ii. Significance of Agriculture Marketing
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Monetizing the Produce |
Marketing facilitates and improves the sale of agricultural products. The value of these products is factored by the demand and supply status, which in turn is impacted by the marketed volume and the asking price. Also, a well-developed marketing infrastructure and efficient marketing system promote Student Notes: competitive trade resulting in better price realization for the farmer. |
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Acting as a source of market information and price signal |
The information from the marketing plays crucial role to empower the producers capable of producing marketable surplus. It provides them with relevant demand linked information on quantity, desired quality, standards and specifications of the produce. It provides information that helps the supply chain to become efficient by indicating logistical and infrastructural weaknesses such as post-harvest and storage losses. |
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Reducing the role of intermediaries |
An efficient marketing chain progressively decreases the number of hands agricultural produce changes both for economic and qualitative reasons. In such a scenario, role of intermediaries is replaced by institutional mechanisms or market structures. |
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Capital formation and investment in technology |
Effective agricultural marketing can appropriately showcase the growth potential in the sector. This will encourage investment and penetration of better technologies in the sector. |
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Value addition in agriculture |
Robust marketing systems provide access of agricultural produce to downstream industries, creating a potential for large scale value addition. For example, large scale ‘Makhana’ snack industry has been developing in the recent past after marketing initiatives were taken by Bihar Government. |
Apart from above, well-functioning markets can drive growth, ensure food security, employment and economic prosperity in rural areas of the country via the agricultural sector.