Question

Given below are two statements, one is labelled as Assertion (A) and other labelled as Reason (R). 
• [Assertion (A):] The efficiency of agricultural marketing is considered to be low. 
• [Reason (R):] There are a large number of intermediaries involved in the marketing of agricultural commodities. 
In light of the above statements, choose the correct answer from the options given below. 
 

• A. Both (A) and (R) are true and (R) is the correct explanation of (A).
• B. Both (A) and (R) are true but (R) is NOT the correct explanation of (A).
• C. (A) is true but (R) is false.
• D. (A) is false but (R) is true.

Hint:

To improve agricultural marketing efficiency, governments promote reforms like direct marketing (e.g., Apni Mandi, Rythu Bazar) and electronic trading platforms (like e-NAM).
These reforms reduce the number of intermediaries, allowing farmers to capture a larger share of the consumer price.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Agricultural marketing refers to the services involved in moving agricultural products from the farm to the consumer.
Marketing efficiency measures how effectively this process moves goods while minimizing costs and preserving quality.

Step 2: Detailed Explanation:
Let us analyze the Assertion and Reason statements:
- Assertion (A) is true: In developing economies like India, agricultural marketing efficiency is often low.
This inefficiency is reflected in high marketing margins, significant post-harvest losses, and a low share of the consumer price reaching the farmer.
- Reason (R) is true: A major cause of this low efficiency is the long, complex supply chain, which contains a large number of intermediaries (such as village traders, commission agents, wholesalers, and retailers).
Each intermediary adds costs, margins, and transport delays to the product without adding significant value.
This long chain increases the price paid by consumers while reducing the price received by farmers, directly lowering overall marketing efficiency.
- Evaluating the connection: Because the presence of many intermediaries (Reason) is a primary cause of low agricultural marketing efficiency (Assertion), the Reason is the correct explanation of the Assertion.

Step 3: Final Answer:
Both (A) and (R) are true, and (R) is the correct explanation of (A), matching Option (A).