Agriculture Marketing in India | Business Economics Easy Notes 2022

Agriculture Marketing

  • Initially, India remained a food deficit country for almost two decades since independence but with the Green, Revolution India become not only self-sufficient in food grain but accumulated a huge food surplus.
  • Marketing of produce is the most profitable activity for Indian farmers. There are various ways by which farmers dispose of surplus produce. About the marketing of surplus farmers face several problems after independence Indian government adopted several measures to improve the system of agriculture marketing. It is most important to discuss Indian agriculture marketing with the following points -.
  1. Agriculture market Development: Efforts to develop agricultural marketing in several areas, specifically infrastructure development, information condition, training of farmers and traders in marketing and post-harvest issues, and support for the development of an appropriate policy environment.
  2. Agricultural Market infrastructure: Markets play a vital role in rural development, income generation, food security, and developing rural-market linkages. Efficient marketing infrastructure like wholesale, retail, and assembly markets and storage facilities is important for cost-effective marketing, minimizing post-harvest losses, and reducing health risks.
  3. Market information: Efficient market information has positive effects on farmers and traders. Up-to-date information on prices and other market factors helps farmers to bargain with traders and also get facilitates the distribution of products from rural areas to towns and between markets.
  4. Marketing training: Successful marketing requires learning new skills, new techniques, and new ways of obtaining information. Extension officers working with ministries of agriculture or NGOs are often well-trained in agricultural production techniques but usually lack knowledge of marketing or post-harvest handling. However, while they can identify such problems as poor prices, lack of transport, and high post-harvest losses, they are often poorly equipped to identify possible solutions.
  5. Enabling environments: Agricultural marketing needs to be conducted within a supportive policy, legal, institutional, macro-economic, infrastructural, and bureaucratic environment. Traders and others are generally unwilling to make investments in an indefinite policy climate, and that restricts imports and exports or internal produce movement.
  6. Recent developments: NDA Government made public a National Agriculture Policy envisaging over 4 percent annual growth. New marketing linkages between agribusiness, large retailers, and farmers are gradually being developed through contract farming, group marketing, and other forms of collective action. High priority has also been given to the development of animal husbandry, dairy, poultry, and aquaculture to diversify agriculture.


Indian agriculture sector planning is not only subsistence farming it is accepted as a marketing approach. With facing many defects government of India adopt measures to improve the system of agriculture marketing i.e. establishment of regulated markets, provision of grading, construction of warehouses, smart weighting with measurement, provision of standardization of produce, daily broadcasting of market prices of the agricultural product by SMS, internet.

Remedies for improving agricultural marketing in India

Elimination of Intermediaries

The elimination of intermediaries is required from agricultural marketing because unless the farmer is allowed the facility of direct sales to the customer, they can’t receive a good price for it. Hence, with the elimination of intermediaries, ‘consumer seed centers’ should be established where the farmer sells his crop.

Standard Weight facilities

For enhancing agricultural marketing standard weights are specifically required, they should be manufactured and managed by the govt. If any defect in weights is reported, a strict punishment system should be started to no fraud in marketing. This would not only improve the marketing system but also the fraudulent tendencies of the traders would be restricted.

Loan Facilities

In villages loans for the farmers are set by no institutional-like moneylenders, etc., who also make a sale of their products and use them on its basis. If the govt. establishes banks, cooperative societies, or other financial organizations then this problem can be solved. The farmers in the villages should also be motivated to spend economically and save money so that in their time of need they can use their savings. By this, the farmers wouldn’t sell their products in a hurry and obtain full profits out of it.

Development of Transport

Transport is the backbone of agricultural marketing. Therefore, roads should be constructed in rural areas which remain capable of transportation during all seasons. The tire-made bullock carts, diesel, patrol trucks, or tractors should be available in rural areas. Railways and waterways transport development is also essential, keeping in view the marketing of agricultural products so that the grains and other perishable products can be quickly sent to the market.

Promotion of Market Policies

Adequate arrangements should be made for the transmission of the approved prices of agricultural products and quantity of production etc. so that the policies relating to agricultural marketing can be put before the concerned parties.

Training Facilities

Proper training must be provided to the employees related to marketing administration. Training concerning the system of controlled markets etc. is essential for the improvement of agricultural marketing.

Regulation of ‘Mandis’

To provide a fair price to the farmers for their crops in the mandis, ‘organized mandis’ should be established by the govt. appropriate arrangements should be made in these mandi-markets for weighting, storage, transport, etc. and the farmers should also be given regular powers in it.

Market Survey

The Indian government must establish a Marketing and Inspection Directorate for market survey, which collects useful data regarding production, consumption, export, demand, price level, distribution system, etc., and publishes the data from time to time.

Stores Management

The Indian government has established The All India Storage Corporation recognizing the importance of storage. This corporation aims to establish stores in villages, cooperative societies are instructed to organize the store’s system. For this, financial assistants are provided to them.

Grading and Standardization of Products

Agricultural Production Act was passed in 1937 for the standardization etc. of agricultural products, but still, no recognizable progress has been made in this direction. For creating an efficient system of expansion of the activity of gradation and quality control, laboratories should be established. A central laboratory was established in Nagpur and provisional laboratories were established in Madras, Kanpur, Rajkot, Amritsar, Calcutta, and Mumbai but these should be situated in small villages and not in big towns.

Agriculture Marketing

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