Question

Given below are two statements:
Statement (I): Storage is one of the functions of agricultural marketing.
Statement (II): The storage function meets the time utility of the customer.
In light of the above statements, choose the most appropriate answer from the options given below.

• A. Both Statement (I) and Statement (II) are true.
• B. Both Statement (I) and Statement (II) are false.
• C. Statement (I) is true but Statement (II) is false.
• D. Statement (I) is false but Statement (II) is true.

Hint:

Remember the classic marketing utility pairings:
- Storage \(\rightarrow\) Time Utility.
- Transport \(\rightarrow\) Place Utility.
- Processing \(\rightarrow\) Form Utility.
- Trade/Sale \(\rightarrow\) Possession Utility.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
This question tests core agricultural marketing concepts, focusing on physical marketing functions and the creation of economic utility.

Step 3: Detailed Explanation:
Let us evaluate each statement individually:
- Statement (I):
Agricultural marketing includes three main groups of functions: exchange functions (buying and selling), physical functions (transportation, processing, and storage), and facilitating functions (grading, standardization, and financing).
Storage is a critical physical function because agricultural production is highly seasonal, whereas consumption is continuous throughout the year.
Therefore, Statement (I) is correct.
- Statement (II):
Economic utility is divided into four main types: form utility (created by processing), place utility (created by transportation), time utility (created by storage), and possession utility (created by buying/selling).
By storing surplus produce during harvest periods and releasing it into the market during off-season periods, storage ensures that products are available when consumers need them.
This satisfies the consumer's time-sensitive demand and creates time utility.
Therefore, Statement (II) is correct.
Since both Statement (I) and Statement (II) are correct, the correct option is (A).

Step 4: Final Answer:
Both Statement (I) and Statement (II) are true.
Therefore, the correct choice is Option (A).