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    PakAgriFarming is commited to high standards in extension of agriculture in Pakistan through simple and factual information and topics related to the hottest issues in Pakistan Agriculture.

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PakAgriFarming

Wednesday, January 16, 2013

Agriculture Marketing Problems in Pakistan and their possible Solutions

Posted by Shakil Shaukat On Wednesday, January 16, 2013

Agriculture marketing is a discipline of intensive interest and research. This field directly relates agriculture and economics and is most important in terms of farm resources, inputs and outputs of growing crops and marketing them. The structure of agricultural markets is very traditional and has many flaws, which can not be overlooked. In this article I will present an account of some of the worst problems in agriculture marketing of Pakistan and at the same time suggesting some possible solutions.
Wheat Trucks reaching Market

Problems of Agriculture Marketing System in Pakistan

1. 40% of agricultural produce is wasted in marketing.
2. Damages during picking, harvesting and poor practices.
3. No staying power: Low margins, seasonality and high perishability being the distinct features of this industry the access to seed capital and working capital is not easy.
4. No storage facilities
5. Poor transport and communication facilities
6. No grading, packing standards
    a) Prevailing packaging system lacks requisite quality and shelf life.
    b) Lack of knowledge of quality parameters and standards
7. Multiplicity of laws and regulatory authorities affect the growth of industry.
8. Very high difference in price between the farmers’ realization and consumer even for the fresh produce.  In processed food the high price of raw materials, excessive spoilage, inefficient and costly transportation, high cost of finance due to high taxes and duties leads to low demand of processed foods.
8. Impediment in the flow of credit from financial institutions to the food processing  industry due to the improper understanding of this sector to attain the required  level of imparting skill.
9. Pakistani brands of processed food are yet to be established in the international market.
10. Competition with imported goods in the wake of liberalization of world trade.

LACK OF ORGANIZED MARKETING

a) The marketing facilities for agricultural products in Pakistan are still far from satisfactory level.
b) Our cultivators cannot get just prices for their produce due to defective marketing organization.
c) Moreover the chain of middlemen between the producers and ultimate consumers take a heavy share of their produce.
d) Lack of participation by people, local bodies, NGOs farmers' organization and industrial association.

Possible Solutions/ Recommendations

1. Trainings of the farmers about marketing of their produce.
2. Access to inputs should be made possible to maximize mechanization.
3. Agro-processing technologies should be introduced which help farmers to get maximum production and hence more benefit.
4. Marketing information system should be efficient and fair to all farmers.
5. Credit programs should be farmer friendly and easily accessible.
6. Marketing linkages should be strong between market functionaries and farmer community.
7. Holistic approach: a combination of all possible approaches should be applied to maximize profit at the farmer level.