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.