12/09/2022 - Agriculture

KEY POINTS

·        There are numerous challenges associated with their informal and decentralised nature, the ultra-tiny scale of their operations and the imperfect rural markets that restrict their competitive abilities. Determined efforts are therefore required in the following critical areas.

·        Markets need to be studied, mapped, and tagged to the rural production clusters having special advantages.

·        Devoid of scale, capital and bargaining power, primary producers are forced to purchase inputs on credit at a higher price and sell their produce in distress.

·        Rural producers do not have the wherewithal to invest in critical aspects such as technology, digital solutions, training of manpower, etc.

·        Rural producers generally sell their produce/products without much value addition and get a smaller share in the consumer price. They also lack adequate storage space and capital to hold stocks.

·        Most of the rural producers are semi-literate and employ untrained manpower. This limits their ability to adopt modern business practices.

·        Formalization and registration of rural producers, therefore, would be useful in providing them with a unique identity, mapping production clusters, and targeting interventions.

·        Organized businesses have their representative forums such as associations, federations, etc, for facilitating consultations with the government and other stakeholders.

·        This would help strengthen the consultative approach to upgrading the rural production ecosystem.

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