Importance of Marketing in Agriculture sector

Marketing is the key of economic development in rural areas. It is an essential component in income and employment generation in farm and non-farm sectors. Since marketing is one of the pre-requisites for income generation, this article attempts to throw some light both on marketing of rural produce to other areas and improving marketing environment within the rural areas.

Brief Introduction

Rural marketing incorporates the marketing of agricultural products, rural industries products and services of many kind. The trade channels for different types of commodities available in rural areas areas private, cooperatives, processors, regulated markets and state agencies. In no sense, a social cluster or village economy as at whole can, be developed without effective and efficient rural marketing. Very little attention has been paid in the planning era towards the development of rural marketing. In fact marketing is a dynamic state of affairs and is part and parcel of the whole economy. Thus production and marketing are the two facets of a coin. Rural marketing constitutes the nerve centre of rural development activities.

Rural marketing is a two way marketing process. The content now encompasses not only marketing of products which flow to rural areas, but also products which flow to urban areas from rural areas. So a broad definition of rural marketing is concerned with the flow of goods and services from urban to rural arid vice-versa. In addition, it also include the marketing in the rural areas.

As the rural marketing is a two-way process, this article attempts to highlight both the aspects. It examines the marketing aspects of rural produce with special reference to agriculture while on, the other hand it covers and suggests .strategies for promoting marketing within the rural areas.

 Marketing of Rural Products

The rapid economic growth of-any developing country is mainly governed by three factors: increasing food production and other major inputs of industry; increasing the income levels of middle and lower strata of the population and most importantly provision of basic infrastructure and planning a national marketing system and there by increasing the size of the national market is also essential to integrate the marketing systems with the needs and wants of the consumer with available resources. This is the hallmark of economic development.

As India's major population lives in rural areas and agriculture being their main livelihood, major emphasis has been given to agriculture sector. 1n most of the developing countries development strategies are mostly in and around urban areas while technical advancement and improvement in the agricultural sector is receiving less attention. In order to promote the marketing, increase of the productivity of the farm is imperative. Apart from that, innovations in marketing of agricultural products is essential. On the other hand, promoting strategies for marketing of the manufactured goods in the rural areas requires equal attention. This article mainly discusses these objectives.

How to increase  agricultural productivity

Regarding the increase of agricultural productivity, farmers should have an easy access to production inputs, the financial system, the market and agricultural knowledge then only they can improve agricultural productivity. Most of the farmers suffer from loss due to inadequate marketing facilities like non-availability of the inputs, lack of basic infrastructural facilities and price fluctuations etc besides lacking in fundamental knowledge about advancements in the field of agriculture.

A case study done on this aspect clearly indicates that very little proportion of the seeds is being purchased from the outside agencies. The reasons found were as follows.

• Lack of knowledge about the seeds ie. hybrids, high yielding which are better than the one they are producing.
•  Quality standards of the seeds procured from outside agencies are sometimes very low and variable to such an extent that the farmers cannot venture to purchase the seeds from outside.
•  Organizational shortcomings between extension and research agencies. The varieties suitable for the region are not popular among the farmers due to improper dissemination.
•  Above all, the variation and fluctuations of the procurement prices of the seeds discourage the farmers to go for it.
• And due to all these reasons, the yield of the crops is affected. The irregularities in the input supply system are affecting the productivity while lack of sufficient other basic infrastructural facilities like transport, storage, distribution, lack of market information etc. are found be the major bottle- necks in the marketing system.

  Disposal of surplus production

The expansion of production should always be aided by efficient marketing and distribution of surplus produce to the final consumer. The coordination between productive and marketing systems is a pre-condition for a stable progress. It is known fact that technological advancements led to a significant increase in wheat production in Punjab and Haryana but the farmers were stuck in disposing of the surplus due to inadequate transport and storage facilities. This illustrates that the emergence of large domestic production, if unattended by commensurate facilities in terms of credit, storage and transport facilities will increase the load of unsold price and depress the prices.

So, the modern marketing system should advocate the technological improvements in handling and storage of the produce. If we consider peas production in Uttar Pradesh improved preservation and packaging practice enabled the farmers to go for pea cultivation and also they are assured of a guaranteed and stable prices. The marketing facilities has really motivated the farmers. Likewise is the case in sugarcane also. But this technological changes should be carried out more efficiently by the extension personnel with regard to other crops also.

 Requirement of Facilities

Besides, ensuring efficient coordination between production, transportation, communication and storage facilities, we have to realize the significance of credit financing and the value of market information for decision making.

The present government has given a ray of hope as they have allocated considerable share in this budget for the agricultural sector. NABARD has a crucial role to play in the agricultural financing sector. Another important aspect in the rural marketing is market information. Information regarding production, market arrivals, day to day prices, changes in 1he stock with prices are essential for the farmers in order to equip themselves to withstand the prevailing situation.