A Ficci survey conducted in the wake of increasing inflation rates has mooted sweeping changes to tackle India's demand-supply imbalance in agriculture sector.
The survey has called the government to immediately address the issue so that the country's worsening inflation problems could be solved.
The survey has called for improving farm productivity, strengthening the agricultural extension system, creating 'one common market' for the country, creating awareness among farmers on Futures trading as an effective price discovery mechanism and encouraging private-sector participation in developing agri-marketing infrastructure and technology
development and transfer.
The survey, based on feedback from companies using primary articles as raw materials and those involved in trading and marketing of agri-commodities, shows that the continuing pressure on prices of primary products is driven by the worsening supply shortage in agri-commodity markets which, in turn, could be linked to the dismal growth of agriculture and grossly inefficient agriculture marketing infrastructure.
A sustained phase of high growth over the past few years, translating into high consumption demand, has played a vital role in further widening the supply-demand gap in the case of primary commodities, according to the chamber.