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1. Unstable price: Generally, the price of paddy/rice goes down in the post harvest period ( 3-4 months immediately after harvest) due to heavy arrivals in the market and later shoots up, which results in unstable prices.
2. Spurt in production and heavy arrivals: After the introduction of high yielding varieties of rice, the production has increased manifolds, increasing the arrivals in the markets, which results in distress sale after harvest.
3. Lack of marketing information: Due to lack of market information regarding prevailing prices, arrivals etc., most of the producers market the paddy/rice in the village itself, which deprives them of getting remunerative returns.
4. Adoption of grading: Grading of paddy/rice at producers’ level ensures better prices to producers and better quality to consumers. However, most of the markets are lagging behind in providing grading service at producers’ level.
5. Inadequate storage facilities in rural areas: To avoid the distress sale, storage facilities in villages are found to be inadequate. Due to lack of storage facilities at rural stage, substantial quantity is lost. Transportation facilities at producers’ level: Due to inadequate facilities of transportation at village level, in most of the states, producers are forced to sell paddy/rice in the village itself to itinerant merchants or traders directly at low prices.
6. Training of producer: The farmers are not trained in marketing system. Training shall improve their skill for better marketing of their produce.