Studies on Marketing Efficiency of Agricultural Products in India: A Critical Evaluation
This paper attempts to make a critical evaluation of the studies made on marketing efficiency of agricultural products in India. This study highlights the limitations of the studies on marketing efficiency of agricultural products in India and makes an outline for further research on this topic. In most of these studies two distinct approaches have been adopted: (1) an analysis of marketing margin at various stages of movement of a farm product from producers to the final consumers, and (2) an analysis of the functioning of the market using structure – conduct – performance framework. Modern marketing system is often based on complex multistage framework. The study concludes that efficiency of the agricultural markets cannot be judged solely by the structure conduct performance framework (correlation coefficient and cointegration analysis) or by the marketing margin analysis. It needs to be backed up some additional evidences of competitive conditions like low inter-market price differentials, possibility of inter-market trade etc. For more dependable and uncontroversial assessment of the functioning of market both the methods must be used simultaneously.