Sidra Jabeen

Economy of every state depends on three sectors i.e agriculture, industry and commerce. Pakistan is an agricultural state thus agriculture gains are of much importance than any other sector. Foreign exchange earned from merchandise exports is 45% of total exports. It engages 44% of labour force, provides livelihood to 65% of the population and contributes 21% share to GDP. Despite the fact that rural population constitutes about 65% of the total population yet it has no organization of its own, not even a chamber of agriculture to represent its views and protect interests.

 Agriculture contributes 21% of GDP and 52% of the total populace is getting its livelihood from it.  67.5% people are living in the rural areas of Pakistan.  Pakistan agriculture is facing multidimensional problems. Our major problem is agricultural marketing issues.

 In developing countries, due to high transport costs, lack of reliable price information, and inability to verify quality of the produce, farmers who produce cash crops, are often exploited by intermediaries.  This lowers farmer's profitability and reduces incentives to produce and control quality thereby leading to an adverse effect on both equity and efficiency.

The efficient operation of retail markets is influenced by physical environment, i.e. the market premises, access, stalls, storage and equipment. Irrespective of whether it is a street market, a shop, a covered market or a mobile facility, all aspects of the development and maintenance of the physical environment have cost implications. To maximize financial returns the facility should be: 1) Close to the customer 2) Designed according to the expected level of sales 3) Adapted to the best preservation of the product being sold.

 Agricultural marketing is the performance of business activity that direct the flow of agricultural goods and services from producer to consumer.  Agricultural marketing includes the operations of collecting the produce, grading storing, transporting, and selling to the ultimate consumer.  Agricultural goods are generally perishable and cannot be stored for a longer period of time.  The farmer has to sell his produce at an unfavorable place at an unfavorable time and on unfavorable terms.

In Pakistan there are four systems of marketing the surplus agricultural produce.  Sale in villages  Sale in markets  Sale in mandis  Cooperative marketing

 Low quality of produce  Costly transport facilities  Lack of market knowledge  Chain of middlemen  Multiplicity of charges  Lack of storage and warehousing facilities  Weights and measures

 Farm to market roads  Provision of information  Establishing systems and grades  Regulation regarding weights  Construction of warehouses and rural god owns  Setting up market organizations  Establishment of PASCO  Agricultural Marketing and Storage Limited (AMSL)  Encouragement of cooperative marketing  Regularized markets  Future Challenges

 Farmers consider marketing as being their major problem.  Farmers mostly face problems of poor prices, lack of transport and high post-harvest losses.  Successful marketing requires learning new skills, new techniques and new ways of obtaining information.  Agricultural marketing needs supportive policies and legal, institutional, macro-economic, infrastructural and bureaucratic environment.  It is essential to provide subsidized power supply and loans to the farmers.  There should be strong action against black marketers and hoarders.  At the village level there should be counseling centers for farmers.