Historically, Indian agriculture was mostly in the nature of
subsistence farming right up to the beginning of the both century. The
farmer used to sell only a small part of his produce to pay off rent and
debts, and also to meet his other requirements. Such sale was usually
done immediately after the harvesting of the crops, because, at that time,
there was no storing facilities. The poor and illiterate farmers used to
take his small surplus to the market where he was confronted with
powerful and organised traders who used to exploit and cheat him in a
variety of ways. Thus, agricultural marketing remained very
unsatisfactory up to the middle of both century, although the
development of sugar, textile, and jute industry had given new inputs to
cash crops, and department of a marketing system for sugar, cotton, and
jute had been evolved.
The following factors have led to the growth of marketing in the
field of agriculture.
Specialisation
The tendency towards increasing specialization by persons in
certain jobs has resulted in an increase in their efficiency and the
breakdown in the self-sufficiency of the family unit. Specialization, thus,
has resulted in increased production, which is the base for the growth of
marketing, and, in turn, of the economy.
Urbanisation
Urban people are the main buyers of agricultural surpluses. The
growing population of urban India and the faster transition from rural
India to urban India has necessitated a faster growth of agricultural
marketing.
Transportation and communication
The increasing transportation and communication facilities have
widened the market for farm products. The length and breadth of the
market to which a product is taken from the production areas have
increased. In the absence of these facilities, the movement of produce
from one area to another was limited, and the consumption of a product
was restricted only to the areas of production or, at the most, to nearby
areas.
Technological change in agriculture
Technological developments in agriculture, such as the evolution of
high-yielding varieties of seeds, increased use of modern inputs and
cultivation practices in the agricultural sector, have resulted in
substantial increase in farm production. The marketed surplus of the
agricultural produce has therefore increased. Production-conscious
farmers have also become income conscious. This has resulted in the
growth of the marketing system.
The importance of an efficient marketing system as a vital link
between the farmers and the consumers was recognized way back in
1928 by the royal commission on agriculture. Since then, a good deal of
progress has been made in organizing agricultural marketing by the
adoption of the various administrative and legislative measures by the
government from time to time. the establishment of the Directorate of
marketing and inspection in 1935, the enactment of the Act for the
grading and standardization of agricultural commodities, the conduct of
commodity market surveys, and the establishment of regulated markets
in the country- these are some of the measures which have been taken
up to improve the marketing situation and to make agricultural
marketing as efficient as possible.
During the first and second five year plans, agricultural marketing
did not receive importance. Whatever development that took place in the
sphere of marketing was due to the gradual progress towards the
commercialization of agriculture, as a result of its own dynamic nature,
and not because of any specific government efforts.
The National Commission on Agriculture remarked “There is an
increasing awareness that it is not enough to produce a crop or animal
product, it must be marketed well. Increased production, resulting in a
greater percentage increase in the marketable surplus accompanies by
the increase demand from urban population, calls for a rapid
improvement in the existing marketing system”. This statement
emphasized the increasing importance of marketing of agricultural
commodities and the need for the adoption of measures to increase
production.
subsistence farming right up to the beginning of the both century. The
farmer used to sell only a small part of his produce to pay off rent and
debts, and also to meet his other requirements. Such sale was usually
done immediately after the harvesting of the crops, because, at that time,
there was no storing facilities. The poor and illiterate farmers used to
take his small surplus to the market where he was confronted with
powerful and organised traders who used to exploit and cheat him in a
variety of ways. Thus, agricultural marketing remained very
unsatisfactory up to the middle of both century, although the
development of sugar, textile, and jute industry had given new inputs to
cash crops, and department of a marketing system for sugar, cotton, and
jute had been evolved.
The following factors have led to the growth of marketing in the
field of agriculture.
Specialisation
The tendency towards increasing specialization by persons in
certain jobs has resulted in an increase in their efficiency and the
breakdown in the self-sufficiency of the family unit. Specialization, thus,
has resulted in increased production, which is the base for the growth of
marketing, and, in turn, of the economy.
Urbanisation
Urban people are the main buyers of agricultural surpluses. The
growing population of urban India and the faster transition from rural
India to urban India has necessitated a faster growth of agricultural
marketing.
Transportation and communication
The increasing transportation and communication facilities have
widened the market for farm products. The length and breadth of the
market to which a product is taken from the production areas have
increased. In the absence of these facilities, the movement of produce
from one area to another was limited, and the consumption of a product
was restricted only to the areas of production or, at the most, to nearby
areas.
Technological change in agriculture
Technological developments in agriculture, such as the evolution of
high-yielding varieties of seeds, increased use of modern inputs and
cultivation practices in the agricultural sector, have resulted in
substantial increase in farm production. The marketed surplus of the
agricultural produce has therefore increased. Production-conscious
farmers have also become income conscious. This has resulted in the
growth of the marketing system.
The importance of an efficient marketing system as a vital link
between the farmers and the consumers was recognized way back in
1928 by the royal commission on agriculture. Since then, a good deal of
progress has been made in organizing agricultural marketing by the
adoption of the various administrative and legislative measures by the
government from time to time. the establishment of the Directorate of
marketing and inspection in 1935, the enactment of the Act for the
grading and standardization of agricultural commodities, the conduct of
commodity market surveys, and the establishment of regulated markets
in the country- these are some of the measures which have been taken
up to improve the marketing situation and to make agricultural
marketing as efficient as possible.
During the first and second five year plans, agricultural marketing
did not receive importance. Whatever development that took place in the
sphere of marketing was due to the gradual progress towards the
commercialization of agriculture, as a result of its own dynamic nature,
and not because of any specific government efforts.
The National Commission on Agriculture remarked “There is an
increasing awareness that it is not enough to produce a crop or animal
product, it must be marketed well. Increased production, resulting in a
greater percentage increase in the marketable surplus accompanies by
the increase demand from urban population, calls for a rapid
improvement in the existing marketing system”. This statement
emphasized the increasing importance of marketing of agricultural
commodities and the need for the adoption of measures to increase
production.
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