Agricultural marketing is the process of moving agricultural products from farm to consumer, including assembling, grading, storage, transportation, processing and sale.[span_1](start_span)[span_1](end_span)
• Better price to farmers[span_2](start_span)[span_2](end_span)
• Reduce marketing cost[span_3](start_span)[span_3](end_span)
• Reduce post-harvest losses[span_4](start_span)[span_4](end_span)
• Improve quality[span_5](start_span)[span_5](end_span)
• Consumer satisfaction[span_6](start_span)[span_6](end_span)
A market is a place or system where buyers and sellers exchange goods and services.[span_7](start_span)[span_7](end_span)
| Market | Description |
|---|---|
| Local Market | Village level |
| Primary Market | Nearby town |
| Secondary Market | District level |
| Terminal Market | Metro cities |
| International Market | Global trade |
| Market | Description |
|---|---|
| Short Period Market | Perishable commodities |
| Long Period Market | Durable commodities |
| Secular Market | Permanent |
| Market | Characteristics |
|---|---|
| Perfect Competition ⭐⭐⭐ | Many buyers & sellers |
| Monopoly ⭐⭐⭐ | One seller |
| Monopsony ⭐⭐⭐ | One buyer |
| Oligopoly | Few sellers |
| Oligopsony | Few buyers |
Buying, Selling[span_8](start_span)[span_8](end_span)
Storage, Transportation, Processing, Packaging[span_9](start_span)[span_9](end_span)
Financing, Grading, Market Information, Risk Bearing[span_10](start_span)[span_10](end_span)
Examples:
• Farmer → Consumer[span_11](start_span)[span_11](end_span)
• Farmer → Retailer → Consumer[span_12](start_span)[span_12](end_span)
• Farmer → Wholesaler → Retailer → Consumer ⭐⭐⭐[span_13](start_span)[span_13](end_span)
• Farmer → Commission Agent → Wholesaler → Retailer → Consumer[span_14](start_span)[span_14](end_span)
| Term | Meaning |
|---|---|
| Marketable Surplus ⭐⭐⭐ | Quantity available for sale after family & farm needs |
| Marketed Surplus | Actual quantity sold |
Sorting produce according to quality.[span_15](start_span)[span_15](end_span)
Better price, Export quality, Consumer confidence[span_16](start_span)[span_16](end_span)
Agricultural Produce (Grading & Marking) Act, 1937[span_17](start_span)[span_17](end_span)
Formerly ISI (Quality certification for industrial products).[span_18](start_span)[span_18](end_span)
Fixing quality standards for agricultural produce.[span_19](start_span)[span_19](end_span)
Scientific storage, Price stabilization, Credit against warehouse receipts[span_20](start_span)[span_20](end_span)
| Organization | Year |
|---|---|
| CWC (Central Warehousing Corporation) ⭐⭐⭐ | 1957 |
| SWC (State Warehousing Corporation) | State level |
Used for: Potato, Fruits, Vegetables, Flowers[span_21](start_span)[span_21](end_span)
Money paid for a commodity.[span_22](start_span)[span_22](end_span)
Price depends on: Demand, Supply[span_23](start_span)[span_23](end_span)
Law of Demand: Price ↑ → Demand ↓ | Price ↓ → Demand ↑[span_24](start_span)[span_24](end_span)
Law of Supply: Price ↑ → Supply ↑ | Price ↓ → Supply ↓[span_25](start_span)[span_25](end_span)
| Price | Meaning |
|---|---|
| Market Price | Actual selling price |
| MSP ⭐⭐⭐ | Minimum Support Price |
| Procurement Price | Government purchase price |
| Issue Price | Price charged by FCI |
Minimum guaranteed price announced by Government.[span_26](start_span)[span_26](end_span)
Recommended by: ⭐⭐⭐ CACP[span_27](start_span)[span_27](end_span)
Declared by: Government of India[span_28](start_span)[span_28](end_span)
Protect farmers, Assure income, Prevent distress sale[span_29](start_span)[span_29](end_span)
Government purchasing price for procurement.[span_30](start_span)[span_30](end_span)
Price at which FCI supplies food grains through PDS.[span_31](start_span)[span_31](end_span)
Established: ⭐⭐⭐ 1965[span_32](start_span)[span_32](end_span)
Functions: Recommend MSP, Cost analysis, Price policy[span_33](start_span)[span_33](end_span)
Established: ⭐⭐⭐ 1965[span_34](start_span)[span_34](end_span)
Functions: Procurement, Storage, Buffer stock, Public Distribution System[span_35](start_span)[span_35](end_span)
Stock maintained by Government for Food security & Price stabilization.[span_36](start_span)[span_36](end_span)
Purpose: Supply food grains to poor at subsidized prices.[span_37](start_span)[span_37](end_span)
National Agriculture Market[span_38](start_span)[span_38](end_span)
Launched: ⭐⭐⭐ 2016[span_39](start_span)[span_39](end_span)
Objective: Online trading of agricultural commodities.[span_40](start_span)[span_40](end_span)
Transparent pricing, One Nation One Market, Better competition[span_41](start_span)[span_41](end_span)
Agricultural Produce Market Committee[span_42](start_span)[span_42](end_span)
Functions: Regulated markets, Fair trade, Prevent exploitation[span_43](start_span)[span_43](end_span)
Established under APMC Act.[span_44](start_span)[span_44](end_span)
Advantages: Fair weighing, Transparent auction, Better prices[span_45](start_span)[span_45](end_span)
Examples: NAFED ⭐⭐⭐, AMUL[span_46](start_span)[span_46](end_span)
Advantages: Better bargaining, Better prices[span_47](start_span)[span_47](end_span)
National Agricultural Cooperative Marketing Federation[span_48](start_span)[span_48](end_span)
Established: ⭐⭐⭐ 1958[span_49](start_span)[span_49](end_span)
Functions: Procurement, Export, Buffer stock[span_50](start_span)[span_50](end_span)
World Trade Organization[span_51](start_span)[span_51](end_span)
Established: ⭐⭐⭐ 1995[span_52](start_span)[span_52](end_span)
Headquarters: ⭐⭐⭐ Geneva, Switzerland[span_53](start_span)[span_53](end_span)
Functions: International trade, Reduce trade barriers[span_54](start_span)[span_54](end_span)
General Agreement on Tariffs and Trade[span_55](start_span)[span_55](end_span)
Established: ⭐⭐⭐ 1947 (Replaced by WTO in 1995).[span_56](start_span)[span_56](end_span)
Internal Trade: Within country.[span_57](start_span)[span_57](end_span)
International Trade: Between countries.[span_58](start_span)[span_58](end_span)
Balance of Trade = Exports − Imports[span_59](start_span)[span_59](end_span)
• Positive: Trade Surplus[span_60](start_span)[span_60](end_span)
• Negative: Trade Deficit[span_61](start_span)[span_61](end_span)
Agricultural TOT = Price Received ÷ Price Paid[span_62](start_span)[span_62](end_span)
Degree of responsiveness of demand due to price change.[span_63](start_span)[span_63](end_span)
Types: Elastic, Inelastic, Unitary[span_64](start_span)[span_64](end_span)
Collection of market information.[span_65](start_span)[span_65](end_span)
Examples: Prices, Arrivals, Demand, Exports[span_66](start_span)[span_66](end_span)
Price Spread = Consumer Price − Farmer Price ⭐⭐⭐[span_67](start_span)[span_67](end_span)
Marketing Efficiency = Value of Goods ÷ Marketing Cost[span_68](start_span)[span_68](end_span)
Higher value indicates higher efficiency.[span_69](start_span)[span_69](end_span)
| Institution | Year |
|---|---|
| CACP | 1965 ⭐⭐⭐ |
| FCI | 1965 ⭐⭐⭐ |
| CWC | 1957 ⭐⭐⭐ |
| NAFED | 1958 ⭐⭐⭐ |
| WTO | 1995 ⭐⭐⭐ |
| GATT | 1947 ⭐⭐⭐ |
| e-NAM | 2016 ⭐⭐⭐ |
• Agricultural marketing links farmers and consumers.[span_70](start_span)[span_70](end_span)
• Market is a place of exchange.[span_71](start_span)[span_71](end_span)
• Perfect competition has many buyers and sellers.[span_72](start_span)[span_72](end_span)
• Monopoly has one seller.[span_73](start_span)[span_73](end_span)
• Monopsony has one buyer.[span_74](start_span)[span_74](end_span)
• Oligopoly has few sellers.[span_75](start_span)[span_75](end_span)
• Buying is an exchange function.[span_76](start_span)[span_76](end_span)
• Selling is an exchange function.[span_77](start_span)[span_77](end_span)
• Storage is a physical function.[span_78](start_span)[span_78](end_span)
• Transportation is a physical function.[span_79](start_span)[span_79](end_span)
• Processing adds value.[span_80](start_span)[span_80](end_span)
• Packaging protects produce.[span_81](start_span)[span_81](end_span)
• Grading improves quality.[span_82](start_span)[span_82](end_span)
• Standardization fixes quality standards.[span_83](start_span)[span_83](end_span)
• AGMARK was introduced under the Agricultural Produce (Grading & Marking) Act, 1937.[span_84](start_span)[span_84](end_span)
• BIS certifies industrial products.[span_85](start_span)[span_85](end_span)
• Marketable surplus is the quantity available for sale.[span_86](start_span)[span_86](end_span)
• Marketed surplus is the quantity actually sold.[span_87](start_span)[span_87](end_span)
• Warehouse receipts help farmers obtain loans.[span_88](start_span)[span_88](end_span)
• CWC was established in 1957.[span_89](start_span)[span_89](end_span)
• Cold storage reduces spoilage.[span_90](start_span)[span_90](end_span)
• Price is determined by demand and supply.[span_91](start_span)[span_91](end_span)
• MSP protects farmers from distress sales.[span_92](start_span)[span_92](end_span)
• CACP recommends MSP.[span_93](start_span)[span_93](end_span)
• Government of India announces MSP.[span_94](start_span)[span_94](end_span)
• CACP was established in 1965.[span_95](start_span)[span_95](end_span)
• FCI was established in 1965.[span_96](start_span)[span_96](end_span)
• FCI procures food grains.[span_97](start_span)[span_97](end_span)
• FCI maintains buffer stocks.[span_98](start_span)[span_98](end_span)
• Buffer stocks improve food security.[span_99](start_span)[span_99](end_span)
• PDS distributes food grains at subsidized rates.[span_100](start_span)[span_100](end_span)
• e-NAM was launched in 2016.[span_101](start_span)[span_101](end_span)
• e-NAM enables online agricultural marketing.[span_102](start_span)[span_102](end_span)
• APMC regulates agricultural markets.[span_103](start_span)[span_103](end_span)
• Regulated markets ensure fair trade.[span_104](start_span)[span_104](end_span)
• NAFED was established in 1958.[span_105](start_span)[span_105](end_span)
• NAFED is a cooperative marketing federation.[span_106](start_span)[span_106](end_span)
• WTO was established in 1995.[span_107](start_span)[span_107](end_span)
• WTO headquarters is in Geneva.[span_108](start_span)[span_108](end_span)
• GATT was established in 1947.[span_109](start_span)[span_109](end_span)
• WTO replaced GATT in 1995.[span_110](start_span)[span_110](end_span)
• Export means selling abroad.[span_111](start_span)[span_111](end_span)
• Import means buying from abroad.[span_112](start_span)[span_112](end_span)
• Balance of Trade = Exports − Imports.[span_113](start_span)[span_113](end_span)
• Trade surplus occurs when exports exceed imports.[span_114](start_span)[span_114](end_span)
• Trade deficit occurs when imports exceed exports.[span_115](start_span)[span_115](end_span)
• Terms of Trade compare prices received and prices paid.[span_116](start_span)[span_116](end_span)
• Price spread is Consumer Price − Farmer Price.[span_117](start_span)[span_117](end_span)
• Marketing efficiency increases when marketing costs decrease.[span_118](start_span)[span_118](end_span)
• Market intelligence provides price information.[span_119](start_span)[span_119](end_span)
• Auction is common in regulated markets.[span_120](start_span)[span_120](end_span)
• Transparent weighing benefits farmers.[span_121](start_span)[span_121](end_span)
• Cooperative marketing improves bargaining power.[span_122](start_span)[span_122](end_span)
• Storage reduces post-harvest losses.[span_123](start_span)[span_123](end_span)
• Transportation links production and consumption.[span_124](start_span)[span_124](end_span)
• Processing increases value.[span_125](start_span)[span_125](end_span)
• Grading improves export quality.[span_126](start_span)[span_126](end_span)
• Packaging protects produce during transport.[span_127](start_span)[span_127](end_span)
• Demand decreases when price rises.[span_128](start_span)[span_128](end_span)
• Supply increases when price rises.[span_129](start_span)[span_129](end_span)
• Elastic demand responds strongly to price changes.[span_130](start_span)[span_130](end_span)
• Inelastic demand responds weakly to price changes.[span_131](start_span)[span_131](end_span)
• Unitary elasticity equals one.[span_132](start_span)[span_132](end_span)
• Farmers benefit from higher marketing efficiency.[span_133](start_span)[span_133](end_span)
• Warehouse receipts can be pledged for credit.[span_134](start_span)[span_134](end_span)
• Cold chains are essential for perishables.[span_135](start_span)[span_135](end_span)
• Local markets operate at village level.[span_136](start_span)[span_136](end_span)
• Terminal markets are found in large cities.[span_137](start_span)[span_137](end_span)
• International markets involve cross-border trade.[span_138](start_span)[span_138](end_span)
• Marketing begins after harvest.[span_139](start_span)[span_139](end_span)
• Procurement strengthens food security.[span_140](start_span)[span_140](end_span)
• Issue price is fixed for PDS distribution.[span_141](start_span)[span_141](end_span)
• Market price is determined by market forces.[span_142](start_span)[span_142](end_span)
• Regulated markets reduce exploitation.[span_143](start_span)[span_143](end_span)
• NAFED supports agricultural marketing.[span_144](start_span)[span_144](end_span)
• CWC provides scientific storage.[span_145](start_span)[span_145](end_span)
• AGMARK ensures agricultural product quality.[span_146](start_span)[span_146](end_span)
• BIS is the national standards body.[span_147](start_span)[span_147](end_span)
• Price policy aims to stabilize markets.[span_148](start_span)[span_148](end_span)
• Government intervention helps reduce price volatility.[span_149](start_span)[span_149](end_span)
• Consumer welfare depends on efficient markets.[span_150](start_span)[span_150](end_span)
• Producers seek maximum returns.[span_151](start_span)[span_151](end_span)
• Middlemen are part of some marketing channels.[span_152](start_span)[span_152](end_span)
• Short marketing channels reduce costs.[span_153](start_span)[span_153](end_span)
• Long marketing channels involve more intermediaries.[span_154](start_span)[span_154](end_span)
• Cooperative societies reduce marketing costs.[span_155](start_span)[span_155](end_span)
• Price information improves farmer decisions.[span_156](start_span)[span_156](end_span)
• Marketing adds place utility.[span_157](start_span)[span_157](end_span)
• Storage adds time utility.[span_158](start_span)[span_158](end_span)
• Processing adds form utility.[span_159](start_span)[span_159](end_span)
• Transportation adds place utility.[span_160](start_span)[span_160](end_span)
• Efficient marketing increases farmer income.[span_161](start_span)[span_161](end_span)
• Agricultural trade supports economic growth.[span_162](start_span)[span_162](end_span)
• WTO promotes fair international trade.[span_163](start_span)[span_163](end_span)
• MSP is announced before sowing for major crops.[span_164](start_span)[span_164](end_span)
• Buffer stocks help stabilize prices.[span_165](start_span)[span_165](end_span)
• Public distribution ensures food availability.[span_166](start_span)[span_166](end_span)
• Transparent markets encourage competition.[span_167](start_span)[span_167](end_span)
• Agricultural marketing is a key part of agricultural economics.[span_168](start_span)[span_168](end_span)
• Efficient markets benefit both farmers and consumers.[span_169](start_span)[span_169](end_span)