Agricultural marketing possess several features such as perishable products, regular demand, price fluctuation, inelastic demand, presence of intermediaries etc.
The features of agricultural marketing can be discussed as follows:
The features of agricultural marketing can be discussed as follows:
1. Perishable Products
Agricultural products are dealt with in agricultural market. Most of the agricultural products are of perishable nature. Fruits, green vegetables, fish, meat, milk, other dairy products etc. perish within shorter time. But some other remain fresh for a little longer. So, proper management of storage, distribution and transportation should be made according to the nature of products.
2. Continuous Demand
Continuous demand is another important of agricultural marketing. Most of agricultural goods are produced in certain seasons. But they are necessary for consumption round the year. So, warehouse management should be made effective for regular supply of such goods.
3. Fluctuation In Price
Since balance cannot be maintained in demand and supply of agricultural products, price remains fluctuating in agricultural markets. Supply rises high and price falls low in harvesting time. Bu in off-season, supply falls low then prices rise high.
4. Presence Of Intermediaries
4. Presence Of Intermediaries
Producer's predominance prevails over industrial products but intermediaries' predominance prevails over agricultural products. Intermediaries buy agricultural products at low price directly from the farmers at the time of harvest. They keep the collected products in warehouse and sell them at high prices. So they take responsibility of market management. They perform all the functions of marketing such as collecting, standardizing, pricing, storing of agricultural product. So, farmers cannot get reasonable price for their products.
5. Inelastic Demand
Agricultural products are of compulsory for daily life. Any change in their price does not affect much. An increase or decrease in prices does not affect demand for agricultural products. So, demand remains inelastic in agricultural market.
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6. Elastic Supply
Supply of agricultural products remains elastic, even if demand remains inelastic. Supply is affected by the change of price of agricultural products. If price of agricultural products rises, then supply also increases together. If price decreases, supply also decreases.
In this way, buying and selling of perishable goods, continuous demand, fluctuation in prices, presence of intermediaries, elastic supply etc. are the important features of agricultural marketing.
