Question

What factors must farmers analyze if they want to form farm market organizations to improve their prices? Can farmers control these factors? Can the government control these factors? Explain.

Answer 1

The following factors farmers must analyse if they want to form market organisations to improve their prices:
1 They must initialise the collective funding – because it reduces the short term finance problem and it also reduces the risk of loss and capital accumulation at the beginning.
2 They must also go for micro finance because at this moment the condition is not like that they raises the fund instantly for the requirements.
3 The organised way of doing a particular work this enhances the conditions of market distribution of the products.
4 Theintervention of the government is also important to regulate the market.
5 Theworking in a structured way is important for the sales rise.
6 The variable cost also pays an important role in the formation of the market organisations.
Market organisation is very good concept of equally distribution of the revenue among the farmers.
Not all factors control by the farmers. Following are the factors which are not controlled by the farmers:
1 The intervention of the government.
2 The role of the competitors.
3 The new market policies.
4 Thelegal framework of the legal structured for market organisations in the economy.