UPSC Mains Economics
What Are The Main Constraints In Transport And Mar
Low Priority
Consistency: 7%
Weightage: 1 / 15 Yrs
High-Yield Trend
1
2020 Questions 1 MCQs
01
PYQ 2020
mains
medium
economics ID: upsc-202
What are the main constraints in transport and marketing of agricultural produce in India?
Official Solution
Correct Option: **SUBJECT:** ECONOMY
A ROBUST AGRICULTURAL TRANSPORT AND MARKETING SYSTEM IS VITAL FOR INDIA'S **FOOD SECURITY** AND FARMERS' INCOME. HOWEVER, MULTIPLE INFRASTRUCTURAL AND INSTITUTIONAL BOTTLENECKS C
**Subject:** Economy A robust agricultural transport and marketing system is vital for India's **food security** and farmers' income. However, multiple infrastructural and institutional bottlenecks continue to plague the sector, leading to an estimated **40% post-harvest losses** in fruits and vegetables. ## Physical Infrastructure Constraints - **Poor Road Connectivity**: About **40% of rural habitations** lack all-weather road connectivity, hampering timely transportation of perishable agricultural produce.
- **Limited Cold Storage**: Despite being the world's largest producer of fruits and vegetables, India has cold storage capacity for only **11% of total production**.
- **Inadequate Market Yards**: The average distance between two agricultural markets is **approximately 12 km**, much higher than the recommended **5 km**, increasing transportation costs.
- **Railways Infrastructure**: Limited availability of refrigerated rail coaches despite initiatives like **Kisan Rail** affects long-distance transportation of perishables. ## Marketing Infrastructure Constraints - **Fragmented Supply Chain**: Multiple intermediaries between farmers and consumers lead to price spread and reduced farmer income.
- **Limited Market Information**: Lack of real-time price information despite initiatives like **e-NAM** (Electronic National Agriculture Market).
- **Quality Standards**: Absence of uniform grading and standardization systems affects price realization and export potential.
- **Storage Infrastructure**: Inadequate warehousing facilities lead to distress sales, particularly during peak harvest seasons. ## Institutional Constraints - **Credit Access**: Limited financial resources restrict small farmers from accessing modern transport and storage facilities.
- **Market Regulations**: Complex **APMC regulations** and licensing requirements create entry barriers for private players.
- **Technology Adoption**: Low penetration of modern logistics technology and tracking systems affects supply chain efficiency.
- **Skill Gap**: Insufficient trained personnel in agricultural logistics and cold chain management. The government's initiatives like **Integrated Scheme on Agricultural Marketing (ISAM)** and **Krishi Udan** are steps in the right direction, but a more comprehensive approach involving public-private partnerships and technological integration is needed to overcome these constraints and create an efficient **farm-to-fork supply chain**.