What are the main constraints in transport and marketing of agricultural produce in India?

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Ghissu Editorial · Accepted Answer

Transport is constrained by kutcha last-mile roads, missing reefer vehicles and costly small loads, while marketing suffers from distant mandis, layered intermediaries, no storage or credit and narrow procurement. Farmers receive only about a third of the consumer rupee for tomatoes, onions and potatoes (RBI, 2024).

**Introduction**

The 2020 lockdown showed how fragile farm logistics are: states with better LEADS logistics scores saw about 45% higher mandi arrivals in later phases (Azim Premji University, 2023). Perishables suffer most when produce cannot move or find a fair buyer.

**Constraints in Transporting Farm Produce**

SKETCH: fishbone | Why Farmers Realise Low Prices
effect: Low farm-gate price
- Kutcha last-mile roads
- Few reefer vehicles
- Distant regulated mandis
- Middlemen and fees
- Weak price information

1. **Last-mile roads**: Kutcha village roads mean produce moves by tractor-trolley or head-load and is damaged before reaching a market, despite PMGSY since 2000.
2. **Missing cold transport**: The NCCD's 2015 study found a gap of over 85% in reefer vehicles and over 99% in pack-houses.
3. **Small lots and high freight**: With about 86% small and marginal holdings (Agriculture Census 2015-16), per-quintal freight is high; Kisan Rail began only in August 2020.

**Constraints in Marketing Farm Produce**

1. **Distant mandis**: Regulated markets are far sparser than the one per 80 sq km recommended by the National Commission on Farmers (2006).
2. **Intermediaries and fees**: Farmers get only about a third of the consumer rupee for tomatoes, onions and potatoes (RBI working paper, 2024).
3. **No holding power**: Without grading, storage or warehouse-receipt finance, farmers sell ungraded produce at harvest to the commission agent who lent them money.
4. **Narrow procurement**: Only about 6% of farmers sold at MSP (Shanta Kumar Committee, 2015).

**Conclusion**

Poor roads, missing cold transport and intermediary-heavy markets keep the farmer's share low. Kisan Rail, e-NAM, FPO aggregation and farm-gate storage under the Agriculture Infrastructure Fund can turn record harvests into higher farm incomes.

What are the main constraints in transport and marketing of agricultural produce in India?

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