Q.What is agricultural marketing? Explain the main problems faced by farmers in marketing their produce.
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Start your 14-day free trial to unlock the full solution →Agricultural marketing refers to the full set of activities — assembling, grading, storing, transporting and selling — involved in moving farm produce from the farmer's field to the final consumer, including the price discovery that occurs at each stage of this chain.
Indian farmers have historically faced several recurring problems in this process. A lack of adequate storage facilities near the farm often forces farmers into distress sales — selling produce immediately after harvest at low prevailing prices because they cannot afford to hold the crop while waiting for better prices later in the season. The presence of multiple layers of middlemen — village traders, wholesalers, commission agents, retailers — between the farmer and the final consumer means each layer takes its own margin, sharply reducing the proportion of the final consumer price that actually reaches the farmer. A lack of accurate market information leaves many farmers unable to judge whether the price they are offered locally is fair compared to prices prevailing elsewhere. In some unregulated local markets, non-standardised weighing and grading practices, and outright malpractice, have further disadvantaged farmers who lack bargaining power or information. …
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