Bring out the various problems of Agricultural Marketing System in India.

The agricultural marketing system is referred to as the marketing of agricultural products from the farm to the consumer.  The process includes several activities i.e. harvesting, grading, packing and packaging, transport, storage, processing, distribution, etc.

Agricultural Marketing System in India

There are four different types of marketing systems in India

  • The farmers sell their agriculture produce directly to the moneylenders.
  • The farmers sell their produce in the hat’s or village market that is organized weekly or monthly.
  • The farmers sell their agricultural produce to the wholesaler through brokers.
  • For obtaining better returns the farmers sell the agriculture output through co-operative marketing.


  • About 50% of the agricultural produce do not get fair prices due to not having a proper marketing system.
  • Crop damage occurs after the harvesting due to the unavailability of a proper storage facility.
  • Poverty is a big issue among farmers. Due to the lack of adequate money, the farmers fail to burden the input cost.
  • Poor transportation facilities block all channels of marketing.
  • Moneylenders buy agricultural produce with cheap prices from farmers and sell it with insanely hiked prices.
  • The system of mandis is also not suitable for farmers.
  • Most of the farmers practice subsistence farming.
  • The farmers depend on the moneylenders for loan facilities.
  • The exploitation of marginal farmers.

Way out

The problem of the agricultural marketing system in India should be improved immediately. The establishment of properly regulated markets, setting up proper storage facilities, abolishing the presence of a middleman, the facility of marketing information, proper policy for the price of agricultural outputs, improvement of transport facilities could definitely solve the problems.


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