Broad Classification:

1. Function of exchange

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2. Function of physical supply

3. Facilitating functions

I. Functions of Exchange:

Functions of exchange is a process of passing goods into the consumer hands. It includes buying, assembling and selling.

(a) Buying:

a. First step in the process of marketing.

(i) What to buy? (Product)

(ii) When and how to buy? (Time)

(iii) From whom and where to buy? (Source)

(iv) On what terms and conditions and prices?

(b) Assembling:

a. Done after goods have been purchased.

b. Involves creating and maintaining of stocks of goods

(c) Selling:

a. Right product available at right place

b. In right quantity

c. At right place

d. At right time

II. Functions of Physical Supply:

(a) Transportation Through which commodity shifted from area of production to the markets.


1. Helps to growth of industries

2. Increases demand for goods

(b) Storage and Warehousing: It involves holding and preserving goods, till they are needed for consumption.

Need of Storage:

Agricultural product are seasonal, but are required for whole year consumption.

Grain Storage Structure:

Small scale S. S.:

(a) PAU bin – Capacity 1.5 – 15 quintal

(b) PUSA bin

(c) Hapur Tekka

Large Scale S. S.:

(a) CAP (Cover and Plinth): by FCI.

(b) Ware house – by FCI, CWC, SWC

Ware Housing:

Are scientific storage structure specially constructed for the protection of quantity and quality of stored products.


1. Scientific storage

2. Financing

3. Price stabilization

4. Market intelligence

Ware House in India:

(a) National Co-operative Development and Ware Housing Board.

(b) Central Warehousing Corporation.

(c) State ware housing Corporation.

(d) Food Corporation of India.

Reasons for Poor Utilization:

1. Lack of knowledge

2. Location

3. Complicated and time consuming procedure for deposit and withdrawing produce.


Activity which changes the form of a commodity

Farm Products > Processing > usable form

India’s Position:

i. Primary processing

ii. 80% of value

iii. 12% food industry

iv. 33% in small scale tiny and cottage sectors.


Determination of the standards to be established for different commodities.


Sorting of the unlike lots of the produce into different lots according to the quality specifications.

Advantages of Marketing Function —

1. It can make inter functional comparison of marketing cost.

2. Inter agency comparison of the cost of marketing function.

3. Inter commodity comparison of cost.

Disadvantages —

1. We don’t know these functions are applied to specific business operations are not.

2. Numerous functions, so it is difficult to eliminate the unnecessary from necessary functions.

Marketing & Pricing of Agricultural Inputs and Outputs:

Marketing of Agricultural Inputs:

i. No scope for extension of arable land, so production only through in crop productivity per unit of land.

ii. Judicious and efficient use of agro-inputs like seed, fertilizer, pesticide, irrigation, farm machines and credit play major role.

iii. This inputs are complementary through each others.

iv. There interrelation is so strong that one of them can be viewed in isolation.

1. Seed:

1. In India 3 stage, Breeder, Foundation, Nuclear.

2. 28 ICAR Projects, 24 companies were producing seed.

3. 19 seed certification agencies and 86 seed testing labs.

4. Private producing hybrid seed.

5. Planting material from biotech (tissue culture)

6. Critical Agricultural Inputs extra care should needed.

7. State seed co-operative marketing federation state Agricultural Industrial Co. Providing seed to the farmer.

Problem —

i. Very cumbersome and difficult certification.

ii. In adequate and untimely available seed.

Future strategies —

1. Create efficient marketing and delivery system.

2. Encourage greater participation of private, co-operative and NGOs.

3. Encouraging, public private sector to increase infrastructure.

2. Fertilizer

It contributes 50 to 60% of Incremental Agricultural Production.

Average fertilizer consumption – 77 kg/hectare

80% consumed in rice, wheat, sugarcane and cotton.