The term agricultural marketing is composed of two words- agriculture and marketing. Agriculture, generally means growing and/or raising of crops and livestock while marketing encompasses a series of activities involved in moving the goods from the point of production to point of consumption. Agricultural marketing essentially involves the buying and selling of agricultural produce.
According to the Indian Council of Agricultural Research, Agricultural marketing involves three important functions:
- Assembling or concentration of goods.
- Preparation for consumption (processing).
- Distribution of agricultural products.
According to the National Commission on Agriculture, Agricultural marketing is a process which starts with a decision to produce a saleable farm commodity, and it involves all aspects of market structure or system, both functional and institutional, based on technical and economic considerations and includes pre-harvest and post-harvest operations of –
- Assembling,
- Grading,
- Storage,
- Transportation, and
- Distribution.
Agricultural marketing plays an important role not only in stimulating production and consumption, but also in accelerating the pace of economic development. Its dynamic functions are of primary importance in promoting economic development. For this reason, it has been described as the most important multiplier of agricultural development.
An efficient marketing system is essential to maintain and accelerate the pace of increasing production through technological development, but for success in this programme, the farmers must receive remunerative prices for their produce. Otherwise, they would not be interested in increasing their production.
