Chapters :

Agriculture – 12


The Tribal Cooperative Marketing Development Federation of India (TRIFED) came into existence in 1987. It is a national-level apex organization functioning under the administrative control of Ministry of Tribal Affairs. It facilitates tribal to gain from minor forest produce and other agricultural products without intermediaries.


Small Farmers Agribusiness Consortium (SFAC) is an Autonomous Society promoted by Ministry of Agriculture, Cooperation and Farmers’ Welfare, Government of India. It was registered under Societies Registration Act XXI of 1860 on 18th January, 1994.

Society is pioneer in organising small and marginal farmers as Farmers Interest Groups, Farmers Producers Organisation and Farmers Producers Company for endowing them with bargaining power and economies of scale. It provides a platform for increased accessibility and cheaper availability of agricultural inputs to small and marginal farmers and in establishing forward and backward linkages in supply chain management. This initiative has triggered mobilization of farmers for aggregation across the country with ultimate aim of sustainable business model and augmented incomes.

SFAC is progressing towards establishing an eco-system for FPOs/FPCs to make them sustainable and viable in the long run. FAC offers Schemes like Equity Grant and Credit Guarantee Fund Scheme to FPCs to improve availability of working capital and development of business activities. SFAC promotes development of small agribusiness through its VCA Scheme for value added processing and marketing linkages. SFAC is also implementing the National Agriculture Market Electronic Trading (e-Nam) platform. The purpose is to provide for a single unified market for agricultural products with much higher price discovery for farmers.


A Producer Organisation (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen. A PO can be a producer company, a cooperative society or any other legal form which provides for sharing of profits/benefits among the members. Farmer producer organization is one type of PO where the members are farmers. Small Farmers’ Agribusiness Consortium (SFAC) is providing support for promotion of FPOs.

The main aim of FPO is to ensure better income for the producers through an organization of their own. Through aggregation, the primary producers can avail the benefit of economies of scale. They will also have better bargaining power vis-à-vis the bulk buyers of produce and bulk suppliers of inputs.

FPOs help in the collectivization of such small, marginal and landless farmers in order to give them the collective strength to deal with such issues.Members of the FPO will manage their activities together in the organization to get better access to technology, input, finance and market for faster enhancement of their income.

The government has launched a new dedicated Central Sector Scheme titled “Formation and Promotion of Farmer Producer Organizations (FPOs)” with a clear strategy and committed resources to form and promote 10,000 new FPOs.

Agriculture Commodity Trading

The commodity trading in agricultural commodities are aimed at stabilising the overall prices of commodities. Ensuring fair prices to the producers, avoiding instabilities, producing an accurate price discovery etc. are possible with the help of future trading in agriculture. Agricultural commodity trading market is helpful to discover future prices depending upon the current trends. A better link between the future market and spot market powers the commodity market to influence the overall agricultural sector.

The NCDEX is the largest agricultural commodity stock exchange in the country. Another exchange that solely relies on agricultural commodities is the NMCE. As on end December 2017, there were 29 agricultural commodities that are allowed by the SEBI to be traded at various commodity stock exchanges.
Major items treaded include wheat, barley, cotton, pepper, rubber, sugar, maize, milk, etc.

 Agricultural Exports

India’s total merchandise export was around USD 303.7 billion during 2018-19, out of which agriculture commodities contributed around USD 38.5 billion (12.6%). Indian agricultural commodities and processed foods are exported to more than 200 countries. Top ten destinations for exports are Vietnam, Iran, Saudi Arabia, U.A.E., U.S.A., Indonesia, Nepal, Bangladesh, Malaysia and Iraq.

Top ten exported commodities during 2018-19 (Source: Farmer Connect Portal, GOI) 

Marine products (USD 1.5 billion)

Basmati rice (USD 4.71 billion)

Buffalo meat (USD 3.59 billion)

Spices (USD 3.31 billion)

Non-basmati rice (USD 3 billion)

Cotton (USD 2.1 billion)

Oil meals (USD 1.5 billion)

Sugar (USD 1.3 billion)

Castor oil (USD 0.9 billion)

Tea (USD 0.8 billion)

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