It refers to the excess of produce above the ‘own consumption’ by the farming families. It is that part of agriculture production which a farmer is ready to sell in the market after meeting his family consumption needs. The marketable surplus in the case of cotton is 95%, 90% in sesame & around 80% in the case of sugarcane.

1. •Meaning
•Features
•Present Marketing System In India
•Defects

2. Marketable Surplus
 It refers to the excess of produce above the ‘own
consumption’ by the farming families.
 It is that part of agriculture production which a farmer is
ready to sell in the market after meeting his family
consumption needs.
 Marketable surplus in case of cotton is 95%, 90% in sesame
& around 80% in case of sugarcane.

3. Meaning
 It encompasses all such activities which are related to the
procurement, grading, storing, transporting & finally selling
the agricultural product.
 In the words of Faruqe, “Agricultural marketing comprises all
operations involved in the movement of farm produce to
ultimate consumer.

4. Features
 Carters Food Requirement:- It
carters to the growing food
requirements of the ever
Increasing population.
 Raises Monetary Income:- It
raises monetary income of
farmers which leads to an
increase in the demand for the
industrial products.

5. Features
 Growth Of industries: Increase
in the agricultural produce
ensures increased availability of
raw material for the industrial
sector.
 Possibilities Of Exports:- It
increases greater possibilities of
exports generating foreign
exchange which is badly needed
by developing economy.

6. Present Agricultural Marketing
System In India
 Sales In Villages:- Farmers in India tend to sell the bulk of
their produce in the unorganized rural markets. This is
because output of many farmers is so small that it is not
worth while to transport, they do not have enough of
transport facilities, they are generally indebted to
moneylenders

7. Present Agricultural Marketing
System In India
 Sales In Markets:- In unregulated markets, the bulk of the
farmers produce is purchased by commission agents
themselves who also happen to be moneylenders. Most of
the markets are now being regulated so as to offer fair price
to the farmers under the direct supervision of the market
committee.

8. Present Agricultural Marketing
System In India
 Other Methods:- Other methods include
1. Sale through cooperative societies
2. Govt. purchase system i.e. purchase of agricultural produce
by govt. directly from farmers. In pursuance of its direct
purchase system the govt. has established Food Corporation
of India, Jute Co., Cotton Co. of India & various such
institution.

9. Defects
 Unorganized Farmers:- Indian
farmers are not organized. This
causes high transport cost & low
bargaining power.
 Multiplicity of intermediaries:-
There is a long chain of
intermediaries between farmers
& the consumer who earns the
profits which otherwise accrued
by farmers.

10. Defects
 Lack Of Grading:- Farmers in
India do not understand the
importance of grading of produce
& mixed with poor quality &
fetches a low price.
 Incontinence Of Transport:-
There is a general lack of
economical & fast means of
transport between the rural &
urban areas. As a result
transport cost is very high.

11. Defects
 Malpractices In Mandi:-
Malpractices in the markets is a
common feature in the context of
agriculture marketing in India.
These relate to weights &
measures.
 Lack Of Market Intelligence:-
Farmers are usually lack
knowledge of market conditions.
They are solely depend on
commission agents for price of
products.

12. Defects
 Lack Of Proper Storage
Facilities:- There is lack of
proper storage facility in the rural
areas. Crops are often dumped
in the places which is open to
pests & insects.
 Forced Sale:- Average Indian
farmers seldom sells his produce
as desired. Because of many
reasons he is forced to sell his
produce immediately after
harvest.

13. Defects
 Lack Of Finance:- Farmers
need credit for financing
agriculture operations. But small
farmers lack of security, cannot
get loan from banks &
cooperative societies. The
traders & moneylenders give
loans on the conditions that
farms will sell crop only to them
which they gets low price for
their products.

14. By Tarseam Singh