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”
Agriculture Sector in Pakistan
Essential of Good marketing
1. Quality of product
Quality 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 power
The seller shall have staying power so
that he may get reasonable income by
selling at fair price.
Agriculture Sector in Pakistan
Essential of Good marketing
3. Means of Transportation & communication
Advance means of communication &
transportation should exist. The cultivator
should have easy access to the market.
4. Marketing at convenient distances
Markets 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.
Agriculture Sector in Pakistan
Defects in Agriculture Marketing
1.
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.
Agriculture Sector in Pakistan
Defects in Agriculture Marketing
3. Old weights & measures
Traders in our markets use defective measures for
their benefit. Over weight & under weight are used
during buying & selling.
4. Bad quality of the products
Our products are of poorer quality. The poor
quality is due to use of inferior seeds, natural
calamities, defective harvesting etc.
Agriculture Sector in Pakistan
Defects in Agriculture Marketing
5. Lack of storage facility
The storage facilities in markets are inadequate;
seller can not store & wait for a higher price of the
product.
6. Existence of middleman
The middleman takes a big share of farmers
without doing anything. The farmers borrow the
money from them & sell their products at low
prices.
Agriculture Sector in Pakistan
Defects in Agriculture Marketing
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 Revenue
Our farmers have to pay land revenue after the
harvesting of crop, so it forces the farmers to sell
their produce at low price.
Agriculture Sector in Pakistan
Measures to improve the agriculture marketing
1. Market Advisory Committee
MAC 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 societies
Co-operative marketing societies should be set up
in villages & the farmers should be induced to
become the members of these societies.
Agriculture Sector in Pakistan
Measures to improve the Agriculture
Marketing
3. Availability of storage facility
The government should provide the loan to the
farmers for the construction of stores. The
government should also construct the stores.
3. Standard weights & measures
The inspectors should strictly check the weight &
measures used in the markets, so that unfair trade
practices could be swept away.
Agriculture Sector in Pakistan
Measures to improve the Agriculture
Marketing
5. Better transport facility
There 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.
Agriculture Sector in Pakistan
7.
Measures to improve the Agriculture
Marketing
Establishment of Organized markets
The old markets are getting congested so new
market should be established. These markets
should be built near the production centers.
8. System of credit
Credit facilities should be provided to the formers
for the purchase of inputs & agriculture
machineries. In this way they can increase their
productivity.
Agriculture Sector in Pakistan
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 system
In 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.
Agriculture Sector in Pakistan
Measures adopted by the Government
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. AMSL
The Agriculture Marketing & Storage Limited
(AMSL) was set up in 1981. It has done the useful
job in the stabilization of prices.
Agriculture Sector in Pakistan
Measures adopted by the Government
5. Price Support Policy
Price 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 intelligence
Government has announced daily rates of
produces in different markets through newspapers
& T.V. In this way the farmers remain aware about
current market situation.
Agriculture Sector in Pakistan
Measures adopted by the Government
7. Construction of Godown
The government has constructed many
godowns for the storage of agriculture
production.
8. Grading centers
The government has constructed
agricultural marketing & grading centers
at Khanpur, Sukkur, Hyderabad & Karachi.
Agriculture Sector in Pakistan
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 nonagriculture activities but they have a
significant role to play in the development
of agriculture.
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
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.
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
Similarly tractor drivers,
mechanics and those responsible
for ploughs making, thresher
operators and agricultural
implements mechanics do not
directly fall in the agriculture
sector.
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
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.
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
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”
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
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.
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
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 Pakistan
Non- 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 landowners 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).
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
Now a days a cultivator or a tenant gets
about 30 percent of his livelihood by
performing non-agriculture jobs. These nonagriculture jobs include threshing &
packaging with the help of agricultural
machinery. These jobs also include agroprocessing 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.
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
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 Sector in Pakistan
Non- Agriculture sector in Rural Economy
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.
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
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.
Agriculture Sector in Pakistan
Non- Agriculture sector in Rural Economy
1.
2.
3.
Conclusion
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.
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.
Electronic & print media can be used usefully &
effectively to reduce this gap & bring about change in
their attitude and culture.