The India Government has taken various steps to improve agricultural marketing by regulating markets, infrastructure development such as building cold storage facilities, warehouses, roads, railways and Co-operative agricultural marketing societies and Minimum support price policy etc. Despite the measures taken by the government to improve the agricultural marketing, private players like money lenders, intermediaries, politicians and rich farmers still dominate the agricultural markets. The following are some of the other obstacles that hinder the mechanism of agricultural marketing:
Farmers are vulnerable to defective weighing techniques and misappropriation of accounts. Farmers are often ill informed about market prices and market conditions. Being ignorant, farmers are forced to sell their product at lower prices.
The farmers lack access to proper storage facilities to store their produce for future sell at better prices.
The farmers cannot avail agricultural credit, leading to their exploitation by the moneylenders .