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AGRICULTURE

MARKETING
Presented By: Nikhil Sudan
1570

AGRICULTURE

MARKETING

marketing connotes a
The science art or
series
of
activities
occupation concerned
involved in moving
with cultivating land
the goods from the
raisingcrops,andfeed
point of production to
Agricultural marketing covers the services involved in moving
ing,breeding,andrais
point Numerous
of
an agricultural product from the farmthe
to the consumer.
ing
livestock
,farming.
consumption
interconnected
activities
are involved in
doing this, such as planning

production, growing and harvesting, grading, packing, transport, storage,


agro- and food processing, distribution, and sale

Objectives

The objectives of an efficient marketing system are:


1. To enable the primary producers to get the best
possible returns.
2. To provide facilities for lifting all produce, the farmers
are willing, to sell at an incentive price.
3. To reduce the price difference between the primary
producer and ultimate consumer.
4. To make available all products of farm origin to
consumers at reasonable price without impairing on the
quality of the produce.

Characteristics of Agricultural
Product
Bulky and their weight and volume are great
The demand on storage and transport facilities is more
heavy
Agricultural commodities are comparatively more
perishable
seasonal availability
Agricultural produce collection is hectic
Variety in Grading
The farmers especially in countries like India has low
holding-back

Facilities Needed for Agricultural


Marketing
Storage
Holding capacity- wait for better prices
Adequate and cheap transport facilities
Information about market conditions :- Prices
organized and regulated markets : NO DALALS
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.

INDIAN SYSTEM
THEN

Subsistence basis -the villages were self


sufficient, people exchanged their goods, and
services within the village on a barter basis.
Now

!!

!!

Commercial - With the development of


means of transport and storage facilities,
the farmer grows those crops that fetch a
better price.

INDIAN SYSTEM
Sale to moneylenders and traders
Hats and shanties
Mandies or wholesale markets
Co-operative marketing

Methods of Sale and Marketing


Agencies
Under cover or the Hatta System
Open auction system
Dara system
Moghum sale (verbal understanding )

INDIAN SYSTEM
DEFECTS

Improper warehouses
Lack of grading and standardization
Inadequate transport facilities
Presence of a large number of middlemen : farmers get 51 % of the
price
Inadequate market information
Inadequate credit facilities

Improvements
Establishment of regulated markets
Construction of warehouses,
Provision for grading, and standardization of produce
AGMARK
Standardization
of weight and measures, daily
broadcasting of market prices of agricultural crops on
All India Radio
Improvement of transport facilities

Scientific Marketing of Farm Products


Always bring the produce for sale after cleaning it
Sell different qualities of products separately
Sell the produce after grading it
Keep abreast of market information
Carry bags/packs of standard weights
Avoid immediate post-harvest sales
Patronize co-operative marketing societies
Sell the produce in regulated markets

AGMARKNET
Agricultural Marketing Information Network
Ministry of agriculture
AGMARKNET nation-wide information network for
speedy collection and diffusion of market information
Linking of all linking all important agricultural produce
markets in the Country, the State Agricultural
Marketing Boards & Directorates and DMI for
effective information exchange

Further Improvements

There should not be any government interference in free


and market transactions. The method of intervention
include, restrictions on food grain movements, restrictions
on the quantity to be processed, or on the construction of
processing plant, price supports, rationing, price ceiling,
entry of persons in the trade, etc.

Contract Farming
Cultivating and harvesting for and on behalf of big
business establishments or Government agencies and
forwarding the produce at a pre-determined price
Why ?
scientific and optimum use of land and farm resources
for maximum output of agriculture produce

Liberalization :as a result of rapid growth of retail industry in


India farm retail in India, which caters fresh vegetables and
fruits from the farms to the Indian mass

Key benefits of contract farming

Improved access to local markets


Assured markets and prices (lower risks)
Assured and often higher returns
Enhanced farmer access to production inputs,
mechanization and transport services, and extension advice
Assured quality and timeliness in delivery of farmers
products
Improved local infrastructure, such as roads and irrigation
facilities in sugar outgrower areas, tea roads, dairy
coolers/collection centers, etc.
lower transport costs, as coordinated and larger loads are
planned, an especially important feature in the case of more
dispersed producers.

THANK YOU

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