Explain the defects of agriculture marketing
Answers
Prima facie, the quality of produce is low due to a number of factors:
(i) Poor quality of seeds,
(ii) Primitive methods of cultivation,
(iii) Lack of pest and disease control measures,
(iv) Dependence on erratic monsoon (drought or flood),
(v) Lack of adequate storage facilities to protect the crop from rains and rats,
(vi) Deliberate adulteration and dumping and so on.
a general rule, there is hardly any grading of the commodities to be marketed. Therefore, the purchaser has little, if any, confidence in the quality of the product(s). Of course, the British Government passed the Agricultural Produce (Grading and Marketing) Act in 1937 to solve this problem. But nothing really has happened. As per the Act, licenses are issued on a selective basis to reliable merchants, under the supervision and control of the Government staff. The graded commodities are subsequently passed on to the market under the label of “AGMARK”.
The average Indian fanner does not have .adequate storage facilities. Moreover, there is no satisfactory warehousing facilities in the market. For these two reasons the farmer has to sell his produce immediately after the harvest. He cannot wait to obtain better prices in the future. Moreover, due to lack of storage facilities, farmers are unable to obtain loans from co-operative marketing societies or even commercial banks against the security of the stored output.
India’s railroad network is grossly inadequate compared to its needs. There are hardly 2.8 km of rail tract per 100 square km area in India. The condition in rural areas is even worse. The road conditions in rural areas are really very bad. Even the rich cultivators, having surplus to dispose off, are often not interested in going to the mandis. Most rural roads are un-metalled and cannot be used during the monsoon season.
The market for agricultural products in India is not perfectly competitive in the sense that the farmers do not usually get adequate information about the price that prevail in big and organised markets. Due to lack of communication facilities, the information about market prices rarely reaches the farmers.
Agriculture marketing refers to the process of buying and selling agricultural products.
Some of the main defects of agriculture marketing include:
(1.) Lack of infrastructure: In many developing countries, there is a lack of modern infrastructure, such as roads, storage facilities, and processing plants, which makes it difficult to transport and store agricultural products.
(2.) Limited access to markets: Small farmers often have limited access to markets, and may not be able to sell their products at a fair price due to a lack of bargaining power.
(3.) Lack of information: Small farmers often lack information about prices and demand, which can make it difficult for them to make informed decisions about what to grow and when to sell their products.
(4.) Lack of credit: Many small farmers do not have access to credit, which can make it difficult for them to invest in their farms or take advantage of market opportunities.
(5.) Price instability: Agricultural prices can be volatile, which can make it difficult for farmers to plan for the future.
Overall, these defects can lead to low incomes and poverty for farmers, and can also result in food insecurity and malnutrition in communities that rely on agriculture for their livelihoods.
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