Agricultural, Allied Products, Agro Processed Products, its status in Indian Market. Emerging Issues in the business Agriculture Produces. Agriculture Marketing: Concept, Definition, Scope and Objectives, Upcoming Practices in Agriculture Marketing. Agribusiness-Emerging Branches, Non Conventional Forms of Agribusiness, Retailing & Merchandising of Agri Produces, Export Potential for farm products-Supporting Services. Role of Agencies for promotion of Exports of Agri Products, Role of Agencies for marketing of Agri Products, Standards of Agriculture Produces, Organized Retailing in Agri Inputs and Outputs. Marketing Mix of Agriculture Products, Role of Information and Communication Technology in Agriculture Marketing.

1. RETAILING AND
MERCHANDISING OF AGRI
PRODUCES
(UNIT-3/3)

2. COVERAGE
SECTORS
CONCEPT OF MERCHANDISING
TYPES OF MERCHANDISERS

3. SECTORS
INPUT SECTOR
FARM SECTOR (AGRI PRODUCES)
OUTPUT SECTOR

4. CONCEPT OF MERCHANDISING
RETAILERS, OR ALSO CALLED
MERCHANDISERS, ARE THOSE
INDIVIDUALS OR BUSINESS CONCERNS
WHICH SPECIALIZE IN PERFORMING THE
VARIOUS MARKETING FUNCTIONS AND
RENDERING SUCH SERVICES AS ARE
INVOLVED IN THE MARKETING OF GOODS.
THEY DO THIS AT DIFFERENT STAGES OF
THE MARKETING PROCESSES.

5. TYPES OF RETAILERS /
MERCHANDISERS
MERCHANT MIDDLEMEN
AGENT MIDDLEMEN
SPECULATIVE MIDDLEMEN
PROCESSORS MIDDLEMEN
FACILITATIVE MIDDLEMEN

6. MERCHANT MIDDLEMEN
THEY ARE THOSE INDIVIDUALS
WHO TAKE TITLE OF THE GOODS
THEY HANDLE. THEY BUY AND
SELL ON THEIR OWN AND GAIN
OR LOOSE, DEPENDING ON THE
DIFFERENCE IN THE SALE AND
PURCHASE PRICES.

7. TYPES OF MERCHANT
MIDDLEMEN
WHOLESALERS
RETAILERS
ITINERANT TRADERS AND
VILLAGE MERCHANTS
MASHAKHORES

8. WHOLESALERS
THOSE MERCHANT MIDDLEMEN WHO BUY AND
SELL AGRI PRODUCES IN LARGE QUANTITIES
THEY MAY BUY EITHER DIRECTLY FROM FARMERS
OR FROM OTHER WHOLESALERS
THEY SELL EITHER IN THE SAME MARKET OR
OTHER MARKETS
THEY SELL TO RETAILERS, OTHER WHOLESALERS
AND PROCESSORS
THEY DONOT SELL SIGNIFICANT QUANTITIES TO
ULTIMATE CONSUMERS
THEY OWN GODOWN OR STORAGE OF THE
PRODUCE

9. FUNCTIONS OF WHOLESALERS..
ASSEMBLE THE GOODS FROM VARIOUS
LOCALITIES AND AREAS TO MEET THE
DEMANDS OF BUYERS
SORT OUT THE GOODS IN DIFFERENT LOTS
ACCORDING TO THEIR QUALITY AND
PREPARE THEM FOR THE MARKET
EQUALIZE THE FLOW OF GOODS BY
STORING THEM IN THE PEAK ARRIVAL
SEASON AND RELEASING THEM IN THE OFF-
SEASON

10. FUNCTIONS OF WHOLESALERS
REGULATE THE FLOW OF GOODS BY
TRADING WITH BUYERS AND SELLERS IN
VARIOUS MARKET
FINANCE THE FARMERS SO THAT THE LATER
MAY MEET THEIR REQUIREMENTS OF
PRODUCTION INPUT
ASSESS THE DEMAND OF PROSPECTIVE
BUYERS AND PROCESSORS FROM TIME TO
TIME AND PLAN THE PURCHASE AND
MOVEMENT OF THE GOODS OVER TIME AND
SPACE

11. RETAILERS
THEY BUY GOODS FROM
WHOLESALERS AND SELL THEM TO
THE CONSUMERS IN SMALL
QUANTITIES
THEY ARE PRODUCERS’ PERSONAL
REPRESENTATIVES TO CONSUMERS.
THEY ARE CLOSEST TO CONSUMERS
IN THE MARKETING CHANNEL

12. ITINERANT TRADERS AND VILLAGE MERCHANTS
THEY ARE PETTY MERCHANTS WHO MOVE
FROM VILLAGE TO VILLAGE AND DIRECTLY
PURCHASE THE PRODUCE FROM CULTIVATORS
THEY TRANSPORT PRODUCES TO THE NEARBY
PRIMARY OR SECONDARY MARKET AND SELL
THERE
THEY MAY HAVE THEIR SMALL
ESTABLISHMENTS IN THE VILLAGES
THEY PURCHASE FROM THOSE FARMERS WHO
HAVE EITHER TAKEN FINANCE FROM THEM OR
WHO ARE NOT ABLE TO GO TO THE MARKET

13. ITINERANT TRADERS AND VILLAGE MERCHANTS
THEY ALSO SUPPLY ESSENTIAL
CONSUMPTION GOODS TO THE FARMERS
THEY ACT AS FINANCERS OF POOR
FARMERS
THEY OFTEN VISIT NEARBY MARKETS AND
KEEP IN TOUCH WITH THE PREVAILING PRICES
THEY EITHER SELL THE COLLECTED PRODUCE
IN THE NEARBY MARKET OR RETAIN IT FOR
SALE AT A LATER DATE IN THE VILLAGE ITSELF

14. MASHAKHORES
THIS IS A LOCAL TERM USED FOR BIG RETAILERS OR
SMALL WHOLESALERS DEALING IN FRUITS AND
VEGETABLES
EARLIER, MASHAKHORES USED TO DEAL ONLY IN ONE OR
TWO FRUITS AND VEGETABLES PURCHASING FROM THE
WHOLESALERS OR COMMISSION AGENTS IN
SUBSTANTIAL QUANTITIES AND SELLING TO THE BULK
CONSUMERS LIKE HOTELWALAS, PARA-MILITARY UNITS
OR SMALL RETAILERS AND VENDORS.
NOW THEY WORK MORE LIKE ORDINARY RETAILERS
SELLING TO ALL TYPES OF CUSTOMERS.

15. AGENT MEDDLEMEN
AGENT MEDDILEMEN ACT AS REPRESENTATIVES OF
THEIR CLIENTS. THEY DONOT TAKE TITLE OF THE
PRODUCE AND HENCE DONOT OWN IT. THEY
MERELY NEGOTIATE THE PURCHASE AND / OR SALE.
THEY SELL SERVICES TO THEIR CLIENTS – BUYERS OR
SELLERS – AND NOT THE GOODS AND
COMMODITIES.
THEY RECEIVE INCOME IN THE FORM OF
COMMISSION OR BROKERAGE. THEY SERVE AS
BUYERS OR SELLERS IN EFFECTIVE BARGAINING.

16. TYPES OF AGENT MIDDLEMEN
COMMISSION AGENTS OR ARHATIAS
IN UNREGULATED MARKETS TWO TYPES
KACCHA ARHATIAS
PACCA ARHATIAS
IN REGULATED MARKETS ONE TYPE ONLY
`A’CLASS TRADER
BROKERS

17. COMMISSION AGENTS OR ARHATIAS..
A PERSON OPERATING IN THE WHOLESALE
MARKET WHO ACTS AS THE REPRESENTATIVE OF
EITHER A SELLER OR A BUYER.
HE IS USUALLY GRANTED BROAD POWERS BY
THOSE WHO CONSIGN GOODS OR WHO OREDER
THE PURCHASE.
HE NORMALLY TAKES OVER THE PHYSICAL
HANDLING OF THE PRODUCE, ARRANGES FOR ITS
SALE, COLLECTS THE PRICE FROM THE BUYER,
DEDUCTS HIS EXPENSES AND COMMISSION, AND
REMITTS THE BALANCE TO THE SELLER.
HE EXTENDS ALL THESE FACILITIES TO BUYER-
FIRMS AS WELL, IF ASKED FOR.

18. KACCHA ARHATIAS
THEY PRIMARILY ACT FOR THE SELLERS
INCLUDING FARMERS
THEY SOMETIMES PROVIDE ADVANCE
MONEY TO FARMERS AND ITINERANT
TRADERS ON THE CONDITION THAT THE
PRODUCE WILL BE DISPOSED OF THROUGH
THEM
THEY CHARGE ARHAT OR COMMISSION IN
ADDITION TO THE NORMAL RATE OF
INTEREST ON THE MONEY THEY ADVANCE

19. PACCA ARHATIAS
THEY ACT ON BEHALF OF THE TRADERS IN
THE CONSUMING MARKET
THE PROCESSORS AND BIG WHOLESALERS
EMPLOY PACCA ARHATIAS AS THEIR AGENTS
FOR THE PURCHASE OF A SPECIFIED
QUANTITY OF GOODS WITHIN AGIVEN PRICE
RANGE

20. FUNCTIONS OF COMMISSION AGENTS..
COMMISSION AGENTS KEEP AN ESTABLISHMENT, A SHOP, A
GODOWN AND A REST HOUSE FOR THEIR CLIENTS AND
RENDER ALL FACILITIES TO THEM SO THAT THEY PREFER SALE
OF THEIR PRODUCE TO THEM THAN TO COOPERATIVE
MARKETING SOCIETY. THEY EXTEND FOLLOWING FACILITIES:
THEY ADVANCE 40-50% OF THE EXPECTED VALUE OF THE
CROP AS A LOAN TO FARMERS TO ENABLE THEM TO MEET
THEIR PRODUCTION EXPENSES
THEY ACT AS BANKERS FOR THE FARMERS. THEY RETAIN
THE SALE PROCEEDS AND PAY TO THE FARMERS AS AND
WHEN THE LATER REQUIRE THE MONEY
THEY OFFER ADVICE TO FARMERS FOR PURCHASE OF
INPUTS AND SALE OF PRODUCTS

21. FUNCTIONS OF COMMISSION AGENTS
THEY PROVIDE EMPTY BAGS TO ENABLE THE FARMERS
TO BRING THEIR PRODUCE TO THE MARKET
THEY PROVIDE FOOD AND ACCOMMODATION TO THE
FARMERS AND THEIR ANIMALS WHEN THE LATER COME
TO THE MARKET FOR THE SALE OF THEIR PRODUCE
THEY PROVIDE STORAGE FACILITY AND ADVANCE
LOANS AGAINST THE STORED PRODUCT UPTO 75% OF ITS
VALUE
THEY ARRANGE, IF REQUIRED BY THE FARMERS, FOR
THE TRANSPORTATION OF THE PRODUCE FROM THE
VILLAGE TO THE MARKET
THEY HELP THE FARMERS IN TIMES OF PERSONAL
DIFFICULTIES

22. BROKERS..
THEY RENDER PERSONAL SERVICES TO THEIR CLIENTS
IN THE MARKET BUT THEY DONOT HAVE PHYSICAL
CONTROL OF THE PRODUCE
THEY PRIMARILY BRING TOGETHER BUYERS AND
SELLERS ON THE SAME PLATFORM FOR NEGOTIATIONS
THEIR CHARGE IS CALLED BROKERAGE WHICH THEY
MAY CLAIM FROM THE BUYER OR THE SELLER OR BOTH
DEPENDING UPON THE MARKET SITUATION AND THE
SERVICES RENDERED
THEY RENDER VALUABLE SERVICE TO THE PROSPECTIVE
BUYERS AND SELLERS FOR THEY HAVE COMPLETE
KNOWLEDGE OF THE MARKET, OF THE QUANTITY
AVAILABLE AND THE PREVAILING PRICES

23. BROKERS
BROKERS HAVE USUALLY NO ESTABLISHMENT
IN THE MARKET
THEY SIMPLY WANDER ABOUT IN THE
MARKET AND RENDER SERVICES TO CLIENT
THERE IS NO RISK TO THEM AS THEY SIMPLY
WORK TO BRING BUYERS AND SELLERS
TOGETHER FOR NEGOTIATION
IN REGULATED MARKETS WHERE GOODS ARE
SOLD THROUGH OPEN AUCTION, BROKERS
HAVE NO ROLE TO PLAY

24. SPECULATIVE MIDDLEMEN
THOSE WHO TAKE TITLE TO THE PRODUCT WITH
A VIEW TO MAKING A PROFIT ON IT ARE CALLED
SPECULATIVE MIDDLEMEN
THEY ARE NOT REGULAR BUYERS OR SELLERS
THEY SPECIALIZE IN RISK TAKING
THEY BUY AT LOW PRICES WHEN ARRIVALS ARE
SUBSTANTIAL AND SELL DURING OFF-SEASON
WHEN PRICES ARE HIGH
THEY DO MINIMUM HANDLING OF GOODS
THEY MAKE PROFIT FROM SHORT-RUN AS WELL
AS LONG-RUN PRICE FLUCTUATIONS

25. PROCESSORS
PROCESSORS CARRY ON THEIR
BUSINESS EITHER ON THEIR OWN OR ON
CUSTOM BASIS
THEY ADD FORM UTILITY TO
AGRICULTURAL COMMODITIES
THEY ALSO ENGAGE IN ADVERTISING
ACTIVITY TO CREATE DEMAND FOR THEIR
PROCESSED PRODUCTS

26. FACILITATIVE MIDDLEMEN..
THEY RECEIVE THEIR INCOME AS FEES
OR SERVICES CHARGES AGAINST THE
SERVICES RENDERED BY THEM WHICH
FACILITATE OR ENHANCE BUSINESS OR
MARKETING PROCESSES
THEY DONOT BUY OR SELL DIRECTLY
BUT ASSIST IN THE SAME

27. FACILITATIVE MIDDLEMEN..
IMPORTANT FACILITATIVE MIDDLEMEN ARE
LABOURERS OR HAMALS: PHYSICALLY MOVE THE GOODS
WEIGMEN: FACILITATE CORRECT WEIGMENT OF THE
PRODUCE
GRADERS: SORT OUT THE PRODUCT INTO DIFFERENT
GRADES
TRANSPORTERS: ASSIST IN MOVEMENT OF GOODS
FROM ONE MARKET TO ANOTHER MARKET
COMMUNICATION AGENCY: HELP IN INFORMATION
SHARING ABOUT PRICE, QUANTITY etc.
ADVERTSING AGENCY: HELP IN PROMOTION
AUCTIONERS: HELP IN EXCHANGE FUNCTION BY
AUCTION OR BIDDING

28. SUMMING UP