Sample Material of Our IAS Mains GS Online Coaching Programme
Subject: General Studies (Paper 3 - Technology, Economic
Development, Bio diversity, Environment, Security and Disaster Management)
Topic: Storage, transport and marketing of agricultural produce
and issues and related constraints
Storage, transport and marketing of agricultural produce
and issues and related constraints
• Marketing is an integral part of agriculture, it encourages
‘the farmers to. invest more and increase production
• The simplest form of agricultural marketing is the buying and selling of .the
• However , in modern sense , the agricultural produce undergoes a series of
exchanges from one hand to another before it finally reaches the consumer.
WHAT IS AGRICULTURE MARKETING?
• According to the National Commission on Agriculture -
Agricultural marketing is a process which starts with a decision to produce a
saleable farm commodity; involves all aspects of market structure of system,
both functional and institutional, based on technical and economic
considerations and includes pre and post- harvest operations viz. assembling,
grading , storage, transportation and distribution. What is the need for
efficient agricultural marketing?Agricultural marketing and industrial marketing
• Long ago , India agriculture was subsistence farming . With the development of
means of transport and storage facilities, agriculture became commercial in
character and the peasants grew those crops which fetch them better prices.
• Thus, the cropping pattern is no longer dictated by what a farmer needs for
his own personal consumption but what is responsive to the market in terms of
prices received by him.
• Further, the trade is organized but farmers are not conversant with, the
complexities of the marketing system.. A- farmerish and icapped by several-
disabilities a seller and is forced to sells his produce at an unfavourable
place, time and price. ‘Due to all these there is a need of an efficient
agricultural marketing system.
WHAT SHOULD BE THE OBJECTIVES OF AN EFFICIENT MARKETING
• To enable farmers to get the best possible returns,
• To provide facilities for selling the produce at an incentive price,
• To reduce the price difference between the pri mary producer and ultimate
• To make available all products of farm origin to consumers at reasonable price
and within reasonable time.
WHAT FACILITIES ARE NEEDED FOR EFFICIENT; AGRICULTURAL
The following basic facilities are required by a farmer.
• Proper storing facilities.
• Holding capacity- to wait till best prices are fetched.
• Adequate and cheap transport facilities so that he is able to reach Mandi
rather than disposing it off at his village only.
• Clear and timely information about the market prices so that, he is not
• Organized and regulated markets so that he is not ripped off by Dalals and
• As small as possible number of inter meicrtaries.
PROBLEMS WITH CURRENT MARKETING SYSTEM
Discuss the problems in the agricultural marketing system in
India. What steps have been taken to improve it?
IMPROPER STORAGE FACILITIES
• No proper ware ho using facilities in villages. The farmers
are forced to store the produce in mud-vessels or katcha storehouses.
• Result of this unscientific storage is either wastage or hastily disposing off
• Remedy is establishment of Rural Go downs and warehouses. To so me extent,
setting up of Central Warehousing Corporation arid State Warehousing Corporation
has improved the situation.
LACK OF GRADING AND STANDARDIZATION
• The re i s no pro pe r grad i ng and standardization of
farm produce. This leads to Dhara (heap) sales in which all qualities of produce
are sold in one common lot.
• Farmer is unable to get better price for better produce and this implies that
there are no incentives to use better farm inputs and produce better varieties.
• Thus the f armer producing better qualities is not assured of a better price.
Hence there is no incentive to use better seeds and produce better varieties.
INADEQUATE TRANSPORT FACILITIES
• There are highly inadequate transport facilities because
only a small number of villages are joined by railways and pucca roads to
• The result is that farmers carry their produce to Mandi on either bullock
carts or other such means. The produce, which is ‘perishable, has to be dumped,
to nearby market at considerably low market prices.