7 Types of Agri Markets found in India

profile picture BookMyCrop Jun 17, 2022

Agribusiness is a type of business that involves handling, storing, distributing, marketing, and selling agriculture products. The goal of agribusiness is to make farming more efficient so that prices stay stable. It includes research, weather forecasting, farm planning, seed production, soil management, plant protection, machinery, harvesting, marketing, retailing, crop nutrient management, supply chain operations, storage, food processing, financing, and much more. Agribusiness is everything that goes on between planning a farm and putting food on the table.

About 17.5% of India's GDP comes from the agriculture industry. It is seen as the most important part of the Indian economy. Agriculture is one of the most important industries offering high-quality agriculture products online because it feeds and nourishes the country and provides essential raw materials for quite a few key industries. But the industry also has to deal with a number of problems because of the following:

  1. The business world is growing and changing quickly.
  2. The speed at which technology changes The effects of globalisation
  3. A place with a lot of competition
  4. The government and its roles change all the time.

At the moment, the agricultural sector is very important for business. It has changed from small-scale farming to commercial farming.

In India, only 14% of the food products are processed, and about 35% of the food is lost during packaging and shipping.

The most important types of Indian agricultural markets are:

  1. Primary or Local Markets:

    Primary markets, called Hatts or Shandies, happen once or twice a week near a group of villages. India has more than 22,000 places like this. Most farmers sell their crops and other products at these markets. More than half of all surplus that is sold is done so in these markets. Village Panchayats are in charge of running these markets and charge shop owners rent for the space they use. Most of the time, people haggle and bargain at these markets. In these markets, the village of Bania acts as a middle man.

  2. Secondary Markets:

    These markets are called "mandis" or "gungs" and are also called "wholesale" or "assembling" markets. About 4145 markets are like this. These markets offering agriculture products online are always there, and business is done there regularly throughout the year.

    The produce is handled in large quantities, and different services need to be done by people with specific skills. The markets have places for storing, moving, and banking and they are close to both roads and trains. In these markets, there are many people who act as middlemen.

  3. Terminal Markets:

    These markets move goods to consumers, final buyers, or places where they will be processed. You can find these kinds of markets in big cities or near ports. Their business is spread out over a state.

  4. Fairs:

    India's farmers sell a lot of their goods at religious festivals and pilgrimage sites where fairs are held. These fairs happen once a year and are put on by district officers, local groups, or private organisations. People from West Bengal, Bihar, Gujarat, Uttar Pradesh, Maharashtra, Orissa, as well as Rajasthan go to these fairs all the time. Since the organising fair is a traditional approach to selling agriculture products by farmers, they can also set up online stores where people can buy agriculture products online.

  5. Regulated Markets:

    These were set up by the government to check for fraud in the primary and secondary markets. The Government's marketing practices set the rules and regulations for these markets.

  6. Co-Operative Marketing:

    The way these markets work is based on the idea that people should work together. A cooperative marketing society sends farm products straight to consumers. This cuts out a huge number of middlemen and middlewomen.

  7. State Trading:

    In India, state trading in agricultural goods has become an important part of the marketing of agricultural goods. At harvest time, government agencies like the Food Corporation of India set up their own centres in and around villages and mandis to buy food from farmers at fixed prices.

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