AECO-341 ,3(2+1)

AGRICULTURAL MARKETING,TRADE AND

PRICES
 LECTURE-1
 Market
 Latin word MARCATUS-mean MERCHANDISE or TRADE
 Market means a social institution
 Economically market is not a place bbut a commodity or
commodities where exchange takes place

 Marketing
 Components of market
 Goods, seller ,buyer, demarcation of area ,the existence of
perfect competition.
 Any individual market can be classified into a 12-
dimensional space.
 Market structure

 Structure refers to something that has organization and

dimension and which is evolved for the purpose of
performing function.
 Function modifies structure –existing structure limits the
performance of function.
 Market structure refers the organizational characteristics
of a market-that influence 1)nature of
 competition,2)pricing ,3)conduct of business firms,
4)traders behavior and their performances.
 Knowledge of the market structure is essential for
identifying the imperfection of a market.
 The structural characteristics of the market govern the
behavior of the firms
 Therefore, thw market struvture should keep on adjusting
to changing environment

 Market conduct
 Market performance

LECTURE-2
 AGRICULTURAL MARKETING :
 It compromises
 1) all operations,
 2)the agencies conducting them.
 It is the study of
 All activities (raw material supply, assessment of
demand, policy relating to marketing of farm products
and inputs),
 Agencies and policies involved in procurement of farm
inputs and the movement of the agricultural products.
 It is the system link between farm and non farm sectors.
 According to National Commission of Agriculture (12th
report) —
  It is a process which starts with decision to produce a
sealable farm commodity.
 Involves all aspects of market structure both functional
and institutional.
 Subject of agricultural marketing includes
 Marketing functions
 agencies
 channels
 efficiency
 costs
 price spread
 market integration
 producer’s surplus
 government policies
 research
 training
 statistics on agricultural marketing.
 Agricultural marketing should
 Optimization of resources and output management
 Increase farmer’s income
 Widening the market to every corner
 Growth of agro-based industries
 Price signals – efficient marketing system
 Adoption and spread of new technology
 Employment
 Add value to national income(GNP+NNP)
 Better living
  Creation of utility (big answer)
 Difference in marketing of agricultural product to
manufactured goods :
 Demand and supply makes the agricultural sector special as
it is always in changing that is why it is treated as a
separate discipline. And few other characteristics which
make difference are:
1. Perishability of the product
2. Seasonality of production
3. Bulkiness of products
4. Variation in quality of products
5. Irregular supply of agricultural products
6. Small size of holding and scattered production
7. processing

LECTURE-3
Classification of markets

LECTURE-4
MARKETING MIX
According to Philip kotler,
 “It is mix of controllable marketing variables that the
firm uses to pursue the sought levels in the target”
 Combination of 4p’s (core of marketing system)
 Product mix
 Price mix
 Promotion mix
 Distribution mix