5.4.1 Meaning and Features of Agricultural Marketing
Agricultural marketing is the process of selling farm produce from farmers through wholesalers and stockists to end consumers. It encompasses all activities from harvesting to the final sale, involving processing, grading, packaging, storage, and selling when prices are favorable.
Features of Agricultural Marketing:
(a) Agricultural products incur high storage and transportation costs due to their bulkiness.
(b) Perishable nature of agricultural products necessitates quick selling after harvesting.
(c) Price falls do not necessarily lead to increased demand, and supply cannot instantly rise with price hikes.
(d) Limited advertising and sales promotion activities exist in agricultural marketing.
(e) Standardization and grading of agricultural products pose challenges.
(f) In developing countries, farming is often a way of life rather than a commercial venture.
(g) Prices are often determined by the government or wholesalers, leaving farmers with limited bargaining power.
5.4.2 Defects of Agricultural Marketing
The current agricultural marketing system has several flaws:
Inadequate Warehouses: Few scientifically equipped warehouses lead to improper storage, causing wastage.
Multiplicity of Middlemen: Numerous intermediaries exploit farmers and consumers, with a significant gap between the price received by farmers and the final consumer price.
Malpractices in Unregulated Markets: Unfair practices and exploitation by brokers due to the farmers’ ignorance.
Improper Measuring for Weighing, Grading, and Standardization: Lack of standardized weights and measures, leading to inconsistencies.
Lack of Adequate Finance: Farmers, often with limited resources, resort to high-interest moneylenders due to insufficient credit from banks.
Inadequate Means of Transport and Communication: Poor transport infrastructure results in slow and inefficient transportation.
Inadequate Market Information: Farmers lack access to market information, relying on hearsay and local traders’ reports.
5.4.3 Steps Undertaken by the Government for Improving Agricultural Marketing
The government has implemented various measures to enhance the agricultural marketing system:
Establishment of Regulated Markets: Regulated markets enforce standards, settle disputes, and provide reliable market information, ensuring fair prices for farmers.
Provision of Infrastructural Facilities: Development of roads, railways, warehouses, and processing units to improve overall infrastructure.
Co-operative Market: Cooperative marketing encourages collective bargaining, with organizations like NAFED playing a crucial role in procurement, distribution, and export of agricultural commodities.
Instruments to Safeguard Farmers’ Interests: Measures like Minimum Support Price (MSP), buffer stock, and Public Distribution System (PDS) protect farmers’ interests.
5.4.4 Emerging Alternative Marketing Channels
In India, alternative marketing channels are evolving, enabling direct sales from farmers to consumers. Examples include Apani Mandi, Hadaspar Mandi, Rythu Bazars, Uzhavar Sandies, and collaborations with national and international fast-food chains and hotels for fresh produce supply.
Objective Type Questions
1. What is agricultural marketing?
a) Cultivation of crops
b) Selling farm produce to consumers
c) Harvesting process
d) Soil management
Answer: b) Selling farm produce to consumers
2. Why do agricultural products require quick selling after harvesting?
a) To increase demand
b) To avoid wastage due to perishable nature
c) To allow for better grading
d) To facilitate advertising
Answer: b) To avoid wastage due to perishable nature
3. What is a challenge in the standardization and grading of agricultural products?
a) Lack of government regulation
b) Limited advertising
c) Bulkiness of products
d) Inadequate means of transport
Answer: c) Bulkiness of products
4. In developing countries, farming is often seen as:
a) A commercial venture
b) A scientific process
c) A way of life
d) A government initiative
Answer: c) A way of life
5. What is a common issue in the pricing of agricultural products according to the passage?
a) Farmers have strong bargaining power
b) Prices are determined by consumers
c) Prices are often determined by the government or wholesalers
d) Advertising influences prices significantly
Answer: c) Prices are often determined by the government or wholesalers
6. What is a major defect in the current agricultural marketing system mentioned in the passage?
a) Excessive warehousing
b) Lack of middlemen
c) Inadequate means of transport
d) Overregulation by the government
Answer: c) Inadequate means of transport
7. What is the purpose of establishing regulated markets by the government?
a) To control prices
b) To enforce advertising standards
c) To ensure fair prices, settle disputes, and provide reliable market information
d) To discourage cooperative marketing
Answer: c) To ensure fair prices, settle disputes, and provide reliable market information
8. What does NAFED stand for in the context of cooperative marketing?
a) National Association of Farming Enterprises and Development
b) National Agricultural Co-operative Marketing Federation of India Ltd.
c) North American Federation of Agriculture and Development
d) New Age Farmers and Economic Development
Answer: b) National Agricultural Co-operative Marketing Federation of India Ltd.
9. What is the purpose of Minimum Support Price (MSP) in agriculture?
a) To set a maximum price for agricultural products
b) To ensure a minimum price for farmers’ produce
c) To regulate advertising in the agricultural sector
d) To encourage wastage of agricultural products
Answer: b) To ensure a minimum price for farmers’ produce
10. What are emerging alternative marketing channels mentioned in the passage?
a) Traditional markets
b) Cooperative markets
c) Direct sales from farmers to consumers
d) Government-regulated markets
Answer: c) Direct sales from farmers to consumers