The problems of agricultural marketing are as follows:
1. Lack Of Organized Market
Majority of farmers live in villages. Organized markets have not developed in villages to sell their products. So, there are no markets to supply neither agricultural products to the customers, not agricultural inputs to the farmers in rural areas. So, agricultural market has remained unorganized.
2. Predominance Of Intermediaries
Agricultural market is totally controlled by intermediaries. They have predominance in determining prices, buying and selling of agricultural product. So, neither the farmers can get reasonable prices of their products, nor the customers can get the products at cheap prices. Intermediaries buy agro-products at cheap prices from farmers and sell to consumers at high prices. So, agricultural market has been seriously affected by exploitation of intermediaries.
3. Lack Of Standardization And Grading
Farmers produce various kinds of goods. But they are not standardized and graded according to their quality. Rather there is malpractice of adulteration of standard and inferior quality goods. Bad quality products are mixed with good quality and sold at high price.
4. Lack Of Warehousing
There is no proper warehousing facility for storing agricultural products. The farmers have the compulsion to sell their products at cheap price on the one hand, the quality of goods declines and quantity decreases due to the leakage on the other. Similarly, as there is no adequate facility of transportation, farmers cannot get reasonable prices of their products.
5. Lack Of Transportation Facility
There is no transportation facility in every part of the countries. If there is transportation facility, agricultural market can get expanded. Due to the lack of transport facility, it becomes impossible. Although the importance of agricultural market is paramount in every village, there is lack of transport facility.
6. Lack Of Marketing Skill
Because of the lack of proper education, the small farmers and businessmen have no marketing skill. Small farmers, businessmen are not skilled in determining price, storing, packaging and grading the agricultural products. AS a result, they have not got benefits from agricultural occupation.
There are many peasants organizations affiliated to one or the other political organization. But they are not concerned with the farmers' occupational interest. There is lack of peasants' organization which would focus its attention on occupational interest of peasants.So, real farmers are always exploited.
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8. Lack Of Market Information
There is lack of institutional body to give information to the farmers about the production situation, price, demand and changes in price, market situation etc. of the agricultural products. Farmers are exploited or cheated by local landlord, moneylenders and agro-businessmen due to their wrong information.
9. Lack Of Minimum Price Fixation System
There is lack of minimum price fixation system of the agricultural products. As a result, farmers have to suffer exploitation.
In this way, absence of organized market, predominance of intermediaries, lack of standardization and grading, lack of warehouse and transportation facility, absence of effective peasants' organization, lack of market information, lack of minimum price fixation system etc. are the problems of agricultural marketing.
