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Agricultural Marketing (1993)

Agricultural marketing involves numerous interconnected activities needed to move farm products to consumers, such as planning production, growing and harvesting, storage, processing, distribution, advertising and sale. The document outlines key functions of agricultural marketing including exchange functions like buying and selling; physical functions related to handling and storage; and facilitative functions involving collecting and disseminating market information. It discusses the importance of agricultural marketing in enabling farmers to get better returns, making products available to consumers at reasonable prices, and reducing price differences between farmers and consumers.

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668 views10 pages

Agricultural Marketing (1993)

Agricultural marketing involves numerous interconnected activities needed to move farm products to consumers, such as planning production, growing and harvesting, storage, processing, distribution, advertising and sale. The document outlines key functions of agricultural marketing including exchange functions like buying and selling; physical functions related to handling and storage; and facilitative functions involving collecting and disseminating market information. It discusses the importance of agricultural marketing in enabling farmers to get better returns, making products available to consumers at reasonable prices, and reducing price differences between farmers and consumers.

Uploaded by

pooja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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IMPORTANCE AND IMPLICATIONS

Agricultural marketing is inferred to


cover the services involved in
moving an agricultural product from
the farm to the consumer.
Numerous interconnected activities
are involved in doing this , such as
planning production, growing and
harvesting, storage, agro and food
processing distribution, advertising
and sale.
1. Exchange Functions: These mainly include functions
related to buying and selling. . Buying function is largely
one of seeking the sources of supply, Selling is the
process which stimulates demand or desire, finds the
buyer.

2. Physical Functions: These functions relate to the physical


handling of agriculture produce either in moving it from
one place to another or in storing it over a period of time.

3. Facilitative Functions: This function involves activities of


collecting, interpreting and disseminating market news to
various agencies including producers residing in the
interiors of the country. This helps the government in
formulating policies and plans of production and marketing
of good.
 To enable the primary producers to get the best
possible returns
 To make available all products of farm orign to
consumers at reasonable price.
 To reduce the price difference between the primary
producer and ultimate consumer,
 He should have cheap transport which enable him to
take him to take surplus product to mandi rather
then dispose of in village to village money lenders.
 The number of intermediaries should be as small as
possible, so that the middleman's profits are reduced.
This increases the returns to the farmers.
Assembling
•At the start of the process, the assembling of goods is
important. Agriculture produce is collected in small lots and
then assembled into large ones. This function becomes
essential because of small size of farms and small quantity of
Grading and standardization
production.
•When goods are assembled, grading and standardization have
to be undertaken. Because of the difference in tastes and needs
of the buyers, whatever is assembled is to be classified in
different lots according to their inherent qualities, such as
color,Processing
size, taste and utility.
& Storage
• Some of the agricultural commodities may, then, undergo the processing.
For example, wheat may be turned into flour, cotton into cloth and
oilseeds into oil. During the processing the goods are transformed so as
to increase their shelf life and to make them more acceptable to the
consumer than in their original form.
Transportation
For the final consumption, the goods have to be moved from the point of
storage to the point where they are in actual demand. This may require
their transportation over long distances and across many lands. It may be
necessary to store them again for a while on arrival before they could be
sold to the wholesalers and through them to the retailers
Wholesaling and retailing
•The task of making the goods available to the consumer for the
final consumption is entrusted upon the wholesalers and the
retailers. They are the final link in the process of agricultural
 Adjusting demand and production of agriculture:
Farmers find it difficult to adjust precisely their
production schedules to meet changing market
conditions. The production of agricultural products
such as fruit is seasonal in nature.
 To minimize cost of marketing: Cost of distribution is
high because cost of transportation, storage, and
processing is part of the major distribution cost.
 No control over output of production.
 Understanding consumer’s taste and preferences :
Choices are influenced by conscious and
subconscious expectations, tastes, and
preferences .
 Providing variety.
 Ensuring product safety.
 The state trading corporation (STC): To
minimize violent price fluctuation occurring as
a result seasonal variations in supply and
demand.
 The food corporation of India (FCI): To procure
a sizable portion of marketable surplus of
food-grains and other agricultural
commodities at incentive prices from the
farmer on behalf of the Central and State
Governments.
 Elimination of mediators
 Loan facilities
 Development of means of transport
 Publicity of marketing policies
 Training facilities
 Regulation ‘MANDIS’
 Storage management
• Make arrangement for education and awareness program
for rural farmers in order to improve their knowledge in
improving agro products and its marketing process. These
programmers will help to educate the farmers in usage of
quality inputs, online help for productivity improvement,
etc.
• Implement the rural development program in fast track to
develop the infrastructural facilities such as road facility,
communication facility, electricity, etc., in rural areas. This
will help for easy transportation of agro produce to the
market place.
• Creation of direct contact network between the farmers
and customers will help in reduce the so much
functionaries involvement and also to reduce the
unnecessary brokerage or commission to the functionaries.
This may increase the profit of the farmers. This can be
possible by creating local outlets in villages.
• It is essential to provide subsidized power supply and
loans to the farmers as the expenses towards power
consumption takes considerable amount of investments.

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