Reform agriculture marketing systems to address farm distress

[GeraltofRivia]

Yep truly (a while ago) I studied and contrasted the ground level "bottom-up" reform that Deng did (often overlooked in favour of studying the industrial + SEZ + export "juicy" brochure stuff) that India was either slow to do or still has not done (effectively or at all) in rural+agri areas. Thus I am quite aware of the specific areas where legacy of the license raj kind of over-control complex (even to micro production unit level) by the socialist state still continued in India's case (and some persist)...especially when it concerns the bulk of traditional voting blocs (rural + agri) etc. Same goes for subcontinent more broadly.

Here is a good read (a summary for me given the depth I went into heh) in China's case:

http://factsanddetails.com/china/cat2/sub7/item347.html#chapter-0

Thanks for the link and it is indeed informative.

You are right that Deng’s rural reform doesn’t receive the same kind of attention that other branches like SEZ. Given the massive scale of rural population, the growth would have delivered a significant boost in terms of overall quantity. Apart from food production, township and village enterprises appeared to be a great success too, contributing in terms of rural employment and economical benefits.

These report don’t go into the details of farmers selling surplus produce in local market which may provide some useful information. I guess it would have some understandable obsoletes in terms of marketing, transport, storage. I remember reading a piece of news long time ago that some watermelon growers could not secure enough transport so the watermelons got wasted, which was a shame and unfortunate for these people. It has been improved these days I guess with all the flash road and railway.

My aunt has potato farms and it has huge risk due to all the diseases that crop prone too. She sell 5 Rs per 5 KG in market while we get around 50 Rs per 5Kg so someone in between getting rich for no reason at all.

Some of the price difference could due to genuine value adding activities like transport, storage, supermarkets etc but nevertheless there are people who extract excessive markups in the process.

As long as it can protect the interests of farmers, we should give 100% support.
@Nilgiri

Let’s say making the market serve the mutual benefit of producers and consumers.

 

[Sam.]

Some of the price difference could due to genuine value adding activities like transport, storage, supermarkets etc but nevertheless there are people who extract excessive markups in the process.

I am not talking about supermarkets and malls but in mandis. Only transportation costs count and sometime storage.

How can they buy at 5 Rs and sell on 50 Rs it is 10X the price. Even so if transportation cost is that high (which isn't btw) don't you think it should be reduced. Also mandi have their own tax which is 10% which they add on the final price.

 

[GeraltofRivia]

I am not talking about supermarkets and malls but in mandis. Only transportation costs count and sometime storage.

How can they buy at 5 Rs and sell on 50 Rs it is 10X the price. Even so if transportation cost is that high (which isn't btw) don't you think it should be reduced. Also mandi have their own tax which is 10% which they add on the final price.

Oh I see. The OP article says “that poor farmers may typically get as little as 25% of the prices that consumers finally pay for their produce. “. So in your aunt’s case it is 10%!!

 

[Sam.]

Oh I see. The OP article says “that poor farmers may typically get as little as 25% of the prices that consumers finally pay for their produce. “. So in your aunt’s case it is 10%!!

It is between 10% to 25% and varies time to time but you get the situation is not looking fine by any means. How can you leave majority of Indians who relies on agriculture far behind if you compare to Industry and service sector.

 

[Nilgiri]

I am not talking about supermarkets and malls but in mandis. Only transportation costs count and sometime storage.

How can they buy at 5 Rs and sell on 50 Rs it is 10X the price. Even so if transportation cost is that high (which isn't btw) don't you think it should be reduced. Also mandi have their own tax which is 10% which they add on the final price.

Yep definitely cartel gig happening there.

Same thing happens with OPEC on global scale. The oil prices are several times higher than they otherwise would be because of OPEC essentially operating as a cartel.