Importance of Agricultural Marketing


The agricultural marketing system includes two major sub-systems within it viz product marketing and input (factor) marketing. The product marketing sub-system is inclusive of farmers, village traders, processors, wholesalers, importers, exporters, retailers, marketing cooperatives, and regulated marketed committees. Whereas, the input marketing sub-system includes input manufacturers, distributors, importers, exporters, related associations, and others who make distinct farm production inputs available to farmers.

Importance of Agricultural Marketing

Agricultural marketing plays a key role not only in the stimulation of production and consumption but also in the acceleration of economic growth. It is the most important multiplier of agricultural development. The importance of agricultural marketing is well-discussed in the points below: 

Optimization of Resource use and Output management

An efficient system of agricultural marketing results in the optimization of resource use and output management. It also leads to an increase in marketable surplus via scaling down the losses arising out of inefficient processing, transportation, and storage. A well-designed marketing system can distribute the available stock of modern inputs efficiently, and thereby sustain a faster growth rate in the agricultural sector.

Raises farm income

It guarantees a high level of income for farmers by reducing the number of middlemen or by restricting the cost of marketing services and malpractices, in the marketing of farm products. An efficient marketing system ensures better prices to farmers for farm products and induces them to do investment in their surpluses in the purchase of modern inputs so that both production and productivity can be increased. This again leads to a rise in marketed surplus and income of farmers.

Importance of Agricultural Marketing

Grows Agro-based industries

The right system of agricultural marketing assists in the growth of agro-based industries that stimulates the overall development process of the economy. Many industries such as cotton, edible oils, sugar, juice, and food processing depend heavily on agriculture for the supply of raw materials.

Widens Market

It widens the market for products by taking them to remote corners both within and outside the nation, i.e., to areas that are far away from the production points. Widening of the market assists in increasing demand on a regular basis, and this guarantees a higher income to the producer. 

Creation of Employment

Agricultural marketing offers employment opportunities to millions of people engaged in distinct activities such as packaging, transportation, processing, and storage. Persons like brokers, traders, packagers, retailers, commission agents, weighmen, and regulating staff are directly employed in the marketing system. Apart from this, many others also find employment opportunities in supplying goods and services as needed by the marketing system.

Adoption and spread of new technology

It enables farmers to easy adoption of new scientific and technical knowledge. A new technology needs higher investment and farmers would do investment only if they are assured regarding the market clearance at a remunerative price.