Agriculture Marketing. Agriculture Sector in Pakistan Agriculture Marketing All the activities by...

Agriculture Marketing

Agriculture Sector in Pakistan

Agriculture Marketing

All the activities by which agriculture-produce is brought from farm to the final buyers are collectively known as agriculture marketing.

“We can say that marketing means to create environment for sale”


Essential of Good marketing

1. Quality of productQuality of the product should be good. If produce of goods are mixed in good & bad quality as has been case in Pakistan, the reputation of the whole produce suffers and fair price is not obtained.

2. Staying powerThe seller shall have staying power so that he may get reasonable income by selling at fair price.


Essential of Good marketing3. Means of Transportation & communication

Advance means of communication & transportation should exist. The cultivator should have easy access to the market.

4. Marketing at convenient distancesMarkets should be at convenient distances from the production village. If the markets are not available at convenient distance form the cropped arrears, then farmers will prefer to sell the goods in his own village on comparatively low prices.


Defects in Agriculture Marketing1. Problems of produce collection

The collection of produce from small farmers is very expensive & difficult process. So it is a great problem of marketing.

2. Rough grading of Agriculture Products Commodities which are graded & standardized have higher price in the market. In Pakistan mixing of inferior & superior qualities are common. It therefore, possesses a problem of marketing both in domestic & foreign markets.


Defects in Agriculture Marketing

3. Old weights & measuresTraders in our markets use defective measures for their benefit. Over weight & under weight are used during buying & selling.

4. Bad quality of the productsOur products are of poorer quality. The poor quality is due to use of inferior seeds, natural calamities, defective harvesting etc.



5. Lack of storage facilityThe storage facilities in markets are inadequate; seller can not store & wait for a higher price of the

product.

6. Existence of middlemanThe middleman takes a big share of farmers without doing anything. The farmers borrow the money from them & sell their products at low prices.



7. Means of transportation Our means of transportation are insufficient, so regular supply of product is not possible. The

village are not properly linked to the markets.

8. System of RevenueOur farmers have to pay land revenue after the harvesting of crop, so it forces the farmers to sell their produce at low price.


Measures to improve the agriculture marketing

1. Market Advisory CommitteeMAC at district level should be set up to provide technical advice to co-operative marketing societies. The officers of co-operative &

agriculture department should be the members.

2. Enhance marketing societiesCo-operative marketing societies should be set up in villages & the farmers should be induced to become the members of these societies.


Measures to improve the Agriculture Marketing

3. Availability of storage facilityThe government should provide the loan to the farmers for the construction of stores. The government should also construct the stores.

3. Standard weights & measuresThe inspectors should strictly check the weight & measures used in the markets, so that unfair trade practices could be swept away.



5. Better transport facilityThere should be improvement in transport facilities because it plays a major role in the organization of agriculture markets, with better transportation facilities, the product can arrive in a shorter time &

without loses. 6. Reforms in Market

The government should improve the markets system in the markets. Strict law should be introduced. The prices of agricultural products should be checked by the inspectors.



7. Establishment of Organized marketsThe old markets are getting congested so new market should be established. These markets

should be built near the production centers.

8. System of creditCredit facilities should be provided to the formers for the purchase of inputs & agriculture machineries. In this way they can increase their productivity.


Measures adopted by the Government

1. Market committees Punjab agriculture produce sales act was passed in 1939. According to this act, market committee supervise buying & selling in organized markets.

2. New weights systemIn January 1977, new weights system was introduced by the Government. Now in all organized markets homogenous weights are used which has decreased cheating of farmers.



3. PASSCO (Pakistan Agriculture Storage & Services Corporation)

The government established PASSCO in 1973. PASSCO is playing very important role in stabilization of prices of selected agricultural commodities. It purchases the produce from the farmers & sells it to the co-operative societies.

4. AMSLThe Agriculture Marketing & Storage Limited (AMSL) was set up in 1981. It has done the useful job in the stabilization of prices.



5. Price Support PolicyPrice support policy was adopted by the government for purchase of some selected commodities. If the price of a commodity goes below than a certain level the government purchases that commodity at price favourable for the farmer & in this way the grower is encouraged to produce the same item next time.

6. Market intelligenceGovernment has announced daily rates of produces in different markets through newspapers & T.V. In this way the farmers remain aware about current market situation.



7. Construction of GodownThe government has constructed many godowns for the storage of agriculture production.

8. Grading centersThe government has constructed agricultural marketing & grading centers at Khanpur, Sukkur, Hyderabad & Karachi.


Non- Agriculture sector in Rural Economy

Approximately more than two third of our population are living in rural areas. About more than half of these people are neither land-owners nor they are directly concerned with agriculture. Mostly their means of livelihood relate to non- agriculture activities but they have a significant role to play in the development of agriculture.



These professions include farm labour, iron smith, carpenter, barber, cobbler etc., who perform vital services in the rural economy. Small shop keepers, retailers, grain merchants, people involved in the construction & masonry & social services in the rural areas do not fall under the agriculture sector.



Similarly tractor drivers, mechanics and those responsible for ploughs making, thresher operators and agricultural implements mechanics do not directly fall in the agriculture sector.



Economic development cannot exclusively be linked with economic factors. Some of the non- economic factors still play an active role in the economic development. In this connection social behaviours of the community need to be changed.



As is evident, our social and cultural structure is very backward & outdated. Old customs, traditions and practices are very common. We are still tied up & bound in chain of old culture & civilization. Our entire society is divided in cast, creeds & Biradari system. There is big status gap between people belonging to high & low castes. People belonging to low castes are known as “Kammis”



We need to bring a better change in our social attitude to arrange uplift in non-agriculture economy so that self respect, individual freedom & self confidence of suppressed classes of society are restored. To achieve that end proper planning is needed to bring about a social transformation, which can end class distinction.



People living in rural areas are under great stress & strain in earning their livelihood. Lack of sources especially financial resources is a great set-back in the way of their progress, prosperity & welfare. They are badly stuck up in the vicious circle of poverty, frustration, humiliation & intimidation. The condition of labour in the rural areas is most miserable. They work day & nights in the farms & fields. Neither their work hours fixed nor their wages of compensation.

Agriculture Sector in PakistanNon- Agriculture sector in Rural Economy

No serious planning has ever been made to better the economic conditions of these suppressed & deprived class of society. Even if the agriculture production increases considerably, it will not be a source of progress & prosperity to all the people living in rural areas because a good number of people living in rural areas are neither land-owners nor they are directly involved in agriculture. The income obtained form agriculture goes to those, who are either landowners or are involved in cultivation like muzaraieen or contractor (Thakedar & Pattadar).


Now a days a cultivator or a tenant gets about 30 percent of his livelihood by performing non-agriculture jobs. These non-agriculture jobs include threshing & packaging with the help of agricultural machinery. These jobs also include agro-processing like grinding of wheat i.e. Preparing flour, rice husking, cotton ginning, serving in village bakeries, sweet shops, basic industrial units, repair & maintenance shops of bicycles, motor cycles, driving bullock carts, donkey carts, horse and push carts.



It also helps to bring stability in the income of rural population. Progress of non-agriculture sector also plays a positive & vital role in the development & progress of agriculture sector. Its benefit & importance is very significant for landless people living in the rural areas.



Agriculture & non-agriculture sectors are inter-dependent to a greater extent. It is, therefore, essential that both these sectors should progress & flourish side by side & obstacles & impediments on their way are removed for the overall uplift of the rural economy. Getting loans for boosting business activities form banks & loaning agencies for this sector is cumbersome, complicated and hardly possible.



The rate of mark up of such loans is very high. People belonging to non-agriculture sector are usually landless & do not fulfil these specified requirements for obtaining loans. They are unable to start their business being resource scarce.


Conclusion1. The rules & regulations of banks, loaning agencies &

micro finance corporation are suitably amended & softened to enable these resource-less people to get benefit at suitably low mark up.

2. The Government must concentrate on improving the infra-structure of rural areas, where there are no roads or if these roads are broken & beyond repair. Villagers should have an easy access to markets in cities & town. They should invariably be provided schools for increasing literacy, hospitals & health centres for the upkeep of health of the overwhelming rural population and technical & vocational institutes for skill development.

3. Electronic & print media can be used usefully & effectively to reduce this gap & bring about change in their attitude and culture.

Date post:	27-Dec-2015
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