Agricultural Marketing

Introduction

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

    Contract marketing

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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  • Q1

    Consider the following statements and identify the Wrong one.

    Marks:1
    Answer:

    In regulated markets sale and purchase of agricultural produce is monitored by the traders with profit motives.

    Explanation:

    In regulated markets sale and purchase of agricultural produce is monitored by the market committees and transaction are governed by various rules and regulations.

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  • Q2

    _________ of agricultural commodities is being promoted in the country through a network of regulated markets.

    Marks:1
    Answer:

    Organised marketing

    Explanation:

    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.

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  • Q3

    Identify the defect of agricultural marketing in India among the given options.

    Marks:1
    Answer:

    Both (a) and (b)

    Explanation:

    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.

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  • Q4

    Agricultural marketing involves

    Marks:1
    Answer:

    All of them

    Explanation:

    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.

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  • Q5

    ____________ refers to the mechanism through which agricultural produce reach to the consumers in different parts of the country.

    Marks:1
    Answer:

    Agricultural marketing

    Explanation:

    Agricultural marketing refers to the mechanism through which agricultural produce reach to the consumers in different parts of the country.

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