Agriculture Market System in India Prepared by Agri Data Point Team Last Updated: June-2016

Agriculture Marketing System  Agriculture Marketing system covers the services involved in moving an agricultural product from farm to the consumers.  Total Agricultural Markets  No. of Rural Primary Market  No. of Wholesale Market – 6489  No. of Regulated Markets – 7190  No of Principal Market Yards – 2456  No of sub market yard – 4734 Out of total Agriculture Markets – Only 25% are regulated while 75% are stil unregulated AgriDataPoint

Unregulated Markets  Sale to moneylenders and traders  UP – 85% of Wheat and 75% of Oilseeds  Punjab – 60% of Wheat, 70% of oilseeds, 35% of Cotton  W.Bengal – 90% of Jute  ‘Hats’ (Fairs & Melas)  Hats – Village market held only once or twice in a week  One Hat caters approx 14 Villages  Approx. 50% of hat are held in bigger villages (population more than 5000 person).  Commission agents of different market are the main buyers  Only small and marginal scale farmers sell their produce in such markets AgriDataPoint

Regulated Markets  APMC Mandies  One APMC mandi serves number of village  Transaction is carried out through Commission agents (i.e Kacha and Pucca Arhitiya )  Mostly Medium to Big scale farmer bring their produce to these market  Mandi tax and cess on all the transaction  Record Maintenance of all the transaction  Co-operatives Marketing  Societies are formed by farmers to take advantage of collective bargaining  marketing society collects surplus from it members and sell it in the mandi collectively AgriDataPoint

Agri Market Trade Channel AgriDataPoint

Value Chain  “Value chain’’ describes the full range of value adding activities required to bring a product or service through the different phases of production, including procurement of raw materials and other inputs.  Rapeseed Value Chain  Maize AgriDataPoint

Basic Mandi Information AgriDataPoint  FRP  Fair and Remunerative price decided for Sugarcane based on recovery rate of sugar, sugar and its by product prices Procurement bodies  Wheat & Rice  FCI  Coarse grains  State government  Oilseeds and Pulses  NAFED and other Central agencies  Under price support system only if MOP is below MSP Cess and Tax  Cess  Cess= Tax on Tax  In every mandi, every transaction is subjected to market tax and market cess

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