Presentation of Rural Marketing
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PRESENTATIONON
CLASSIFICATION OF AGRICULTURAL PRODUCTS WITH REFERENCE TO
PERISABITITY
CSJM,UNIVERSITYINSTITUTE OF BUSINESS MANAGEMENT
MBA(BUSINESS ECONOMICS)BATCH-(2011-2013 )
3RD SEMESTER SUBMITTED TO-PROF. MUKESH RANGA
MADE BY- MAMTA YADAV PREETI VERMA
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Agricultural Marketing
• Agricultural Marketing is the study of all the activities, agencies and policies involved in the procurement of farm inputs by the farmers and the movement of agricultural products from the farms to the consumers.
• The marketing of agricultural commodities is different from the marketing of manufactured commodities due to special characteristics of the agricultural sector
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Characteristics of Agricultural products
1.Perishability- Most of these are Perishable in nature;The period of their perishability varies from a few hours to a few
months.2.Seasonality- Produced only in a particular season & can’t be produced throughout
the year. Hence, price fall during harvest
3.Bulkiness-Most of the agril. goods are bulky in nature, hence, transportation &
storage is difficult & expensive.
4.Variation in Quality -
There is large variation in the quality of these goods.
So, grading & standardization is somewhat difficult.
5.Supply-Supply is uncertain & irregular. Price fluctuates substantially.
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Classification of Agricultural Markets
Sl. No.Base for
classificationTypes
1. Location
1. Village markets2. Primary wholesale markets3. Secondary wholesale markets4. Terminal markets5. Sea-board markets
2. Coverage
1. Local/village markets2. Regional markets3. National markets4. World/international markets
3. Time span 1. Short period markets2. Long period markets3. Secular-Markets:
4. Volume of transactions 1. Wholesale markets2. Retail markets
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CLASSIFICATION OF AGRICULTURAL PRODUCTS
Agricultural products can broadly be classified into seven categories:
Food grain items
Oilseed produce
Horticulture produce
Fibre products
Beverage items
Cash items
Animal produce
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Marketing agencies for important agricultural commodities
Marketing channels are routes through which agricultural products move from
• producers to consumers• Producers• Middlemen
Merchant Middlemen• Wholesalers• Retailers• Itinerant traders and village merchants• Mashakhores
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Cond………..
Agent middlemenCommission agents or arhatiasKaccha arhatiasPacca arhatiasBrokers
Speculative middlemenProcessors
Facilitative middlemen
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Marketing channels for agriculturalproducts
• Marketing channels are routes through which agricultural products move from producers to consumers.
• The length of the channel varies from commodity to commodity depending on the quantity to be moved.
• The form of consumer demand and degree of regional specilisation in production.
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The Food Marketing Channel
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length of marketing channelsMarketing channels for agricultural products vary from product to
product, country to country , lot to lot and time to time.For example-The marketing channels for fruits is different from
those for food grains.Packagers play a crucial role in the marketing of fruits.Processors play a dominant role in such societies.In developing countries like india ,however , most food grains are
purchased by consumers in the raw form and processing is done at the consumer’s levels.
With the expansion in tranportation and communication network,Changes the structure of demand and the development of markets.
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Marketing Channel for food grains:
• Producer – consumer (village sale)• Producer–village merchant–consumer (local sale)• Producer–wholesaler-cum-commission agent retailer–
consumer• Producer–primary wholesaler–secondary wholesaler–
retailer– Consumer• Producer–Primary wholesaler–miller–consumer
(Bakers).• Producer->govt.procurement–retailer–consumer.• Producer–government–miller–retailer–consumer.
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Marketing channels for food grains
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Marketing channels for oil seeds
• Producers-consumers• Producer-village trader-retailer-consumers• Producer-oil seed wholesailer-retailer-oil
wholesailer-oil retailer-oil consumers• Retailer-village trader-processor-oil
consumers• Producer-government agencies-processor-oil
wholesailer-oil retailer-oil consumers
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Marketing channels for oil seeds
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Marketing Channels for Fruits:
• Producer–consumer (village sale)• Producer–Trader–consumer (local sale)• Producer–pre-harvest contractor–retailer–
consumer• Producer–commission agent–retailer–consumer.• Producer–pre-harvest contractor–commission
agent– retailer–consumer• Producer–commission agent–secondary
wholesaler– retailer–consumer (distant market).
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Marketing Channels for Vegetables
• Producers–consumer (village sale)• Producer–retailer–consumer (local sale)• Producer–Trader–commission agent–retailer–
consumer.• Producer–commission agent–retailer–
consumer• Producer–primary wholesaler–secondary
wholesaler– retailer– consumer (distant market).
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Marketing Channels for cotton
• Producer–village merchant–wholesaler or ginning factory– wholesaler in lint–textile mill (consumer).
• Producer–Primary wholesaler–ginning factory–secondary wholesaler–consumer (Textile mill).
• Producer– Trader– ginning factory– wholesaler in lint– consumer (Textile mill).
• Producer–govt. agency–ginning factory–consumer (Textile mill).
• Producer–Trader–ginning factory–wholesaler–retailer– consumer (non-textile use).
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Marketing channels for Live Poultry
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Factors affecting channels:
• There are several channels of distribution depending upon type of produce or commodity. Each commodity group has slightly different channel. The factors are :
• Perishable nature of produce .e.g. fruits, vegetables, flowers, milk, meat, etc.
• Bulk and weight–cotton, fodders are bulky but light in weight.
• Storage facilities.• Weak or strong marketing agency.• Distance between producer and consumer. Whether local
market or distant market.
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ReferencesDr. S.S ACHARYA AND Dr N.L.AGARWAL
Agricultural Marketing In India, 4/E• T.P.GOPALASWAMY of Rural
marketing
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THANK YOU