The term market is derived from the Latin term’ marcatus ‘ which means trade or place where business is conducted.
In real terms ; market is defined as place where the sellers of particular good or service can meet with buyer of that good and services where there is potential for transaction to occur.
Agricultural marketing is study of all activities, agencies and policies that are involved in procurement of farm inputs by farmers and movement of agricultural products from farm to ultimate consumers. So it can be said to serve as link between farm 🚜🐄🌾 and non farm sector.
Thus it is a collaborative effort including marketing functions from post – harvest handling to pre- sowing; assembling, handling, storage, transport, processing, retailing, wholesaling, export of agricultural commodities and purchasing inputs for next agricultural season. It also includes marketing services as market information, weighing, standardization, financing, price risk mechanism and institutional development.
Dimension of agricultural marketing system includes market structure, it’s conduct and performance. The purpose of marketing is to find the right place, right time, right product and right time to make it selling superfluous.
Importance of agricultural marketing :
Agricultural market plays a important role in various ways to increase farm income, provide employment opportunities, optimum utilisation of resources, creation of utility and growth of agro-based industries.
The agricultural product differ from industrial product in many ways:
1.Nature of product: Most agricultural products are perishable in nature and hence cannot be stored for longer duration while industrial products can be stored for longer duration .
2.Weather and Season dependent: Most agricultural products are season bound and produced in particular season whereas industrial products are available throughout the year.
3.Bulkiness in nature : Agricultural products are bulky in nature and are difficult to handle, transport, storage etc. which adds to transportation cost.
4. Supply lag: As agricultural commodities are season bound so there is difference in supply and demand of goods.
5. Requirements of land area: For production of agricultural goods we needs more land as compared to industrial products like cultivation practices etc.
So from this role of agricultural markets can be determined as they hold separate importance in the economy .