Agriculture Economics

Agriculture Marketing: “Marketing is a complete system of joint operation of business activities. The purpose behind it is to settle the issue of price determination, sale of goods and provision of goods to final domestic consumers and industrial consumers etc.”

What is a market? Who are the participants in the market?

Difference between “Mandi” and agri. Market??

Participants/players in agriculture markets: Commission agents Kacha Arthiyas Pakka Arthiyas Broker (Dalal) Weighman (Tola) Other laborers (Puladar – unloads, Chungar – unloads and weighs both, Rola – places the produce in weight machines, Boreeta – holds sacks/bags)

Importance of Agri. Marketing: Surplus produce needs to be sold out More participants ensures efficient resource allocation Storage and information saves farmers from exploitation Financing facilities can help out rise in productivity Better incomes couples with commercialization in other sectors of the economy

Types of Agri Markets: Primary markets Secondary markets Terminal markets

Mixed and Diversified Farming: First step to commercialized farming Cash crops like vegetables, fruits, tea, coffee, cotton etc are grown apart from staple food agri. Labor are busy round the year Introductino of new techniques and technology Innovation and risk taking attitutdes

Modern Commercialized farming: Prevalent in advance industrial nations Profit is the motive of the farmers Farmers acquainted with scientific inventions, harvesters, modern fertilizers, cropping techniques, marketing trends etc Economies of scale at play Single crop is produced Capital-intensive technology is used MNCs start to take part in agriculture to reap profits

Strategies for agriculture and rural development: Improving small scale agriculture Institutional and pricing policies Research and development Micro finance schemes aimed at agri businesses Specialized training Knowledge exchange between advanced and subsistence economies

Role of Agriculture sector in economic development: Availability of food Increase in demand for industrial products Foreign exchange earnings Mobilization of capital Employment opportunities Higher standard of living of the rural class