Improving the agricultural market efficiencies: a case study of rohtak district

Abstract

Urban expansion has led to serious consequences for food security in terms of rising competition between urban and agricultural land in addition to change in food consumption habits of people with increasing demands for processed foods. This sudden change in consumption pattern has led to overloaded stress on the present marketing facilities as well as other post-harvesting infrastructure (warehouses/processing units, retail) that are dependent on farmers in rural areas for the supply of raw materials and vice – versa. Thus, alongside selection of suitable crops to fit the overall financial, environmental and growth scenarios in a region, it is equally important to have an efficient and functioning marketing system, for the benefit of both farmers as well as agricultural market officials. An efficient marketing system is the function of types of marketing channels, their linkages and functions (As per Food and Agriculture Organization, United Nations). This system should support the type of crop being produced which would enable better prices to be received by producers/farmers and thereby improving the availability of competitively priced produce to the consumers. This study is intended to improve the agricultural market efficiencies by developing an integrated system of agricultural markets, storage and linkages and suggesting the most appropriate cropping scenario in a region. Taking the case study of Rohtak district in Haryana state, the research has followed a regional study approach where crop potential of four types of crops: Food grains, Cash crops, Horticulture and Vegetable crops has been assessed. For their marketing, various marketing channels have been identified and the most extensive channel is assessed based on three important market linkages – locational and organizational; transport-based; and financial. The methodology adopted to undertake this study can be repeated under similar scenarios for any district in India. The findings of this study suggest that cash crops are the most suitable crops to grow in Rohtak while there is a need to grow more horticulture and vegetable crops, as the dominant and monotonous cultivation of wheat and rice has a negative impact on the environment as well as farmer’s income. The regulated markets under the APMC system are the most extensively used marketing channel inABSTRACT Improving the Agricultural Market Efficiencies: A Case Study of Rohtak District Page v Rohtak. The locational and organizational linkages as well as financial linkages are the major areas that require necessary planning interventions in this area. As a result of these findings, two scenarios are developed based on the type of cropping pattern, to be adopted in the future, i.e. the existing and the revised. The former/existing scenario deals with suggestions leading to improvement in the existing market and other related infrastructure to meet the future supply and storage requirements. The later/revised scenario would lead to development of alternate marketing options like cooperative farming and contract farming