How to Sell Agricultural Raw Products On Time to Avoid Economical Loss

1. Introduction: How to Sell Agricultural Raw Products On Time to Avoid Economical Loss

Agriculture raw products/materials are perishable in nature. Vegetables such as tomato, potato, leafy vegetables, and ripe fruits such as mango, banana, papaya (highly perishable fruit) and Lychee are perishable. Proper marketing and selling in right time is very important to avoid economical loss.

Highly Perishable Fruits/Vegetables: Papaya, local varieties of tomato, banana etc.

Medium Perishable Fruit/Vegetables: Hybrid tomato, Apple, Mango, jack fruit etc.

Late Perishable: Onion, Garlic, Potato etc.

Success of a farmer does not depend only on cultivation and production. Proper marketing strategy and marketing is required.

Agriculture has 2 different fields to work on:

(1). General Agricultural Practices: Cultivation and production of field (agronomical) and horticultural crops.

(2). Agribusiness: Marketing of agricultural products (raw and processed products and other activities).

2. Reasons or Problems in Selling

2.1 Cultivation of Same Crop

It is known as mono-culture crop pattern. Cultivation of same crop by the farmers of same area decreases market rate and marketing of the product. Tonnes of raw products are unsold and abandoned to rot.

2.2 Low market Price

Market price of agricultural raw products is always lower. Customer always bargain over price. They want to buy every agricultural product at lowest possible price. For example- There are two products, first is a pair of expensive shoes which costs around 5000 INR (around 70 US Dollar), and second is 1 kg tomato which cost around 20 INR (around 0.30 US Dollar). In these situations, buyer will never bargain over the price of a shoe pair but they will try to buy 1 kg tomato between 1 – 15 INR.

In this case the overall invest of a farmer goes higher than the selling price. Hence, he face problem in selling.

2.3 Post harvest Disease in storage

Post harvest diseases deteriorate the quality of raw products. Decreasing in quality automatically decreases the market price of the products.

3. Problem in Selling Different Agricultural Products

3.1 Problem in Selling Tomato

(a). Perishable in nature: Local varieties of tomato start to rot few days after harvesting. Selling becomes difficult if it is cultivated in large scale.

(b). Monoculture: Monoculture crop pattern means more production, and more production means decrease in market demand.

(c). High production: Same as monoculture crop cultivation.

(d). Low market price: It is a big problem for farm owners and farmers. It depends on all factors described earlier.

3.2 Problem in Selling Potato

(a). Perishable nature

(b). Variety preference: Red colour variety is preferred over white colour varieties.

3.3 Problem in Selling Cole Crops

High production due to monoculture.

4. How to Sell Different Raw Products

4.1 Contract Farming

What is contract farming?– Contract farming is a type of low risk farming or agribusiness in which a farmer or crop producer contract with contractor. Contractor can be whole seller or a company e.g., contractor in poultry farming. Contractors purchase raw product from farmers for a fixed price. Farmers get paid for their whole products. Farmers have to contract with whole sellers or a company.

ALSO READ: Contract Based Agribusiness: Contract Farming

4.2 Knowledge of Market i. e., market demand

Farmers have to adopt farming practice of a particular crop according to local demand. Although, mono-crop culture in a particular area can decrease the economic value of crop.

In this situation early crop production should be adopted.

4.3 Formation of Cooperative Society

Cooperative societies are a well known organization of group of farmers. Cooperative societies include following members:

(a). President

(a) Members

President is selected among the members (farmers) of society. A cooperative society has all necessary resources for their members e.g., a vehicle for transportation.

Cultivation is done and production is taken by farmers in their own field. Marketing and selling is done by the organization. Finally, amount is shared among members.

Active participation from each farmer is needed.

4.4 Selling products for lower price than others

One solution of the problem is selling own products for lower price than others. Although, it is a loss but big loss can be avoided in future.

The low price set by the farmer should a little bit lower than the other farmers and higher than the invested amount.

4.5 Search for Market and Make a List of Potential Buyers

It is hard work to do. Search for market

Make a list of potential buyers and places before starting cultivation. List of potential buyers:

1. Vegetarian hotels.
2. Housing colonies.
3. Whole sellers.
4. School and college hostels.

Contract with a hotel or school and college hostel is a better option for small growers.

Problems described above look simple. But, remember production is easy not marketing.

5. Explanation of Post Related Words

5.1 Raw Products

Agricultural raw products are unprocessed raw material stored just after harvesting.

5.2 Perishable Vegetables and Fruits

Perishable vegetables deteriorate very fast. Shelf life of these products is very short.

6. Frequently Asked Questions

Question 01. Is registration necessary for cooperative society?

Answer: It is up to members of cooperative society. Registered cooperative societies get benefits of governmental schemes.

Question 02. What to do when there is no option of selling raw products remain?

Answer: This situation appears due to poor planing. Please do extra study before crop cultivation. Make contact with buyers individually.

Question 03. What are the options of avoiding post harvest loss for a long period?

Answer: Post harvest loss e.g., rotting can be avoided by storing products in cold storage.

-BY SHASYADHARA AGRICULTURE


(1). Economic Importance of Relay Cropping (Utera/Paira Kheti): List of Crops and Crop Model.

(2). What Is CHAMPS (चैंप्स) And How To Apply Manually? Step By Step Procedure To Fill Application Form.

(3). Drip Irrigation System Installation: Governmental Scheme and Subsidy

(4). Mango Flower and Fruit Drop: Reason and Control Measures.




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