Explain the factors responsible for inefficiency of agri-produce marketing. How does e-commerce help to reduce inefficiency of agri-produce marketing? (150 words)

Agricultural marketing is inefficient when farmers receive a low share of consumer value despite high retail prices.

- Fragmented production, weak storage and poor rural logistics. - Multiple intermediaries, information asymmetry and distressed sale after harvest. - Restricted market access, grading gaps, opaque weighing and limited competition. - Small lots, inadequate finance and perishability reduce bargaining power.

Platforms such as e-NAM can widen buyer discovery, enable transparent bids, standardise assaying and permit digital payments. Online aggregation through FPOs reduces transaction costs; demand data can improve crop planning, while warehouse-linked sales defer distress disposal. Delivery networks and cold-chain platforms can connect producers to urban and institutional buyers.

Connectivity, trust, quality certification, platform fees and logistics remain barriers. Interoperability, FPO aggregation, local collection centres and grievance redress are vital.

economy; agriculture; agricultural policy; food security