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 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 quantity 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 et al., the chain of intermediaries through whom the various foodgrains pass from producers to  consumers constitutes their marketing channels. Kohls and Uhl have defined marketing  channel as alternative routes of product flows from producers to consumers. 

There are two main routes through which agricultural commodities reach the consumers:

 Direct Route: Sometimes, agricultural commodities directly pass from producers to consumers. There is a complete absence of middlemen or intermediaries. But it is only a very small proportion of the agricultural commodities which moves directly from producers to consumers.

Indirect Route: Agricultural commodities generally move from producers to consumers through intermediaries or middlemen. The number of intermediaries may vary from one to many. In the modern era of specialized production, both the horizontal and vertical distance between the producer and the consumer has increased, resulting in a reduction of direct sales. 

There are several factors that can affect the length of marketing channels, including:

The length of a marketing channel in agriculture refers to the number of intermediaries involved in the distribution of agricultural products from producers to consumers.

Product perishability: Perishable products, such as fresh fruits and vegetables, require a shorter marketing channel to minimize the time between harvest and consumption.

Product value: High-value products, such as specialty crops or organic produce, may require a shorter marketing channel to maintain product quality and avoid price erosion.

Market demand: Products that have a high demand may require a shorter marketing channel to ensure timely delivery to consumers.

Transportation and logistics: The availability and cost of transportation can impact the length of marketing channels, as longer distances or difficult logistics can require more intermediaries to handle distribution.

Market access: The accessibility of markets, including local, regional, and international markets, can affect the length of marketing channels.

Producer preferences: Some farmers may prefer to sell their products through shorter marketing channels, such as direct-to-consumer sales, while others may prefer to use longer marketing channels, such as wholesale or export channels.

Marketing Channels for Cereals

Marketing Channels for Fruits and Vegetable 

Innovative Marketing Channels (Direct Marketing) :

It has been realized that the marketing channel for farm products which are highly perishable (fruits, vegetables and flowers) should be as short as possible. Perishable farm produce should move quickly from farmers to consumers. If farmers directly sell their produce to the consumers, it will not only save losses but also increase farmer's share in the price paid by the consumers.

Direct marketing by the farmers is being encouraged as an alternative channel. Some examples of these channels are given below: 

(i) Apni Mandi / Kisan Mandi :

An innovative concept of 'Apni Mandi' has been introduced in some states. Apni

Mandi is also called 'Kisan Mandi', as it is different from the traditional mandi or market yard, where the produce moves to the buyer through either a commission agent or trader. In Apni Mandi there is a direct contact between the farmer producer and the buyer who is generally the consumer. This system does away with the middlemen.

The main objectives of popularizing the concept of Apni Mandi are:

(i)               better marketing of agricultural produce especially of fruits and vegetables;

(ii)              ensuring direct contact of the producer-farmers and the consumers and thereby enhancing the distributional efficiency of the marketing system;

(iii)             increasing the profitability of agricultural crops for the producers by minimization of marketing costs and the margin of the middlemen;

(iv)            ensuring the availability of fresh fruits and vegetables and other farm produce at reasonable prices to the consumers;

(v)              removing social inhibitions among the farmers for retail sale of their produce;

(vi)            encouraging additional employment to the producers and thereby enhancing their incomes;

(vii)           promoting by inviting the farmers of other states to sell the produce grown by them directly to the consumers in Apni Mandis of other states. 

(viii)         providing business techniques to the farmers so that in the long-run they may adopt this practice for other crops and enterprises too. 

(ii) Hadaspar Vegetable Market

Hadaspar vegetable market is a model market for direct marketing of vegetables in Pune city. This sub-market yard is situated nine kms away from Pune city. This belongs to the Pune Municipal Corporation and the fee for using the space in the market is collected by the municipal corporation from the farmers. This is one of the ideal markets in the country for marketing of vegetables. In this market there are no commission agents/middlemen. The market has modern weighing machines for weighing the produce. Buyers purchase vegetables in lots of 100 kgs. or 100 numbers. The produce is weighed in the presence of licensed weighmen of the market committee and sale bill is prepared. The purchasers make payment of the value of produce directly to the farmer. 

(iii) Rythu Bazars

Rithu bazaars have been established in the major cities of Andhra Pradesh state with the prime objective to provide direct link between farmers and consumers in the marketing activity of fruits, vegetables and other essential food items. Both producers and consumers are benefited from Rythu Bazars as producer's share in the consumers rupee is more by 15 to 40 per cent and consumer's get fresh vegetables, fruits and food items at 20 to 35 per cent less prices than the prevailing prices in nearby markets. 

(iii) Mother Dairy Booths : 

Mother Dairy booths also offer fruits and vegetables, packaged snacks, and other daily essentials. Many of these booths also have the facility of milk dispensers, where customers can refill their milk containers at a reasonable cost.

Mother Dairy, basically handling milk in Delhi, was asked to try its hand in retail vegetable marketing by direct purchasing vegetables from the farmers, moving them in specially built vehicles, storing them in air conditioned godowns and distribute them to the consumers through its retail outlets in 1989 after the notorious onion and potato price crisis.

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