Marketing arrangements for agri products archaic: Rangarajan

Chairman of Prime Minister's Economic Advisory Council, C Rangarajan on Friday said Agriculture Produce Marketing Committees (APMCs) have not helped the farmers in gaining higher level of income.

"The marketing arrangements with respect to agricultural products remain very archaic", he said, delivering the convocation address at the University of Agricultural Sciences, Bangalore.

"Some of the legislations such as APMC have also not helped the farmers. There is a big difference between what the farmers get for the products and what the consumers pay for the products. This difference is extremely glaring in the case of perishable commodities like vegetables", Rangarajan said.

Reform of the marketing arrangements must be given priority attention by State Governments, he said.

In the case of rice and wheat, public procurement to some extent takes care of the problem. In the case of other agricultural products, a significant improvement in the marketing arrangements can by itself give to the farmers a higher level of income.

Rangarajan also said that since the 'Green Revolution" decades ago, there has been no breakthrough in the agriculture sector, adding, there is a clear evidence of 'technology fatigue'. "The yields of almost all the crops have stagnated".

"If we have to usher in a second green revolution, we need some significant technological revolution", he said. "Unless a significant breakthrough in technology is made to raise yields of various crops, a sustained rate of growth of agriculture at four per cent per annum may not be possible".

Rangarajan stressed the need for a strong institutional support to small and marginal farmers. "Appropriately supervised, contract farming can also be a help. Shift to high value crops such as vegetables is surely an option".