May 21, 2024


Make Every Business

‘Need demand-responsive system in farming’

For about fifty a long time because Independence, the government’s method to agriculture was aimed at self-sufficiency in food stuff. The objective was obtained, and what is now required is a system that is responsive to the need, according to S Sivakumar, Head of ITC’s Agri Company.

He claimed the creation-driven provide chain, which was developed about a long time, necessary no linkages with the customers.

But the condition now has transformed with about one particular-3rd of customers prepared to shell out much more for diversified agri make with excellent and safety. “You have to have significant investments to set up chilly storage infrastructure to tackle this need,” he claimed.

Addressing a digital meet on ‘Demystifying the 3 new farm reform laws’ organised by the Administrative Team Faculty of India (ASCI) on Wednesday, he claimed the need-driven system would go a extended way in improving upon farmers’ money.

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Mandi system

He claimed the APMC (Agricultural Produce Marketing and advertising Committee) system had assisted the small farmers get a much better selling price by defending them from the village traders. “It did a good job but the selling price discovery takes place write-up creation. But farmers get penalised (if they make much more) as price ranges drop thanks to the provide-need imbalances,” he claimed.

However it assisted small farmers promote their make at the mandis, they just can’t afford to consider the make again if they didn’t get good selling price. Transportation costs ended up prohibitive.

“The romantic relationship among the farmer and seller is only for the certain transaction and not via the whole crop cycle engagement,” he claimed.


The APMC regime was complemented by the MSP (minimal assistance system) system. “But the MSP supports only 23 crops, masking only one particular-fourth of the agricultural system’s benefit and ten for every cent of the farmers. For the relaxation of the crops, farmers are depended on the market,” he claimed.

“Offering MSP for all the crops could be disastrous for the financial system and not feasible. The MSP system is beset with a trouble. With assured profitability, there is no incentive to go for soil and drinking water effective solutions,” he claimed.

Stating that subsidies ended up necessary to assistance the farmers, he claimed it was essential to see no matter if these subsidies ended up utilised to distort the conduct (in use of assets like drinking water and electricity). Citing the instance of PM-KISAN plan, he claimed the positive aspects ended up crop agnostic and didn’t “distort the behaviour”.