Agricultural marketing articles

01. Importance and Objectives of Agricultural Marketing in India
02. Inadequacies of Present Marketing System
03. Characteristics of Agricultural Products
04. Agricultural Marketing in India
05. Improvement of Agricultural Marketing System
06. Cooperative Marketing in India
07. Warehousing in India
08. Ideal Marketing System
09. Scientific Marketing of Farm Products

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Article on agricultural marketing in india and its systems. This article explains Scientific Marketing of Farm Products ...

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Characteristics of agricultural product.

Agricultural products differ in nature and contents from industrial goods in the following respects.

1. Agricultural products tend to be bulky and their weight and volume are great for their value in comparison with many industrial goods.

2. The demand on storage and transport facilities is more heavy, and more specialized in case of agricultural products than in the case of manufactured commodities.

3. Agricultural commodities are comparatively more perishable than industrial goods. Although some crops such as rice and paddy retain their quality for long time, most of the farm products are perishable and cannot remain long on the way to the final consumer without suffering loss and deterioration in quality.

4. There are certain agricultural products such as mangoes and grapes which are available only in their seasons but this condition of seasonal availability is not found in the case of industrial goods.

5. Agricultural produce is to be found scattered over a vast geographical area and as such its collection poses a serious problem. But such is not condition in the case of industrial goods.

6. There are various kinds and varieties in farm produce and so it is difficult to grade them.

7. The farmers especially in countries like India has low holding-back. Therefore he has to sell his produce immediately after the harvest at whatever price he can fetch because of his pressing needs.

8. Finally, both demand and supply of agricultural products i are inelastic. A bumper crop, without any minimum guaranteed support price from the government may spell disaster for the farmer. Similarly the farmer may not really be in a position to take advantage of shortages or deficit crop. These benefits may pass on only to the middleman.

Methods of Sale and Marketing Agencies

The marketing of agricultural produce is generally transacted in one of the following ways.

1. Under cover or the Hatta System

Under this system, the sale is effected by twisting or clasping the fingers of the sellers agent under cover of a cloth. The cultivator is not taken into confidence until the final bid is cleared.

2. Open auction system

Under this system the agent invites bids for the produce and to the highest bidder the produce is sold.

3. Dara system

Another related system is to keep the heaps of grains of different quantities and sell them at fiat rates without indulging in weightment etc.

4. Moghum sale

Under this system, sale is based on the verbal understanding between buyers and sellers and without mentioning the rate as it is understood that the buyers will pay the prevailing rate.

5. Private agreement

The seller may invite offers for his produce and may sell to one who might have offered the highest price for the produce.

6. Government purchase

The government agencies lay down fixed prices for different qualities of agriculture commodities. the sale is effected after a gradual processing for gradation and proper weightment. This practice is also followed in co-operative and regulated markets.

7. Marketing agencies

The various agencies engaged in the marketing of agricultural produce can be classified into two categories, viz., (i) government and quasi private agencies like the co-operative societies and (ii) private agencies. A chain of middlemen may be found operating both in Government and private agencies. The more important among these are as follows:-

a. Merchant is the most usual purchaser of the produce, he deals in his individual capacity.
b. Itinerant Beoparis (merchants) visit different villages, collect the produce, and take to the nearest market.
c. Take the weighing men from the villages to the dealers in town.
d. Agents are concerned with the assembling and distribution of agricultural produce.



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