Very little central assistance for developing agricultural marketing is expected as the total plan outlay for this sector is only Rs 40 crore in the remaining three years of the Ninth Plan. But the plan outlay for development of commercial horticulture through production and post-harvest management is pegged at Rs 66.47 crore. This expected to be continue in the Tenth Plan as a back ended capital subsidy. The Plan outlay for capital investment subsidy for storages and col chains is Rs 175 crore.

The paper has stated that credibility of grading at producers' level based on trade demand is the foundation for e-commerce and e-trade in the days to come. So far Agmark standards have been framed and notified for both producers' and sellers' level in respect of 162 commodities including foodgrains, pulses, fruit and vegetables, spices, edible nuts, oilseeds, vegetable oils and fats, fibres, forest produces, livestock, dairy and poultry products. But a number of central and state government organisations which are in market operations, by and large follow their own standards. As a result, the grading at producers' level has not taken off in the real sense. Also many standards formulated for fruits and vegetables take into account only the size ignoring the quality factors.

Despite considerable progress of grading under Agmark, it still covers a small percentage of total production in the country.

The document paper, in this context, suggested that vigorous efforts are required to imbibe such grading right from the stage of the producer if the subsequent operations in the marketing channel have to be made efficient. Proper grading at producers' level will also save cost and labour on re-handling at different stages in the marketing channel. In respect of grading in cotton, DMI has already set up six classing centres in cotton growing states to provide facilities for grading at growers' cooperatives.

The status report has also noted that there is a lack of inter-state dissemination of market information. The present information system is yet to translate into effective information service reaching the grassroots level. Central electronic communication with free access of information is required in the present liberalised economy. DMI should be the nodal agency for this service and be connected through computer network with all the commodity markets in the country. State agricultural boards and marketing departments and other important national market information sources need to be connected for free flow of information. The system set up with DMI will be connected with the facilities available with the National Horticulture Board for mutual flow of information.

DMI should collect information on all marketing aspects, filter it and disseminate to all concerned. Further, the system can be expanded to provide information about global trade as regards to demand, supply and prices.

The report stated that one of the basic difficulties in popularising voluntary grading under Agmark is inadequate availability of testing facilities. To overcome this problem, some of the states have established laboratories particularly to help small entrepreneurs. The commercial laboratories and private packer's laboratories are also recognised for grading under Agmark to encourage grading activity. Besides, laboratories set up by associations and cooperatives are also encouraged to undertake grading. Nearly 740 laboratories in private and public sectors are operating under quality assurance network of Agmark. There are 22 regional laboratories operating under Apex Central Agmark Laboratory.

The report suggested strengthening of Agmark laboratories and upgradation of the standard specifications to that of ISO 9000 and Codex Alimentarius.The status paper that out of the reported 7,255 wholesale assembling markets in the country, 7,075 are `regulated' markets under concerned state government's laws. This comprises 2,333 principal market yards and 4,742 sub-market yards. Jammu & Kashmir, Kerala, Manipur, Dadra & Nagar Haveli, Andaman & Nicobar Islands and Lakshadweep are yet to introduce their state legislation for organised regulated markets. The regulation so far has been a means of expanding the revenue base. Market committees recover fees ranging between 0.3 per cent and two per cent. The revenue generated is transferred to public ledger account instead of ploughing it back for market development.

The approach to the development of markets has not been entirely scientific. Though DMI has developed a methodology for preparation of state master plans for development of markets on basis of their importance of flow of agricultural produces, only Gujarat, UP, Bihar, Rajasthan, Delhi, Nagaland, Mizoram and Meghalaya have prepared such master plans. Maharashtra, Karnataka, Punjab, Haryana, Gujarat and Andhra Pradesh have comparatively better marketing infrastructure and supporting services while Bihar, Orissa, West Bengal, Tamil Nadu and Goa still suffer from inadequate marketing infrastructure.

While the market infrastructure is comparatively better for foodgrains, fruits and vegetable and livestock markets are generally congested and unhygienic. These markets in some states are not covered by market legislations and continue to function under civic authorities. Though common wholesale assembly markets in the country are multi-commodity, multi-functional markets, exclusive markets for fruits, vegetables, cotton and jute are also set up.

Post-harvest losses in foodgrains on account of transportation and storage is about 10 to 12 per cent. But the gravity of post-harvest losses is more serious in perishable agro produces which is estimated between 25 to 45 per cent and of the value ranging between Rs 5,000 crore to Rs 8,000 crore by different experts. Out of the total fruits and vegetables produced, hardly two per cent are used by the processing industry.

Vegetable trade is faced with serious problems of packaging. Vegetables are normally packed in jute bags, bamboo baskets and expensive wooden boxes. In this context, the Market Planning and Designing Centre (MPDC) has conducted trials and has revealed that the corrugated craft paper cartons are the best alternative to conventional wooden boxes, bamboo baskets and jute bags.

Another problem area for the perishables is the lack of efficient cost-effective and flexible transportation system. Refrigerated transport is limited to certain commodities and area only. The use of railway wagons continues to be difficult as there is no comprehensive re-designing of railway wagons to move perishables across the country. The spoilage of fruit and vegetables can, therefore, be reduced considerably by post-harvest chemical treatments lie skin coating, fungicidal treatments and storage at optimum low temperature.