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.
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| 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.
