Agricultural marketing

Defining
The study of agricultural marketing comprises of all
operations and the agencies conducting them, involved in the
movement of farm produced foods, raw materials and their
derivatives such as textiles from the farm to the final
consumers and the effects of such operations on farmers,
middlemen and consumers.
To ensure that agricultural produce is brought from villages
and moved to urban areas for human and industrial
consumption.

Features of agricultural commodities

Small and scattered production.
Size of land holding Proportion of
in hectares
holding (%)
Marginal farmers

Up to 1 ha

56.50%

Small farmers

1-2 ha

18

Semi-medium farmers

2-4 ha

14

Medium farmers

4-9 ha

9.10

Large farmers

Above 10 ha

2.40

As the small farmers production is very small they

cannot influence the market supply or the price
of his produce.

Features of agricultural commodities

Seasonal production
Bulky and perishable products
Variation in quality and quantity: production
depends on environmental factors like rainfall
and pest incidence.
Unorganised market

Marketable surplus
Is required for feeding the urban population and as
raw materials for manufacturing and processing
industries.
The farmer keeps some quantity of the output to
meet his requirements for family consumption,
seeds, cattle feed, payment to labour, carpenter,
mechanic, landlord as rent etc. and balance quantity
of produce is made available to non farm population.
MS=P-R

Marketed Surplus
The quantity of farm produce actually sold
irrespective of his requirements for family, farm
needs and other requirements. Marketed surplus
can be more than or less than or equal to the
marketable surplus.

Marketable surplus<marketed surplus: farmers retains less than his

requirements. Common for small and marginal farmers who are forces to sell
the produce to meet the immediate cash requirements.
Marketed surplus<marketable surplus: farmers retains more than his
requirements. Large farmers with an anticipation of a price hike.
Marketed surplus=marketable surplus: retains neither more or less than his
requirements. This holds for perishable commodities and for average farmers.

Factors affecting marketable surplus

Intensity of cultivation
Consumption habits
Size of the farm
Nature of crops grown
Size of the family
Non-farm income
Storage capacity.