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AGRICULTURAL MARKETING.pptx

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AGRICULTURAL MARKETING.pptx

  1. 1. Dr.PA.KAJA MOHIDEEN,Ph.D., HEAD, DEPARTMENT OF ECONOMICS, C.ABDUL HAKEEM COLLEGE (A), MELVISHARAM-632509. RANIPET DT. AGRICULTURAL MARKETING
  2. 2. Agricultural Marketing- Meaning The term agricultural marketing is composed of two words- agriculture and marketing. Agriculture, generally means growing and/or raising of crops and livestock while marketing encompasses a series of activities involved in moving the goods from the point of production to point of consumption. Agricultural marketing essentially involves the buying and selling of agricultural produce. DEFINITION OF AGRICULTURAL MARKETING According to the National Commission on Agriculture, Agricultural marketing is a process which starts with a decision to produce a saleable farm commodity, and it involves all aspects of market structure or system, both functional and institutional, based on technical and economic considerations and includes pre-harvest and post-harvest operations of –  Assembling,  Grading  Storage  Transportation, and  Distribution
  3. 3. On the basis of location we may classify agricultural markets into: I. Local market/village market II. Primary markets III. Secondary market IV. Terminal markets. FUNCTIONS OF AGRICULTURAL MARKETING The major marketing functions involved in agricultural marketing are:  Concentration  Grading  Processing  Warehousing  Packaging  Distribution
  4. 4. IMPORTANCE OF AGRICULTURAL MARKETING  Break the vicious circle of poverty  Optimum utilization of agricultural resources  Enhance the standard of living  Basis of employment opportunity  Basis of industrial development  Creation of utilization  Basis of foreign trade  Source of national revenue  Create the environment for investment.
  5. 5. Problems and challenges of Agricultural Marketing System in India Agricultural marketing system- a system of institutions, agencies, producers, consumers involved in marketing of agricultural products through the marketing infrastructure prevailing in India. The marketing infrastructure involved in AM consists of :  Government  Agencies  Distribution support system or network  Agricultural markets  Agricultural marketing promotion institutes Problems and challenges were for the first time identified by the royal commission on agricultural marketing established in the year 1928.  Seasonality of agricultural sales in rural markets of India  Inequality of institutional market infrastructure and lack of producer organizations  Post harvesting immediate sale by farmers  Existence of many middlemen or agencies in AM system  Multiplicity of market charges  Existence of mal practices in AM system  Lack of reliable and up to date information  Absence of grading and standardization for assessing the quality of products
  6. 6. Challenges of Agricultural Marketing The diversity of agricultural production gives birth to several challenges to be faced by agricultural products and marketers. The challenges of agricultural marketing are:  Slow and poor adoption of new technologies of agricultural production.  Managing the geographical differences in urban and rural markets of India  Lack of infrastructure & market support for the AM  Inappropriate government policies for the promotion of agricultural produces  Lack of entrepreneurship & managerial skills amongst the Indian farmers
  7. 7. REMEDIAL MEASURES  Make arrangement for education and awareness program for rural farmers in order to improve their knowledge in improving agro produce and its marketing process. These programmes will help to educate the farmers in usage of quality inputs, online help for productivity improvement, etc.  Implement the rural development program in fast track to develop the infrastructural facilities such as road facility, communication facility, electricity, etc., in rural areas. This will help for easy transportation of agro produce to the market place.  Creation of direct contact network between the farmers and customers will help in reduce the so much functionaries involvement and also to reduce the unnecessary brokerage or commission to the functionaries. This may increase the profit of the farmers. This can be possible by creating local outlets in villages.  It is essential to provide subsidized power supply and loans to the farmers as the expenses towards power consumption takes considerable amount of investments.
  8. 8. CONCLUSION The agricultural marketing plays a vital role in easy way agro produce distribution to the customers. Like all the marketing activities, it also aims in profit making. It helps the farmers to reach their customers within very short lead time. In order to avoid isolation of small-scale farmers from the benefits of agricultural produce they need to be integrated and informed with the market knowledge like fluctuations, demand and supply concepts which are the core of economy

Editor's Notes

  • The term agricultural marketing is composed of two words- agriculture and marketing. Agriculture, generally means growing and/or raising of crops and livestock while marketing encompasses a series of activities involved in moving the goods from the point of production to point of consumption. Agricultural marketing essentially involves the buying and selling of agricultural produce.
















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