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RURAL MARKETING
PGDM (IIM Raipur)
Bakhresa FMCG (South Africa)
Relationship Manager (HDFC Bank)
MD- Shyam Hospital
Faculty(MBA)- GLA University, Mathura
Swarit Yadav
Topics
 Intermediaries in rural distribution channel
 Rural marketing institution
 Corporate presence in rural india
 Problems in agricultural marketing
 Marketing of agricultural inputs and non farm
products
 Role of government in rural marketing
Cooperative Movement in India
 The ultimate aim of the cooperatives is to earn
for the welfare of its members
 Uses its services has an equal say in its affairs
 Members of the cooperative share profit and
loss in proportion to utilization of services.
 National Agricultural Cooperative Marketing
Federation of India Limited set up in 1958
 It collects agro products directly from farmers in
regulated markets eliminating middleman.
Cooperative Movement in India
 The National Agricultural Co-operative Marketing Federation of India (NAFED)
is the apex body of the cooperative marketing system at the National level
 Grape Growers Association of Maharashtra (Maharashtra Rajya Draksha
Bagitdar Sang -MRDBS)
 Small Farmers Agriculture Consortium (SFAC), operating from 1994-1995
 Cargill India provides farmers not only an assured marketing outlet but also
eliminates them from fee, commission, brokerage etc.
 Khadi Gramodyog Board of Madhya Pradesh and Hindustan lever limited has
entered in Public-Private sector partnership.
 A Milk Cooperative Society called Warna Bazaar in Kolhapur district of
Maharashtra opened its first departmental store in 1978, more than 40 retail
stores are running at present
 The Indian Parliament Act, 61 of 1981 approved the setting of National Bank
for Agriculture and Rural Development (NABARD)
Cooperative Movement in India
 Government of India is also working with the State
Government to amend the Agriculture Produce
Marketing Act (APMA)
 Farmers sell their produce directly to the potential
processors
 Non-Governmental Organizations (NGO’s) have also
participated in Development initiatives for
Agriculture
 Bhartiya Agro Industries Foundation (BAIF) 1967,
Professional Association for Development Action
(PRADAN) 1987 and Action for Food Production
(AFPRO) 1966, working for agricultural welfare.
Recent Trends
 Contract farming are visible, providing farmers with better returns
 Bilateral, Regional and Trade agreement have provided way in
reducing tariff and non-tariff barriers to cross boarder flows of
agricultural output
 Increased openness of financial markets, leading to enhanced capital flow
into developing countries especially in the form of Foreign Direct
Investment (FDI)
 Out of 7310 wholesale markets in the country 7161 are covered under
Agriculture Produce Marketing Committee (APMC)
 National Spot Exchange Limited (NSEL) is another type of nationalized
transparent electronic spot exchange established in 2005
headquartered in Mumbai
 Indian Public Distribution System (PDS) though old, but has a wider
coverage than any other system prevailing in the country
 It is estimated that out of 11.2 crore households, 4 crore utilize services of
PDS
Recent Trends
 Grameen Sanchar Society (GRASSO)
 e-seva Kendra provides agri-related services like access to
market, price for agricultural products, availability of cold
storage facilities, availability of labor and work opportunities
 AGMARKNET
 Internet based information system aims at providing “single
window” service catering to diversified demands of
information
 Agricultural and Processed Food Products Export
Development Authority
 Autonomous organization to the Ministry of Commerce,
Government of India
 Indian Tobacco Company’s e-choupal (ITC’s e-choupal)
Recent trends
 Mahindra Shublabh Services Limited (MSSL), that
runs centre as Mahindra Krishi Vihar (MKV)
 Hadaspar vegetable market in Pune city is a model
for direct marketing of vegetables, there are no
commission agents and middle man the purchaser
makes payment direct to the farmer.
 Commodity Future Trading came into existence in
2003 trading for 54 agricultural commodities
 DCM shiram consolidated Haryali Kisan Bazaars
 The Godrej group runs a chain of Agri-stores named
Adhaar in Maharashtra and Gujarat
Rural marketing 12

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Rural marketing 12

  • 2. PGDM (IIM Raipur) Bakhresa FMCG (South Africa) Relationship Manager (HDFC Bank) MD- Shyam Hospital Faculty(MBA)- GLA University, Mathura Swarit Yadav
  • 3. Topics  Intermediaries in rural distribution channel  Rural marketing institution  Corporate presence in rural india  Problems in agricultural marketing  Marketing of agricultural inputs and non farm products  Role of government in rural marketing
  • 4. Cooperative Movement in India  The ultimate aim of the cooperatives is to earn for the welfare of its members  Uses its services has an equal say in its affairs  Members of the cooperative share profit and loss in proportion to utilization of services.  National Agricultural Cooperative Marketing Federation of India Limited set up in 1958  It collects agro products directly from farmers in regulated markets eliminating middleman.
  • 5. Cooperative Movement in India  The National Agricultural Co-operative Marketing Federation of India (NAFED) is the apex body of the cooperative marketing system at the National level  Grape Growers Association of Maharashtra (Maharashtra Rajya Draksha Bagitdar Sang -MRDBS)  Small Farmers Agriculture Consortium (SFAC), operating from 1994-1995  Cargill India provides farmers not only an assured marketing outlet but also eliminates them from fee, commission, brokerage etc.  Khadi Gramodyog Board of Madhya Pradesh and Hindustan lever limited has entered in Public-Private sector partnership.  A Milk Cooperative Society called Warna Bazaar in Kolhapur district of Maharashtra opened its first departmental store in 1978, more than 40 retail stores are running at present  The Indian Parliament Act, 61 of 1981 approved the setting of National Bank for Agriculture and Rural Development (NABARD)
  • 6. Cooperative Movement in India  Government of India is also working with the State Government to amend the Agriculture Produce Marketing Act (APMA)  Farmers sell their produce directly to the potential processors  Non-Governmental Organizations (NGO’s) have also participated in Development initiatives for Agriculture  Bhartiya Agro Industries Foundation (BAIF) 1967, Professional Association for Development Action (PRADAN) 1987 and Action for Food Production (AFPRO) 1966, working for agricultural welfare.
  • 7. Recent Trends  Contract farming are visible, providing farmers with better returns  Bilateral, Regional and Trade agreement have provided way in reducing tariff and non-tariff barriers to cross boarder flows of agricultural output  Increased openness of financial markets, leading to enhanced capital flow into developing countries especially in the form of Foreign Direct Investment (FDI)  Out of 7310 wholesale markets in the country 7161 are covered under Agriculture Produce Marketing Committee (APMC)  National Spot Exchange Limited (NSEL) is another type of nationalized transparent electronic spot exchange established in 2005 headquartered in Mumbai  Indian Public Distribution System (PDS) though old, but has a wider coverage than any other system prevailing in the country  It is estimated that out of 11.2 crore households, 4 crore utilize services of PDS
  • 8. Recent Trends  Grameen Sanchar Society (GRASSO)  e-seva Kendra provides agri-related services like access to market, price for agricultural products, availability of cold storage facilities, availability of labor and work opportunities  AGMARKNET  Internet based information system aims at providing “single window” service catering to diversified demands of information  Agricultural and Processed Food Products Export Development Authority  Autonomous organization to the Ministry of Commerce, Government of India  Indian Tobacco Company’s e-choupal (ITC’s e-choupal)
  • 9. Recent trends  Mahindra Shublabh Services Limited (MSSL), that runs centre as Mahindra Krishi Vihar (MKV)  Hadaspar vegetable market in Pune city is a model for direct marketing of vegetables, there are no commission agents and middle man the purchaser makes payment direct to the farmer.  Commodity Future Trading came into existence in 2003 trading for 54 agricultural commodities  DCM shiram consolidated Haryali Kisan Bazaars  The Godrej group runs a chain of Agri-stores named Adhaar in Maharashtra and Gujarat