Agriculture Marketing :-
All the activities like transportation processing, storage, grading are including in the agriculture marketing These activities are inadequate in the economy of every country.
PROBLEMS or DEFECTS OF AGRICULTURAL MARKETING :-
- An organized marketing system ensure better returns to the farmer. It also stables the market prices. It protects the interest of both consumers and producers. But in most of underdeveloped countries agricultural marketing is not well organized and farmers are facing many problems to sell their products.
Following are the main problems of agricultural marketing :
1. Lack of Transportation Facility :-
It is the main obstacle in the way of efficient marketing. The rural areas are not linked with the market by roads. A lot of agricultural product is wasted due to transport problem.
2. Poor Quality of Product :–
Farmer is not using the improved seeds and fertilizers so quality of production is very poor and its prices are low in the market.
3. Role of Middleman :-
The middleman also takes a big share of farmer’s income without doing anything. A poor farmer borrows the money from them and sells his product at lower rates.
4. Lack of Grading :-
In case of agricultural commodities the mixing of good and bad products is very common in developing countries like India and Pakistan. There is no proper method of grading these crops. It creates a problem of marketing inside and outside the country.
5. Lack of Credit Facilities :-
The credit facilities are not adequate to meet the farmer’s requirement. Poor farmer is borrows the money from private money lenders at tied conditions.
6. Problems of Produce Collection :-
The collection of produce from small farmers is very expensive and a difficult process. It is a great problem for the efficient marketing.
- Lack of Storage Facility :-
The storage facilities are required by the producers as well as by the government. The farmers need storage to sell their product at a suitable time. The government needs stores for keeping reserve stocks. Due to lack of storage facilities a lot of product is damaged on railway stations and in open air.
8. Weight and Measures :-
In various parts of weight and measures are not same. So a farmer suffers a loss at the time of buying selling of his product.
9. Market News :-
Most of farmers in underdeveloped countries are uneducated and they knows nothing about the market conditions. So farmer is unable to achieve the real price of his product.
MEASURE TO IMPROVE THE AGRICULTURAL MARKETING:-
Following measures can be adopted to improve the agricultural marketing :
1. Improved Transport Facilities :-
The government should increase the road facilities and rural areas should be linked with the markets. It will enable the farmer to sell his product in the market directly in the hands of consumers.
2. Increase in the Credit Facilities :-
The government should increase the credit facilities to the small farmers. No doubt all the commercial banks are providing this facility to the farmers but still it is not sufficient.
3. Increase in Storage Facility :-
The government should provide loan to the framer for storage facilities. The government should also construct the stores to keep the stocks of various goods.
4. Market Reforms :-
The government should improve the market system in the country. Market committee should be reorganized. Markets inspectors should check the prices of agricultural products. The strict laws should be introduced.
5. New Markets :-
The government should build the new markets near the producing centers. It will enable the farmer to get proper reward.
6. Cold Storage :-
This i an important part of organized markets. These are very useful for the perishable goods like fruits and vegetable. The government should expand the scope of cold storage.
7. Market Information :-
Market demand and supply condition can be provided to the framers through radio, T.V and newspaper. The government should also pay special attention to this side.
8. Grading of Product :-
There are various agencies which are busy in grading agricultural product. There is a need to expand these organizations for effective of marketing system,
9. Marketing Research :-
The government should allocate a sufficient amount on marketing research to make the agricultural marketing more effective
Other Recent Important Reforms:
- To address the demands for marketing of increased and diversified agricultural marketable surplus there is a need to strengthen the network of regulated markets and augment it with alternative marketing channels.
- In order to keep pace with the changing production pattern and growing marketable surplus, the Government advocates development of adequate number of markets equipped with modern infrastructure, with increased private sector participation and development of other marketing channels like direct marketing and contract farming etc.
- The Government is actively pursuing with States to amend their marketing laws to provide suitable legal framework and policy atmosphere to usher such developments. .
- Further, as a part of reforms, Government announced a scheme for setting up of National Agriculture Market (NAM). Under NAM, a common e-market platform is to be deployed for on-line trading across the States/ Country.
- It is expected that NAM would address the marketing constraints of fragmentation, lack of transparency in bidding, poor price discovery, information asymmetry between sellers and buyers and provide farmers with a larger share of the consumer rupee.
- Marketing Reforms with reference to 7 key areas vis-a-vis Model APMC Act
- Establishment of private market yards/ private markets managed by a person other than a market committee
- Establishment of direct purchase of agricultural produce from agriculturist (Direct Purchasing from producer)
- To promote and permit e-trading
- Establishment of farmers/ consumers market managed by a person other than a market committee (Direct sale by the producer)
- Contract Farming Sponsor shall register himself with the Marketing Committee or with a prescribed officer in such a manner as may be prescribed.
- Single point levy of market fee
- Single registration/ license for trade/ transaction in more than one market