Market intervention and markets - issues and opportunities

Market interventions, such as Minimum Support Price, are important to meet the requirements of vulnerable sections of society and also prevent farmers from making distress sales. However, interventions such as export bans have often proved to be unfavorable to the producer. While sale of agricultural produce normally takes place in regulated markets, in the recent past, these markets have lost their monopoly and alternative markets have emerged. The private sector has also started playing a role in aggregating the farmers’ produce and ensuring a better price while there is benefit to the consumer as well. These emerging forms of marketing such as Direct Marketing and Farmer Producer Organizations/Companies are still in their infancy but have tremendous opportunities in emergency situations such as that caused by the pandemic created by covid-19, when the supply chain initially collapsed due to Pan India lockdown. The alternative markets through proper planning can ensure an efficient supply chain and bridge the gap between rural areas and urban consumers.