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Give the prices recorded by market Information Service

Give the prices recorded by market Information Service.

Answers

Martin
Farm-gate prices: These are prices that farmers receive after selling their produce at farm level before having to incur marketing costs to take the produce to the market. If the farmer incurs some costs to transport the produce to the assembly market or any other market for that matter, then the farmer will have to deduct all the marketing costs incurred from the total sales proceeds. The net of this becomes the farmgate price. Farm gate prices are different for every farmer and so there is some difficulty in collecting them. Difficulty in the sense that you find some farmers living by a major road, which makes it easy for the trader to visit them. Some of them may produce very large quantities of a particular commodity. The farm gate price this farmer receives will obviously be higher than those received by an isolated farmer producing small quantities.

Assembly market prices:

Assembly markets can best be described as places where farmers come together to meet with traders. At these markets traders buy produce from the farmers and then send it to urban wholesale markets or, occasionally, to retail markets or processors. Knowledge of the prices at which traders buy is often the most useful for farmers because the prices refer to a location relatively close to their farms and because they do not have to make difficult calculations to translate market prices into farm-gate prices.

Wholesale buying prices:

Wholesale marketing practices vary widely. Below are some of the basic methods of operation. Within each of these methods there are numerous variations in actual trading practices.
- Produce is sold by a farmer or trader at an agreed price to wholesaler who is permanently based in the market. He or she then sells the produce (perhaps mixed with that of other farmers) to retailers, occasionally to consumers and sometimes to sub-wholesalers who will, in turn, supply retailers;
-Produce is consigned by a farmer or trader to a wholesale agent in the market or perhaps to the organization which owns or operates the market. The agent or market operator then auctions the produce to the highest bidder.
As can perhaps be seen from the above descriptions, wholesale buying price is the price at which wholesalers buy the produce from farmers or traders. Where wholesalers buy and sell it can often be difficult to obtain the wholesale buying prices as market traders are generally reluctant to provide information on the prices they pay. They are often, however, prepared to give information about selling prices and this information can be checked with the buyers.

Wholesale selling prices:

The price the retailer pays to buy the produce is the wholesale selling price. This is a price, which is most often quoted by market information services. If an MIS quotes the wholesale selling price for those markets where the wholesalers buy and sell produce rather than act as agents, this information is less useful than the wholesale buying price for farmers because they do not know how much profit is being made by the trader. Thus, where this system of wholesaling operates, market information services should really provide on the wholesale buying price, if at all possible.
marto answered the question on March 15, 2019 at 07:54

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