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reen World Foundation

Green World Foundation is run by a group of Educated, Professionals who are very dedicated to bring change in Agriculture and other sector...

 

Agriculture

Market Linkage

What are market linkages?

In order to make any effective interventions in a marketing system it is necessary to define the types of marketing channels, their linkages and functions. The term “market linkages” is often referred to in the literature on rural development. The term linkage obviously implies a physical connection between the producer and the ultimate consumer. Linkages also involve financial transactions - the selling and buying of goods - and can be broadly defined in four different ways:

  • By the form of financial transactions or type of intermediaries who undertake the transactions;
  • By the channels through which transactions occur and the type of facilities used for transactions;
  • By how they are linked together by transport and communications networks;
  • By the spatial distribution of transactions - where they occur and whether this forms a pattern.

The market linkage model of social enterprise facilitates trade relationships between the target population or “clients,” small producers, local firms and cooperatives, and the external market. The social enterprise functions as a broker connecting buyers to producers and vice versa, and charging fees for this service. Selling market information and research services is a second type of business common in the market linkage model. Unlike the market intermediary model, this type of social enterprise does not sell or market clients' products; rather it connects clients to markets. Types of linkage can be categorized in various ways:

  • Farmer to domestic trade
  • Farmer to retailer
  • Linkages through a leading farmer
  • Linkages through cooperatives
  • Farmer to agro-processor
  • Farmer to exporter
  • Contract farming

Purpose of facilitating market linkages

It is important to understand what the market linkages are intended to achieve. They are meant to facilitate the flow of produce between the different levels of the marketing system. The input to the process is the agricultural production (the supply) and the output is the consumption of that produce by consumers (the demand). Thus, the marketing process needs to be undertaken as efficiently as possible, at the lowest cost and with the minimum of losses occurring at each stage.


The Green World Foundation will allow the farmers and buyers to register online on its website for their supply and demand of the produce. This will enable farmers to link directly with the customers, vendors, companies, organisations and abroad buyers.

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Last Update : October 2018
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