According to the Union Agriculture Ministry, Government of India has been making concerted efforts to facilitate farmers in direct marketing and assure better returns.
The States have been requested to promote the concept of ‘Direct marketing’ to facilitate farmers/ group of farmers/FPOs/ Cooperatives in selling their produce to bulk buyers/big retailers/processors etc.
The Union Agriculture Minister Shri Narendra Singh Tomar sent a letter on 16th April, 2020 to the Chief Ministers of States reiterating the need for direct marketing through Cooperatives/ Farmer Producer Organisations (FPOs) etc and encouraged all the stakeholders and farmers to adopt this process.
States adopted Direct Marketing
Various States have adopted Direct Marketing and taken several measures:
- Karnataka exempted Cooperative Institutions and FPOs in the State for engaging in wholesale trade of agricultural produce outside the market yards;
- Tamil Nadu exempted market fee on all notified agricultural produce;
- Uttar Pradesh allowed trading in e-NAM platform from farm gate and promoted issuance of unified licence to processors for direct purchase from farmers and also allowed FPOs to undertake procurement operations of wheat;
- Rajasthan allowed direct marketing by traders, processors and FPOs. In addition to that, Primary Agriculture Credit Societies (PACS)/ Large Area Multi-purpose Cooperative Societies (LAMPS) in Rajasthan have been declared as deemed markets.
- Apart from Individuals, firms, and processing units, Madhya Pradesh has allowed to set up private purchase centres outside the market–yard to purchase directly from farmers with an application fee of Rs. 500/- only.
- Himachal Pradesh, Uttarakhand and Gujarat have also allowed direct marketing without requirement of any licence.
- Uttarakhand has declared Warehouse/Cold storage and Processing plants as sub-mandis.
- Uttar Pradesh Government has recently relaxed the rules and norms for declaring warehouses/ cold storages as Market-yards.
Impact of Direct Marketing
- Rajasthan has issued more than 1,100 direct marketing licences to processors during lockdown period wherein farmers have already started selling directly to the processors. Out of more than 550 PACS declared as market-yards in rural areas, 150 PACS have become functional for direct marketing and village traders are performing trade transactions successfully.
- Due to market fee waiver in Tamil Nadu, it was observed that traders have preferred to buy the produce from farmers from their farm gate/ villages.
- In Uttar Pradesh direct linkages have been established by FPOs with farmers and traders thereby supplying their produce to consumers in cities which saved wastages and directly benefitted the farmers. Further, the State has facilitated in establishing linkages with FPOs and Zomato Food Delivery App thereby ensuring smooth distribution of veggies to consumers.
