PRESENTATIONON

CLASSIFICATION OF AGRICULTURAL PRODUCTS WITH REFERENCE TO

PERISABITITY

CSJM,UNIVERSITYINSTITUTE OF BUSINESS MANAGEMENT

MBA(BUSINESS ECONOMICS)BATCH-(2011-2013 )

3RD SEMESTER SUBMITTED TO-PROF. MUKESH RANGA

MADE BY- MAMTA YADAV PREETI VERMA

Agricultural Marketing

• Agricultural Marketing is the study of all the activities, agencies and policies involved in the procurement of farm inputs by the farmers and the movement of agricultural products from the farms to the consumers.

• The marketing of agricultural commodities is different from the marketing of manufactured commodities due to special characteristics of the agricultural sector

Characteristics of Agricultural products

1.Perishability- Most of these are Perishable in nature;The period of their perishability varies from a few hours to a few

months.2.Seasonality- Produced only in a particular season & can’t be produced throughout

the year. Hence, price fall during harvest

3.Bulkiness-Most of the agril. goods are bulky in nature, hence, transportation &

storage is difficult & expensive.

4.Variation in Quality -

There is large variation in the quality of these goods.

So, grading & standardization is somewhat difficult.

5.Supply-Supply is uncertain & irregular. Price fluctuates substantially.

Classification of Agricultural Markets

Sl. No.Base for

classificationTypes

1. Location

1. Village markets2. Primary wholesale markets3. Secondary wholesale markets4. Terminal markets5. Sea-board markets

2. Coverage

1. Local/village markets2. Regional markets3. National markets4. World/international markets

3. Time span 1. Short period markets2. Long period markets3. Secular-Markets:

4. Volume of transactions 1. Wholesale markets2. Retail markets

CLASSIFICATION OF AGRICULTURAL PRODUCTS

Agricultural products can broadly be classified into seven categories:

Food grain items

Oilseed produce

Horticulture produce

Fibre products

Beverage items

Cash items

Animal produce

Marketing agencies for important agricultural commodities

Marketing channels are routes through which agricultural products move from

• producers to consumers• Producers• Middlemen

Merchant Middlemen• Wholesalers• Retailers• Itinerant traders and village merchants• Mashakhores

Cond………..

Agent middlemenCommission agents or arhatiasKaccha arhatiasPacca arhatiasBrokers

Speculative middlemenProcessors

Facilitative middlemen

Marketing channels for agriculturalproducts

• Marketing channels are routes through which agricultural products move from producers to consumers.

• The length of the channel varies from commodity to commodity depending on the quantity to be moved.

• The form of consumer demand and degree of regional specilisation in production.

The Food Marketing Channel

length of marketing channelsMarketing channels for agricultural products vary from product to

product, country to country , lot to lot and time to time.For example-The marketing channels for fruits is different from

those for food grains.Packagers play a crucial role in the marketing of fruits.Processors play a dominant role in such societies.In developing countries like india ,however , most food grains are

purchased by consumers in the raw form and processing is done at the consumer’s levels.

With the expansion in tranportation and communication network,Changes the structure of demand and the development of markets.

Marketing Channel for food grains:

• Producer – consumer (village sale)• Producer–village merchant–consumer (local sale)• Producer–wholesaler-cum-commission agent retailer–

consumer• Producer–primary wholesaler–secondary wholesaler–

retailer– Consumer• Producer–Primary wholesaler–miller–consumer

(Bakers).• Producer->govt.procurement–retailer–consumer.• Producer–government–miller–retailer–consumer.

Marketing channels for food grains

Marketing channels for oil seeds

• Producers-consumers• Producer-village trader-retailer-consumers• Producer-oil seed wholesailer-retailer-oil

wholesailer-oil retailer-oil consumers• Retailer-village trader-processor-oil

consumers• Producer-government agencies-processor-oil

wholesailer-oil retailer-oil consumers

Marketing channels for oil seeds

Marketing Channels for Fruits:

• Producer–consumer (village sale)• Producer–Trader–consumer (local sale)• Producer–pre-harvest contractor–retailer–

consumer• Producer–commission agent–retailer–consumer.• Producer–pre-harvest contractor–commission

agent– retailer–consumer• Producer–commission agent–secondary

wholesaler– retailer–consumer (distant market).

Marketing Channels for Vegetables

• Producers–consumer (village sale)• Producer–retailer–consumer (local sale)• Producer–Trader–commission agent–retailer–

consumer.• Producer–commission agent–retailer–

consumer• Producer–primary wholesaler–secondary

wholesaler– retailer– consumer (distant market).

Marketing Channels for cotton

• Producer–village merchant–wholesaler or ginning factory– wholesaler in lint–textile mill (consumer).

• Producer–Primary wholesaler–ginning factory–secondary wholesaler–consumer (Textile mill).

• Producer– Trader– ginning factory– wholesaler in lint– consumer (Textile mill).

• Producer–govt. agency–ginning factory–consumer (Textile mill).

• Producer–Trader–ginning factory–wholesaler–retailer– consumer (non-textile use).

Marketing channels for Live Poultry

Factors affecting channels:

• There are several channels of distribution depending upon type of produce or commodity. Each commodity group has slightly different channel. The factors are :

• Perishable nature of produce .e.g. fruits, vegetables, flowers, milk, meat, etc.

• Bulk and weight–cotton, fodders are bulky but light in weight.

• Storage facilities.• Weak or strong marketing agency.• Distance between producer and consumer. Whether local

market or distant market.

ReferencesDr. S.S ACHARYA AND Dr N.L.AGARWAL

Agricultural Marketing In India, 4/E• T.P.GOPALASWAMY of Rural

marketing

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