Question:
Facilitative function of agricultural marketing refers to ____________.
Facilitative function of agricultural marketing refers to ____________.
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Facilitating functions do not directly involve physical handling or transfer of ownership, but they are essential for the smooth operation of the marketing system (e.g., providing capital through financing).
Updated On: Jul 24, 2026
- Processing
- Grading
- Buying
- Financing
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The Correct Option is D
Solution and Explanation
Step 1: Understanding the Concept:
Agricultural marketing functions are broadly categorized into three groups:
1. Physical functions: storage, transportation, processing.
2. Exchange functions: buying, selling.
3. Facilitative functions: standardization, financing, risk bearing, market intelligence.
Detailed Explanation:
Let us analyze the options based on this standard classification:
- Processing (A): A physical function, as it changes the physical form of the agricultural commodity.
- Buying (C): An exchange function, as it transfers the ownership of the commodity.
- Grading (B) and Financing (D): Both are classified as facilitating functions because they make the marketing system operate more smoothly.
- In standard agricultural marketing examinations (following Kohls and Uhl), Financing and Risk bearing are highlighted as the classic facilitative functions because they provide the capital and security necessary to run the marketing channel.
Step 2: Final Answer:
The facilitative function is Financing, which corresponds to Option (D).
Agricultural marketing functions are broadly categorized into three groups:
1. Physical functions: storage, transportation, processing.
2. Exchange functions: buying, selling.
3. Facilitative functions: standardization, financing, risk bearing, market intelligence.
Detailed Explanation:
Let us analyze the options based on this standard classification:
- Processing (A): A physical function, as it changes the physical form of the agricultural commodity.
- Buying (C): An exchange function, as it transfers the ownership of the commodity.
- Grading (B) and Financing (D): Both are classified as facilitating functions because they make the marketing system operate more smoothly.
- In standard agricultural marketing examinations (following Kohls and Uhl), Financing and Risk bearing are highlighted as the classic facilitative functions because they provide the capital and security necessary to run the marketing channel.
Step 2: Final Answer:
The facilitative function is Financing, which corresponds to Option (D).
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