Aggregation Approach in Agricultural Marketing

The present study is focused on the problems of individual small agri-preneurs vis-à-vis group of agri-preneurs. It has also examined the problems of traders and agribusiness corporates in the marketing of agricultural produce and has tried to find out various mechanisms to improve the market access and linkages for small and marginal farmers. A comparison of individual farmers and members of farmers interest groups (FIGs) has revealed that group approach or aggregation approach enhances the bargaining power of the producers. Use of private mobile phones has improved access to market information and extension. Availability of better price information and understanding of markets have resulted in reduction of marketing costs and realization of better prices of their products. The major constraint being faced by traders and processors is on the procurement front since bulk purchasing is not permitted under the existing APMC Act (1964). Poor marketing infrastructure is another bottleneck being realized by all stakeholders. The study has suggested that more FIGs should be formed and efforts should be made to strengthen these groups which will increase the inclusiveness of small and marginal farmers. Proper and timely dissemination of information will help in making more informed decisions on enterprise diversification options. Policy should be liberalized in order to enhance the competitiveness of agricultural marketing.