Agricultural marketing

Factors affecting the cost of transportation: 
Other things remaining the same, the transportation cost of a commodity depends on the 
following factors: 
1. Distance: With an increase in the distance over which a commodity is 
transported, the total transportation cost increases; but the transportation cost per 
unit quantity of the produce decreases after a certain distance. 
2. Quantity of the Product: The transportation cost per unit quantity of a 
commodity decreases with the increase in the volume. It will be less if a full 
truckload is available than it would be if only a few quintals are transported. 
3. Mode of Transportation: The cost of transportation varies with the mode of 
transportation, e.g., bullock cart, tractor, truck, railway etc. 
4. Condition of Road: The cost of transportation is less where metalled or tar roads 
have been constructed than in places where graveled roads exist or where there 
are no roads at all. 
5. Nature of Products: The cost of transportation per unit is higher for the products 
having the following characters: 
a) Perishability (e.g., Vegetables); 
b) Bulkinesss (e.g., straw); 
c) Fragility (e.g. tomatoes); 
d) Inflammability (e.g., Petrol); 
e) Requirement of a special type of facility (for example, for livestock and milk). 
6. Availability of Return Journey consignment: If goods are also available for 
transportation when a truck is to return to its starting place, the per unit cost of 
transportation is less. 
7. Risk Associated: The transportation cost is less if the produce is transported at 
the owner’s/sender’s risk than when the risk is on the agency transporting the 
produce. 
 
Problems in Transportation of Agricultural Commodities:

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The problems in the transportation of agricultural commodities are very serious because 
of the special factors associated with them; for example, the perishability of the produce, 
its bulkiness, the small quantity in which it is available, and a large number of suppliers 
and purchasers. The following are some of the important problems arising out of the 
transportation of agricultural commodities: 
1. The means of transportation used are slow moving; 
2. There are more losses/damages in transportation because of the use of poor 
packaging material, overloading of the produce and poor handling, specially of 
fruits and vegetables, at the time of loading and unloading; 
3. The transportation cost per 100 rupees worth of the farm produce is higher than 
that for other goods. This is so because of its bulky character and the prevailing 
practice of fixing charges on the basis of weight or volume rather than on the 
basis of its value; 
4. There is lack of co-ordination between different transportation agencies, e.g., the 
railways and truck companies. Some of the places are not connected by railway.
The produce is often transported for a part of the distance by rail and a part by 
trucks or other means of transportation.
5. The multi- guage system of railways was also a serious problem in transportation 
of goods by railways. However, now the country is moving towards a uni- guage 
system which augurs well for marketing of farm products.