Marketed and marketable surplus of major food grains in India

Abstract

This book helps readers understand the concepts of marketed and marketable surplus, as well as the role of the government and marketing agencies, including those in the private sector, in improving market efficiency. It also examines the impact of various socioeconomic, technological, institutional, infrastructure, and price factors on the marketed surplus of major crops. While Indian agriculture has become increasingly market-oriented and monetized, the importance of market orientation of agriculture is also being recognized at the international level. The proportion of agricultural production that is marketed by farmers has increased significantly over the last few decades in India: in the early 1950s, about 30-35 per cent of food grains output was marketed, which has now increased to more than 70 per cent. In this context, the marketed surplus is proportionately higher in the case of commercial crops than subsistence crops. Recognizing its importance, the Government of India initiated a nation-wide survey to estimate marketable surplus and post-harvest losses in the early 1970s, which continued up to the late 1990s. As Indian agriculture, has undergone significant transformation, and no reliable estimates of marketed and marketable surplus are available, the study was conducted to estimate the marketed and marketable surplus of major food crops in leading producing states, and to examine important factors which determine the level of marketed surplus for various categories of farms. The results of this study offer a valuable resource for designing effective food procurement, distribution and price policies. Further, they provide reliable estimates of household farm retention pattern for self-consumption, seed, feed, wages and other payments in kind, which can be used as the basis for planning infrastructure development of storage and distribution. This essential information can help policy-makers determine how much marketed surplus is generated by the different categories of farmers and how marketable surplus would respond to changes in diverse economic and non-economic variables, allowing them to design policies accordingly.