For a country like India which is constantly trying hard to boost the agriculture sector, it is important to recognize the space where the real power lies. If we observe closely, we can figure out that the real power lies in the Indian agricultural market. It has the potential to transform the agricultural domain. Here, we will discuss the types of agricultural markets in India.
In India, agricultural markets are basically segmented according to the demand and supply chain including geographical conditions, distribution structure, and various other factors.
These markets serve the local needs. Usually, they are situated in nearby towns where the farmer can easily sell their produce. Since a majority of farmers in our country are economically weak, it is difficult for them to transport their goods to bigger markets far from home due to a lack of money. Also, they don’t have proper facilities for storage and transport, etc. Therefore, they have to resort to prospective buyers around them even if that means selling it at a cheaper rate.
District Level Markets
These are the markets where huge quantities of commodities are gathered. Mainly, the buyers who purchase the agricultural produce from the farmers in local markets tend to transport the produce to the district-level markets. The processing of agricultural produce/commodities is mainly done in the district-level markets. Eventually, they are transported to the regional markets. However, some quantities are sold directly to the consumer markets as well.
These are central markets where commodities assembled from local and regional markets are bought in huge quantities. Regional markets have top-notch grading, processing, and storage facilities. After going through all the procedures, these commodities are transported to different parts of the country. At times, even exports are done from regional markets.
After assembling commodities in large quantities in the local and regional markets, the next step is to transport them across the country. Here, the wholesale markets come into the picture. It is noteworthy that the commission agents play a crucial role in this field. They purchase these commodities in huge quantities and sell them to retailers. Although these markets aren’t as large as the regional ones, they are adequate to meet the needs of retailers.
Retail markets are those markets where commodities are sold to the end consumers. These are present almost everywhere, be it metros, tier 2, or tier 3 cities. Even villages and small towns have the same retail structure. There’s no need to go too far, just look at the Kirana shops and the other retail shops in your locality. All these together constitute a retail market.
Apart from the above mentioned markets, sea-board markets are also an essential part of India’s vast agricultural marketing channel. Most of these markets are located near ports, where exporters purchase agriproducts/commodities.
By now, you must have gotten an idea about India’s different agricultural markets, but we can’t forget the people who are involved in this marketing structure. It is important to acknowledge that farmers, suppliers, commission agents (aadhatiyas) are all important players in this vast domain. Thanks to them, this chain functions smoothly. Their dedicated efforts and hard work are the reason behind the success of agricultural markets or mandis in India.
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