Study of Change in Perception of the Marketing Method of Small and Medium Farmers Through AHP Analysis


  • A. J. Rajguru Research Scholar, Indian Institute of Technology, Mumbai
  • N .G. Shah Professor, Centre for Technology Alternatives for Rural Areas, Indian Institute of Technology, Mumbai
  • G. Ramkrishnan Professor, Department of Computer Science and Engineering, Indian Institute of Technology, Mumbai



Agriculture Marketing, Analytic Hierarchy Process


Types of agriculture risks which a farmer faces are production risk, price or market risk, financial and credit risk, institutional risk, technology risk, input price risk, post-harvest risk and personal risk (Devi Prasad Juvvadi). Input and output price volatility is an important reason for market risk in agriculture. Lower prices of the products received by farmer forces him not to completely depend on faming income. So, one cannot ask a farmer to grow more from the same area until he gets a fair price. Farmers are not getting enough price to survive on their own by marketing their products through traditional Agricultural Produce Marketing Committe (APMC )channel. National Sample Survey Organisation (NSSO) reported that, given the choice, 40 per cent of the farmers wish to leave agriculture (Murray, 2009), it may be a future risk to the food security of India. As a result, government has given permission to sell the products through different channels in the market. In this study, selection of appropriate channels of marketing, considering long-term relation is studied using Analytic Hierarchy Process (AHP) tool. In this work 20 attributes (quantitative and qualitative) along with six marketing channels with a single marketoriented perspective on four groups of farmer is studied. Study is carried out on 80 farmers whose major income comes from farming. Here, different channels of marketing are ranked and how a small and medium farmer selects the appropriate marketing channel is presented. It was observed that the farmers no longer have faith in traditional means of selling their products through APMC. It can be a lesson for other small and medium farmers to change their thought procedure and use alternate marketing channels to sell their products and become sustainable in the farming profession. The deficiencies and urge of the farmer to remain in this business in a sustainable way is presented, from which policymakers can take an appropriate message from the study.


Download data is not yet available.




How to Cite

Rajguru, A. J., Shah, N. .G., & Ramkrishnan, G. (2018). Study of Change in Perception of the Marketing Method of Small and Medium Farmers Through AHP Analysis. Journal of Rural Development, 37(4), 719–740.


Djalalou-Dine A. A. Arinloye, Stefano Pascucci, Anita R. Linnemann, Ousmane N. Coulibaly, Geoffrey Hagelaar & Onno S. W. F. Omta, (2015), “Marketing Channel Selection by Smallholder Farmersâ€, Journal of Food Products Marketing, 21:337–357.

Murray E.V. (2009), “Producer Company Model- Current Status and Future Outlook: Oppurtunities for Bank Finance.†Knowledge Bank, College Agricultural Banking. Pune, Maharashtra, India, p 13.

Natalie H. Valpiani*, Parke E.Wilde, Beatrice L. Rogers, and Hayden G. Stewart (2015), “Price Differences Across Farmers’ Markets, Roadside Stands, and Supermarkets in North Carolinaâ€, Applied Economic Perspectives and Policy.

Walter O. Moturi1*, Gideon A. Obare1 and Alexander K. Kahi1 (2015), “Milk Marketing Channel Choices for Enhanced Competitiveness in The Kenya Dairy Supply Chain: A multinomial Logit Approachâ€, International Conference of Agriculture Economics.

Vasant P. Gandhi and N.V. Namboodiri (2002), “Fruit and Vegetable Marketing and its Efficiency in India: A Study of Wholesale Markets in the Ahmedabad Areaâ€, Indian Institute of Management, Ahmedabad, India.

Ramesh Chand, (2012), “Development Policies and Agricultural Marketsâ€, Economic and Political Weekly EPW DECE MBER 29, 2012 Vol. XLVII No. 52.

J. Devi Prasad, B. Gangaiah, K. Suman Chandra (2015), Agriculture Risk Management, BS Publication.

Rajiv Banker, Sabyasachi Mitra, V. Sambamurthy (2011), “The Effects of Digital Trading Platforms on Commodity Prices in Agricultural Supply Chainsâ€, MIS Quarterly, Vol. 35 No. 3 pp. 599-611.

Helen Markelova a, *, Ruth Meinzen-Dick a, Jon Hellin b, Stephan Dohrn (2009), “Collective Action for Smallholder Market Accessâ€, Food Policy, 34, 1–7.

Clare Narrod a,*, Devesh Roy a, Julius Okello b, Belem Avendaño c, Karl Rich d, Amit Thorat (2009), “Public– Private Partnerships and Collective Action in High Value Fruit and Vegetable Supply Chainsâ€, Food Policy, 34 ,8–15.

Ho, W. (2008), “Integrated Analytic Hierarchy Process and its Applications–A Literature Review.†European Journal of Operational Research, 186(1), 211-228.

Belton, V. and Stewart, T.J. (2002) “Multiple Criteria Decision Analysis: An Integrated Approachâ€. Boston: Kluwer Academic Publishers.

Figueira, J., Greco, S. and Ehrgott, M. (2005), “Multiple Criteria Decision Analysis: State of the Art Surveysâ€. New York: Springer-Verlag.

Elkarmi, F., & Mustafa, I. (1993), “Increasing the Utilization of Solar Energy Technologies (set) in Jordan: Analytic Hierarchy Process.†Energy Policy, 21, 978-984.

Srdjevic, B. (2005), Combining Di_erent Prioritization Methods in the Analytic Hierarchy Process Synthesisâ€.

Computers and Operations Research, 32, 1897-1919.

“Situation Assessment Survey of Agricultural Households†Conducted by the National Sample Survey Office (NSSO) for the 2012-13 crop year from July to June.