AEC 301

AGRICULTURAL
MARKETING ,T
RADE AND
PRICES (2+1)
 UNITS

• Agricultural Marketing – Nature and Scope

• Marketing Functions, Pricing and Promotion strategies
• Marketing Efficiency and Marketing Institutions
• Trade in Agricultural Products
• Agricultural Prices and Risk Analysis
LECTURE 1

• Agricultural Marketing
• Concepts and definitions -market,
marketing,
 Market

General Economics
• Derived from latin word-marcatus- Refers to a commodity-Turmeric
trade/place where business is conducted market.
• Place where exchange of goods takes It includes Buyers and sellers
place
• Buyers and sellers –free interaction

• . A market is the sphere within
which price determining forces
operate.
• A market is area within which the
forces of demand and supply
converge to establish a single price.
Definitions of market
Market means a social institution
which performs activities and
provides facilities for exchanging
commodities between buyers and
sellers. Eg-Regulated market
 MARKETING

• Marketing is the economic process by which goods

and services are exchanged between the producers
and the consumers and their values determined in
terms of money prices.
 Components of a market

• The existence of a good or commodity for transactions (Physical existence

is, however, not necessary).

• The existence of buyers and sellers.

• Business relationship or intercourse between buyers and sellers

• Demarcation of area such as place, region, country or the whole world.

 DIMENSIONS OF MARKET

1. Location 7. Degree of competition

2. Area or coverage 8. Nature of commodities
3. Time 9. Stage of marketing
4. Volume of transactions 10. Extent of public intervention
5. Nature of transactions 11. Type of population served
6. Number of commodities 12. Accrual of marketing margins
 Agricultural marketing

• Agricultural marketing is the study of all the activities,

agencies and policies involved in the procurement of farm
inputs by the farmer
• and the movement of agricultural products from the farmer
to the consumers.
 Scope and Importance of Agricultural Marketing

Optimization of resource use and output management

• Efficient marketing system-decrease the losses due to inefficient
storage,processing,transportation.
• Product taken to the market from farm----Increased
• Efficient marketing-make availability of farm modern inputs –
sustain faster rate of growth in agriculture

Increase in farm income

Efficient marketing-fetch better prices-increase income of the
farmer
Surplus-invested –purchasing modern inputs-Productivity-increased
 IMPORTANCE

Widening of markets
A well-known marketing system widens market for
products by taking them to remote corners of the
country to areas far away from the production point
Growth of agro-based industries
Agrl.marketing---helps growth of agro based
industries-sugar industry,cotton,silk .
Price signals
Better price-production at correct time-meet the
need/demand of the country
• Adoption and spread of new technology
• Employment-
Transportation, Processing, packaging, grading
Addition to National income
• Better living
• Creation of Utility
 Utility creation

• Form Utility

• Place Utility

• Time Utility

• Possession Utility
THANK U