Question

Paddy is grown during summer season but its demand and sale takes place throughout the year.

1. Name and state the function of marketing which should be undertaken to reduce the gap between production and consumption of Paddy.
2. State by giving two reasons as to why proper discharge of this function is important.

Answer 1

1. The function of marketing that reduces the gap between production and consumption of paddy is Storage or Warehousing.
   Due to irregular demand or supply, there may be time gap between production of goods and their sale. Storage helps in reducing the time gap between production and consumption and provides time utility.
2. Importance of warehousing:
   1. To ensure smooth flow of products in the market.
   2. To protect against any unavoidable delays in delivery or meet contingencies in demand.