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Role of market intelligence in agriculture: A success story of basmati cultivation in Punjab


J.S. Sidhu, Jasdev Singh and Raj Kumar



Indian Journal of Economics and Development
Year : 2014, Volume : 10, Issue : 1a
First page : ( 26) Last page : ( 31)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/j.2322-0430.10.1a.017

Role of market intelligence in agriculture: A success story of basmati cultivation in Punjab

Sidhu J.S.*, Professor of Economics, Singh Jasdev, Agricultural Economist, Kumar Raj, Extension Specialist (FM)
Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141 004 (Punjab)


JEL Classification: P42, Q10, Q11, Q16, Q18

Online published on 26 February, 2014.

Maintaining a balance between demand and supply of any agricultural commodity at a remunerative level to farmers is the main objective of Agricultural Market Intelligence Centres (AMIC) in India. The production of more basmati than demand in India during 2011–12 resulted into crash in prices which made basmati cultivation unviable as compared to nonbasmati rice. Reacting to this basmati crisis, AMIC, PAU, Ludhiana advised the farmers through both print and electronic media to reduce area under basmati rice in order to match its demand and supply to earn better returns. The basmati growers responded to the AMIC’s advice and reduced the area during 2012–13 and earned additional income of `381 crores. The average additional returns were estimated at `25400 per hectare along with additional amount of three lakh tonnes of non-basmati rice for food security. Thus, agricultural market intelligence played an important role in increasing the income of basmati growers and help in achieving the national objective of providing additional food grains to the society.

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