Defects of Agricultural Marketing in India
Agricultural marketing in India faces several challenges and defects, which hamper the growth of the agricultural sector and the well-being of farmers. Some of the significant defects of agricultural marketing in India are as follows:
1. Lack of Infrastructure: Inadequate storage facilities, transportation, and communication networks are some of the major issues that plague the agricultural marketing system in India. Due to the lack of proper storage facilities, farmers are often forced to sell their produce immediately after harvest, which results in lower prices. Poor transportation infrastructure also leads to the wastage of agricultural produce, as perishable commodities like fruits and vegetables cannot be transported to distant markets in time.
2. Fragmented Market: The agricultural market in India is highly fragmented, with multiple intermediaries involved in the value chain. As a result, farmers are not able to get a fair price for their produce, as middlemen take a significant share of the profit margin. Moreover, due to the lack of a transparent pricing mechanism, farmers are often unaware of the prevailing market prices.
3. Lack of Market Intelligence: The lack of accurate and timely market information is a significant hurdle for farmers in India. Farmers are not aware of the demand and supply situation, prevailing market prices, and quality standards required by buyers. This lack of information leads to inefficiencies in the market and results in price volatility.
4. Inadequate Institutional Support: The absence of institutional support, such as credit facilities, market linkages, and extension services, is another significant defect of the agricultural marketing system in India. Small and marginal farmers often do not have access to credit facilities, which makes it difficult for them to invest in their farms and improve their production.
5. Lack of Grading: The farmers in India do not give much importance to grading their produce. They hesitate while separating good quality crops from bad crops because of which they fail to fetch a good price of their quality crop.