It gives information about the DIFFERENT RISKS IN MARKETING in detail.

1. DIFFERENT RISKS IN
MARKETING

2. MARKET RISK
• Market risk may be defined as the losses or damages
that could accrue due to the inability to accurately
predict the future state of variables connected with
marketing activities.
• There is always a time lag between the production
and consumption of farm products. The longer the
time lag, the greater would be the market risk.

3. DIFFERENT RISKS IN
MARKETING:
• Physical risk
• Price risk
• Institutional risk

4. PHYSICAL RISK:
• This includes a loss in the quantity and quality of the
product during the marketing process.
• It may be due to fire, flood, earthquake, rodents, insects,
pests, fungus, excessive moisture or temperature, careless
handling and unscientific storage, improper packing.
This together account for a large part of the loss of the
produce at the individual as well as at the macro level.

5. PRICE RISK:
• The prices of agricultural products fluctuate not only
from year to year, but during the year from month to
month, day-to-day and even on the same day. The
changes in prices may be upward or downward.
• Price variation cannot be ruled out as the factors
affecting demand for and the supply of agricultural
products are changing continuously.

6. EQUITY PRICE RISK:
• Equity price risk refers to the risk arising from the
volatility in the stock prices.
• While talking about equity price risk, it is important
to differentiate
Systematic risk
Unsystematic risk

7. COMMODITY PRICE RISK:
• Commodity price risk refers to the risk of unexpected
changes in a commodity price, such as the price of oil.
• These commodities may be grains, metals, gas, electricity
etc.

8. INSTITUTIONAL RISK:
• These risks include the risk arising out of a change in
Government's budget policy, in tariffs and tax laws, in
the movement restrictions, statutory price controls and
the imposition of levies.

9. THESIS
-Mr.B.Bensen

10. Marketing Problems of honey
in Kanyakumari district:
• The Price of honey prevailing in the market is not at all
favorable to the bee – keepers. The agencies are
enforcing strict quality control measures and unfair trade
practices against non – members. The grants and
subsidies given by the Government under its different
schemes are not given much publicity.

11. Problems in Marketing faced
by Beekeepers:
S.NO Reasons Mean score Rank
1) Markets at far off
distances
57.10 VI
2) Lack of transport
facility
54.40 VII
3) Competition from
Punjab honey
65.00 IV
4) Poor demand for
honey during
season
73.25 II
5) Lack of sufficient
traders
63.65 V
6) Low price of
honey
78.85 I
7) Storage problems 54.25 VIII
8) High cost of 66.80 III

12. Problems in marketing faced by
traders:S.NO Reasons Mean score Rank
1) Lack of transport
facility
58.83 VII
2) High cost of
transporting
61.40 IV
3) Loss during transit 65.80 II
4) Inadequate supply 59.47 VI
5) Financial constraints 74.07 I
6) Price fluctuations 57.30 VIII
7) Storage problems 60.23 V
8) Taxes 62.33 III

13. MINIMISATION OF RISKS:
Though risk cannot be eliminated, it can be minimized by proper risk
management.
1. The physical loss of a product may be reduced by
Use of fireproof materials in the storage structures to prevent accidents
due to fire;
Use of improved storage structures and giving necessary pre-storage
treatment to the product to prevent losses in quality arising out of
excessive moisture, temperature, attacks by insects and pests, fungus
and rodents;.
Use of better and quicker transportation methods and proper handling
during transit.

14. MINIMISATION OF PRICE RISKS :
• Fixation of minimum and maximum prices for
commodities by the government and allowing
movement of prices only within the defined range.
• Making arrangements for the dissemination of accurate
and scientific price information to all sections of society
over space and time.

15. • Operation of speculation and hedging:
The price risk associated with the commodities for
which the facility of forward trading is available may be
transferred to professional speculators through the
operation of hedging.

16. THANK YOU