Agricultural Marketing refers to the mechanism through which agricultural produce reach to the consumers in different parts of the country. Agricultural marketing involves: assembling, storage, processing, grading, packing and transportation. Various features of agricultural marketing are:
Agricultural products are bulky; therefore, they involve high storage and transportation costs.
Agriculture produce are generally perishable in nature.
Agricultural products have inelastic demand, i.e., if the price of agricultural products fall or rise, demand would not increase in greater proportion.
Agricultural goods have inelastic supply; if the price of product rises, its supply does not rise instantly.
The concept of advertising or other sales promotion activities are not applicable in the agricultural products.
The objectives of agricultural marketing are:
To enable the farmers to get the best possible returns
To minimize the middlemen profit between the farmer and the ultimate consumer
To provide storage facilities so that farmers can sell his produce at a favourable price, etc.
The defects of agricultural marketing are as follows:
Inadequate transport facilities
Inadequate market information
Inadequate credit facilities
Improper measures for grading and standardisation
Presence of large number of middlemen
Inadequate warehouses and
Malpractices in unregulated markets
The measures taken by the government to improve agricultural marketing are:
Regulation of markets
Provision of infrastructure facilities
Uniform standard weights
Grading and standardisation
The government has developed some policy instruments to safeguard the interest of farmers, they are:
Minimum support prices
Buffer stock and
Public distribution system
The emerging alternative marketing channels, which are:
Direct marketing and
The Co-operative marketing societies are established with the purpose of improving agricultural marketing. The objectives of cooperative societies are:
To market the surplus produce of farmers
These societies process, grade, store, transport and sell the surplus produce when it is advantageous for farmers.
They increase the collective bargaining power of the farmers. They deal directly with final buyers to avail the fair prices for farmers.
They also advance loans to the farmers, etc.
Few of the limitations of these societies are:
There is an uneven development of these societies among different states.
Financial performance of these cooperatives is far from satisfactory.
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Consider the following statements and identify the Wrong one.Marks:1
In regulated markets sale and purchase of agricultural produce is monitored by the traders with profit motives.
In regulated markets sale and purchase of agricultural produce is monitored by the market committees and transaction are governed by various rules and regulations.
_________ of agricultural commodities is being promoted in the country through a network of regulated markets.Marks:1
Organised marketing of agricultural commodities is being promoted in the country through a network of regulated markets. The objective of regulated markets is to make the market system transparent, to eliminate unfair and unhealthy market practices.
Identify the defect of agricultural marketing in India among the given options.Marks:1
Both (a) and (b)
Agricultural Marketing in India suffers from various shortcomings. Some of the defects of the agricultural marketing are: distress sale, lack of storage facilities, inadequate transport facilities, lack of grading and standardisation, multiplicity of middlemen, malpractices of middlemen, low bargaining power of the farmers, etc.
Agricultural marketing involvesMarks:1
All of them
Agricultural marketing involves various activities such as collection and storage of agricultural goods, their transportation to the market place, Grading and standardisation and Selling the produce at lucrative price, etc. An efficient marketing system is a prerequisite for agricultural development.
____________ refers to the mechanism through which agricultural produce reach to the consumers in different parts of the country.Marks:1
Agricultural marketing refers to the mechanism through which agricultural produce reach to the consumers in different parts of the country.