The agricultural marketing has been defective. The farmers are unable to get reasonable price for the products even after their hard work and are fully exploited by the middlemen.
Thank you Dr. Anagnostis I. Toulfatzis for sharing this valuable article which explained the difficulties encountered by the producers of agricultural goods, in marketing.
Thank you Mohunnad Massimi for your answer, I agree with you that the most important problem is the lack of a cooperative to gather the farmers in one unit to collect their products together and have a power in marketing their crops instead of the monopoly of commission agents.
I agree with all of you and I must add that market information is essential for producers,traders,consumers as well as the government, if market mechanism has to work efficiently. The relevant market information on prices and arrivals both in the past and present is essential for decision making by participants.
Thank you Dr. Angela Obetta for your answer, and you are right we have to add the market information because it is essential for producers,traders,consumers as well as the government, if market mechanism has to work efficiently
Many of the most important factors have been mentioned by my preceding contributors, but just let me add some. The first factor is government pricing policies, which can stand in-favor and in most cases against agricultural produce (to subsidize urban consumers-politically powerful). The second issue is the market structure how many buyers and sellers do operate in the market. If the market is dominated by few monopolist or oligopolist, naturally the market will suffer from market distortions. Third, the level of infrastructural development, including roads, communication facilities (market information flow), commodity markets etc will affect the performance of the agricultural marketing. Finally, the overall macro-economic stability of the given economy and the level of trust among the market participants. The solution is to reverse the negative position of the stated factors into positive and favorable conditions.
One way to improve de agricultural marketing consists in integrate a public / private alliance with the objective to development production and marketing’s plans around the supply chain, with the focus on the innovation of processes and products, to add value and attend the demand of the markets.
It is necessary to articulate activities between farming organizations, companies of agri processing industry and public institutions with the purpose to strengthen capabilities to development production and marketing’s plans around the supply chain. “to win – to win” will be the goal.
The problems we face in the agricultural marketing is linked to the non organization of the farmers. There are several constraints explaining this non organization: Difficult access to the farms, difficult access to market information, ... But, the best reason is that, in several cases, we don't have sufficient agroindustrial demand. When, the crops are grown only for household consumption, the price is interesting at the beginning, but through the time, when food selfsufficiency is reach, the price decline. Normally, agricultural demand is needed at that time to increase the value of the agricultural produces. When this condition is not realized, the farmers can not benefit from good price in order to cover largely their efforts and investment.
Thank you Dr. Kidanemariam Gebregziabher for adding this valuable answer, and you are right that the overall macro-economic stability of the given economy is a very important issue.
In the marketing system, there is a complete chain i.e producer-procurement-grading-packaging-storage-transport-delivery-stockist-retailer-consumer. A small farmer is a single unit in this chain and requires assistance from others in marketing of his produce. All others are interested in making out huge profit at each step whereas they are reluctant to pay a remunerative price to a farmer. Contrary to this , policy makers are insisting that farmer himself should produce and market at his own level which seems impossible because it requires time, money and education and other resources. I wonder why govt sector is not interested in marketing the produce of farmers after procuring, processing , storing and transport at national as well as international level. In fact, no body seems interested for the welfare of poor farmers. This is very sad part of the story.
Lack of market information , stirage structure .grading. and linking small famers to market is amajor constraints of agricultural marketingin india.also the complex nature of consumer behavior production pattern and demand pattern of indiviual influence the access of commodity into themarket.
Thank you Dr. Jose Antonio Silva for adding this valuable answer and I agree with you that it is important to integrate a public / private alliance with the objective to development production and marketing’s plans to improve the agricultural marketing system.
The major problems in agril marketing is multilpicity of middle man, markets are not integrated.system is inefficient,trders are organised but producer arenot organised , commission agent taking about 7percent ofcommission to sell the produce intothe marketetc .to solvethe problems Reliance type of retailoutlet specially for fruits and vegetables shouldbe initiated to procure and collect the vegetable from near by villages.As cost of transactions accouted about 50 percent of the price realis÷d by the garmers , producer company or organisation may collect the produce for sel lheir produce collectively.
Thank you Dr. Meera Kumari for adding these valuable answers, I agree with you that there should be a producer company to collect the produce and sell it after making the necessary sorting, packaging, ....
Dr Manoj Sharma and Dr. Meena Kumari clearly mentioned the marketing system in India. As said by them all producers are poor farmers who always struggling for selling their products in the market. Buyers and middlemen are very strong, powerful and play key role in this process.Goverment should take necessary steps to overcome this problem.
In this connection I would like share my personal experience, in our village for more than 4 decades onwards farmers are producing rice and coconut but today they are showing interest in agriculture due to frequent fluctuations in the prices/ low prices.In other hand middlemen and buyers become very rich.
Thank you Dr. Geddada Mohan Narasimha Rao for your answer, and I see that the only solution for these problems is to initiate a producer company to collect the produce and sell it after making the necessary sorting, packaging, ....either to the local market or export it abroad.
Thank you Dr Masnat All Hilary for your kind information but in fact there is no proper marketing facility for our produce such as coconut and paddy. Besides, sudden natural calamities also creating problems in the agriculture. Nowadays agriculture in not good profession for poor farmers.So people are slowly shifting over another professions.
Dr Masnat Al Hiary sir, from production to consumption, there is a long list of other players who are making huge profit or in other words, the farmer is at the bottom and consumer is at the top. Unless or untill farmer also enters in this chain at some other stage like, grader, packer, transporter retailer, processor etc, the condition of a poor farmer can not be improved. Therefore, all scientists invoved in the extension system must think on these lines , there are my personnal views.
Poor financial condition of farmers , higher marketing cost & lack of packaging facility followed by shortage of labour of both nature i.e. skill and unskilled during the peak marketing season are most common problems for marketing of all most all the produce, therefore Proper policy intervention from the government, considering the farmers and private players capable of engage in innovative marketing channels is the need of hours & organizing the farmers into grower‘s groups/commodity groups/ cooperatives/ Self Help groups/ producer companies may ensure the participation of diversely located small and marginal farmers and their linkage with the markets through collectivization of their produces. Like Samridhi’ with Kaushalya Foundation is integrating vegetable producers and shortening the supply chain in Nalanda district. There is a need to evolve mechanisms so that ‘institutions reaching to the smallholders’ rather than smallholders struggle to reach institutions.
Thank you Dr. Geddada Mohan Narasimha Rao for your feed back and I agree with you that : nowadays agriculture in not good profession for poor farmers, so people are slowly shifting over another professions.
The solution is creating competitive market system with development of infrastructure in market integration for smoothing out the price trend efficiency.
Absence of grading facity,lack of market information which is life of the markets.Farmers are not aware about the markerts in which pricesof commodities are high.Themajorproblems is to marketaredistantly located from the production centre.
Farmers are already in chain sir , major problems is that thereis lack of horizotal as well vertical integration in the market.if you assume the price of maize in the market are quite low but after processing the value of products has been increasd by 6 times. so therefore value addition is utmost important at primary level by the farmets to getfair price of theirproduce.
Thank you Dr. Aklilu Nigussie for adding this answer, yes it is important to create a competitive market system with development of infrastructure in market integration.
Thank you Dr. Meera Kumari for your valuable answers , but in my country -Jordan, there is a problem that there is no integration between farmers through a cooperative to do the post harvest technologies for the crops and market them so the commission agent at the central markets are taking the benefits without any added value to the crops
Thank you Dr. Olutosin Ademola Otekunrin for adding this valuable comment, and I agree with you that the high number of middlemen , the high transaction costs, and the high perishability of agricultural produce are the most important problems in the value chain.
Thank you Dr. Oluwaseun A. Otekunrin for adding your answer. Low level standardization of agricultural produce is one of the problems and we have to find solution to make the price accompanied with the quality.
Thank you Dr. Oluwaseun A. Otekunrin for adding your answer. Low level standardization of agricultural produce is one of the problems and we have to find solution to make the price accompanied with the quality.
Thank you Dr. Oluwaseun A. Otekunrin for adding your answer. Low level standardization of agricultural produce is one of most important problems and we have to find solution to make the price accompanied with the quality.
Thank you Dr. Oluwaseun A. Otekunrin for adding your answer. Low level standardization of agricultural produce is one of most important problems, and we have to find solution to make the price accompanied with the quality.
Thank you Dr. Haji Saediman for your answer, and I agree wit you that lack of collaboration among farmers, credit tying, low product quality, small quality of production in scattered locations, lack of knowledge of standard of agricultural products or processed products, all these issues are problems specially the lack of collaboration between farmers.