Improvement in Grading and Standardization:
Grading of commodities has 3 main purposes.
Firstly it protects the consumers and the producers through the establishment of standards
Secondly it serves as a mean of describing the quality of commodities to be purchased or
sold by buyers and sellers all over the country.
Thirdly it provides a basis for the payment of premium on the quality of commodities.
Further trading on the basis of accepted quality standards makes pricing more precise and
equitable. Thereby making the price reporting mechanism more meaningful.
In India grades, standards and appropriate trademarks have been developed under the agricultural
produce (grading and marketing) act 1937. The agricultural produce is graded under the
trademark ‘AGMARK’. This is done in order to ensure good quality both for export as well as
the domestic market.
The act provided for the fixation of grade designations, which indicate the quality of scheduled
commodities of agricultural produce. The grading for other commodities is voluntary.
The grading practices of produce at the farmers level need to be emphasized and widely
canvassed. This will (it is hope) fetch a competitive price to the grower in the markets compared
to the ungraded produce.
9. Remunerative Prices for Farmers:
It has been increasingly realised that mere increased production could be of little avail
so long as the excess production failed to reflect itself in the shape of some extra
income to the producer. How to ensure an economic and remunerative return to the
producer; how to establish a relationship between the price return and the quality of a
produce; how to provide a self-propelling incentive for the maintenance of a standard which will bring the maximum return: how to prepare the produce for the market, how
to grade and differentiate – how to pack and transport; what security and what facilities
the producer should get in the market; how to keep him informed of market trends and
prices; how to keep him abreast of consumer preferences – these have