Efficiency of paddy/rice marketing in the post apmc era in Bihar¹

The system of agricultural output marketing in Bihar has undergone several changes during the last six decades. The regulated agricultural marketing system was abolished by the Bihar government in 2006. At least ten years have passed since then. This study tries to measure the efficiency of paddy/rice marketing system in post APMC (deregulated) era and compare with that in APMC (regulated) regime. The findings of the study confirm that the efficiency of paddy/rice marketing system has decreased in the post APMC era. The farmers’ share in consumers’ rupee has declined and the intermediaries’ gross margin has risen. Majority of farmers is deprived of remunerative price or even minimum support price. There are widespread distress sales, particularly by marginal and small farm households. More than seventy per cent of the farmers including large farm households sell paddy in villages, mainly to itinerant traders, at lower prices than the procurement price. In view of ensuring remunerative price or at least minimum support price of paddy to the farmers of the state, it is suggestive that the problems afflicting to both the public as well as the private paddy marketing systems especially at village/panchayat level have to be addressed on a priority basis.