Demand driven Agriculture refers to the economic concepts of supply and demand. Agricultural extension is characterized by various market failures that affect both the supply side and the demand side of advisory services. In view of these market failures, the public sector and the other sector (civil society organizations, including farmer-based organizations and NGOs) have traditionally played a major role in financing and providing extension services.

Demand-driven extension emphasizes the need to provide services that meet the needs and priorities of farmers, even if the market mechanism fails to make sure that extension services are supplied in the quantity and quality expected by farmers. The farmer-driven or farmer-led extension might better address the goal of making these services meet the needs and priorities of farmers, even if they are not able to exercise demand. Demand driven Agriculture will enhance the marketing capacity of all categories of farmers (i.e. Small, marginal, Large) by integrating all the technology and all the available data. It leads to self reliance and change the agriculture as profitable venture.