PREFACE It gives me immense pleasure to present my book on agriculture environment titled “Economic, Marketing & Sales of Agricultural Products” before the readers. Being son of a farmer I am duty bound to think for the welfare of the farmers. My this book deals with the farming community benefits from the new global market access opportunities, the development of internal agricultural marketing system to enhance the share of farmers in the ultimate price of his produce which is presently no reaching to them. After more than two decades in which the Govt. has worked hard to build credibility with global investors, a series of recent steps like proposal to tax certain types of transactions retrospectively, closer of cotton exports and flipflopping on the multi brand retail rule have led to them change the believe in the Tourism Ministry slogan from” Incredible India” to” Impossible India”. A series of anti-business decisions have led to many influential fans abroad wondering whether the problem is short term weak political leadership or something more long lasting and disturbing. Uncertainty about India’s future has become a principal concern. Therefore there is a big halt in country’s progress. Forces must be aligned so that the country can progress. For this shared vision of pulling in same direction is required. Nation without vision shall perish. Visions and strategies that cannot persuade people cannot have political support. A vision that attracts people and inspires them to support the strategies necessary to attain it, must appeal to their minds and touch their hearts. It must talk about what matters to them and in the language they understand. India would have to rethink the meaning of ‘inclusive’. It only defines inclusive in terms of subsidies and reservation in jobs and education, appears to be a vote bank politics. Actually ‘ inclusive growth’ means the spreading of opportunity to all to participate according to their abilities in economic activity leading to creative destruction in which new comers oust the old through healthy competition. Extractive political institutions (autocracy and empire) lead to extractive economies benefiting only elites and cannot create general prosperity except for limited period. Inclusive political institution (democracy, rule of law, and right for all) create inclusive economic regimes with opportunity for all, leading ultimately to prosperity. Inclusive institutions lead to creative destruction which is essential for sustained prosperity but threatens extractive regimes and is typically sabotaged by them. This view has been beautifully asserted by Daron Acemoglu and James Robinson in their book “Why Nations Fail”.

Agriculture occupies a significant place in the economy of India. It contributes nearly 20% to the Gross Domestic Product [GDP] and provides employment to around two-thirds of nation’s population Agricultural commodity exports account for nearly 20 per cent of the total export earnings of the country. The agricultural produce sector has been one of the most important components of Indian economy. Considerable progress has since been achieved in scaling new heights in the production of foodgrains, commercial crops like cotton, sugarcane, tea etc., fruits, vegetables and milk. The increasing trend of agricultural production has brought, in its wake, new challenges in terms of finding market for the marketed surplus. There is also pressure from all segments of agricultural economy to respond to the challenges and opportunities that the global markets offer in the liberalized trade regime. To benefit the farming community from the new global market access opportunities, the internal agricultural marketing system in the country also needs to be integrated and strengthened. In particular the market system has to be revitalized to a) provide incentives to farmer to produce more; b) convey the changing needs of the consumers to the producers to enable production r burning; c) foster true competition among the market players and d) to enhance the share of farmers in the ultimate price of his agricultural produce.

Price mechanism is an economic term that refers to the buyers and sellers who negotiate prices of goods or services depending on demand and supply. A price mechanism or market-based mechanism refers to a wide variety of ways to match up buyers and sellers through price rationing.An example of a price mechanism uses announced bid and ask prices. Generally speaking, when two parties wish to engage in a trade, the purchaser will announce a price he is willing to pay (the bid price) and seller will announce a price he is willing to accept (the ask price).

Sugar originated from the Arabic word “sharkara” and is derived from the sanskrit world “sharkara”. Sugar is an important part of the daily diet and  forming a class of edible substances which includes  sucrose, lactose, and fructose. It provides the human body with requisite carbohydrates and is basically extracted from sugar cane and sugar beet.  Found in fruits, honey, sorghum, sugar maple and in several other sources, it is the main ingredient of candy which is loved by children the world over. Yet, it has been  blamed for causing tooth decay and excess consumption of sugar has been associated with a host of ailments like diabetes, obesity, weight gain, depression, joint pain, fatigue and insulin resistance and even cancer.

Among fresh vegetables, onion, tomato and mushroom are reported to be highly export competitive. India ranks first in the world accounting for around 21 per cent of the world area, planted to onion. Globally, the country occupies the second position, after China, in onion production with a production share of around 14 per cent. Productivity of onion is low at around 11.4 metric ton/ha, which is significantly lower than the world average of 17.3 metric ton/ha. Besides India and China, the other major onion-producing countries are Turkey, Pakistan, Iran, Japan, Brazil, United States of America and Spain. It is produced for both domestic consumption as well as exports. India produces all varieties of onion - pink, red, yellow and white, big or small.

Potato is a major food crop, grown in more than 100 countries in the world and it is one of the major commercial crops grown in India. India ranks third by contributing around 7.5% to the world’s production. During 2006-07, 27 million tonnes was produced in an area of about 1.5 million ha. However, potato consumption per capita in India (14.8 kg/head/year) is one of the lowest in the world and hardly one per cent of the potato is processed.

Setting price is a critical component of successful marketing. Vegetable growers have a greater level of control than most other growers over marketable yields, input costs and price. The closer a grower is to the consumer, the more control over price the grower has. Buyers perceive price to represent value of the product. Underpricing, or pricing too low, gives the perception that the product is inferior, while setting the price too high often drives customers away. Many growers make the mistake of setting the price too low at the beginning of the marketing season when competition is less and demand is strong and then find it difficult to increase price later in the season. Before setting price, gauge the level of competition and the consumer demand for your product. For example, organic produce may have a stronger demand in urban areas, so prices can be set at a higher level. Also, early-season produce, such as tomatoes, has high demand with little competition in most markets, resulting in a higher price range.

Basmati Rice Basmati Rice is a simple grain, yet throughout history it has been on royal menus of various cultures as the main dish. From the pilav of Turkey, polou of Persia, pilafs of the Steppes, the isotos and paellas of the Mediterranean, to the pulau of India it has been served to great sultans, maharajahs, shahs and emperors. Spices, nuts, dried fruits, vegetables and herbs are a natural for Basmati rice. Basmati rice transforms rice dishes into extraordinary meals. Also known as the “Queen of Rice”, this highly aromatic grain that is long and elegantly thin, has originated from Vasumati which means earth recognized by its fragrance. The full exposition of the word is from Hindi. Bas originating from Prakrit Vas which has a sanskrit root- Vasay connoting aroma; and mati from mayup meaning ingrained from the origin. Common usage has changed Vas to Bas while joining bas and mayup the latter changed to mati.. Thus the word Basmati originated.

Pulses are important food crops due to their high protein and essential amino acid content. Pulses are used as food and animal feed. India is the world’s largest producer, importer and consumer of pulses. Many exporting countries are dependent on India for marketing their pulses. Even though India is the world’s largest producer and consumer of pulses still there is a gap of 2-3 million tonnes between the production and consumption of pulses in the country and the gap is met through imports.

Random workplace surveys in the UK have proven that the staff can get pretty steamed up over hot drinks. Nine years ago, London Underground staff, in fact, threatened to go on strike when kettles were introduced to replace tea urns. Their grouse: it will make them late for shifts. When the credit crunch dried up the free watering holes in many companies, a survey by uSwitchforbusiness.com in 2010 claimed that trouble was brewing. It warned: "Cutting out the free cuppas may add to the bottom line, but there may be a far greater price to be paid in staff morale." Tea or coffee - free or not - is the preferred poison at work.

Prices of major spices such as chillies, jeera, turmeric and cardamom are being driven to the ground by higher production, poor export earnings and a lack of working capital with traders to hold the stocks. Last December, all these spices were at record highs. With the prices ruling high last year, the acreage of most of the spices has increased this year, indicating excess production. The chilli acreage has increased by 15% to 20% while the land under jeera crop is estimated to have gone up by over 26%. The turmeric production is heading for a historic high of 82 lakh bags (each bag of 70 kg) and cardamom is having a bumper harvest.

Cotton, the traditional and important commercial crop has been in cultivation in India for more than five thousand years. Though synthetic / man-made fibre has made inroads, cotton deserves the prime position not only in India but also in the world. The Northern hemisphere accounts for more than 90% of the total world production. Whereas countries like China, US and India together account for 50% of the production in the world. In India, cotton farming provides livelihood for over 4 million farm families. Various allied activities like ginning, spinning, weaving, textile processing, garment manufacturing, marketing etc., provide employment to several million people.

Fats and oils are one of the five essential ingredients of human diet. The four others are protein, carbohydrates, minerals, and vitamins. In balanced diet, the requirement of oils and fats per person per day is around 35 gm. In India, the major source of oils and fats is of vegetable origin; butter from animal milk also serves as a fat, though. In the nine major oilseeds, which are groundnut, rapseed /mustered seed, soya been, seasam seeds, sun flower seed niger seed, castor seed and linseed, out of these   seven are essentially edible. Among these seven, by far the most important are groundnut,  rapeseed/mustard seed, and soya bean. These three edible oilseeds account for a little over 80% of-the-total production of nine oilseeds, which include even two non-edible oilseeds, namely castor seed and linseed. As a matter of fact, edible oilseeds as such contribute nearly 95% to the total production of all cultivated oilseeds together.

The first use of rubber was by the Olmecs, who centuries later passed on the knowledge of natural latex from the Hevea tree in 1600 BC to the ancient Mayans. They boiled the harvested latex to make a ball for a Mesoamerican ballgame.

Liquid milk is the cheapest form of milk whereas value added products like yoghurt and paneer, already popular in India are ways to earn a higher income with some raw materials. Farms should focus on dairy herd improvement, herd management etc. Milk and dairy products are always very helpful to farmers for a constant source of income besides their regular farm products. They do not required to expend extra for their feeding if the number of cattle are less. With slight extra care they can earn enough to meet their daily expenses. Cows, buffalo, all the milk giving animals are easy to care.

All over the world, when people get richer their life style change and they consume more animal protein, especially meat. We may add value by good genetics and know how in farm and feed management. There would be huge demand for poultry products and meat in coming years in India as per capita income of middle class people is gradually increasing and for that production of meat and meat products is required to be increased to meet the demand. Meat of goat, buffalo chicken are generally sold in India. Marketing of meat and meat products, chicken and poultry products such as eggs are the main challenges for the new farmers as there is no ready market in India. Recently there is huge demand of Chicken in Northern India. The initial problem faced by farmers is getting the special chicken feed for the different age groups. There is no well equipped dedicated slaughter house available in every city. New technology for animal slaughter is required so that all parts of animal are used properly without losing valuable protein. The idea should be to use innovated technology to optimize the profits in the chain.

Food prices have risen 6% in the last six months. But it is expected to rise further as expensive energy, squeezed supplies and volatile weather take a combined toll. The biggest factor pushing prices is the cost of producing and marketing crops. Several factors will make farming more expensive in the coming months. The first variable is weather. Preliminary forecasts by a few foreign and private Indian meteorologists say India could have a below-normal monsoon because a weather phenomenon called El Nino is warming the Pacific Ocean. El Nino usually affects monsoon winds headed for India. Forecasters say monsoon might arrive on time but could falter during August-September, especially in the north.