Agricultural Finance and Marketing in India

Agricultural production in India depends upon millions of small farmers. Agricultural methods and techniques used by them are crucial for raising yields per hectare. Marketing is the last link in the chain of production process. An efficient marketing system which ensures reasonable return to the producers is essential to induce them to produce more. Production in agriculture being seasonal, the crop is harvested during a short period and consumed gradually. In the absence of staying power of a large number of small farmers, they compete with each other and the markets witness conditions of occasional glut and scarcity. Moreover, sale of agricultural produce involves a number of functions such as assembling, storing, grading, standardising, transporting and financing of the produce and negotiating sale. All this calls for adequate credit facilities for the farmers and an efficient and remunerative system of marketing of agricultural produce. This book explains and examines various aspects of agricultural finance and marketing in India. It contains 15 chapters which have been organized into 3 parts. Part I (chapters 1 and 2) is titled Introduction to Indian Agriculture. It provides an overview of agricultural finance, marketing and commerce during British rule. Besides, it gives a brief introduction of the present state of agricultural sector in India. Part II (chapters 3 to 8) is titled Agricultural Finance. It discusses credit needs and sources of Indian farmers, rural co-operative credit institutions, regional rural banks (RRBs), micro finance and self-help groups (SHGs), kisan credit cards (KCCs) and farm loan waivers. Part III (chapters 9 to 15) is titled Agricultural Marketing and Commerce. It deals with importance and requirements of a sound agricultural marketing system, present system of agricultural marketing, national agriculture market (e-NAM), minimum support prices (MSP), food stocks, food subsidy, public distribution system (PDS), agricultural exports and imports, and the three controversial farm laws (now repealed).