AGRICULTURAL WAREHOUSING AND GRADING SYSTEM FOR COMMON AGRICULTURAL PRODUCTS

Gnanamani Vignesh09ab10

AN IDEAL MARKETING SCENARIO

Works on Need and Demand

maximizes the long run welfare of society

transportation, storage, and processing should be carried on in such a way so as to achieve the highest output per unit of cost incurred on them.

1. There should not be any government interference in free and market transactions.

  2. The marketing system should operate on the

basis of the independent, but be systematic and orderly

3. Should be capable of developing into an intricate and far-flung marketing system

4. Should bring demand and supply together and should establish equilibrium between the two.

5. Should be able to generate employment

FUNCTION OF WAREHOUSES

necessary to prevent the loss arising out of defective storage and also to equip the farmers with a convenient instrument of credit.

Both the Agricultural Finance Sub-Committee (1945) and the Rural Banking Enquiry Committee (1950) emphasized the importance of ware housing as a method of promoting rural banking and finance in India.

Three main agencies in the public sector which are engaged in building large scale storage/warehousing capacity. They are:

◦ Food Corporation of India (FCI)◦ Central Warehousing Corporation (CWC)◦ State Warehousing Corporation (SWC)

Co-operatives have also constructed warehouses in rural areas for storage of their members' produce, for stocking of fertilizers and other inputs and consumer articles.

To avoid unfair competition with co-operative marketing societies, the state warehousing corporations do not open warehouses at any place below the sub divisional level.

Kinds of warehouses

a. Private warehouses which are usually maintained by joint-stock companies, firms and individuals;

b. Duty-paid public ware houses which are maintained by dock authorities or port trust authorities at port

c. Bonded warehouses which are maintained either by dock authorities or by the Government and

d. Licensed warehouses which are private warehouses run by co-operative societies or by private agencies, after obtaining license from the Government

Benefits

a. It gives withholding power to the agriculturist to tide over difficulties and helps them to secure better prices for their produce.

b. It gives purchasing power to traders

c. It tends to cushion the price fluctuation and stabilize prices as it equates supply to demand.

d. It facilitates future trading.

e. It plays a very important role in implementing the agricultural price policy of the Government

f. It obviates the need for unnecessary cross-transport.

g. Huge wastages which occur owing to improper storage of agricultural produce will be minimized if warehousing develops on a large scale.

h. Warehouses render various subsidiary services

Cold Storage

Availability of proper cold storages are important for preserving perishable commodities like milk, meat, eggs, vegetables, fruits, ornamental flowers and other floricultural goods.

longer shelf life by preventing them from rotting due to humidity, high temperature and micro-organisms. This results in a decrease in loss due to spoilage.

GENERAL RULES TO BE FOLLOWED BY FARMERS

1. Always bring the produce for sale after cleaning it

2. Sell different qualities of products separately

3. Sell the produce after grading it

4. Sell the produce in regulated markets

GRADING SYSTEM IN PLACE

The Agricultural Produce (Grading & Marking) Act, 1937 empowers the Central Government to fix quality standards, known as ‘AGMARK’ standards.

Grade standards have been notified for

202 agricultural and allied Commodities

TESTING, RESEARCH AND STANDARDISATION FACILITIES

network of 22 Regional Agmark Laboratories at different places in the country with Central Agmark Laboratory, Nagpur as the apex laboratory.

Parties desirous to grade their commodities under Agmark have to obtain Certificate of Authorisation

Major Departments

Agricultural Products (Foodgrains)

Spices and Essential Oils

Oils and Fats

General Chemistry

Livestock Products including microbiology

Toxicology 

Name of the Group: No. of Commodities

1. Food grain and allied products 30 2. Fruits and Vegetables 43 3. Spices and condiments 26 4. Edible Nuts 8 5. Oil Seeds 15 6. Vegetable Oils and Fats 19 7. Oil cakes 8 8. Essential oils 8 9. Fibre crops 5 10. Live stock, Dairy and poultry products 10 11. Other products 30

TOTAL 202

AN EXAMPLE OF THE LEVEL OF GRADING

APEDA

Agricultural and Processed Food Products Export Development Authority (APEDA)

APEDA is mandated with the responsibility of export promotion and development of the following scheduled products:

Fruits, Vegetables and their Products. Meat and Meat Products. Poultry and Poultry Products. Dairy Products. Confectionery, Biscuits and Bakery Products. Honey, Jaggery and Sugar Products. Cocoa and its products, chocolates of all kinds. Alcoholic and Non-Alcoholic Beverages. Cereal Cereal Products. Groundnuts, Peanuts and Walnuts. Pickles, Papads and Chutneys. Guar Gum. Floriculture and Floriculture Products Herbal and Medicinal Plants Rice (Non-Basmati).

NAFED

National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED)

was setup with the object to promote Co-operative marketing of Agricultural Produce to benefit the farmers. Agricultural farmers are the main members of NAFED

Domestic operations of Nafed mainly comprise of ◦outright business◦ joint venture business with member

federation/societies, agency ◦consignment business and ◦implementation of price support

scheme/market intervention scheme

helps farmers by procuring their produce through the established cooperative network all over the country with active involvement marketing societies at mandi level.

ADULTERATION IN AGRICULTURAL PRODUCTS

Adulteration in food is normally present in its most crude form;

prohibited substances are either added or partly or wholly substituted. 

In India normally the contamination/adulteration in food is done either for financial gain or due to carelessness and lack in proper hygienic condition of processing, storing, transportation and marketing.

This ultimately results that the consumer is either cheated or often become victim of diseases.

COMMON ADULTERANTS