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Class : 11
Unit : Economics


Give the meaning of agricultural marketing in Nepal. Explain the nature and problems of agriculture marketing in nepal.

Ans : Agriculture marketing involves on number of operation and processes of moving agricultural products from farm to final consumer. The problems of agriculture marketing in Nepal are explained below: i) Unorganized:- The agricultural marketing system in Nepal is not organized. The farmer produces small quality of food grains and sale from their household to fulfill their basic needs. Due to lack of organized market, the management system of price, quality control, measurement etc. are unsystematic. ii) Seasonal:- Agricultural production and marketing both are seasonal. Farmers don’t have storage facilities so they follow single cropping pattern. So the sale and purchase of agricultural commodity take place only in one season. iii) Pre-dominance of middleman:- Agricultural marketing in Nepal is pre-dominant by middle man. They are rich and can afford storage facilities. They visit doors steps of farmers and collect the product produced by farmers at low price. Again the same product is sold by middleman at very high price in the market. iv) Influence of Indian market:- There is long open border between Nepal and India. The Indian agro- products are low price and are of superior quality as compared to Nepalese agro product. This adversely affects the Nepalese agricultural marketing. v) Lack of transport and communication:- Farmers cannot carry their produced goods to the market place due to lack of transportation facilities. Similarly they are unaware about the actual price of the product because of lacking in communication system in Nepal. So they are compelled to sell their product to middle man. vi) Lack of storage facilities:- Lacking in a storage facility has compelled farmers to sell their product immediately after harvest. Generally price is very low during harvest period. They are bound to store their products in traditional method which destroyed their product by heat, rain, etc. vii) No grading and standardization:- Nepalese farmers producer the different type of products but they are not graded and standardized according to their quality standard. Farmers are unaware about the relative advantage of grading and standardization. So they cannot obtain higher price for their quality product. For example, cardamom is categorized according to its size 6 mm, 7mm, 8mm, and 8.5 mm. As the size of cardamom increases price also increases. viii) Defective weight and measures:- Most of the traders in rural areas do not use proper weight and measurement. They are using stone, bricks etc. in buying goods from farmers to exploit them. ix) Problem of adulteration:- Mixing of inferior products with superior quality product is a common practice among traders in rural areas of Nepal. Sant in food grains, water in milk etc. are some of the adulteration found in Nepal.
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