cooperative rural markets

8/18/2019 Cooperative rural markets

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Unit 3

• Defnition and Scope o Rural Markets

• Rural Vs Urban Markets

• Rural Marketing Environment

• Rural Consumer Profle

• Consumer e!aviour

• Rural Marketing Mi"

• Rural Market Segmentation

• #argeting and Positioning

• Marketing o Consumer Durables

• Rural Sales $orce Management

Unit %

•

&gricultural Produce Marketing

– 'mportance

– Problems

– (ines o 'mprovement

– Regulated Markets

– )ualit* +rientation %, 'mpact o -lobalisation on

'ndian Markets

– Standardisation and -rading E c!aupals .Commodit* Markets

andimportance

• Role o fnancial institutions in &gricultural marketing


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– 'nnovative Marketing #ec!ni/ues and Recent #rend in Rural

Markets

C!apter % Contd,,

R#'. 0112

'ntended to get access to inormation under control o public

aut!orities

&ims at containing corruption and !olding government

accountable

#!e central govt !as Central 'normation Commission State

-ovt !as State 'normation Commission

&pplicabilit*

E"tends to 4!ole o 'ndia e"cept 56

Eac! public aut!orit* maintains all its records inde"ed

computerised

Public 'normation +7cers 8P'+9 are o7cers designated b*

public aut!orities in all administrative units

&ll o7cials !ave to !elp P'+ 4!enever demanded

Procedure

P'+ deals 4it! all re/uests made in 4riting

:!ere t!e re/uest cannot be made in 4riting. assistance is

given to t!e person seeking inormation

' t!e needed inormation is connected to anot!er public

aut!orit*. t!e P'+ !as to transer t!e re/uest to t!at public

aut!orit* 4it!in 2 da*s

;e must also inorm t!e applicant immediatel*


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#!e P'+ !as to provide 4it! t!e inormation. or res c!e/ue or an 'ndian Postal +rder o

Rs, ?1B #!e applicant ma* also be re/uired to pa* urt!er ee to4ards

t!e cost o providing t!e inormation 8a9 Rs, 0B or eac! page 8 in &% or &3 sie paper9 created or

copied 8b9 actual c!arge or cost price o a cop* in larger sie paper

8c9 actual cost or price or samples or models 8d9 or inormation provided in diskette or opp*. Rs, 21B per


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diskette or opp*

& citien !as a rig!t to inspect t!e records o a public aut!orit* $or inspection o records. t!e public aut!orit* s!all c!arge no

ee or t!e frst !our

ut a ee o Rs, 2 or eac! subse/uent !our s!all be c!arged

Penalties

Central 'normation Commission can impose a penalt* o Rs,

021 or eac! da* till inormation is given, Ma"imum penalt* is Rs, 02111

#!e Commission can take disciplinar* action again P'+ i F ;e doesnGt give reasonable cause o re


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#o !old s!ares not e"ceeding ?B2t! o total s!are capital or Rs,

01111,

#o transer s!ares ater !olding t!em or at least one *ear,

#o be entered as a member in t!e register o members,

Rig!t to vote at general bod* meeting

#o contest elections

#o kno4 aAairs o t!e societ*

#o receive copies o documents on pa*ment o ees

#o reer disputes to cooperative court or decision,

#o resign or 4it!dra4 members!ip

#o receive dividends not e"ceeding ?2H

#o pa* dues o t!e societ* regularl*

#o compl* 4it! provisions o t!e act b*ela4s o t!e societ*

Iot to bring disrepute to t!e societ*

Rights of registrar of co-operatives

Deciding policies

-uidance

Registration o Coop societies

;andle complaints regarding members!ip

-iving consent or amendment or b*ela4s

'nvesting societ*>s unds and advances

&udit and inspection o societ*


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'nstruct societies to conduct regular meetings

&malgamation reconstruction o societies

'mpose penalties

-ive decisions in disputes

&ssist land development bank to recover loans

Stoppage o business in societ*

Responsibilities of an auditor

;e certifes t!e fnal accounts are true and correct

;e assesses t!e atmosp!ere. unit* and cooperation among

members

;e inspects i t!e societ* 4orks on prociples o cooperation

;e c!ecks i t!e societ* maintains accounts as per t!e &ct

;e observes loans taken b* t!e societ*

;e makes sure t!at board o directors are using t!eir po4ers

and doing t!eir duties 4ell

Prepares audit report

&uditor does an audit rom t!ree dimensionsF

Members dimensionF ' t!e* get goods and services rom t!e

societ*

Societ* dimensionF ' cooperative principles are ollo4ed to

make societ* economicall* viable

Et!ical dimensionF ' t!e societ* is et!ical in its business and

abides b* t!e &ct


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Right of an auditor

&ccess to balance s!eets all books o accounts

Po4er to summon an* member in c!arge o t!e books o

accounts

Rig!t to receive inormation

Rig!t to be inormed o and to attend t!e general bod* meeting

Challenges for cooperatives

Slo4 pace o gro4t!

Mismanagement and Manipulation 8in case o largemembers!ip9

(ack o a4areness

(ack o unds

'nade/uate suppl* o support material

(ack o trainers

Restricted coverage

#!reat rom liberalisation

Rural Markets 8C!apter ?9

:!at is RuralJ

-overnment agencies like 'RD& 8'nsurance Regulator* &nd

Development &genc*9and IC&ER 8Iational Council or appliedEconomic Researc!9 defne Rural as villages 4it! a population

K2111 4it! L2H male population engaged in agriculture ,

&ccording to ISS+ Iational Sample Surve* +7ce 8 Census9 F

• Population densit* K %11 B S/ 6m


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• L2 percent o t!e male 4orking population is engaged in

agriculture

• Io Municipal corporation B board

&ccording to Planning Commission F

• #o4ns up to population o ?2.111 are considered rural

&ccording to I&&RDBR'F

• &ll locations 4it! a population up to ?1. 111 are considered

rural

:!at is Rural MarketingJ

• Developing o t!e market in t!e area 4!ic! is defned as Rural>

• Process o developing. pricing. promoting. distributing rural

specifc goods and services leading to e"c!ange bet4een urban

and rural markets. 4!ic! satisfes consumer demand and

ac!ieves organisational ob


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:!* Rural MarketsJ

• -ro4ing urbanisation

•

;ig!er purc!asing po4er

• 'nrastructural acilities

• Role o 4omen in decision making

• Relevance o opinion leaders

• Media e"posure

• Rise o alert bu*ers

• Saturated urban markets

Reasons or gro4t! in rural markets

• 'ncrease in population. 'ncrease in income

Urban


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• 'ncreased productivit* o agriculture Use o scientifc met!ods.

tec!nolog*

• -overnment investment in rural development 85a4a!ar Ro


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stl* concentrated :idel* spread and scattered

! inrastructural level (o4 inrastructural level

! densit* o population per s/ km (o4 densit* o population per s/

od p!*sical connectivit* and !ig! mobilit* Poor p!*sical connectivit* and lo

omes are more stable and permanent People 4ork in less certain enviro

cupations are government emplo*ment.

siness. industr* etc,

Mostl* agricultural occupation

ome received at regular income &cute seasonalit* in income rece

cial norms are less visible Social norms inuencing individu

ste inuence indirect and less visible Caste inuence direct and strong

! e"posure to variet* o products (o4 e"posure to variet* o produ

! brand a4areness (o4 brand a4areness

! e"posure to multiple sources o inormation (o4 e"posure to and limited souinormation

re convenient bu*ing. more retail outlets (ess convenient bu*ing. less reta

Rural Marketing Environment

:!o is t!e consumerJ

• Consumables (iest*le productsF Sc!ool going c!ildren

*oung adults

• 0132 *rs Q ?B%t! 'ndia>s consumption base


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• %=H o t!e rural 'ndia>s population is belo4 01

• 'mprovement in literac* ratesQ mature decisions. more brand

a4areness !ence brand consciousness

C!aracteristics o rural markets

Rural literac* levelsF 3H in ?@=? %2H in ?@@? 2@H in 011? (arge and scattered marketF Rural population is L0H o total

population and it is scattered over a 4ide range o

geograp!ical area Diverse socioeconomic background C!anging demand patternF Demand pattern o rural customer

is ast c!anging due to increasing in income and credit acilities

oAered b* banks like 6isan credit card> Ma


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• 't 4as started b* t!e -overnment o 'ndia. Reserve ank o

'ndia 8R'9. and Iational ank or &griculture and Rural

Development 8I&&RD9 in ?@@=@@ to !elp armers access

timel* and ade/uate credit

• #!e 6isan Credit Card allo4s armers to !ave cas! credit

acilities 4it!out going t!roug! timeconsuming bank credit

screening processes repeatedl*

• Repa*ment can be resc!eduled i t!ere is a bad crop season.

and e"tensions are oAered or up to our *ears

• #!e card is valid or t!ree *ears and sub


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• 'ncrease in brand consciousness

• Value or mone*

Rural consumer be!avior

• :!at is Consumer e!aviourJ

– ;uman be!aviour t!at go to make purc!ase decisions, 't>s

t!e reaction o individuals in obtaining and using goods and

services o a particular t*pe

• DefnitionF

– 's t!e process 4!ereb* individuals decide 4!et!er. 4!at.

4!en. !o4 and rom 4!om to purc!ase goods and services,

C!aracteristics o Rural Consumer t!at aAect t!e bu*ing

process

• &ge and lie c*cle stage

• +ccupation

• Purc!asing po4er 8small packs prices. installments

discounts and ree gits9

• (iest*le 8 Poor. &spirants. climbers. consuming class. ver* ric!9

• Personalit* sel Concept

• Ps*c!ological actor

– Perception

–

Cognition 8kno4ledge9

– elies attitudes

– Motivation

Rural consumer>s u*ing be!avior


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• SocioCultural actors

– Culture

– Social class

– -roups

– $amil*

– Role status

– Sociabilit* 8interactions bet4een one anot!er9

• #ec!nological actors

• Economic actors

• Political $actors

C!apter 3

PR+DUC# S#RE-N

?9 Small Unit Packaging

Small packs are preerred due to t!e ollo4ing reasonsF

Small packs !elp t!e rural consumer to pick t!e product at

aAordable price

'ndividual use products like s!ampoo toilet soaps. etc, are

boug!t in smaller sie

Small packs are eas* to displa* and t!e* increase t!e visual

appeal

Small packs are convenient to retailer to do !is business

E"ampleF

Cavin 6are introduced s!ampoo in % ml sac!ets at 1,21 paise


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Rasna is no4 available in sac!et at Re, ?

Ponds introduced 01 gm talcum po4der

#iger biscuit is available in our biscuits pack at Re, ?

09 Ie4 Product Design

#!e products are designed as per t!e rural liest*le

E"ampleF

PVC s!oes and c!appals are designed to 4ork in adverse

conditions

(- electronics launc!ed TSampoorna #V t!at can 4it!standpo4er uctuations

P!ilips introduced small rerigerators especiall* or rural

consumers

39 Sturd* Products

Sturdiness o a product is an important actor or rural

consumers, #!e rural consumers believe t!at !eavier t!e.!ig!er !e po4er and durabilit*

E"ampleF

ullet motorc*cle is popular in village due to its ruggedness

Escorts !as positioned t!eir motorc*cle TRa


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E"ampleF

P!ilips introduced lo4 cost radio Ta!adur 4it! onl* medium

4ave receiver. 4!ic! 4as ailed and und t!at rural consumer

purc!ase radio not onl* or ne4s but also or entertainment29 rand Iame

Rural consumers are more brand lo*alists t!an urban

consumer, #!e brand name s!ould instantl* be understood b*

t!e rural consumers

Rural consumers are unamiliar 4it! Englis! and absurd names

More preerabl* rural brand is a s*mbol. logo or color

E"ampleF

Ever*da* batter* 4it! a cat s*mbol O rural consumers

remember it as billi 4ali batter*>

(iebuo* soap O rural consumers remember it as lal saboon>

Ma!indra tractor>s brand !umiputra>

Slogan o Red (abel #ea T


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;ead and S!o4er O ;ead and S!oulder

Pantane O Pantene. etc

PR'C'I- S#RE-N

?, (o4 Cost Products

Rural customer is price conscious manl* because o lo4

income, #!e price can be kept lo4. b* lo4 unit packaging

#!is is a common strateg* adopted b* man* companies

marketing in rural areas, E"ample O same as o small unit packs

0, &pplication o Value Engineering

#!e aim o value engineering is to reduce t!e value o t!e

product so t!at a larger segment o population can aAord it to

bu*

EgF So*a protein can be used instead o milk protein. nutrition

content o bot! is same but t!e so*a protein is c!eaper t!en

milk protein

3, Refll B Reusable Packaging

Refll packs benefts t!e rural consumers in terms o price and

also t!e packaging material s!ould be reusable in rural areas

E"ample O Man* armers demand or ertiliers packed in

durable sacks, #!e* eel t!at t!e* get sacks ree o cost b*

purc!asing ertiliers

%, Discounts

'n order to motivate t!e rural retailer to sell more. a discount o

2?1H is given on t!e MRP particularl* in case o $MC goods

2, Promotional Sc!emes


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Rural consumer normall* bu*s !ouse!old articles during

estivals like Eid. Di4ali. and Pongal etc, special promotional

sc!emes could be introduced on suc! occasions like e"c!ange

oAers. special discounts. etc

RUR&( PR'C'I- +5EC#'VES

?, Deeper penetration o marketF asicall* rural markets are

adopted or deeper penetration and e"pansion because o its

sie, ;ence t!e pricing ob


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Skimming pricing O C!arging !ig! prices at initial level. E,g,

P- launc!ed #ide detergent at !ig! price and t!en reduced it

lo4er t!an ot!er brands

09 Value Conscious Customers O #!e* are o middle class and aremainl* concerned 4it! unctional benefts and value or mone*

Pricing Met!odsF

Penetration Pricing O C!arging lo4 prices at initial level t!en

increasing graduall* 4!en brand name !as been establis!ed,

E,g, Maggie noodles. Vicks

Value Pricing O Setting t!e price reasonabl* lo4er t!an t!e

competitor>s price

39 Price Conscious Customers O #!e* are climbers. aspirants and

destitutes 8poor9, #!e* 4atc! or promotional oAers and purc!ase

c!eap or ake products

Pricing Met!odsF

Ps*c!ological Pricing O Ps*c!ological pricing is one t!at ends in

an odd number e,g, Rs, @@,@2, 't conve*s t4o notions toconsumer t!at t!ere is a discount or bargain and it belongs to

lo4er price categor*

Promotional Pricing O 't includes mini packs. priceoA. special

discounts. credit acilities etc

PR+M+#'+I&( S#RE-N )ualities Re/uired or a Rural Sales

Person

?, 6no4ledge o local language

0, :illingness to get located in villages

3, Cultural CongruenceF Rural salesman must !ave proper

ac/uaintance 4it! t!e cultural pattern o rural lie


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%, Patience

2, Capacit* to !andle number o products linesF Rural salesman

usuall* does not generate economic value o business i !e

!andles e4 products, ;e is re/uired to !andle muc! largenumber o products lines as compared to urban salesman

, -reater Creativit*F Rural marketing involves greater creativit*, '

t!e product is ver* ne4 in t!e rural conte"t. !e !as to introduce

it using consumption pioneers and opinion leaders

&(#ERI'VE MED'& $+R RUR&( C+MMUI'C'+I

& $ormal +rganised MediaF Ie4spapers and MagainesF E,g,

Dina #!ant!i in #amilnadu. Pun


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Puppetr*F #!e indigenous t!eatre o 'ndia most popular orm o

entertainment available to t!e village people, #!e perormer

uses puppets as a medium to communicate. ideas. values and

social messages, EgF

Sounds and drama division o t!e government o 'ndia

used puppets to promote various government pro


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S*ndicated &V VansF 't is an &V van publicit* service provided

b* t!e independent agencies, $irms. 4!ic! cannot aAord to

!ave t!eir o4n publicit* van. can utilise t!e s*ndicate van

services

Stalls. ;aats 8a temporar* periodic market9. MelasF #!ese are

useul media o rural communication to spread t!e message

and to induce brand trials

:all PaintingsF #!e speec! or t!e flm comes to an end but t!e

paintings sta* as long as 4!et!er allo4s it to sta*, #!e retailer

usuall* paints its s!ops 4all and name board 4!ic! acts as a

status s*mbol

Use o (ogos and S*mbolsF 'lliterate villagers 4ould remember

brands onl* b* picture. s*mbols more t!an t!e name

Use o 'normation #ec!nolog*F '#C developed a 4eb portal in

regional languages to provide inormation to t!e armers about

t!e products and services 4!ic! t!e* need in order to en!ance

arm productivit*. inormation on 4!et!er. scientifc practices.

market prices etc

$ocus on Reerence -roupsF #!e* are t!e opinion leaders and

are t!e ke* persons o t!e village e,g, Sarpanc!. -ram Sevak.

#eac!ers. Doctors etc, #!ese people s!ould be taken into

consideration 4!ile c!alking t!e rural communication

Constraints in Rural Communication

(o4 (iterac* Rate

(o4 Spending Capacit*

5oint $amilies and Strong 6ins!ip #iesF Di7cult to reac! emale

consumers directl*

(inguistic and Sociocultural DiAerences


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Uni/ue Media ;abitsF Ie4spapers are ound mostl* at

groceries s!op. tea stall etc, Magaines are not read at all

E"pensive CommunicationF Repeat e"posure is a must

ot!er4ise t!e message loss its eAect during gap periods

Poor 'nrastructure

(ack o Researc! DataF Decisions regarding messages and

media mi" or rural communication depends onl* on sales orce

and distributors. 4!ic! is insu7cient

D'S#R'U#'+I S#RE-N ME#;+DS +$ D'S#R'U#'+I

Stockist>s Van B Compan* +4ned Ve!iclesF 'n t!is s*stem. asalesman loads t!e van 4it! stocks and rom t!e compan*

stock point and distribute in t!e surrounding market, #!en !e

moves t!e ne"t stock point and covers all surrounding markets,

'n t!is 4a* !e moves rom one stock point to anot!er and

returns to compan*>s stock point, 't is t!e best but an

e"pensive met!od

;ired Ve!iclesF 'n t!is s*stem. t!e salesman !ire a public

carrier like a ta"i or a truck, #!e disadvantage o t!is s*stem is

t!at t!e salesman !as to spend lot o time in organiing

transport

:orking b* 'ndependent StockistF 'n t!is s*stem. inspite o

!aving salesman. compan* gives t!is


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consumer goods. because t!e main bu*ing season in rural

areas is during !arvest

#ranser o CapitalF :!en t!e !arvest is over and cas! is

realied. t!e retailers invest in inventories or !is s!op Credit PatternF Credits oAered to consumers b* retailers is

diAerent rom area to area, Iormall* consumers !ave a running

credit 4it! a part o outstanding is paid ever* mont! and t!e

balance is paid during t!e !arvest

Purc!asing C*cleF 'n !ig! turnover eeder villages. t!e retailers

make purc!ases 3 to % times a 4eek rom urban 4!olesaler, 'n

ot!er villages t!e* bu* once a 4eek or ortnig!tl*Multiplier EAect o Rural Demand

+nce a product gains acceptance in rural markets. t!e rural

retailer put t!is item on !is s!opping list 4!en visiting t!e

4!olesaler in t!e nearb* to4n

#!is action b* t!e rural retailer starts a c!ain reaction 4it!

t!e urban 4!olesaler once t!e urban 4!olesaler kno4s t!at

or suc! a product a rural demand is possible. !e 4ill startstocking t!is product and 4ill recommend and pus! t!is

product to ot!er rural retailers

#!ese rural retailers 4ill in turn. sell to smaller retailers o

smaller villages, 'n t!is 4a* a multiplier eAect create in rural

demand

C!apter 3

Segmentation in Rural Market

?, -eograp!ic SegmentationF Segmentation on t!e basis o

geograp!* is done depending on various actors suc! asF

• RegionBWoneF Iort!. Sout!. East and :est,


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0, Select t!e segmentsF Rates t!e above parameters on !ig!.

medium or lo4 and comes 4it! a score or eac! segment

3, Coverage o segmentsF #*pesF DiAerentiated. undiAerentiated

and concentratedPositioning

• 't is 4!at *ou do to t!e mind o t!e prospect

• 'nvolvesF

?, 'denti*ing o4n USP via a vis competition

0, Select t!e diAerences t!at !ave greater competitive

advantage

3, Communicate suc! advantages to target audience

• Marketer can diAerentiate usingF

?, Product

0, Service

3, PeopleBbrand endorsers%, +verall image using ads. signs. s*mbols. colors. logos etc

Marketing o Consumer Durables

• 'ncome level determines demand

• Purc!ase priorit* ;ig! to lo4F #V. $ridge. 4as!ing mBc. &CY

• C!anges in demand pattern due to consumer fnance

• ;ig! gro4t! 4itnessed in rural demand

• E"c!ange sc!emes 4ork 4ell

'ssues


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• (o4 penetration compared to potential

• (ack o inrastructure 8Po4er. 4ater9

• Io economies o scale or rural retailer

• Spending tendenc* more on labor t!an mac!ines

C!apter %

&gricultural Produce Marketing

&gricultural marketing is a process 4!ic! starts 4it! a decision

to produce a arm commodit*

't involves all aspects o market structure and includes pre andpost !arvest operations like assembling. grading. storage and

distribution

C!aracteristics o &gricultural Produce

Uncertain /ualit*B/uantit* o output

ulk*

Peris!able

Seasonal in man* cases

Ieed processing

Classifcation o Markets

?, +n t!e asis o (ocation Village MarketsF (ocated in small villages

Primar* :!olesale MarketsF ;eld 4eekl* or bi4eekl* at

diAerent villages and locall* called as S!andi> or ;aat>


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Secondar* :!olesale MarketsF (ocated at taluka or district

!ead/uarters and to4ns and kno4n as Mandi> or -un

#erminal MarketsF (ocated in metro cities 4!ere bu*ers and

sellers come rom diAerent regions or nations

Seaboard MarketsF (ocated near seas!ore or t!e purpose o

import and e"port

0, #ime Span

S!ort Period MarketsF Peris!able products suc! as fs!. milk

etc, are traded

(ong Period MarketsF (ess peris!able products suc! asoilseed ood grains are traded

3, Volume o #ransaction

:!olesale MarketsF -oods are boug!t and sold in large

/uantities

Retail MarketsF -oods are boug!t and sold according to t!e

consumer>s re/uirement

%, Iature o #ransaction

Spot or Cas! MarketF Mone* is realied immediatel* ater t!e

sale

$or4ard MarketF Process o purc!ase and sale is done but

goods and mone* is e"c!anged at some specifc date

2, Iumber o Commodities

-eneral MarketF &ll t*pes o commodities are boug!t and

sold

Specialised MarketF +nl* one or t4o commodities are sold.

e,g, clot! market


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Met!ods o Sale

Under Cover o a Clot! 8;atta9 S*stemF #!e price is f"ed b* t!e

Commission agent and t!e retailers 8Purc!aser9 under t!e

cover o clot! b* making signs on t!e palm 8;atta s*stem9, #!iss*stem !as been banned b* government because o t!e

possibilit* o c!eating,

+pen &uction S*stemF 'n t!is s*stem. t!e seller pilesup !is

produce at one place, Dalal visits eac! piledup stocks. pick

samples and s!o4s it to t!e bu*ers, #!e agent t!en invites bids

and t!e produce is sold to t!e !ig!est bidder

Random id S*stemF Dalal invites onl* e4 bu*ers. ever*one isnot inormed

Roster id S*stemF idding starts rom a particular s!op in t!e

market and t!e bidders ater t!e auction o produce at one

s!op move to t!e ne"t in a clock4ise or anticlock4ise direction

till t!e auction at all s!ops is over

Closed #ender S*stemF 'n t!is s*stem t!e bidders are asked to

/uote t!eir oAer price in a prescribed orm and submit it to t!eseller, &ll t!e bidders are invited on a f" date and time and

sealed tenders are opened in presence o all bidders, #!e name

and price o !ig!est bidders is announced and goods are sold

to !im

Mogum SaleF 'n t!is s*stem. armers take advance rom t!e

bu*er beore t!e !arvest 4it!out f"ing t!e price. 4it! an

understanding t!at t!e bu*er 4ill pa* t!e prevailing rate ater

t!e !arvest

Private IegotiationsF 'n t!is met!od. bu*er comes to t!e s!ops

o agent. inspects t!e sample and oAers !is price, ' price is

accepted t!e agent conve* t!e decisions to t!e seller and t!e

produce is 4eig!ed and given


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Market C!arges and Deductions

&r!at O Commission

ardana O Rent or suppl* o gunn* bags

orioto O C!arges or !olding t!e gunn* bags 4!ile flling

;amali O ;andling c!arges

#ulai O :eig!ing c!arges

Munimi O Clerk>s allo4ance

6arda O #rade allo4ance to bu*er to compensate or loss in

4eig!t on account o impurities etc

Direct Marketing or &gricultural Produce

&pni Mandi B 6isan Mandi

& direct contact bet4een t!e armer and consumer 4it!out t!e

involvement o middlemen

Minimises t!e marketing costs and ero middlemen margin

#!e &pni Mandi is ull* covered rom top but open on t!e sides

't accommodates raised platorms o G"=G sie eac!

#!ese platorms are allocated temporaril* to t!e amers to

displa* t!eir produce and sell it to t!e consumers directl*

$irst &pni Mandi 4as started b* Pun


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Market c!arges like commission. namoona. munimi etc

Multiple 4eig!ts and measures

&dulteration b* armers

Malpractices like large samples taken are not paid or

Under developed inrastructure transportation

&bsence o grading and standardisation

(ack o eas* fnance

'normation gap

'nade/uate storage acilities

C!apter 2

Regulated mar!ets

#!e regulated markets are establis!ed as per t!e provisions o

t!e ZMarketing o &gricultural Produce &cts> o t!e State-overnment

#!e Commodities 4it! 4!ic! t!e market 4ill deal. are also

declared

Regulated markets aim at t!e development o marketing

structures to ensure remunerative prices to t!e producers and

to narro4 do4n t!e price spread bet4een t!e producer and t!e

consumer, 't also aims at reducing t!e nonunctional marginso t!e commission agents

$or controlling t!e activities o t!e marketing. t!ere is a

ZMarket Committee>


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#!e Committee consists o representatives o t!e armers.

commission agents and t!e -overnment nominees

#!e Committee issues licences to t!e Commission &gents.

4eig! men. and ot!er unctionaries,

#!e rate o Commission to be c!arged is f"ed b* t!e

Committee

:eig!ing is done properl* b* t!e 4eig! men appointed b* t!e

Committee

#!ere is an arbitration SubCommittee to look into t!e

grievances o t!e armers,

&menities like rest !ouse. place or parking o ve!icles. cold

storages. etc, are also created in t!e market *ards or t!e

beneft o t!e armers

+pen auction met!od o sale

Market c!arges var* rom state to state

Pa*ment o goods on t!e same da*

"tandardisation # $rading

Standardiation reers to t!e process o setting up basic

measures or standards to 4!ic! t!e products must conorm

't ensures t!at t!e goods actuall* produced ad!ere to t!ese

standards Standards are establis!ed on t!e c!aracteristics like 4eig!t.

sie. color. appearance. te"ture. moisture. ripeness. taste. etc

-rading is t!e process o sorting individual units o a product

into 4ell defned classes or grades o /ualit*


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#!e goods are graded or sorted out into diAerent lots in

accordance 4it! t!e specifed standards

#!e establis!ed standards la* do4n t!e grades o t!e product

'n case o manuactured goods. goods can be o uniorm

/ualit*, ut agricultural products like ruits and vegetables.

etc,. var* in /ualit*

#!ereore. classes or grades o /ualit* are set and diAerent

units o t!e product are sorted into t!e establis!ed standard

grades

#!us. grading involves t!e division o products into classes

made up o units possessing similar c!aracteristics o sie and

/ualit*,

Standardiation and -rading are interdependent activities

Standardiation la* do4n t!e standards or grade o /ualit*

-rading involves classi*ing t!e products into specifc lots as

per t!e establis!ed standards

%h& "tandardisation'

'mproves p!*sical !andling o goods O goods o similar

standards can be storedBtransported toget!er

$acilitates bu*ing and selling o goods b* sample or description.

avoids detailed inspection

Sell better and also etc! a better price

Reduces risk o purc!ase b* 4!olesalersBfrms


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Provides eas* availabilit* o fnance

;elps increase e"ports

'mproves appropriate targeting o rig!t /ualit* o produce to

t!e rig!t market

Recent trends in Agricultural mar!eting

Reduction in lengt! o suppl* c!ain

Modern communication met!ods

etter transportation

'mproved inrastructure O 4are!ousing. cold storage etc

Standardisation and grading

Concept o contract arming becoming popular

(inance # Agricultural mar!eting

#raditionall* dominance o private mone* lenders. traders and

agents

Role o fnancial institutions more prominent in recent *ears

#*pes o creditF

◦ S!ort term

◦ Medium #erm

◦ (ong term

NABAR)

Iational ank or &griculture and Rural Development


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&pe" bod* looking ater rural credit re/uirements

't provides loans to State Cooperative anks and Regional Rural

anks

S!ort term loans upto ?= mont!s. medium term upto L *ears

and long term upto 02 *ears

+verlooks and inspects unctioning o SCs and RRs

Maintains R D und or researc! in agriculture and rural

development

*mpact of $lobalisation on *ndian Mar!ets

;ig!er standard o living

etter profts to agro based frms

'mprovement in product standards

etter emplo*ment opportunities

+ptimum use o natural resources

Economic -ro4t!

&ttracts more $D'

E-Choupal

'nitiative b* '#C

Provides computer 4it! internet connection to armers

-ood source o inormation and discussion or armers across

t!e countr*

Main motive is to conduct agricultural commodit* trading at

multiple locations


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* passes t!e middlemen and t!eir c!arges

#!e internet kiosk located at an inuential person in village O

t!e Sanc!alak

;e !as access to entire site contents

The process+

$armer brings sample to sanc!alak

;e inspects t!e produce. assesses t!e /ualit* and gives a

/uote to t!e armer

#!e /uote is given on basis o previous da* mandi prices t!at

Sanc!alak fnds t!roug! t!e 4ebsite

#!e armer ma* c!oose to sell via '#C

;e is given 4ritten note o details o t!e sample and t!e /uoted

price

Sanc!alak takes t!e sample to nearest '#C procurement centre & c!emist tests t!e sample

' approved. t!e armer collects !is ull pa*ment rom t!e

centre


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cooperative rural markets

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