This presentation contains the major problems associated with agricultural marketing with special reference to Jharkhand.

1. RAMAKRISHNA MISSION
VIVEKANANDA EDUCATIONAL
AND RESEARCH INSTITUTE
Problems of Agricultural Marketing
And their solutions
Submitted to:
Mr.Arindam
Ghosh

2. OUR GROUP MEMBERS
1. AMRITMAY MAITY(R17502)
2. ANGSHUMAN BARMAN(R17503)
3. ANINDITA KUNDU(R17504)
4. EKATA KONAR(R17512)
5. SATYANANDA BADIA(R17522)
6. SOUVIK GAYEN(R17529)

3. INTRODUCTION
An organized marketing system ensures better returns to the farmer.
It also stables the market prices. It protects the interest of both consumers
and producers.But unfortunately in most of developing and underdeveloped
countries agricultural marketing is not well organized and farmers are
facing many problems regarding marketing of their their products and
facing loss year after year.

4. Why
Jharkhand ?
2
• Domestic consumption of agri. Andallied
produce
• One of the highest GSDP state in India
• Presence of leading food processors
including Mother Dairy, Parle, Real agro etc.
Large consumer market
1
Stable, progressive and decisive Govt.
• Forward looking policy & practices.
• Agriculture is accorded the priority sector
status.
• Single window support & facilitation.
• Market linkage.
4
• Abundance of vegetables, fruits,
grains and animal products
• Favourable weather condition
• Fertile land and availability of ground
and surface water
Availability of raw material
3 Strategic location
• Jharkhand is the gateway to eastern India
and SAARC nations.
• Well connected nationally and
internationally.
• Upcoming ADKIC industrial corridor
connecting 7 states will pass through
Hazaribagh and Dhanbad.
Page 425 October2018
SCOPE

5. Investment Environment & Opportunities in FoodProcessing-Jharkhand 6
A
28
Agricultural Markets
in Jharkhand
28
Mandis
631
Rural Market
8
Farmer-producer
organisation
19
Mandis in
eNAM
192
Secondary
Assembly
Market

6. A LARGE NUMBERS OFMIDDLEMAN
LACK OF STORAGE FECILITY
PRODUCT COLLECTION
LACK OF GRADING
POOR QUALITY OF PRODUCT
problems
LACK OF TRANSPORTATION FECILITY
LACK OF CREDIT FACILITIES
MARKET NEWS

7. A LARGE NUMBERS OFMIDDLEMAN
• The farmers generally sell their products to the middle men and
they sale that into the retail market thus middle man benefited
from both producer and seller.
• A poor farmer borrows the money from them and sellshis
product at lower rates.
• Middlemen makes excessive profits and farmers can not get retail
price of market.

8. LACK OF TRANSPORTATION
FACILITY
•It is the main obstacle in the way of efficient marketing.
•The rural areas are not linked with the market by roads.
•A lot of agricultural product is wasted due to transportproblem.
•The producers have to sell their products at lower cost even in loss due
to high transportation cost.

9. LACK OF CREDIT FACILITIES
The credit should be available in proper time, in proper amount and at
the most convenient place, preferably at the door stapes of the borrower.
Credit from institutional sources is not adequate. So, they have to take
lone from the private money lenders.
Several Time taking formalities for getting loan from banks.
Limited numbers of banks in rural areas.

10. LACK OF STORAGE FACILITY
• The storage facilities are required by the producers as well as by the
government as agro-products are highly perishable.
• The farmers need storage facility to sell their products at a
suitable time to get more profit.
• Due to lack of storage facilities a lot of product is damaged and the
farmers have to sell them anyhow, even though they are facing
loss(distressed sale)

11. PRODUCE COLLECTION
In Jharkhand most of the farmers are small and marginal,
production is very low and scattered.
Absence of proper institution to collect all these small produces
and channelise them to the Market.
Large companies and processing industries are not interested to
collect these small produce from the individual farmers due to high
cost and time.

12. LACK OF GRADING
•In case of agricultural commodities the mixing of good and bad products
is very common in developing countries like India.
• There is no proper method for grading of agricultural crops.
•It creates a problem of marketing inside and outside the country.

13. POOR QUALITY OFPRODUCT
•Profit is also depends on the quality of product.
•In India, the quality of product is not properly maintained and most of the
products are poor in quality.
• certified companies do not accept local products because proper package
of practices and quality parameters are not maintained.

14. MARKET NEWS
•Most of farmers in developing and underdeveloped countries,
farmers concentrate on production only but they know nothing about
the market conditions, even the market rates.
•So farmer is unable to achieve the real price of his product.
BUYER
PRODUCER
BUYER PRODUCER
BUYER
MARKETING
NEWS
MARKET

15. DISTRESSED SALE
•A distressed sale is a circumstance when any product is sold in an urgent
manner.
•It is very common in agriculture marketing due to high transportation cost
and low market price.
•This problem can be solved by strengthening storage capacity and
transportation facility.

16. Measure To Improve The
Agricultural Marketing
Improved Transport Facilities
•The government should increase the road facilities and rural areas
should be linked with the markets. So that, they can sell their products
directly in the market.
•Vehicles with cool chain system should be promoted for long term
transportation.
•Village co-operatives and clusters are helpful for better business.

17. INCREASE THE CREDIT
FACILITIES
• The government should increase the credit facilities to the small and
marginal farmers with minimum formalities.
• No doubt all the commercial banks are providing this facility to the
farmers but still it is not sufficient.
• Credit should be coupled with crop insurance.
• Post credit follow up is very much important.

18. INCREASE IN STORAGE FACILITY
•Training should be given on low cost technologies of storage. (i.e storage of
tubers crops like ginger by digging and shading as indigenous process)
•Number of storage house should be increased at rural areas with subsidised rate.
FROM TO

19. MARKET REFORMS
•Market rates should be controlled
by Government.
Regular inspaction should be conducted
•To check the prices and quality products.
•A market union should be there.
Strict enforcement of Market Laws.
OBJECTIVES

20. NEW MARKETS
•New markets should be established to strengthen the business.
•Markets should be near the production centres.
•Markets should be well equipped and more centralized.
MARKET

21. COLD STORAGE
oThis is an important part of well organized markets.
oCold storage facility can increase the self life of the products.
oFarmers can sell their products at proper time and in proper rate.

22. MARKET INFORMATION
•The extension system should be strengthened through Market-led
extension(What to produce, How to produce, When to sell, Where to sell,
In what price to sell)
•Proper use of ICT in agriculture.
•Actual market rate should be brodcasted through radio channels or
specific websites or through any other medium.

23. GRADING OF PRODUCT
•Proper grading of products is helpful to determine the price.
•Proper grading is important for insurance.
•It can help the customers to chose products according to their demand.

24. MARKETING RESEARCH
Marketing Research provides-
Better understanding of consumer needs.
Reduce the risk of production failure.
Forecast future trades
IDENTIFICATION OF
PROBLEMS
ANALYSIS
SOLUTIONS AND
DESSEMINATION

25. conclusion
•Presence of several number of middle men is the most problem
important problem of agricultural marketing in India and other developing
countries.
•Enough amount of institutional credit with minimum formalities is the
only way to control the monopoly of private money lenders.
•Proper transportation and extended storage facility can minimize the
distressed sell.
•Government’s intervention should be increased in agricultural marketing.
•Strict enforcement of Law is badly needed to control the malpractices.

26. ANY QUESTIONS???
THANK YOU