Lecture Notes: Agricultural Marketing Market: Meaning
Lecture Notes: Agricultural Marketing Market: Meaning
Lecture Notes: Agricultural Marketing Market: Meaning
Market: Meaning:
The word market comes from the latin word „marcatus which means merchandise
or trade or a place where business is conducted. Word „market has been widely and
variedly used to mean (a) a place or a building where commodities are bought and sold,
e.g., super market; (b) potential buyers and sellers of a product, e.g., wheat market and
cotton market; Some of the definitions of market are given as follows:
Components of a Market:
For a market to exist, certain conditions must be satisfied. These conditions should
be both necessary and sufficient. They may also be termed as the components of a
market.
1. The existence of a good or commodity for transactions(physical existence is, however,
not necessary)
2. The existence of buyers and sellers;
3. Business relationship or intercourse between buyers and sellers; and
4. Demarcation of area such as place, region, country or the whole world. The existence of
perfect competition or a uniform price is not necessary.
Dimensions of a Market:
There are various dimensions of any specified market. These dimensions are:
1. Location
2. Area or coverage
3. Time span
4. Volume of transactions
5. Nature of transactions
6. Number of commodities
7. Degree of competition
8. Nature of commodities
9. Stage of marketing
10. Extent of public intervention
11. Type of population served
12. Accrual of marketing margins
Market structure
Meaning:
The term structure refers to something that has organization and dimension –
shape, size and design; and which is evolved for the purpose of performing a function. A
function modifies the structure, and the nature of the existing structure limits the
performance of functions. By the term market structure we refer to the size and design of
the market.
1. Market structure refers to those organizational characteristics of a market which
influence the nature of competition and pricing, and affect the conduct of business firms;
2. Market structure refers to those characteristics of the market which affect the traders
behaviour and their performances;
3. Market structure is the formal organization of the functional activity of a marketing
institution.
An understanding and knowledge of the market structure is essential for identifying the
imperfections in the performance of a market.
Agricultural Marketing:
Concept and Definition:
The term agricultural marketing is composed of two words-agriculture and
marketing. Agriculture, in the broadest sense, means activities aimed at the use of natural
resources for human welfare, i.e., it includes all the primary activities of production. But,
generally, it is used to mean growing and/or raising crops and livestock. Marketing
connotes a series of activities involved in moving the goods from the point of production to
the point of consumption. It includes all the activities involved in the creation of time, place,
form and possession utility. According to Thomsen, the study of agricultural marketing,
comprises all the operations, and the agencies conducting them, involved in the
movement of farm-produced foods, raw materials and their derivatives.
2. Seasonality of Production:
Farm products are produced in a particular season; they cannot be produced
throughout the year. In the harvest season, prices fall. But the supply of manufactured
products can be adjusted or made uniform throughout the year. Their prices therefore
remain almost the same throughout the year.
3. Bulkiness of Products:
The characteristic of bulkiness of most farm products makes their transportation and
storage difficult and expensive. This fact also restricts the location of production to
somewhere near the place of consumption or processing. The price spread in bulky
products is higher because of the higher costs of transportation and storage.
7. Processing:
Most of the farm products have to be processed before their consumption by the
ultimate consumers. This processing function increases the price spread of agricultural
commodities.
Agricultural marketing plays an important role not only in stimulating production and
consumption, but in accelerating the pace of economic development. Its dynamic functions
are of primary importance in promoting economic development.
Optimization of Resource use and Output Management:
An efficient marketing system ensures higher levels of income for the farmers by
reducing the number of middlemen or by restricting the commission on marketing services
and the malpractices adopted by them in the marketing of farm products. An efficient
system guarantees the farmers better prices for farm products and induces them to invest
their surpluses in the purchase of modern inputs so that productivity and production may
increase.
Widening of Markets:
A well-knit marketing system widens the market for the products by taking them to
remote corners both within and outside the country, i.e., to areas far away from the
production points. The widening of the market helps in increasing the demand on a
continuous basis, and thereby guarantees a higher income to the producer.
Price Signals:
An efficient marketing system helps the farmers in planning their production in
accordance with the needs of the economy.
Employment:
Creation of Utility:
Marketing adds cost to the product; but, at the same time, it adds utilities to the
product. The following four types of utilities of the product are created by marketing:
(a) Form Utility: The processing function adds form utility to the product by
changing the raw material into a finished form. With this change, the product becomes
more useful than it is in the form in which it is produced by the farmer.
(b) Place Utility: The transportation function adds place utility to products by
shifting them to a place of need from the place of plenty. Products command higher prices
at the place of need than at the place of production because of the increased utility of the
product.
(c) Time Utility: The storage function adds time utility to the products by making
them available at the time when they are needed.
(d) Possession Utility: The marketing function of buying and selling helps in the
transfer of ownership from one person to another. Products are transferred through
marketing to persons having a higher utility from persons having a low utility.
Classification of Markets:
Markets may be classified on the basis of each of the twelve dimensions mentioned
below.
1. On the basis of Location:
On the basis of the place of location or operation, markets are of the following
types:
a) Village Markets: A market which is located in a small village, where major
transactions take place among the buyers and sellers of a village is called a village
market.
b) Primary wholesale Markets: These markets are located in big towns near the
centers of production of agricultural commodities. In these markets, a major part of the
produce is brought for sale by the producer-farmers themselves.
c) Secondary wholesale Markets: These markets are located generally in district
headquarters or important trade centers or near railway junctions. The major transactions
in commodities take place between the village traders and wholesalers. The bulk of the
arrivals in these markets is from other markets.
d) Terminal Markets: A terminal market is one where the produce is either finally
disposed of to the consumers or processors, or assembled for export. Merchants are well
organized and use modern methods of marketing. Commodity exchanges exist in these
markets, which provide facilities, for
forward trading in specific commodities. Such markets are located either in metropolitan
cities or in sea-ports – in Bombay, Madras, Calcutta and Delhi.
e) Seaboard Markets: Markets which are located near the seashore and are
meant mainly for the import and/or export of goods are known as seaboard markets.
Examples of these markets in India are Bombay, Madras, Calcutta.
Imperfect Markets: The markets in which the conditions of perfect competition are lacking
are characterized as imperfect markets. The following situations, each based on the
degree of imperfection, may be identified:
a) Monopoly Market: Monopoly is a market situation in which there is only one seller of a
commodity. He exercises sole control over the quantity or price of the commodity. In this
market, the price of commodity is generally higher than in other markets. Indian farmers
operate in a monopoly market when purchasing electricity for irrigation. When there is only
one buyer of a product the market is termed as a monopsony market.
b) Duopoly Market: A duopoly market is one which has only two sellers of a commodity.
They may mutually agree to charge a common price which is higher than the hypothetical
price in a common market. The market situation in which there are only two buyers of a
commodity is known as the duopsony market.
c) Oligopoly Market: A market in which there are more than two but still a few sellers of a
commodity is termed as an oligopoly market. A market having a few (more than two)
buyers is known as oligopsony market.
Packaging
Packaging is the first function performed in the marketing of agricultural
commodities. It is required for nearly all farm products at every stage of the marketing
process. The type of the container used in the packing of commodities varies with the type
of the commodity as well as with the stage of marketing. For example, gunny bags are
used for cereals, pulses and oilseeds when they are taken from the farm to the market.
Transportation:
Other things remaining the same, the transportation cost of a commodity depends on the
following factors:
1. Distance
2. Quantity of the Product
3. Mode of Transportation
4. Condition of Road
5. Nature of Products:
a) Perishability (e.g., Vegetables);
b) Bulkinesss (e.g., straw);
c) Fragility (e.g. tomatoes);
d) Inflammability (e.g., Petrol);
e) Requirement of a special type of facility (i.e, for livestock and milk).
Problems
The important problems arising out of the transportation of agricultural commodities are:
Types of Grading
Grading may be done on the basis of fixed standards or variable standards. It is of
three types:
1. Fixed Grading / Mandatory Grading: This means sorting out of goods according to
the size, quality and other characteristics which are of fixed standards. These do not vary
over time and space.
2. Permissive / Variable Grading: The goods are graded under this method according to
standards, which vary over time. In India, grading by this method is not permissible.
3. Centralized / Decentralized Grading: Based on the degree of supervision exercised
by the government agencies on grading of various farm products, the programme can be
categorized into centralized and decentralized grading. Under the centralized grading
system, an authorized packer either sets up his own laboratory manned by qualified
chemists or seeks access to an approved grading laboratory set up for the purpose by the
state authorities / co-operatives / associations / private agencies. Grading in respect of
commodities such as ghee, butter and vegetable oils where elaborate testing facilities are
needed for checking purity and assessing quality has been placed under centralized
grading system. The decentralized grading system is implemented by State Marketing
Authorities under the overall supervision and guidance of the Directorate of Marketing and
Inspection.
Advantages of Grading;
Grading offers the following advantages to different groups of persons:
1. Grading before sale enables farmers to get a higher price for their produce. Grading
also serves as an incentive to producers to market the produce of better quality.
2. Grading facilitates marketing, for the size, color, qualities and other grade designations
of the product are well known to both the parties, and there is no need on the part of the
seller to give any assurance about the quality of the product.
3. Grading widens the market for the product, for buying can take place between the
parties located at distant places on the telephone without any inspection of the quality of
the product.
4. Grading reduces the cost of marketing by minimizing the expenses on the physical
inspection of the produce, minimizing storage loses.
5 Grading minimizing advertisement expenses and eliminating the cost of handling and
weighing at ever stage.
6. Grading makes it possible for the farmer –
a) To get easy finance when commodities are stored;
b) To get the claims settled by the railways and insurance companies;
c) To get storage place for the produce;
d) To get market information;
e) To pool the produce of different farmers;
f To facilitate futures trading in a commodity.
7. Grading helps consumers to get standard quality products at fair prices.
8Grading contributes to market competition and pricing efficiency
STORAGE:
Meaning and Need:
The storage function adds the time utility to products. Agriculture is characterized
by relatively large and irregular seasonal and year – to – year fluctuations in production.
The consumption of most farm products, on the other hand, is relatively stable. These
conflicting behaviours of demand and supply make it necessary that large quantities of
farm produce should be held for a considerable period of time.
The storage of agricultural products is necessary for the following reasons:
1. The storage of goods, therefore, from the time of production to the time of consumption,
ensures a continuous flow of goods in the market;
2. Storage protects the quality of perishable and semi – perishable products from
deterioration;
3. To cope with this demand, production on a continuous basis and storage become
necessary;
4. It helps in the stabilization of prices by adjusting demand and supply;
5. Storage is necessary for some period for the performance of other marketing functions.
6. The storage of some farm commodities is necessary either for their ripening (e.g.
banana, mango, etc.) or for improvement in their quality (e.g., rice, pickles, cheese, , etc.);
7. Storage provides employment and income through price advantages.
Risks in Storage:
The storage of agricultural commodities involves three major types of risks. These are:
1. Quantity Loss
2. Quality Deterioration:
3. Price Risk:
Processing:
Meaning:
The processing activity involves a change in the form of the commodity. Processing
converts the raw material and brings the products nearer to human consumption. It is
concerned with the addition of value to the product by changing its form.
Advantages:
The specific advantages of the processing function are:
1. It changes raw food and other farm products into edible, usable and palatable forms.
The value added by processing to the total value produced at the farm level varies from
product to product.
2. The processing function makes it possible for us to store perishable and semi –
perishable agricultural commodities which otherwise would be wasted and facilitates the
use of the surplus produce of one season in another season or year.
3. The processing activity generates employment..
4. Processing satisfies the needs of consumers at a lower cost.
5. Processing serves as an adjunct to other marketing functions, such as transportation,
storage and merchandising.
6. Processing widens the market. Processed products can be taken to distant and
overseas markets at a lower cost.
Methods:
The following methods of buying and selling of farm products are prevalent in
Indian markets:
(i) Under Cover of a Cloth (Hatha System)
By this method, the prices of the produce are settled by the buyer and the
commission agents of the seller by pressing/twisting the fingers of each other under cover
of a piece of cloth. Code symbols are associated with the twisting of the fingers, and
traders are familiar with these. The negotiations in this manner continue till a final price is
settled. When all the buyers have given their offers, the name and offer price of the
highest bidder is announced to the seller by the commission agent. This method has been
banned by the government because of the possibility of cheating.
a) Market Intelligence: This includes information relating to such facts as the prices that
prevailed in the past and market arrivals over time. These are essentially a record of what
has happened in the past. Market intelligence is therefore, of historical nature.
b) Market News: This term refers to current information about prices, arrivals and changes
in market conditions. This information helps the farmer in taking decisions about when and
where to sell his produce. The availability of market news in time and with speed is of the
utmost value.
Criteria for Good Market Information:
Good market information must meet the following criteria so that it may be of maximum
advantage to the users
a) Comprehensive
b) Accuracy
c) Relevance
d) Confidentiality
e) Trustworthiness
f) Equal and Easy Accessibility
g) Timeliness:
Financing:
The financing function of marketing involves the use of capital to meet the financial
requirements of the agencies engaged in various marketing activities. No business is
possible nowadays without the financial support of other agencies because the owned
funds available with the producers and market middlemen (such as wholesalers, retailers
and processors) are not sufficient.
Market functionaries:
In the marketing of agricultural commodities, the following market
functionaries/marketing agencies are involved:
i) Producers:
Most farmers or producers, perform one or more marketing functions. They sell the
surplus either in the village or in the market. Some farmers, especially the large ones,
assemble the produce of small farmers, transport it to the nearby market, sell it there and
make a profit. This activity helps these farmers to supplement their incomes.
ii) Middlemen
Middlemen are those individuals or business concerns which specialize in performing the
various marketing functions and rendering such services as are involved in the marketing
of goods. The middlemen in foodgrains marketing may, therefore, be classified as follows:
(a) Merchant middlemen: Merchant middlemen are those individuals who take title to
the goods they handle. They buy and sell on their own and gain or lose, depending on the
difference in the sale and purchase prices. Merchant middlemen are of two types:
iii) Wholesalers: Wholesalers are those merchant middlemen who buy and sell food
grains in large quantities. They may buy either directly from farmers or from other
wholesalers. They sell food grains either in the same market or in other markets. They sell
to retailers. The wholesalers perform the following functions in marketing:
(a) Assemble the goods from various localities and areas to meet the demands of buyers,
(b) Sort out goods in different lots according to their quality and prepare them for market,
(c) Equalize the flow of goods by storing them in the peak arrival season and releasing in
the off-season,
(d) Regulate the flow of goods by trading with buyers and sellers in various markets,
(e) Finance farmers so that the latter may meet their requirements of production & inputs,
(f) Assess demand of prospective buyers and processors from time to time,
g) Plan the movement of the goods over space and time.
iv) Retailers: Retailers buy goods from wholesalers and sell them to the consumers in
small quantities. They are producers personal representatives to consumers. Retailers
are the closest to consumers in the marketing channel.
v) Itinerant Traders Itinerant traders are petty merchants who move from village to
village, and directly purchase the produce from the cultivators. They transport it to the
nearby primary or secondary market and sell it there.
vi) Village Merchants: Village merchants have their small establishments in villages.
They purchase the produce of those farmers who have either taken finance from them or
those who are not able to go to the market. Village merchants also supply essential
consumption goods to the farmers. They act as financers of poor farmers. They often visit
nearby markets and keep in touch with the prevailing prices.
(a) Agent Middlemen:
Agent middlemen act as representatives of their clients. They do not take title to the
produce and, therefore, do not own it. They merely negotiate the purchase and/or sale.
They sell services to their principals and not the goods or commodities. They receive
income in the form of commission or brokerage. Agent middlemen are of two types
Kaccha arhatias: primarily act for the sellers, including farmers. They sometimes
provide advance money to farmers and intinerant traders on the condition that the produce
will be disposed of through them. Kaccha arhatias charge arhat or commission in addition
to the normal rate of interest on the money they advance.
Pacca arhatia: acts on behalf of the traders in the consuming market. The
processors (rice millers, oil millers and cotton or jute dealers) and big wholesalers in the
consuming markets employ pacca arhatias as their agents for the purchase of a specified
quantity of goods within a given price range. In regulated markets, only one category of
commission agent exists under the name of „A class trader. The commission agent keeps
an establishment – a shop, a godown for his clients. He renders all facilities to his clients.
He is, therefore, preferred by the farmers to the co-operative marketing society for the
purpose of the sale of the farmer s produce.
Brokers: Brokers render personal services to their clients in the market; but unlike the
commission agents, they do not have physical control of the product. The main function of
a broker is to bring together buyers and sellers on the same platform for negotiations.
Their charge is called brokerage. They may claim brokerage from the buyer, the seller or
both, depending on the market situation and the service rendered. They render valuable
service to the prospective buyers and sellers, for they have complete knowledge of the
market. Brokers have no establishment in the market. In most regulated markets, brokers
do not play any role because goods are sold by open auction.
(c)Speculative Middlemen:
Those middlemen who take title to the product with a view to making a profit on it
are called speculative middlemen. They are not regular buyers or sellers of produce. They
specialize in risk – taking. They buy at low prices when arrivals are substantial and sell in
the off – season when prices are high. They do the minimum handling of goods. They
make profit from short-run as well as long-run price fluctuations. Processors carry on their
business either on their own or on custom basis.
(d)Facilitative Middlemen
Some middlemen do not buy and sell directly but assist in the marketing process.
Marketing can take place even if they are not active. But the efficiency of the system
increases when they engage in business. These middlemen receive their income in the
form of fees or service charges from those who use their services. The important
facilitative middlemen are:
Hamals or Labourers: They physically move the goods in marketplace. They do
unloading from and the loading on to bullock carts or trucks. They assist in weighting the
bags. They perform cleaning, sieving, and refilling jobs and stitch the bags. Hamals are
the hub of the marketing wheel. Without their active co-operation, the marketing system
would not function smoothly.
Weighmen: They facilitate the correct weighment of the produce. They use a pan
balance when the quantity is small. Generally, the scalebeam balance is used. They get
payment for their services through the commission agent.
Graders: These middlemen sort out the product into different grades. They
facilitate the process of prices settlement between the buyer and the seller.
Transport Agency: This agency assists in the movement of the produce from one
market to another.
Communication Agency: It helps in the communication of the information about
the prices prevailing, and quantity available, in the market.
Advertising Agency: It enables prospective buyers to know the quality of the
product and decide about the purchase of commodities. Newspapers, the radio, cinema
slides, television and Internet are the main media for advertisements.
Auctioners: They help in exchange function by putting the produce for auction and
bidding by the buyers.
Regulated markets:
National Institute of Agricultural Marketing has started functioning at Jaipur (Raj) with
effect from 8th August, 1988.
Function
Ii) To augment the agricultural marketing infrastructure of the country through programmes
of teaching, research and consultancy services;
II) To design and conduct training courses appropriate to the specific identified needs of
the personnel and enterprises and institutions that they serve;
III) To undertake research to demonstrate and replicate better management techniques in
the field of agricultural marketing;
IV)To provide consultancy services for formulating investment projects and for problem
solving advice;
V)To offer educational programmes in agricultural marketing for up implementing the
existing facilities.
Regulated market
Under the traditional system of marketing of the agricultural products, producer-
sellers incurred a high marketing cost, and suffered from unauthorized deductions of
marketing charges and the prevalence of various malpractices. To improve marketing
conditions and with a view to creating fair competitive conditions, the increase in the
bargaining power of producer-sellers was considered to be the most important prerequisite
of orderly marketing. Most of the defects and malpractices under, the then existing
marketing system of agricultural products have been more or less removed by the
exercise of public control over markets, i.e., by the establishment of regulated markets in
country.
Objectives
MODEL ACT: The State Agricultural Produce Marketing(Development & Regulation Act,
2003) 9th September 2003. Salient Features of the Model Act on Agricultural Marketing
Salient features the act:
1. The Title of the Act is changed to highlight the objective of development of agricultural
marketing in addition to its regulation under the Act. Accordingly, the Preamble of the Act
is redrafted to provide for development of efficient marketing system, promotion of agri-
processing and agricultural exports and to lay down procedures and systems for putting in
place an effective infrastructure for the marketing of agricultural produce.
2. Legal persons, growers and local authorities are permitted to apply for the
establishment of new markets for agricultural produce in any area.
3. There will be no compulsion on the growers to sell their produce through existing
markets administered by the Agricultural Produce Market Committee (APMC). However,
agriculturist who does not bring his produce to the market area for sale will not be eligible
for election to the APMC.
4. Separate provision is made for notification of „Special Markets or „Special
Commodities Markets in any market area for specified agricultural commodities to be
operated in addition to existing markets.
5. The APMC have been made specifically responsible for:
• ensuring complete transparency in pricing system and transactions taking
place in market area;
• providing market-led extension services to farmers;
• ensuring payment for agricultural produce sold by farmers on the same day;
• promoting agricultural processing including activities for value addition in
agricultural produce;
• publicizing data on arrivals and rates of agricultural produce brought into the
market area for sale.
• Setup and promote public private partnership in the management of
agricultural markets.
6. Provision made for the appointment of Chief Executive Officer of the Market Committee
from among the professionals drawn from open market.
7. A new Chapter on „Contract Farming added to provide for compulsory registration of
all contract farming sponsors, recording of contract farming agreements, resolution of
disputes, if any, arising out of such agreement, exemption from levy of market fee on
produce covered by contract farming agreements and to provide for indemnity to
producers title/ possession over his land from any claim arising out of the agreement.
8. Model specification of contract farming agreements provided in the Addendum to the
model law.
9. Provision made for direct sale of farm produce to contract farming sponsor from
farmers field without the necessity of routing it through notified markets.
10.Provision made for imposition of single point levy of market fee on the sale of notified
agricultural commodities in any market area and discretion provided to the State
Government to fix graded levy of market fee on different types of sales.
11. Licensing of market functionaries is dispensed with and a time bound procedure for
registration is laid down. Registration for market functionaries provided to operate in
one or more than one market areas.
12. Commission agency in any transaction relating to notified agricultural produce
involving an agriculturist is prohibited and there will be no deduction towards
commission from the sale proceeds payable to agriculturist seller.
13. Provision made for the purchase of agricultural produce through private yards or
directly from agriculturists in one or more than one market area.
14. Provision made for the establishment of consumers / farmers market to facilitate
direct sale of agricultural produce to consumers.
15. Provision made for resolving of disputes, if any, arising between private market/
consumer market and Market Committee.
16. State Governments conferred power to exempt any agricultural produce brought for
sale in market area, from payment of market fee.
17. Market Committees permitted to use its funds among others to create facilities like
grading, standardization and quality certification; to create infrastructure on its own or
through public private partnership for post harvest handling of agricultural produce and
development of modern marketing system.
18. For the Chairmanship of State Agricultural Marketing Board, two options provided
namely Minister incharge of Agricultural Marketing as ex-officio or alternatively to be
elected by the Chairman/ members of Market Committees.
19. The State Agricultural Marketing Board made specifically responsible for:
(i) setting up of a separate marketing extension cell in the Board to provide market-
led extension services to farmers;
(ii) promoting grading, standardization and quality certification of notified agricultural
produce and for the purpose to set up a separate Agricultural Produce
Marketing Standards Bureau.
20. Funds of the State Agricultural Marketing Board permitted to be utilized for promoting
either on its own or through public private partnership, for the following:
• market survey, research, grading, standardization, quality certification, etc.;
• Development of quality testing and communication infrastructure.
• Development of media, cyber and long distance infrastructure relevant to
marketing of agricultural and allied commodities
(i) maintain and manage the market yards and sub-market yards within the market area;
(ii) provide the necessary facilities for the marketing of agricultural produce within the
market yards and outside the market yards and within the sub-market yards and outside
the sub-market yards in the market area;
(iii) register or refuse registration to market functionaries and renew, suspend or cancel
such registration, supervise the conduct of the market functionaries and enforce conditions
of Registration;
(iv) regulate or supervise the auction of notified agricultural produce in accordance with
the provision and procedure laid down under the rules made under this Act or bye-laws of
the Market Committee ;
(v) conduct or supervise the auction of notified agricultural produce in accordance with the
procedure 1aid down under the rules made under this Act or bye-laws of the Market
Committee ;
(vi) regulate the making, carrying out and enforcement or cancellation of agreements of
sales, Weighment, delivery, payment and all other matters relating to the market of notified
agricultural produce in the manner prescribed;
(vii) provide for the settlement of all disputes between the seller and the buyer arising out
on any kind of transaction connected with the marketing of notified agricultural produce
and all matters ancillary thereto;
(viii) take all possible steps to prevent adulteration of notified agricultural produce; make
arrangements for employing by rotation, Weighmen and hammals for weighing and
transporting of goods in respect of transactions held in the market yard/ sub yards.
Objectives:
Warehousing-meaning-
Meaning:
Warehousing: warehouses are scientific storage structures especially constructed
for the protection of quantity and quality of stored products Warehousing may be defined
as the assumption of responsibility for the storage of goods. It may be called the protector
of national health, for the produce stored in warehouses is preserved and protected
against rodents, insects and pests.
1.Scientific storage: Here, a large bulk of agricultural commodities may be stored. The
product is protected against quantitative and qualitative losses by theuse of such methods
of preservation as are necessary.
Warehousing in India:
The Government of India enacted the Agricultural produce (Development and
Warehousing) corporation act, 1956. The act provided for:
a) The establishment of a National Co-operative Development and Warehousing board
( which was set up on 1st September, 1956);
b) The establishment of central Warehousing corporation (Which was established on 2
march, 1957); and
c) The establishment of state Warehousing Corporation in all states in the country (which
were established in various states between July 1957 and August 1958).
Functions:
• To acquire and build godowns and Warehouses at suitable places in India.
• To run Warehouses for storage of agricultural produce, seeds, fertilizers and
notified commodities for individuals, co-operatives and other institutions.
• To act as an agent of the govt. for purchase, sale, storage and distribution of the
above commodities.
• To arrange facilities for the transport of above commodities.
• To subscribe to the share capital of SWC.
State Warehousing Corporation: The State Warehouse Corporation was established
under Sub-Section 1, Section 18 of the Warehousing Corporation Act, 1958 (Central
Amended Act of 1962) enacted by the Parliament. SWC is a Corporation having 50%
Share Capital by Central Warehousing Corporation and 50% share capital by the state
Govt.
• The Warehousing Scheme envisages providing storage facilities for food grains and
other agriculture commodities, seeds, manures and fertilizers to minimize losses
and deterioration in storage.
• The scheme also aims to enable farmers to have easy and cheap credit facilities
from Banks against pledge of the Warehouse Receipt to improve the holding
capacity of the producer to avoid distress sales in harvesting seasons.
• To realize the above objectives, the Warehousing Corporation is empowered to a
acquire and build Warehouses for storage of agricultural produce, seeds, fertilizers
and other notified commodities .
• to act as an agent of the Central Warehousing Corporation or of the Government,
for the purpose of purchases, sales storage, distribution etc., of agricultural
commodities in time of need.
QUALITY CONTROL
To ensure the confidence of consumers, it is essential that grading is done in accordance
with the standards that have been set. For this purpose, the inspection of the goods at
regular intervals by a third party is essential. Inspection are carried out by inspectors
appointed by the government, and not by a producer or a buyer. Regular inspection
creates confidence among the buyers. Producers, too, know that there is someone who
checks the standards of the produce graded by them. This avoids the temptation of
adopting such malpractices in the grading as mixing of the inferior grade produce, etc.
after laboratory tests, if the produce is below standards, the licence of the grader is
cancelled and legal action is initiated against him..
From the marketing point of view, this surplus is more important than the total
production of commodities. The arrangements for marketing and the expansion of markets
have to be made only for the surplus quantity available with the farmers and not for the
total production. The rate at which agricultural production expands determines the pace of
agricultural development, while the growth in the marketable surplus determines the pace
of economic development. An increase in production must be accompanied by an
increase in the marketable surplus for the economic development of the country. The
larger is the production of a commodity, the greater the surplus of that commodity and vice
versa.
The marketed and marketable surplus helps the policy-makers as well as the
traders in the following areas.
1. Marketable Surplus
The marketable surplus is that quantity of the produce which can be made available to the
non-farm population of the country. It is a theoretical concept of surplus. The marketable
surplus is the residual left with the producers farmers after meeting his requirement for
family consumption, farm needs for seeds and feed for cattle, payment to labour in kind,
payment to artisans, blacksmith, potter and mechanic payment to landlord as rent and
social and religious payments in kind. This may be expressed as follows :
MS = P - C
where
MS = Marketable surplus
P =Total production, and
C = Total requirements (family consumption, farm needs, payment to labour,
artisans, landlord and payment for social and religious work)
2. Marketed Surplus
Marketed surplus is that quantity of the produce which the producer farmer actually sells in
the market, irrespective of the requirements for family consumption, farm needs and other
payments. The marketed surplus may be more, less or equal to the marketable surplus.
Whether the marketed surplus increases with the increase in production has been under
continual theoretical security. It has been argued that poor and subsistence farmers sell
that part of the produce which is necessary to enable them to meet their cash obligations.
This results in distress sale on some farms.
MARKETABLE SURPLUS
The marketed surplus may be more, less or equal to the marketable surplus,
depending upon the condition of the farmer and type of the crop. The relationship between
the two terms may be stated as follows.
1. The marketed surplus is more than the marketable surplus when the farmer retains a
smaller quantity of the crop than his actual requirements for family and farm
needs. This is true especially for small and marginal farmers, whose need for cash is more
pressing and immediate. This situation of selling more than the marketable surplus is
termed as distress or forced sale. Such farmers generally buy the produce from the
market in a later period to meet their family and/or farm requirements. The quantity of
distress sale increased with the fall in the price of the product. A lower price means that a
larger quantity will be sold to meet some fixed cash requirements.
2. The marketed surplus is less than the marketable surplus when the farmers retain some
of the surplus produce. This situation holds true under the following conditions.
(a) Large farmers generally sell less than the marketable surplus because of their
better retention capacity. They retain extra produce in the hope that they would get a
higher price in the later period. Sometimes, farmers retain the produce even up to the next
production season.
(b) Farmers may substitute one crop for another crop either for family consumption
purpose or for feeding their livestock because of the variation in prices. With the fall in the
price of the crop relative to a competing crop, the farmers may consume more of the first
and less of the second crop.
3. The marketed surplus may be equal to the marketable surplus when the farmer neither
retains more nor less than his requirement. This holds true for perishable commodities and
of the average farmer.
i. Size of holding
ii. Production
iii. Price of the Commodity
iv. Size of family
v. Requirement of Seed and Feed
vi. Nature of Commodity
vii. Consumption Habits :
The functional relationship between the marketed surplus of a crop and factors
affecting the marketed surplus may be expressed as :
1. Inverse relationship:
There is an inverse relationship between prices and the marketable surplus. This
hypothesis was presented by P.N. Mathur and M. Ezetkiel. They postulate that the
farmers cash requirements are nearly fixed and given the price level, the marketed
portion of the output is determined. This implies that the farmers consumption is a
residual and that the marketed surplus is inversely proportional to the price level. This
behaviour assumes that farmers have inelastic cash requirements With a rise in the
prices of foodgrains, they sell a smaller quantity of foodgrains to get the cash they
need and vice versa. In other words, with a rise in price, farmers sell a smaller, and
with the fall in price they sell a larger quantity. Olson and Krishnan have argued that
the marketed surplus varies inversely with the market price. They contend that a
higher price for a subsistence crop may increase the producer’s real income sufficiently
to ensure that the income effect on demand for the consumption of the crop outweighs
the price effect or production and consumption.
Positive relationship:
V.M. Dandekar and Rajkrishna put forward the case of a positive relationship
between prices and the marketed surplus of foodgrains in India. This relationship is based
on the assumption that farmers are price conscious. With a rise in the prices of foodgrains,
farmers are tempted to sell more and retain less. As a result, there is increased surplus.
The converse, too, holds true.
Marketing Channels
Marketing channels are routes through which agricultural products move from
producers to consumers. The length of the channel varies from commodity to commodity,
depending on the quant9ity to be moved, the form of consumer demand and degree of
regional specialization in production.
Definition
A marketing channel may be defined in different ways according to Moore at al the
chain of intermediaries through whom the various foodgrains pass from producers to
consumers constitutes their marketing channels.
Kohls and Uh/2 have defined marketing channels as alternative routes of product flows
from producers to consumers.
According to Moore et al. “The chain of intermediaries through whom the various food
grains pass from producers to consumers constitutes their marketing channels”.
Co-operative marketing
Meaning
A co-operative sales association is a voluntary business organization established
by its member to market farm products collectively for their direct benefit. It is governed by
democratic principles, and savings are distributed to the members on the basis of their
share. The members are the owners, operators and contributors of the commodities and
are the direct beneficiaries of the savings that accrue to the society. Co-operative
marketing organizations are associations of producers for the collective marketing of their
produce and for securing for the members the advantages that result from large-scale
business which an individual cultivator cannot secure because of his small marketable
surplus. In a co-operative marketing society, the control of the organization is in the hands
of the farmers, and each member has one vote irrespective of the number of shares
purchased by him. The profit earned by the society is distributed among the members on
the basis of the quantity of the produce marketed by him. In other words, co-operative
marketing societies are established for the purpose of collectively marketing the products
of the member farmers. It emphasizes the concept of commercialization. Its economic
motives and character distinguish it from other associations. These societies resemble
private business organization in the method of their operations; but they differ from the
capitalistic system chiefly in their motives and organizations.
Functions
The main functions of co-operative marketing societies are:
(i) To market the produce of the members of the society at fair prices;
(ii) To safeguard the members for excessive marketing costs and malpractices;
(iii) To make credit facilities available to the members against the security of the produce
brought for sale;
(iv) To make arrangements for the scientific storage of the members' produce;
(v) To provide the facilities of grading and market information which may help them to
get a good price for their produce;
(vi) To introduce the system of pooling so as to acquire a better bargaining power than
the individual members having a small quantity of produce for marketing purposes;
(vii) To act as an agent of the government for the procurement of foodgrains and for the
implementation of the price support policy;
(viii) To arrange for the export of the produce of the members so that they may get better
returns;
(ix) To make arrangements for the transport of the produce of the members from the
villages to the market on collective basis and bring about a reduction in the cost of
transportation; and
(x) To arrange for the supply of the inputs required by the farmers, such as improved
seeds, fertilizers, insecticides and pesticides.
Types
On the basis of the commodities dealt in by them, the co-operative marketing
societies may be grouped into the following types:
(i) Single Commodity Co-operative Marketing Societies
They deal in the marketing of only one agricultural commodity. They get sufficient
business from the farmers producing that single commodity. The examples are Sugarcane
Co-operative Marketing Society, Cotton Co-operative Marketing Society and Oilseed
Growers Co-operative Marketing Society.
(ii) Multi-Commodity Co-operative Marketing Societies
They deal in the marketing of a large number of commodities produced by the
members, such as foodgrains, oilseeds and cotton. Most of the co-operative marketing
societies in India are of this type.
(iii) Multi-purpose, Multi-commodity Co-operative Marketing Societies
These societies market a large number of commodities and perform such other
functions as providing credit to members, arranging for the supply of the inputs required by
them, and meeting their requirements of essential domestic consumption goods.
Structure
The co-operative marketing societies have both two-tier and three-tier structure. In
two-tier pattern with primary marketing societies at the taluka level and state marketing
federation as an apex body at the state level. In three-tier system with district marketing
society in the middle. At the national level, NAFED serves as the apex institution. The
pattern of the three-tier structure is as follows:
At the base level, there are primary co-operative marketing societies. These
societies market the produce of the farmer members in that area. They may be single
commodity or multi commodity societies, depending upon the production of the crops in
the area. They are located in the primary wholesale market, and their field of operations
extends to the area from which the produce comes for sale, which may cover one or two
tehsils, panchayat samitis or development blocks.
(ii) Regional/District Level
At the regional or district level, there are central co-operative marketing unions or
federations. Their main job is to market the produce brought for sale by the primary co-
operative marketing societies of the area. These are located in the secondary wholesale
markets and generally offer a better price for the produce. The primary co-operative
marketing societies are members of these unions in addition to the individual farmer
members. In the two-tier structure, the State societies perform the functions of district level
societies by opening branches throughout the district.
(iii) State Level
At the state level, there are apex (State) co-operative marketing societies or
federations. These state level institutions serve the state as a whole. Their members are
both the primary co-operative marketing societies and the central co-operative unions of
the state. The basic function of these is to coordinate the activities of the affiliated
societies and conduct such activities as inter-state trade, export-import, procurement,
distribution of inputs and essential consumer goods, dissemination of market information
and rendering expert advice on the marketing of agricultural produce.
Membership
There are two types of members of co-operative marketing societies:
(i) Ordinary Members
Individual farmers, co-operative farming societies and service societies of the area
may become the ordinary members of the co-operative marketing society. They have the
right to participate in the deliberations of the society, share in the profits and participate in
the decision making process.
(ii) National Members
Traders with whom the society establishes business dealings are enrolled as
nominal members. Nominal members do not have the right to participate in decision
making and share in the profits of the societies.
Sources of Finance
In 1966, the Dantwala Committee estimated a capital base of Rs.2.00 lakhs for a
co-operative marketing society. At 2003 prices, it should be at least Rs.40.00 lakhs. The
following are the major sources of finance of a co-operative marketing society:
(i) Share Capital
Farmer-members and the State Government subscribe to the share capital of co-
operative marketing societies. Members may purchase as many shares as they like. They
are encouraged to invest sufficiently in the share capital. They are also persuaded to
invest their dividend and bonus in the shares of co-operative marketing societies.
(ii) Loans
Co-operative marketing societies may raise their finance by way of loans from the
Central and State Co-operative Banks and from commercial banks by pledging and
hypothecation and also by clean credit to the extent of 50 per cent of owned capital.
(iii) Subsidy
The Co-operative marketing societies get a subsidy from the government for the
purchase of grading machines and transport vehicles to meet their initial heavy
expenditure. They also get a subsidy for a part of the cost of the managerial staff for a
period of 3 years to make them viable.
Functioning
The important functions carried out by the co-operative marketing societies are:
(i) Sale on Commission Basis
Co-operative marketing societies act as commission agents in the market, i.e., they
arrange for the sale of the produce brought by the members to the market. The produce is
sold by the open auction system to one who bids the highest price.
The main advantage, which the farmer-members get by selling the produce
through co-operative marketing societies instead of a commission agent, is that they do
not have to accept unauthorized deductions or put up with the many malpractices, which
are indulged in by individual commission agents. As there is no individual gain to any
member in the marketing of the agricultural produce through co-operative marketing
societies, no malpractices are expected to be indulged in. This type of marketing is not
risky for co-operative societies. But sometimes traders in the market form a ring and either
boycott the auction or bid a low price when the produce is auctioned on the co-operative
marketing societies shops. Therefore, farmers hesitate to take their produce for sale in the
market through co-operative marketing societies.
(ii) Purchase of Members' Produce
Co-operative marketing societies also enter the market as buyers. A society
participates in bidding together with other traders, and creates conditions of competition.
The commodities thus purchased by a society are sold again when prices are higher. This
system of the outright purchase of the produce by the society involves the risk of price
fluctuations. If the managers of societies lack business experience, they hesitate to adopt
the outright purchase system. In 1964-65, the National Cooperative Development
Corporation recommended that the outright purchase system should be adopted only by a
society which possesses the following qualities:
(a) The society has a trained manager, i.e., one who is capable of understanding the
intricacies of the trade;
(b) The society is financially sound and has adequate borrowing facilities;
(c) The society is affiliated to a good viable central level society; and
(d) The society possesses processing facilities.
Kohis and Uhl have defined “Market integration as process which refers to the
expansion of firms by consolidating additional marketing functions and activities under a
single management”.
1. Horizontal integration :
When a firm gains control over other firms, performing similar marketing functions.
Some marketing agencies (say, sellers) combine to form a union with a view to reducing
their effective number and the extent of competition in the market.
• Horizontal integration is advantageous for the members who join the group.
• If farmers join hands and form cooperatives, they are able to sell their produce in
bulk and reduce their cost of marketing.
• Horizontal integration of selling firms is not in the interests of consumers or buyers.
2. Vertical integration :
Occurs when a firm performs more than one activity in the sequence of the marketing
process. It is linking together of two a more functions within a single firm or under a single
ownership. Eg: - If a firm assumes the functions of the commission agent as well as
retailing.
3. Conglomeration:
A combination of agencies or activities not directly related to each other, may when
it operates under a united management, be termed a conglomeration. Eg: Hindustan
Lever Ltd. Delhi cloth and General mill (cloth & vanaspati).
Marketing efficiency:
Marketing efficiency is essentially the degree of market performance. It is a broad
and dynamic concept.
Def: - If is the ratio of market output (satisfaction) to marketing input (cost of resources).
An increase in ratio represents improved efficiency and vice versa.
2. Pricing / A locative efficiency: System is able to allocate farm products either over time,
across the space or among the traders, processors and consumers at a point of time in
such as way that no other allocation would make producers and consumers better off.
Pricing efficiency refers to the structural characteristics of the marketing system, when the
sellers are able to get the true value of their produce and the consumers receive true
worth of their money.
A reduction in the cost for the same level of satisfaction or an increase in the
satisfaction at a given cost results in the improvement in efficiency. (Khols and Uhl.)
O
E = ---- x 100
I
E = level of efficiency
O = value added to the marketing system.
I = real cost of marketing
PF
Ps = ---- x 100
Pr
Where,
Ps = Producer’s share
PF = Price received by the farmer
Pr = Retail price paid by the consumer
Marketing costs are the actual expenses required in bringing goods and services from the
producer to the consumer.
Margin refers to the difference between the price paid and received by a specific
marketing agency, such as a single retailer, or by any type of marketing agency such as
retailers or assemblers or by any combination of marketing agencies.
Marketing margin of a Middleman : There alternative measures may be used. The three
alternative measures which may be used in estimating market margins are.
Price Spread
The difference between the price paid by the consumer and price received by the
farmer. It involves various costs incurred by various intermediaries and their margins.
Risks on marketing speculation-hedging-future trading- forward market- -contract
farming/contract farming-Price forecasting
Risks in marketing
Risk is inherent in all marketing transactions. Fire, rodents, quality deterioration,
price fall, change in tastes, habits or fashion, placing the commodity in the wrong hands or
area are all also associated with marketing risk. Hardy has defined risk as uncertainty
about cost, loss or damage. The longer the time lags between production and
consumption, the greater the risk. Most of the risk is taken by market middlemen. The
bearer of the risk may be better off or worse-off. A risk cannot be eliminated because it
also carries profit.
Types of Risk : The risks associated with marketing are of three types, namely physical
risk, price and institutional risk.
i. Physical risk: Physical risk includes loss of quantity and quality. It may be due to fire,
flood, earthquake, rodents, pests, excessive moisture or temperature, careless
handling, improper storage, looting or arson.
ii. Price risk Price risk associates with fluctuation in price from year to year or within the
year.
iii. Institutional risks: Institutional risks include the risks arising out of a change in the
government budget policy, imposition of levies price controls etc.
Speculation : Purchase or sale of a commodity at the present price with the object of sale
or purchase at some future date at a favourable price.
Hedging : It is a trading technique of transferring the price risk. “Hedging is the practice of
buying or selling futures to offset an equal and opposite position in the cash market and
thus avoid the risk of uncertain changes in prices” (Hoffman).
Futures Trading : It is a device for protecting against the price fluctuations which normally
arise in the course of the marketing of commodities. Stockicsts , processors or
manufactures utilize the futures contracts to transfer the price risks faced by them.
Speculator purchases and sells goods when The commodities are not stored by
prices are as per his expectations. traders. Only the difference in the price
is given or taken on the due date
Commodities permissible under futures trading must satisfy the following conditions.
1. Plentiful supply of the commodity.
2. Must be storable.
3. Commodity should be homogeneous.
4. Commodity should have a large demand.
5. Supply of the commodity should not be controlled by a few large firms.
6. The price of a commodity should be liable to fluctuate over a wide range.
Forward Markets
A market in which the purchase and sale of a commodity takes place at time „t but
the exchange of the commodity takes place on some specified date in future i.e. t+1.
Some times even on the specified date in the future, (t+1) there may not be any exchange
of the commodity. Instead, the differences in the purchase and sale price are paid or
taken.
1. Forward market opens out the way for a large number of persons with insufficient
means, inadequate experience and information to enter into commitments which may
be beyond their means. In such conditions market gets demoralized.
2. It enable unscrupulous speculators, with little interest in the actual supply of and
demand for, a particular commodity, to corner the supplies and organize bear raids and
bull raids on the market in the hope of making easy money for themselves. This results
in violent fluctuations in prices.
Contract Farming/Marketing:
Price Forecasting
Forecasting is the prediction of values of a variable. Forecasts also may be based
on expert judgments, which in turn are based on historical data and experience.
a. MSP : Chief function is to set a floor to the downward fluctuations in the market prices.
It is a insurance against price uncertainty.
b. Maximum Ceiling Prices : APC has not favoured maximum or ceiling prices for
agricultural commodities. In the case of food grains, the states were unable to enforce
legally fixed maximum prices. Private stocks tended to go underground.
c. Procurement Prices : Always higher than MSP. Government procures for deficit states
and vulnerable sections of population. APC takes into account market prices, minimum
prices announced in the season, marketing and processing costs, the likely impact of
levels of procurement prices on farmer s own cost of living, and the external
competitiveness of the commodities concerned.
d. Issue Prices : These are below open market prices and always higher than
procurement prices. Food grains prices supplied through fair price shops and rationing at
subsidized rates are issue prices.
Administered Prices :
Prices fixed by the government with the objective of protecting farmers against a
decline in prices during the year of bumper production, protecting consumers from
excessive price increases and ensuring procurement for buffer stocks or operation of
PDS. These are three types :
1. Minimum Support Price, (MSP) : Price fixed by the government to protect farmers
against excessive fall in prices.
2. Procurement Price : Refers to the price at which government procures from producers
to maintain buffer stocks and feed Public Distribution System.
3. Issue Price : Price at which the commodity is made available to consumers at fair
price shops. It is always higher than procurement price.
International Trade
International trade is the exchange of goods and services between countries. This
type of trade gives rise to a world economy.
Importance:
Country Labour units/unit of cloth Labour units/unit of wine Exchange ratio between
wine and cloth
Portugal has an absolute superiority in production of both cloth and wine. Law of
comparative advantage indicates that a country should specialise in the production of that
commodity in which it is more efficient and leave the other commodity to other country.
The two nations will then have more of both goods by engaging in trade.
Country Specialization
1. Reduction in agricultural tariffs by 30% for all agricultural commodities from 1994.
2. Agricultural input subsidies are reduced by 30%, export subsidies by 36% and value of
subsidized exports by 21%.
3. Trade liberalisation policies would bring about 2-10% rise for agricultural commodity
prices in international markets resulting in a gain of $200 billion.
4. As import tariffs are reduced, the domestic demand for imports increases putting
pressure on trade balances. The developing countries have to resort to real exchange rate
devaluation to increase their exports.
5. GATT reforms are more beneficial to developed countries because of high prices for
export goods such as capital goods, machinery etc.
6. According to GATT, India can offer subsidy to increase its export competitiveness with
out altering policy related to PDS, food security etc.
7. Under TRIPS, seeds and plant varieties must be protected either by patents or by an
effective system of its own or a combination of both.
8. All regulations, rules, restrictions (QRs), export duties, minimum export prices have to
be removed to boost exports.
9. TRIMS : No restrictions on quantum of foreign investment.
1. Ministerial level conference: Meet once in two years to take principal policy decisions.
2. General council : Consists of all members, handles day to day work of WTO.
3. Bodies : (a) Dispute settlement Body, (DSB). (b) Trade policy Review Body (TPRB).
• AoA was signed as part of the Uruguay Round Agreement in April, 1994.
• It came into force with effect from 1st January, 1995.
• AoA covers three broad areas of agriculture and trade policy, namely.
i. Market Access
ii. Domestic Support, and
iii. Export subsidy
1. Developed countries have to reduce their tariffs by an average of 36% over a period of
6 years from 1995-2000, while developing countries to reduce by 24% in a span of 10
years from 1995 to 2004. Least developed countries are exempted.
2. India is under no obligation to reduce domestic support or subsidies currently extended
to agriculture.
3. No export subsidy has been extended in India.
Market Access, Domestic subsidy & Export subsidy commitments under AOA :
1. Patent :
A patent is an exclusive right granted to the inventor to use and market the
invention for a limited period of time in consideration of the disclosure of the invention. The
product must be (a) novel, (b) have industrial application and (c) must be useful for
entitlement of a patent. Patents are given only for inventions. Inventions are solutions to
specific problems in the field of technology. An invention may relate to a product or a
process.
2. Copy Rights :
Copy right law deals with the rights of intellectual creators. It is concerned with
protecting creativity and ingenuity. It promotes and disseminates national cultural heritage.
It is meant for original literary, dramatic, musical and artistic works, cinematographic films
and softwares. Copy right is registered at Ministry of HRD which is valid for 60 years after
author s death.
3. Trade mark :
It is a sign that individualize the goods of a given enterprise and distinguishes them
from the goods of its competitors. It is limited to word marks, abbreviations, names, figures
and hologram.
4. Designs :
A design includes features of structure, configuration, pattern, ornament, or
composition of lines and colors applied to an article in 2 or 3 dimensional form by any
technical process. The process or product can be manual, civil, electrical, chemical and
mechanical or combination of all.
5. Trade secret :
It is the agreement between the employer and employee to keep the research
information secret or confidential. The employer can recover damages from the improper
disclosure or use of his trade secret by the employee.
6. Geographical Indication :
Place names used to identify products such as “Champagne”, Roquefort cheese,
Basmati rice etc. They provide legal means so that interested parties can stop the use of
such geographical indications for products that do not originate from the used place name
or do not have the usual characteristics associated with that place name.
REFERENCES
Acharya S.S and Agarwal NL, 2006, Agricultural Marketing in India. Oxford & IBH
Publishing Co.Pvt.Ltd. New Delhi
Kahlon, A.S and Tyagi.D S, 1983 Agricultural Price Policy in India. Allied Publishers Pvt.
Ltd., New Delhi.
Mamoria, C.B. and Joshi. R L.1995, Principles and Practices of Marketing in India, Kitab
Mahal, Allahabad.