India is an agricultural country, with one-third of its population depending directly or indirectly on agriculture. As food is an essential human need, agricultural production has increasingly been commercialized.
Agricultural marketing refers to the buying and selling of agricultural products. Earlier, when village economies were self-sufficient, marketing was simple—farmers sold their produce directly to consumers through cash or barter.
In modern times, agricultural products pass through multiple exchanges before reaching the consumer. There are three major marketing functions:
• assembling
• preparation for consumption
• distribution
Selling depends on demand, availability of storage, and market access. Products may be sold immediately, stored locally, or processed (cleaned, graded, packed). Sometimes processing is needed to preserve quality or meet consumer preference.
Farmers may sell in weekly village markets, neighboring mandis, or district-level wholesale markets.
Government Organizations in Agricultural Marketing
Major bodies include:
• Commission of Agricultural Costs and Prices
• Food Corporation of India
• Cotton Corporation of India
• Jute Corporation of India
• Commodity-specific boards for rubber, tea, coffee, tobacco, spices, vegetables
The Government of India has launched AGMARKET, which compiles mandi prices of grains, pulses, fruits, vegetables, meat, fish, rare cereals and more.
Importance of Agriculture Marketing
• Agricultural products are perishable—delayed selling causes loss.
• Prices fluctuate with weather and global supply.
• Farmers seek fair and stable prices.
• New market channels like direct-to-consumer are emerging.
Interests of Stakeholders in the Marketing System
Farmers: Want maximum price for their produce.
Manufacturers: Want best quality at lowest cost.
Traders/Retailers: Want reliable supply at competitive prices.
Consumers: Want high-quality products at low cost.
Functions of Agricultural Marketing
A. Exchange Functions: Buying, Selling, Storage
B. Physical Functions: Transportation, Processing, Standardization
C. Facilitating Functions: Financing, Risk Bearing, Market Intelligence
Agro-Business Dependence on Produce Characteristics
Quality: Differentiation builds brand preference.
Cost: Global sourcing helps reduce cost.
Non-seasonality: Industry requires stable supply.
Reliability: Manufacturers need consistent input quality.
Processing: Ease of processing reduces cost and improves efficiency.
AMIS – International Market Information System
The Agriculture Market Information System (AMIS) provides global price data, production statistics, utilization, trade, stocks, and short-term market outlook. Managed by the Global Food Market Information Group.
NIAM – National Institute of Agricultural Marketing
CCS NIAM (Jaipur), established in 1988, offers training, consultancy, and research in agricultural marketing. It operates under the Ministry of Agriculture and supports both Indian and Southeast Asian marketing professionals.
Agriculture Marketing Jobs
Roles include:
• media relations, press releases, communication
• developing statements, backgrounders, Q&A documents
• building brand identity (organic, quality-certified, etc.)
• creating educational/promotional industry materials