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Management
Section II- Agricultural Input
Planning
Ullas P Ramakrishnan
Agricultural Marketing
Defn: AM consists of functions & services used in moving
commodities from producer to the final consumer
Defn: AM as a process starts with a decision 2 produce a
saleable farm commodity. It involves all aspects of market
strucure or system, both functional & institutional, based on
economic considerations and includes pre & post harvest
operations, assembling, grading, storage, transportation &
distribution- National Commission for Agriculture
Marketable Surplus: Surplus that is available 4 sale after
meeting (i) family needs, (ii) seed requirements, (iii) kind
wages (crop instead of money given as wages 2 employees, (iv)
gifts to friends & relatives
Marketable Surplus for
Foodgrains (45-50%)
Cash Crops (80-100%)
Fruits & Vegetables (>90%)
Base
Agricultural
Goods
Manufactured Goods
Perishable
Yes
No
Seasonal
Yes
No
Variations in quality
Natural
By design
Processing
Needed
Finished
Size
Bulk
Varying quantities
Nature of Demand
From marketers point of view, agricultural inputs show a
mix of consumer & industrial products characteristics
Consumption; Farmers do not consume like consumer
pts, but demand comes from demand for agricultural
production. So it is derived demand. Therefore
characteristic of an industrial pdt
Distribution & Promotion: is like consumer pdts as
these are targeted towards customers.
Product & Price: also like industrial pdt as it has derived
demand, complementary to other inputs, also bulky &
high cost.
Weather in a season
Cropping pattern changes
Nature and health of the crop
Other facilities like govt price policy,
subsidies, loans and physical facility for
the product.
Promotion
Retailers: as most farmers are illeterate,
they play a very important role for agri
input company sales
Also kisan mela, fairs, haats etc
Challenges
There is a mismatch between the seed multiplication
ratio from breeder seed to foundation seed and from
foundation seed to certified seed, which needs to be
addressed.
The unorganized sector comprising a source mainly of
farm-saved seeds accounts for nearly 80 percent of this
seed supply. This requires attention.
Comprehensive and authentic databases on seed
production and trade in India by public and private
sectors as required under the seed and plant variety
laws need to be built up.
The seed chain and the norms for quality control should
be followed without any compromises or shortcuts.
Challenges
For horticulture crops which have a long gestation period
, it is imperative to ensure that only such varieties are
imported that are suited to Indian conditions .
A number of transgenics particularly in cotton and
vegetable crops, are sought to be introduced into the
country. The potential loss of production on account of
non introduction of transgenics has to be carefully
balanced against the dangers that transgenics may pose
to ecology. However if a crop is safe for environmental
release and beneficial to the farmers, such transgenics
may need to be taken up in order to ensure that food
security in the country is achieved and maintained.