By: Dr. S.

Mahapatra

Objectives: Concept and scope Role of Agricultural Marketing Difference between agriculture and manufacturing goods

Market reform and marketing system improvement is a integral part of strategy for agricultural development. Technology improvement of agriculture by use of high yielding seeds, chemical fertilisers and adoption of plant protection measures. Agriculture growth rate in developing countries has not attained the expected levels due to lack of attention to facilities and services. Agriculture marketing occupies a fairly low place in development policies of developing nations.

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It refers to growing crops and livestock as a primary activity and is involved in the creation of time, place, form and possession utility. Marketing refers to satisfying needs and wants by exchange process and performance of bussiness activity by flow of goods/services from to producer to users. Operations for movement of farm products is from farms to consumers through middlemen. Agriculture marketing system includes Agro product marketing Agro input marketing

Agro system includes farmers, village traders, wholesalers, processors, importers/exporters, marketing cooperatives, regulated marketing committees and retailers. Input subsystem includes manufacturers, distributers, importers/exporters of inputs required for farmers. Agro system involves activities, agencies and policies involved in procurement of inputs and movement of agriculture products from farms to consumers.

Agro marketing system is a link between farm and non-farm sectors and includes agri product for processing, assessment of demand for inputs, raw materials and marketing policy. As per NCA, agro marketing is a process to produce farm commodity which involves functional market structure based on technocommercial aspects. It includes pre and post harvest operations, assembling, grading, storage, transportation and distribution.

Agril. Sector need fertilisers, pesticides, farm equipments, electricity, packing material and repair services which is produced and supplied by nonfarm. Farm output stimulates forward linkages of surplus food need transportation, storage, milling, packaging and retailing. Increase in agril. Productivity with rise in incomes of farm families leads to more spending on non-food consumables, durables. Assess the demand and supply of farm inputs and farm products, post harvest handling of farm products, activities in processing includes pricing, hndling, sale of inputs and farm products.

Need for Understanding Efficient marketing system in transfer of farm products and inputs from producers to consumers looking at the cost benefits to the society reconciling conflicting objectives. Producing farmers expect the maximum possible price for their surplus produce without loss of time and provide them the required inputs at the lowest possible price. Consumers expect the system to provide food and other items in required quality and quantity at lowest possible price.

The traders expect to get a steady and increasing income from purchase and sale of agro-products. Government to safeguard the interest of all three groups associated in whole marketing mechanism (producers, consumers and middlemen). Market orientation of farmers increased for the marketable surplus of crops and agrocommodities. Improved seeds, fertilisers, insecticide/pesticide, farm machinery/implements and credit support in farm productivity through technological breakthrough to get maximum benefits.

New role of agro marketing Increase in agro output and market of surpluses Increase in income levels and standard of living Changes in the demand pattern for farm products Linkages with the overseas markets Changes in the degree of government intervention Framework of market functioning and factors influencing pricing to be understood Decision making relates to what to produce, which variety, how to market rather than when, where and whom to sell.

Difference in marketing of agro products and manufactured items (special characteristics of supply and demand in agro sector) Perishability of the product. Seasonality of the production Bulk of Agro products volume Variation in the quality of agro products Irregular supply of agro products Small size of holdings and scattered production Agro processing