How is Agri Market classified?

Posted by bookmycrop on June 17th, 2022

Horticultural produce, food grain, plantation crops, commercial crops, as well as semi-processed items are all included in the realm of the agri market. There are a lot of agriculture companies in Indiathat have started their own agri markets and are successful in running them such as BookMyCorp, DeHaat, etc.

Economists have classified markets in various ways, depending on factors like how often they occur, the goods sold, the size of the deals and the kind of marketing tasks carried out.

(a)  On the basis of the regularity with which they are held, markets can be categorised into biweekly markets, weekly markets, daily markets, as well as monthly markets.

(b)  Based on the sorts of products traded, we may describe them as fish markets, cotton markets, fruit and vegetable markets, grain markets etc.

(c)  Spot markets and forward markets are two possible categorizations based on the nature of the transactions taking place.

(d)  Agricultural markets can be broken down into three distinct types based on the types of marketing activities they engage in assembling, wholesale, and distribution.

Agri Markets are classified as follows based on the location:

     I.        Local Markets:

There is a small, localised market in this town where farmers and other market participants or consumers can buy and sell agricultural goods. To sell their wares, residents of that town travel to larger commercial centres.

In the neighbourhood of rural communities, you can find the local market, also called the growers' market. They are usually situated in smaller towns and easily accessible areas, where farmers from the surrounding countryside can bring their goods to sale.

Functions of Local Markets:

-       The local market's main purpose is to centralise the distribution of agricultural goods.

-       Markets like these are useful because they bring together buyers and sellers in one central location, which saves time and effort for everyone involved. This is beneficial to the farmers since it eliminates the need for them to worry about transporting their goods to the cities and the associated costs.

-       The producers in the villages can count on getting paid in cash right away at markets like these.

   II.        Primary Markets:

Shandies or Haats, as they are known in the area, are the primary markets. Typically, they occur once weekly, on the same day each week. Events like these typically take place in the open, such as in a grassy field or in a tree-lined road at a town's central location. These marketplaces are typically located in agricultural hubs, where goods from other regions can be transported for sale.

Agricultural products are purchased by middlemen who then sell them on to wholesale markets. In addition to agricultural goods, such as hannovers, threshers, as well as winnovers, these marketplaces also sell a variety of other necessities for rural residents, including pulses, salt, jaggery, oil, fruits, vegetables, spices, textiles, hosiery items, and jewellery made from inexpensive metal. With the introduction of the online agri market, buying and selling agricultural products have become easy.

Functions of Primary Markets:

-       These marketplaces act as hubs for the distribution of regional goods and services, with the primary focus being on the local food they sell.

 III.        Secondary Markets:

These marketplaces can be found in various cities and in district headquarters. Both the name "Mandi" and "Gunj" are used to refer to them. These wholesale markets operate on a regular basis and provide a consistent setting for business. All transactions are conducted in bulk quantities. Massive quantities of goods from other marketplaces are shipped to these ones.

Grading, packaging, warehousing, loading, transportation, telephone, and banking services are all available at these marketplaces. Central Markets provide the infrastructure necessary to support large-scale transactions. You may find a number of agri companies in India but BookMyCrop is one of the leading online agritech companies in India that brings Indian buyers and farmers together on a platform for the agro trade.

IV.        Terminal Markets:

In a terminal market, the product is ultimately disposed of to the consumer, processed, or assembled for export. The vendors in these markets have their act together and employ cutting-edge promotional strategies. Buyers and sellers from various locations or countries sometimes get together in this market to make adjustments to supply and demand.

Concentration, dispersion, and equalisation are all components of a well-rounded marketing strategy. Facilities like transportation, grading, packing, information, loading, weighing, etc., necessary to increase trading volume, are accessible in these markets, which handle big-scale business with a huge number of buyers and sellers. Market hubs are concentrated in populous areas such as Bangalore, Mumbai, Kolkata, Delhi, Chennai, etc.