Transport Problem:

Transportation infrastructure is very poor in rural India. Though India has the fourth largest railway system in the world, many villages remain outside the railway network. Many villages have only kaccha roads while many of rural interiors are totally unconnected by the roads. Because of this the physical distribution is difficult in rural areas.

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3. Communication Problems:

Communication infrastructure consisting of posts, telegraphs and telephones are inadequate.

4. Warehousing Problems:

Central Warehousing Corporation and State Warehousing Corporation do not extend their services to the rural parts. The warehouses at mandi level are managed by co-operative societies who provide services to members only.

5. Many Languages and Dialects:

The number of language and dialects vary widely from state to state, region to region and even from district to district. Though the recognized languages are only 16 the number of dialects is around 850.

6. Market Organisation & Staff:

Rural marketing needs large marketing organisation and staff to have an effective control, which requires huge investment.

7. Non-Availability of Dealers:

It is not possible to have direct outlets in each rural market; firms need to have service of dealers, which is not easily available.

8. Hierarchy of Market:

Rural consumers have identified market places for different items of their requirements.

Thus depending upon the purchase habit of rural people, the distribution network of different commodities has to be different.