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Role of government intervention in agricultural marketing for food security of India

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M.K.Sekhon and Manjeet Kaur

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Indian Journal of Economics and Development
Year : 2014, Volume : 10, Issue : 1a
First page : ( 82) Last page : ( 87)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/j.2322-0430.10.1a.026

Role of government intervention in agricultural marketing for food security of India

Sekhon M.K.*, Senior Economist (Marketing), Kaur Manjeet, Senior Economist
Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004

*Email: sekhonmk@yahoo.co.in

JEL Classification: M38, O13, Q11, Q13, Q18

Online published on 26 February, 2014.

Abstract
In the state of Punjab, organized marketing of wheat and rice is being promoted through net work of 149 regulated markets. The regulated markets aim at the development of marketing structure to ensure remunerative prices to the producers and to narrow down the price spread between producer and consumer, achieved in some crops. However, the situation of deficit (gap between demand and supply) at the national level became thorny to reduce. Availability of pulses per person is also at stake; it only improved during 1961 and continuously declined thereafter. Despite many efforts to boost production of crops, technology fatigue manifests in terms of slow growth of crops in the Punjab state. Consequently, the gross margin and net margin start declining and this situation poses a great threat to viability and sustainability of majority of the farmers. Farming became uneconomical under heavy debt and farmers’ suicide was observed. It was worked out on the basis of farm income, 81, 69 and 39 marginal farmers, small farmers and large farmers, respectively were non-viable. It was also observed that 20 per cent of marginal farmers were below poverty line. Diversification as an alternative is suggested to achieve this goal, all strategies are envisaged. In the case of pulses, maize, oilseed, the productivity level needs to improve along with marketing to compete the margin from wheat and rice. Other incentives required includes price incentives, state intervention and assured marketing. Setting up of efficient supply chains and linking farmers to the market is, therefore, very important.

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