri &technological research,maintaining price stability.

Rubber Board

Rubber board Act,1940

Kottayam,Kerala

Research and training programmes,marketing ,planning welfare

Tobacco Board,1976

Tobacco Board

Act,1975

Regulation of production and marketing, set up auction platforms, promote grading,minimising prices

BOARDS YEAR/ACT LOCATION FUNCTIONS

Spices Board,1987

Spices Board Act,1986

Cochin,Kerala Improve production and quality,promote export marketing for 52 spices crops

Cardamom Board

1966 Increasing productivity, quality,extensions of plantations.

Coir Board Coir BoardIndustries Act,1953

Allepey,Kerala

Promoting exports of coir yarn and coir products, fixing grade standards, regular inspections of coir fibre.

Silk Board Central Silk Board Act,1949

Bangalore,Karnataka

Development of silk industry, export-import of raw silk,training and research

TANFED (TAMILNADU COOPERATIVE MARKETING FEDERATION)

Functions 1.To identify the agricultural input requirements of the farmers and

arrange for storage and distribution of Fertilizers, Seeds, Pesticides and agricultural implements through Co-operative outlets.

2.To provide market support to the affiliated member Co-operative Marketing Societies in procuring, storing and marketing of agricultural commodities.

3.To provide storage facilities for perishable agricultural commodities and agro-based products by maintaining cold storage plants.

4.To undertake manufacture of agricultural inputs, distribution of kerosene, provide mobile telephone services to farmers through cooperatives.