Agricultural marketing

Progress in India 
To improve the quality of agricultural products in India, grading and marking were 
introduced under an Act – The Agricultural Produce (Grading and Marking) Act, 1937.
The act authorizes the Central Government to frame rules relating to the fixing of grade 
standards and the procedure to be adopted to grade the agricultural commodities included 
in the schedule. The Act of 1937 was amended from time to time to widen its scope, so 
that a number of commodities may be included under the changed circumstances.
Initially, only 19 commodities were included for grading purposes; but now there are 153 
commodities in the schedule for which grade standards are available. The commodities 
included in the schedule are foodgrains, fruits and vegetables, dairy products, tobacco, 
coffee, oilseeds, edible oils, oilcakes, fruit products, cotton, sannhemp, edible nuts, 
jiggery, lac, spices and condiments, essential oils, honey, besan, suji and maida. 
The Agricultural Marketing Advisor to the Government of India (AMA) is the authority 
empowered to implement the provisions of the Act, and suggest suitable modifications.
The Central Agricultural Marketing Department (Directorate of Marketing and 
Inspection) maintains some staff for the inspection of the grading premises and the 
collection of the samples of graded products from different points in the marketing 
process. The collected samples are examined and analyzed either at the central Agmark 
laboratory or at other laboratories set up in different parts of the country to test whether 
the graded products conform to the standards of quality laid down in the Act. If the 
sample is below standard, the necessary legal action against the party is taken, and the 
graded product is removed from the market. The licence of the party, too, is cancelled. 
STORAGE: 
 
Meaning and Need: 
Storage is an important marketing function, which involves holding and preserving goods 
from the time they are produced until they are needed for consumption. Storage is an 
exercise of human foresight by means of which commodities are protected from 
deterioration, and surplus supplies in times of plenty are carried over to the season of 
scarcity. The storage function, therefore, adds the time utility to products. 

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Agriculture is characterized by relatively large and irregular seasonal and year – to – year 
fluctuations in production. The consumption of most farm products, on the other hand, is 
relatively stable. These conflicting behaviors of demand and supply make it necessary 
that large quantities of farm produce should be held for a considerable period of time. 
The storage function is as old as man himself, and is performed at all levels in the trade.
Producers hold a part of their output on the farm. Traders store it to take price advantage.
Processing plants hold a reserve stock of their raw materials to run their plants on a 
continuous basis. Retailers store various commodities to satisfy the consumers day – to – 
day needs. Consumers, too, store foodgrains, depending on their financial status. 
The storage of agricultural products is necessary for the following reasons: 
1. Agricultural products are seasonally produced, but are required for consumption 
throughout the year. The storage of goods, therefore, from the time of production 
to the time of consumption, ensures a continuous flow of goods in the market; 
2. Storage protects the quality of perishable and semi – perishable products from 
deterioration; 
3. Some of the goods, e.g., woolen garments, have a seasonal demand. To cope with 
this demand, production on a continuous basis and storage become necessary; 
4. It helps in the stabilization of prices by adjusting demand and supply; 
5. Storage is necessary for some period for the performance of other marketing 
functions. For example, the produce has to be stored till arrangements for its 
transportation are made, or during the process of buying and selling, or the 
weighment of the produce after sale, and during its processing by the processor; 
6. The storage of some farm commodities is necessary either for their ripening (e.g., 
banana, mango, etc.) or for improvement in their quality (e.g., rice, pickles, 
cheese, tobacco, etc.); and
7. Storage provides employment and income through price advantages. For 
example, middlemen store foodgrains by purchasing them at low prices in the 
peak season and sell them in the other seasons when prices are higher.