Aspects of Agricultural Marketing.pptx

Raghi T ( PG Research Scholar), Dept. of Rural Marketing Management
Aspects of Agricultural
Marketing
Raghi T
PG Research Scholar
Dept. of Rural Marketing Management
College of Co-operation, Banking and Management

Different Forms of Marketing
2
CO-OPERATIVE MARKETING
 Two or more entities collaborate
 To maximize the impact of marketing efforts
 Shared marketing objectives
funds, resources, or
marketing materials
Manufacturers
/suppliers
Retail partners

3
Features of Co-operative Marketing
 Shared costs
 Local customization
 Mutual benefit
 Clear guidelines
 Challenges
Funding &
promotional materials
• Increased product visibility
• Sales
• Association with a trusted brand
• Increased footfall at stores
Shelf position
Buy 1 Get 1 Free

4
APMC (Agricultural Produce Market Committee) REGULATED MARKETING
 System of regulating the buying and selling of agricultural produce in designated market areas.
 Fair trade practices
 Provide a platform for farmers to sell their produce
 Protection from exploitation by intermediaries
Features of APMC-regulated Marketing
 Designated Market Areas (mandis)
 Licensing and Registration
 Price Discovery
 Market Fee and Charges
 Market Committees
 Regulation and Grading
 Market Integration

5
DIRECT MARKETING
 Businesses communicate directly with customers.
 No intermediaries.
 Personalized and direct connection with customers.

6
Direct mail
Email
marketing
Telemarketing
Text message
marketing
Social media
marketing
Content
marketing
Personalized
offers
Online
advertising
Direct
response
advertising
Catalogue
marketing
In-person
selling
STRATEGIES OF DIRECT MARKETING

7
Benefits of Direct Marketing:
 Personalization
 Targeted approach
 Measurable results
 Immediate response
 Control over message
 Relationship building
 Cost-effectiveness

8
FARMER PRODUCER COMPANIES
 Producer organization formed by farmers to collectively enhance:
 Agricultural productivity
 Income
 Overall livelihoods
 To empower small and marginal farmers

9
Features of Farmer Producer Companies:
 Collective Action
 Legal Entity
 Shareholding
 Professional Management
 Pooling Resources
 Access to Inputs
 Market Access
 Value Addition
 Social and Economic Development
 Government Support

10
e-NAM (National Agriculture Market)
 Pan-India electronic trading portal.
 Developed by the Government of India.
 Modernising and streamlining agriculture.
 To create a unified national market for agricultural commodities.
 To connect all existing agricultural produce market committees (APMCs) through a common online
platform, enabling farmers to sell their produce to buyers anywhere in the country.

11
Features and aspects of e-NAM:
 Unified Platform
 Transparency
 Price Discovery
 Multiple Markets
 Direct Access
 Online Bidding
 Quality Standards
 Reduced Post-Harvest Losses
 Access to Information
 Digital Payments
 Mobile App
 Government Support

12
Utilizing the electronic trading platform to buy and sell agricultural commodities.
Farmers
Traders
Buyers
Connect
Negotiate
Transact
Digital marketplace
Marketing under e-NAM

13
FARMERS
Listing
produce
Access to
multiple
markets
Real time
price
information
Transparent
bidding
process
Quality
information
Direct
selling
Online
transactions

14
TRADERS
&
BUYERS
Access to
diverse
produce
Transparent
pricing
Efficient
sourcing
Bid
submission
Quality
assurance
Reduced
intermediaries
Digital
payments

15
APMCs &
MARKET
COMMITTEES
Increased
participation
Modernization
Transparency
Data analytics

16
E-MARKETING
Offers a range of tools and strategies that can help farmers, agribusinesses, and organizations involved in the
agricultural sector effectively promote their products and connect with their target audience.
Online marketplace
and Agri-commerce
platforms
Websites and Online
presence
Social media
marketing
E-mail marketing
Online advertising
Content marketing
Mobile apps
E-commerce for
agricultural inputs
Online auctions
Blockchain and
traceability
Online training
and knowledge
sharing
Market
information
portals

17
CONTRACT FARMIMG
 Farming arrangement in which a farmer agrees to produce agricultural products under a contract with a
buyer, typically a company, processor, or exporter.
 Benefit both farmers and buyers.

18
 Agreement between parties
 Crop selection
 Quality standards
 Quantity and schedule
 Price
 Input supply
 Risk sharing
 Technical support
 Extension services
 Market access
 Sustainability practices
Features of Contract farming

19
RETAILING
 Sale of agricultural products directly to consumers or through intermediaries such as grocery stores,
supermarkets, farmers' markets, and online platforms.
 Critical for getting farm products into the hands of consumers.
 Significant role in determining the availability, quality, and price of agricultural products in the market.

20
Aspects of retailing in agricultural marketing:
Traditional brick-
and-mortar
stores
Fresh produce,
packaged goods,
and other food
items
Grocery
stores &
Supermarkets Platform for local
farmers for direct
marketing
Promote locally
grown and
seasonal products
Farmers'
Markets Organic produce,
specialty cheeses,
and gourmet
foods
Specialty
Stores
Online grocery
stores
Online retail

21
Consumers buy a
share of a farm's
produce for a season
Receive regular
deliveries of fresh
produce and other
farm products
Community
Supported
Agriculture
(CSA)
To ensure product
safety, quality, and
compliance with
regulatory
requirements
Packaging
and
Labelling
Eliminates
intermediaries
More profit
Direct-to-
Consumer
(DTC) Sales Sell fresh fruits,
vegetables, and
snacks in public
places
Street
Vendors
and Mobile
Markets

22
ORGANIZED RETAILING
Modern retail sector characterized by the presence of large, organized, and professionally managed retail chains
or businesses.
Operate in a structured and systematic manner.
Features of Organized
Retailing
Large retail
chains
Professional
management
Branding
Modern store
formats
Efficient
supply chains

23
Advantages of Organized Retailing
 Quality assurance
 Variety and choice
 Competitive pricing
 Convenience
 Employment generation
 Consumer confidence
 Tax compliance
 Market expansion

Supply Chain Management
24
 Planning, coordination, and optimization of the various stages involved in getting agricultural products from
the farm to the end consumer.
 To ensure efficient flow of agricultural products.
 To minimize losses.
 To deliver high-quality, safe, and fresh produce to consumers.

25
- Identifying and sourcing
agricultural products from
farmers or producers.
- Negotiating prices,
quality standards, and
delivery schedules with
suppliers.
- Ensuring a consistent
and timely supply of raw
materials.
Procurement and
Sourcing
- Selecting appropriate
modes of transportation
(road, rail, air, sea) for
moving products.
- Efficiently routing and
scheduling transport
vehicles to minimize transit
times and costs.
- Utilizing refrigerated or
temperature-controlled
transport for perishable
goods.
Transportation and
Logistics
- Sorting, cleaning,
grading, and processing
agricultural products to
meet quality standards.
- Packaging products in
suitable materials to
protect them during transit
and enhance shelf life.
- Implementing food
safety measures during
processing and packaging.
Processing and
Packaging
Storage and
Warehousing
- Maintaining storage
facilities with controlled
temperature and
humidity levels.
- Monitoring inventory
levels to prevent
overstocking or
stockouts.
- Implementing proper
inventory management
systems to reduce
losses due to spoilage.

26
- Establishing distribution
networks to reach various
retail points.
- Ensuring timely and
accurate deliveries to retail
stores, wholesalers, and
other end users.
- Managing relationships
with retailers and addressing
their specific requirements.
Distribution and
Retailing
- Implementing quality
control measures at every
stage of the supply chain.
- Conducting inspections,
tests, and audits to ensure
compliance with quality and
safety standards.
- Handling recalls and
product withdrawals in case
of quality issues.
Quality Control
and Assurance
- Implementing traceability
systems to track the origin
and movement of products.
- Capturing data at each
stage of the supply chain to
improve decision-making
and traceability.
- Utilizing technology, such
as blockchain, for enhanced
traceability and
transparency.
Traceability and
Data Management

27
- Adhering to sustainability
practices, including
environmentally friendly
farming and transportation
methods.
- Complying with local and
international regulations
related to food safety,
labeling, and certifications.
- Promoting ethical and fair
trade practices throughout the
supply chain.
Sustainability and
Compliance
- Analysing market trends and
consumer demand to forecast
product requirements.
- Developing production and
procurement plans to meet
anticipated demand.
- Minimizing wastage and
inefficiencies through
demand-driven supply chain
strategies.
Demand Forecasting
and Planning
- Building strong relationships
and collaboration with
suppliers, distributors, and
other stakeholders.
- Ensuring effective
communication and
information sharing within the
supply chain network.
- Responding promptly to
changes or disruptions in the
supply chain, such as weather
events or market fluctuations.
Collaboration and
Communication

State Trading
28
 Involvement of government entities or state-owned organizations in the buying, selling, import, export, and
distribution of agricultural products.
 To achieve specific policy objectives related to food security, price stabilization, market regulation, and support
for farmers.
Partial State Trading
• Private traders and government coexist.
• Traders are free to buy and sell in the market.
• The government may place some restrictions
on them.
• Government purchase directly from producers
at pre notified procurement price.
• Government sells to consumers through fair
price shops.
Complete State Trading
• When partial state trading fails.
• Purchase and sale of commodities completely
undertaken entirely by the government or its
agencies.
• Private traders not allowed.

29
effectively control international trade flows.
Import and
Export Control
to intervene in the market to stabilize prices of essential food
items.
Price
stabilization
to manage supply and demand fluctuations.
released to the market in times of scarcity to mitigate price
spikes.
Buffer Stock
Management
Food Security
Market
Regulation
consistent and sufficient food supply for the population.
fair trading practices, quality control, and adherence to food
safety standards.

30
to support domestic farmers by purchasing their produce at
guaranteed prices.
providing income security and promoting agricultural development.
Support for
Farmers
to implement tariffs, import quotas, or non-tariff barriers on
agricultural imports, safeguarding domestic industries and farmers
from foreign competition.
Tariff and Non-
Tariff Barriers
represent the interests of domestic producers and consumers in
international forums.
International
Trade
Negotiations
Export Promotion
Strategic
Stockpiling
help domestic producers access international markets and
generate foreign exchange.
to ensure a reserve in case of emergencies, such as natural
disasters or conflicts.

Warehousing
31
 Assumption of responsibility for the storage of goods.
 Protector of national health.
 Warehouses are scientific storage structures especially constructed for the protection of quantity and quality of
stored products.
 The warehousing scheme in India is an integrated scheme of scientific storage, rural credit, price stabilization
and market intelligence and is intended to supplement the efforts of co-operative institutions.
Scientific
storage
Financing
Price
stabilization
Market
intelligence

32
Warehouses
Ownership
Public
Private
Bonded
Type of
commodities
stored
General
Special
commodity
Refrigerated
Government owned.
Near seaport or an airport and accept imported goods for
storage till the payment of customs by the importer of goods.
Licensed by government.
Privately owned by companies.
Constructed on the basis of the specific requirements of the
commodity.
Ordinary warehouses.
Temperature maintained as per requirements.
For perishable commodities such as vegetables, fruits, fish, eggs
and meat.

Strategies in Agricultural Marketing
33
 Crucial for the success of entire agricultural sector.
 Effective marketing strategies can help
 Maximize profits
 Minimize losses
 Enhance the overall efficiency of the agricultural supply chain

34
Product differentiation
(Branding and labelling)
Quality assurance
(Cold chain infrastructure)
Market intelligence
(Mobile apps, etc.)
Online Agri-marketing
Farmers markets
(Haats, Mandis, etc.)
Seasonal marketing
Trade shows and exhibitions
Government programs and schemes

35
Infrastructure for exports
• Modern warehousing facilities
• Market yards and Mandis
• Transportation
• E-market platforms
• Quality testing and certification labs
• Packaging and grading centres
Auction platforms
• Market information systems
• Infrastructure for value addition
• Skill development centres
• Digital transactions
• Government schemes and subsidies
• Research and development
Market Infrastructure Needs

Government Intervention in Agricultural Marketing
36
 Framing of rules and regulations.
 Creation of market infrastructure.
 Administration of prices.
 Influencing supply and demand.
 Establishment of organisations.
 Promotion of farmer cooperatives.

37
DIRECTORATE OF MARKETING AND INSPECTION (DMI)
 Established in 1935.
 Headquarters: Faridabad
 Headed by Agricultural Marketing Adviser (AMA).
 To build up a body of knowledge of the marketing of agricultural commodities.
 To suggest measures for the promotion of an orderly and efficient marketing system for farm products.
Functions of DMI:
 Market research
 Market extension
 Statutory regulation of markets and market practices
 Promotion of grading and standardization
 Training of market personnel

Value Chain Finance
38
 Flows of funds to and among the various links within a value chain.
 Improving finance at specific points in the value chain to increase the competitiveness of the entire value chain.

39
MODELS OF VALUE CHAIN FINANCE
INTERNAL FINANCING
Consumers
Supermarket
Processors
Traders
Farmers
Input
Supplier
 Financing within the value chain
 Financial institutions may or may not involve.
 Utilises relationships and transaction mechanisms already in place.

40
EXTERNAL FINANCING WITH BANK LENDING WITH MULTIPLE TOUCH POINTS
Consumers
Supermarket
Processors
Traders
Farmers
Input
Supplier
Banks / Financial Institutions
VC Infrastructure

41
EXTERNAL FINANCING WITH FPO BEING BULK LENDER
Consumers
Supermarket
Traders/
Processors
FPO
Farmers
Input
Supplier
VC Infrastructure

42
EXTERNAL FINANCING WITH FPO & SUPER MARKETS BEING BULK LENDERS
Consumers
Supermarket
Traders/
Processors
FPO
Farmers
Input
Supplier
VC Infrastructure

43
EXTERNAL FINANCING WITH SUPER MARKET (VC ANCHOR) AS BULK LENDERS
Consumers
Supermarket
Traders/
Processors
FPO
Farmers
Input
Supplier
VC Infrastructure

References
44
 Acharya S S & Agarawal N L. 2004. Agricultural Marketing in India. Oxford and IBH Publishing Company Pvt. Ltd.
New Delhi.
 https://www.manage.gov.in/studymaterial/scm-e.pdf
 Nanda, S. K., Ipe, B. T., and Satyasai, K. J. S. 2022. Financing Agricultural Value Chains: With FPOs as Pivots. Rural
Pulse Issue XXXVIII, NABARD. Available: https://www.nabard.org/auth/writereaddata/tender/0808222219rural-
pulse-issue-XXXVIII.pdf
 Tripathi, A. P
. 2018. Types and Problems of Agricultural Markets in India. J. adv. sch. res. allied educ. 15 (1): 1433 –
1438. Available: http://ignited.in/I/a/304280

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