It is widely believed that availability of the desired level of marketable surplus is not only a
function of production but also of an efficient system of marketing. An efficient marketing system can
stimulate increase in agricultural production. Agriculture business is a complex activity. It does not mean
merely buying and selling of farm products but a vast multitude of economic and commercial phenomena
that lie in the realm of concentration, equalization and distribution. In India, there are networks of
cooperatives at the local, regional, state and national levels that assist in agricultural marketing. The
commodities that are mostly handled are food grains, jute, cotton, sugar, milk and areca nuts. Currently
large enterprises, such as cooperative Indian sugar factories, spinning mills, and solvent extraction plants
mostly handle their own marketing operations independently.In the year 2010-11, the total number of
agriculture holdings in India was 138.348 and total area under these holdings was 159.59 million hectare.
Out of agriculture holdings the marginal holdings having 67.10 percent. In India the area under food
grains cultivation is more and it followed by pulses, Oilseeds and cotton. The Union ministry of
Agriculture in third advance estimates has revised upwards food grain production estimates by over 1
million tone to a record 264.77 Million Tonnes for the 2013-14 crop year on account of wheat and rice
output. India is likely to produced 264.77 Million tonnes of food grains during the 2013-14 compared to
257.13 million tonnes last year. As per the latest estimation, rice and wheat production is expected to be
all time high at 106.54 MT and 95.91MT respectively. Production of coarse cereals is estimated to
increase to 43.05MT in 2013-14 from 40.0 MT in the previous year.There was a large chain of
middlemen in the agricultural marketing system like village traders, kutchaarhatiyas, puccaarhatiyars,
brokers, wholesale, retailers, moneylenders, etc.The farmer’s rest houses, Cold storages are not available
in many markets. The modernization of market structure is required.