Q.38
Which is not true for agricultural commodities?
EXPLANATION
Agricultural Marketing Structures: Marketable/Marketed Surplus, Price Spreads, Marketing Margins & Channels
- Characteristics of Agricultural Commodities vs. Industrial Goods:
- Heterogeneity (Non-homogeneity): Agricultural commodities in their natural harvest state exhibit significant heterogeneity due to biological variation, differing agro-climatic conditions, crop varieties, moisture levels, maturity stages, and pest damage. Hence, homogeneity of the products is NOT true for raw agricultural commodities. This natural variability necessitates grading, standardization, and Agmark certification.
- True Inherent Characteristics:
- Perishability: Biological decay commences immediately post-harvest, requiring immediate marketing or cold chain preservation.
- Seasonality: Production is bound to specific seasonal harvests, whereas consumer demand remains relatively steady year-round.
- Bulkiness: High volume-to-value ratio, resulting in substantial transportation and storage costs per unit value.
Correct option: (3) Homogeneity of the products
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