ARM

• INADEQUACIES OF PRESENT Agriculture MARKETING SYSTEM

1. Poor warehouses facilities
2. Lack of grading and standardization:
3. Inadequate transport facilities
4. Presence of a large number of middlemen:
5. Malpractices in unregulated markets:
6. Inadequate market information
7. Inadequate credit facilities:
The agricultural inputs can be put under two categories—
consumable inputs and durable inputs. Consumable inputs
include fertilizers, pesticides, seeds etc., which are needed for
farming, season after season. Durable inputs include tractors,
motors, and pump sets, major farm machinery like harvesters,
threshers etc. are probably purchased once in lifetime
1. FERTILIZERS
2. Seeds:The seed is a trigger point which sets in motion the process
of technological change. The returns to investment depends
significantly on the quality of seed that is used in the production
of crops
3. PESTICIDES/INSECTICIDES
4. TRACTORS
• Problems Or Defects Of Agricultural Marketing :-

1. 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 transport
problem.
2. Poor Quality of Product :- Farmer is not using the improved seeds
and fertilizers so quality of production is very poor and its prices are
low in the market.
3. Role of Middleman :- The middleman also takes a big share of
farmer's income without doing anything. A poor farmer borrows the
money from them and sells his product at lower rates.
• 4. Lack of Grading :- In case of agricultural commodities the mixing of good and bad
products is very common in developing countries like India and Pakistan. There is no
proper method of grading these crops. It creates a problem of marketing inside and
outside the country.
5. Lack of Credit Facilities :-The credit facilities are not adequate to meet the
farmer's requirement. Poor farmer is borrows the money from private money
lenders at tied conditions.
6. Problems of Produce Collection :-The collection of produce from small farmers is
very expensive and a difficult process. It is a great problem for the efficient
marketing.
7. Lack of Storage Facility :- The storage facilities are required by the producers as
well as by the government. The farmers need storage to sell their product at a
suitable time. The government needs stores for keeping reserve stocks. Due to lack
of storage facilities a lot of product is damaged on railway stations and in open air.
• 7. Lack of Storage Facility :- The storage facilities are required by the
producers as well as by the government. The farmers need storage to
sell their product at a suitable time. The government needs stores for
keeping reserve stocks. Due to lack of storage facilities a lot of product
is damaged on railway stations and in open air.
8. Weight and Measures :- In various parts of weight and measures are
not same. So a farmer suffers a loss at the time of buying selling of his
product.
9. Market News :-Most of farmers in underdeveloped countries are
uneducated and they knows nothing about the market conditions. So
farmer is unable to achieve the real price of his product.
• “Measure to improve the agricultural marketing”
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• Following measures can be adopted to improve the agricultural marketing :
1. Improved Transport Facilities :- The government should increase the road
facilities and rural areas should be linked with the markets. It will enable the
farmer to sell his product in the market directly in the hands of consumers.
2. Increase in the Credit Facilities :- The government should increase the
credit facilities to the small farmers. No doubt all the commercial banks are
providing this facility to the farmers but still it is not sufficient.
3. Increase in Storage Facility :- The government should provide loan to the
framer for storage facilities. The government should also construct the stores
to keep the stocks of various goods.
• 4. Market Reforms :- The government should improve the market
system in the country. Market committee should be reorganized.
Markets inspectors should check the prices of agricultural products.
The strict laws should be introduced.
5. New Markets :- The government should build the new markets
near the producing centers. It will enable the farmer to get proper
reward.
6. Cold Storage :- This is an important part of organized markets.
These are very useful for the perishable goods like fruits and
vegetable. The government should expand the scope of cold
storage.
• 7. Market Information :- Market demand and supply condition can
be provided to the framers through radio, T.V and newspaper. The
government should also pay special attention to this side.
8. Grading of Product :- There are various agencies which are busy
in grading agricultural product. There is a need to expand these
organizations for effective of marketing system,
9. Marketing Research :- The government should allocate a
sufficient amount on marketing research to make the agricultural
marketing more effective.
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• The Growth and prosperity of the Indian Economy depends upon
the development and activities taking place in the two sectors of
the nation :
• RURAL SECTOR
• URBAN SECTOR
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• INDIAN ECONOMY
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• RURAL SECTOR URBAN SECTOR

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• AGRICULTURAL NON-AGRICULTURAL
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• Scope of marketing:-
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• 1. Large population:- According to 2011 census, rural population is 72%
of total population and it is scattered over a wide range of geographic
area.
• 2. Rising rural prosperity:- Average income level has unproved due to
modern farming practices, contract farming industrialization, migration to
urban areas etc.
• 3. Growth in consumption:- There is a growth in purchasing power of
rural consumers. The average per capita house hold expenditure is
Rs382/-
• 4. Change in life style:- Life style of rural consumer changed considerably.
• 5. Market growth rate higher than urban:- The growth rate of fast
moving consumer goods [FMCG] market and durable market is
high in rural areas. The rural market share is more than 50% for
products like cooking oil, hair oil etc.
• 6. Life cycle advantage:- The products which have attain the
maturity stage in urban market is still in growth stage in rural
market.
• 7. Rural marketing is not expensive:- Rural marketing cost falls far
below than the Urban marketing expenditure .
• Nirma was the first FMCG company which initiated and produced
goods according to the rural consumers in 1970. Nirmas rural
strategy influenced the Indian FMCG industry, and paved way for
others to follow. A number of companies in FMCG have adapted to
expand their base in rural market.
• “Gaon Chalo” By Tata Tea : “Gaon Chalo is a distinctive rural
marketing initiative started in the year 2006 in the Uttar Pradesh
by Tata tea.
• ICICI Bank , has bagged the 'Best Rural Marketing Initiative' Award for its
unique campaign on rural marketing, Kamdhenu.[ January 6, 2009 | PTI ]
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• PROBLEMS OF RURAL MARKETING IN INDIA
• i) Wide Area Coverage
• Rural markets are spread all over the country. Due to this doing marketing
in rural area becomes time consuming costly, inadequate & irregular.
• ii) Scattered Consumers
• As the nature of rural market is very wide. The consumers residing in rural
area are also scattered over wide area.
• iii) Management of Sales Personnel Difficult
• The manufactures or marketers have found that the sales personnel are not
ready to go to rural area, and do not show their initiative & interest, to work in
rural area. It may be because of inconvenience cause to them in terms of their
stay in rural area, transportation, languages spoken or any other aspects
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• iv) Error of Uniform Treatment Failing to understand
the market-life style- culture .. well.
• v) Flexible Pattern of Demand The demand for the product in rural area is
subjective. Sometimes it may too high or it may be too low, depend upon the
agricultural environment, as it is the main source of their earnings.
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• vi) Lack of Infrastructure Facilities
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• Vii) Communication Problems
• viii) Storage Problem or Warehousing Problem
• ix) Costly and Time-Consuming
• Marketing in rural area became coasty & time consuming due to long distances,
absence of intra-structural facilities and suitable marketing outlets. Too much
dependence on intermediaries creates problems before manufactures. It makes
marketing in rural area difficult and complicated, rural consumers have to pay more
price for the goods & services.
• x) Other Problems
• Along with the above noted problems, there are some problems which are associated
with the nature of rural consumers, which stands as barriers in the development of
rural markets. They are:
– Preference of cheaper local products to branded products
– The nature of seasonal purchases.
– Their buying decisions are slow.
– Low per capita income.