Constraints meaning and possible solution to improve agri business in india
Answers
Role of government
In India, a large part of the agri supply chain ecosystem is either in the public sector, or strongly linked to it. The Indian government attempts to insulate the cultivator from price fluctuations by procuring their produce at Minimum Support Prices (MSPs), decided by the Commission for Agricultural Costs and Prices after analyzing the costs of growing a particular crop. The 7500+ Agricultural Procurement and Marketing Committee (APMC) mandis provide a marketplace for the transaction and the Food Corporation of India (FCI) plays the role of the buyer, storing the procured produce in the relevant warehousing corporation’s warehouse. Ultimately, this gets distributed through the Public Distribution System (PDS) shops and reaches the consumer. For non-MSP crops, the producer is dependent on the traditional private channels to market her produce.