Rural marketing is the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.
Steps taken by government in developing rural markets :
(a) Setting up of regulated markets: Regulated markets have been set up to improve the marketing of agricultural produce. In this, there is a control of market committee on the sale of agricultural produce. As a result, the malpractices have come to an end in the mandis. Out of the 7600 mandis, about 7000 mandis are regulated. Now more than 70% of the produce is sold in the mandis.
(b) Storage facilities: Government had set up central warehousing corporation in 1957. The main objective of this is to run and construct godowns and warehouses for the storage of agricultural produce. For the same purpose, the State Government has also set up ‘state warehousing corporations’. Godowns have been established at mandy level and village level. In the beginning of the 10th plan, the storage capacity of all the agencies was 702 lakh tonnes.
(c) Grading and standardization: Agricultural Produce (grading and marketing) Act was implemented in 1937. Under this act, government has established grading stations for goods like flour, ghee, eggs, etc. AGMARK stamp of the department of agricultural marketing is marked on the graded goods. There is a wide market of AGMARK goods. These goods are sold at higher prices.
(d) Quality control: The Government has set up a central control quality laboratory at Nagpur. Eight other regional laboratories have also been established in various parts of the country. The main objective is to test the quality and purity of agricultural goods. In this way, quality control is being given due importance.