Agricultural Marketing and Issues

Marketing activity is becoming more and more important, particularly in developing countries. Agricultural marketing systems enable producers to produce the foods. For example, a marketing system may include distribution channels for agricultural goods from suppliers to retailers, information services for consumers, pricing and payment mechanisms for sellers, facilities for storage and handling of goods, and institutional arrangements. Agricultural marketing deals with both producer markets and consumer markets. These are two different types of markets. The producer market is that market that is in contact with producers, and the consumer market is that market in contact with consumers.  

What is Agricultural Marketing?

Agricultural marketing means the process of marketing agricultural goods. It entails explaining how these products are produced and how they will benefit consumers. For example, producers and retailers might describe how a particular crop is grown, harvested, and processed; and show that it meets quality standards for each type of food production. 

The agricultural marketing process refers to the distributions of foods and food products, durable goods, services, employment, and income in storage, transportation, retailing and wholesaling. It is the most important determinant of the market structure by influencing how different markets interact. The term “marketing system” describes these different functions working together to meet consumer demand.

Important Factors in Agricultural Marketing

Following are some of the most important factors in agricultural marketing:

• Consumer preferences are a major factor in agricultural marketing because they determine the demand for a product. Consumer preferences can change rapidly, making it necessary to promote new products and develop new distribution channels constantly. Product quality, price, and fashion all influence consumer preference.

• The costs of distribution or transportation need to be considered when selling products, especially those that need to be delivered quickly (such as perishable varieties).

• A good agricultural marketing system clearly understands how individual channels function and interact. Also, this is needed to ensure that every producer and retailer can benefit from the marketing process.

• Effective distribution networks are also important because they determine how effectively goods can be sold. Thus consumers will benefit from the market’s ability to manage production, promotion, and distribution efficiencies. On the other hand, a poor distribution system can mean that producers cannot sell their products to consumers and lose money.

• Information flow is necessary to sustain producer and consumer confidence in the market, so positive or negative feedback is essential.

• The processing of agricultural products takes place after they have been sold and can include packaging, cleaning, sorting, grading, etc. processing plays an important role in product quality. Still, it also affects the price because of its extra cost.

• The marketing system should be able to anticipate future trends, and this means reviewing the design of distribution channels, product range, and pricing policies.

Agricultural Marketing in India

Agriculture is the backbone of the Indian economy, around 60% of the total population is, directly and indirectly, dependent on agriculture. Due to the high cost of production and low yield per hectare, the agricultural sector has faced many problems like food shortage. It has also become difficult to meet their basic needs like clothing and shelter in some cases. Agricultural marketers in India play a vital role in the rural areas by increasing their income and purchasing power through agriculture inputs like fertilizers, pesticides, agricultural equipment, etc.

India is the largest producer of agricultural commodities in the world. There was an increase in the production of food grains, especially wheat and rice, which increased tremendously during the sixties and seventies. Farmers in countries like India, China, and Japan are more inclined towards cash crops than farmers in Western countries. Cash crops are crops that can be sold to earn money. Land in these countries is not as fertile as these people would have liked it to be because of the erosion problem on a large scale. Therefore, farmers in these countries have to grow either rice or wheat. Therefore, the farmers had to plow more land than before to be able to produce more grains.

Issues with Agricultural Marketing

Several issues affect the farmers and agricultural marketing in India. Among these issues, low labor force and poor market access are the most important. The government has to take some steps to reduce this problem. The price of agricultural commodities is dependent on agriculture production and the policies of governments.

Availability of credit to the farmers is also dependent on agricultural marketing in India. Most farmers are poor and do not have enough money to buy modern equipment or pay for agricultural inputs. They need credit for investment to increase their productivity and income. Some banks provide agricultural loans at higher interest rates, but still, many farmers take loans from private money lenders at higher rates than official rates.

Conclusion

The market forces of supply and demand play an important role in agriculture marketing in India. This is because there is more demand for agricultural commodities than supply. Farmers are unable to react rapidly to these changes, which leads to a decrease in their income and an increase in the price of agricultural commodities. Changes in weather also affect the supply of agricultural commodities. Adverse weather conditions like floods and droughts can destroy crops and cause a decrease in the supply of agricultural commodities. Therefore, the supply and demand market forces play an important role in agriculture marketing in India.