Marketing could play the role of a change agent in the rural sector only if the necessary infra-structure is created and the farmers are assured free access to the fruits of science and technology. In order to realize these, development of four categories of firms need major attention; they are:

(i) farm input supply firms,
(ii) farm products marketing firms,
(iii) food processing and distribution firms and
(iv) facilitative service firms.

1. Farm input supply firms
The overall trend indicates that there is an increased consumption of fertilizers, purchase of seeds and utilization of credit. So this trend necessitates not only the capacity expansion of the existing firms and entry of a number of firms, but also trained entrepreneurs and executives with managerial competence. This category of firms, covers broad spectrum of inputs like seeds, agricultural chemicals, machinery and spare parts, veterinary medicines, fodder production and distribution, credit and a lot more which are essential for improving the production.

The firm supplies and equipments should be made available at many local points in sufficient quantities so that farmers can use them in proper time. These inputs should be technically effective and of dependable quality, offered at reasonable prices. Here comes the dominant role of the extension services.

The cooperatives and farmers service societies have to be involved in the input delivery system. Minikit distribution of the seeds is necessary to be experimented. Shortage of essential inputs must therefore be supplied to the farmers at his doorstep in time and in enough quantity. This is possible only by establishing input firms at the rural level.

2. Farm product marketing firms


An efficient marketing system aims at satisfying not only the producers by paying remunerative prices for their produce but also supplying the products to the consumers at reasonable prices. In the context of increased agricultural production, the establishment of a large number of firms, both private and public sector, would be on the increase viz. whole saling, retailing firms, grading and standardization, export and import, district market committees regulated markets, cooperatives, storage and warehousing organizations, etc.

The combination of increased agricultural output and increased : demand for quality food indicates the opportunities for entrerpreneurs and executives in the farm product marketing firms. These entrepreneurs and the executives are to emerge mostly from among the farming community and the non-farming community. Thus, the increased employment generation assures not only higher income but also better income distribution among the rural families.

3. Food processing and distribution firms

Processing is a part and parcel of the product marketing. The food processing units specially at farm level are yet to be developed and they are at the infancy stage only. The processing is inevitable in the highly perishable products like milk, fruits, vegetables and also for many cash crops like cashew, sugarcane, etc. establishment of processing units are essential.

By these, more particularly women would be benefitted if they are properly trained in processing the product at home level. Apart from this, processing units will have significant linkages effect' by promoting new business for service companies, transporters, traders, etc.

4. Facilitative service firms

The services that are normally dealt with are market information, quality control, research and development, finance, insurance, etc. Under the present national policy framework, these are the potential areas for effective participation of the government.

For all these, new ventures, low capital investment and of small-scale nature, private enterprises are to be encouraged. In the case of medium capital investments, cooperatives and to some extent private agencies can be involved. In the case of fairly high capital investment, the joint ventures comprising cooperatives and the government may be encouraged.

The Institute -village linkage programme, is an innovative scheme started in 1995 as a part of extension services in which technology is assessed and refined through people's participation. As per the extension principle "seeing is believing", the technologies are tested at farmers level.

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