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Seasonality of production – abundanceduring harvesting and scarcity during other times cause fluctuation of prices.
Storage - - storage costs are high due to highspace requirement. For some goods special storage facilities like cooler are required.
Bulkiness – agricultural products are too bulky for their value. Handling is difficult.
Perishability- Most agricultural products are highly perishable. This necessitates processing before storage or special storage facilities.
- Change in market demand –There is a lot of time between decision to produce and actual production. Thus prices may have changed adversely.
- Poor transport system-most agricultural areas are rural with impassable roads during rains. This affects delivery to the market.
- Inadequate/lack of market information. Information gaps allow farmers to be exploited by middleman. Product quality may not match consumer preferences.
joshua consultants answered the question on December 5, 2020 at 14:58
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