Indian farmers get only one-third of the final selling price, with the rest being enjoyed by the traders, wholesalers and retailers among themselves. Having worked closely with the agrarian economy for over two decades now, I found the conclusions of this research paper published by the Reserve Bank of India (RBI) to be an affirmation of my frequent observations and pre-suppositions about general practices in the country's agriculture sector.
Creating essential market linkages and consolidating farmers under umbrella bodies should have helped solve much of that problem. While markets under Agricultural Produce Market Committees (APMCs) were set up in states with this intent, the actual outcome has not been as envisaged. In fact, it only increased layers of middlemen, imposing fresh burdens on farmers. In many states, farmers have fared better without the APMC mechanism.
The 'taste' that India needs: At the same time, a cooperative society of farmers has worked well as an alternative model in India's dairy sector, thanks to which we have a highly successful dairy-product marketing federation that is counted among the world's largest in terms of volume and has a great national brand to be proud of. Amul is ranked as the world's strongest food-and-dairy brand by the UK's Brand Finance. Amul clocked a turnover of ₹159,445 crore in 2023-24, with a group turnover of ₹80,000 crore. Its strength is drawn from the world's largest farmer-owned dairy cooperative, with 3.6 million farmers across 18,600 villages of Gujarat who supply around 30 million litres of milk every day.
Denne historien er fra December 23, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December 23, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
India should try the Amul model for all agricultural commodities
The cooperative model behind Amul's success needs to be adopted across India's farm sector. It'll ease credit for farmers too
At long last, the UK is shooting for the moon on clean energy
An ambitious plan revives hope but it will be a race against time
Fuel efficiency norms could accelerate clean mobility
Tighter carbon emission standards should push automakers to sell greener vehicles overall
Rupee's managed float: Should RBI shift gear?
To Mint Street's credit, India resolved a macro trilemma in its own special way. Recalibrate it for a more market-priced rupee if the expected trade gains outweigh price-stability risks.
Escaping India within India is an exorbitant exercise
The wealthy in Gurgaon pay mind-boggling prices to keep real India out of their lives. But it doesn't happen
Can we use today's geopolitical chaos to uplift India's economy?
Successful economies have geopolitics to thank but India may be letting its opportunity slip away
WHAT THE MARKET TAUGHT INVESTORS IN 2024
In multiple pockets of the market this year, new trend chasers learnt some very old lessons
IOC probes bribery allegation of US cos
State-owned Indian Oil Corporation (IOC) has begun a probe into allegations of a US speciality chemicals firm bribing its officials 15 years ago to obtain contracts to supply catalysts, according to a company's regulatory filing.
India could be key SAF producer: lata
India has the potential to be a key producer of sustainable aviation fuel by utilizing its ethanol supplies and availability of lipid feedstocks like non-edible industrial oils, according to a senior official at the global airlines' grouping IATA (International Air Transport Association).
Akasa to add more planes this fiscal
Akasa Air is in continuous discussions with Boeing on aircraft deliveries and expects to add a few more planes to its fleet in the current fiscal ending March 2025, the airline's chief Vinay Dube has said.
