marketing problem of agriculture in india

8/7/2019 Marketing Problem of Agriculture in India

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PROBLEMS IN MARKETING OFPROBLEMS IN MARKETING OF

AGRIAGRI-- PRODUCTS IN INDIAPRODUCTS IN INDIA



Performance of AgriculturePerformance of AgricultureIndia has madeIndia has made spectacularspectacular progressprogressin agriculture since independence.in agriculture since independence.Production of food grain registeredProduction of food grain registerednearly four times increasenearly four times increaseA mere 54.9 million metric tonnes inA mere 54.9 million metric tonnes in

19491949 50 to 203 million metric50 to 203 million metrictonnes in 1998tonnes in 1998 99.99.

continuous growth of about 3 percontinuous growth of about 3 percent to 4 per cent in food graincent to 4 per cent in food grainproduction and about 4 to 6 per cent production and about 4 to 6 per cent in nonin non--food grain production.food grain production.



India Position in World in Production of SelectedIndia Position in World in Production of SelectedCommodityCommodity

ItemItem India s % Share toIndia s % Share tothe Worldthe World

India Rank inIndia Rank inWorldWorld

Total PulseTotal Pulse 21.121.1 First First TeaTea 27.727.7 First First Jute & allied fiberJute & allied fiber 61.361.3 First First

Wheat Wheat 11.711.7 SecondSecondPaddyPaddy 22.422.4 SecondSecondGroundnut Groundnut 22.222.2 SecondSecond

sugarcanesugarcane 21.821.8 SecondSecondVegetableVegetable 9.29.2 SecondSecondFruit Fruit 8.68.6 SecondSecondCottonCotton 18.818.8 ThirdThirdCerealCereal 11.211.2 ThirdThirdCourse grainCourse grain 3.83.8 FourthFourth



Crop wise Estimated Marketable Surplus asCrop wise Estimated Marketable Surplus asPercentage of ProductionPercentage of Production

CommodityCommodity MarketableMarketablesurplussurplusRatio ( %)Ratio ( %)

CommodityCommodity MarketableMarketablesurplussurplusRatio ( %)Ratio ( %)

RiceRice 4343 MustardMustard&Rape&Rape

84.384.3

Wheat Wheat 51.551.5 OtherOtheroilseedsoilseeds

86.386.3

Fruit Fruit 97.097.0 SugarcaneSugarcane 92.992.9

PulsePulse 72.472.4 CottonCotton 100100

OilseedOilseed 79.679.6 VegetablesVegetables 83.083.0

Groundnut Groundnut 68.368.3



Crop wise Estimated Marketable Surplus as Percentage of Production

0

20

40

60

80

100

120

Rice

Wheat

Pulse

Oilseed

Groundnut

Mustard

and Rape

Other oi

lseedsSug arcan

eCot

ton

Veg etables

Fruit

Commodity

Percentage of Prod

uction



Sc enario of Agri cultural Mark e tin gSc e nario o f Ag ricultural Mark e tin g

This surplus needs to beThis surplus needs to bemarketed so that producer get marketed so that producer get good market margin.good market margin.

Marketing agriculture produce isMarketing agriculture produce isvery complicated and consists of very complicated and consists of complex operation.complex operation.

Due to imperfect market Due to imperfect market structure and conduct, market structure and conduct, market performance is not satisfactory.performance is not satisfactory.



Agricultural MarketingAgricultural Marketing

in Indiain IndiaNational Commission on AgricultureNational Commission on Agricultureagricultural marketing starts with a decision toagricultural marketing starts with a decision to

produce a saleable farm commodity and it produce a saleable farm commodity and it involves all aspects of market structure of involves all aspects of market structure of system, both functional and institutional, basedsystem, both functional and institutional, based

on technical and economic considerations andon technical and economic considerations andincludes pre and post includes pre and post- - harvest operations,harvest operations,assembling, grading, storage, transportationassembling, grading, storage, transportationand distributionand distribution



Agricultural Marketing in IndiaAgricultural Marketing in India

The Indian Council of AgriculturalThe Indian Council of AgriculturalResearchResearch

(a) assembling (concentration)(a) assembling (concentration)(b) preparation for consumption(b) preparation for consumption

(processing) &(processing) &

(c) distribution (marketing)(c) distribution (marketing)functions of agriculture marketing.functions of agriculture marketing.



Number of Agriculture Market in IndiaNumber of Agriculture Market in India

Market Market TypeType NumberNumber

Agriculture Market Agriculture Market Whole Sell Market Whole Sell Market 7304 (17)7304 (17)

Primary rural market Primary rural market 27,294 (65)27,294 (65)

Regulated market Regulated market Principal market Principal market 2355 (6)2355 (6)

Sub YardSub Yard 4822 (12)4822 (12)

TotalTotal 41775 (100)41775 (100)

Source: Directorate of marketing and inspection, Faridabad



Problem Areas in AgricultureProblem Areas in AgricultureMarketingMarketing

CONSTRAINT FACTORSCONSTRAINT FACTORS

Characteristic of AgricultureCharacteristic of AgricultureProduction SystemProduction SystemPost Harvest Practice Constraint Post Harvest Practice Constraint Poor Institutional Support Poor Institutional Support ServiceServiceMarket Structure Conduct andMarket Structure Conduct andPerformancePerformance



Problem Areas in AgricultureProblem Areas in AgricultureMarketingMarketing

Characteristic of AgricultureCharacteristic of AgricultureProduction SystemProduction System

Small Scale ProductionSmall Scale Production

Seasonality of Production andSeasonality of Production andDemandDemand



ContContPost Harvest PracticePost Harvest PracticeConstraint Constraint

Lack of Poor InfrastructureLack of Poor InfrastructureLack of PackagingLack of Packagingof the Productsof the ProductsLack of Grading andLack of Grading andStandardisationStandardisation



ContContPost Harvest PracticePost Harvest PracticeConstraint Constraint

Overlapping Marketing ChannelOverlapping Marketing ChannelLack of Marketing InformationLack of Marketing InformationLack of Knowledge of Market Lack of Knowledge of Market IImmediate Need of Cashmmediate Need of Cash



ContContPoor Institutional Support Poor Institutional Support ServiceService

Poor Mark et Extensi on Poor Mark et Exte nsion Supp ort Se rvic eSupp ort Se rvic eLack of Appropriat e Policy L ack of Appropriat e Policy

Support Support



ContCont

Market Structure Conduct Market Structure Conduct and Performanceand Performance



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marketing problem of agriculture in india

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