1.

Marketable surplus refers to the difference between the total output produced by a farmer and his
on-farm consumption. In other words, it is that portion of the total output that the farmer sells in the
market.

Marketable surplus = Total farm output produced by farmer – Own consumption of farm output.

Marketed surplus:-

The flow of marketed surplus of foodgrains is generally recognised as one of the most important limiting
factors in the process of economic development which involves the transfer of surplus rural labour to
non-agri-cultural investment project

2. Concept of Marketing Efficiency:

The concept of marketing efficiency is so broad and dynamic that no single definition at present
encompasses all of its theoretical and practical implications.

Fred Waugh remarked that “an unsophisticated student might make two false assumptions, first, that is
it easy to define and to measure the efficiency of agricultural marketing and, second, that almost
everyone is in favour of efficiency.” Wells, confessing that he did not know precisely how to measure
marketing efficiency, added “and I doubt whether our so-called efficiency experts know how.”

“marketing efficiency is the maximization of input-output ratio.”

The inputs of marketing are the various resources of land, labour, capital and management which are
employed in performing the various marketing services. The output or marketing refer to the
satisfactions derived from the consumption of those goods and services.

The difficulties of employing an input-output ratio definition as a quantitative measure of marketing

efficiency are obvious because of the intangible nature of marketing outputs. Most inputs of marketing
are quantifiable in monetary units.

A corresponding conversions of outputs is difficult and impracticable due to lack of constancy in the
value of money and the subjectively of utility functions. By its nature its definition requires a standard of
comparison, the choice of which is a critical factor indeed.
Another fairly similar approach to the measurement of marketing efficiency has been put forth by
shepherd in the following formula:

Marketing efficiency = total cost / total products markets × 100

Apart from its ambiguity in the absence of some standard of comparison, the formula apparently
suggests that any increase in the marketing cost or any decreases in the value of products would result
in inefficiency.

Types of Marketing Efficiency:

Marketing efficiency is usually segmented into two form, ‘technical efficiency’ and ‘economic efficiency’.
As these concepts are frequently confused, it seems necessary to clarify the difference between them.
Technical efficiency concerns the effectiveness or competent with which the physical aspects of
marketing are performed. Economic efficiency requires the realization of maximum output in money
terms or of a given output with minimum resources.

3. Importance of agricultural marketing

Agricultural marketing is a specific part of marketing. It is related to agricultural products only. It is the
base of most of the economic activities of a country. It brings marketable surplus to the market for sale.
Farmers will keep a portion of their produce for self-consumption and cattle and the remaining portions
are left for sale. Higher level of marketable surplus leads to greater economic development. The
importance of agricultural marketing is as follows:

Provides raw materials for industries.

Provides foodgrains for the entire population and fodder for cattle.

Provides a base for expansion of internal market of a country.

Helps in the expansion of international market also when marketable surplus found in excess of the
demand of a country, fetches a considerable amount of foreign exchange.
At present, most of the farmers sell their produce through village level markets, fairs, mandies; co-
operative societies and government also purchases agricultural produce direct from farmers.