Question

what are the features of agricultural marketing system?

Answer 1

Features Of Agricultural Goods
The agricultural products are of different nature than industrial products. So the features of products can be divided in three major types on the basis of production, marketing and consumption.

1.Production-related features of agricultural goods
The production related features of agricultural products are as follows:

a. Seasonal production
Most of the agricultural goods are produced only in certain season. The food crops such as maize, paddy, wheat etc.; cash crops such as sugarcane, tobacco, jute and vegetables, potato and fruits are produced in certain suitable seasons. But some products such as fish, diary products, eggs etc. can be produced in all seasons. Every thing cannot be produced in all seasons. So, seasonal products affect agricultural market.

b. Scattered Production
Except some limited goods most of the agricultural goods are produced in all parts of the country. As farmers live scattered in different parts of the country, middlemen collect agricultural products and supply to markets.



Also Read: Meaning Of Agricultural Marketing

2. Marketing-related features of agricultural goods
The major marketing related features of agricultural goods are as follows:

a. Perishable products
Most of agricultural products are of perishable nature, but all are not equally perishable within same duration of time. Some perish within shorter time and some others remain usable for little longer. Fish, milk, meat, fruits, vegetables etc. remain fresh only for shorter time, so they are quick perishable. Such products should be supplied to market as quicker and possible. Special cold storage is needed to keep such goods safe and fresh. Food crops/grains such as rice, wheat, mustard etc, remain usable relatively for long time.
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b. Bulky products
Most of the agricultural products are weighty and bulky. So, transport and storage cost rises higher than the value of these products.

c. Quality and quantity variation


Quality and quantity of agricultural products become different according to the productivity of land, season and climate. The quality of seeds, use of fertilizers etc. also causes difference in quality.

3. Consumption-related features of agricultural goods
The consumption features of agricultural products are as follows:

a. Continuous consumption
Agricultural products are very important to meet daily needs of people. So, it is necessary to have regular supply of agricultural products such as food grains, fish, meat, milk, fruits etc to satisfy daily demand.

b. Inelastic demand
The demand for agricultural products remains relatively less elastic. Demand for such products does not decrease or increase due to rise or fall of prices. The consumers are compelled to meet their daily needs at minimum level, even if the price of agricultural products rises up.

c. Price fluctuation
The price of agricultural products remains unstable. It fluctuates time and again. The price of agricultural products is easily affected by supply and demand.

Answer 2

an agricultural market is a perfectly competitive market where there are large no. of buyers and sellers selling homogeneous product at a uniform price..
since there are large number of buyers and sellers So. no individual buyer or seller can have a major impact on price as the share will be too small to whole of the market

there are no transportation costs

also buyers and sellers have a perfect knowledge about the market situation

freedom of entry and exit of firms..