How does Agriculture Marketing facilitate marketing of agriculture produce under their regulations regime?. Discuss the new mechanisms of implementation of MSP to agricultural commodities.

Agriculture Marketing is a State subject and concerned States/Union Territories regulate and facilitate marketing of agriculture produce under their respective State regulations.  

  • National Sample Survey Office (NSSO) conducts ‘Situation Assessment of Agricultural Households‘ form time to time to provide a comprehensive assessment of situation of agricultural households in rural parts of the country.
  • The last such Survey was conducted by NSSO during January 2013 to December 2013 to collect information on consumer expenditure, income and productive assets, indebtedness, farming practices and preferences, resource availability, awareness of technological developments and access to modern technology in the field of agriculture, information on crop loss, crop insurance and awareness about Minimum Support Price (MSP).


  • In order to provide better marketing facilities to the farmers, the Government has released a new model “The Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017” in April 2017 for its adoption by States/Union Territories (UTs).
  • The provisions therein provide for alternative marketing channels to facilitate farmers in marketing their produce directly at competitive & remunerative prices.
  • In order to optimize the use of scarce resources and mitigate the uncertainty in price and marketing, the Government has formulated and released a progressive and facilitative Model Act “The —-State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” in May, 2018 for its adoption by the states/Union Territories (UTs).
  • The aforesaid Model Contract Farming Act covers the entire value and supply chain from pre-production to post-harvest marketing including services contract for the agricultural produce and livestock.
  • The Government has implemented National Agriculture Market (e-NAM) scheme for transparent price discovery for remunerative prices for the farmers for their produce through competitive online bidding system.
  • So far, 585 wholesale regulated markets of 16 States and 02 UTs have been integrated with e-NAM platform.  Farmers can choose to sell their produce on e-NAM platform to buyers without going through commission agents.    
  • Government has decided to develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs) to work as centers of aggregation and to provide farmers facility to make direct sale to consumers and bulk purchasers.
  • Government of India has launched an umbrella scheme ‘Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA).
  • Under PM-AASHA, the Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare implements the Price Support Scheme (PSS) for procurement of pulses, oilseeds and copra.
  • For oilseeds, DAC&FW also implements the Price Deficiency Payment Scheme (PDPS).
  • There exists a transparent and uniform policy for procurement by Government Agencies.
  • Under this policy, wheat and paddy offered by farmers, within the stipulated period and conforming to the specifications (Fair Average Quality norms) prescribed in advance by Government of India, are purchased at Minimum Support Price (MSP) by the State Government agencies and Food Corporation of India (FCI) for Central Pool.