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URICM, GANDHINAGARURICM, GANDHINAGAR

PROBLEMS IN MARKETING OF PROBLEMS IN MARKETING OF AGRI- PRODUCTS IN INDIAAGRI- PRODUCTS IN INDIA

Dr. A.K.Asthana HrishikeshDr. A.K.Asthana Hrishikesh Faculty StudentFaculty Student

Performance of AgriculturePerformance of Agriculture► India has made India has made spectacularspectacular progress progress

in agriculture since independence.in agriculture since independence.► Production of food grain registered Production of food grain registered

nearly four times increase nearly four times increase ► A mere 54.9 million metric tonnes A mere 54.9 million metric tonnes

in 1949 – 50 to 203 million metric in 1949 – 50 to 203 million metric tonnes in 1998 – 99. tonnes in 1998 – 99.

► continuous growth of about 3 per continuous growth of about 3 per cent to 4 per cent in food grain cent to 4 per cent in food grain production and about 4 to 6 per production and about 4 to 6 per cent in non-food grain production. cent in non-food grain production.

India Position in World in Production of India Position in World in Production of Selected Commodity Selected Commodity

Item Item India’s % Share India’s % Share toto the Worldthe World

India Rank in India Rank in WorldWorld

Total Pulse Total Pulse 21.1 21.1 First First

Tea Tea 27.7 27.7 First First

Jute & allied fiber Jute & allied fiber 61.3 61.3 First First

Wheat Wheat 11.7 11.7 Second Second

Paddy Paddy 22.4 22.4 Second Second

Groundnut Groundnut 22.2 22.2 Second Second

sugarcane sugarcane 21.8 21.8 Second Second

Vegetable Vegetable 9.2 9.2 Second Second

Fruit Fruit 8.6 8.6 Second Second

Cotton Cotton 18.8 18.8 Third Third

Cereal Cereal 11.2 11.2 Third Third

Course grain Course grain 3.8 3.8 Fourth Fourth

Crop wise Estimated Marketable Surplus Crop wise Estimated Marketable Surplus asas

Percentage of Production Percentage of Production CommoditCommodity y

MarketablMarketable surplus e surplus

Ratio ( %) Ratio ( %)

CommoditCommodity y

Marketable Marketable surplus surplus

Ratio ( %) Ratio ( %)

Rice Rice 43 43 Mustard Mustard &Rape &Rape

84.3 84.3

Wheat Wheat 51.5 51.5 Other Other oilseeds oilseeds

86.3 86.3

Fruit Fruit 97.0 97.0 Sugarcane Sugarcane 92.9 92.9

Pulse Pulse 72.4 72.4 Cotton Cotton 100 100

Oilseed Oilseed 79.6 79.6 Vegetables Vegetables 83.0 83.0

Groundnut Groundnut 68.3 68.3

Crop wise Estimated Marketable Surplus as Percentage of Production

0

20

40

60

80

100

120

Commodity

Perc

enta

ge o

f Pro

duct

ion

Scenario of Agricultural Scenario of Agricultural MarketingMarketing

►This surplus needs to be This surplus needs to be marketed so that producer marketed so that producer get good market margin.get good market margin.

► Marketing agriculture Marketing agriculture produce is very complicated produce is very complicated and consists of complex and consists of complex operation. operation.

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

Agricultural Agricultural Marketing in IndiaMarketing in India

National Commission on National Commission on AgricultureAgriculture

“ “ agricultural marketing starts with a agricultural marketing starts with a decision to produce a saleable farm decision to produce a saleable farm commodity and it involves all aspects of commodity and it involves all aspects of market structure of system, both market structure of system, both functional and institutional, based on functional and institutional, based on technical and economic considerations technical and economic considerations and includes pre and post- harvest and includes pre and post- harvest operations, assembling, grading, storage, operations, assembling, grading, storage, transportation and distribution”transportation and distribution”

Agricultural Marketing in Agricultural Marketing in IndiaIndia

The Indian Council of The Indian Council of Agricultural Research Agricultural Research

(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 functions of agriculture marketing. marketing.

Number of Agriculture Market in Number of Agriculture Market in India as on August 2001India as on August 2001

Market Market Type Type Number Number

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

Primary rural Primary rural market market

27,294(65) 27,294(65)

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

Sub Yard Sub Yard 4822(12) 4822(12)

Total Total 41775(100) 41775(100)

Source: Directorate of marketing and inspection, Faridabad

Graphic Presentation of Number of Agriculture Market in India as on

August 2001

Whole sell market17%

Primary rural

market65%

Principal market

6%

Sub Yard12%

Problem Areas in Agriculture Problem Areas in Agriculture MarketingMarketing

►CONSTRAINT FACTORSCONSTRAINT FACTORS

Characteristic of Agriculture Characteristic of Agriculture

Production SystemProduction System Post Harvest Practice Post Harvest Practice

ConstraintConstraint Poor Institutional Support Poor Institutional Support

ServiceService Market Structure Conduct and Market Structure Conduct and

PerformancePerformance

Problem Areas in Agriculture Problem Areas in Agriculture MarketingMarketing

►Characteristic of Characteristic of Agriculture Production Agriculture Production SystemSystem

Small Scale ProductionSmall Scale Production Seasonality of Production Seasonality of Production

and Demandand Demand

Cont…Cont… Post Harvest Practice Post Harvest Practice

ConstraintConstraint

Lack of Poor Lack of Poor InfrastructureInfrastructure

Lack of Packaging Lack of Packaging

of the Productsof the Products Lack of Grading and Lack of Grading and

StandardisationStandardisation

Cont…Cont… Post Harvest Practice Post Harvest Practice

ConstraintConstraint

Overlapping Marketing Overlapping Marketing ChannelChannel

Lack of Marketing Lack of Marketing InformationInformation

Lack of Knowledge of MarketLack of Knowledge of Market IImmediate Need of Cashmmediate Need of Cash

Cont…Cont…►Poor Institutional Poor Institutional

Support ServiceSupport Service

Poor Market Extension Poor Market Extension Support ServiceSupport Service

Lack of Appropriate Lack of Appropriate Policy SupportPolicy Support

Cont…Cont…

►Market Structure Market Structure Conduct and Conduct and PerformancePerformance

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