1.12. Suggestions to Improve Agricultural Marketing

Improving the marketing system of agricultural products would help the farmer to better his economy. The following are suggested measures that could reflect an improved agricultural marketing system:

♤ Establishment of More Regulated Markets: - A regulated market is one, which aims at the elimination of the unhealthy and unscrupulous practices, reducing marketing charges and providing facilities to producers. Under the regulated markets, its management should be vested with market committees in which the members would be producers, traders, officials of the marketing societies, officials of agricultural and animal husbandry etc. The institute should be self-financed, statutory and autonomous. Funds would be raised through licensing fees and market fees on the notified agricultural produce transacted in the premises of the market yard. The regulated market however has the following benefits:

◦ Farmers are encouraged to bring their produce directly to the markets.

◦ Farmers are protected from the exploitation of market functionaries.

◦ Farmers are ensured better prices for their produce.

◦ Farmers have access to up-to-date market information.

◦ The marketable surplus of the farmers will be increased.

◦ Marketing costs are lowered and producers share will be increased.

♤ Improvement in Standardization and Grading: - Standard specifications and grading should be designed to be useful to as many producers, traders and consumers as possible i.e., standards should reflect market needs and wants. One grade should have the same implications to producers, traders and consumers in the quality of the product. It must have mutually acceptable description. They should reflect commodity characteristics that all types of buyers recognize. The grading should be simple, clear and easy to understand.

♤ Improvement in Handling and Packing: - This refers to the adoption of new techniques for the physical handling of commodities throughout the various phases of marketing, for instance, the use of cold storage (mechanical refrigeration) in handling of perishables, new methods of packing etc. The most appropriate handling and suitable containers among the available ones are meant to use against dust, heat, rain, flies etc., to prevent considerable physical losses and quality deterioration.

♤ Provision of Storage Facilities: - Reduction of physical damage and quality deterioration in the products can be brought about through the application of the scientific techniques and provision of appropriate storage facilities depending on the nature and characteristics of products and the climatic conditions of an area. To this effect, more licensed warehouse are required. A licensed warehouse has the following benefits:

◦ Reduces the wastage in storage of various commodities by providing scientific storage facilities

◦ Assists the government in orderly marketing of agricultural commodities by introducing standard grade and specifications

◦ Issues warehouse receipts, a negotiable instrument in which commercial banks advance finance to the producers and dealers

◦ Assists government in the scheme of price support operations.

However, there would be procedures for storage which are not too bureaucratic. The depositor intending to store the produce in the warehouse would have to present a written requisition in the application prescribed by the warehouse. The commodity meant for storage will be properly packed and delivered at the warehouse. The depositor would have to disclose all details of the commodity including the market value in the application form. The commodity brought for storage will be graded and weighed by trained technical

personnel before the commodity can be stored. Different storage charges would also apply for different commodities and the stocks offered for storage will be insured against possible risks of fire, theft and floods, strikes and civil commotion.

♤ Improvement in Transport Facilities: - Link-up and associated road development is sine qua non for the success of market structure. The availability of efficient transportation encourages the farmers to the markets of their option to derive the price benefits. Rural roads particularly are in bad state during all seasons and more so during rainy season. Investment on roads should be given top priority. Also another problem is that perishables cannot be transported in closed wagons hence there is a need to provide necessary ventilation in whichever means they are to be transported.

♤ Market Information: - As such we have newspapers, price bulletins, reports of the government agencies etc., which provide market information. This information would be much more useful if an educational programme is made available to analyse and interpret the information at the markets. The raw data no doubt provides valuable information but skilful interpretation makes it useful to the farmers.

♤ Market Research: - Market research can be defined as the study of consumer demand by a firm so that it may expand its output and market its product. It centres on consumer's needs, preferences, impressions of a product, accessibility of markets, efficiency of marketing etc. Marketing research needs to be given top priority to improve up on the marketing system.

♤ Market Extension: - This involves the dissemination of needed information on marketing to producers. The farmers will be advised on consumer preferences, grading, packaging, transport, etc., in order to help them to secure better returns.

♤ Provision of Agricultural Marketing Training to Farmers: - Provision of training is of utmost importance in view of the malpractices resorted to by various market functionaries. The farmer needs to be trained in product planning i.e. crops and varieties to be grown, preparation of produce of produce for marketing, malpractices and rules and regulations, market information, promotion of group marketing, etc.

♤ Promoting Cooperative Marketing: - Cooperative marketing is the organized sale of farm products on a non-profit basis in the interests of the individual producer. Cooperative marketing are organized by farmers themselves and the profits are distributed among the farmer-members based on the quantity of the produce marketed by them.

The agricultural marketing system should basically ensure that the producer is encouraged to increase production, besides assuring the farmer remunerative prices for his produce and supplying the commodities to the customers at reasonable prices. In view of this, cooperative marketing societies should be established for meeting the requirements of the farmer. The benefits of cooperative marketing include:

o Make arrangement for the sale of produce of the members

o Provides credit facilities to the members on the security of agricultural produce

o Provide grading facilities, which would result in better price

o Make arrangement for scientific storage of the member’s produce

o Arrange the supply off inputs required by the farmers

o Undertake the system of pooling the produce of the members to enhance the bargaining power through unity of action

o Arrange for the export of the produce to enable the farmers get better returns

o Act as an agent of the government in procurement of food-grains, etc.

♤ Provisions for Cold Storage Facilities and Refrigerated Transport: - For perishable commodities like fruits and vegetables, quality losses are enormous and hence it would be necessary to take measures and devise means or methods of controlling and minimizing

losses. Preservation is, thus, a necessary adjunct of production and a vital link between production and consumption. Cold storage is the most important for the proper marketing of horticultural produce, because it had a definite season of production and the quality of the produce deteriorates quickly after harvest. Most fruits and vegetables losses moisture to the surrounding air almost any time in the humidity of the air is less than saturated. It is possible to maintain high humidity of the 80 – 95 per cent in proper cold storages and hence refrigeration is also beneficial in reducing moisture losses. Refrigerated transport for perishables needs to be provided during their movement in marketing channels. Besides road transport, railway wagons should also be suitably modified for transportation of perishables.

♤ Development of Physical Market: - Physical markets handling fruits and vegetables suffer from operational and management inadequacies. A country level plan to identify markets of national importance for fruits and vegetables and provision of need-based infrastructure from export point of view in all these markets is imperative.