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Problems that hinder
the mechanism of agricultural marketing are:
•Lack of infrastructural facilities like proper road, railways, storage, transportation, etc.
•Inadequate credit facilities and banking system due to which private unorganised money lenders still predominates the agricultural market.
•Presence of middlemen
•Faulty weighing and measure of farm produce and manipulation of accounts of the farmers by the money lenders and traders.
•Lack of knowledge and information on prevailing market prices lead to the farmers to sell their crops at a much lower.
Obstacles that hinder the mechanism of agricultural marketing are as follows :
(i) More middlemen: There is a large number of middlemen between the farmers and the final consumers. Therefore, the middlemen get the maximum benefit but the farmers get the minimum.
(ii) Lack of storage facilities: There is a lack of good storage facilities for the farmers to keep their produce safe. The storage facilities avail¬able in villages are very poor. About 10% to 20% of the produce is destroyed by rats.
(iii) Bad condition of rural transport: The transport conditions in rural areas are very bad. Most
of the rural roads are not metalled. These are
useless in rainy seasons. Even the rich farmers are not interested to carry their surplus produce to the mandis.
(iv) Lack of knowledge of the market: The farmers don’t have the knowledge of the demand and supply of their products in the market. They depend upon the information supplied by the intermediaries. This information is always in favor of mandis or the market. As a result, the farmers cannot get a reasonable price for their produce.
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