Food is the fundamental necessity of every individual. We all earn so that we can eat good and healthy food. Once the food is ready, it has a long journey to travel. The food travels through a very famous market known as the agriculture market. Marketing agricultural commodities is really important. Hence we will talk about the marketing of agricultural commodities and its importance.
Marketing Agricultural Commodities
In simple terms we can also call it the agriculture market. In this market trading of various agricultural products and commodities take place. Marketing agricultural commodities takes place through these markets only. The major advantage of the agricultural markets is that it provides support to the farmers and even offers the Minimum Support Price i.e. MSP to them.
The Process Of Marketing Agricultural commodities
Marketing agricultural products is an interaction which incorporates every one of the parts of market structure, both useful and institutional, in view of specialized and financial contemplations, and incorporates pre-and post-reap plans.
The solid inter-relationship between agricultural production (farming), agricultural finance (credit), and agricultural marketing (sale of farm products) acknowledged by the Governments as well as by the experts.
This includes various aspects. Right from farming till sales other steps such as grading and assembling of the products and price fixation are also there. All of these have a major role to play in the process and development of the marketing of agricultural commodities.
Prerequisites Required For An Effective Market
Farmers should have sufficient storage facilities. Development of warehousing is quintessential. As these products are perishable in nature, thus it becomes important that a warehouse should be there for proper storage of the commodities.
Sufficient holding power plays a vital role. Farmers should be able to wait for favorable prices and be forced to sell stocks immediately. Hence they should receive sufficient amounts for their yield and should not be exploited.
Farmers ought to have the most recent market data in regards to supply, request and costs. Just controlled markets and a co-usable advertising society can supply market insight administrations. So without having sufficient information there are high possibilities that they might be taken advantage of and may get less sum for their yield.
Marketing depends on transport. We must have an efficient and economical network of road-rail transport for home trade. Adequate and cheaper transport can widen agricultural markets and offer remunerative prices also. There is a need for an efficient and effective logistics system. Without transport one cannot distribute the agricultural yield.
Marketing Agricultural Commodities Globally: Import And Export
The liberalization of world trade in agriculture has presented new prospects of growth.
Countries like India have witnessed a substantial improvement in the national supply of agri-products besides generating export surpluses in commodities such as rice and wheat and many more.
Anyway trading and bringing in develops public economies and extends the worldwide farming business sector. Each nation is blessed with specific benefits in assets and abilities. It opens a significant piece of chances for quite a long time.
Defects In The Agriculture Market
Lack Of Organization:
There is a lack of organization among producers. Producers are small and scattered. Hence they have no collective organization of their own to protect their interests.
Existence Of Middlemen:
There are countless mediators or brokers between the makers and the purchasers. Consequently these go between offering the produce to the purchasers at a more exorbitant cost and giving lower returns to the makers.
Inadequate Storage Facility:
The storage facility is far below the requirements in rural and urban areas. For example, grains lose weight due to the change of weather and below par facilities.
Lack of Transport Facility:
There are terrible streets which lead to misfortune during transportation and cause strain to the creatures. The cargo strategy followed by railroads in India is likewise not good.
Absence of Standardized Grading:
There is no standard grade for essential commodities like rice and wheat in the whole country. The ungraded mixed qualities are available at low prices.
Lack of Market Information:
The vast majority of the farmers are unskilled people and they are oblivious to the precise costs administering on the lookout. They rely upon off base data.
Marketing agricultural commodities – Steps for Improvisation
Numerous steps take place for the betterment of the agricultural market scenario. However some of them are the creation of a planned network of warehouses, linking co-operative credit with farming, marketing and processing, Development of rural transport, Adequate publicity to market information, Stabilization of food grain prices etc.
Hence by taking the above mentioned steps, marketing of agricultural commodities will be much easier. So if you need any kind of guidance feel free to reach Myanmar Golden Heart.