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Replace UP agricultural mandis with modern supply chains: ASSOCHAM

The study further said that the disconnect between farmers and consumers/market impeded the farmers from enjoying the benefits of modern scientific developments

Virendra Singh Rawat Lucknow
Associated Chambers of Commerce and Industry of India (ASSOCHAM) has suggested that Uttar Pradesh overhaul old agricultural mandis and set up modern supply chains to synergise the farm economy and raise farmers' income.

In a study titled 'States Emergence: A comparative analysis of growth & development', ASSOCHAM said disconnect between farmers and consumers/market impeded the farmers from enjoying the benefits of modern scientific developments in the farm sector.

It noted that the disconnect could be rectified through agricultural-oriented programmes like e-Choupal. Besides, information related to monsoon and support prices could be provided to farmers in real time through mobile/internet in order to empower them to fetch maximum benefits.
 

Other suggestions include holding rural trade fairs under the public-private partnership (PPP) model, promoting commercial crops to break the monotonous and risky dependence on single crop, implementation of contract farming on large farms etc.

Further, ASSOCHAM stressed the supply of better seeds, quality farm equipment and fertiliser, apart from water conservation and modern irrigation management.

The report suggested that the government provide agriculture insurance to farmers under the PPP model, during both rabi and kharif seasons, especially for sugar, pulses, wheat and rice crops.

Meanwhile, the study revealed that with a share of 13%, UP has emerged as the biggest contributor to India's agriculture and allied sector in 2013-14. The agriculture and allied sector contributed 22% to UP's gross state domestic product (GSDP) during 2013-14.

UP has acquired 15th position amid top 20 states in India with 3.2% compounded annual growth rate (CAGR) in agriculture and allied sector during the decadal period of 2004-05 and 2013-14.

The state needs corrective measures to revive agriculture production as UP is an agrarian economy and holds tremendous potential to attract investments in agri-infrastructure like wholesale and retail trading, storage, distribution and irrigation sectors, ASSOCHAM secretary general D S Rawat said.

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First Published: May 22 2015 | 4:24 PM IST

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